MINISTER'S STATEMENT AT THE AGRI-SECTOR UNITY FORUM (ASUF) POLICY CONFERENCE

Transcription

1 MINISTER'S STATEMENT AT THE AGRI-SECTOR UNITY FORUM (ASUF) POLICY CONFERENCE 27 February 2014 Good morning to you all. Allow me to start by thanking you for the opportunity to speak to you today at the opening of this important conference. I hope it is a sign of the positive relationship that has been built between government and the agricultural sector, including farmers, businesses and other role-players. It is always good to be amongst fellow compatriots from the primary production sector. I must however note that there seem to be very few women among the delegates, and I do hope ASUF will join my Ministry and the Department in promoting and supporting the participation of women at every level of the organisation. Those who attend our annual female farmer awards will know that this is no cosmetic exercise or window dressing that I am proposing women farmers are doing amazing things across the country, and they must be recognised. Having said that, let me in the strongest terms commend this Forum for recognising the expertise and contribution of its current chairperson, who happens to be a women. I trust this is indicative of a sector that knows what needs to happen and seeks to boldly embrace the new. I have to say that I was rather proud to be able to introduce your Chairperson to the Secretary General of the ruling party. I want to talk today about a few matters of mutual concern. These include the wider policy environment, matters of legislation and programmes, and on the future of the sector. In doing so I hope I will cover some of the topics you have identified in your programme and in the policy document, and also deal with the question you have posed: How will ASUF enhance food security in South Africa? We have come a long way since the formation of ASUF in 2012, and I can state without doubt that the organisation has greatly enhanced the visibility and profile of the agricultural sector. When I was handed the agriculture portfolio in 2009, I had messages of sympathy from some of my colleagues, who saw it as a nothing Ministry. In five years, agriculture has become central to the work of government, and the Ministry is now at the heart of everything we do to address the triple challenges of poverty, inequality and employment. We could not have done this without the support and engagement of the sector, and ASUF has been the vehicle

2 for this. Please accept my compliments on this organisational work which has been done. Policy certainty You have made a strong appeal, in this and other forums, for policy certainty. I understand and appreciate this call, since in the business world certainty and predictability are critical. The National Development Plan does take us towards a situation of greater certainty, since this has been endorsed by government as the blueprint for our future. The NDP proposes a differentiated rural development strategy, which has agriculture as an essential component. The NDP advocates agricultural development based on successful land reform, employment creation and strong environmental safeguards. To achieve this, it recommends that irrigated agriculture and dry land production be expanded, beginning with smallholder farmers. In addition agro-processing, aquaculture and small enterprise development opportunities should be explored in areas with economic potential. Within the overall framework of the NDP, this government is of course committed to pursue transformation imperatives, including land reform and rural development, most of which require policy and legislative changes. So I am not going to promise complete policy stability I cannot just accept the status quo. But what I can commit to, and what we have been doing for the past few years, is ensure that your voices are heard in the policy space, and that you have the opportunity to influence the outcomes. Ironically the process of dialogue that began as a local initiative in De Doorns, following the labour actions there, has escalated into a major national process, which has also gained the attention of other departments. The ruling party too has taken note of the dialogue, and the leadership has met with ASUF to deal with issues that have arisen. I know that not all matters are settled, but I do believe we can claim that relations between farmers and farmworkers have improved as a result, and are no characterised by the animosity we experienced during the strikes. I thank you for your role in this, and I will strongly encourage the Deputy President to continue with the dialogue. I should also remind you that the Secretary General invited ASUF to make detailed proposals for the revitalisation of the sector, and I hope you have been able to develop and submit these. APAP Part of the engagement has been around the future of the agricultural sector, and I am told that ASUF has ben an active player in the development of the Agricultural Policy Action Plan (the APAP). This is a comprehensive five year plan, which brings about a degree of certainty in regard to matters under our control. APAP takes as its point of departure the 2030 Vision Statement of the National Development Plan, and is also guided by the New Growth Path and IPAP documents. Following a long process of consultation, NEDLAC has agreed that the APAP should be taken to Cabinet as soon as possible, and I will be doing so during March. This will be our

3 consensus document for the next period, and I hope you have all taken account of what is intended. In the same way we have listened to you regarding the need for improved agricultural and rural infrastructure. Our Strategic Infrastructure Programme (SIP 11), led by the NAMC, has targeted the development and upgrading of numerous large scale facilities, including roads, fences, dams and irrigation schemes, all of which will make the sector more productive and economically viable. To date, R2.6 billion has been invested and jobs created. Completed projects include a soya processing plant, two abattoirs, 7 pack houses, km of fencing and 3 bridges. Ongoing work is being done on four irrigation schemes, on an animal vaccine laboratory, and the construction of fresh produce markets. The Infrastructure Bill, approved this week in the National Assembly, will ensure that these projects are not delayed by regulatory requirements or other obstacles. Food security Much of the focus on agriculture has come about through a renewed international focus on food security. Increased demand for food, coupled with climate change and extreme weather events, continues to challenge the food security status of many countries. South Africa is one of the few countries in Africa that are food secure, although we do still have major challenges in ensuring that every person, every household, has sufficient nutritious food at all times. I am therefore pleased to record that Cabinet approved last year the National Food and Nutrition Security Policy, which includes a Household Food and Nutrition Security Strategy, driven by the Department of Social development, as well as a Food Production Initiative which we are running under the banner of Fetsa Tlala. We aim to see 1 million hectares on under-utilised, communal land under production, driven by communities and supported by government. In terms of the Policy, the Office of the Deputy President will convene a National Food and Nutrition Security Advisory Council (FANSAC), which will ensure all interested parties get to contribute. I may mention that at the recent AU Summit, convened under the theme of Agriculture and Food Security, South Africa was singled out by the FAO for our efforts to eradicate hunger and ensure food security. Legislation Since coming into office I have tried to pursue a legislative review, since many of our legislative mandates arise from a time when circumstances were very different. Laws from as far back as the 1930 s are still on the statutes, although they say little about our current concerns. In the process we identified more that 20 laws which need substantial amendment. As you know, the process is long and complicated, and in the end, even with the help of the University of Pretoria, we have managed to amend very few of these as we would have liked. I can only claim to e able to give to my successor a comprehensive audit of all the legislation, and a solid basis to move forward on those that are most urgent.

