1. AGRICULTURE : Organic cotton farming
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Opportunity
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This project involves the production of organic cotton in the area.
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Nature of the Project
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The process for producing organic cotton consists of:
- Certification through a third party
- Transition period – waiting for soil to adjust to organic system
- Plant a cover crop to prepare land and improve soil fertility
- Plant organically grown seed
- Rotate crop with tomato/legumes/ pumpkin/red peppers
- Diversify crop and cultivate cotton, pumpkin and tomatoes simultaneously
- Cost effective and water efficient drip irrigation
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Rationale for this venture
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Consumers are becoming more aware of a “green” lifestyle. Some stores are committed to promote the use of local organic cotton for the production of their clothing. Organic food in SA has grown from R5 million before 2003 to R155 million in 2005. Manufacturer demand for organic fibre increased from 5,720 metric tons in 2000 to 32,326 metric tons in 2005 (annual average growth rate of 93%). The estimated demand for organic cotton fibre in 2008 was 99,662 metric tons.
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Attractiveness Assessment
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- Climate:
Lepelle-Nkumpi LM has a very advantageous climate and land for the development of high-value organic products.
- Trends:
A significant increase in customer awareness of and demand for organic cotton is evident. Market trends show that customers seek organic and sustainable lifestyles.
- Competitors:
Currently, only one producer of organic cotton exists in SA.
- Target market:
The sophisticated, health-conscious end of the South-African market as well as the European and American export markets are seen as the target market, including Woolworths (organic clothing & food) and Pick & Pay and Checkers (organic food).
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Key Competitive Advantage
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- Lepelle-Nkumpi LM has suitable weather conditions for organic cotton.
- Potential to reduce the emissions of agricultural greenhouse gases (carbon dioxide, nitrous oxide and methane) and their annual external costs.
- Significant potential to counter climate change through the development of the soil as a major carbon sink.
- Eco-tourism potential.
- Less air contamination because pesticide sprays are not used and ammonia volatisation is reduced because of the non-use of nitrous fertilisers
- Less water pollution caused by nitrates in groundwater and pesticide contamination
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Potential Economic Impact
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The production of organic cotton increase employment opportunities and promote entrepreneurship on local level. The proposed venture could also:
- Generate income
- Develop skills
- Increase productivity
- Diversify agricultural production
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Linkages
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The following products could emerge from the proposed venture:
- Personal care items e.g. cotton wool
- Home furnishings e.g. linen
- Children’s products e.g. nappies
- Clothes
- Stationery and note cards
- Animal feed (cotton seed)
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