HORTICULTURE SUB-SECTOR SKILLS PLAN Prepared on behalf of the Sector by AgriSETA

Transcription

1 HORTICULTURE SUB-SECTOR SKILLS PLAN Prepared on behalf of the Sector by AgriSETA April 2018

2 ABBREVIATIONS AND ACRONYMS ABBREVIATION/ACRONYM AFASA AFSTA AGOA AgriSETA APAP ARC ATI ATR BMI CoS DAFF DHET DRDLR DTI FETMIS GDP GMO HEMIS HTFVs HSRC ICAC IDGP IDP IPAP IRR ISF DESCRIPTION African Farmers Association of South Africa African Horticulture Trade Association African Growth and Opportunity Act Agricultural Sector Education and Training Authority Agricultural Policy Action Plan Agriculture Research Council Agricultural Training Institute Annual Training Report Business Monitor International Centres of Specialization 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 Genetically Modified Organisms Higher Education Management Information System Hard-to-fill vacancies Human Sciences Research Council International Cotton Advisory Committee Integrated Growth and Development Plan Integrated Development Plan Industrial Policy Action Plan Institute of Race Relations International Horticulture Forum

3 KZN LED MAFISA NAFU NAMC NDP NGP NEETS NPO NQF NSDS III NSFAS NWGA OSTA QLFS QCTO RPL SACAU SADC SAIVCET SAQA SARS SASA SDA SIP SIC SSP SIZA StatsSA TBC TVET KwaZulu-Natal Local Economic Development Micro Agricultural Financial Institution of South Africa National African Farmers Union National Agricultural Marketing Council National Development Plan New Growth Path Not in Employment, Education or Training Non-Profit Organization National Qualifications Framework National Skills Development Strategy III National Student Financial Aid Scheme National Wool Growers Association Official Horticulture Testing Laboratory Quarterly Labour Force Survey Quality Council for Trades and Occupations Recognition of Prior Learning Southern African Confederation of Agricultural Unions Southern African Development Community South African Institute for Vocational and Continuing Education and Training South African Qualifications Authority South African Revenue Service South African Horticulture Association Skills Development Act Strategic Integrated Project Standard Industrial Classification Sector Skills Plan Sustainability Initiative of South Africa Statistics South Africa To be confirmed Technical Vocational Education and Training ii

4 WSP WTO Workplace Skills Plan World Trade Organization iii

5 TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS... i TABLE OF CONTENTS... iv LIST OF TABLES AND FIGURES... vi EXECUTIVE SUMMARY... vii CHAPTER 1: SECTOR PROFILE... 1 INTRODUCTION SCOPE OF COVERAGE KEY ROLE PLAYERS ECONOMIC PERFORMANCE EMPLOYER PROFILE LABOUR MARKET PROFILE CONCLUSION CHAPTER 2: KEY SKILLS ISSUES INTRODUCTION CHANGE DRIVERS ALIGNMENT WITH NATIONAL STRATEGIES AND PLANS IMPLICATIONS FOR SKILLS PLANNING CONCLUSION CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS INTRODUCTION OCCUPATONAL SHORTAGES AND SKILLS GAPS EXTENT AND NATURE OF SUPPLY PIVOTAL LIST CONCLUSION CHAPTER 4: SECTOR PARTNERSHIPS INTRODUCTION EXISTING PARTNERSHIPS EMERGING PARTNERSHIPS CONCLUSION CHAPTER 5: SKILLS PRIORITY ACTIONS iv

6 INTRODUCTION KEY FINDINGS CONCLUSION AND RECOMMENDED ACTIONS BIBLIOGRAPHY v

7 LIST OF TABLES AND FIGURES FIGURES FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR... 3 FIGURE 2: SKILLS DEVELOPMENT LEVIES... 3 FIGURE 3: GROSS FARMING SECTOR INCOME... 6 FIGURE 4: PROVINCIAL DISTRIBUTION OF HORTICULTURE EMPLOYERS REGISTERED WITH AGRISETA.8 FIGURE 5: PROVINCIAL BREAKDOWN HORTICULTURE EMPLOYEES FIGURE 6: GENDER BREAKDOWN FIGURE 7: EMPLOYEES BY RACE FIGURE 8: EMPLOYMENT BREAKDOWN WITHIN THE HORTICULTURE SUBSECTOR FIGURE 9: UNIVERSITIES THROUGHPUT FOR AGRICULTURAL STUDENTS GRADUATING IN FIGURE 10: NUMBER OF POST-SCHOOL GRADUATES IN AGRICULTURAL SECTOR TABLES TABLE 1: RESEARCH PROCESS AND METHODS... viii TABLE 2: ACTIVITIES WITHIN THE HORTICULTURE SUBSECTOR BY SIC CODE... 2 TABLE 3: KEY AGRICULTURAL ROLE-PLAYERS... 4 TABLE 4: GROSS INCOME FROM MAJOR HORTICULTURE PRODUCTS... 6 TABLE 5: DISTRIBUTION ON EMPLOYEES BY PROVINVE IN AGRICULTURE, 2016/ TABLE 6: CHANGE DRIVERS TABLE 7: SMALL EMERGING FARMERS AND CO-OPERATIVES HTFV TABLE 8: COMMERCIAL FARMERS HTFVS TABLE 9: TOP HTFVS (STAKEHOLDER ENGAGEMENT) Table 10: TOP EMERGING SUBSECTOR SKILLS AND FUTURE OCCUPATIONAL SHORTAGES TABLE 11: SCARCE SKILLS AND SKILLS GAPS LIST TABLE 12: EMPLOYEES TRAINED BY OCCUPATIONAL CATEGORY AND GENDER TABLE 13: THE AGRISETA 2018/19 PIVOTAL LIST TABLE 14: AGRISETA PARTNERSHIPS TABLE 15: SKILLS PRIORITIES vi

