Operation Phakisa: Agriculture, Rural Development and Land Reform Avi Africa 2018 M D Motiang & R Joemat 13 June 2018
2013, President Jacob Zuma during his visit to Malaysia in was introduced to the Big Fast Results Methodology Malaysian government achieved significant government and economic transformation through this methodology With the support of the Malaysian government, the Big Fast Results approach was adapted to the South African context under the name Operation Phakisa ( Phakisa meaning hurry up in Sesotho) 1 1
Operation Phakisa is a result-driven approach, involving setting clear plans and targets, on-going monitoring of progress and making these results public The process focuses on bringing key stakeholders from the public and private sectors, to collaborate in detailed problem analysis, priority setting, intervention planning and delivery These collaboration sessions are called laboratories (labs) The results of the labs are detailed plans with ambitious targets as well as public commitment on the implementation of the plans by all stakeholders 2 2
What is Operation Phakisa Methodology? Lab Report NDP and 9PP (RAAVC) compels us to review the development How agenda far are we for in Agriculture implementing & the Land methodology? Reform 1 2 3 launched by President, February 2017 4 5 Monitoring 6 8 Strategic Direction Lab Launch Open Day Set-up institutional arrangements 7 External account-ability Delivery Proposal Processes of the lab phase Pre-lab Scoping Lab Post lab Appointed Champions per initiative (finalised) Cabinet submission of Lab report Inputs and comments (Approved by ESEID,18 Jan 2018) it Proposal used in a 6 5- week Lab ran from 26 Sept received was used to develop will return in the form of APAP2 by month consultation 28 Oct 2016. with 161 the scoping document for the order of Cabinet) process (7, 2-day registered participants Lab Open Day (Presidency still to respond workshops were held) developing 27 initiatives via DPME). 3
Composition of the Participants One hundred and sixty one registered participants, engaged in the five week lab Business Government Civil Society BAWSI Agratech trade Deciduous Fruit Industry Development Trust Enterprise Evolution Technology Holdings Makolobane Farmers Enterprise AFRIWU NAFUSA 4 The participants were allocated to various work streams namely: Grains, Horticulture, Livestock, Producer Support, Land Reform, Rural Development and Labour; aligning their competencies and areas of expertise
PHAKISA WORKSTREAM LEAD AND INITIATIVE WORK STREAM HEADS GRAINS HORTICULTURE LIVESTOCK 1. Unlocking finance for grains through PPP (Dr Julian Jaftha) 2. Integrated grain value chain (Dr Julian Jaftha) 3. Grain Know How (Ms Msaserame Macucwa) 5 LAND REFORM 4. Financial partnerships for accelerated and sustainable Land Reform (Dr Swartz leads, Mr Mbongwa) 5. Fast tracking the settlement of outstanding restitution claims in a sustainable manner (Ms C Benyane and Ms Z Phakedi) 6. Accelerated Land Development and Redistribution Initiative (ALDRI) (Mr B Zulu leads, Mr Toolo) 7. Promoting and protecting rights of persons living under insecure tenure (Ms V Nxasana leads, Mr Maanda Lukoto) 8. District Land Reform Delivery Centre (Mr Zulu leads, Mr V Mngwengwe) 9. Unlocking water to expand horticultural production (Ms Mary-Jean Gabriel) 10. Inclusive horticulture value chain participation model Trade Promotion, Retention and Optimisation (Ms Phindiwe Dingile) RURAL DEVELOPMENT 12. Strategic leadership & coordination for structural transformation (Dr Sharmla leads, Mr S Mbambo, Mr T Gwanya) 13. Basic Services (Mr P Maluleka leads, Ms T Manzi, Mr K Naidoo) 14. Rural enterprise development (Dr Van Staden leads, Mr Zantsi) PRODUCER SUPPORT 15. Re-engineering agricultural development finance (Ms Elder Mtshiza) 16. Dynamic Business Model for Producer Support (Ms Elder Mtshiza) 17. Harmonization of legislation affecting the agricultural value chain Mr Dipepenene Serage) 18. Ndimo Desk (Mr Bonga Msomi) 19. Demand led public/ private agri-skills unit (Mr Mdupi Shabangu - AgriSETA) 20. Fortified veld management for sustainable livestock production (Ms Lydia Bosoga) 21. Enhanced animal health through revolutionary veterinary services (Dr Modisane) 22. National livestock census, animal ID, & traceability (Dr Modisane) 23. Access to commercial and alternative livestock value chains (Mr M D Motiang) LABOUR 25. National Agricultural Decent Work Programme (Mr Bongani Mbali - CCMA) 26. Strengthening legal compliance mechanisms (Mr Richmond Ntuli - DoL) 27. Farm worker house and land ownership programme (Mr Christo van der Rheede - AgriSA)
