Cape Argus

Philippi Horticultu­ral Area’s billion rand investment in Cape economy

- Joseph Booysen

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.

 ?? PICTURE: MICHAEL WALKER/ AFRICAN NEWS AGENCY (ANA) ARCHIVES ?? SUPPORTIVE: Economic Opportunit­ies MEC Alan Winde.
PICTURE: MICHAEL WALKER/ AFRICAN NEWS AGENCY (ANA) ARCHIVES SUPPORTIVE: Economic Opportunit­ies MEC Alan Winde.

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