8 EXECUTIVE SUMMARY In 2016/17, there was a total of 5263 Horticulture subsector entities registered with the South African Revenue Services (SARS), contributing 25% of total entities in the agricultural sector. Of these 5263 entities the figure below illustrates that 44% of them contribute to the skills development levy. A total of R142 million SDL was generated from the Horticulture subsector, accounting for 32% of total agricultural revenue from SDL. According to the Industrial Policy Action Plan (IPAP 2), fruits and vegetables are significant commodities in the agro-processing sector; both are high-value crops and have large labour multipliers. The main fruits produces in South Africa include grapes. Oranges, lemons, apples, avocados and mangoes. While major vegetable markets include potatoes, tomatoes, onions and cabbages (National Agricultural Marketing Council, 2012). The gross farming income from all agricultural products increased by 12.7% in 2016, this was a result of the increase in gross income from Horticulture products, which increased by 20.9%, from R million in 2015 to R million in The graph below outlines the gross value contribution of agricultural production from 2012 to Overall, Horticulture products contributed 30% to gross value of agricultural production in 2016 (DAFF, 2016). Overall the Horticulture subsector contributes significantly to the agricultural sector in South Africa. Horticulture is produced throughout the country, with the main regions including the Western Cape, KwaZulu-Natal and Limpopo. Of the total registered entities with AgriSETA, 25% are from the Horticulture subsector. And 44% of these entities contribute to the Skills Development levy. An analysis of data from the subsector shows that the majority of people employed in the subsector are in Elementary occupations. External stakeholder engagements identified changing Technology and Mechanization of the subsector; Land Reform; Youth bulge and Skills Development; and Climate Change and Drought as the key change drivers currently affecting the subsector. vii

9 RESEARCH TOPICS Labour Market Profile and Economic Contribution TABLE 1: RESEARCH PROCESS AND METHODS OBJECTIVES RESEARCH OF THE STUDY METHODS Provide an overview of the subsector and economic contribution Qualitative and quantitative method NATURE OF THE STUDY Analysis of most recent information on the sector SAMPLE SIZE 350 registered Horticulture industry stakeholders DATA COLLECTION TOOLS Desktop research (secondary) 2016/17 WSP/ATR data (primary) TIMEFRAME OF THE STUDY September November 2017 RESEARCH OUTPUTS Chapter 1: Sector Profile Occupational shortages & emerging skills needs Skills issues & demands Establish occupational shortages & emerging skills needs of the Horticulture subsector Identify the key occupational shortages, demands & supply with regard to unskilled, skilled, generic Horticulture subsector occupations and emerging skills needs in the agricultural sector Qualitative method Quantitative method Nonprobability sampling method was employed to identify stakeholders from whom specific information was required Gathering empirical evidence using primary data sources, as well as undertaking theoretical, desktop research using secondary data sources 350 registered Horticulture industry stakeholders 5% were cooperative farmers, 11% were small and emerging farmers and 84% were commercial farmers 350 registered Horticulture industry stakeholders 2016/17 Huge file data (primary) Key informant interviews (primary) Desktop data analysis (secondary) 2016/17 WSP/ATR Data (primary The quantitative survey gathered data on the unskilled, skilled and generic occupational shortages & skills gaps 2016/17 WSP/ATR Data (primary) Key informant interviews (primary) September November 2017 September November 2017 Chapter 2: Key Skills Issues Chapter 4: Sector Partnerships Chapter 5: Skills Priority Actions Chapter 2: Key Skills Issues Chapter 3: Occupational Shortages and Skills Gaps Desktop data analysis (secondary) viii

10 1. DOCUMENT REVIEW A document review was conducted to establish the economic performance and trends of the Horticulture 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 synthesize the key economic, policy and training issues affecting the Horticulture subsector, and to identify key skills issues. 2. SCARCE AND PIVOTAL LIST FORMULATION The scarce skills, skills gaps and pivotal skills lists were arrived at through both secondary data analysis and the numbers made available in previous Sector Skills Plans, large and small workplace skills plans (WSPs), large and small annual training reports, (ATRs), and primary data analysis obtained at the two-day AgriSETA stakeholder conference (30-31 August 2017), interviews and data collection. 3. SUMMARY OF KEY FINDINGS In summary, the economic outlook of the sectors dependent on Horticulture supply is stable and for some produce there is a marginal growing trend (ARC, September 2017). Overall the Horticulture subsector contributes significantly to the agricultural sector in South Africa. Horticulture is produced throughout the country, with the main regions including the Western Cape, KwaZulu-Natal and Limpopo. Of the total registered entities with AgriSETA, 25% are from the Horticulture subsector. And 44% of these entities contribute to the Skills Development levy. An analysis of data from the subsector shows that the majority of people employed in the subsector are in Elementary occupations. ix

