READINESS FOR 2018/19 PLANTING SEASON. 04 September 2018 Portfolio Committee Meeting on Agriculture, Forestry and Fisheries

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1 READINESS FOR 2018/19 PLANTING SEASON 04 September 2018 Portfolio Committee Meeting on Agriculture, Forestry and Fisheries

2 Limpopo food access status Content Limpopo agricultural map and land capability Priorities for development Partners and collaboration agreements in place State of readiness for 2018/19 planting season Overall Letsema budget Backyard food production support Estimated job opportunities Potential markets Potential risks and mitigation strategies Progress on the implementation of plans to address issues raised during the last Portfolio committee oversight visit 2

3 Food access status Limpopo and National, 2017 GHS survey % of HH: Food Access Adequacy % of HH Food Access Inadequacy 3

4 Food access status Limpopo and National, 2017 GHS survey, cont.. % of HH engaged in agricultural activities by Provinces Source: Stats SA GHS Report, June

5 Limpopo agricultural zones 5

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12 SUBTROPICAL FRUIT INDUSTRIES Subtrop Industry Headline Stats, 2016 Avocado Litchi Macadamia Mango Total Area under production (ha) Annual production (t) Annual value R1.3 bil. R120 mil. R3.5 bil. R320 mil. R5.24 bil. Employment ±5 100 ±2 400 ± ±3 000 ± Commercial growers ±340 ±100 ±500 ±120 ±1060 Emerging growers ±60 ±30 ±110 ±70 ±270 12

13 Priorities for development Revitalisation of primary agriculture and agroprocessing to contribute to the provincial industrialisation Revitalisation of agricultural colleges to contribute to the sector s skills base Household food production support to sustain provincial food security levels Intensify research and technology development to mitigate effects of climate change on production

14 Revitalising agriculture and agro-processing value-chain (RAAVC) Limpopo Province is producing a variety of agricultural commodities, some have been identified for high growth potential and labour intensity, such as fruit (subtropical fruit & citrus), nuts (macadamia) and vegetables, which have been identified as catalyst for industries cluster value chain development. The Province is leading nationally in the production of some of these commodities, namely, citrus, avocado, mango, tomato and a second producer of macadamia nuts. Despite leading in these commodities, current levels of primary agricultural output is insufficient to provide inputs into a large scale and thriving food processing sector. A need for sustainable support programmes that should contribute towards the sector s growth, food security and employment creation. 14

15 Identified potential for production expansion (ten year period, commencing 2018/19) Commodity Potential Avocado Macadamia nuts Mango Citrus Expansion of avocado production around Tzaneen and Levubu areas, targeting 1000ha New establishment around Makhado and Thulamela and targeting 1000ha Expansion of high value varieties for dry mangoes, targeting 1000ha in Vhembe and Mopani 600ha in Mopani & revitalisation of orchards in Waterberg Vegetables Grains 1000ha across the province Targeting hectares in Sekhukhune and parts of Capricorn, also linked to animal feed production for red and white meat clusters development 15

16 Revitalisation objectives Primary production expansion to support upstream and down stream value chain activities Market Infrastructure Development, SAGAP and Global GAP Standards certification, to improve domestic and export market access agro-processing support for product beneficiation and addressing post harvest losses, thus improved income and job opportunities Exploring sound business operating models for community owned enterprises Development of bankable business plans to attract private funding 16

17 Partnerships MOUs in place with the following sector partners Sub-tropical fruit Citrus Growers Association Tomato Growers Association Perishable Products Export Certification Board (PPECB) Agricultural Research Council (ARC) Landbank Progress Milling Mentorship and market agreement at farmer level with Potato SA Mentorship at farmer level with established commercial farmers/entities Collaboration with sector departments 17

18 Readiness for 2018/19 planting season 18

19 2018/19 plan hectares to be under production for the financial year 2018/19 (2018/19 APP). Target communal land under traditional authorities as well as land reform projects. Mechanization support services through government tractors, augmented by private tractors services. Production inputs, which include: seeds, seedlings and fertilisers for irrigated lands and seeds and fertilizers for rainfed lands. 19

