TRANSFORMATION PROJECTS 2010/2011. The Transformation report covers the following projects that were approved for the 2010/2011 financial year:

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1 TRANSFORMATION PROJECTS 2010/2011 The Transformation report covers the following projects that were approved for the 2010/2011 financial year: 1. Enterprise Development 2. Small Grower Development Programme 3. Tertiary Skills Pipeline 4. Baseline Study 5. Farm Based Training 1. ENTERPRISE DEVELOPMENT REPORT 2010/2011 BUDGET: R SPENT: R Potatoes SA allocated R towards Enterprise Development projects. This was aimed at assisting in setting up, supporting and growing viable new Black owned potato producing enterprises. The following 7 farmers were selected to participate in the programme: 1. Siseko Vikilahle: Eastern Cape 2. Vuyani Kama: Eastern Cape 3. Jeff Kola: Free State 4. David Phike: Free State ( Assisted with a washer and sorter) 5. Lucky Khumalo: KwaZulu-Natal 6. Zama Goba: KwaZulu-Natal 7. Phophi Raletjena: Limpopo PROGRESS REPORT 1. Siseko Vikilahle: Eastern Cape Number of hectares: 4 Cultivar Planted: Seed Supplier: Mentor: Avalanche Vuyani Kama Kleinboet Van Zyl

2 Siseko received support for four hectares of seed from PSA. He has already harvested and sold three hectares of good quality potatoes to the hawkers and to the Kei fresh produce market. He is also receiving mentorship support from Kleinboet van Zyl. Siseko wants to extend his production to 10 hectares in the coming season but still faces the challenge of having to hire a potato planter and lifter as he does not have his own. He also has to sell unwashed potatoes to consumers, which then impacts negatively on his asking price. 2. Vuyani Kama: Eastern Cape Number of hectares: 3 Cultivar Planted: Seed Supplier: Mentor: Avalanche Gary Vorster Gary Vorster Vuyani Kama s main aim is to become a commercial crop farmer producing seed potato. PSA supplied him with Avalanche seed for three hectares in He is getting support in the form of mentorship from a nearby potato producer, Gary Vorster. Vuyani is the first enterprise development farmer to plant seed potatoes in South Africa. He obtained an average of 35 tons/ha on seed potatoes bags of generation 4 were certified as seed potatoes. This year, Vuyani is planning to increase his plantation to five hectares of seed potatoes. Some of the challenges that this farmer faces is that he needs to rely on hiring the potato washer and sorting machine to sell washed potatoes. His recent crop was also downgraded due to a high level of viruses. 3. Jeff Kola: Free State Number of hectares: 3 Cultivar Planted: Seed Supplier: Technical Support: Mondial WVS Free State Regional Office Jeff Kola is a farmer in Ladybrand in the Free State and owns 347 hectares of land. His main aim is to produce potatoes commercially on a 180 ha piece of land and to use the rest for mixed farming (soya, maize, beans, and beef production). Jeff Kola has received assistance from PSA to plant five hectares of potatoes. He has harvested an average of 17 tons/ha

3 under dry land production. He sells his produce to hawkers and Maseru wholesalers. He has been receiving support from the PSA regional office. 4. Lucky Khumalo: KZN Number of hectares: 3 Cultivar Planted: Seed Supplier: Technical Support: Mondial WVS KZN Regional Office Lucky has received support for three hectares of Mondial seed from PSA and he is also receiving technical support from PSA. His crop was affected by floods but as a committed farmer, he has not allowed this get him down. PSA will still assist him with seed for three hectares in the coming season and hopefully the conditions will be favourable this time around. 5. Zama Goba Number of hectares: 4 Cultivar Planted: Seed Supplier: Technical Support: Mondial WVS KZN Regional Office Zama Goba is a farmer in Ixopo in KwaZulu Natal and holds a 10 year lease for 60 hectares of arable land. He is aiming to increase his potato production to 20 hectares. Zama, who farms with his wife, Nosipho, has already benefited from the trial demonstration plots that are conducted by PSA. There was a delay in delivering the seed and Zama only planted in July Phophi Raletjena: Limpopo Number of hectares: 10 Cultivar Planted: Mondial

4 Seed Supplier: Mentor: ANSA Awuke Jongbloed Phophi aims to expand his farming business by commercially producing potatoes. PSA has assisted him with funds for 10 hectares of seed. Phophi planted in June and he is receiving mentorship support from Awuke Jongbloed.

5 2. SMALL POTATO GROWER DEVELOPMENT REPORT 2010/2011 Budget: R Spent: R Previously called Socio Economic Development, the Small Potato Grower Development involves farmers who plant potatoes mainly for food security with the remaining crop sold to the immediate community. The aim is to give farmers practical training on good potato production, harvesting and marketing. This is done through the planting of demonstration trials in the different identified areas. The Transformation department and regional services were involved in the following projects: 2.1 Sub district: Wartburg Project name: Mnduna Project Planting date: 24 August 2010 Extension Officer: Lamulile Harvesting date: 21 January 2011 Cultivar/Variety: Yield: Mnandi 34 ton/ha Information days were held during planting and harvesting where and captured on video. Potatoes were sold to local hawkers. This project experienced challenges as a result of a newly appointed extension officer who is not very knowledgeable about potato production. 2.2 Sub-district: Highflats Project name: Balnahard Farm Planting date: 16 August 2010 Extension officer: Smangele Zulu Harvesting date: 27 January 2011 Cultivar: Mnandi and Up-to-date

