Ultra-Modern Fresh Produce Market for Western Cape

A brand new multi-million rand fresh produce market is to be built at Philippi East on the Cape Flats as part of the City of Cape Town's strategy to stimulate much needed economic growth in the area.

The Philippi Fruit and Vegetable Market will be funded by the City of Cape Town and the Western Cape Provincial Government at a total cost of R21,5 million.

The private sector, including several BEE companies, will collectively invest more than R8 million in packing, processing, cold storage and ripening equipment.

"Philippi Market is the City's first major commercial investment in the Greater Philippi area and one of the largest public private partnership projects in the Western Cape," says Alderman Clifford Sitonga, Mayoral Committee Member for Economic & Social Development and Tourism.

Identified long ago as a key development node in the Metropolitan Spatial Development Framework, Philippi is strategically located in terms of air, road and rail links. It also has a ready supply of local labour.

The Market itself will be located on a six hectare site on the corner of Market Street and Stock Road, across the new Joe Gqabi Station Transport Interchange, close to the N2 and R300.

"Cape Town's rapid population growth has led to increasing consumer demand for fresh produce and the Philippi Market will fill a special niche in the market place ," says Alderman Sitonga, who played a key role in the negotiations between the City and the private sector partners.

The Market will be managed by the Philippi Market Operating Company, consisting of MBB Consulting Engineers (Project Co-ordinators), the Muslim Judicial Council, Forktech Logistics, Baccarat Corporation Export Agents, Emthonjeni Caterers, Tamarron Trading, Torre Maintenance Group and Kuyabanda Refrigeration.

"Although small (4 000 m² floor area) in comparison to the national markets, Philippi Market will be designed and built according to international food safety standards. This will enable it to be much more than just a fresh produce market. It will in fact boast some of the most modern on-site processing facilities, thus creating a unique value-adding food production chain," says Mr Thys de Wet of MBB.

The Market will consist of a main sales hall for wholesalers and brokers, as well as rooms for some 20 retailers and 40 mobile traders. A central packhouse, banana ripening centre, dairy outlet, large processing facilities, composting plant, seedling nursery, transport system and BEE enterprises such as wholesalers, retailers and hawkers will be established on the market site. The banana ripening facility will be the first in Africa to be organically certified.

"Plans are under way to link Philippi Market with other district markets in George, Port Elizabeth, East London, Umtata, Port Shepstone and even Maputo, in order to secure year-round supply of fresh produce such as bananas, potatoes, onions, fresh fruit, herbs and other essential agricultural produce," says Mr de Wet.

According to Mr Cobus Dowry, Western Cape Minister of Agriculture, Philippi Market would create the "suction force" for the establishment of more than 2 500 emerging farmers and the development of more than 5 000 hectares of farm land over a five year period.

"It is estimated that the Philippi supply base will activate further Government funding for the emerging farmer sector in the Western Cape at a tempo of more than R50 million per annum for at least a five year period.

"The Market was designed to cater for the needs of this sector and contract farming will play an important role - from supplying the necessary seed, fertilisers and mentoring up to the final collection and marketing of the produce.

"My department is proud to be associated with the Philippi Market as we are settling and supporting more and more emerging farmers. This market will create the necessary platform and opportunity for them to market their produce and enter the mainstream activities of agriculture," says Mr Dowry.

"Commercial farmers, especially those wishing to incorporate empowerment in their production units, will be encouraged to send produce to the Philippi Market and to interact directly with the various value adding and trading groups at the market," More than 160 on-site permanent jobs are to be created by the middle of 2006, leading to a further 300 informal downstream opportunities.

However it is among emerging farmers, where significant job creation opportunities exist, says Mr Charl Pienaar of AgriExpert, project co-ordinator of the Philippi Market Supply Base project, a five year programme funded by the Western Cape Department of Agriculture.

"By 2011, we should see at least 2 500 rural families actively and sustainably involved in the production of mainly cash crops for the market. By then, the Market plans to have an annual throughput of more than 60 000 tonnes," says Mr Pienaar.

"The Muslim Judicial Council is proud and enthusiastic to be part of this initiative," says Ms Moulina Hendricks of the MJC. "Our training farm near the market, Orient, will play an active role in the areas of public participation, training and mentoring new and emerging farmers."

The market will be constructed during the next few months 2005, and is set to open its doors for business by December. A widespread public participation programme will be conducted beforehand to inform the public as well as identify potential business partners. Tender documents for the construction phase are currently available from the City of Cape Town.

Enquiries:

Francois van Niekerk: Project Manager
Tel:021 400 5052
Cell: 084 628 4181

David Gretton
Tel: (021) 710-8020
Cell: 084 444 4170

Xolani Mbunda: Strategic Adviser to Alderman Clifford Sitonga
Tel: 021 400 2342
Cell: 084 909 0928