Philippi Horticultural Area’s billion rand investment in Cape economy
SOME 86% of the Philippi Horticultural Area (PHA) is actively farmed, supporting 3 000 direct and 30 000 indirect jobs and contributing more than a billion in direct and indirect turnover towards the economy in the Western Cape.
This is according to an independent study commissioned by the Department of Agriculture into the importance of the PHA, confirming that the area is a significant employment generator and agricultural asset to the City of Cape Town and the Western Cape, especially in light of the drought.
The study, by Indego Consulting, investigated the social, economic and environmental significance of the area from an agricultural perspective. The area contributes R484 million in direct turnover and R938m in indirect turnover to the regional economy.
Karen Harrison from Indego Consulting said the firm established that the PHA remained a significant area for vegetable production and generally for agricultural production owing to its unique combination of climate, availability of water and soil.
Harrison said the PHA’s median temperature, compared to other vegetable producing areas in the province, was much lower during the hot summer months.
“This is what gives it a competitive edge. It is able to supply to the market when other producer areas are low in supply. We found the value extracted from the PHA is between R400 000 and R800 000 per hectare turnover per annum. This is because the PHA allows three to four crop cycles per annum.
“For every R1m spent in the vegetable industry, 4.65 direct jobs are created and 46.5 indirect jobs,” she said.
Economic Opportunities MEC Alan Winde said he supported the efforts to increase the level of protection and management of the PHA to enable a competitive and flourishing agricultural node.
“Our vision is for a horticultural area which supports thriving production activities, agri-tourism, extensive public works programmes, informal settlement upgrading and compatible business activities in neighbouring areas. It should also have strong linkages to the aerotropolis,” said Winde.
Based on the findings of the study, a proposed socio-economic plan for the area, which seeks to preserve its agricultural significance, was developed.
Proposals for the short-term focus include providing policy and planning certainty regarding the protection status of and land use within the area through all the legal and planning instruments available, enhanced agricultural production and competitiveness driven through agrarian reform and regional market linkages.
Proposals also include addressing the safety and security concerns of PHA farmers, farm workers and communities, proactive land-use, environmental management and regulation of the PHA core horticultural area and its “buffers”, and proactive management of the Cape Flats Aquifer.
The study found the importance of the area had increased owing to the drought. While vegetable production has declined by 20%over the past year in the Western Cape, production in the PHA had remained stable, demonstrating its value to food security.