11 CHAPTER 1: SECTOR PROFILE INTRODUCTION Chapter 1 of this report provides an overview of the agricultural sector, paying particular attention to the Horticulture subsector in South Africa. The first section of this chapter looks at the scope of the Horticulture subsector s coverage. Followed by the second section, which outlines AgriSETA stakeholders and key roleplayers in the sector. The third section looks at the economic performance of the overall agricultural sector, zooming into the contribution of the Horticulture industry to the South African economy. The fourth section explores the employer profile, based on the AgriSETA WSP/ATR data submitted for 2016/17. Finally, the last section provides a labour market profile where the number and demographics of people employed in the sector is explored. Essentially, chapter one of this document is intended to set the scene for the skills issues delved into in the subsequent chapters. 1.2 SCOPE OF COVERAGE The scope of AgriSETA covers the agricultural sector, from input services to the farm, activities on the farm and first level processing activities from the farm. The Horticulture subsector is classified into nine (9) agricultural and economic focuses, namely, the growing of vegetables, horticulture specialties and nursery products; Ornamental Horticulture; 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 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 coconuts, cocoa, nuts, olives, dates, etc.; and service to nut 1

12 farmers and companies. The table below outlines the various agricultural and economic focus areas in the Horticulture subsector, including the Standard Industrial Classification (SIC) codes and descriptions. TABLE 2: ACTIVITIES WITHIN THE HORTICULTURE SUBSECTOR BY SIC CODE SUBSECTOR SIC CODE SIC DESCRIPTION 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. HORTICULTURE 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 Source: AgriSETA, 2016 Overall, the agricultural sector comprises of 11 subsector committees, which represent their industry interest to AgriSETA. These include: 1) Red meat; 2) Horticulture; 3) Grains and Cereals; 4) Fibre; 5) Aquaculture; 6) Poultry; 7) Milling, Pet food, and Animal feed; 8) Pest control; 9) Seed; 10) Sugar; and 11) Tobacco. The Horticulture subsector constitutes 24% of the overall distribution of entities represented by AgriSETA. The graph below outlines the relative size of membership number by subsectors, as captured in the AgriSETA member database of

13 NUMBER 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%) Source: AgriSETA member database, Revenue from Skills Development Levies In 2016/17, there was a total of 5263 Horticulture subsector entities registered with the South African Revenue Services (SARS), contributing 25% of total entities in the agricultural sector. Of these 5263 entities the figure below illustrates that 44% of them contribute to the skills development levy. A total of R142 million SDL was generated from the Horticulture subsector, accounting for 32% of total agricultural revenue from SDL. FIGURE 2: SKILLS DEVELOPMENT LEVIES Levy-paying Non-levy paying Number Percentage 44% 56% Source: AgriSETA members database,

14 1.3 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 role-players according to their strategic contribution to the sector. Please note that while as comprehensive as possible, this list is not exhaustive. TABLE 3: KEY AGRICULTURAL ROLE-PLAYERS Strategic contribution Skills Development and Research Strategy and Policy Planning Rural Development and Land Reform 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 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 4

15 Strategic contribution Services Credit and assistance Union and Sector representatives Agribusiness Department or organisation Department of Water Affairs Department of Energy South African Police Service Land and Agricultural Development Bank of South Africa 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 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. Production to smallholder operators loans 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 favorable agribusiness environment Conglomerate organization 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 Overall, Agriculture contributes 2.4% to South Africa s gross domestic product (GDP) and 4.4% of total employment (IRR, 2016). Notwithstanding the relatively small share of the total GDP, primary agriculture is an important sector in the South African economy; the value of primary agricultural production in South Africa was R263 billion in 2016, while its contribution to the GDP was estimated at 72.2 billion in 2015 (DAFF, 2016). In addition, the sector plays an important role in job creation, especially in the more rural parts of the country. According to the Industrial Policy Action Plan (IPAP 2), fruits and vegetables are significant commodities in the agro-processing sector; both are high-value crops and have large labour multipliers. The main fruits produced in South Africa include grapes, oranges, lemons, apples, avocados and mangoes. While major vegetable markets include potatoes, tomatoes, onions and cabbages (National Agricultural Marketing Council, 2012). The gross farming income from all agricultural products increased by 12.7% in 2016, this was a result of the increase in gross income from Horticulture products, which increased by 20.9%, from R million in

16 to R million in The graph below outlines the gross value contribution of agricultural production from 2012 to Overall, Horticulture products contributed 30% to gross value of agricultural production in 2016 (DAFF, 2016). FIGURE 3: GROSS FARMING SECTOR INCOME Source: Economic Review of the South African Agriculture, DAFF, 2016 The table below illustrates the gross income from major Horticulture products in 2015 and As mentioned above, the gross income from Horticulture products increased by 20.9% in The data outlined below shows that income from vegetables increased by 33.5% from R million in 2015 to R million in 2016; deciduous fruit increased by 21.6% from R million to R million; citrus fruit increased by 19.8% from R million to R million in 2016; and subtropical fruit increased by 13.3% from R3 915 million to R4 434 million in TABLE 4: GROSS INCOME FROM MAJOR HORTICULTURE PRODUCTS HORTICULTURE R million Vegetables (including potatoes) Deciduous and other fruit Citrus Fruit Viticulture Subtropical fruit TOTAL Source: Crops and Markets, DAFF, 2016 With regards to Horticulture exports, in particular the fruit industry (owing to limitations in export data on vegetables industry), export produce generated R43.6 billion in The United Kingdom and Northern Europe remain the largest consumers of fruit produce, with the EU region accounting for 35% of South 6

