AGRICULTURAL SECTOR SKILLS PLAN

Transcription

1 AGRICULTURAL SECTOR SKILLS PLAN Prepared on behalf of the Sector by AgriSETA for submission to the Department of Higher Education and Training August 2017

2 AUTHORISATION AND OFFICIAL SIGN-OFF We, the undersigned, hereby certify that this Final Draft Sector Skills Plan: Was developed by the management of AgriSETA under the guidance of the AgriSETA Accounting Authority and in consultation with the Department of Higher Education and Training Was informed by extensive literature reviews, data analysis and research Takes into account all the relevant policies, legislation and other mandates for which AgriSETA is responsible Involved representative stakeholder consultations Accurately reflects the findings in terms of scarce skills and skills gaps within documented limitations to inform strategy planning and performance priorities. Date: Mr J S Madiba Chief Executive Officer: AgriSETA Date Mr T KaPlaatjie Acting Chairperson: AgriSETA Accounting Authority For more information, please contact: AgriSETA Address: 529 Belvedere St, Arcadia, Pretoria, 0002 Phone: Fax: info@agriseta.co.za i

3 S FOREWORD outh Africa has a dual agricultural economy spanning subsistence and commercial interests. These two constituencies have differing skills requirements and AgriSETA is required to serve both. In order to accurately serve the skills needs of the Agricultural sector, AgriSETA requires an updated Sector Skills Plan (SSP) for 2018/2019, including a scarce skills and skills gaps list which is aligned to government priorities and strategic frameworks. This document lays out these priorities and identifies the skills needs of the sector. It was found that commercial farmers require high level technical skills for managerial positions, and improved Adult Education and Training and Recognition of Prior Learning (RPL) for their unskilled workforce. Co-operatives require partnerships (with big business, government departments, other SETAs and industry bodies) that are targeted at helping co-operatives develop into proper businesses with access to finance, corporate governance and business management skills. The skills mismatch identified in this SSP points out that neither of these constituents outlined above currently fully benefits from existing AgriSETA learnerships. Unskilled workers are, on the whole, not eligible for lower level NQF AgriSETA learnerships because they do not have the requisite basic literacy and numeracy skills, or require RPL to be launched onto a career development path. This unskilled workforce spans commercial and subsistence farming. AgriSETA provides sufficient lower level NQF interventions, but commercial enterprises require technical skill for managerial and scientific positions, which should be catered for in the form of mentorships and bursaries. The research supporting these findings is contained in the following document. Date Mr T KaPlaatjie Acting Chairperson: AgriSETA Accounting Authority ii

4 ABBREVIATIONS AND ACRONYMS AFASA AGOA AgriSETA APAP ATR BMI DAFF DHET DRDLR DTI FETMIS GDP HEMIS HTFVs HSRC IDGP IDP IPAP IRR KZN LED MAFISA NAFU NDP NERPO NGP NEETS NSDS III NSFAS QLFS QCTO RPL SACAU African Farmers Association of South Africa African Growth and Opportunity Act Agricultural Sector Education and Training Authority Agricultural Policy Action Plan Annual Training Report Business Monitor International Department of Agriculture, Forestry and Fisheries Department of Higher Education and Training Department of Rural Development and Land Reform Department of Trade and Industry Further Education and Training Management Information System Gross Domestic Product Higher Education Management Information System Hard-to-fill vacancies Human Sciences Research Council Integrated Growth and Development Plan Integrated Development Plan Industrial Policy Action Plan Institute of Race Relations KwaZulu-Natal Local Economic Development Micro Agricultural Financial Institution of South Africa National African Farmers Union National Development Plan National Emergent Red Meat Producers Organisation New Growth Path Not in Employment, Education or Training National Skills Development Strategy III National Student Financial Aid Scheme Quarterly Labour Force Survey Quality Council for Trades and Occupations Recognition of Prior Learning Southern African Confederation of Agricultural Unions iii

5 SADC SAIVCET SAQA SDA SIP SIC SSP SIZA StatsSA TAUSA TVET WSP WTO Southern African Development Community South African Institute for Vocational and Continuing Education and Training South African Qualifications Authority Skills Development Act Strategic Integrated Project Standard Industrial Classification Sector Skills Plan Sustainability Initiative of South Africa Statistics South Africa Transvaal Agricultural Union South Africa Technical Vocational Education and Training Workplace Skills Plan World Trade Organisation iv

6 TABLE OF CONTENTS Authorisation and official sign-off... i Foreword... ii Abbreviations and acronyms... iii TABLE OF CONTENTS... v LIST OF TABLES AND FIGURES... vi Executive Summary... vii 1. RESEARCH PROCESS AND METHODS... VIII 2. DOCUMENT REVIEW... VIII 3. SCARCE AND PIVOTAL LIST FORMULATION... IX 4. SUMMARY OF KEY FINDINGS... IX Chapter 1: Sector Profile INTRODUCTION SCOPE OF COVERAGE ECONOMIC PERFORMANCE LABOUR MARKET PROFILE CONCLUSION Chapter 2: Key Skills Issues INTRODUCTION CHANGE DRIVERS ALIGNMENT WITH NATIONAL STRATEGIES AND PLANS IMPLICATIONS FOR SKILLS PLANNING IN THE AGRICULTURAL SECTOR CONCLUSION Chapter 3: Occupational Shortages and Skills Gaps INTRODUCTION OCCUPATIONAL SHORTAGES AND SKILLS GAPS EXTENT AND NATURE OF SUPPLY SUPPLY CHALLENGES EXPERIENCED BY FIRMS PIVOTAL LIST CONCLUSION Chapter 4: Sector Partnerships INTRODUCTION EXISTING PARTNERSHIPS NEW PARTNERSHIPS CONCLUSION Chapter 5: Skills Priority Actions INTRODUCTION FINDINGS FROM PREVIOUS CHAPTERS RECOMMENDED ACTIONS CONCLUSION Bibliography v

7 LIST OF TABLES AND FIGURES TABLES TABLE 1: RESEARCH PROCESS AND METHODOLOGY VIII TABLE 2: ACTIVITIES WITHIN THE AGRICULTURAL SECTOR BY SIC CODE 2 TABLE 3: KEY AGRICULTURAL ROLE-PLAYERS 4 TABLE 4: DISTRIBUTION OF EMPLOYEES BY PROVINCE IN AGRICULTURE, FISHERIES AND FRESTRY 9 TABLE 5: SMALL-EMERGING FARMERS AND CO- OPERATIVES HTFVS 20 TABLE 6: COMMERCIAL FARMERS HTFVS 21 TABLE 7: TOP EMERGING SUBSECTOR SKILLS GAPS AND FUTURE OCCUPATIONAL SHORTAGES 23 TABLE 8: GENERAL PRIORITY SKILLS FOR UNSKILLED LABOUR 25 TABLE 9: GENERAL PRIORITY SKILLS FOR SKILLED LABOUR 25 TABLE 10: SCARCE SKILLS AND SKILLS GAPS LIST 29 TABLE 11: EMPLOYEE TRAINED BY OCCUPATIONAL CATEGORY AND GENDER 32 TABLE 12: COLLEGES OF AGRICULTURE 35 TABLE 13: THE AGRISETA 2018/19 PIVOTAL LIST 37 TABLE 14: POLICY PROVISIONS SKILLS PRIORITY ACTIONS 49 TABLE 15: CO-OPERATIVE SKILLS PRIORITY ACTIONS 49 TABLE 16: MENTORSHIP AND CAREER PATHWAY SKILLS PRIORITY ACTIONS 50 TABLE 17: QUALITY OF SKILLS SUPPLY SKILL PRIORITY ACTIONS 50 TABLE 18: GREEN KNOWLEDGE SKILLS PRIORIT ACTIONS 50 FIGURES FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR 3 FIGURE 2: CONTRIBUTION TO GDP BY SECTOR, Q FIGURE 3: GROSS VALUE OF AGRICULTURAL PRODUCTS, FIGURE 4: PROVINCIAL DISTRIBUTION OF EMPLOYERS REGISTERED WITH AGRISETA 8 FIGURE 5: SUBSITENCE AGRICULTURAL ACTIVITY PER HOUSEHOLD, % 10 FIGURE 6: GENDER DISTRIBUTION OF LABOUR IN THE AGRICULTURAL SECTOR 10 FIGURE 7: EMPLOYEES BY RACE 11 FIGURE 8: EMPLOYMENT CATEGORIES WITHIN LARGE ORGANISATIONS FIGURE 9: UNIVERSITIES THROUGHPUT FOR AGRICULTURAL STUDENTS GRADUATING IN FIGURE 10: NUMBER OF POST-SCHOOL GRADUATES IN AGRICULTURAL SECTOR 31 FIGURE 11: SKILLS DEVELOPMENT INTERVENTION 32 FIGURE 12: DISTRIBUTION OF AGRISETA LEARNERSHIPS 34 FIGURE 13: DISTRIBUTION OF SAQA REGISTERED AGRICULTURE QUALIFICATIONS 35 vi

8 A EXECUTIVE SUMMARY griseta requires an updated scarce skills and skills gaps list, aligned to government priorities and strategic frameworks, in response to needs identified by the Agricultural sector. There is a need to understand how the current scarce skills and skills gaps list matches the needs of the Agricultural sector and how AgriSETA might facilitate relevant skills and educational opportunities to address skills gaps identified. This Sector Skills Plan (SSP) aims to address five key objectives: 1. Provide a profile of the Agricultural sector which outlines economic indicators and trends in the sector, including employer and employee trends. 2. Identify key skills issues in the agricultural sector by highlighting the macro socio-economic factors that impact on the demand for skills. In this regard, change drivers were identified and their articulations with national policy and strategy elaborated upon. 3. Analyse the occupational shortages and skills gaps trends in the agricultural sector to identify potential skills mismatches. This analysis resulted in the formulation of the scarce and pivotal skills lists. 4. Agricultural sector partnerships were analysed to determine show they can be improved, as well as demonstrate best practice with regard to partnering. 5. Synthesis of all the above mentioned objectives to establish skills priority actions. vii

9 1. RESEARCH PROCESS AND METHODS Mixed research design and methods were adopted, including qualitative and quantitative methods. TABLE 1: RESEARCH PROCESS AND METHODOLOGY Research topics Occupational Shortages and Emerging Skills Needs Skills Issues and Demands Objectives of the studies Establish the occupational shortages and emerging skills needs in the 11 subsectors of the agricultural sector Identify the key occupational shortages and demands with regard to unskilled, skilled, generic subsector occupations and emerging skills needs in the agricultural sector. Research method Qualitative research Quantitative research Nature of the studies Nonprobability sampling method was used to identify stakeholder from whom specific information is required. Gathering empirical evidence using primary data sources, as well as undertaking theoretical, desktop research using secondary data sources. Sample size 5,878 AgriSETA stakeholde rs 12% were cooperati ve farmers, 13% were small and emerging farmers and 75% were commerci al farmers Data collection tool Key informant interviews and desk research The qualitative interviews (primary data) and document analysis (secondary data). Survey The quantitativ e survey gathered data on the unskilled, skilled and generic occupation al shortages and skills gaps Time frame of the study Two months (June-July 2016) Three months (August- October 2016). Data analysis, synthesis and triangulatio n followed over a period of three months (November - January 2017) 2. DOCUMENT REVIEW A document review was conducted to establish the economic performance and trends by subsector, geographic concentration and employers. Government policy and strategy documents, as well as the key statistical and industry publications, were reviewed and these are included in the bibliography. A thematic analysis was conducted to synthesise the key economic, policy and training issues affecting the agricultural sector, to identify key skills issues. viii

