ALIGNMENT BETWEEN AGRIPARKS AND DAFF PROGRAMS LAND AND MINERALS SELECT COMMITTEE 28 JULY 2015
LAYOUT BACKGROUND BACKGROUND ON AGRI-PARKS FOCUS BACKGROUND ON FETSA TLALA FETSA TLALA: INTEGRATED FOOD PRODUCTION INITIATIVE PROGRESS TOWARDS THE ATTAINMENT OF 1 MILLION HECTARES OBJECTIVES OF FETSA TLALA VS THOSE OF AGRI-PARKS FETSA TLALA FOCUS AREAS AND AGRI-PARKS FOCUS COMMON AREAS OF BENEFICIATION DAFF S ACTIVITIES AND LINKAGE TO THE AGRI-PARKS FETSA TLALA SUPPORT AND LINKAGE TO AGRI-PARKS SILOS FROM DAFF LINKAGE - THREE DRDLR BASIC UNITS OF THE AGRI-PARKS AGRI-PARKS VS CASP AND ILIMA/LETSEMA PROJECTS SITES MAPS: LINKAGE OF AGRI-PARKS AND CASP ILIMA PROJECTS CONCLUSION 2
BACKGROUND In his State of the Nation Address during 2015, His Excellency, The President of the Republic of South Africa announced: Among key interventions this year, we will promote the establishment of Agri- Parks in each of the 27 poorest district municipalities to transform rural economies. An initial funding of R2 billion has been made available for the Agri- Parks initiative 3
BACKGROUND ON AGRI-PARKS The Department of Rural Development and Land Reform (DRDLR) in partnership with the Department of Agriculture, Forestry and Fisheries (DAFF); has put plans in place for the establishment of the Agri-Parks in the identified district municipalities An Agripark has been defined as A networked innovation system of agro-production, processing, logistics, marketing and training and extension located in district municipalities DAFF is responsible for the priority on Revitalisation of the Agriculture and Agro-processing value chain Agri-Parks will make a meaningful contribution 4
BACKGROUND ON FETSA TLALA The President launched Fetsa Tlala Initiative in the Northern Cape during 2013 The Initiative was approved by Cabinet in 2013, together with National Policy on Food and Nutrition Security DAFF s political heads have for their tenure in office prioritized food security, contribution to the Gross Domestic Product and job creation Through Fetsa Tlala Framework Government intends to support subsistence and smallholder farmers to put one million hectares under production by 2018/19 Implementation through the 5 pillars supply food feed and fuel grains 5
FETSA TLALA: INTEGRATED FOOD PRODUCTION INITIATIVE 14.2 million individuals are vulnerable to food insecurity Urbanisation and declining agrarian activities have transformed the RSA economy into a wage economy. Most households = net consumers of purchased food, rather than producers thereof. Access to food = function of household cash income and thus cash deficit households are more likely to experience inadequate access to food PROGRAMME PILLARS Current MTEF MTSF Financial Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 2013/1014 2014/15 2015/16 2016/17 2017/18 2018/19 targets (ha) 350 000 470 000 590 000 710 000 850 000 1000 000 6
OBJECTIVES OF FETSA TLALA VS THOSE OF AGRI-PARKS FETSA TLALA Increase food production capacity of subsistence and smallholder producers AGRI-PARKS To promote the skills of and support to smallholder producers through the provision of a comprehensive producer support package Increase availability and access to locally produced fresh food products Create opportunities for agricultural value chain development at local level Create opportunities for SMME development at local level Create job opportunities within the agricultural sector To bring underutilized land into production and expand irrigated agriculture To expose all the producer categories to the whole value chain with a specific focus on smallholder producers Strengthen existing and create new partnerships within government, private sector and civil society To ensure Rural Economic Transformation and contribute to the creation of 1 million jobs NB: Note the common elements between the two programmes and focus on increased production and benefits to the smallholder sector 7