17 Africa s total deciduous fruit exports, while the markets in the Middle East and Asia are increasingly becoming important contributors in more recent years (Bekker, 2017) Economic Outlook of the Sub-sector Overall the agribusiness sector in South Africa is vitally important to national wellbeing, employing about 30% of the working population in the country. The weak Rand, weather volatility and falling farm incomes are predicted to exert downward pressure on the market. However, in the longer term it is predicted that revenue in the sector will be boosted by growth of about 40% from food consumption due to the growth of the middle class and disposable income. Business Monitor International (BMI) estimates that annual food consumption revenue will reach over R609 billion in According to the Industrial Policy Action Plan (IPAP), South Africa possesses a competitive advantage in a number of fruit and beverage subsectors. Products from subsectors such as wines, indigenous Rooibos and Honeybush tea, and certain fruits are highly sought after in export markets. Additionally, while traditional fruit crops such as citrus, grapes and deciduous fruit account for the majority of value and volume of fruit exports, it is reported that new categories in the subsector are growing fast. Exports of subtropical fruit and tree nuts are increasing at a rapid rate, as middle-income consumers in developed markets are demanding more variety. An analysis of the fruit and vegetable market also revealed that over a five-year period up to 2019, the highest expected growth for the fruit and vegetable market will take place in Asia Pacific, with 6.4% year-on-year growth, followed by Europe with 4.4% and the US with 2.2% (Farmers Weekly, 2016). 1.2 EMPLOYER PROFILE The AgriSETA members data base includes some employers, (25%) of which are from the Horticulture subsector. The data shows that the majority of registered Horticulture entities (79%) are small (1-49 employees), followed by 13% medium ( employees) and 8% large entities (more than 149 employees). The provincial distribution of Horticulture 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 HORTICULTURE EMPLOYERS REGISTERED WITH AGRISETA Eastern Cape 8% Free State 2% Western Cape 50% Northern Cape 7% North West 1% Gauteng 10% KwaZulu-Natal 8% Limpopo 4% Mpumalanga 10% Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Source: AgriSETA members database, 2016 The figure above shows that the majority of Horticulture employers registered with AgriSETA are in the Western Cape (50%), followed by Gauteng (10%), and Mpumalanga (10%). The provinces with the least number of registered employers in the Horticulture subsector include: North West (1%) and Free State (2%). It is important to note that 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. 1.3 LABOUR MARKET PROFILE Provincial Distribution of Employees The South African Agricultural sector is one of the biggest employers in the country. In the first quarter of 2017, STATSSA reported that a total of people were employed in the sector, with the Western Cape (25%) accounting for the majority of employees in the sector, followed by Limpopo and Kwazulu- Natal, respectively accounting for 16% of employees. TABLE 5: DISTRIBUTION ON EMPLOYEES BY PROVINVE IN AGRICULTURE, 2016/2017 PROVINCE 2015/ /2017 Western Cape % % Eastern Cape % % 8

19 Northern Cape % % Free State % % KwaZulu-Natal % % North West % % Gauteng % % Mpumalanga % % Limpopo % % TOTAL % % Source: Statistics South Africa, Quarterly Labour Force Survey. 1 st Quarter 2017 With regards to Horticulture farming, the subsector products are produced throughout the country, however the three main regions include the Western Cape, Kwa-Zulu Natal and Limpopo. This is largely related to the characteristics of the regions which includes climate and type of products (Visser, 2012). These findings are consistent with the data received from the AgriSETA WSP (2016) depicted below. The figure below outlines the Horticulture employment distribution by provincial breakdown. Similar to the table above, data from the AgriSETA WSP submissions (2016) shows that the province with the highest proportion of both permanent and seasonal/temporary employees in the Horticulture subsector is concentrated in the Western Cape, which accounts for approximately 51% of employees in the subsector. This is followed by employees in Limpopo (14%) and Gauteng (9.7%). The provinces with least number of employees reported includes the North West and Free State which both account for 2% of permanent and temporary/seasonal employees in the subsector. 9

20 NUMBER FIGURE 5: PROVINCIAL BREAKDOWN HORTICULTURE EMPLOYEES Eastern Cape Free State Gauteng Kwa-Zulu Natal Limpopo Mpumalanga North West Northern Cape Percentage 8.4% 1.0% 9.7% 4.2% 14.4% 7.2% 1.3% 3.0% 50.7% Number Western Cape Source: AgriSETA WSP Submissions, Gender The graph below gives a breakdown of the Horticulture subsector by gender as reported in the WSP submissions (2016). It is pleasing to note that contrary to the national agricultural statistics, the data shows that there seems to be a relatively equal split between the genders, with males accounting for 53% of overall employment in the subsector, while females make up the other 47%. 10

21 FIGURE 6: GENDER BREAKDOWN Female 47% Male 53% Male Female Source: AgriSETA WSP Submissions, Race The WSP (2016) shows that the majority of employees in the subsector are African (71%), followed by Coloured employees (25%), and White employees (4%). Indian/Asian employees only represent less than 1% of people employed in the subsector. FIGURE 7: EMPLOYEES BY RACE Indian/Asian 0% White 4% Coloured 25% African Coloured Indian/Asian White African 71% Source: AgriSETA WSP Submissions,