10 3. SCARCE AND PIVOTAL LIST FORMULATION The scarce skills, skills gaps and pivotal skills lists were arrived at through secondary data analysis and the numbers made available in previous Sector Skills Plans Scarce skills and skills gaps list was generated through: Identifying hard-to-fill vacancies based on the results of previous Sector Skills Plans, triangulated with 2015/16 and 2016/17 WSP data, as well as surveys sent to all the AgriSETA levy payers and agricultural sub-subsector committee members. Further information was obtained through interviews with the top levy payers and key industry stakeholders to corroborate these findings. An analysis of graduate completion rates compared against hard-to-fill vacancies identified through our stakeholder engagements Pivotal list was generated through: An analysis of employer commitment to train in specific occupational areas as per the WSP submissions, in comparison with the hard-to-fill vacancies, thus determining where additional training is needed that industry has not yet, or is unable to, respond to. These analyses corroborated the existing top ten scarce skills list and are discussed in chapter 3. They provide an indication of the imbalances in the sector at national qualification and occupational level. They also provide an indication of the volume of skills formation in the workplace and through training providers (Powell & Reddy, 2015). 4. SUMMARY OF KEY FINDINGS South Africa has a dual agricultural economy spanning subsistence and commercial interests. AgriSETA is required to fairly serve both these constituencies despite deriving the bulk of its income from top levy players who are a minor proportion of the sector as a whole. The top levy payers contributions justifies their skills needs be catered for, but there is also an equal democratic imperative to support subsistence farmers and rural development for the sake of improved livelihoods and food security. These two constituencies have differing skills requirements. Commercial farmers require high level technical skill for managerial positions, and improved AET and RPL for their unskilled workforce. While co-operatives require partnerships (with big business, government departments, other SETAs and industry bodies) that are targeted at helping cooperatives develop into proper businesses with access to finance, corporate governance and business management skills. These should be provided in the form of mentorships which fall beyond traditional SETA learnerships. It appears that the skills mismatch in the agricultural sector is that neither of these constituents currently fully benefits from existing AgriSETA learnerships. There are a group of unskilled workers who are not eligible for lower level NQF AgriSETA learnerships because they do not have the requisite basic literacy and numeracy skills, or require RPL to be launched onto a career development path. This unskilled workforce spans commercial and subsistence farming. AgriSETA provides sufficient low to medium level NQF interventions, while agricultural colleges and higher education institutions provide medium to high level skills required by commercial enterprises. ix

11 CHAPTER 1: SECTOR PROFILE 1. INTRODUCTION C hapter 1 provides an overview of the agricultural sector in South Africa by describing the five broad sections. The first section deals with the scope of the agricultural sector s coverage. The second section describes the AgriSETA stakeholders and key role-players in the sector. The third section expands on the economic performance of the agricultural sector and details how the sector contributes to the broader South African economy. The fourth section explores the employer profile which is based on the submitted 2016 WSP/ATR data, supplemented with data from Statistics South Africa s Quarterly Labour Force Surveys. Finally, the fifth section provides a labour market profile, where the number and demographics of people employed in the sector are provided. This chapter is intended to set the scene for the skills issues delved into in subsequent chapters SCOPE OF COVERAGE Agriculture, in relation to skills development in the sector, only includes agricultural activities concerned with resource production (primary) and some primary processing of food, aquaculture and growing of trees as a secondary crop by farmers (secondary). The sector is divided into 41 subsectors that are classified according to their agricultural and economic focus. Table 2 below highlights the 41 subsectors and their Standard Industrial Classification (SIC) codes, as well as their focus areas. 1

12 TABLE 2: ACTIVITIES WITHIN THE AGRICULTURAL SECTOR BY SIC CODE Subsector SIC Code SIC Description SEED Seed production and marketing PEST CONTROL Pest Control FIBRE Grading, ginning and packing of wool and cotton raw material TOBACCO Manufacture of tobacco products Processing and dispatching of tobacco Other animal farming, production of animal products (not elsewhere classified) POULTRY Ostrich farming Poultry and egg production including the slaughtering, dressing and packing of poultry AQUACULTURE Fishing, operation of fish hatcheries and fish farm Manufacture of flour and grain mill products, including rice and vegetable milling, MILLING, grain mill residues PET FOOD & Manufacture of prepared animal feeds ANIMAL FEED Manufacture of pet foods Manufacture of starches and starch products SUGAR HORTICULTURE GRAINS & CEREALS RED MEAT Sugar plantation including sugar cane and sugar beet etc Manufacture of sugar including golden syrup and castor sugar Growing of Vegetables, Horticultural specialties and nursery products Growing of Vegetables, Horticultural specialties (Including Ornamental Horticulture) and nursery products Growing of fruit, nuts, beverage, and spice crops Growing of coffee and tea including coconuts, cocoa, nuts, olives, dates, etc Growing of trees as second crop by farmers Fruit packed in cartons, fruit juice concentrate drummed and fruit juice in container ready for consumption Fruit exporters and importers Processing and marketing of coffee and tea including coconuts, cocoa, nuts, olives, dates, etc Service to nut farmers and companies Growing of Cereals and other crops (not elsewhere classified) Manufacture of grain mill products and starches Handling and storage of grain Wholesale & retail trade in Agricultural machinery Sale and distribution of Agricultural raw materials and other farming inputs Production and animal products (not elsewhere classified) Farming of cattle, sheep, goats, horses, asses, mules, and hinnies; Dairy farming Game farming Growing of crops combined with farming of animals (Mixed farming) Agricultural and animal husbandry services, except veterinary activities Other animal farming (not elsewhere classified) Slaughtering, dressing and packing of livestock, including poultry and small game for meat Production, sale & marketing of Agricultural by products (e.g. bones, hides) Slaughtering, dressing and packing of livestock, including small game for meat and processing of ostrich products Wholesale trade in Agricultural raw materials and livestock Transport of livestock as supporting activity Agricultural and livestock research Source: AgriSETA,

13 These subsectors are classified into 11 subsector committees, which represent their industry interests to AgriSETA. They include: 1) Milling, pet food and animal feeds; 2) Seed; 3) Sugar; 4) Pest control; 5) Tobacco; 6) Aquaculture; 7) Grain and cereals; 8) Fibre; 9) Poultry; 10) Red Meat; 11) Horticulture subsector. The graph below indicates the relative size of membership numbers by subsectors, as captured in the AgriSETA member database for FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR Red meat (45%) Horticulture (24%) Grains and Cereals (10%) Fibre (9%) Aquaculture (5%) Poultry (2%) Milling, Petfood, Animal Feed (2%) Pest control (1%) Seed (1%) Sugar (1%) Tobacco (0%) Revenue from Skills Development Levies Source: AgriSETA member database, 2016 AgriSETA generates its revenue from Skills Development levies. Currently, there are only 19,834 employers registered with AgriSETA, while there are reportedly over 40,000 commercial farmers registered for Value Added Tax (VAT) in the sector. This means that just under half of commercial farming units are contributing towards skills development in the sector, placing a fair degree of strain on available resources. In order for skills development interventions to reach a broader base, multiple resources need to be channelled into skills development interventions KEY ROLE-PLAYERS There are a number of public and private key role-players in the agricultural sector which contribute towards its functioning, including: national government departments, sector representatives and industry bodies. For the sake of brevity, the table below groups these roleplayers according to their strategic contribution to the sector. Please note that while as comprehensive as possible, this list is not exhaustive. 3

14 TABLE 3: KEY AGRICULTURAL ROLE-PLAYERS Strategic contribution Skills Development and Research Strategy and Policy Planning Rural Development and Land Reform Services Credit and assistance Department or organisation Department of Basic Education Department of Higher Education and Training Statistics SA Agricultural Research Council Department of Trade and Industry & Provincial Departments of Economic Development Department of Agriculture Forestry and Fisheries National Treasury & SARS Department of Labour Department of Economic Development National Planning Commission Department of Environmental Affairs Department of Transport Department of Rural Development and Land Reform Department of Cooperative Governance and Traditional Affairs & Municipalities Department of Water Affairs Department of Energy South African Police Service Land and Agricultural Development Bank of South Africa Relevance to agricultural skills development Quality of education of entrants to labour market, career awareness programmes to expose agriculture as a possible career choice Responsible for TVETs, HETs, agricultural colleges and skills development. Sets the national skills development agenda through regulation of SETAs. Provision of updated statistics on agricultural sector economics & labour force. Scientific research on agricultural production issues. Industrial strategy, international trade agreements, agricultural sector strategy and policy implementation desk. Sector regulatory framework, strategy and leadership, provision of extension services, Broad Economic Empowerment funding of development interventions including provision of bursaries for scarce skills. Financial planning, incentives, accountability of Land Bank, skills levies. Labour legislation, wage determinations, employment equity Sector economic strategies Identification of inter-departmental overlaps and gaps Policy and guidelines on environment protection and natural resource management, partner in environmental education Planning for transport needs in rural areas Partnering with AgriSETA in mobilising funds for capacity building of claimants. Linking agricultural and rural development to IDPs and LED, infrastructure and services to agricultural enterprises Water Boards manage local irrigation schemes Strategy to supply electricity to rural areas Collaboration with agricultural community to address issues of farm security, including attacks, stock and property theft Financial services to commercial farming sector, agribusiness, and emerging farmers. 4

15 Strategic contribution Union and Sector representatives Agribusiness Department or organisation Micro-Agricultural Financial Institutions of South Africa (Mafisa) Agri South Africa (AgriSA) National African Farmers Union of South Africa (Nafu) The African Farmers Association of South Africa (Afasa) Transvaal Agricultural Union South Africa (TAU SA) Agricultural Business Chamber Grain SA Relevance to agricultural skills development Production loans to smallholder operators Agricultural Union serving some large and small commercial farmers. Represents black farmers to level the field in all agricultural matters. Represents commercial African farmers to bring black commercial farmers into mainstream agribusiness. A national agricultural union serving commercial farmers Fosters a favourable agribusiness environment Conglomerate organisation providing commodity strategic support and services to South African grain producers to support sustainability. Source: 2015 GCIS Handbook, Agriculture and AgriSETA SSP ECONOMIC PERFORMANCE Overview Agriculture on its own accounts for 2.4% of gross domestic product (GDP) and 4.4% of total employment (IRR, 2016).If the entire value chain of agriculture is taken into account, its contribution to GDP reportedly reaches about 12% of formal employment (GCIS, 2014/15). The pie chart and table below indicate the contribution of Agriculture, Fisheries and Forestry to the GDP relative to other sectors for the first quarter of Agriculture is not disaggregated as a separate sector in these figures. FIGURE 2: CONTRIBUTION TO GDP BY SECTOR, Q Trade, catering and accommodation (34%) Manufacturing (30%) Mining & Quarrying (17%) Construction (9%) Agriculture, Forestry and Fishing (5%) Electricity, gas and water (5%) 5 Source: StatsSA, 2016, Gross Domestic Product

16 The reported number of commercial farmers in South Africa varies. AgriSETA (2016) reports that there are over 40,000 commercial farms registered for VAT with SARS. Of this number fewer than 2,500 reportedly produced more than half of gross farm income (Kane-Berman, 2016). This means as a sector, most agricultural enterprises are small in size, with a few large players making up the lion s share of GDP contributions. Most commercial farms have an annual turnover of less than R1 million, which is borne out in the WSP data, which this year reports that of the AgriSETA members, 17,475 are categorised as small, (1-49 employees) while only 698 members are categorised as large (more than 149 employees). The number of commercial farmers by racial breakdown is not readily available, but according AgriSA 700 of its black members are commercial farmers. Afasa says a third of its members, spread across livestock, field crops, and horticulture, are farming for the market, but that only 2% of them are doing so successfully (Kane-Berman, 2016). Thus, many South African farms are hand-to-mouth operations, regardless of their categorisation as subsistence or smallholder, and require significant support to become sustainable. Those farmers categorised as emerging are attempting to graduate from small-scale farming to commercial, but again require support in the form of development finance, managerial mentoring and enterprise development. The reported number of emerging farmers ranges from 50,000 to 120,000 (IRR, 2016), and some of the biggest numbers of emerging farmers are in timber and sugar. These remarks point to the need for skills development in the agricultural sector, to bolster existing farming concerns, as well as bringing new skills into the industry. The effect of shifts in land reform for rural skills development will be taken up in chapter 2. The figure below indicates the gross value of agricultural products from A sharp decline was observed from 2014 to 2015, a trend which is expected to continue into 2016, with drought as one of the major contributing factors to this decrease in value. FIGURE 3: GROSS VALUE OF AGRICULTURAL PRODUCTS, Rands (Millions) 6 Source: Stats SA 2016 The value of South African exports of agricultural products increased on a steady pace between 2010 to A major increase in exports was in 2014 and a sharp decline in The agricultural sector is seen as a critical employer with larger scale farming operations not only creating many jobs in rural communities, but also being a catalyst in creating downstream business and employment opportunities within the agri-processing and manufacturing sectors (FEM, 2015). The agriculture sector has strong linkages with many sectors including tourism, manufacturing, wholesale and retail among others. Backward linkages in manufacturing are created during the purchase of fertilisers, chemicals and implements, and forward linkages are

