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 to food insecurity

• Urbanisation and declining agrarian activities have transformed the RSA economy into a wage economy.

• Most households = net consumers of purchased food, rather than producers thereof.

• Access to food = function of household cash income and thus cash deficit households are more likely to experience inadequate access to food

OBJECTIVES OF FETSA TLALA VS THOSE OF AGRI-PARKS

FETSA TLALA AGRI-PARKSIncrease 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 sector 7

FOCUS AREAS: FETSA TLALA AND AGRI-PARKS

FETSA TLALA AGRI-PARKSAlthough not exclusive, will be to cultivate maize, beans and potatoes as the staple commodities (this is under review to accommodate feed and fuel grains )

First four years in the current MTSF the focus will be on the stabilisation of production and productivity.

Commercialization will incrementally be included in the programme, parallel with the implementation of Strategic Integrated Project (SIP 11) to complete the agricultural value chain.

This will see more introduction of feed and fuel grains for market.

Focus primarily on the processing of agricultural productsFocus on establishing linkages between the parks and surrounding agricultural production landInclude the involvement, selection and training of smallholder producers as well as the placement, incubation and training of unemployed graduates and other agro-entrepreneursProvide 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 2015/16DISTRIBUTION 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 945SUGARCANE 0FRUIT 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 741SOYA BEANS 400 200 600SUNFLOWER 870 600 4 232 5 702FODDER 1 130 24 10 1 164COTTON 400 400GROUNDNUTS 2 000 2 000JUGO BEANS 98 98CHICORY 0BARLEY 1 200 1 200GRAPES 367 81 448SORGHUM 736 736WHEAT 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 Segomottsi Mompati); 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 184 014 130 106 28 412 5 170 20 326Northern 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 852unallocated 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 2015/16Markets for the produce to be linked with Agri-parks CASP projects have been overlaid on the map with Agri-parks

sitesDelivered 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

sitesFuture development is necessary around the delivered silos i.e.

utilization or uptakeAgri-parks sites identified in all provinces – 44 districts

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Thank you

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