THE MIDDLE EAST REGION PRESENTS OPPORTUNITIES FOR AGRO-PROCESSING - MINISTER DAVIES

THE MIDDLE EAST REGION PRESENTS OPPORTUNITIES FOR AGRO-PROCESSING - MINISTER DAVIES The Department of Trade and Industry (the dti) has contributed R1, 2 billion in incentives to the Agri-food sector between 2009 – 2013 to support the industry.  This was said by the Minister of Trade and Industry, Dr Rob Davies. He was speaking at the 111th AVI Africa 2015 Annual Conference on poultry at Emperor’s Palace. The conference focuses on various poultry issues including trade matters, empowerment of black players and overall challenges faced by the industry. Over 130 companies had an opportunity to exhibit their wares, including poultry machinery, etc. According to Minister Davies, the food-processing sector is an important contributor to the manufacturing sector in a number of areas.  “In value added, the sector contributes 11% of total manufacturing while in employment terms, the sector contributes 15% of total manufacturing employment. Agro-processing has great significance for the South African government and the unity of the industry is important,” said Minister Davies. He highlighted agro-processing played a vital role in the industry and encouraged those interested to actively participate in this sector and advised them to contact the dti for help and advice. Minister Davies indicated that government had identified the Middle East as a potential market for exports of poultry and red meat. “The Middle East region, in particular Saudi and United Arab Emirates imports about 75% of their food requirements from elsewhere around the world. The two have the largest economies of scale in the region, and have a huge market compared to other countries in the region. Also, South Africa could supply 2250 tons worth $8.4 million of different poultry products to Saudi Arabia from next year,” said Minister Davies.  He encouraged local companies to be active participants in the Saudi Arabia poultry exhibition taking place late this year. Davies said the continued inflow of imports have to be balanced by steady and material high volume exports of value added products, in order to curb the displacing of local industries and exporting  jobs. “To curb this, government has strengthened investment and export promotion as a key strategy, by opening new markets such as in the Gulf countries which will triple the export influx and strengthen the farming industry. Furthermore, the designation of poultry for government procurement will enable the industry to increase the demand for local production,” he highlighted. According to Minister Davies, the expansion opportunities in the African market both within the region and further north, can allow farmers to further process their chicken into value added products and grow their own maize for feed manufacturing.  This strategy is in line with the Industrial Policy Action Plan (IPAP) and Agricultural Policy Action Plan (APAP) for Agri-parks including Halal parks.