O. R. TAMBO DISTRICT MUNICIPALITY DISTRICT GROWTH AND DEVELOPMENT STRATEGY

Transcription

1 O. R. TAMBO DISTRICT MUNICIPALITY DISTRICT GROWTH AND DEVELOPMENT STRATEGY FEBRUARY

2 POSITION PAPER ON AGRICULTURAL SECTOR DISTRICT GROWTH AND DEVELOPMENT SUMMIT DRAFT POSITION PAPER ON AGRICULTURAL DEVELOPMENT 1. Introduction The State President, His Excellency Thabo Mbeki has often described the South African economy as that of two economies, the first economy and the second economy. This is not regarded as n acceptable situation, and therefore efforts are always made to change the situation. One significant effort to address the challenge was the National Job Summit that was held in One important outcome of that summit was that the provincial governments should hold their own summits, which the Eastern Cape has had. Subsequently, the Districts and the Metros must hold their summits. This discussion paper is meant to contribute in the Growth and Development Summit of the O. R. Tambo Municipal District, specifically on the Agricultural Development. This input is aimed at stimulating debate and engaging all stake holders in a dialogue around Sustainable Agricultural Development in the O. R. Tambo region, in a manner that is compatible with the World Summit on Sustainable Development and Poverty Eradication strategies in the country. The discussion also seeks to rally the summit participants to prioritize Agricultural Development as guided by the Provincial Growth and Development Strategy. Such discussions will adopt strategies for relevant strategies for Agricultural Development with budget proposals for specific programmes. It is also expected that such programmes will be specific, measurable, and achievable and have time frames. Objectives of the District Growth and Development Strategy are known, and are therefore not a subject matter of this discussion. This discussion assumes that Agricultural Development is a priority, as determined by the Provincial Growth and Development Strategy. It is viewed both as central to, as well as integral part of Rural Community Development in the O. R. Tambo region. 2

3 Since Agricultural Development is the foundation and basis for development of rural communities such as the ones of O. R. Tambo, this discussion paper is likely to share commonalities with that of Community Development. 2. Overview of the Agricultural Sector in O. R. Tambo The O. R. Tambo Municipal District is forms the greater part of what used to be the Transkei in the Eastern Cape. It is predominantly rural, a characteristic that justifies the assumption that the livelihood of the people of the region depends on agriculture. Information from research as well as experience, has confirmed that the area has a huge potential for agricultural production, to an extent that is believed would be able to sustain its inhabitants. Therefore any thought of development in the area has to link with Agricultural Development. Because of the available natural resources the potential for agricultural development in the region lies on the following areas: 2.1. Crop Production (grain and vegetables) This production in the region has the following advantages: Good fertile soils favourable climatic conditions Some land availability to every household Suitable terrain on river valleys providing irrigable land Abundant water resource along rivers for for irrigation Huge local market and local consumption In grain production the District Municipality initiated a program to revive agricultural activity, which is called Primary Agriculture Resuscitation Programme (PARP). Ntinga O. R. Tambo Development Agency implemented such program in the following manner: 3

4 2.1.1 GRAIN PRODUCTION PROJECTS PROJECT LOCATION BUDGET IMPACT STRATEGIC NAME ( ) PARTNERS Maize Projects Mbizana, R50m Increased Anglo Qawukeni, Production and Platinum, Nyandeni, reduced Eskom Mhlontlo, poverty Sorghum Nyandeni, R600,000. Market Ntabankulu identified MASSIVE FOOD PRODUCTION DEPARTMENT OF AGRICULTURE : O R TAMBO DISTRICT 2006/07 MUNICIPALITY LOCATION NO. OF BUDGET PROJECTS Qaukeni Flagstaff 1121 R Mbizana Mbizana 1220 R Ntabankulu Ntabankulu 1153 R Mhlontlo Qumbu & Tsolo 981 R Nyandeni Libode & Ngeleni 622 R KSD Mthatha & Mqanduli 1268 R Port St Johns Port St Johns 709 R GRAND TOTAL 7075 R

