Progress on Implementation of the Agrarian Transformation Presentation

  • Slides: 30
Download presentation
Progress on Implementation of the Agrarian Transformation Presentation. Strategy to: MINMEC February Date: 24

Progress on Implementation of the Agrarian Transformation Presentation. Strategy to: MINMEC February Date: 24 April 2015 2016 Venue: Kempton park

CONTENT • • • Policy context Policy alignment Vision & Mission Strategy recap (Brief

CONTENT • • • Policy context Policy alignment Vision & Mission Strategy recap (Brief overview) Strategy Roll out KZN Value chain examples Process of Development District focus for Value Chain Enhancement Summary of investment in Districts Effects of the drought Achievements on the ground Challenges experienced in 2015/16 with suggested reviews to Strategy • Reprioritisation for drought

Policy Context • The Agrarian Transformation Strategy is informed by the following government polices

Policy Context • The Agrarian Transformation Strategy is informed by the following government polices and mandates: • 5 Key National Priorities • NDP; • NGP; • PGDP; • MTSF; • APAP; • KZN Poverty Master Plan; • SONA & SOPA & CABINET DECISIONS & • 9 Point Plan.

NDP/PGDP • Create 1 million jobs by 2030. • Expand irrigation schemes • Convert

NDP/PGDP • Create 1 million jobs by 2030. • Expand irrigation schemes • Convert under-utilised land in communal areas and land reform projects into commercial production • Pick and support commercial agricultural sectors that have the highest potential for growth and employment • Develop value chain strategies that give new entrant farmers to product value chain. • Support job creation in the upstream and down stream industries. • Ensure food security POLICY ALIGNMENT NGP § 145, 000 new jobs in agroprocessing by 2020 § 300 000 new smallholders MTSF • Improved and sustainable agrarian and land reform; • Smallholder farmer development and support (technical, financial and infrastructure); • Reduced rural unemployment; • Increased access to quality basic infrastructure and services, particularly education, healthcare and public transport; • Creation of sustainable rural enterprises, supported by increased investment in agro-processing, trade development, access to markets and financial services; • Improved integration and coordination of rural development across all spheres of government. 4

9 Point Plan In 2015 State of the Nation address, the President Mr J

9 Point Plan In 2015 State of the Nation address, the President Mr J G Zuma pronounced a “ 9 Point Plan’ to grow the economy: 1 2 3 4 5 6 • Resolving the energy challenge. • Revitalising agriculture and the agro-processing value chain. • Advancing beneficiation or adding value to our mineral wealth. • More effective implementation of a higher impact Industrial Policy Action Plan. • Encouraging private sector investment. • Moderating workplace conflict. 7 • Unlocking the potential of small, medium and micro enterprises (SMMEs), cooperatives, township and rural enterprises. 8 • State reform and boosting the role of state owned companies, information and communications technology (ICT) infrastructure or broadband roll-out, water, sanitation and transport infrastructure as well as 9 • Operation Phakisa aimed growing the ocean economy and other sectors

Poverty Eradication Master Plan: 5 Pillars and 29 Game Changers Working Together For A

Poverty Eradication Master Plan: 5 Pillars and 29 Game Changers Working Together For A Secure and Prosperous Future. 6

Vision and Mission Vision: A united, sustainable and vibrant agricultural sector with thriving rural

Vision and Mission Vision: A united, sustainable and vibrant agricultural sector with thriving rural communities in balance with nature. Mission: To promote, through partnerships, sound agricultural practices that promote economic growth, food security and advancement of rural communities.

AGRARIAN TRANSFORMATION STRATEGY q The Strategy sets out agrarian reform which will result in

AGRARIAN TRANSFORMATION STRATEGY q The Strategy sets out agrarian reform which will result in commercialisation of agriculture in KZN by implementation of a various programmes (Pillars); namely: § Land Reform Support Pillar, § Agri-village Pillar, § River Valley Pillar and § Communal Estates Pillar. q These pillars are supported by four building blocks: § Agro-processing § Business Model § Commodity approach, § Scientific Research, Technical Development, Training and Extension TOGETHER WE HAVE MADE KZN A BETTER PROVINCE TO LIVE IN

STRATEGY BRIEF RECAP

STRATEGY BRIEF RECAP

Roll Out of the Strategy rollout to Traditional Leaders Shared the strategy with Land

Roll Out of the Strategy rollout to Traditional Leaders Shared the strategy with Land reform beneficiaries Prioritised Projects for implementation Strategy Roll out Presented the Strategy and roll out to the Provincial Legislator Road show to Districts and their leaders Interaction with commodity organizations to obtain support Empowered DARD Extension staff