FOCUS AREAS: FETSA TLALA AND AGRI-PARKS FETSA TLALA Although not exclusive, will be to cultivate maize, beans and potatoes as the staple commodities (this is under review to accommodate feed and fuel grains ) First four years in the current MTSF the focus will be on the stabilisation of production and productivity. Commercialization will incrementally be included in the programme, parallel with the implementation of Strategic Integrated Project (SIP 11) to complete the agricultural value chain. This will see more introduction of feed and fuel grains for market. AGRI-PARKS Focus primarily on the processing of agricultural products Focus on establishing linkages between the parks and surrounding agricultural production land Include the involvement, selection and training of smallholder producers as well as the placement, incubation and training of unemployed graduates and other agro -entrepreneurs Provide networks of contacts between producers, markets and processors but equally provide the physical infrastructure required for transforming industries 8
COMMON AREAS OF BENEFICIATION Improved production efficiencies for producers production levels enhanced with technologies used at various levels of the value chain taking into consideration the land use capabilities and suitability Promote food security local procurement and resultant cost reduction Local economic growth and sustenance of the locals job creation at local level Improved local institutional partnerships public and private locals jointly supporting local development Preservation of natural resources community mobilisation will heighten environmental awareness and skills on preservation of natural resources. 9
PROGRESS TOWARDS THE ATTAINMENT OF 1 MILLION HECTARES Province 2013/14 ha planned 2013/14 Actual 2014/15 planned 2014/15 Actual 1. Free state 2430 4986 5400 5519 1. Gauteng 2045 2850 2265 1940 1. Western Cape 447 837 640 1802 1. Eastern Cape 13415 6579 17000 17275 1. Limpopo 26691 51970 90 000 40396 1. North West 20014 27167 16703 13131 1. Northern Cape 1110 1198 1685 1020 1. Mpumalanga 27208 43969 35000 30955 1. Kwazulu-Natal 10952 14673 23260 16475 Total 104312 154229 191953 128513 Grand total 296265 282742 Progression on hectares is based on budgetary allocations (CASP) which do not increases at the same rate as the expected land under production 10
FETSA TLALA TARGETS FOR 2015/16 DISTRIBUTION OF HECTARES PER COMMODITY COMMODITY EC FS GP KZN LP MP NC NW WC TOTAL VEGETABLES 870 150 100 3 348 1 000 10 538 929 6 945 SUGARCANE 0 FRUIT 11 20 815 28 100 974 MAIZE 40 500 5 001 2 600 14 280 26 673 9 200 1 092 6 348 105 694 BEANS 888 353 500 1 741 SOYA BEANS 400 200 600 SUNFLOWER 870 600 4 232 5 702 FODDER 1 130 24 10 1 164 COTTON 400 400 GROUNDNUTS 2 000 2 000 JUGO BEANS 98 98 CHICORY 0 BARLEY 1 200 1 200 GRAPES 367 81 448 SORGHUM 736 736 WHEAT 786 786 TOTAL 42 500 7 344 3 800 14 753 31 572 13 998 1 479 11 146 1 896 128 488 11
OTHER DAFF S ACTIVITIES AND LINKAGE TO THE AGRI- PARKS FETSA TLALA Integrated Food Production Initiative - increase production especially in rural areas to address household food security Approved Agriculture Policy Action Plan (APAP) determines the policy requirements and practical interventions to develop the rural spaces and the sector, within the context of employment-driven and equitable economic growth Medium Term Strategic Framework (MTSF) emphasis on improved and sustainable agrarian reform and food security DAFF study on the Integrated Government Procurement Model - an illustration of how the process within the three units as described by DRDLR can be realised DAFF s partnership with the World Food Programme (WFP) - rigorous engagement with the smallholder sector and partners 12
FETSA TLALA SUPPORT AND LINKAGE TO AGRI-PARKS SILOS FROM DAFF During the 2012/2013, many subsistence and smallholder producers who planted between 1.5 and 2 hectares and harvested between 3 and 5 tons of maize experience a critical storage problem (EC). A storage facilities idea was conceived by DAFF. This intervention is therefore a pilot tested in 3 provinces, i.e. Limpopo, Kwazulu Natal and Eastern Cape. A total of 240 tanks will be installed, distributed as follows: KwaZulu Natal Limpopo Eastern Cape 120 tanks 60 tanks 60 tanks Coordinates on these sites will be overlaid on the map on slide 19 13