22 1.6.4 Age The majority of people employed in the Horticulture subsector by employers submitting WSP are considered youth (less than 35 years old) which accounts for 49% of employees. This is followed by employees between 35 and 55 (46%), whilst 5% are above the age of 55. Thus, 95% of people employed in the subsector in 2016 are below the age of Occupational Categories The last section of chapter one looks at the existing skills levels in Horticulture enterprises as reported in the WSPs submitted for Skills vary from highly skilled managerial and professional occupations to relatively low level skilled elementary occupations. The figure below illustrates that the vast majority of people employed in the subsector occupy Elementary positions (64%), followed by Managers, who account for 10% of employees in the subsector. The lowest number of employees occupy Clerical Support Worker positions (1%), and Technicians and Professionals each make up 4% employees in the respective occupational categories in the subsector. FIGURE 8: EMPLOYMENT BREAKDOWN WITHIN THE HORTICULTURE SUBSECTOR Elementary Occupations Plant and Machine Operators Skilled Agricultural and related Trade workers Service and Sales Workers Clerical Support Workers Technicians and Associate Professionals Managers Professionals Managers Professionals Technicians and Associate Professionals Clerical Support Workers Service and Sales Workers Skilled Agricultural and related Trade workers Plant and Machine Operators Elementary Occupations NUMBER PERCENTAGE 10% 4% 4% 1% 5% 6% 6% 64% Source: AgriSETA WSP Submissions,

23 1.4 CONCLUSION Having a firm sense of the Horticulture subsector 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 subsequent chapters identify key skills issues as framed by government legislation, policies and frameworks; and further identifies key macro socio-economic and environmental factors that function as key change drivers in addressing skills development in the agricultural sector. 13

24 CHAPTER 2: KEY SKILLS ISSUES INTRODUCTION Having outlined the Horticulture subsector profile in chapter one, this chapter is concerned with two specific areas that shape the key skills issues in the subsector. Firstly. The alignment of sector skills planning to national strategies, and plans will be analyzed to provide a snapshot of the key policy and planning documents that shape skills planning in the Horticulture subsector. Secondly, the bulk of this chapter will be concerned with identifying factors that are driving change in the sector, which are influencing the skills needs for particular occupations or rendering them irrelevant in an ever changing world. 2.2 CHANGE DRIVERS This section of the report identifies the key themes and issues driving change and influencing skills demand and supply in the Horticulture subsector. These change drivers were identified though thematic synthesis and triangulated through internal and external stakeholder engagement, desktop research and relevant policy documents. 14

25 TABLE 6: CHANGE DRIVERS CHANGE DRIVER SKILLS ISSUE DEMAND & SUPPLY Land reform & industry transformation Financial management skills (learnerships, bursaries) Supply chain skills (technical, marketing, etc.) Mentorship funding, identification and training of mentors (sufficient mentors) Extension officer training programmes Demand: emergent growers, employees, new entrants, land reform beneficiaries, extension officers Supply: training service providers, Agri colleges, universities, universities of technology, TVETs, commodity organisations Skills retention Increase in production (citrus, table grapes, avocados, macadamias, other nuts, new fruit types) Climate change (production area is shifting eastwards) Youth bulge Bursary funding for targeted skills, with work-back requirement Career advice (wrong field of study places learners on unwanted career path) Demand for all supply chain skills (technical, etc.) at all levels (worker, all management levels) Demand re-skilling of workers Flexible qualifications allowing job mobility Increased demand for skilled workers in government and government agencies (DAFF, PPECB) Migration of workers, new skills required Incorporation of latest technology and research outcomes in qualifications, curriculums and course content Demand for skills development at younger age (high school level), employable youths Supply rural skills development Management skills to manage young workforce Demand: scholars, matriculants, university students, young graduates Supply: schools, universities, Agri colleges, universities of technology, TVETs, commodity organisations Demand: export growers, new entrants, growers changing plantings, training service providers, government departments and agencies Supply: training service providers, universities, colleges, Agri colleges, universities of technology, TVETs, QCTO, commodity organisations Demand: growers, workers Supply: training service providers, universities, universities of technology, TVETs, Agri colleges, commodity organisations, research organisations Demand: scholars, students, rural youth, junior / middle / upper management Supply: training service providers, universities, universities of technology, TVETs, Agri colleges, QCTO 15

26 CHANGE DRIVER SKILLS ISSUE DEMAND & SUPPLY Logistics and infrastructure Widening of skills range (engineering, logistics, commercial, etc.) requires new qualifications, broader scope Demand: export growers, other employers in value chain Supply: training service providers, universities, universities of technology, TVETs, Agri colleges, QCTO, commodity organisations Increasingly strict export requirements Qualifications and training for quality control staff Qualification and training for ethical auditors Demand: export growers, other employers in value chain, government, government agencies Supply: training service providers, universities, universities of technology, TVETs, Agri colleges, QCTO, commodity organisations Technology and Mechanization 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. With that said, 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 Climate Change and Drought 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). 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 capitalintensive 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. 16

27 2.2.3 Land 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) 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). This presents a huge challenge for skills development generally, and specifically for the agricultural sector, with a waning interest in agriculture and rapid urbanisation. 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 up-skilling 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. 2.3 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 (1999) 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. 17

28 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 recognize 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 meeting the needs of all South African communities, both rural and urban, in terms of food provision and sustainable livelihoods. 2.4 IMPLICATIONS FOR SKILLS PLANNING 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 the Horticulture subsector Sector Skills Plan: 1. Practical skills transfer through mentoring and on-the-job training to address the youth bulge; 2. Human resource development strategies and career advice and expos to attract scholars and graduates towards agricultural occupations; 3. The growing demand in export markets means more initiatives need to be geared towards quality control staff and export assessor; 4. Partnerships with Higher Education Institutions (HEIs) for research and development into the subsector; and 5. The development of sustainable farming qualifications and incorporation of latest technology and research outcomes in qualifications, curriculum and course content. 2.5 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 5 skills implications that need to be addressed in the Horticulture subsector. Chapter 3 will elaborate on the specific demand and supply of skills in the subsector 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 INTRODUCTION Chapter 3 reflects the research completed on skills demand and supply in the Horticulture subsector. 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 in the sector. 3.2 OCCUPATONAL 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 the Horticulture 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 and HTFVs identified through stakeholder engagements. 19