Value Chain Focus INPUT PRODUCTION TRANSPORT HARVEST Primary STORAGE PROCESSING Development RETAIL Secondary

Value Chain Focus INPUT PRODUCTION TRANSPORT HARVEST Primary STORAGE PROCESSING Development RETAIL Secondary

Sugar cane Value Chain Focus Suppliers Sugar cane Mechanisation & Inputs Production Harvesting Milling

Sugar cane Value Chain Focus Suppliers Sugar cane Mechanisation & Inputs Production Harvesting Milling Bio fuels Sugar Manufacturing of other products Co-generation of Electricity Wholesalers Retailers Exporters 12

Maize Value Chain Focus Grains Maize Suppliers Mechanisation Inputs Production Harvest Storage (Silos) Manufacturing

Maize Value Chain Focus Grains Maize Suppliers Mechanisation Inputs Production Harvest Storage (Silos) Manufacturing Animal feeds Sell as grain from field Milling Wholesalers & Retailers Storage Pack house & Distribution 13

Poultry Value Chain Focus Poultry (Broiler) Infrastructure development for hatcheries, grower houses & abattoirs

Poultry Value Chain Focus Poultry (Broiler) Infrastructure development for hatcheries, grower houses & abattoirs Suppliers Livestock Inputs (medicine & & feeds) Sale of Day old chicks to broiler producers Provision of of day old chicks Sell live birds Production of broilers Slaughter at Abattoirs Processing (Specialised cuts. ) Manufacturing (Polonie) Wholesale/Retail Outlet 14

Beef Value Chain Focus Beef Infrastructure development for grazing camps Suppliers Livestock Inputs (medicine

Beef Value Chain Focus Beef Infrastructure development for grazing camps Suppliers Livestock Inputs (medicine & feeds) Feedlots Production Sale of livestock Slaughter at Abattoirs Processing (Salt, Smoking etc. ) Manufacturing (Canning) Wholesale/Retail Outlet Districts Uthukela Umkhanyakude 15

Process for development Identification of Resource potential Commodity alignment with resource potential Social Facilitation

Process for development Identification of Resource potential Commodity alignment with resource potential Social Facilitation Develop upstream and down stream gaps Partner with commodities to fill the gaps, Training & Marketing selection of land farmers Development of the farms Identification of gaps in the value chain

Amajuba Value chain enhancement with Agri. Parks drive 1 3 2 1. Maize /

Amajuba Value chain enhancement with Agri. Parks drive 1 3 2 1. Maize / Soya 2. Groundnut 3. Livestock (Dairy, Poultry, Piggeries, & Beef) 1 1

Effects of the drought on implementation • Late rains made it impossible to do

Effects of the drought on implementation • Late rains made it impossible to do soil preparations for maize production in most districts • Consideration was given to changing the commodity from maize to dry beans • Some communal estates decided to plant maize in dry soil and others planted late • Both these actions could lead to below optimal yields that could lead to shortfalls in income to support next years planting season

Progress with implementation §Communal Estate (CE) establishment – Primary Agriculture § Mechanisation equipment was

Progress with implementation §Communal Estate (CE) establishment – Primary Agriculture § Mechanisation equipment was handed to established Cooperatives and was dependent on the size (hectares) of the CE, slope and soil condition. The ownership however remains with the department for a minimum period of three (3) years. § Funding agreements were signed with the 113 cooperatives and funds transferred § 91 Communal Estates have received Tranche 1 payments.

PLANNED CE HECTARES PER DISTRICT 2015/16 Districts Amajuba Umkhanyakude Zululand No. of Communal Maize

PLANNED CE HECTARES PER DISTRICT 2015/16 Districts Amajuba Umkhanyakude Zululand No. of Communal Maize (HA) Estates 39 7 4 830 - Beans (HA) Soya Beans Groundnuts (HA) Chicory (HA) Vegetables (HA) TOTAL HA 350 50 - - 5230 800 450 - - 1250 - 10 909 28 8 006 2 903 - - Uthungulu 5 222 548 - - Umzinyathi 5 750 200 - - 1200 19 3 248 292 - 40 - 3580 5 800 - - - 26 1 448 - - - 3587 Ugu 5 70 505 - - - 575 Ilembe 5 125 75 - - - Uthukela Umgungundlovu Harry Gwala Ethekwini Total - 639 1500 144 19 449 6 362 0 50 0 - - 1 500 700 40 100 28 202

DISTRICT OFFICE PROGRESS TOWARDS PLANTING OF CROPS: Maize HECTARES PLANTED Ground Dry beans Soya