20 Overall Readiness (2018/2019) Districts Targeted Hectares Beneficiaries Seeds Ordered (Tons) Fertilizers Ordered (Tons) Mechanization Units (Tractors) Overall Readiness Rating Pesticides (Litres) Business Plan Hectares Capricorn % Mopani % Sekhukhune % Vhembe % Waterberg % Total %

21 Hectares planned for 2018/19 FY A total of hectares are targeted, as reflected in the 2018/19 Annual Performance Plan and Ilima-Letsema Business Plan. Hectares planned are for both subsistence, smallholder and commercial farmers. Planned hectares are broken per districts in the table below: Districts Estimated area to be supported (Ha) Estimated number of beneficiaries Capricorn Mopani Sekhukhune Vhembe Waterberg Total

22 Breakdown of Ha under Traditional Authorities and Land Reform (2018/2019) Districts Targeted Hectares Ha under Traditional Authorities Ha under Land Reform Capricorn Mopani Sekhukhune Vhembe Waterberg Total

23 PLANNED HECTARES PER COMMODITIES COMMODITY HACTARES FRUIT 584 VEGETABLES WINE GRAPE COWPEAS MAIZE WHEAT GROUNDNUTS SORGHUM 900 SOYABEANS 30 BEANS 849 FODDER COTTON 20 SUNFLOWER 880 CHICORY SUGARCANE FORESTRY CASTOR TOTAL

24 Breakdown of beneficiaries in terms of women, youth, and disability District Women Youth (Female) Youth (Male ) Disabled Males Total Capricorn Mopani Sekhukhune Vhembe Waterberg Total

25 Mechanisation plans Mechanisation support is through Government tractor fleet, augmented by privately owned tractor services. The table below gives a breakdown of hectares to be ploughed with government fleet, as per the condition of the tractors: District No of tractors Estimated ha ploughed and planted Estimated beneficiaries Capricorn Mopani Sekhukhune Vhembe Waterberg Total Privately owned Mechanization already contracted in 2018/19 FY District No of Private tractor Estimated ha ploughed Estimated beneficiaries services contracted and planted Capricorn Mopani Sekhukhune Vhembe Waterberg Total

26 State of government tractors The status of the 72 tractors is indicated in the table below. District Number tractors Tractors to be repaired Capricorn 14 7 Mopani Sekhukhune 18 2 Status 7 tractors are confirmed to be functional Tractor drivers to be appointed mid Sep tractors are booked for repairs at Landini in Bela Bela. They will be taken by 07 th Sep 2018 All tractors to be serviced. A process to appoint a service provider will be concluded by Tractor will be taken in by 16 tractors are confirmed to be operational. 2 Tractors to be fixed by end of September.2018 Vhembe in good working conditions. Waterberg 10 3 TOTAL to be fixed by end of September 7 Tractors are ready for work A process to fix the 3 is underway and will be concluded mid September Repairs to be completed by first week of October 26

27 Production inputs - Fruit & vegetable commodities Approximately banana seedlings for Tshikonelo and Matsika (expansion) projects in Vhembe delivery expected in October Planting will be up to March avocado seedlings for Letaba project in Mopani - delivery expected in November Planting will be up to March tomato seedlings delivered for Giyani, Ba- Phalaborwa and Maruleng projects chillies seedlings delivered for Letaba, Tzaneen and Giyani projects pepper seedlings delivered for Giyani projects Procurement underway for other districts 27

28 Deliveries at Greater Tzaneen municipality 28

29 Matsika Development Matsika Irrigation Scheme Development of 90ha micro-jet irrigation system First phase of 50ha banana planted, first harvest this year. For 2018/19, of banana seedlings purchased and delivered to cover the remaining hectares. 29

30 Matsika Irrigation scheme Banana Development 30

31 Tshikonelo Development Tshikonelo Irrigation Scheme Installation of irrigation system for 77ha Infrastructure has been completed end of 2017/ banana seedlings have been purchased, will be planted this season. 31