17 established through the supply of agricultural raw materials to the manufacturing industry. Agricultural products such as vegetables, fruit, dairy products and meat are marketed through retail shops straight from the farm. The agricultural sector therefore directly and indirectly creates employment for a significant number of people. Statistics South Africa (2014) reported that more than 75% of all national farm operation costs were attributed to labour, reiterating the centrality of labour concerns to the sector. Such a labour intensive industry with linkages to many other value chains offers shared benefits for skills development in the sector. Partners up and down the value chain will benefit from improved operations and efficiencies while employees will have improved quality of life with improved skills levels. The South African food security will be enhanced through sustainable farming practices in small-scale and commercial farming alike Economic outlook for the sector Business Monitor International (July, 2016) holds a mixed outlook for the South African agricultural market. This is due to the effects of the drought and El Niño on corn and wheat. The weak rand, weather volatility and falling farm incomes are forecast to exert downward pressure on the market. However, in the longer term it is predicted that revenue in the sector will be boosted by a growth of about 40% from food consumption due to the growth of the middle class and disposable incomes. BMI estimates that annual food consumption revenue will reach over R609 billion in In the 2015/2016 financial year corn production was expected to decline by 38.8% and sugar production to decline by 20.2% due to the severe drought and El Niño. However, poultry production will increase by 1.2% and pork production will rise by 2.1%. The effect of the drought and climate change on skills development will be taken up in Chapter EMPLOYER PROFILE The AgriSETA members data base includes some 19,834 employers. When one looks at this data disaggregated by sector and province, the numbers do not add up exactly due to overlap of provincial or sectoral boundaries. 17,139 employers are categorised as small, (1-49 employees), 1,611 are medium ( employees) while only 653 members are categorised as large (more than 149 employees). Among registered employers, there were 13,946 employers in the primary sector, most of them small companies. The primary sector constitutes 70 % of all registered employers, followed by fibre (11%) and red meat (6 %). The sugar, coffee/tea and tobacco subsectors have the fewest registered employers, jointly accounting for about 1% of all registered employers in the sector. The provincial distribution of employers registered with AgriSETA is reflected in the pie chart below, with provincial distribution by employer size in figure 4. 7

18 FIGURE 4: PROVINCIAL DISTRIBUTION OF EMPLOYERS REGISTERED WITH AGRISETA Eastern Cape, 9% Eastern Cape Western Cape, 29% Freestate, 7% Freestate Gauteng KwaZulu-Natal Gauteng, 17% Limpopo Mpumalanga Northern Cape, 8% North West North West, 3% Northern Cape Mpumalanga, 12% Limpopo, 1% KwaZulu-Natal, 14% Western Cape 8 Source: AgriSETA members database, 2016 What we see in the figure above is that the Western Cape at 29% is the most represented province in the AgriSETA membership database, followed by Gauteng (17%), KwaZulu-Natal (14%) and Mpumalanga (12%), and the Eastern Cape, Northern Cape and the Free State 9%, 8% and 7% respectively. The lowest number of AgriSETA members ranged between 3 % for Northwest and 1% for Limpopo province. The AgriSETA database does not represent all farming enterprises in the country, and thus must be treated with a fair degree of caution when applying it to a national context. For instance, Limpopo is a known farming province, but is underrepresented in AgriSETA numbers. Nevertheless, there is significant number of stakeholders expressing an interest in skills development in the agricultural sector. What these figures reveal is that AgriSETA needs to meet the needs of two distinct constituencies: top levy payers and small-scale farmers. The needs of a large commercial farm differ from those of a subsistence farmer. There is a need to work towards supporting the skills development needs of top levy payers because of their large contributions and ability to absorb labour, but there is also a democratic responsibility towards ensuring that the large majority of small-scale farmers attain skills that make them sustainable for the sake of the food security of their communities. These issues are further taken up in chapter LABOUR MARKET PROFILE Turning from the employer profile, we will now look at the employee profile of the agricultural sector. The labour market trends presented here have largely been drawn from Quarterly Labour Force Survey (QLFS) data from StatsSA, supplemented with data from the AgriSETA WSP and membership databases. It is important to recognise the limitations of both these datasets so that unfounded extrapolations are not made. The QLFS data does not distinguish between employment figures for agriculture, fisheries and forestry or between the informal and formal sectors. Data for domestic workers is aggregated with

19 agricultural data and the data only reflects the economically active population between the ages of 15 and 64. Where possible, this data will be compared to the AgriSETA WSP data, which is also limited in its scope in that it only represents about 10% of employers affiliated with the SETA. South Africa recorded an unemployment rate of 24.5 %in the fourth quarter of 2015 (narrow definition) (StatsSA, QLFS, Q4, 2015). If people who are no longer actively seeking work are included, the broad unemployment rate rises to 35.22% (StatsSA, QLFS, Q4, 2015). South Africa now has a NEET (not in employment, education or training) youth population of approximately 3, 4 million people. The sheer scale of the crisis demands each and every sector s involvement and the particular impact of this youth bulge is addressed in chapter 2. Over the twelve-month period from January 2015 to January 2016, employment in the agricultural sector decreased from to Departing from this downward trend, the QLFS conducted by StatsSA in the first quarter of 2016 put the agricultural sector amongst the few industries that experienced a quarterly increase in employment levels (16,000 employment opportunities were observed). BMI has attributed some of this growth to huge sums being invested in the Proudly South African food campaign to encourage consumers to buy domestically grown and produced goods Provincial distribution of employees The table below indicates that the Western Cape has the highest number of agricultural employees at , this is followed by KwaZulu-Natal at employees and Limpopo at employees (StatsSA, 2016). TABLE 4: DISTRIBUTION OF EMPLOYEES BY PROVINCE IN AGRICULTURE, FISHERIES AND FORESTRY Province Western Cape Eastern Cape Northern Cape Free State KwaZulu Natal North West Gauteng Mpumalanga Limpopo Total Source: Statistics South Africa, Quarterly Labour Force Survey.1 st Quarter 2016 These employment statistics reveal a bias in AgriSETA WSP data, where Limpopo was shown to have a minimal employer profile. What this QLFS data indicates is there is room for substantial engagement with Limpopo, to up their provincial contribution towards skills levies, thereby increasing the skills resources pool across the board. This QLFS data is further broken down in the bar graph below, to examine the household levels of agricultural activity by province. 9

20 FIGURE 5: SUBSITENCE AGRICULTURAL ACTIVITY PER HOUSEHOLD, % Eastern Cape Free State Gauteng KZN Limpopo Mpumalanga North West Northern Cape Western Cape Livestock Poultry Vegetables Crops Other Gender Source: Statistics South Africa, Quarterly Labour Force Survey.1 st Quarter 2016 Figure 6 below gives the breakdown of the agricultural sector by gender as reported in the first quarter of 2016 (StatsSA, QLFS, Q1, 2016). Figure 6: GENDER DISTRIBUTION OF LABOUR IN THE AGRICULTURAL SECTOR Jan-Mar 2015 Jul-Sep 2015 Oct-Dec 2015 Jan-Mar 2015 Female Male 10

21 The male to female percentage for agricultural labour was found to be 33.5% for females and 67.5% for males, as indicated above Race WSP (2016) data reveals that black Africans comprise the majority of employees in the sector at 64%, followed by Coloured employees at 23%and whites representing 12% of the agricultural workforce. Asians only represent 1% of workers in the agricultural sector. FIGURE 7: EMPLOYEES BY RACE Africans, 64% Africans White, 12% Coloured Indian, 1% Indian Coloured, 23% White Source: AgriSETA WSP Submissions, 2016 WSP data from all the sub-sectors shows only 601 employees with disabilities out of 244,224 employees within large Agricultural enterprises were selected for training Age Half of the people employed in the agricultural sector by employers submitting WSP, are between the ages of 35 and 55. Young people below the age of 35 constitute 42% of people employed whilst 8% are above the age of 55. In total, 92% of the workers are below the age of 55. These demographic realities were validated in interviews with stakeholders, who all commented on the need for skills transfer from those exiting the workforce to those coming up the ranks. The issue of unskilled youth presents a difficulty for skills transfer, because some base level qualification is needed to enter the skilled workforce in the first place. This presents challenges for skills development, because of the double hurdle of experienced employees exiting at a rate not able to be matched by the numerous youth demographic. Analysis of WSP submissions by employers in 2016 shows that the majority of employees are in the primary subsector (48%) followed by the grain sub-sector (11%) and poultry at 19% each. Coffee & Tea, sugar and fibre sub-sector has the least representivity of workers Occupational categories This chapter concludes by looking at the reported existing skills levels in agricultural enterprises as reported WSPs for The necessary skills vary from highly skilled managerial and professional occupations to fairly low level skills for elementary occupations. The majority of the workforce comprises elementary occupations, while managers comprise 6% of the workforce. 11

22 FIGURE 8: EMPLOYMENT CATEGORIES WITHIN LARGE ORGANISATIONS Managers 6% 3% 6% Professionals 51% 5% 4% 12% Technicians and Associate Professionals Clerical support workers Service and Salesworkers 13% Skilled Agricultural and related Trade workers Plant and Machine Operations Elementary Occupations Source: AgriSETA WSP Submissions, CONCLUSION Having a firm sense of the agricultural sector s contribution to the economy in terms of production and employment, we can now more readily identify key skills issues that speak to this economic reality. The remainder of this document covers the following issues that speak to Sector Skills Planning. Chapter 2 identifies key skills issues as framed by government legislation, policies and frameworks, and identifies key macro socio-economic and environmental factors that function as key change drivers in addressing skills development in the agricultural sector. Where Chapter 2 offers a high-level overview and Chapter 3 becomes much more granular. In chapter 3, the mismatches between the demand and supply of skills in the sector are examined by drawing on the views of industry stakeholders and validating these views through secondary data analysis. Chapter 4 points to key partnerships in the sector, examines existing partnerships and asks what future partnerships might be necessary to address the skills gaps identified in Chapter 3. The final chapter draws together these macro and granular skills issues and asks what the key skills priorities should be for AgriSETA over the next five years. These priorities will act as a guiding set of objectives that will inform the planning processes of the AgriSETA s annual performance and strategic plans, where they will be quantified and operationalised. 12

23 CHAPTER 2: KEY SKILLS ISSUES 2. INTRODUCTION H aving outlined the agricultural sector profile in chapter one, this chapter is concerned with two specific areas that shape the key skills issues in the agricultural sector Firstly, this chapter identifies factors that drive change in the sector, influencing the need for the particular skills. Secondly, the agricultural sector is aligned with national strategies and plans providing a snapshot of the key policy and planning documents that shape skills planning in this sector CHANGE DRIVERS In this section key themes and issues driving change and influencing skills demand and supply in the agricultural sector are addressed. These change drivers were identified through a thematic synthesis of internal stakeholders views, policy documents, existing research and stakeholder engagement, and pertinent current affairs issues reported in the media over time Legislative loopholes affecting skills development Wiltshire (2016) has drawn attention to a legislative loophole with regards to skills development in the agricultural sectors. She notes that employers receive no subsidies for training temporary farmworkers, which comprise a large part of the agricultural workforce. This is because the Skills Development Act defines learners dichotomously as either (fully) employed learners (18.1) or (fully) unemployed learners (18.2). This means that temporary (partially) employed learners are not specifically catered for. This has a detrimental effect on temporary farmworkers who will not receive any skills development while they are employed or unemployed, because skills development legislation is premised on the assumption of labour market security and does not recognise the growing numbers of casualised workers in South Africa (52%) (ibid). This 13

