2. MANUFACTURING : Citrus juice extraction
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Opportunity
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An opportunity exists to extract citrus juice in the Lepelle-Nkumpi Local Municipality.
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Nature of the Project
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The project will focus on both concentrate and pure juice production, although the primary focus will be on orange juice because of its market and popularity in the surrounding communities.
The process comprises:
- The delivery of raw produce and washing
- Selection and channelling
- Peeling, pulp extraction and juice extraction
- Juice filling section, pulp extraction and juice extraction
- Packaging and labelling
- Cold storeroom for final products
- Delivery to retailers
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Rationale for this venture
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Approximately 40% of Limpopo consumes fruit juice with an estimated five drinks per person per month.
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Attractiveness Assessment
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The Target Market comprises of local communities, local businesses and markets in Gauteng.
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Key Competitive Advantage
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Currently in Lepelle-Nkumpi LM, agricultural production of citrus fruits exists on commercial and small-scale. Locally produced fruit from commercial and small-scale farmers are currently available to those who have limited access to the market. In Lepelle-Nkumpi LM, a large market for fruit juice exists with no local juice processors, which results in almost no competitors in the area. Zebediela is well established for good quality citrus production.
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Potential Economic Impact
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The proposed project will increase employment opportunities and promote entrepreneurship. The project will also improve skills, generate income and limit poverty.
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Investment Requirements
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The preliminary operational expenditure for citrus juice extraction amounts to approximately R17 million with an expected net profit of R360 000 per year.
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Linkages
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Various jobs will be created from spin-offs including businesses, utilities, transport, etc. Additional linkages also consist of:
- Growth of small-scale farmers and community projects in agricultural sectors.
- Development of small-scale and emerging farmers
- Value chain expansion
- Local value-adding
- Final product manufacturing
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