32 Fruit & vegetables commodities 450kg butternut seeds for Nwanedi and Ba-phalaborwa projects 50 tons potato seeds for potato development in Capricorn have been ordered, awaiting delivery by September tomato seedlings for Capricorn awaiting delivery during September

33 Potato development Nkukeng Project Installation of 7ha towable Centre Pivot Irrigation system has been completed in June The preparation of land for planting has been completed during August 2018 Potato seeds (37.5 tons) have been procured and delivery is expected by September

34 Cont Moletji Farming Equipping of two boreholes and Construction of litres reservoir The infrastructure has been completed in May Preparation of land for planting has been completed Potato seeds of 12,5tons have been purchased for planting season 34

35 Tlou-Farming Cont.. The repair of existing 20ha centre pivot has been completed in August Potato seeds purchased for planting season. Delivery is expected in by September

36 Nwanedi development Nwanedi Project Development drip irrigation for 50 farmers and installation of a pump house Completed during May May 2018 and is operational. 200 kg Okra and 372kg butternut seeds purchased and delivered 36

37 Fruit trees planting as part of Arbor week programme Provincial commemoration is planned for 11 September 2018,in Collins Chabane Local Municipality fruit trees have been procured, for household planting 2 fruit trees per household, targeting 500 households in the Municipality Other trees will be planted at the schools as part of promoting JuniorCare. 37

38 Drought resistant seeds purchased and Seed Variety Quantity procured Amount utilised Maize seed (PAN 6479) kg R Maize seed WEMA kg R Maize seed DKC kg R Maize seed DKC kg R kg R

39 Breakdown of Letsema overall budget per farmer category Commodity Subsistence Smallholder Commercial TOTAL Amount No Amount No Amount No Amount No Vegetables R R R R Maize R R R R Sorghum R R Sunflower R R R Poultry R R R R Livestock meat) Cotton Production (Red R R R R R R R R Fruit Production R R R R Fish production R R Bee production R R Small stock production R R R R Food Security R R R R Govt. tractor fleet Fetsa Tlala mechanisation Vulnerability Assessment R R R Total R R R R

40 Backyard food production support 2018/19, per district and local municipalities District Municipalities Capricorn Blouberg Molemole Lepelle Nkumpi Polokwane Total Supported to date Targeted Beneficiaries Greater Mopani Baphalaborwa Greater Giyani Greater Letaba Tzaneen Maruleng Targeted Beneficiaries Makhuduthamag Sekhukhune Elias Motsoaledi Ephraim Mogale a Tubatse Targeted Beneficiaries Vhembe Collins Chabane Makhado Musina Thulamela Targeted Beneficiaries 300 (89) Waterberg Bela Bela Modimolle Mogalakwena Lephalale Thabazimbi Targeted Beneficiaries Grand total

41 Backyard food production support 2018/19 cont.. Production input support for 2018/19, is in the form of: Seeds Seedlings Compost Day old chicks and feed 41

42 Towards 100% readiness by October 2018 Activity Delivery of vegetable seeds & seedlings, fertilisers Delivery of fruit tree seedlings Servicing of remaining government tractors Delivery of remaining fertilisers Delivery of pesticides Time frame September 2018 October 2018 September 2018 October 2018 October

43 Private tractor services One year contracts, ending December 2018 Inspections will commence early September 2018 to confirm the status and condition of the tractors Procurement process for new contracts will commence in September

44 District Jobs (Private Tractor Operators) Estimated Temporary Jobs to be created during planting season (Private Tractor Operators) Total Female Youth (M) Youth (F) Disabled Male Capricorn Mopani Sekhukhune Vhembe Waterberg Total

45 District Jobs (Government Tractors) Estimated Temporary Jobs to be created during planting season (Government Tractors) Total Female Youth (M) Youth (F) Disabled Male Capricorn Mopani Sekhukhune Vhembe Waterberg Total

46 District Estimated Jobs during harvesting Estimated Temporary Jobs to be created during harvesting Total Female Youth (M) Youth (F) Disabled Male Capricorn Mopani Sekhukhune Vhembe Waterberg Total