5 2.1.3 HUMAN RESOURCE According to the Department of Agriculture the human resource requirements for crop and vegetable production is as indicated in the table below: CATEGORY AVAILABLE REQUIRED SHORT FALL Extension per ward 38 Officers Agric Economists Agricultural Scientiss Agric. Engineers Livestock Production This agricultural activity has the following advantages: Large tracts of grazing land Suitable pasture species for stock grazing Large numbers of stock owned by rural communities Favourable climatic conditions (snow and floods not common) In efforts to take advantage of the above conditions Ntinga has some Livestock improving projects in the District 5

6 The following is a list of livestock development projects in the district:- Beef Project Actual Location Municipality Fencing Bulls Budget Hewu Mbizana Ndukudeni Qaukeni /Dumse Maqanyeni Qaukeni /Sigcwenza Kimbili Qaukeni Lundzwana Ntabankulu Nyandeni Nyandeni Kantolo Mbizana Hombe Qaukeni Actual Location Municipality Goat Project Bucks Does Budget Infrastructure Fencing Ward Infrastr ucture Ntsimbini Port St Johns Mangquzu Qaukeni Xopozo Qaukeni Ndwana Ntabankulu Isilindini Ntabankulu Sheep Project Actual Municipality Fencing Rams Budget Location Qunu KSD Ngqwarha KSD Ngcingane KSD Matshongwe KSD

7 Special Programme Programme Municipality Budget Heifer Exchange O. R. Tambo District Still to be transferred Branding O. R. Tambo District HUMAN RESOURCE CATEGORY AVAILABLE REQUIRED SHORT FALL Animal Health Technicians Vet Scientist Researchers Marketing officers Policy Analysts TABLE illustrates where the cattle projects are located according to wards LOCAL MUNICIPALITY MBIZANA NTABANKULU SITES HEWU LUNDZWANA MFUNDISWENI QAUKENI Nyandeni MSIKABA ( DUMSE- NDUKUDENI & MAQANYENI- SICWENZA ) MBADANGO KHIMBILI EMAMPONDOMISENI Sites were selected guided by the main principle of suitability for cattle farming based on data that was collected in

8 The livestock population at the identified high potential local municipality is as follows: Local municipality Cattle Goats MBIZANA NTABANKULU QAUKENI NYANDENI TOTAL SOURCE: VETERINARY SERVICES OR TAMBO LIVESTOCK FIGURES 2002/ High Value Crops Tea This has proved to be very successful in Majola (PSJ) and Magwa (Qawukeni) A number of Jobs are maintained and it can contribute in making Agriculture economic driver of the region Sugar Cane This was established in North Pondoland Sugar and shown to be successful, with indications of likelihood to boost the economy Cotton A trial is currently in progress in Qawukeni and is doing well Canola This is a crop that is to be used to produce bio-fuel, and the Eastern Cape Government has approved its production in the province. One of the trial was done at Mfundisweni and proved to be successful. The Provincial Department of Agriculture, jointly with a German investor plan to produce the crop and need 70,000 hectares of land. It has a high potential of improving agricultural economy. 8

9 The production of the above crops in the district has the following advantages: Suitable soils Favourable climatic conditions Available researched information Huge potential market outside the region All the abovementioned information presented indicate potential areas and opportunities for agricultural development in the O R Tambo District 3. The Sector Performance The performance of the Agriculture sector in the economic development of the region can be classified as very poor. While the agricultural sector is regarded as having high potential in the region, there has been a noticeable decline in its performance because of some of the following reasons: Declining Agricultural Activity History tells that agricultural activity as always been consistent and source of livelihood For some reasons people work no more on the land for crop production, nor breed livestock for livelihood Subsistence farming does not any more produce surplus that used to be marketed to traders 3.2. Predominantly Subsistence Agriculture Production is predominantly subsistence and there is no conscious intensified production for business. Livestock is mainly kept for own consumption, cultural and traditional reasons and social status 9