Access to Commercial and Alternative Livestock Value Chains (1 of 5) Initiative Summary Develop new customized business models &. Use preferential shelf space to improve access while Reducing feed and related input costs by establishing Black-owned companies Including Agro-logistics access to land, water, infrastructure and mechanization, research and innovation support services Issues Addressed Low productivity of herd and flock due to low livestock reproductive rates and high mortality limits competitive participation in value chains Inadequate participation and ownership of Black entrepreneurs of input, production, processing, logistics and retail value chains. Dualistic livestock industry with commercial sector supplying 75%-80% through vertically integrated feedlots and small scale sector mostly supplying informal sector Solution Design Unlock blockage in the current conventional integrated value chains that prohibit entry of new and small players Integrated value chain is needed where the value added margins in terms of both fresh produce sold into the formal market as well as fast-food restaurants needs to be pulled back to small / farmers / agrarian small and medium enterprises. Strengthening farmer organisations using cooperatives as catalyst Ensure true transformation aligning with priority programmes Agri-Parks, RAAVC Solution 1: Develop a new, enticing brand of fresh, healthy "RURAL FRESH" Expand services by selling the fresh produce and prepared meals Integrated production, processing and retail businesses including feed mill, feedlots, abattoirs and processing; retail shops; container and mobile kitchen shops. Solution 2: Robust legislative review and enforcement Preferential shelf space in major retail chains for supplier development State institutions compliance to procure from BBBEE SMME s. Small independent shops in rural areas and towns will receive incentives to stock from local small farmer livestock produce. Accommodate technological enhancements to utilise waste products in animal feed production and manage treatment and recycling of water. Inclusive dialogue increase competitiveness. 6
TARGETS 7 S.A. Pop'n Per Cap. Cons. (kg) Advancing the NDP through poultry industry Consumption kg('000) Production (%) by SHF's ('000) Production (kg) by SHF's ('000) Income by SHF's ('000) Direct Jobs Indirect Jobs Redmeat 2016 54,900,000 19 1,043,100 5% 52,155 R 4,015,935 70,000 43,800 2021 56,600,000 21 1,188,600 20% 237,720 R 18,304,440 101,500 88,600 2030 60,034,000 23 1,380,782 30% 414,235 R 41,423,460 184,500 113,800 Poultry 2016 54,900,000 42 2,305,800 7% 161,406 R 12,428,262 48,000 63,000 2021 56,600,000 45 2,547,000 20% 509,400 R 22,413,600 66,700 80,000 2030 60,034,000 50 3,001,700 30% 900,510 R 46,826,520 104,400 120,000 Pork 2016 54,900,000 4.6 254,736 5% 12,737 R 980,734 4,000 6,000 2021 56,600,000 5.7 322,620 20% 64,524 R 2,839,056 5,200 7,800 2030 60,034,000 7 420,238 30% 126,071 R 6,555,713 6,760 10,140 Game meat 2016 Very limited exports 150,000 R 5,700,000 135,000 5,000 2021 Volume & Export development! 168,500 R 19,040,500 140,500 7,590 2030 Volume & Export development! 206,000 R 23,690,000 146,000 10,180 Wool 2016 Volume & Export development! 4,000 R 233,000 24,000 3,000 2021 Volume & Export development! 8,700 R 662,496 27,000 5,400 2030 Volume & Export development! 15,000 R 1,236,000 28,000 11,000 Saving in stock losses if robust schemes are implemented to curb: Stock theft: R1.25Bn p.a. by 2021 and R2,5Bn p.a. by 2030 Predation: R1Bn p.a. by 2021 and R2Bn p.a. by 2030
Inclusive growth path Integration of smallholder farmers in value chain 30% of egg industry grandparent = 2 670 30% of layer breeding hens = 98 100 30% of broiler grandparent = 72 600 30% of broiler breeding hens = 2 137 800 Breeding hens Grandparent Egg industry Breeding hens Grandparent Broiler industryle 8 0 100 200 300 400 30% Industry 0 2000 4000 6000 8000 30% Industry
Inclusive growth path Integration of smallholder farmers in value chain 30% laying hens = 720 000 30% of 21 million egg cases = 7 million cases 30% of feed used by egg industry = 352 000 tons 30% of broiler production = 300 million birds 30% of feed used by broiler industry = 900 000 tons How much land will be required to support this expansion? 56 000-126 000ha of yellow for broiler? 70 000-164 000ha of yellow maze for egg production? Broiler industry Egg industry 30% Share Industry 0 2000000 4000000 Feed requirements Broiler prod 30% Share Industry 0 1000 2000 3000 Feed requirements Layer prod 9
Where are we? Poultry products make significant contribution to GDP from animal products Poultry meat is the highest contributor Egg industry is the fourth contributor after beef and milk What is the contribution of smallholder producers? Smallholder broiler producers contribution = 3.8%/ 64k tons out of 935 million birds = 35.5 million birds Broiler production Smallholder Commercial 10 0 500 000 1 000 000 1 500 000 2 000 000
Initiatives to facilitate transformation in livestock sector 1. Livestock Skills and Knowledge Upgrading Programme 2. Access to Commercial and Alternative Livestock Value Chains 3. National Livestock Census and an Animal Identification and Traceability Programme 4. Enhanced Animal Health through Revolutionary Veterinary Services 5. Fortified Veld Management for Sustainable Livestock Production 11
Improving access to poultry value chains? Smallholder producers incur high input costs Options to improve economies of scale Strengthening farmer organisations Establish local input distribution centres How to collaborate with private sector How to use available resources to leverage more support Finisher Grower Starter 12 0 2000 4000 6000 8000 Bulk Wholesale bags Retail bags
Improving access to poultry value chains? Targeted access to value chains Feed manufacture and distribution Establishment of new parent stock producers Integrating all production systems into value chain Access to agro-processing facilities Improved market access Improved bio-security, product traceability, animal health and quality standards 13
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