6 Yield: 40 ton/ha and 59 ton ton/ha Information days were held during planting and harvesting where videos were captured. Potatoes were sold to retailers and local hawkers. This area has shown good results if compared to other areas. One of the beneficiaries is now being supported by PSA under the Enterprise Development Programme. 2.3 Sub-district: Harding Project name: Mbono Irrigation Planting date: 18 August 2010 Extension officer: Zandile Shozi Harvesting date: 28 January 2011 Cultivar: Yield: Mnandi 45 ton/ha Information days were held during planting and harvesting where videos were captured. Potatoes were sold to retailers and local hawkers. The challenge that this project has is access to land to enable it to farm on a larger scale. 2.4 Sub-district: Tugela Ferry Project name: DOA irrigation Scheme Planting date: 17 August 2010 Extension officer: Lungile Date Harvested: January 2011 Cultivar: Yield: Mnandi 15 ton/ha An information day was held during planting.

7 2.5 WINTER PROJECTS Sub district: Umzumbe Project name: Umzumbe Planting date: 13 April 2011 Extension Officer: Tilose Ntuli Harvesting date: 10 August 2011 Cultivar: Yield: Mondial 33 ton/ha Information day was held during planting and harvesting and videos were captured. Potatoes harvested were sold to local hawkers. What is noticeable in this project is a great improvement of the yield as compared to the previous year. The challenge experienced in this project is that most farmers rely on the government tractor for land preparation which is unreliable at times Sub district: Mtubatuba Project name: Mtubatuba Planting date: 14 April 2011 Extension Officer: Lamulile Harvesting date: 11 August 2011 Cultivar: Yield: Mondial 23 ton/ha An information day was held during planting and harvesting and videos were captured. Potatoes were sold to local hawkers. 2.6 SCHOOL PROJECT Objectives: To teach school children principles of potato production To introduce agriculture as a career opportunity

8 Planting Date: 13 August 2010 Cultivar: SIFRA The potatoes harvested were sold to the local community.

9 3. TERTIARY SKILLS PIPELINE Budget: Spent: Goals of the Tertiary Skills Pipeline To develop the technical capacity for the farming enterprise by offering bursaries to deserving students To develop students from the farming enterprise to acquire technical tertiary education so that they can add value to the farming enterprises To further enhance their skills through internships and workplace experience programmes To provide internship training opportunities primarily for bursars in relevant study disciplines requiring practical training and exposure as part of their qualification condition To provide Workplace Experience training opportunities primarily for bursars in relevant study disciplines requiring workplace experience to enhance the employment opportunities Outcomes: Development of young talent through tertiary education that build on the sustainability of the business Exposure to the potato value chain Candidates making informed decisions about their career choices based on exposure and experience Bursaries 2010/2011 During the 2010/2011 financial year, Potatoes SA assisted students at the following institutions: Fort Hare: 1 student

10 Glen College: 2 Students Lowveld College: 2 Students Elsenburg College: 3 Students Cedara College: 2 Students Potchefstroom College: 1 Student Midrand Institute: 1 Student Internship Programme 2010/2011 The following students were placed on an internship programme: Temboer Cameroon: Glen College Alexander Mary-Anne: Oppermans Bapela Mogau: PSP Elisa Mult: SAND Elzette Booysen: Morester Vusi Ngcobo: WVS Workplace Experience 2010/2011 Desire Balie: SAND

11 4. Baseline Study Potatoes SA appointed ECI Africa Consulting to undertake a baseline survey of potato producers in order to determine the status of the potato sub-sector with respect to Black Economic Empowerment. ECI Africa conducted the survey in the form of interviews and the interview guide was developed to determine benchmarks against the seven Black Economic Empowerment charter elements namely; ownership, employment equity, skills development, preferential procurement, enterprise development, rural and poverty alleviation. The data collected was grouped into three categories, namely legal entity and turnover categories, production data of the potato production activities and data relevant to black economic empowerment status of the interviewed producer. The result indicated that there is little transformation taking place within the subsector due to little understanding of the AgriBEE Charter and hence the lack of implementation. The survey identified four major constraints, namely: A lack of qualified and experienced BEE management personnel across the board; Lack of competent and competitive BEE partners with access to funding; Difficulty of obtaining the BEE status of suppliers; and Lack of support and guidance and guidance from government/ regulatory bodies to individual enterprises. The survey further indicated that the overall picture with regards to performance on the scorecard elements is a negative one and there are generally poor perfomances or compliance in all the elements, namely: Low scores for ownership Management control scores very low Employment equity scores are very low The scoring for skills development is varied Scoring for preferential procurement is low The scoring for enterprise development could be high if off farm BEE joint ventures are scored under this element and If the cost of providing the socio-economic support is quantified, the score for rural development, poverty alleviation and CSI will most likely meet the targets set out in the AgriBEE charter.

12 RECOMMENDATIONS The following recommendations were made to address the main constraints identified during the study and should be included in the strategy going forward: Support to potato producers to be knowledgeable on the AgriBEE Charter and to implement initiatives towards attaining the Charter targets; Consider the creation of a skills development curriculum with study materials focusing on the business aspects of farming, black economic empowerment and land reform issues for the use by potato producers in the skills development of employees. Engage with the public sector to highlight successes and constraints and specifically to indicate what the current realistic compliance in agriculture are; Implement a strategy to actively address the four major constraints, namely: Lack of qualified and experienced BEE management Lack of BEE partners with access to BEE funding Difficulty in obtaining the BEE status of suppliers Lack of support and guidance from Government and regulatory bodies