10 People do not usually place a market value on their crops and livestock 3.3. Perceptions about Agriculture Some tendency has developed to look at agricultural activities as of low social status Young and energetic people are reluctant to get involved in agricultural activities 3.4. Low Skills Base Relevant and effective skills for the sector are not sufficiently available in the District Learning institutions within the region do not cater for the known agricultural development in their training programmes 3.5. No optimum use of indigenous knowledge There has been abandonment of indigenous practices such as ilima, isiso, and battering Traditional practices of management of natural resources such as grazing lands and forests was abandoned Indigenous livestock breeds have been complexly replaced by European breeds Indigenous knowledge on livestock breeding has been abandoned over emphasizing science and technology Traditional knowledge of plant species and their characteristics is no more taken as relevant 3.6. No Relevant and Sufficient social Structures to drive the Sector Not enough and committed commodity groups No effective agricultural production cooperatives No organized entities to deal with highly needed mechanization 10

11 3.7. Research Information on effectively utilized Plethora of information is known about the agricultural potential of the region but is not used Several trials were conducted with success but no follow us is ever made 3.8. Insufficient Resource Mobilization Although the region is known nationally and provincially for its agricultural potential, resource allocation does not tally More resources are needed to beef up the infrastructural development On the area of human resource, not sufficient personnel take up profession in the Agricultural sector Insufficient allocation of budget leads shortage of fencing, irrigation schemes, farming machinery and implements 3.9. District is importer and consumer Despite all the facts above, the District remains a major importer of agricultural products Finally, despite all the above facts on agricultural potential, the sector has not become the economic driver of the District. The graphs below indicate that situation. 11

12 AVERAGE ANNUAL GROWTH RATE IN AGRICULTURE Agriculture 5.70% 6.0% 5.0% 3.6% 4.0% 3.0% 2.0% 1.3% 1.0% 0.0%

13 3.11. PROPOSED PROJECTS TO CHANGE THE SITUATION MZIMVUBU DEVELOPMENT ZONE 1. MZIMVUBU DEVELOPMENT ZONE Strategic Goals To unlock the dormant potential of the Mzimvubu Basin to create local economic development and employment opportunities Creating a new economic development zone. As an important counter balance to economic growth in other parts of the province, ie the Coega and East London IDZs. Spatial restructuring and expansion of Mthatha s urban capacity around industrialised value added processes Six strategic pillars: 1. agriculture 2. water storage and transfer 3. hydropower 4. tourism 5. forestry 6. urban renewal EASTERN CAPE PROVINCE (Extract from Mzimvubu) 13

14 1. MZIMVUBU DEVELOPMENT ZONE 1. Agriculture - Opportunity Immediate opportunities Range of crops: soya beans, sugar beet, cotton, nuts, maize, sorghum, essential oils, herbs and spices Irrigated cultivation: 40,000ha - annual income: R620-million Crop production (dry land): 346,000ha - annual income: R1.5-billion Livestock: 978,000 ha or 1-million mature livestock units - annual income: R1.2-billion Potential for 300,000 jobs by 2014 Potential for export-linked market contracts with northern hemisphere EASTERN CAPE PROVINCE (Extract from Mzimvubu) LAMBASI DAIRY AND COMMUNITY PRODUCTION CENTRE (CPC) project linked to the Lambasi CPC and considerable work of facilitation was done by implication this Lambasi CPC and Dairy qualify to be termed as Sustainable Anchor projects, which has potential to provide capacity building with relevant skills, job opportunities both for youth, women and men all inclusive of affected and infected people will also play a vital role in developing surrounding farmers to commercial farmers same project has potential to expand into an industry and be a resource for O R Tambo Massive Food Production The Lambasi CPC presently produces maize on 500 ha and has a milling plant for value adding. It also has poultry production project operating. All these elements make it have the potential to improve the economic development of the district. 14

