Deal #4466

Location #1

Spatial accuracy level
Administrative region
Location
Umzimkulu, South Africa

Target country
South Africa
Comment on location
Umzimkhulu/Ixopo corridor using cooperative land

Land area

Intended size (in ha)
50000
Comment on land area
Pilot project, if successful expand to each province (totaling 1 million hectares)

Intention of investment

Intention of investment
Livestock
Comment on intention of investment
Intention changed from cattle to dairy farming

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2013] Intended (Under negotiation)
[2014] Failed (Negotiations failed)
Comment on negotiation status
Diary experts from Peng-Xin Group were sent to South Africa in 2014. They have decided to move the project to New Zealand, where they have established operations.

Contract farming

Contract farming
No

Number of domestic jobs created

Jobs created (domestic)
Yes
Comment on jobs created (domestic)
general workers, managers and technical expertise to come from surrounding communities

Operating company

 

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Data source #1

Data source type
Media report
File
Date
2014-09-03
Comment on data source
Farm Land Grab- China's engagement with African agriculture

Data source #2

Data source type
Media report
File
Date
2013-11-23
Comment on data source
Farm Land Grab- China will grow our food

Data source #3

Data source type
Company sources
File
Comment on data source
PengXin group website

Data source #4

Data source type
Media report
File
Date
2014-02-25
Comment on data source
Farmers Weekly- Chinese dairy in KZN ruffles feathers

Data source #5

Data source type
Personal information
Date
2015-01-19
Includes in-country-verified information
Yes

Data source #6

Data source type
Personal information
Date
2015-02-02
Includes in-country-verified information
Yes
Comment on data source
Field research February 2015

How did the community react?

Comment on community reaction
The local Milk Producer’s Organisation (MPO) fears this will increase domestic milk prices.

Former land owner (not by constitution)

Former land owner
Community

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Cropland
Marginal land

Detailed crop, animal and mineral information

Livestock area
Dairy Cattle

Use of produce

Has export
Yes
Export
100
Country 1
China

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Infant powdered milk processing

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Surface water (River)
Comment on source of water extraction
Umzimkulu River

Overall comment

Overall comment
Negotiations failed and operations have been moved to New Zealand.

Feb. 17, 2015, 11:29 a.m.

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Jan. 19, 2015, 12:14 p.m.

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Sept. 22, 2014, 5:35 p.m.

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