DECIDUOUS FRUIT: EMPLOYMENT OPPORTUNITIES JACQUES DU PREEZ PRODUCT MANAGER: POME- & STONE FRUIT

Transcription

1 DECIDUOUS FRUIT: EMPLOYMENT OPPORTUNITIES JACQUES DU PREEZ PRODUCT MANAGER: POME- & STONE FRUIT

2 Total Area Planted ( hectares) Peaches 11% Plums 6% Prunes <1% Apricots 5% Nectarines 3% Grapes* 31% Pears 15% Apples 29% Pome fruit (Apples & Pears) = hectares (44%) Stone fruit (Peaches, Nectarines, Apricots, Plums & Prunes = hectares (25%) Grapes (Dry and Table Grapes) = hectares (31%)

3 Agric sector in WC contributes 13% to total formal sector jobs and Horticulture dominates agric contribution

4 Industry Perspective 2010 figures t ha Processed 29% Dried 9% 70% of income Fresh 62% Value: ±R7.36 Bn p.a. Replacement Value: ±R13.5 Bn p.a.

5 On-farm employment (direct) Fruit Labourers* Dependents Apples 27, ,131 Grapes 37, ,499 Pears 14,315 57,259 Peaches 9,814 39,258 Plums 6,406 25,626 Apricots 3,871 15,482 Nectarines 2,629 10,517 TOTAL 101, ,772 * Permanent equivalent. Casual labour converted to permanent equivalent. 1.4 / ha

6 SA fruit export industry supply chain Farmer Orchards Packhouse Hauler SA Port Vessel Foreign Port Hauler Importer Retailer Consumer

7 Total area planted (ha) Employment (number of direct jobs) 76,500 Number of jobs directly linked to total plantings 101,000 76,000 75, ,000 75,000 99,000 74,500 98,000 74,000 73,500 97,000 73,000 96,000 72,500 72, ,000 Total hectares planted Industry employment

8 Industry perspectives 93 nr of person-years employment opportunities created for every R1 mil increase in the final demand Govt. priority Horticultural sector ranks top Research has shown that wages were and currently still are more than min wage

9 Economic multipliers: commodity & sector groupings Employment a Value added b Imports b Government revenue b All Agriculture Cereals Other crops Horticulture Livestock Agribusiness Non-Agriculture a Number of person-years employment created per R1.0 million final demand b Rand value per additional R1.0 of final demand

10 Constraints Profitability Yield Pack outs Input costs Price Efficiency Competition from Southern & Northern Hemisphere Weather Exchange rate Etc Etc

11 Constraints in addition to the usual suspects Land Reform and productivity of land Shortage of funding, support services to Land Reform projects and slow processes - Opportunity for effective partnerships between gvt., industry & other role players Uncertainty around land reform policy

12 Constraints Capital investment vs risk vs returns entry barrier Compared to competition we ve got poorer soils, less water (& QUALITY), more expensive water, weather challenges Climate Change potential threat & impact Support i.t.o research, maintenance of infrastructure and labourers doing their work (port strike 2010)

13 Constraints Contradictory, but we experience a shortage of labour at certain times of the season Also a problem with skilled labour and retaining them from year to year Probably close to most efficient use of labour Labour legislation e.g. ESTA/Land tenure security bill Why make it extremely difficult to employ and house labourers? We need laws, rules & regulations but not impossible But we are not doing too bad at all

14 Future prospects Over med term looking positive Increase production Increase demand in current markets Increased market access / new markets Development of local market Creating an enabling environment to stimulate growth of industry and demand for SA produce

15 Summary Country with unique challenges; Must manage change continuously to ensure competitiveness, sustainability and profitability; Effective partnerships between industry & government agencies; World class technology, R&D and technical knowledge and skills;

16 Summary Systems to support fruit movement and logistics; A wide spectrum of products, produced over a long period, with the best eating quality found anywhere in the world; Focussed industry structures tackling the key strategic imperatives Employ according to highest ethical standards

17 We do employ, supply infrastructure, services and housing to a significant amount of people if the environment is enabling, favourable and attracts investment we can employ more...

18 Thank you!