4 Ladies and gentlemen, one of the most proud moments I have had as the Minister is the sale of 268 tons of maize and beans to the World Food Programme, for delivery to Lesotho. The reason for my pride is that this maize came from 88 smallholder farmers who had been supported in different ways to reach commercial production. The World Food Programme is very fussy about what it buys, so we should all be proud of the fact that these new entrants managed to meet the high standards. In a short time, these farmers have graduated from subsistence farmers to being export producers. This is a concrete demonstration of our commitment to transforming the sector in a way that builds upon what is good, and opens opportunities for those who are ready to take these. And so we come to the big issue the future sustainability of the sector, and the role of ASUF. In the discussions we have had we have agreed that a major new initiative is required to ensure the revitalisation of the sector. The drop in the number of farmers, the absence of young entrants to the sector, job losses, and the declining share of GDP, all point to a sector that has been in decline since the 1970s. We have to reverse that trend, and have agreed that a number of issues need to considered to do this. In part, we must all do our bit in building the image of the sector; sometimes we are the most vocal critics, and we do nothing to try and build a positive image for youth and other new entrants. On a more practical level we have also agreed on the need to focus on the cost of inputs. The cost of labour, and of fuel and electricity, make farming a marginal activity in many areas. We have to find a way to reduce the cost of these essential inputs, and determine if there are ways to subsidise or protect farmers without distorting markets or contravening WTO regulations. The simple fact is that most countries do support their farmers, whereas we have left our farmers to their own devices, and to the vagaries of the market. For an established farmer this can be done, but we will never get successful emerging farmers under such conditions. When this was presented to the SG, he understood the situation very well, and that is why he invited concrete proposals from ASUF, which he will ensure are worked into government policy. The same applies to farm incomes - we must look at market impediments and opportunities to ensure the farmers get the best possible price for their produce, and that this has some degree of predictability. If we need to support prices in order to ensure food security, we must do so. We cannot allow our farmers to fail. We also need to protect farmers against the shocks of animal and plant diseases. A letter from the OIE, received on 14 February this year, has confirmed that South Africa is no longer restricted in terms of red meat exports due to Foot and Mouth Disease. This has opened the door for us to approach our trade partners to lift any bans that have been imposed on livestock exports. We will now focus our efforts on maintain this FMD free status, including the compulsory community service for vets, the mobile veterinary clinics that have been procured, and the new track and trace system for livestock in affected areas. This system will monitor the movement of livestock and the Department will rely on your cooperation and support to implement this system. Finally, let me turn to the Policy paper which you have kindly shared with me. In it you have identified land reform, rural safety, water, labour relations and

5 infrastructure as elements of the proposed policy framework, and I would agree that these constitute the many issues that we face. I do not intend to pre-empt you conference by engaging on the policy issues, but I must welcome your deliberation of these important issues, and say that I greatly look forward to a copy of your conclusions, which I will read with great interest. I would want to add to your list a number of other matters which should be considered, including moves towards ethical and organic farming, the adoption of climate-smart agriculture practices, and the greater use of bio-technology. I hope also that you will keep a focus on trade and investment opportunities in Africa and other new markets. This is the first time in many years that we have the opportunity for the sector to speak with one voice, and it is an opportunity that must not be lost. You will be pleased to know that in many areas my Ministry and department will echo that voice, since our interests are the same. Our mandate calls for a productive agricultural sector, fully representative of the diversity of our country, and supported by government in order to achieve the goals and food and nutrition security. The agriculture sector is acknowledged as one that can create jobs: the National Development Plan says it could be up to 1 million new jobs. With this kind of potential agriculture is indeed a game changer: we can make our rural economies a model of social integration and development. And we need your guidance and support in developing and implementing policies which will achieve this. I conclude by wishing the ASUF leadership every success in bringing one voice to the agricultural sector. We have a joint desire to create an enabling environment for agriculture, forestry and fisheries sectors to grow and thrive, and for agri-businesses to succeed. Let us make it happen. I thank you. Palesa Mokomele Spokesperson for the Minister of Agriculture, Forestry and Fisheries Telephone: (PTA) Fax: (PTA) Telephone: (CPT) Fax: (CPT) Cell: PalesaM@daff.gov.za