4 ADVANTAGES OF AGRO PROCESSING AND EXPORT FROM COEGA

Agro processing in the Mediterranean climate of Port Elizabeth and surrounds offers many opportunities for investing. South Africa, particularly this region close to the Coega IDZ, enables a diverse agricultural economy with more than 20 ideal agro processing products and crops including:

• Citrus
• Deciduous fruits
• Dairy
• Vegetables
• Ostrich products
• Wool and mohair etc

Advantages of agro processing at Coega include:

• Readily available raw material including citrus, milk, deciduous fruit, ostrich meat and beef, all within 50 km proximity
• Site positioned to enhance integration of supply chain and is within a 3 to 5km proximity to the well-equipped container terminal makes the site suitable for exportation of food products.
• Overnight just-in-time delivery to SA’s major consumer centres - Johannesburg, Durban and Cape Town.
• Serviced and competitively priced land or turnkey solutions
• 15% - 30% reimbursement of qualifying capital investment (capped at R200 million) on a regressive scale over 2 years
• Food logistics companies located in the CCA may benefit from VAT & Duty Suspension

To find out more about agro processing opportunities at Coega, please contact Mr Keith Du Plessis on:

Telephone: +27 41 (403) 0681
Cell: 082 740 7654
Email: keith.duplessis@coega.co.za

AGRO PROCESSING OPPORTUNITIES

CITRUS PRODUCTION offers many agro processing opportunities, including:

• Canning and juicing
• Dried fruit
• Peel essential oils
• Pectin (use of dry citrus and apple peels to produce pectin used in food industry and animal feed)
• Frozen pulp cells
• Cattle feed pellets

Over 15 000 hectares of land is used for citrus production in the Eastern Cape, accounting for approximately 26% of South Africa’s citrus production. Given the estimated 6kg average local consumption per capita in South Africa (2006), the region’s citrus production is predominantly export oriented.

MILK PRODUCTION agro processing opportunities include:

• Processing of Ultra High Temperature (UHT) milk
• Milk powder and cheese
• Yoghurt, cream, butter and dairy drinks

The region has over 800 milk producers that account for 22% of South African milk production.

The region is also a big producer of FISH, LIVESTOCK, OSTRICH, WOOL and MOHAIR.

SUCCESSFUL AGRO PROCESSING PROJECTS AT COEGA

CAPE CONCENTRATES

Cape Concentrates’ factory at Coega is expected to produce 50000 ton of tomato paste per year from 330000 tons of fresh tomatoes grown in the regions of the Gamtoos River, Jeffreys Bay, the Sundays River valley, Somerset East, Fish River and coastal areas between Port Elizabeth and East London. Full production capacity is expected to be achieved within 3 years and the paste, to be packed into drums, will be sold locally and internationally. It is estimated that the project will create about 600 direct jobs, while indirect employment in farming and related activities will be excess of 2500 people.

CEREBOS

Cerebos is focused on the supply of quality salt to the food manufacturing sector. This long established business is a strong internationally known brand and market leader in the retail salt market in South Africa, with extended distribution into Southern Africa. The Cerebos facilities in the Coega IDZ have a capacity of 45000MTPY base on 7500 operating hours per annum.

DYNAMIC COMMODITIES

Dynamic Commodities, the home of Island Way Sorbet, operates from Coega is a major employer with a staff component of 600 direct jobs and 600 direct jobs and approximately 1000 indirect jobs via its suppliers. Through this, it has created valuable and mutually beneficial partnerships with the Department of Trade and Industry (DTI) and the Industrial Development Corporation (IDC)

PE COLD STORAGE

This company operates a pre-cooling and storage facility in the Coega IDZ for the local citrus and deciduous fruit industries.