24 research points to the need to support temporary workers with skills especially needed for crop production, livestock farm workers and harvesters. These required skills are supported by data obtained from the 2017 WSP/ATR submissions Land and agrarian reform The government places high value on the need for land reform as a form of redress for historical issues of dispossession. There is a target of transferring 30% of agricultural land to black ownership by 2025 (Xingwana, 2008). However, the success of land reform to date has been limited with no increase in production or economic growth. This is because many beneficiaries lack the necessary production skills and business acumen to farm effectively. The DRDLR s 2012 Midterm Review highlighted the need for mentors and strategic partners to help emerging farmers succeed. However, it was reported in July 2016 that land reform had the potential to deter investment in agribusiness activities and that the growing exodus of South African farmers could have a detrimental impact on the agribusiness sector, depriving it of knowledge and skills (BMI, 2016). The 2014 APAP noted that small commercial farmers, of which land reform beneficiaries are a subset, are disappearing at an alarming rate, with smaller farms being taken out of the market by bigger producers who survive because of economies of scale. These findings, supported by research and already existing programme interventions, point to the urgent need to retain existing skills in the sector, to mentor emerging farmers in management skills and enterprise development in the field (Kane-Berman, 2016, stakeholder interviews, 2014, CDE, 2008) Agricultural co-operatives It was reported by BMI that 80% of farmers in sub-saharan Africa are smallholders. It is argued that, in the long term, African farming will have to move away from subsistence agriculture to be competitive and profitable in the genetically modified farming sector (BMI, 2016). For this reason, partnerships with food companies, the development of co-operatives and greater access to credit are needed to develop the sector more generally (BMI, 2016). Agricultural co-operatives are explicitly mentioned in the policy documents outlined above as requiring support to ensure their sustainability. Indeed, there have been calls for a new rural development subsector to be established to cater specifically for the needs of co-operatives, in response to both stakeholder needs and the policy directive contained in the NSDS III (Internal Consultation, Internal Stakeholder, ). These co-operatives face the dual challenge of needing technical production skills as well as corporate governance skills. Smaller agricultural co-operatives do not stand a competitive chance in the market, with major retailers buying directly from commercial farms in both urban and rural areas (Kane-Berman, 2016). Furthermore, collective ownership often entails disputes and conflict which works against efficient management of business concerns (ibid; Internal Stakeholder, ). Supporting these observations, in stakeholder engagements with primary agricultural co-operatives in Katlehong in Johannesburg s East Rand in 2014, it was noted that technical skills training was badly needed, as well as corporate governance and financial management skills Climate change, drought and food security The 2015/2016 drought, a result of the worldwide El Niño effect, is said to be the worst to hit the country since 1992, and has shifted the domestic maize market into a net important situation (BMI, 2016, GrainSA, 2015, AgriSA). Maize production is expected to decline by 38.8% year-onyear, while sugar production will decline by 20.2% 2015/16 (BMI, 2016). Already only 45.6 % of South Africans are food secure (HSRC, 2014), and the drought could have further deleterious effects on food security. The drought, along with other challenging environmental factors, could act as a disincentive from pursuing an agricultural career. National food security depends on a 14

25 capital-intensive agricultural sector based on economies of scale (Kane-Berman, 2016), and thus smaller producers are even more at risk during the drought a difficult economic and environmental climate in which to take risks. Subsistence and smaller commercial farms should be offered support, but equally commercial farms need to attract those with green knowledge skills to ensure food security for South Africans generally The Green Economy There is an increasing emphasis on the green economy in government policy documents (see, NDP, NGP). In the agricultural sector, this refers to the use of environmentally sustainable farming practices. These sustainable practices require new knowledge and skills that cuts across farming enterprises of all sizes. The need for green knowledge is conveyed through industry-specific training interventions across different subsectors. Green knowledge, at this stage, is largely a higher NQF level skill. Research and development on the role of green knowledge in the agricultural skills sector should be conducted. For instance, there is need for the up-skilling of farm workers in energy-efficient methods, resource sustainability, agro-processing and other green technologies. This should also be done through coordination with other sectors, given the crosscutting nature of environmental concerns (Environmental Sector Skills Plan, No date) The youth bulge and skills development Youth, people aged 15 35, comprise 36% of the South African population, and 70% of the unemployed (StatsSA, 2016; Merten, 2016). It was reported that black Africans today, aged between 25 and 35, are less skilled than their parents would have been. This presents a huge challenge for skills development generally, and specifically for the agricultural sector, with a waning interest in agriculture and rapid urbanisation. Confirming this, Mr Jerry Madiba, CEO of AgriSETA, has commented that young people do not find agricultural careers attractive (Kane- Berman, 2016, p.6). The South African Confederation of Agricultural Unions (SACAU) has called on stakeholders to recognise agriculture as a high skilled business with great opportunities for the youth (AgriSA, 2016). But when youth are largely unskilled or undereducated, there needs to be major upskilling across the board before they can take advantage of available employment opportunities. Demographically, there is a generalised mismatch between the demand for skilled labour, and the supply of unskilled labour Technology and mechanisation Development and production concerns in agriculture place an emphasis on technological advancement, to increase productivity to keep up with increasing demands for food; however there has not been a concomitant focus on technological skills advancement in the sector. The threatening maxim of the sector is that as agriculture becomes more mechanised, the unskilled labour force is replaced by a significantly smaller skilled labour force (Employment Conditions Commission, 2013). However, BMI (2016) reported that, the agricultural mechanisation rate in Africa is the lowest in the world. Nevertheless, South Africa s situation is somewhat different to the rest of Africa. For instance, South Africa, Morocco and Tunisia comprise the majority Africa's new tractor sales (BMI, 2016). Thus, to remain competitive globally, skills training in agriculture needs to keep up with technological progress. Internal consultation with AgriSETA staff reveals that there is an increasing demand for artisans and technically qualified workers in response to increased mechanisation in the sector. 15

26 Trade agreements Poultry Imports The African Growth and Opportunity Act (AGOA) is a US Trade Act that enhances market access to the US for qualifying Sub-Saharan African countries based on certain conditions (AGOA, 2016). To gain access to these markets, South Africa is currently negotiating a large US poultry import deal which would lead to the import of over tonnes of US poultry a year (BMI, 2016), putting the South African poultry industry under severe pressure. The outcomes of this deal are being monitored by agribusiness experts, but the knock-on effect of this type of deal could have implications for skills development in the sector. Brexit& EU trade agreements While the effects of Brexit on South African agribusiness are yet to become clear, what is clear is that South Africa would have to renegotiate its trade agreements with the UK. Senior agricultural economist in Agricultural Business Chamber, Mr Wandile Sihlobo, commented that, market access benefits that existed through the agreement would no longer apply (Mchunu, 2016). Agricultural subsidies are one of the key issues related to Brexit. The UK is a critic of current European subsidies which have historically had an impact on African farmers export capacity (Sow &Sy, 2016). The outcome of renegotiated trade agreements will have to be monitored ALIGNMENT WITH NATIONAL STRATEGIES AND PLANS The following section draws attention to the national strategy and planning documents that frame AgriSETA s mandate for skills development. The legislative and policy frameworks speak to AgriSETA s constitutional mandate as a public institution governed by the Public Finance Management Act to develop skills programmes in accordance with the Skills Development Act, (1998), the Skills Development Levies Act (1999), and the National Qualifications Framework Act (2008). There are two seminal strategic documents that underpin AgriSETA s mandate for skills planning, namely: the White Paper on Post School Education & Training (2013) and the National Skills Development Strategy III (NSDS III) ( ). Both of these documents highlight the SETAs roles in developing clear, sector-specific linkages between education and the workplace through an analysis of the demand and supply of skills in their sector. These documents call for credible institutional mechanisms for skills planning, programmes that are occupationally oriented, and responsive higher and further education and training institutions. Furthermore, attention should be given to the needs of local, community enterprises, co-operatives and the like, with a focus on developing their skills capacities to meet the needs of their particular environments, thereby closing the gap between the rural and urban South African economies. The NSDS III is informed and guided by the following overarching government plans: The National Skills Accord as one of the first outcomes of the New Growth Path, the Industrial Policy Action Plan, 2013/ /16 (IPAP), the Comprehensive Rural Development Programme, the Human Resources Development Strategy for South Africa 2030, the National Development Plan 2030 (NDP), and the Integrated Sustainable Rural Development Strategy (ISRDS). Collectively, these government plans and programmes recognise the need for correcting structural imbalances in the economy through decent employment through inclusive growth, a skilled and capable workforce to support an inclusive growth path, vibrant equitable and sustainable rural communities contributing towards food security for all, to protect and enhance our environmental assets and natural resources, with the support of an efficient, effective and development-oriented public service (NDP). All these priorities speak to the need for relevant and targeted skills provision that promotes economic sustainability in the agricultural sector, as well as 16

27 meeting the needs of all South African communities, both rural and urban, in terms of food provision and sustainable livelihoods. Other agricultural sector-specific policy frameworks that buttress skills planning vis-à-vis job creation include the 2014 Agricultural Policy Action Plan (APAP), the DAFF Integrated Growth and Development Plan (IGDP) (2012), and the 2012 Midterm Review for the Department of Rural Development & Land Reform. The IGDP names its four sector strategic objectives as addressing issues of (1) equity and transformation, (2) growth and competitiveness, (3) environmental sustainability and (4) governance. The DRDLR Review pays particular attention to the role of mentorship in ensuring the success of emerging farmers. As part of the National Infrastructure Plan, the Strategic Integrated Projects (SIPs) take their mandate from the Presidential Infrastructure Coordinating Commission (PICC) and encompass a combination of 18 projects which are intended to address the infrastructure needs of specific sectors or geographical areas. The agricultural skills sector s contribution to the SIPs is concerned with developing trades which can be taken up in the agricultural sector. Cutting across all these policies, strategies and plans, we see a focus on: 1. The need for occupationally oriented skills training that offers in-the-field experience and mentorship 2. The need for high quality, up-to-date industry relevant training to ensure competitiveness 3. The imperative to include rural areas in economic development, job creation and food security 4. Environmental concerns related to food security and ecological sustainability. These focus areas are also borne out with regards to the contextual factors driving change in the agricultural skills sector, to which we now turn IMPLICATIONS FOR SKILLS PLANNING IN THE AGRICULTURAL SECTOR In this chapter we have seen that the legislative and policy frameworks established by government, coupled with the contextual change drivers and industry specific perspectives on skills development point to the following 5 skills implications that need to be addressed in AgriSETA s Sector Skills Plan. 5 Skills Implications 1. Practical skills transfer through mentoring and on-the-job training 2. Improved quality of agricultural extension services qualifications 3. A focus on entrepreneurship and enterprise development for emerging farmers 4. Addressing the corporate governance training needs to strengthen co-operatives 5. The development of green knowledge qualifications Chapter 3 will elaborate on the specific demand and supply of skills in the agricultural sector to identify gaps and mismatches in skills provision, providing evidence that the skills issues identified in this chapter articulate with what is happening on the ground CONCLUSION In this chapter we have seen that the legislative and policy frameworks established by government, coupled with the contextual change drivers and industry specific perspectives on skills development point to the following 5 skills implications that need to be addressed in AgriSETA s Sector Skills Plan: Practical skills transfer through mentoring and on-the-job training; 17

28 Improved quality of agricultural extension services qualifications; A focus on entrepreneurship and enterprise development for emerging farmers; Addressing the corporate governance training needs to strengthen co-operatives; and The development of green knowledge qualifications. Chapter 3 will elaborate on the specific demand and supply of skills in the agricultural sector to identify gaps and mismatches in skills provision, providing evidence that the skills issues identified in this chapter articulate with what is happening on the ground. 18

29 CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS 3. INTRODUCTION C Hapter 3 reflects the research completed on skills demand and supply in the Agricultural sector. The outcome is the result of an analysis of previous Sector Skills Plans, 2014/15 and 2015/16 WSP data, as well as engagement with AgriSETA stakeholders. Engagements included interviews, surveys and limited focus groups with external partners, stakeholders and AgriSETA member companies, as well as consultation with internal stakeholders, conducted between 2015 and Effort was taken to ensure cross sectoral inputs were obtained by reaching out to large levy payers, industry bodies, government departments as well as emerging small scale entrants into the sector. The key themes emerging from this chapter corroborate the skills implications identified at the end of chapter 2. The overarching issues framing skills supply and demand draw attention to challenges with South Africa s rural/urban divide and adequately servicing the needs of the rural sector. Furthermore, attention was drawn to the struggle with accessing or securing what could broadly be called specialised services. Either services were too costly for small enterprises to afford or the supply of government specialised skills, especially with regards to research and development, were not considered cutting-edge enough. Overall, occupational shortages were experienced with regards to literacy and numeracy skills, sustainability practices, business management capacities, corporate governance and the quality of technical and research services. Section 1 of this chapter provides a high level view of the skills demand issues as they pertain to the various stakeholder groups. Section 2 of gives an overview of skills supply by agricultural 19