DISTRICT OFFICE PROGRESS TOWARDS PLANTING OF CROPS: Maize HECTARES PLANTED Ground Dry beans Soya nuts 115. 1 Ugu 40 u. Mkhanyakude 60 45 98 4415 534 33 16 5241 7379. 7 40 0 100 450 646 67 1418. 1 Ilembe u. Thungulu Amajuba u. Mzinyathi u. Thukela u. Mgungundlovu Zululand Harry Gwala e. Thekwini Total area planted 575 100 39. 6 139. 6 Chicory 6 21

TRACTOR TRANSFER TO CEs • The Hon Premier and MEC test driving one of

TRACTOR TRANSFER TO CEs • The Hon Premier and MEC test driving one of the tractors that was transferred to Impendle CEs • Land preparation took place in Impendle TOGETHER WE HAVE MADE KZN A BETTER PROVINCE TO LIVE IN

Progress with implementation §River Valley development – mainly primary agriculture § This model concentrates

Progress with implementation §River Valley development – mainly primary agriculture § This model concentrates on the development of the river basin where there is a potential for the development of irrigation schemes. § Socio-economic and environmental interrelationship of land water sources are central in the development of this model. § The department is currently implementing 35 River Valley Projects § Drought prevalence in the province has negatively affected the implementation of this pillar and farmers have struggled to secure water rights

Interventions • Beef • Promote commercialisation of livestock through the Communal Estate concept •

Interventions • Beef • Promote commercialisation of livestock through the Communal Estate concept • Promote correct grazing management principles • Introduce castration of non descriptive bulls • Improve genetic material through introduction of pure breed bulls • Develop earthen dams for livestock drinking • Promote auction sales at the 4 sale yards in the area • Promote the use of the 2 feedlots in the district to finish cattle before auctions • Promote good livestock health through primary animal health care.

Progress with implementation §Agro-processing & Value chain enhancement § Sugar mill feasibility on the

Progress with implementation §Agro-processing & Value chain enhancement § Sugar mill feasibility on the Makhathini § Maize § Seed production - Msunduzi § processing - Dabhazi / Maphophoma Mill § Livestock § Abattoirs at Nongoma, Mhlathuze & Msinga § Tannery at u. Mnambithi § Dairy development in Greater Kokstad, Ingwe & Newcastle § Wine industry – upgrading winery in Okhahlamba § Fruit & vegetable processing at Hillcrest

School Nutrition Programme § School nutrition programme presents a strategic market for local farmers

School Nutrition Programme § School nutrition programme presents a strategic market for local farmers § The agrarian reform strategy supports local farmers to produce fresh produce commodities required for the school nutrition programme § Distribution of fresh produce from farmers to school, is facilitated by agreements between the Department of Education and service providers. § Examples of arrangements currently at Ilembe and u. Thungulu, where the Do. E has entered into an agreement with a fresh produce market or development agency which source fresh produce from the farmers to supply schools

KWAZULU NATAL AGRICULTURAL SCHOOLS REVITALISATION GRANT PROGRAMME §Purpose § To revitalisation agricultural schools and

KWAZULU NATAL AGRICULTURAL SCHOOLS REVITALISATION GRANT PROGRAMME §Purpose § To revitalisation agricultural schools and colleges to improve their capacity to contribute to skills development, agricultural infrastructure and training in the province. § To create enabling environment for the youth in KZN to participate in the broader agricultural sector, as a career of choice and advancement of business skills in agriculture

Challenges with Implementation and suggestions for review Challenge Method of addressing Commercial Projects struggle

Challenges with Implementation and suggestions for review Challenge Method of addressing Commercial Projects struggle to get Development Funding Agreements to be established with DFI’s Non bankable Business plans Training of staff in the requirements of bankable business plans Incorrect technical information Involve the Agricultural Scientists in the planning of projects Lack of involvement of Commodity organisations Establish agreements with commodity groups and establish a work process with them Business model of projects non realistic Focus on what is required for the businesses to work rather than having elaborate structures

Drought Interventions The approved scheme had a phased approach, i. e. : • Phase

Drought Interventions The approved scheme had a phased approach, i. e. : • Phase 1: – Procurement of inputs for Livestock and water harvesting – R 60 Million (R 36 Million – CASP & Ilima Letsema and R 24 million DARD equitable share) • Phase 2: – Aggressive de-worming of livestock (Veterinary services) – R 9 Million (CASP & Ilima Letsema) • Phase 3: – Borehole drilling and dam scooping – R 45 Million (DARD equitable share) • Phase 4: – Joint Drought Intervention DRD&LR • Identification of state land for grazing. • Feedlotting • Phase 5 (R 28 million) – Other i. e. ; – Supply of Hay – Water harvesting equipment

Thank you

Thank you