ALIGNMENT BETWEEN AGRIPARKS AND DAFF

PROGRAMS

LAND AND MINERALS SELECT COMMITTEE

28 JULY 2015

LAYOUT

BACKGROUND

BACKGROUND ON AGRI-PARKS FOCUS

BACKGROUND ON FETSA TLALA

FETSA TLALA: INTEGRATED FOOD PRODUCTION INITIATIVE

PROGRESS TOWARDS THE ATTAINMENT OF 1 MILLION HECTARES

OBJECTIVES OF FETSA TLALA VS THOSE OF AGRI-PARKS

FETSA TLALA FOCUS AREAS AND AGRI-PARKS FOCUS

COMMON AREAS OF BENEFICIATION

DAFF’S ACTIVITIES AND LINKAGE TO THE AGRI-PARKS

FETSA TLALA SUPPORT AND LINKAGE TO AGRI-PARKS – SILOS FROM DAFF

LINKAGE - THREE DRDLR BASIC UNITS OF THE AGRI-PARKS

AGRI-PARKS VS CASP AND ILIMA/LETSEMA PROJECTS SITES

MAPS: LINKAGE OF AGRI-PARKS AND CASP ILIMA PROJECTS

CONCLUSION

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BACKGROUND

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In his State of the Nation Address during 2015, His Excellency, The President of the

Republic of South Africa announced: “Among key interventions this year, we will promote the establishment of Agri-

Parks …… in each of the 27 poorest district municipalities to transform rural

economies. An initial funding of R2 billion has been made available for the Agri-

Parks initiative

BACKGROUND ON AGRI-PARKS

• The Department of Rural Development and Land Reform

(DRDLR) in partnership with the Department of Agriculture,

Forestry and Fisheries (DAFF); has put plans in place for the

establishment of the Agri-Parks in the identified district

municipalities

• An Agripark has been defined as “A networked innovation

system of agro-production, processing, logistics, marketing

and training and extension located in district municipalities

• DAFF is responsible for the priority on Revitalisation of the

Agriculture and Agro-processing value chain

• Agri-Parks will make a meaningful contribution

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BACKGROUND ON FETSA TLALA

• The President launched Fetsa Tlala Initiative in the Northern

Cape during 2013

• The Initiative was approved by Cabinet in 2013, together with

National Policy on Food and Nutrition Security

• DAFF’s political heads have for their tenure in office prioritized

food security, contribution to the Gross Domestic Product

and job creation

• Through Fetsa Tlala Framework Government intends to support

subsistence and smallholder farmers to put one million hectares

under production by 2018/19 – Implementation through the 5

pillars supply food feed and fuel grains

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FETSA TLALA: INTEGRATED FOOD PRODUCTION INITIATIVE

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Current MTEF MTSF

Financial Year Year 0

2013/1014

Year 1

2014/15

Year 2

2015/16

Year 3

2016/17

Year 4

2017/18

Year 5

2018/19

targets (ha) 350 000 470 000 590 000 710 000 850 000 1000 000

PROGRAMME PILLARS

• 14.2 million individuals are vulnerable tofood insecurity

• Urbanisation and declining agrarianactivities have transformed the RSAeconomy into a wage economy.

• Most households = net consumers ofpurchased food, rather than producersthereof.

• Access to food = function of householdcash income and thus cash deficithouseholds are more likely to experienceinadequate access to food

OBJECTIVES OF FETSA TLALA VS THOSE OF AGRI-PARKS

FETSA TLALA AGRI-PARKS

Increase food production capacity of subsistence and

smallholder producers

To promote the skills of and support to smallholder

producers through the provision of a comprehensive

producer support package

Increase availability and access to locally produced

fresh food products

To bring underutilized land into production and

expand irrigated agriculture

Create opportunities for agricultural value chain

development at local level

To expose all the producer categories to the whole

value chain with a specific focus on smallholder

producers

Create opportunities for SMME development at local

level

Strengthen existing and create new partnerships

within government, private sector and civil society

Create job opportunities within the agricultural sector To ensure Rural Economic Transformation and

contribute to the creation of 1 million jobs

NB: Note the common elements between the two programmes and focus on increased production and

benefits to the smallholder sector7

FOCUS AREAS: FETSA TLALA AND AGRI-PARKS

FETSA TLALA AGRI-PARKS

Although not exclusive, will be to cultivatemaize, beans and potatoes as the staplecommodities (this is under review toaccommodate feed and fuel grains )

First four years in the current MTSF thefocus will be on the stabilisation of productionand productivity.