30 sector training institutions. Finally, Section 3 identifies a specific set of scarce and skills gaps for the sector. These demands have been formulated into a Pivotal skills list, which will frame the skills development priorities of AgriSETA going forward. In this document, scarce skills refer to those occupations in which there are a scarcity of qualified and experienced people, currently or anticipated in the future, either (a) because such skilled people are not available or (b) they are available but do not meet employment criteria. While, skills gaps refer to specific, key or generic and top up skills within an occupation. The skills demands data presented in this chapter is disaggregated by the AgriSETA subsectors, as outlined in chapter 1. It is also disaggregated by the needs of small-emerging and co-operative farmers, and the needs of commercial farmers OCCUPATIONAL SHORTAGES AND SKILLS GAPS Hard-to-fill Vacancies (HTFVs) The analysis conducted has identified the hard-to-fill vacancies (HTFVs) and skills issues as they pertain to each stakeholder grouping within each subsector. The skills issues, gaps, as well as the emerging skills needs as identified through the survey and WSP submissions analyses are outlined in the tables below. Firstly the needs of small-emerging farmers and co-operatives are addressed, followed by the needs of commercial farmers. TABLE 5: SMALL-EMERGING FARMERS AND CO- OPERATIVES HTFVS Subsector Skills and/or Qualifications Gaps OFO Code Fibre Red meat Horticulture Hand and machine shearing National Certificate: Agri Trade Processes National Certificate: Agricultural Equipment Service &Repair National Certificate: Agricultural Extension National Certificate: Animal Production National Diploma: Agricultural Extension National Diploma: Animal Production National Diploma: Plant Production National Diploma: Specialist Agricultural Machinery Technician Predation management Wool Nutrition Blokman Meat Inspector Livestock Mixed Crop and Livestock skills National Certificate: Agricultural Machinery Technician National Certificate: Perishable Produce Export Technology General Education and Training Certificate: Horticulture Further Education and Training Certificate: Manufacturing Technical Maintenance National Diploma: Agri Sales and Service Management National Certificate: Horticulture General Education and Training Certificate: Horticulture National Certificate: Agricultural Extension National Certificate: Agricultural Machinery Technician National Certificate: Farming National Certificate: Fruit Packing and Grading Processes

31 National Certificate: Mixed Farming Systems National Certificate: Perishable Produce Export Technology National Certificate: Plant Production Further Education and Training Certificate: Manufacturing Technical Maintenance Pest control Further Education and Training Certificate: Pest Control Operations NQF Further Education and Training Certificate: Seed Marketing Further Education and Training Certificate: Seed Processing and Packaging Control Seed Further Education and Training Certificate: Seed Production Education and Training Certificate: Seed Research and Development National Certificate: Seed Analysis Further Education and Training Certificate: Grain Milling Grain General Education and Training Certificate: Grain Handling Processes National Certificate: Agri Sales and Services National Certificate: Grain Milling Further Education and Training Certificate: Manufacturing Technical Maintenance General Education and Training Certificate: Horticulture National Certificate: Agricultural Machinery Technician Sugar National Certificate: Farming National Certificate: Fruit Packing and Grading Processes National Certificate: Horticulture National Certificate: Perishable Produce Export Technology National Certificate: Plant Production National Diploma: Agri Sales and Service Management Further Education and Training Certificate: Grain Milling Milling Further Education and Training Certificate: Manufacturing Technical Maintenance National Certificate: Agri Sales and Services National Certificate: Agricultural Machinery Technician Poultry General Education and Training Certificate: Poultry Production National Certificate: Abattoir Slaughtering Processes FETC: Perishable Produce Export Technology National Certificate: Abattoir Supervision National Certificate: Agri Sales and Services Biosecurity National Certificate: Agri Trade Processes National Certificate: Perishable Produce Export Technology National Certificate: Poultry Processing National Certificate: Poultry Production Vaccination Tobacco National Certificate: Tobacco Production TABLE 6: COMMERCIAL FARMERS HTFVS Subsector Skills and/or Qualifications Gaps OFO Code Fibre Hand and machine shearing National Certificate: Agri Trade Processes National Certificate: Agricultural Equipment Service &Repair National Certificate: Agricultural Extension National Certificate: Animal Production National Diploma: Agricultural Extension

32 Subsector Skills and/or Qualifications Gaps OFO Code National Diploma: Animal Production National Diploma: Plant Production National Diploma: Specialist Agricultural Machinery Technician Predation management Wool Nutrition Red meat Horticulture National Certificate: Animal Production National Certificate: Farming National Certificate: Mixed Farming Systems National Diploma: Animal Production Dairy specific training National Certificate: Abattoir Slaughtering Processes National Certificate: Abattoir Supervision National Certificate: Agri Sales and Services National Certificate: Farming National Certificate: General Abattoir Processes National Certificate: Perishable Produce Export Technology National Diploma: Agri Sales and Service Management Certificate: Gardening and Horticulture National Certificate: Farming National Certificate: Agricultural Machinery Technician General Education and Training Certificate: Horticulture National Certificate: Perishable Produce Export Technology National Certificate: Horticulture National Certificate: Plant Production National Certificate: Fruit Packing and Grading Processes General Education and Training Certificate: Horticulture National Certificate: Farming Pest control Further Education and Training Certificate: Pest Control Operations NQF Seed Grain Aquaculture Further Education and Training Certificate: Seed Marketing Further Education and Training Certificate: Seed Processing and Packaging Control Further Education and Training Certificate: Seed Production Further Education and Training Certificate: Seed Research and Development National Certificate: Seed Analysis National Certificate: Seed Processing and Packaging National Certificate: Seed Research and Development Operations National Diploma: Grain Handling Management National Certificate: Grain Handling Processes National Certificate: Agricultural Equipment Service and Repair General Education and Training Certificate: Grain Handling Processes National Certificate: Agri Trade Processes National Diploma: Agri Sales and Service Management Further Education and Training Certificate: Grain Milling National Certificate: Agri Sales and Services National Certificate: Grain Milling National Certificate: Perishable Produce Export Technology National Certificate Animal Production - level ABALONE specific Further Education and Training Certificate: Perishable Produce Exportation

33 Subsector Skills and/or Qualifications Gaps OFO Code National Certificate: Fisheries Observation: Inshore Sugar Milling Poultry Tobacco Certificate: Gardening and Horticulture National Certificate: Horticulture National Certificate: Plant Production National Certificate: Fruit Packing and Grading Processes General Education and Training Certificate: Horticulture National Certificate: Farming National Certificate: Agricultural Machinery Technician National Certificate: Perishable Produce Export Technology National Diploma: Agri Sales and Service Management Further Education and Training Certificate: Manufacturing Technical Maintenance Further Education and Training Certificate: Manufacturing Technical Maintenance Further Education and Training Certificate: Grain Milling National Certificate: Agricultural Machinery Technician Biosecurity General Education and Training Certificate: Poultry Production Health and welfare of birds National Certificate: Abattoir Slaughtering Processes National Certificate: Abattoir Supervision National Certificate: Poultry Processing National Certificate: Poultry Production National Certificate: Tobacco Production Further Education and Training Certificate: Tobacco Services National Certificate: Cigarette Filter Rod Production National Certificate: Cigarette Packaging National Certificate: Cigarette Production Tobacco Valuator The following table presents the top emerging skills and future demand needs by subsector drawn from the results of the external stakeholders survey (2016). TABLE 7: TOP EMERGING SUBSECTOR SKILLS GAPS AND FUTURE OCCUPATIONAL SHORTAGES Subsector Horticulture Top Emerging Skills and Future Demand Needs Operations management Junior management Farming technology/mechanisation maintenance Sustainable farming, adaptation and alternative energy specialists Hydro & irrigation specialists Machine operators Forklift drivers, tractor drivers, truck drivers, packers and sorters Information Technology Process engineering Project management Soil specialists Health and Safety 23

34 Subsector Red meat Pest control Seed Grain Aquaculture Milling Poultry Tobacco Top Emerging Skills and Future Demand Needs Mechanical engineering Financial management Agro-economics Agricultural research Veterinarians Auctioneers Marketing Business management Irrigation Legal compliance Marketing Trade & tariff expertise Production management Sustainability Sales Financial management Junior managers Trading Business management Grain handling Information Technology Operations management Mechanical engineering Financial management Agro-economics Agricultural research Junior managers (milling supervisor) Millers Machine operators Farm managers Nutritionist Veterinarians Poultry examiners Financial management Marketing General Skills Needs The analysis of all stakeholder engagements has highlighted the relative scarcity of a general set of skills across all subsectors and stakeholder categories, for both skilled and unskilled labour. Unskilled labour The Agricultural sector has a relatively large proportion of unskilled labour. The analysis points to the following skills needs listed below across subsectors and stakeholder categories. This list was corroborated through consultation with the Farm and Allied Workers Union. 24

35 TABLE 8: GENERAL PRIORITY SKILLS FOR UNSKILLED LABOUR General priority skills for unskilled labour Language & literacy skills reading and writing Numeracy skills Business skills income and expense analysis Basic agricultural skills horticulture, tools & implements, biosecurity Employee skills - occupational health and safety, worker s rights, time management Life skills personal health and wellbeing, HIV Aids awareness, alcoholism awareness Skilled labour Through cross-referencing the survey results (external stakeholder engagement 2016) and the WSP submissions, analysis indicates that there is a cross-cutting set of general skills needs across subsectors, and to a large degree, across farming types. This can in part be attributed to the ambition which small-emerging farmers have of becoming commercial farmers, thus smallemerging farmers have the same general skills needs in the skilled labour category as commercial farmers. TABLE 9: GENERAL PRIORITY SKILLS FOR SKILLED LABOUR Farming constituency Subsistence farmers Small-emerging, cooperative, and commercial farmers General priority skills for skilled labour Mixed farming techniques Sustainable farming Climate adaptation Financial management Basic business skills income and expense analysis Business management Marketing Adaptability fore planning Knowledge of current affairs Compliance with legislation and regulations Organisational governance General Agricultural Agricultural maintenance Occupational Health and Safety Driver training Machine operator Sustainable farming Agriculture economics Global agriculture market trends Long term planning Number occupations that are HTFVs A series of key-informant interviews were conducted with top levy payers and top industry players. The findings emerging from these interviews corroborate the skills needs outlined above. Overall, stakeholders across occupations, sub-sectors and farming types, expressed having 25

36 challenges with recruiting and retaining skilled staff in rural areas. Furthermore, they highlighted the need for technical and specialised skills that were being lost when experienced professionals exited the workforce. There are eleven occupations that are HTFVs identified Reason why the vacancy are hard-to-fill The vacancies namely; Veterinarian, Agricultural Scientists, Farm Managers, Agricultural Produce Inspectors, Agricultural Engineers, Industrial Machinery Mechanic, Mobile Plant Operator, Operations Managers, Mixed Crop and Livestock Farm Worker, Research and Development Manager, Agriculture Consultant Extension Officer are hard-to-fill and they all skilled related except for Mixed Crop and Livestock Farm Worker which is unskilled and semi-skilled. On each vacancy below there is an explanatory reason why the vacancy is hard- to-fill. Veterinarian The need for veterinarians in general, as well as those with such specialisations as veterinary epidemiologist; veterinary parasitologist; veterinary pathologist and veterinary surgeon, were identified by numerous stakeholders across subsectors. In particular public institutions interviewed indicated that they experience occupational shortages in this area. This appears to be a relative shortage as there are many qualified veterinarians in urban areas but a scarcity in rural areas to deal with the needs of farmers. Stakeholders experience difficulty both in recruitment and retention. The analysis revealed that qualified individuals tend to run their own practices in urban areas or take their skills overseas where they are in high demand. There is need for interventions that create incentives for qualified individuals to live and work in rural areas. Agricultural scientists Small-emerging farmers require these specialised services but indicated that they cannot afford to employ these individuals in their operations due to the high costs involved therein. These stakeholders also indicated in most instances that they cannot afford to hire the services of specialised consultants and rely on the services offered by state institutions, but they feel the quality of state service is not of a high enough standard to rely on. State institutions have identified the need for more individuals with specialisation in these fields, particularly in the area of research specialists. The view of these institutions is that researchers are aging and not enough qualified individuals are entering the marketplace. Commercial stakeholders agree that these skills are scarce, finding difficulty in attracting and retaining individuals such as agronomists due to the deep rural locations of their operations. The scarcity is such that they experience a large amount of skills poaching within the industry. Farm Managers The need for training and support for emerging farmers in business, leadership and managerial skills to assist agrarian reform efforts was identified across subsectors and stakeholder groupings as being urgent. Stakeholders feel that modern farm management requires a new set of skills such as agronomy, leadership, legal compliance and agricultural economics. A large number of stakeholders feel that farm managers are aging and not enough skilled younger people want to take up such work due to the locations in rural towns away from services. These shortages can be cited as critical as existing farm employees need new skills to become farm managers. 26

