Deal #5103

Location #1

Spatial accuracy level
Exact location
Location
Aussenkehr, Namibia

Latitude
-28.38089381675635
Longitude
17.41881048681637
Target country
Namibia
Comment on location
Aussenkehr, Karas Region, Southern Namibia.

Land area

Intended size (in ha)
300
Size under contract (leased or purchased area, in ha)
300
Size in operation (production, in ha)
115
Comment on land area
Irrigable area of approx. 300 ha but only 115 ha are being utilised for high value crop production. Another data sources states 700ha project.

Intention of investment

Intention of investment
Food crops
Comment on intention of investment
The current crop production consists of table grapes, dates, melons and butternut.

Nature of the deal

Comment on nature of the deal
State-owned farm with state involvement.

Negotiation status

Negotiation status
Concluded (Contract signed)

Implementation status

Implementation status
In operation (production)
Comment on implementation status
Plant and equipment investment is needed to increase the productive capacity and therefore the profitability of the business. This can be achieved by cultivating the currently unused 175 ha, and establishing value adding facilities such as a cold storage, and a sorting and handling facility that will be used for the perennial and newer crops. The business is currently fully operational and is merely seeking to expand.

Contract farming

Contract farming
Yes
On leased / purchased area
Yes
On leased / purchased area (in ha)
80
On leased / purchased farmers
20
Comment on contract farming
20 small scale farmers with 4 ha each. 14 small-scale grape farmers landed in trouble in 2011 for not honouring their AgriBank loans and for selling their grapes to another trader instead of the one agreed with the Ministry of Agriculture. The 2012 grape harvest of 10 ORIP plots was attached by a Windhoek High Court order in 2011 as security for a remaining loan of N$1.2 million the 14 farmers received from AgriBank in 2008. The High Court on 23 December 2011 then accepted an agreement between AgriBank and the 14 farmers. The farmers can retain 50 percent of the gross income from sales but must pay the other 50 percent to AgriBank to pay off their loans. In an out-of-court agreement, AgriBank additionally agreed to rebate the accounts of the 14 respondents by March. 2012.

Number of domestic jobs created

Jobs created (domestic)
Yes
Comment on jobs created (domestic)
Job cuts occurred in 2009.

Operating company

Comment on investment chain
Orange River Irrigation Business (ORIB) state owned farm and managed by a service provider, Cool Fresh Namibia, which is part of the worldwide Cool Fresh Group of Companies.

 

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Data source #1

Data source type
Government sources
File
Comment on data source
ORANGE RIVER IRRIGATION BUSINESS AUSSENKEHR (ORIB)

Data source #2

Data source type
Media report
File
Date
2012-03-09
Comment on data source
Namibia: Orange River Irrigation to Be More Water-Efficient.

Data source #3

Data source type
Media report
File
Date
2009-10-30
Comment on data source
The Namibian- Job cuts at Aussenkehr irrigation project

Data source #4

Data source type
Media report
File
Date
2012-03-05
Comment on data source
The sweet taste of success

Data source #5

Data source type
Media report
File
Date
2013-01-29
Comment on data source
The Namibian Sun- Aussenkehr grape farmers win eviction case

Detailed crop, animal and mineral information

Crops area
Fruit (unspecified), Grapes, Vegetables (unspecified)

Use of produce

Has domestic use
Yes
Has export
Yes

In country processing of produce

In country processing of produce
Yes

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Surface water (River, Lake)
Comment on source of water extraction
Orange River and Naute Dam

Overall comment

Overall comment
State owned farm. Plant and equipment investment is needed to increase the productive capacity and therefore the profitability of the business. This can be achieved by cultivating the currently unused 175 ha, and establishing value adding facilities such as a cold storage, and a sorting and handling facility that will be used for the perennial and newer crops. The business is currently fully operational and is merely seeking to expand.

July 1, 2016, 2:44 p.m.

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