30 TABLE 7: SMALL EMERGING FARMERS AND CO-OPERATIVES HTFV Subsector Skills and/or Qualifications Gaps OFO Code National Certificate: Agricultural Machinery Technician General Education and Training Certificate: Horticulture Further Education and Training Certificate: Manufacturing Technical Maintenance Horticulture National Certificate: Horticulture National Certificate: Agricultural Extension National Certificate: Farming National Certificate: Fruit Packing and Grading Processes National Certificate: Plant Production TABLE 8: COMMERCIAL FARMERS HTFVS Subsector Skills and/or Qualifications Gaps OFO Code Certificate: Gardening and Horticulture National Certificate: Farming National Certificate: Agricultural Machinery Technician Horticulture 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 The following table outlines the top HTFVs as identified by external stakeholders in the Horticulture sub-sector: 20

31 TABLE 9: TOP HTFVS (STAKEHOLDER ENGAGEMENT) Hard to Fill Vacancies (HTFVs) Reason Demand & Supply SETA Interventions ENGINEER HORTICULTURIST/ VITICULTURIST ENTOMOLOGIST SOIL SCIENTIST PLANT NUTRITIONIST RESEARCH TECHNOLOGISTS Not traditionally part of sector, not seen as career path in agriculture Not enough matriculants with necessary Maths and science grades and interest is entering post-school education in this field, graduates need more experience Not enough matriculants with necessary Maths and science grades and interest is entering post-school education in this field, graduates need more experience Not enough matriculants with necessary Maths and science grades and interest is entering post-school education in this field, graduates need more experience Not enough matriculants with necessary Maths and science grades and interest is entering post-school education in this field, graduates need more experience Not enough matriculants with necessary Maths and science grades and interest is entering post-school education in this field, graduates need more experience Demand: processing facilities (incl. wine cellars), growers (systems engineers), logistics service providers, cold stores, fresh produce terminals Supply: universities, universities of technology, QCTO (qualifications) Demand: research institutions, growers, employers in trade chain, cultivar managers Supply: universities, universities of technology, workplaces Demand: research institutions, growers, employers in trade chain Supply: universities, workplaces Demand: research institutions, growers, employers in trade chain Supply: universities, workplaces Demand: research institutions, growers, employers in trade chain Supply: universities, workplaces Demand: research institutions, growers, pack houses, cultivar managers Supply: universities, universities of technology, workplaces Bursaries Apprenticeships Career advice Bursaries Internships / graduate placements Career advice Bursaries Internships /graduate placements Career advice Bursaries Internships / graduate placements Career advice Bursaries Internships / graduate placements Career advice Bursaries Internships / graduate placements Career advice 21

32 Hard to Fill Vacancies (HTFVs) Reason Demand & Supply SETA Interventions MARKET RESEARCHER LOGISTIC MANAGER PRODUCTION MANAGER SKILLED PRODUCTION WORKER PACKHOUSE MANAGER SKILLED PACKHOUSE WORKERS Attracted by other industries, not sufficient bursary support, graduates require experience, not seen as career path in agriculture Increase in demand due to export growth, not seen as career path in agriculture Increase in demand due to growth in production and expanding commodities, lack of occupational qualifications Increase in demand due to growth in production and expanding commodities, lack of literacy and numeracy skills form barrier to accessing skills development, lack of occupational qualifications Increase in demand due to growth in production and expanding commodities, new technologies, lack of occupational qualifications Increase in demand due to growth in production and expanding commodities, lack of literacy and numeracy skills form barrier to accessing skills development, lack of occupational qualifications Demand: export growers, pack houses, exporters Supply: universities, universities of technology, workplaces Demand: logistics companies, growers, exporters, pack houses, cold stores, fruit terminals Supply: universities, universities of technology, TVETs Demand: growers, nurseries Supply: universities, universities of technology, TVETs, training service providers, QCTO Demand: growers, nurseries Supply: training service providers Demand: pack houses, growers Supply: universities, universities of technology, TVETs, training service providers, QCTO Demand: pack houses, growers Supply: training service providers, QCTO Bursaries Internships / graduate placements Career advice Bursaries Career advice Learnerships Bursaries Career advice Occupational qualification development Mentorship funding Learnerships Skills programmes Occupational qualification development Learnerships Bursaries Career advice Occupational qualification development Mentorship funding Learnerships Skills programmes Occupational qualification development 22

33 Hard to Fill Vacancies (HTFVs) Reason Demand & Supply SETA Interventions QUALITY CONTROLLER Increase in demand due to growth in production and expanding commodities, lack of occupational qualifications Demand: growers, pack houses, government agencies, exporters Supply: universities of technology, TVETs, training service providers, QCTO Bursaries Learnerships Skills programmes Occupational qualification development The following table presents the top emerging skills and future demand needs in the Horticulture subsector drawn from the results of the external stakeholders survey (2016). Table 10: TOP EMERGING SUBSECTOR SKILLS AND FUTURE OCCUPATIONAL SHORTAGES Subsector Horticulture Top Emerging Skills and Future Demand Needs Operations management Junior management Farming technology/mechanization 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 Mechanical engineering Financial management Agro-economics Agricultural research 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, similar to other agricultural subsectors, stakeholders across occupations in the Horticulture subsector expressed having challenges with recruiting and retaining skilled staff in rural areas. Furthermore, they highlighted the need for technical and specialized skills that were being lost when experienced professionals exited the workforce. There are eight occupations that are HTFVs identified for both small emerging farmers and cooperatives, and commercial farmers: 1. National Certificate: Agricultural Machinery Technician 2. National Certificate: Perishable Produce Export Technology 3. General Education and Training Certificate: Horticulture 4. Further Education and Training Certificate: Manufacturing Technical Maintenance 5. National Certificate: Farming 6. National Certificate: Fruit Packing and Grading Processes 23