Commercialization will incrementally beincluded in the programme, parallel with theimplementation of Strategic IntegratedProject (SIP 11) to complete the agriculturalvalue chain.

This will see more introduction of feed andfuel grains for market.

Focus primarily on the processing of

agricultural products

Focus on establishing linkages between

the parks and surrounding agricultural

production land

Include the involvement, selection and

training of smallholder producers as well

as the placement, incubation and training

of unemployed graduates and other agro

-entrepreneurs

Provide networks of contacts between

producers, markets and processors but

equally provide the physical infrastructure

required for transforming industries

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COMMON AREAS OF BENEFICIATION

Improved production efficiencies for producers – production

levels enhanced with technologies used at various levels of the

value chain taking into consideration the land use capabilities and

suitability

Promote food security – local procurement and resultant cost

reduction

Local economic growth and sustenance of the locals – job

creation at local level

Improved local institutional partnerships – public and private

locals jointly supporting local development

Preservation of natural resources – community mobilisation

will heighten environmental awareness and skills on preservation

of natural resources.

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PROGRESS TOWARDS THE ATTAINMENT OF 1 MILLION

HECTARES

Province 2013/14 ha planned 2013/14 Actual 2014/15

planned

2014/15

Actual

1. Free state 2430 4986 5400 5519

1. Gauteng 2045 2850 2265 1940

1. Western Cape 447 837 640 1802

1. Eastern Cape 13415 6579 17000 17275

1. Limpopo 26691 51970 90 000 40396

1. North West 20014 27167 16703 13131

1. Northern Cape 1110 1198 1685 1020

1. Mpumalanga 27208 43969 35000 30955

1. Kwazulu-Natal 10952 14673 23260 16475

Total 104312 154229 191953 128513

Grand total 296265 282742

Progression on hectares is based on budgetary allocations (CASP) which do not increases at the same

rate as the expected land under production 10

FETSA TLALA TARGETS FOR 2015/16

DISTRIBUTION OF HECTARES PER COMMODITY

COMMODITY EC FS GP KZN LP MP NC NW WC TOTAL

VEGETABLES 870 150 100 3 348 1 000 10 538 929 6 945

SUGARCANE 0

FRUIT 11 20 815 28 100 974

MAIZE 40 500 5 001 2 600 14 280 26 673 9 200 1 092 6 348 105 694

BEANS 888 353 500 1 741

SOYA BEANS 400 200 600

SUNFLOWER 870 600 4 232 5 702

FODDER 1 130 24 10 1 164

COTTON 400 400

GROUNDNUTS 2 000 2 000

JUGO BEANS 98 98

CHICORY 0

BARLEY 1 200 1 200

GRAPES 367 81 448

SORGHUM 736 736

WHEAT 786 786

TOTAL 42 500 7 344 3 800 14 753 31 572 13 998 1 479 11 146 1 896 128 488

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OTHER DAFF’S ACTIVITIES AND LINKAGE TO THE AGRI-

PARKS

FETSA TLALA Integrated Food Production Initiative - increase

production especially in rural areas to address household food security

Approved Agriculture Policy Action Plan (APAP) – determines the

policy requirements and practical interventions to develop the rural

spaces and the sector, within the context of ‘employment-driven and

equitable economic growth

Medium Term Strategic Framework (MTSF) – emphasis on improved

and sustainable agrarian reform and food security

DAFF study on the Integrated Government Procurement Model -

an illustration of how the process within the three units as described by

DRDLR can be realised

DAFF’s partnership with the World Food Programme (WFP) -

rigorous engagement with the smallholder sector and partners

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FETSA TLALA SUPPORT AND LINKAGE TO AGRI-PARKS –

SILOS FROM DAFF

• During the 2012/2013, many subsistence and smallholder

producers who planted between 1.5 and 2 hectares and

harvested between 3 and 5 tons of maize experience a critical

storage problem (EC).

• A storage facilities idea was conceived by DAFF.

• This intervention is therefore a pilot tested in 3 provinces, i.e.

Limpopo, Kwazulu Natal and Eastern Cape.

• A total of 240 tanks will be installed, distributed as follows:

KwaZulu Natal 120 tanks

Limpopo 60 tanks

Eastern Cape 60 tanks

• Coordinates on these sites will be overlaid on the map on slide 19

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SILOS SPECIFICATIONS

• Has life span of at least 20 years (8 year guarantee), after which

the tank may be painted on the outside

• The lid on top is water and air tight. Pests and insects kept away.