37 Small-emerging farmers and co-operatives require training in the areas of business and supply chain management, and practical skills through exposure to commercial operations to develop the skillset required to manage farms. There is a need for interventions to increase the number of individuals undertaking mentorships on commercial operations. Agricultural Produce Inspectors Large commercial growers indicated that they have the ability forecast their labour needs, and take appropriate steps to train and prepare persons to take up vacancies. This can most probably be attributed to having access to the finances and resources required to do so. Scarcity of skills was noted where a degree of specialisation is required, such as poultry inspectors and poultry examiners. Agricultural Engineers Government institutions identified the need to direct funding to increase the number of graduates in engineering fields, due to many qualified individuals leaving the country. There is an immediate need to direct engineering graduates into agricultural workplace experience programmes so that they can acquire the specialist skills needed to stay in the sector. Commercial stakeholders indicated that there is scarcity across the industry, with a high level of competition within the industry as well as from other industries, which makes it difficult to retain engineers. Due to the changing nature of farming, with more and more mechanisation taking place, both government organisations as well as private companies are finding it difficult to recruit and retain engineers in fields such as electrical and mechanical engineering. Industrial Machinery Mechanic Large organisations indicated that increasing mechanisation in agriculture has led to an occupational shortage of sufficiently trained individuals to service and repair plant and equipment. Stakeholders have indicated that there is an absolute scarcity in artisans who are qualified in this field. While there is an increase in the demand for mechanised equipment such as tractors across sub-sectors, few individuals want to live in rural areas where they would find employment. The shortage is such that individuals are quickly poached soon after becoming qualified and so stakeholders have become hesitant to fund this qualification feeling that they often do not see the benefits or return on investment. FAWU reported that they believe there are many individuals in possession of these skills through years of experience but they are not qualified and thus require Recognition of Prior Learning so that they may proceed to acquire the further training and qualifications needed. Mobile Plant Operator Both small-emerging and commercial farmers have indicated that increasing mechanisation has led to an occupational shortage of sufficiently trained individuals to operate equipment. Commercial farmers were of the opinion that the quality of applicants for training programmes was generally low; many unable to meet the minimum requirements for artisan training courses that would allow them to meet the demand for machine operators. There is a need to address the number of qualifying candidates to undergo further training. Operations Managers Many managers are aging and not enough skilled younger people want to take up such work. Secondary agricultural stakeholders in all subsectors indicated that they face issues in attracting and retaining qualified individuals as operations managers, resulting in a shortage of these scarce skills across the supply chain. This is in most part due to rural areas being unappealing to live in due to poor availability of services such as basic education for children. As a result, many exit and take their skills into other industries. 27

38 The cost of managerial training is high as quality training is offered primarily by higher education institutions located far away from agricultural operations. There is a need to direct funding, such as rural allowances, towards these as stakeholders feel that they are unable to satisfy the demand through current available public and private funding. One stakeholder currently trains 20 individuals a year but sees the need for training up to 100 a year if more funding was available. In secondary agriculture, many operations managers require the initial background in agricultural sales before moving to junior manager. There is a pivotal need to address learnerships at this fundamental level to support the career path that leads to the operations manager occupation. Mixed Crop and Livestock Farm Worker Basic farming skills for unskilled and semi-skilled labourers were identified across subsectors as being scarce, by both small-emerging and commercial farmers. Although training of these skills is available in the form of learnerships, stakeholders feel that learnerships are often out of reach to most unskilled labourers due to the geographical location of training colleges. The lack of reading and writing skills, that are an entry requirement, result in many stakeholders struggling to find candidates to undergo the learnerships. The unit standards of the learnerships are vital skills that are required for the development of unskilled labourers and a pivotal intervention is required in order to fund training providers to offer these components as short skills courses in the rural areas. Top levy payers and top industry players, including FAWU, indicated that there is need to define career paths for unskilled and semi-skilled labourers. Currently the youth feel that agricultural jobs available to them are low paying, dead-end jobs with no future prospects. They associate the jobs available to them in the sector with the oppression of their parents and only enter into them reluctantly. Many commercial and small-emerging farmers complain about the reluctance of workers to perform their jobs with enthusiasm, which they feel impacts negatively on productivity. Research and Development Manager Government research institutions indicated that senior researchers and research managers are aging and that there is a gap insofar as younger qualified individuals have not yet reached the required levels of experience to undertake these tasks. Agricultural researchers were identified by commercial farmers as being of relative scarcity, which corroborates the opinion of government institutions. Rapid technological advancement and mechanisation within the farming sector has created a gap when it comes to the skills required to research, understand and implement these new technologies. Agriculture Consultant Extension Officer Government institutions have identified specialised support services such as GIS & remote sensing, renewable energy specialists and biosecurity practitioners as being scarce due to the nature of these new emerging occupations. There is a general need across the sector for Agroeconomists, a critical specialisation in short supply. Legal specialists in agricultural compliance were identified by commercial stakeholders as being scarce, as well as qualified auctioneers. 28

39 Major skills gaps at a major occupational level in the agricultural sector Given the preceding evidence of stakeholder engagement and analysis, the following scarce skills and skills gaps list has been compiled to guide AgriSETA in its skills development priorities going forward. Table 10 gives a list of occupations of scarce skills and skills gaps in the agricultural sector at a major occupational level. TABLE 10: SCARCE SKILLS AND SKILLS GAPS LIST Occupation code Occupation Veterinarian Agricultural Scientists Agricultural Technician Farm Manager Agricultural Produce Inspectors Agricultural Engineer Agricultural Engineering Technologist Electrical Engineer Mechanical Engineer Industrial Machinery Mechanic Mobile Plant Operators Operations Managers Specialization / alternative title Animal Doctor; Veterinary Epidemiologist; Veterinary Parasitologist; Veterinary Pathologist and Veterinary Surgeon Plant Breeders, Plant Pathologists, Animal Scientists, Plant Scientist, Soil, and Pasture Scientists Seed Research Technician, Seed Production Technician, Irrigation Technician Agronomy, Horticulture, Crop, Mixed Crop, Livestock, and Ornamental Horticultural Managers, Aquaculture and Mariculture Farmer Meat Inspector, Fruit and Vegetable Inspector, Produce Inspector, and Quality Controller Agricultural Product Process Engineer, Irrigation Engineer, Agricultural Structures and Facilities Engineer, Crop Production Mechanisation Engineer Agricultural Product Processing Engineering Technologist, Agricultural Structures and Facilities Engineering, Aqua Culture, Engineering Technologist, Crop Production Mechanisation, Engineering Technologist, Irrigation Engineering Technologist, Natural Resources Engineering Technologist Control Engineer, Electric Power Generation Engineer, Electrical Design Engineer, Electromechanical Engineer, Illumination Engineer, Power Distribution Engineer, Power Systems Engineer, Power Transmission Engineer Air-conditioning, Automotive, Diesel, Fluid Mechanics, Heating and Ventilation, Machine Design and Development, Maintenance Management, Mechatronics, Piping, Pressurised Vessels, Rotational Plant, Structural Steel, Thermodynamics Agricultural Machinery Mechanic, Farm Machinery Repairer Agrochemical Spraying Operator, Tractor driver, Harvester Operator, and Farm Equipment /Machinery Operator. Abattoir Manager, Abattoir Veterinarian, Feedmill Manager, Sugar Mill Manager, Pet Food Mill Manager, Seed Processing Plant Manager Small Business Manager Entrepreneurial Business Manager, Owner Manager Supply And Distribution Manager Mixed Crop and Livestock Farm Worker Research and Development Manager Acquisitions, Depot, Freight Forwarding Customs Clearing, Freight, Goods Clearance, Parts, Procurement, Purchase, Supply Chain Executive, Supply Chain, Supply Lead Manager Agronomy, Horticulture, Crop, Livestock Mixed Crop and Livestock skills Product Development Manager, Research Managers 29

40 Occupation code Occupation Agriculture Consultant Crop Production Farm Worker / Assistant Sales and Marketing Manager Specialization / alternative title Agriculture Advisor, Agriculture Economic Advisor, Agriculture Extension Officer, Agriculture Field Officer, Agriculture Mentor, Animal Husbandry Consultant / Advisor, Farm Consultant / Advisor, Farm Economic Techniques Advisor, Field Husbandry Consultant / Advisor, Landcare Officer Basic farm skills Marketing and sales, Brand Manager; Product Manager; Sales Account Manager 3.2. EXTENT AND NATURE OF SUPPLY This section aims to examine the extent of occupational supply in the sector, the state of education and training provision and challenges that may be affecting the supply of skills to the agricultural sector. Furthermore, this section supplies details on the learners currently enrolled at training institutions, as well as the learners graduating into the labour market. Higher Education Institutions There is a high dropout rate of students in undergraduate programmes according to DHET data sourced from the Institute of Race Relations for 2013 and The initial phase of university seems to be the most challenging as the dropout rate tapers off as professionals advance in their careers. The chart below shows the universities throughput rate for agricultural programmes for 2013 and 2014 respectively. 30

41 Agricultural business and management Agricultural production operations Animal sciences Food science technology Plant sciences Applied horticultural business services Soil sciences Forestry and wood sciences Agricultural mechanisation Other Graduates No. of Learners FIGURE 9: UNIVERSITIES THROUGHPUT FOR AGRICULTURAL STUDENTS GRADUATING IN Undergraduate diploma/certi ficate (3 years) Bachelor s degree (3 years) Bachelor s degree (4 years or more) Undergraduate diploma/certi ficate (3 years) Bachelor s degree (3 years) Bachelor s degree (4 years or more) Learners who did not graduate Graduates Source: Institute of Race Relations, 2016 The graph above shows that on average, just over 20% of the learners enrolled for agriculture related qualifications graduated. This puts a strain on skills supply to the sector as the majority of enrolled learner s dropout, negatively affecting the skills pipeline to address identified gaps. The survey conducted with skills development practitioners (External Stakeholder Engagement, 2016) reported dropout rates of less than 20% for all the respondents, which is a vast improvement on the DHET figures cited above. A total of 3,703 and 3,878 degrees, diplomas, and certificates were awarded in 2013 and 2014, respectively. The figure below shows how the graduates were distributed across the various agricultural qualifications. FIGURE 10: NUMBER OF POST-SCHOOL GRADUATES IN AGRICULTURAL SECTOR Skills Supply from AgriSETA Discretionary Grants 31 Source: Institute of Race Relations, 2016 As part of its skills development mandate, AgriSETA implemented professional, vocational, technical, and occupational skills development programmes that result in full or part qualifications in the 2015/16 financial year. A total of 13,647 learners were enrolled whilst 11,275 learners were certificated. The graph below shows the distribution of learners enrolled and certificated in the 2015/16 financial year.

42 Number oh learners FIGURE 11: SKILLS DEVELOPMENT INTERVENTIONS Skills Programme Learnerships AET Artisan Bursaries Graduate Placement Internships Entered Completed Source: AgriSETA 2015/16 QMR4 Summary Sheet Surveys conducted with stakeholders in the agriculture sector (External Stakeholder Engagement, 2016) buttress the need for recognition of prior learning (RPL) in the sector. In March 2016, the agriculture sector had over unskilled workers (StatsSA, QLFS, 2016) and programmes such as recognition of prior learning, sustainable farming, and planning and basic business management were identified as imperative to improve human resources productivity in the sector. Concerted efforts should be channelled towards improving the productivity of the resources already in the sector through AET and RPL. Skills Supply through Mandatory Grants In addressing scarce and skills gaps needs in the sector, there are various skills development interventions that the AgriSETA and the employers in the sector undertake. In 2015/16, employers submitting training reports have indicated a total of training interventions being attended by employees. There were a higher proportion of male s trained (51.4%) as compared to females (48.6%). The majority of those who received training were in elementary occupations (86.1%) followed by Skilled Agricultural, Forestry, Fishery, Craft and Related Trades Workers (3.4%) and Plant and Machine Operators and Assemblers (2.9%). This is almost in line with the occupational breakdown of employees in the sector. Given the seasonality of employment in the sector, employers provide training to the temporary workers they employ so that they are effective and efficient in their roles. TABLE 11: EMPLOYEE TRAINED BY OCCUPATIONAL CATEGORY AND GENDER Occupational Group Male Female Total Managers Professionals Technicians and Associate Professionals Clerical Support Workers Service and Sales Workers Skilled Agricultural, Forestry, Fishery, Craft and Related Trades Workers Plant and Machine Operators and Assemblers Elementary Occupations Total Source: AgriSETA, ATR Data,