34 7. National Certificate: Mixed Farming Systems 8. National Certificate: Plant Production 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 11 gives a list of occupations of scarce skills and skills gaps relevant to the Horticulture subsector at a major occupational level. Consistent with the subsector profile, which illustrated the concentration of employees in the subsector in more elementary positions (64%), the scarce skills and skills gaps list below reveals that the majority of skills shortages are in the more managerial and professional occupations. TABLE 11: SCARCE SKILLS AND SKILLS GAPS LIST OCCUATIONAL CATEGORY OCCUPATION CODE OCCUPATION Chief Executive Officer/Managing Director Ornamental Horticultural Farmer/ Farm Manager Horticultural Farmer/ Farm Manager Mixed Crop Farmer/ Farm Manager Ornamental Horticultural Farm Production Manager/ Foreman Sales and Marketing Manager Finance Manager Personnel/ Human Resources Manager MANAGER Research and Development Manager Engineering Maintenance Manager Importer or Exporter Production/ Operations Manager (Manufacturing) Operations Manager (Non-Manufacturing) Supply and Distribution Manager Laboratory Manager Quality Assurance Manager Retail Manager Accountant (General) Training and Development Professional Technical Instructor/ Trainer Skills Development Facilitator Marketing Practitioner PROFESSIONALS Sales Representative/ Salesman Mechanical Engineer Mechanical Engineering Technologist Agricultural Engineer Agricultural Consultant Agricultural Scientist 24

35 TECHNICIANS AND TRADE WORKERS CLERICAL SUPPORT WORKERS SERVICE AND SALES WORKERS MACHINERY OPERATORS AND DRIVERS ELEMENTARY OCCUPATIONS Wine Maker Earth and Soil Scientist Biotechnologist Zoologist Registered Nurse Agricultural/ Horticultural Produce Food Technician Beverages Technicians Fitter and Turner Plumber (General) Electrician (General) Air-conditioning and Refrigeration Mechanic Green Keeper Perishable Produce Packing General Clerk Accounts Clerk Payroll Clerk Production Administrator Warehouse Administrator/ Clerk Dispatching and Receiving Clerk/ Officer Human Resources Clerk Skill Development Administrator/ Coordinator Sales Assistant (General) Retail Supervisor Agricultural Mobile Equipment Operator Earthmoving Plant Operator Loader Operator Forklift Driver Truck Driver Ornamental Horticultural or Nursery Assistant Mixed Crop and Livestock Farm Worker/ Assistant Irrigationist Scout Harvester/ Picker Handyperson 3.3 EXTENT AND NATURE OF SUPPLY This section aims to examine the extent of occupational supply in the subsector, the state of education and training provision and challenges that may be affecting the supply of skills to the Horticulture subsector. Furthermore, this section supplies details on the learners currently enrolled at training institutions, as well as the learners graduating into the labour market. 25

36 No. of Learners 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. FIGURE 9: UNIVERSITIES THROUGHPUT FOR AGRICULTURAL STUDENTS GRADUATING IN 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 learners dropped out, 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 3703 and 3878 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. 26

37 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 FIGURE 40: NUMBER OF POST-SCHOOL GRADUATES IN AGRICULTURAL SECTOR Skills Supply through Mandatory Grants Source: Institute of Race Relations, 2016 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 were attended by employees in the Horticulture subsector. The table below outlines the training received in the subsector by occupational category and gender. The results show that the majority of people trained in the subsector were male (54%), while females (46%) make up the remaining proportion. Consistent with the employment breakdown of the subsector outlined in chapter 1, the vast majority of employees that received training were Elementary workers (77%); followed by Plant and Machine Operators and Assemblers (8%), and Skilled Agricultural, Skilled Agricultural, Forestry, Fishery, Craft and Related Trades Workers (6%). The occupations that employees were least trained on was Professionals (1%), and Service and Sales Workers (1%). TABLE 12: EMPLOYEES TRAINED BY OCCUPATIONAL CATEGORY AND GENDER OCCUPATION 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 % 27

38 Grand Total % Source: AgriSETA, ATR Data, 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 through s and survey monkey, 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 Specialization/ Alternative Title Mixed Crop and Livestock Farm Worker / Assistant General Farm Worker Intervention Planned by the SETA NQF Level NQF Align ed Learnerships: National Certificate: Mixed Farming Systems 2 Yes National Certificate: Plant Production 1 Yes Quantity Needed Quantity to be supported by seta Skills Programmes: National Certificate: Plant Production National Certificate: Mixed Farming Systems AET programmes 1 and 2 Yes NA No

39 Horticultural Farmer/ Farm Manager Industrial Machinery Mechanic Agronomy, Horticulture, Crop, Mixed Crop and Livestock, and Ornamental Horticultural Managers Agricultural Machinery Mechanic, Farm Machinery Repairer National Diploma: Crop Production National Diploma: Agriculture Apprenticeships: Electricians Millwrights Mechanical Fitters Tractor Mechanics Diesel Mechanics Fitter and Turners 4 and 7 Yes NA No Agricultural/ Horticultural Produce Inspectors Agricultural Scientists Fruit and Vegetable Inspector, Produce Inspector, and Quality Controller Agronomists, Plant Breeders, Plant Pathologist, Plant Scientist, Soil, and Pasture Scientists Internships, Bursaries: 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 Yes and 8 Yes Agricultural Mobile 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 supervision Operate and maintain irrigation systems 1 and 2 Yes