• The tank is UV resistant – maize not affected by sun’s rays

• The opening is stainless steel, does not rust

• Bucket to facilitate loading is pulley operated

• Intention to expand distribution of 10tons silos for smallholder

support to:

• NW; FS and MP

• Conduct a study on the usage of the current silos – report to

inform current and future expansion

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LINKAGE - THREE DRDLR BASIC UNITS OF THE AGRI-PARKS

The DRDLR has identified three basic units that will comprise the Agri-parks:

One of the units is the Farmer Production Support Unit (FPSU). The FPSU is a

rural outreach unit connected with the Agri-hub and does primary collection, some

storage, some processing for local markets and extension services. This is the unit

that will contain some of the anchor support services as stated in the introductory

section 1 above and training and skills development would reside within this unit –

DAFF’s role – existing provincial structures

The second Agri-parks unit is the Agri-Hub (AH) which serves as a production,

equipment hire, processing, packaging and logistics – current mechanisation

capacity, existing infrastructure

The third unit is the Rural Urban Market Centre (RUMC) which will ensure

contracting with either local, regional, national and international markets. The RUMC

will serve as a holding facility whereby produce will be released to markets based on

seasonal trends -

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IDENTIFIED AGRI-PARKS SITES

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Province Agri-parks sites

EC Ncora (Chris Hani); Mtata (OR Tambo); Matatiele (Afred Nzo); Lady Grey/Sterkspruit (Joe Gqabi); Butterworth (Amatole); Cacadu (Sundays River Valley)

FS Springfontein (Xhariep); Tshame/Phuthaditshaba (Thabo Mofutsanyane); Thabanchu (Mangaung); Wesselsbron(Lejweleputswa)

GP Randfontein – Brandvlei (West Rand)

Limpopo Tzaneen (Mopani); Groblersdal (Sekhukhune); Modimolle(Waterberg)Agananang (Capricorn); Nwanedi (Vhembe)

IDENTIFIED AGRI-PARKS SITES

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Province Agri-parks sites

KZN Kwa Dukuza (Ilembe); Umgeni LM area (Umgungundlovu); Horseshoe Farm – Izingqoleni area (Ugu); Dundee (Umzinyathi); Vryheid (Zululand); Dannhauser (Amajuba); Ebutha farm (state land); Umzimkhulu (Harry Gwala); Eshowe (Uthungulu); Okhahlamba LM Area (Uthukela); Mkhuze (Umkhanyakude); Kwa Duluza (Ilembe)

MP Bushbuckridge (Ehlanzeni); Gert Sibande (Mkhondo); Nkangala (Dr JS Moroka – Kameel Poort A)

NC Kuruman (John Taolo Gaetsewe); Warrenton (Frances Baard); Springbok (Namakwa); Petrusville (Pixley Ka Seme)

NW Springbokpan (Ngaka Modiri Molema); Vryburg (Ruth SegomottsiMompati); Makapanstad (Bojanala); Dr Kenneth Kaunda (Klerksdorp)

PROVINCIAL ALLOCATION – 2016/17

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Province 2016/17

R'000

PROJECTS/ INFRASTRUCTU

RE R'000

ERP R'000

COLLEGES R'000

DISASTER R'000

Eastern Cape 268 611 174 678 80 264 13 669

Free State 179 444 147 496 26 281 5 667

Gauteng 89 132 73 150 15 982 0

KwaZulu-Natal 230 344 172 274 46 880 11 190

Limpopo 268 169 157 980 77 423 17 211 15 555

Mpumalanga 184 014130 106 28 412 5 170 20 326

Northern Cape 134 729 105 607 29 122 0

North West 177 970 136 882 27 702 13 386

Western Cape 169 411 100 942 23 084 4 533 40 852

unallocated

Total 1 701 824 1 199 115 355 150 70 826 76 733

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CONCLUSION

Fetsa Tlala targets 128 488 hectares during 2015/16

Markets for the produce to be linked with Agri-parks

CASP projects have been overlaid on the map with Agri-

parks sites

Delivered silos are being overlaid on the map with Agri-

parks and CASP projects

Further distribution of silos to NW, FS and MP to target Agri-

parks sites

Future development is necessary around the delivered silos

i.e. utilization or uptake

Agri-parks sites identified in all provinces – 44 districts

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Thank you

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