43 3.2.1 The state of education and training provision State of Education and Training Provision South Africa s agriculture skills are produced in high schools, agricultural colleges, TVET colleges and Higher Education institutions. High schools can offer Agricultural Sciences, Agricultural Management Practices and Agricultural Technology as choice subjects in Grades 10 to 12 if they have qualified agricultural teachers and the required practical facilities. In most instances, it is the specialised agricultural high schools that offer the latter two subjects, as these subjects require learners to have access to farms and agricultural production facilities (Department of Basic Education, 2013). These students can progress to take agriculture as a focus area at TVET colleges or universities. The DAFF plays a pivotal role in human capital development in the agricultural sector. It runs a Career Awareness Programme that focuses on the promotion of agriculture, forestry and fisheries as careers and livelihoods of choice (DAFF, 2015). This is particularly aimed at school-going youth in order to build a skills base to address scarce and skills gaps identified in the sector. The Career Awareness Programme is used as a vehicle to eliminate the negative perception towards agriculture and forestry and to raise the profile of fisheries, especially to the inland schools. The role of AgriSETA in skills provision AgriSETA strives to build a system where its skills development interventions respond to the socio-economic needs of the country, including the improvement and development of South African Human Resources. It fulfils its skills development mandate though, bursaries, internships/workplace experience, learnerships (including New Venture Creation), artisan development, adult education and training, land reform and mentoring, skills programmes and graduate placements. The long term plan of skilling new entrants in the sector is done through close consultation between the sector, agricultural schools and colleges, TVET Colleges and HET institutions to teach relevant skills. There are other avenues for training for those who are already employed in the sector, for example skills programmes and learnerships. Currently, AgriSETA has 92 registered learnerships aimed at addressing identified scarce skills. The chart below shows the number of qualifications falling under each agriculture sub-sector as well as the range of NQF levels covered. What is noticeable is that AgriSETA learnerships range from NQF level 1 to 5. However, if one takes into consideration the scarce and skills gaps outlined above, it is clear that these qualifications pertain to the higher NQF levels. This draws our attention to the fact that funding should be ring-fenced for bursaries and HET internships. This issue will be returned to later in this chapter. 33

44 Farming Sector - (NQF Range 1 to 5) Seed - (NQF Range 3 to 4) Red Meat - (NQF Range 2 to 4) Tobacco - (NQF Range 3 to 4) Grain - (NQF Range 2 to 5) Sugar Processing - (NQF Range 2 to 5) Poultry - (NQF Range 1 to 3) Sugar - (NQF Range 2 to 4) Tea - (NQF 2) Milling - (NQF 3) Fruit - (NQF 3) Horticulture - (NQF 1) Landscaping - (NQF 3) Pest Control - (NQF 4) FIGURE 12: DISTRIBUTION OF AGRISETA LEARNERSHIPS Source: AgriSETA, 2016 Higher Education and Training Institutes A total of 14 universities and 6 universities of technology offer agriculture related qualifications. These range from NQF level 6 to NQF level 10 and there are currently 400 HEI and 138 agricultural colleges qualifications registered on the SAQA database. In 2014, a total of 20,227 learners were enrolled for agricultural programmes at the country s higher education institutions. The level of enrolment is on an increasing trend, a good indication that future skills challenges could be addressed, if properly channelled into the workplace. The table below shows the distribution of all the South African Qualification Authority registered agriculture qualifications including those for AgriSETA, Umalusi and QCTO. 34

45 Doctrates Master's Bachelors Advanced Diplomas Post Graduate Diplomas Diplomas Certificates FIGURE 13: DISTRIBUTION OF SAQA REGISTERED AGRICULTURE QUALIFICATIONS CHE Other Source: The South African Qualifications Authority The qualifications cut across all the subsectors of agriculture and are adequate to equip personnel in the sector with the required skills. Provision of higher learning through universities and universities of technology is adequately represented in all the country s 9 provinces. Colleges of Agriculture South Africa has 12 colleges offering agriculture qualifications that fall under the auspices of the DAFF, and are administered and managed by the representative provincial Departments of Agriculture. These colleges offer qualifications mainly at NQF Levels 5 7 that include national certificates, higher certificates, diplomas and degrees in a range of qualifications accredited with The Council on Higher Education (CHE). Three colleges; Madzivhandila College, TompiSeleka College and Tsolo College; operate as farmer training centres offering short courses and learnerships at NQF Levels 1-4 that are accredited with the AgriSETA. The table below shows the provincial distribution of the 11 colleges of agriculture and the programme offerings. TABLE 12: COLLEGES OF AGRICULTURE Provinces Colleges Programmes Eastern Cape Free State Kwa-Zulu Natal Fort Cox GADI Tsolo Glen Cedara Owen Sithole Crop & Animal Production; Animal health; Agribusiness; Marketing and Forestry Animal Production; Agricultural management; Pastures & Crops and Agricultural Technical Services Animal production; Crop production Animal Production; Agricultural management; Crop Production; Agribusiness Crop Production; Animal Health; Mechanical Engineering; Animal Production; Agricultural Economics; Soil Science; Ecology Crop Production; Animal Health; Mechanical Engineering; Animal Production; Agricultural Economics; Soil Science; Ecology 35

46 Provinces Colleges Programmes Limpopo North West Western Cape Madzivhandila TompiSeleka Taung Potchefstroom Elsenburg Animal Production; Plant Production and Mixed Farming; Irrigation Management; Agribusiness Animal Production; Plant Production Agricultural Management; Plant Production; Animal Production and Irrigation; Engineering Agricultural Management; Plant and Animal Production Resource Management; Research and Technology; Veterinary Services; Plant and Animal Production. Source: igrodeals, 2016 Due to the colleges being managed at provincial department of agriculture level, they are diverse in terms of the nature and quality of programmes offered and the accreditation status of their programmes. Training Provider Perspectives AgriSETA has 491 accredited training providers offering qualifications from NQF level 1 to NQF level 5. Interviews conducted by AgriSETA revealed that there is adequate provision of agricultural training, particularly at lower NQF levels (NQF Level 1 and 2) although provision at NQF levels 3 and 4 is becoming more available. A survey conducted with skills development practitioners in the agriculture sector in July 2016 revealed that personnel in the agriculture sector will require skills such as Business and Financial Management, Computer literacy, Marketing, Communication, team building and AET programmes to be more effective. This view is corroborated by the findings of the Skills Demand survey, the results of which are reported above Supply challenges experienced by firms A total of 126,000 people including 8,000 skilled agriculture resources who were previously employed in the agricultural sector were unemployed as at March 2016 (StatsSA, QLFS, 2016). Interviews and surveys conducted with employers in the agriculture sector revealed that the following challenges were being experienced in the sector: i) Immobility of labour in the market, there are some people who are not willing to relocate to where their skills may be required ii) There are some people who enter into the agriculture sector especially at low levels without a passion for it iii) Due to the geographical spread of the farms, it is difficult to get a critical mass to be trained iv) Retaining skilled individuals interested in the sector after training v) There are high costs involved in brining individuals to urban centres for training which uses much of the budget that could otherwise increase the number of learners trained. vi) The young generation is not willing to start at the bottom and work their way up 36

47 3.3. PIVOTAL LIST The Grant Regulations (DHET, 2012) defines PIVOTAL (Professional, Vocational, Technical and Academic Learning) as programmes that result in qualifications or part qualifications on the National Qualifications Framework. AgriSETA understands PIVOTAL programmes to be programmes that respond to the supply of identified skills demands. PIVOTAL programmes in the main respond to the scarce skills list. Methods and interventions of arriving at the PIVOTAL list are as follows: The AgriSETA s PIVOTAL list was derived through a number of measures. These included the list of scarce and skills gaps, the national list of occupations in high demand, analysis of performance information and interaction with key stakeholders. A series of surveys were sent out and telephonic interviews were undertaken with major agriculture players, subsectors and industry representatives throughout all the provinces within South Africa to determine key skills gaps, future perceived skills gaps and to identify which programmes and models would best mitigate these gaps. The identification of the PIVOTAL list was preceded by the identification of scarce and skills gaps lists, which, in turn, was informed by labour market demand analysis. Interventions to implement the AgriSETA PIVOTAL list are informed by the status of supply such as the existence of registered qualifications, the adequacy of accredited providers and appropriate or relevant learning interventions to address the qualifications and skills in demand. The PIVOTAL list is ranked in order of priority as per the scarce skills identified, WSP needs and the AgriSETA supportive interventions to develop these skills. TABLE 13: THE AGRISETA 2018/19 PIVOTAL LIST Occupation Code Occupation Specialisation/ Alternative Title Intervention Planned by the SETA NQF Level NQF Aligned Quantity Needed Quantity to be supported by seta Learnerships: National Certificate: Mixed Farming Systems 2 Yes Mixed Crop and Livestock Farm Worker / Assistant General Farm Worker National Certificate: Plant Production 1 Yes Skills Programmes: National Certificate: Plant Production National Certificate: Mixed Farming Systems 1 and 2 Yes AET programmes NA No Farm Manager Agronomy, Horticulture, Crop, Livestock Mixed Crop and Livestock, and Ornamental Horticultural Managers Internships, Bursaries and Learnerships: National Certificate: Animal Production National Diploma: Crop Production National Diploma: Agriculture 4 and 7 Yes

48 Industrial Machinery Mechanic Agricultural Machinery Mechanic, Farm Machinery Repairer Apprenticeships: Electricians Millwrights Mechanical Fitters Tractor Mechanics Diesel Mechanics Fitter and Turners NA No Operations Managers Abattoir Manager, Feed mill Manager, Pet Food Mill Manager, Seed Processing Plant Manager Bursaries Internships and Learnerships: National Certificate Abattoir supervision; Further Education and Training Certificate: Grain Milling Further Education and Training Certificate: Dry Pet Food Advanced Processing Technology 4 and 7 Yes Agricultural Produce Inspectors Agricultural Scientists Meat Inspector, Fruit and Vegetable Inspector, Produce Inspector, and Quality Controller Agronomists, Plant Breeders, Plant Pathologists, Animal Scientists, Plant Scientist, Soil, and Pasture Scientists Internships, Bursaries: Further Education and Training Certificate: Meat Examination Further Education and Training Certificate: Perishable produce Exportation National Certificate Perishable produce export Technology Graduate and Post Graduate Bursaries and Internships BSc Agriculture BSc Plant Breeding BTech: Crop Production BTech: Horticulture BSc Crop Science MSc Animal Health 4 and 5 6 and 8 Yes Yes Mobile Plant Operators Agrochemical Spraying Operator, Tractor driver, Harvester Operator, and Farm Equipment /Machinery Operator. Learnership: National Certificate: Plant Production Level 2 Skills Programmes Harvest agricultural crops Plant the crop under 1 and 2 Yes

49 supervision Operate and maintain irrigation systems Agricultural Engineer Agricultural Product Process Engineer, Irrigation Engineer, Agricultural Structures and Facilities Engineer, and Crop Production Mechanisation Engineer Bursaries: Industrial Engineering Mechanical Engineering 6 Yes Research and Development Manager Product Development Manager, Research Managers Bursaries : National Certificate: Seed Research and Development operations National Certificate: Seed analysis 3 Yes Veterinarian Animal Doctor; Veterinary Epidemiologist; Veterinary Parasitologist; Veterinary Pathologist and Veterinary Surgeon Bursaries: Bachelor of Veterinary Science 7 Yes CONCLUSION The aim of this chapter has been to analyse the extent of the skills mismatch in terms of demand and supply in the sector. However, it is important to note that when trying to measure demand against supply, attaining a qualification and the supply of skills, are not synonymous. Indeed, a numeric comparison of skills supplied and demanded would overlook the essential component of workplace experience and broader contextual factors that influence the sector as a whole. In this chapter we have seen that the overarching issues framing skills supply and demand draw attention to challenges with South Africa s rural/urban divide and adequately servicing the needs of the rural sector. Furthermore, attention was drawn to the struggle with accessing or securing what could broadly be called specialised services. Two important points must be made about the data presented in this chapter, which points to the current skills gaps in the sector. First, the AgriSETA learnerships span NQF levels 1-5, however those who would benefit most from these interventions are often deemed ineligible because they do not have the requisite 39

50 literacy and numeracy skills. Two, the skills gaps and scarce skills mentioned by employers are often skills that pertain to the higher NQF levels, not supported by AgriSETA learnerships. These two findings point to two very clear key skills priorities that must be addressed. In terms of the unskilled workers gaining access to SETA opportunities there is a need to offer RPL and AET, so that these workers might engage in SETA learnerships to improve their livelihoods. In terms of the scarce and skills gaps, if AgriSETA is to meet the requirements of its constituents, it needs to ringfence funding for bursaries, experiential learning and mentorships, so that these gaps are addressed. 40

