The Capricorn District Municipality in Limpopo Province of South Africa is looking for investors to establish a sorghum processing factory that will produce beer and livestock feed.
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).
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 requirement
The estimated total cost, which includes variable and capital cost, for processing sorghum is projected at R25 010 per hectare.