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SILOS SPECIFICATIONS Has life span of at least 20 years (8 year guarantee), after which the tank may be painted on the outside The lid on top is water and air tight. Pests and insects kept away. The tank is UV resistant maize not affected by sun s rays The opening is stainless steel, does not rust Bucket to facilitate loading is pulley operated Intention to expand distribution of 10tons silos for smallholder support to: NW; FS and MP Conduct a study on the usage of the current silos report to inform current and future expansion 16
LINKAGE - THREE DRDLR BASIC UNITS OF THE AGRI-PARKS The DRDLR has identified three basic units that will comprise the Agri-parks: One of the units is the Farmer Production Support Unit (FPSU). The FPSU is a rural outreach unit connected with the Agri-hub and does primary collection, some storage, some processing for local markets and extension services. This is the unit that will contain some of the anchor support services as stated in the introductory section 1 above and training and skills development would reside within this unit DAFF s role existing provincial structures The second Agri-parks unit is the Agri-Hub (AH) which serves as a production, equipment hire, processing, packaging and logistics current mechanisation capacity, existing infrastructure The third unit is the Rural Urban Market Centre (RUMC) which will ensure contracting with either local, regional, national and international markets. The RUMC will serve as a holding facility whereby produce will be released to markets based on seasonal trends - 17
IDENTIFIED AGRI-PARKS SITES Province EC Agri-parks sites Ncora (Chris Hani); Mtata (OR Tambo); Matatiele (Afred Nzo); Lady Grey/Sterkspruit (Joe Gqabi); Butterworth (Amatole); Cacadu (Sundays River Valley) FS Springfontein (Xhariep); Tshame/Phuthaditshaba (Thabo Mofutsanyane); Thabanchu (Mangaung); Wesselsbron (Lejweleputswa) GP Limpopo Randfontein Brandvlei (West Rand) Tzaneen (Mopani); Groblersdal (Sekhukhune); Modimolle (Waterberg) Agananang (Capricorn); Nwanedi (Vhembe) 18
IDENTIFIED AGRI-PARKS SITES Province KZN MP NC NW Agri-parks sites Kwa Dukuza (Ilembe); Umgeni LM area (Umgungundlovu); Horseshoe Farm Izingqoleni area (Ugu); Dundee (Umzinyathi); Vryheid (Zululand); Dannhauser (Amajuba); Ebutha farm (state land); Umzimkhulu (Harry Gwala); Eshowe (Uthungulu); Okhahlamba LM Area (Uthukela); Mkhuze (Umkhanyakude); Kwa Duluza (Ilembe) Bushbuckridge (Ehlanzeni); Gert Sibande (Mkhondo); Nkangala (Dr JS Moroka Kameel Poort A) Kuruman (John Taolo Gaetsewe); Warrenton (Frances Baard); Springbok (Namakwa); Petrusville (Pixley Ka Seme) Springbokpan (Ngaka Modiri Molema); Vryburg (Ruth Segomottsi Mompati); Makapanstad (Bojanala); Dr Kenneth Kaunda (Klerksdorp) 19
PROVINCIAL ALLOCATION 2016/17 Province 2016/17 R'000 PROJECTS/ INFRASTRUCTU RE R'000 ERP R'000 COLLEGES R'000 DISASTER R'000 Eastern Cape 268 611 174 678 80 264 13 669 Free State 179 444 147 496 26 281 5 667 Gauteng 89 132 73 150 15 982 0 KwaZulu-Natal 230 344 172 274 46 880 11 190 Limpopo 268 169 157 980 77 423 17 211 15 555 Mpumalanga 184 014 130 106 28 412 5 170 20 326 Northern Cape 134 729 105 607 29 122 0 North West 177 970 136 882 27 702 13 386 Western Cape 169 411 100 942 23 084 4 533 40 852 unallocated Total 1 701 824 1 199 115 355 150 70 826 76 733 21
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CONCLUSION Fetsa Tlala targets 128 488 hectares during 2015/16 Markets for the produce to be linked with Agri-parks CASP projects have been overlaid on the map with Agriparks sites Delivered silos are being overlaid on the map with Agriparks and CASP projects Further distribution of silos to NW, FS and MP to target Agriparks sites Future development is necessary around the delivered silos i.e. utilization or uptake Agri-parks sites identified in all provinces 44 districts 24
Thank you 25