51 CHAPTER 4: SECTOR PARTNERSHIPS 4. INTRODUCTION T o achieve the relevant and targeted skills provision that promotes economic sustainability in the agricultural sector, as well as meeting the needs of all South African communities, both rural and urban, in terms of food provision and sustainable livelihoods, AgriSETA recognises that it must create partnerships with: SETAs in other sectors Public service and government Public TVET colleges Large employers and industry bodies within the sector Co-operatives, NPOs and community based organisations The purpose of this chapter is to assess the nature of partnerships that AgriSETA has established and propose measures for deepening such partnerships in the future EXISTING PARTNERSHIPS Over the period of NSDSIII, AgriSETA has worked with various sector stakeholders to develop skills for the sector. Some of the partnerships established have been of a short term nature often linked to a narrowly defined project (e.g. training of a targeted beneficiary group through an AgriSETA funded learnership programme), others evolving to being more medium to long term in nature. 41

52 Public Service and Government With a major emphasis placed on land and agrarian reform, agricultural co-operatives, climate change, drought, mechanisation, new technology and the youth bulge, AgriSETA has strengthened linkages with several of its role-players in public service and government particularly, the Department of Agriculture, Forestry and Fisheries (DAFF), the Department of Rural Development and Land Reform (DRDLR) and local municipalities such as the KwaZulu Natal Department of Agriculture. These on-going partnerships are described as follows: DRDLR: This is a co-funded project between National Skills Fund (R44 million) and AgriSETA (R20 million). The aim of this project is to identify those beneficiaries of land reform who might be supported to establish viable agri-businesses on their newly acquired land. These beneficiaries include co-operatives, emerging farmers as well as subsistence farmers. In the FY2015/ beneficiaries were supported through learnerships, skills programmes and mentorships. Funding for the FY2016/17 has already been allocated. National Rural Youth Service Corps (NARYSEC - Youth Development): This is a joint project that aims to motivate and incentivise young people to work on the land and thereby have a stake in their rural communities rather than gravitate to towns. The driving force of this programme is to provide future employment opportunities, enterprise development and further studying opportunities. 470 young people were given access to training, although it is not clear at this stage how successful the programme has been. An assessment of the project must be done prior to any extensions being made to this project. DAFF (Farm Together): This partnership supports agricultural co-operative development through mentorship and learnerships. DAFF and DRDLR have provided the farms and projects, whilst the AgriSETA provides and quality assures the training required to develop, skill and mentor farmers to sustainably run and manage co-operatives with the ultimate goal of moving emerging farmers to commercial farmers. A total of 2009 individuals from 256 co-operatives have been trained and the project is hailed a success and will continue. DAFF (Extension Officer Programme): This is a long term project with DAFF that focuses on the development and training of extension officers. This is funded from ring-fenced skills development funds within DAFF. AgriSETA has trained 233 extension officers nationally and a further agreement has been signed to extend the project. DAFF (Career Awareness Programme): This focuses on the promotion of agriculture, forestry and fisheries as careers and livelihoods of choice. This is particularly aimed at school-going youth in order to build a skills base to address skills gaps identified in the sector. The Career Awareness Programme is used as a vehicle to eliminate the negative perception towards agriculture and forestry and to raise the profile of fisheries, especially to the inland schools. KZN Department of Agriculture: The focus of this partnership project is on larger cooperatives. It seeks to develop farmers beyond the basic technical skills in order for them to become effective in farm management. The project comprises learnerships in plant production, animals, horticulture, mixed farming systems, and poultry. The qualifications are mainly at level 1 and 2. Those targeted (for farm management) will start at NQF level 3 with technical skills, and 42

53 then engage in NQF level 4 and 5 management programmes. Currently, 84 workers and members are being trained. The Land Bank: With some 300 emerging market farmers on its books, there is an opportunity for the AgriSETA to partner with The Land Bank to help emerging farmers graduate to commercial status. In doing so, this will support the implementation of the Sector Infrastructure Projects (SIPS) (in particular, those that are aligned to the local government sector) and other local economic development activities, as part of achieving Goal 6 of the National Skills Development Strategy III (NSDS III) Public TVET colleges Agricultural and TVET colleges are core to the development of skills in the sector, and it is critical that AgriSETA partners with these colleges in order to attain the objectives of NSDSIII. The AgriSETA has initiated and funded several projects with 17 public colleges in its sector (Mthashana, Umfolozi, Waterberg, Nkangala, Gert Sibande, Taletso, Boland, South Cape, Sivananda, Westcol, Maluti, Motheo, Goldfield, Mildlands, Lovedale and the East Cape Midlands TVET Colleges). AgriSETA in partnership with these TVET and Agricultural colleges currently offers 92 registered learnership programmes aimed at addressing the identified scarce skills. A Higher Education Quality Committee that was set up to advice the Minister of Higher Education and Training on the status and location of Public Colleges had the following salient findings (CHE. Advice to the Minister of Higher Education and Training on the Status and Location of Public Colleges, 2013): i) The mission and vision of the colleges are poorly aligned with the focus and purpose of the programmes offered and requires reviewing and refinement; ii) There is no shared or common governance structure across the colleges and the structures that are in place function in an ad-hoc manner and have little or no influence on operational and academic matters; iii) There are inadequate policies, systems and procedures to ensure and support quality assurance; iv) There is inadequate provision of student support services, including academic support, counselling services and recreational services, which impact on the overall learning experience and well-being of students and contributes to high drop-out rates; and v) Agricultural colleges appear to be generally well-equipped with basic infrastructure for the programmes offered, although there are some cases where there is a mismatch between the available facilities and programme requirements. The incorporation of the agricultural colleges into DHET will enable greater coherence and standardisation of agricultural qualifications as well as alignment of agriculture education standards. Close collaboration between DHET and DAFF will remain important to ensure curriculum relevance and alignment to sector needs. AgriSETA has finalised a memorandum of agreement with Agricultural Colleges for funding. The AgriSETA plans to invest R28.3 million over three years on the development and support of these Colleges. This fund will be used for capacity building, curriculum or learning programme development, lecturer training and development, and infrastructure. 43

54 Large employers and industry bodies within the sector Tongaat-Hulett: AgriSETA has partnered with Tongaat-Hulett Sugar in a programme aimed at the development and delivery of Extension Officers within the South African sugar industry. The primary focus of this programme and partnership is to deliver high calibre Extension Officers that are capable to assist emerging sugar farmers in KZN receive the support they need to sustainably farm. Through its partnership with the Owen Sithole College of Agriculture, Tongaat-Hulett has been able to solidify its relationship with the school, ensuring development of the College into a Centre of Excellence in the field of sustainable agriculture, and remains in accordance with the standards of Agricultural Training Institutions (Tongaat-Hulett Corporate Services Executive 2016). Green partnerships: AgriSETA will explore possible partnerships to provide support to viable Green business initiatives that show potential for job creation. Research needs to be conducted to identify new industries that must be supported with skills development in this area. Other: AgriSETA will also look to partner with entities that aim to produce safe and healthy food, conserve natural resources, ensure economic viability, improve quality of life in farming areas and ensure animal welfare Partnerships with Co-operatives and NGOs More recent initiatives to assist small farmers have been taken by individual farmers, commodity organisations, agricultural co-operatives and training associations, non-profit organisations, and large companies. Massmart, for example, aims to attract small farmers to its supply chain in the next few years following conditions laid down by the Competition Commission for its takeover by Walmart. (IRR 2015) Agricultural co-operatives are explicitly mentioned in the policy documents outlined in chapter one as requiring support to ensure their sustainability. In response to both stakeholder needs and the policy directive contained in the NSDS III, there has been a greater need to support cooperatives in development of skills in technical production, corporate governance and mentoring support. Small agricultural co-operatives do not stand a competitive chance in the market, with major retailers buying directly from commercial farms in both urban and rural areas. This makes the case for developing co-operatives into larger sustainable farming operations, whilst ensuring access to markets. The number of registered co-operatives has increased, thanks to government investment, from 4,061 in 2007 to 22,619 in 2010 and 43,062 in 2013 (Companies and Intellectual Property Commission 2014). However, a recent survey carried out on the status of co-operatives in the Free State by the provincial Department of Economics, Tourism and Environmental Affairs (DETEA) found the following results: Only 37% of the 220 contacted co-operatives were considered still to be in operation 21% No longer functioned 31% never got going 11% Status unknown In the case of the 139 defunct co-operatives, the main reason given for the failure of a cooperative, or for it not having been started up successfully, was state contracts that had been promised (or expected) but did not materialise. A lack of business skills was a close second, followed by conflict between members of the co-operative (Wessels, 2016). 44

55 There are currently some 450 co-operatives and other small and emergent enterprises that are receiving support from AgriSETA; some funded by the SETA, others by DAFF and the National Skills Fund. As the support of co-operatives forms part of the National Development Plan (NDP), AgriSETA will look to provide a more focused approach through the provision of business development skills, along with corporate governance, mentorship and technical skills to ensure the sustainability of a co-operative. AgriSETA will look to focus some of its partnerships with SETAs and Government Departments towards co-operatives NEW PARTNERSHIPS Partnerships are integral to the implementation of skills development activities such as research, training and sustainability. AgriSETA will look to continue with its successful programmes, applying a focused approach to the development of new partnerships that meet the skills demand of the sector. The emerging farmer, co-operatives and sustainable farming will continue to be the focus of future partnerships. The AgriSETA currently does not have any joint projects it is running with other SETAs outside of the normal inter-seta collaboration. The AgriSETA recognises the need for skills development along value chains. In mid-term horizon, AgriSETA aspires to engage a number of SETAs in areas of common interest. Specific SETAs it has identified for cross-seta collaboration and partnership are: FoodBev SETA: There are a number of secondary agricultural industries that share skills needs with industries located in the food and beverages sector. There are overlaps in relation to producers in the citrus fruit and wine industries and a need to develop a set of skills interventions that recognise the need for a more coordinated approach to beneficiation (i.e. the production of fruit products from fruit). FPM SETA: The FPM SETA is engaged with Forestry, a responsibility of DAFF. There are common skills needs between Agriculture and Forestry, including the need for effective extension services. The two SETAs need to work together on such services. There are a number of secondary production processes that fall between the two SETAs, including leather, hemp, cotton, and new industries such as the Eastern Cape goats hair initiative. A joint approach is needed to work in these industries, so as to maximise the potential for job creation. W&R SETA: In working with co-operatives one of the most difficult challenges is access to markets. The logical market is supermarkets located in the Wholesale and Retail sector. There is a trend of established farmers supplying supermarkets directly and forming direct relationships rather than trading through intermediaries. A partnership approach whereby co-operatives contracted to supply produce to a supermarket and/ or local markets such as the Pretoria and Johannesburg markets is provided with training from AgriSETA needs to be explored. H&W SETA: A serious occupational shortage in the sector is animal health. Many qualified Vets are located in towns and equity is a challenge. Veterinary schools are located in the Health & Welfare sector. The needs of animals are most keenly understood in the Agricultural sector. The SETAs need to focus on not only vets, but also animal health technicians and nurses. The partnership could include para-professionals. 45

56 4.3. CONCLUSION This chapter presented the AgriSETA partnerships. The AgriSETA aims to strengthen its existing partnerships by specifically engaging with partners to meet its occupational shortages, skills gaps and HTFVs. New partnerships especially with other SETAs will be pursued ardently to align the AgriSETA s priority skills areas and pivotal skills lists to national interests. Future SSPs will also report on partnerships that work and those that do not work. Best practice partnerships will be highlighted in future SSPs to benchmark partnership criteria with successful, effective and efficient partnership models. The next chapter presents the AgriSETA skills priority actions. 46

57 CHAPTER 5: SKILLS PRIORITY ACTIONS 5. INTRODUCTION T his chapter aims to synthesise the findings of the previous chapters and establish a set of skills priority actions for the sector. The intention of these recommended skills priority actions is that they articulate the macro concerns of the agricultural skills sector as they find expression in national policy and global change drivers (chapter 2), as well as the skills concerns identified by employers and training providers in terms of their skills gaps (chapter 3). This chapter serves to identify priorities that should be taken forward and further developed in the AgriSETA Strategic Plan and Annual Performance Plan FINDINGS FROM PREVIOUS CHAPTERS In this section the key findings emerging from the reviews and analysis offered in the preceding chapters are summarised. Cutting across key change drivers, the demand for skills in the agricultural sector and the supply of skills by training institutions is a call for mentorship. An aging workforce, skills exodus, urbanisation, attractiveness of the profession and equity efforts without the requisite technical and business support, are all reasons cited as reasons for a diminishing number of young skilled agricultural managers and professionals. Large and small farming enterprises struggle to attract and retain the required level of skill. Stakeholders require skills transfer to less experienced staff members, emerging farmers require mentorship in business management skills and co-operatives require mentorship in enterprise development. 47