The Eastern Cape Rural Development Agency (ECRDA) has set aside R11 million in the 2021/22 financial year which is aimed at transforming its four grain-producing Rural Enterprise Development (Red) Hubs into aggregation centres.
This was confirmed by chief executive officer for Eastern Cape Rural Development Agency (ECRDA), Nhlanganiso Dladla the Red Hubs located in Mqanduli, Ncora, Emalahleni and Mbizana would diversify their operations to include other crops such as potatoes, sweet potatoes, amadumbe and poultry to support the sale of eggs.
He said a total of R231,4 million had been spent on the development of the Red Hubs since their establishment in 2013 benefitting a total of 2 135 beneficiaries.
According to him the Red Hubs are made of 46 primary co-operatives who have a total of 2 135 members. The co-operatives are made up of individual landowners, who contribute their land parcels for the production of grain products. In turn, they sell their products to the milling plants at the Red Hubs which secure a market for their produce at market related prices.
They also receive mechanisation, planting, mentorship and market access support from various public and private sector partners at the hubs.
“The ECRDA expects said this transformation process into aggregation centres should be completed in the next three years.
“The Red Hubs are already assessing applications from co-operatives in the region who produce these alternative crops,” said Dladla.
He said, for example, the Mbizana Red Hub plans to re-engineer one of its sheds at its milling plant to install a potato washer and sorter in order to sell washed potatoes to the market, once producers of alternative crops are introduced into the hub. According to Dladla, the Red Hub also provides storage facilities for harvests.
“Currently, the Red Hub has a milling plant with a 1,1 tons per hour processing capacity in Mbizana. It is also in the process of buying a samp polisher.
“The hub was previously not selling samp. The processing capacity of the milling plant can be improved to 4,4 tons an hour when a samp polisher is introduced. In addition, the two silos at the hub have a 2,000 ton carrying capacity.”
Dladla confirmed that the Red Hub sells 10kg, 12,5kg and 25kg bags of mealie meal as well as 30kg bags of feed under a generic brand. The hub would soon launch its own brand called Isivuno. He said an off-take agreement is being concluded with Bargain Wholesalers in order to for them to buy products from the Red Hub.
