New honey co-ops to target organic markets

Beekeepers from Baardskeerdersbos in the Overberg and Riversdale in the southern Cape have joined forces to establish organic honey cooperatives in their respective towns.
Issue date : 13 June 2008

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Beekeepers from Baardskeerdersbos in the Overberg and Riversdale in the southern Cape have joined forces to establish organic honey cooperatives in their respective towns. The initiative is aimed at improving market access for these producers and the quality of their honey.

Andrew Weeks, a legal adviser contracted to represent the interests of these groups, commented that with the available natural resources, training and improved production techniques, local production could easily be doubled. South Africa consumes around 3 000t of honey a year. But only 1 700t to 2 000t of this is produced locally, while the rest is imported. In contrast, Ethiopia, the largest honey producer in Africa, produces between 40 000t and 45 000t, followed by Tanzania at under 30 000t and Kenya at 25 000t.

There’s also huge demand for premium and organic honey both locally and internationally. Europe, for example only produces 40% of its organic honey demand. “It would be very hard for us to compete with bulk producers such as China on price,” said Weeks. “We therefore have to position ourselves at the higher end of the market.

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”And to achieve sustainable access to these markets, producers have to pool their resources to ensure constant, efficient supply and economies of scale. This is one of the main reasons why the cooperative is such an appealing vehicle for growing and marketing honey. The coops will approach the Department of Trade and Industry for funding, while the local municipality and other groups have already pledged funding. The coops will be organically certified, as acquiring organic certification for groups is cheaper than for individuals.

They will provide cleaning and bottling services and audit members to ensure they employ organic production techniques. Around local 50 micro-businesses will be trained. rnold Prins, who was elected chairperson for the provisional board of the new cooperative in Riversdale, said he’s excited about the initiative and plans to leave his job as a prison warden by next year, if his honey business takes off. However, Prins expressed his disappointment with the low turnout of previously disadvantaged groups. “I think this is a great opportunity for previously disadvantaged people like me to make an additional income or to enter into a new profession. I hope that more people will join the project once they see how those of us who have become involved in it have succeeded,” he said. – Glenneis Erasmus

Over R2 million per hectare for Stellenbosch land

Stellenbosch farms are selling at record prices in spite of increased interest rates and fears of a slow-down in the property market. One farm traded at a record price of R137 million for only 131ha. 30ha farm was recently sold for R70 million and realtors claim that prices of R55 million to R65 million are common for smallish properties.

Willie Badenhorst of Re/max Oaktree estate agents said the wine district currently boasts the liveliest farming market in the country with the highest availability of farms. “This isn’t because farmers want to get rid of their farms, but because there’s such a high demand for land in the area and buyers are willing to pay extravagant prices,” Badenhorst said. He estimates about 90% of this land is sold to South Africans looking for investment opportunities, and land values in Stellenbosch increase rapidly.

However, the president of Nafu Western Cape, Willy Williams, voiced concern over the rapidly increasing farm prices. “People buying farms simply for lifestyle purposes are chasing farm prices up, making it increasingly difficult for new farmers to enter the agricultural sector,” he said. “The high cost of these farms also renders the farms less economical per production unit, due to the huge investment required to buy them.”

Another concern is that the farms will fall out of production. Badenhorst, however, said farms were being kept sustainable as this was part of their allure. “Investors go the extra mile to ensure that the land remains in production, either by starting to farm themselves or renting out the land,” he explained. “Many sellers also offer their farming services as part of the deal.” – Glenneis Erasmus