40 Agricultural Engineer Research and Development Manager Agricultural Product Process Engineer, Irrigation Engineer, Agricultural Structures and Facilities Engineer, and Crop Production Mechanisation Engineer Product Development Manager, Research Managers Bursaries: Industrial Engineering Mechanical Engineering Bursaries : National Certificate: Horticulture Research and Development operations National Certificate: Horticulture analysis 6 Yes Yes CONCLUSION The aim of this chapter has been to analyze the extent of the skills mismatch in terms of demand and supply in the subsector. 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. 30

41 CHAPTER 4: SECTOR PARTNERSHIPS INTRODUCTION To achieve the relevant and targeted skills provision that promotes economic sustainability in the 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 recognizes 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 Private service providers 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. 4.2 EXISTING PARTNERSHIPS TABLE 14: AGRISETA PARTNERSHIPS Partnerships Reason Demand & Supply Interventions 1. ARC Commodity-specific applied Demand: Quality applied Place pressure to improve research research geared to meet the ARC performance needs of particular Encourage ARC to focus on commodity groups at a core business research reasonable cost (and not training) AgriSETA 31

42 2. Training service providers 3. Government departments (DAFF, DRDLR, the DTI, DWS, DOH, DSD, etc.) Responsible for training at workplaces, including learnerships, skills programmes, and compliance training Supply: Not meeting industry needs at present, research is below par, outcomes are not reliable, costs are high (not value for money) Demand: Quality skills development, based on qualifications and standards that meet industry requirements, supported by quality, up-to-date learning resources, delivered by accredited, qualified service providers Supply: AgriSETA quality assurance with regards to service provider accreditation and programme approval for horticulture is not satisfactory, and combined with the underfunding of skills development activities in the current funding model, this has led to sub-standard, unqualified training service providers. Government services Demand: All government services Supply: Not in all cases up to standard AgriSETA postgrad bursary holders can conduct research at ARC, provided research is driven and monitored by industry Support service providers with industry-approved learning material and resources in order to improve quality of delivery and contain costs AgriSETA Improve quality assurance standards through implementing monitoring and evaluation system Continue to build relationship with government departments and individual officials Place pressure on government leadership to improve quality of service delivery AgriSETA Where relevant, provide funding to improve skills of government employees, in particular government extension officers 32

43 4. Post-school education institutions (including agricultural schools) 5. Value chain input suppliers Research partnerships, human resource development, career advice, placements for workplace experience (internships) Responsible for supplying growers with all inputs and services required in their farming operation Demand: Quality education for potential employees in sector, awareness of sector as a career option, quality research at reasonable cost, industry to provide workplace experience Supply: Due to challenges with outdated curricula, lack of up-to-date learning resources and under-qualified inexperienced lecturers education is not always in line with industry requirements, quality of learning delivery is sub-standard at some institutions Demand: Quality products and services, supported by after-sales care, product development and research, extensive product knowledge, assistance with interpretation of analysis results, technical recommendation Commodity organisations or other representatives bodies can negotiate seats on the academic boards / councils of agricultural faculties Commodity organization can make available experiential learning opportunities for lecturers Learning resources can be supplied by some commodity organisations AgriSETA Encourage implementation of occupational qualifications curricula at agricultural colleges and schools Provide funding for curriculum development and learning resources Support commodity organisations to develop and update learning resources Make available experiential learning opportunities AgriSETA Bursaries Graduate placement funding 6. Agricultural colleges (in particular) After restructuring of agricultural colleges, new partnerships will have to be forged, which will depend on the shape the colleges will take Supply: Due to the general shortage of science graduates, input suppliers are understaffed in technical areas Demand: Quality education for potential employees in sector, awareness of sector as a career option, quality research at reasonable cost, industry to provide workplace experience Assistance with restructuring process, playing role in Technical Working Group Exploring opportunities for partnerships once restructuring is complete AgriSETA Play role in restructuring Encourage implementation of occupational qualification curricula 33

44 4.3 EMERGING 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 recognizes the need for skills development along value chains. In midterm 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 recognize the need for a more coordinated approach to beneficiation (i.e. the production of fruit products from fruit). 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. 4.4 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. 34

45 CHAPTER 5: SKILLS PRIORITY ACTIONS INTRODUCTION This chapter aims to synthesize the findings of the previous chapters and establish a set of skills priority actions for the Horticulture subsector. The intention of these recommended skills priority actions is that they articulate the micro concerns of the Horticulture subsector. These recommendations are founded in national policy and sectoral change drivers (chapter 2), as well as the skills concerns identified by employers and training providers in terms of their skills needs (chapter 3). This chapter is not a strategic or operational plan, but rather serves to identify priorities that should be taken forward and further developed in the AgriSETA Strategic Plan and Annual Performance Plan and to reflect the needs of the Horticulture industry. 5.2 KEY FINDINGS Overall the Horticulture subsector contributes significantly to the agricultural sector in South Africa. Horticulture is produced throughout the country, with the main regions including the Western Cape, KwaZulu- Natal and Limpopo. Of the total registered entities with AgriSETA, 25% are from the Horticulture subsector. 35