2. MANUFACTURING : Processing of sorghum
|
|
Opportunity
|
The opportunity comprises sorghum processing into beer and livestock feed in the Capricorn DM.
|
|
Nature of the Project
|
This investment opportunity consists of two components:
- Production of sorghum
- Processing of sorghum.
|
|
Rationale for this venture
|
Sorghum is used for the manufacturing of industrial malt, commercial malt, meal, rice, grits and animal feed.
|
|
Attractiveness Assessment
|
Sorghum is used for the following distinct purposes:
- Human food
- Animal feed
- Sorghum beer.
The animal feed market comprises of sorghum processed for pet food, poultry and livestock. The food market comprises of sorghum processed for malt, meal and other food such as rice and grits (mostly for brew). Sorghum is mainly used for food and beverage consumption such as malt and sorghum meal. Malt is used for manufacturing sorghum beer (traditional African beer).
|
|
Key Competitive Advantage
|
The Capricorn DM has a suitable climate for the production of sorghum. Production of this crop is already taking place in the District, however a feasibility study will need to determine if the supply of sorghum will be sufficient to support the value-adding activities proposed as part of this project.
|
|
Potential Economic Impact
|
The labour intensiveness of sorghum farming leads to increased employment opportunities created in the local community. The project will create job opportunities, promote entrepreneurship and curb poverty through income generation and skills training of the labourers of the project. This in turn leads to the bettering of the lives of project owners, their households and those of the community at large.
|
|
Investment Requirements
|
List of potential national funders:
- Department of Labour
- DTI
- Ntsika
List of potential international funders:
- Danish/South African Business-To-Business Programme (DANIDA)
- UK Department of International Development
- German Technical Corporation (GTZ)
- South Africa’s Technology and Human Resources for Industry Programme (THRIP)
- European Investment Bank
- African Development Bank, etc.
|
|
Linkages
|
Possible products that could be developed through value addition:
- Malt
- Beer
- Beer powder
- Sorghum meal
- Sorghum rice
- Livestock feed
- Baby food
- Noodles
- Rotti
- Tortillas.
|