South Africa's biggest raspberry farm about to take shape

South Africa's State-owned investment vehicle, the Industrial Development Corporation (IDC) and the National Empowerment Fund (NEF) announced on June 12 that they would plough R34-million ($4.7 million) into starting up what will be South Africa’s biggest raspberry farm, which will be owned by KwaZulu-Natal’s Charlestown community. The farm would create 91 permanent and 704 annualised jobs, of which 60% would be for women.

The move was lauded by the IDC and NEF to be a “groundbreaking” project, as the farm would be built on a 60 hectare farm that was secured through land restitution, after the land had been taken away from the community in 1967. The newly-formed raspberry producer, Amajuba Berries, would initially be 39%-owned by the IDC, 51%-held by the NEF, and 10%-owned by the prosperity trust, which was a technical partner, IDC resources divisional executive Ufukilie Khumalo said.

The community, which had 1,100 beneficiaries, would eventually own 90% of the company. First harvest would occur in two to three years, with full production of about 720 tonnes per year being reached in 2016. This level of production was based on “conservative” estimates that each hectare would yield 12 t/y of raspberries, where most raspberry farms produced 10 t/y to 20 t/y for each hectare of orchard.

Currently there are 100 ha of raspberry farms in South Africa.

The IDC and NEF will participate on an equity basis, and after they had reached a capped level of return, the two firms would sell their combined 90% holding to the community-owned Charlestown Ranches. In the meantime both investment companies would have the right to sit on the board of Amajuba Berries, and the IDC would also provide business support to the company. Technical support would come from former Free State raspberry farmer Frans Fourie, who sold his farm, and would invest R3,8-million ($525,000 ) for a 10% holding of Amajuba Berries.

The R37-million ($5 million) investment would fund the orchard’s development, the construction of a packhouse, farming equipment, irrigation facilities, and a farm dam.

Amajuba would export 70% of its produce.

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