15 4. Mandate of the Agricultural Sector The mandate of the Agricultural Development Sector can be looked at National, Provincial and District levels and is guided by the following pieces of legislation: GUIDING LEGISLATIONS Constitution of the Republic of South Africa of 1996 (Act No. 108 of 1996) chapter 7 Section 152 (1) Promotion of social and economic development Encourage involvement of communities and community organizations in matters that affect them in regard to local government governance. Promote a safe and healthy environment Local Government Municipal Systems Act, 2000 (Act No. 32 of 2000) enabling environment be created for the development of initiatives aimed at facilitating social and economic upliftment of local communities ensuring access to services that will improve the welfare of the communities White Paper on Reconstruction and Development 1994 Agriculture Development Act, Act 8 of 1999 Promote, support and facilitate agricultural development National Policy on Agriculture 1998 establish policies which will ensure that agriculture contributes to the national economic policy objective articulated in the RDP addressing economic growth, reducing income inequalities and eliminating poverty Communal Land Rights Act White Paper on Agriculture of

16 5. STRATEGIES TO ADDRESS ISSUES AND CHALLENGES ISSUE 1. : Agricultural Resource Planning and Communal Land Management Objectives Strategies Indicators Programme s /Projects Location Impleme ntation Time Provide irrigation agricultural infrastructur e for 4 projects To provide fencing of production land Procure equipment and establish steering committees Form steering committees 4 supplied in each L.M 5 projects fence per LM 4 Irrigation schemes 1500km fenced OR Tambo DM frame 4 in each LM by per LM 5 complete d by 2009 Estimated budget R5M R53m Responsible role player DoA ORTDM Anglo- Platinum Role to play Funding Coordination Funding To provide access roads to agricultural Projects Establish Steering committees Accessible projects Roads construction In existing projects in 7 LMs 2009 R30m ORTDM Public works Coordination Funding 16

17 ISSUE 2 Farmer support services Objectives Strategies Indicators Program mes /Projects To provide extension and training to farmers with special emphasis to emerging farmers To encourage theinvolvement of the youth in agriculture To encourage involvement of women and disabled in agric. Farmer s technical support and training facilitation are in place Capacity building of youth through training in Agricultural Colleges Strengthening of women and disabled organization in agric. No of farmers trained and operating One youth cooperative per Local Municipality One coop per LM Farmer support and development Capacity building Women and disabled in agric and rural dev. Locatio n OR Tambo DM All Local Municipalities Imple menta tion Time frame 2007/ /0 9 All LMs 2007/ 10 Estimate d budget R3m R2m R5m Responsible role player Agricultural Regional office in conjunction with the OR Tambo DM. Ntinga, DM, Msobomvu Youth Com. SEDA, Ntinga, ECDC, DEAT,DoA,DM DoE, IGR, Local Govt Role to play Facilitate implementati on Facilitation, monitoring and evaluation Funding Facilitation, Implementat ion, monitoring and evaluation 17

18 ISSUE 3: Increase economic activity from Agriculture Objectives Strategies Indicators Programmes /Projects Ensure increased level of economic activity and global competitiveness from the Agricultural Sector To resuscitate agricultural activities Promotion of commercial production Support programmes Establishment s of markets, commodity groups, cooperatives, production systems and marketing information to clients Increased agricultural production activity Agriculture Economics Crop Production And livestock projects Locati on OR Tamb o DM O R Tamb o District Implem entation Time frame 2007/ Estimated budget R2m Responsible role player Agricultural Regional office in conjunction with the OR Tambo DM. O R Tambo District Ntinga Role to play Facilitate implementa tion Funding Implementi ng Dept of Agric Technical support and funding 18

19 ISSUE 4: Predominantly subsistence agriculture Objectives Strategies Indicators Programmes /Projects To commercialize agricultural development To organize farmer s Mobilise rural communities to intensify production\ Introduce high value crops Co op development Improved agricultural economy Sustainable agric co ops movement SMMME development Co ops Location OR Tambo DM OR Tambo DM Implem entation Time frame /20 08 Estimat ed budget Responsibl e role player R5m OR Tambo DM. Ntinga Private sector DOA Ntinga and DOA. ORTAFA Role to play Funding Project plan and implementation Mentoring Technical and market advice Facilitate implementation Organize commodity groups 19

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