47 Planned market for the produce after harvest Fresh produce marketed through the following: Local Supermarkets and Retail stores Johannesburg and Tshwane fresh produce markets Export market citrus, avocado Farm gate (Hawkers) Processors Tiger brand Millers (Progress milling, NTK, Obaro) for grains and dry beans 15 projects will be audited this financial on market standards compliance GAP standards, as part of market readiness support 47

48 Risks Potential risks and mitigation strategies Mitigation Strategies 1. Unpredictable weather conditions Regular weather advisories disseminated to producers Use of adaptable breeds and drought tolerant varieties Continuous social mobilisation, towards 3. Conflicts amongst beneficiaries 4. Inability by Contractors to render services and deliver inputs as per required specifications 5. Increasing demand for support and services vs available resources functional projects. Constant engagement with Service Providers to seek solutions on an ongoing basis. Exploring of alternative producer support models and increasing partnerships with business and social partners 48

49 Progress on the implementation of plans to address issues raised during the last Portfolio committee oversight visit 49

50 Phetwane aquaculture project Fish production is in progress On the crop production side, the project received cofunding of R1.14m funding from the Department of Rural Development and Land Reform, and purchased a Tractor, Booms-prayer, Disc harrow, planter and plough LDARD supplied seeds and fertilizers Two beneficiaries have participated in the Aquaculture management in China in June

51 Other aquaculture production support Product development & market Close to fingerlings been distributed to aquaculture projects in Sekhukhune and Vhembe. Hereford harvesting started this past winter As part of capacity building, two beneficiaries participated in the aquaculture management programme in China in June 2017 Construction of fish processing facility at Tompi Seleka is in progress. Delivery of the processing equipment is expected in the 3rd quarter The facility aims to improve the post-harvest handling in order to meet the market requirements as well as food safety standards 51

52 Electricity challenges faced by small farmers in terms of huge Eskom bills Subsequently, Eskom was engaged to try find the root cause for higher than expected electricity bills. According to Eskom, farmers mostly opt for bigger transformers without actually understanding their energy needs. The Department, in collaboration with Eskom started a programme to raise awareness on the usage. This includes amongst other things Eskom being given a slot at every departmental session or event that involve the farmers. Workshops were also held with officials who in turn are expected to advise the farmers 52

53 Cont Key message is how farmers should apply for electricity according to their needs and how to schedule their irrigation accordingly in line with Eskom s scheduled hours for lower consumption rates A list of affected farmers has been submitted to Eskom regional office so the matter could be dealt with on case by case basis 53

54 Reasons for a reduction in Fetsa Tlala hectares Fetsa Tlala programme in Limpopo has been focused largely on dry land production, targeting communal land under traditional authorities The province had not seen a significant improvement from the dry spell of 2014/15 and subsequent severe drought of 2015/16, compounded by extreme heatwaves. With regard to irrigated production, Limpopo farming community is responsible for 72% of allocated water with different assurance of supply in different Catchment Management Areas. Due to this drought condition, the dam levels within the Province were very low, owing also to low river flow that was experienced by the entire country. 54

55 Cont As a result, the Department of Water and Sanitation issued a Government Gazette on 16 September 2016 restricting the water usage. Based on this restrictions and the drought experienced in the past ploughing seasons the Department had to review target for Fetsa Tlala hectares to more reasonable and realistic target. The support was redirected towards relief for livestock farmers in terms of livestock feed and exploration of additional water sources For the current year (2018/19) the department planned to plough Ha as compared to planned for (2017/18). 55

56 Tompi Seleka oil refinery project Refinery of sunflower into edible oil The challenge was to get correct designs for the edible oil equipment The specifications have now been completed and the TORs have been approved for the advertisement of a tender. The tender will be advertised this month Operationalization of the Lebowakgomo poultry abattoir The operator has been appointed in June 2018, after the three attempts could not matarialise Discussions are progressing well with the Limpopo Economic Development Agency (LEDA) on the operating model that would see the poultry producers and abattoir workers acquiring shares in the business. The operation is scheduled to commence in December

57 THANK YOU