SMALL-SCALE GROWER PROJECTS A CATALYST FOR RURAL DEVELOPMENt The South African sugar industry is one of the leading commodities to invest in rural areas in KwaZulu-Natal and Mpumalanga. The investment in sugar cane production in many communal areas over the past 40 years has been through various models. These have ranged from leasehold, co-operatives and self-managed projects. Collectively these initiatives have resulted significant investments of capital into the rural local economies, resulting in employment of local persons, and the development of local entrepreneurs. These income sources have contributed to the multi livelihoods strategy that is prevalent amongst many rural dwellers. The South African Sugar Journal 19 M a r c h 2 0 1 2
Currently, there are approximately 24 000 of small scale growers on communal land who have access to plots ranging from less than a hectare to over 30 hectares in size. The average tonnage of sugar cane harvested by communal growers is approximately 1,2 million tons. However, over the years there has been a reduction in the number of small-scale growers. Production in communal areas has also declined due to a multitude of factors, including the impact of drought, high input costs, high debt levels, inappropriate farming models, and farmers perusing off farm wage employment Renewed interest in communal areas From top to bottom: Zamani; Mthwalume; and Umzinto. In the recent years there has been a renewed interest in sugar cane production on communal land, with industry stakeholders expanding sugar cane production in these areas. Similarly, the State, and in particular the Department of Rural Development and Land Reform (DRDLR) is allocating an increasing percentage of its financial resources to support communities who reside on communal land (Ingonyama Trust Land in KwaZulu-Natal, and State land in Mpumalanga). As an industry we therefore need to develop sustainable strategies and models for small scale grower projects that are reflective of the rural development agenda. Simply stated, sugar cane projects in communal areas need to be packaged in a manner in which 20 The South African Sugar Journal M a r c h 2 0 1 2
these interventions are catalysts for the broader socioeconomic development of the participating communities. The projects needs need to encompass aspects dealing with food security, local infrastructure development, and institutional support programmes. Partnership with the Department of Land Reform and Rural Development A number of communities on communal land have been assisted by both the Millers and Cane Growers to organise themselves into Co-operatives in order to farm as a collective, and thereby reduce input and operational costs. With the assistance of Cane Growers and the respective Millers, specific Co-operatives have formulated project business plans and approached the DRDLR for funding support, through its Recapitalisation and Development Programme (RADP). The DRDLR has responded positively and approved funding for several projects in Glendale Valley on the North Coast, Umzimkulu and Sezela on the South Coast and the small-scale grower irrigation projects in Mpumalanga. From the funds leveraged thus far it is expected that 1 694 hectares on communal land will be bought back into production over the next two years. SASA is currently facilitating access to additional funding from DRDLR to extend the programme to other communal areas in the 2012/13 season. Expected impact and outcomes The overall policy environment within which the DRDLR is supporting the interventions in communal areas is based on the premise that these initiatives will contribute to the general improvement in the quality of life of the participants. The key elements of the programme are listed below: The appointed Strategic Partners / Mentors need to ensure that the investment by the State leads to sustainable production practices by the small-scale growers, rather than growers reverting to the State in a few years for additional financial support;
The State s investment must lead to increased production, job creation, entrepreneurial development, and the circulation of capital within those rural local economies; The members of the Co-operative are not to be passive participants in the projects, who only realise the benefits of the programme from the sugar cane production proceeds. Co-operative members are to be actively involved (through directly employment in all aspects of the production cycle, and as local contractors / service providers); Growers are to be capacitated through structured training, skills development and mentorship programmes to enable them to sustain production, once the Strategic Partner and DRDLR have exited the project; The projects are to have a level of production diversification which does not compromise sugar production, but complements the cash flows of the Co-operatives. From top to bottom: Mission, Mpumalanga Langeloop Small-scale growers projects, and planting operations at Kwa-Zubane. The Department of Rural Development and Land Reform has emphasized that the implementation of the SSG/ RADP projects must contribute towards improving household food security, employment creation and economic growth in rural areas, which would result in thriving local rural economies. 22 The South African Sugar Journal M a r c h 2 0 1 2
Communication of RADP to farmers / project deliverables. SASA to facilitate initial meetings Business Plans developed and signed off by Co-operatives Project implementation / progress payments / delivery notes to be signed by Co-operatives SPA GPS all fields and provides DRDLR with maps Implementation methodology agreed upon- tenders issued / contracts signed Signing of commitment contracts with DRDLR Annual implementation plans developed and signed off by Co-operative Implementation methodology The DRDLR has indicated that it is a non-negotiable that members of the Co-operative and / or community based contractors be used in the implementation of the project. In addition all labour involved in the production cycle must be sourced from member of the Co-operative and / or the immediate community. The generic project implementation methodology is reflected diagrammatically above. Apart from the focus on production, job creation and enterprise development, the DRDLR will also embark on the household profiling of community members in the respective municipal wards, in order to address the other socio-economic needs of the community. The household profiles will form the basis for a Comprehensive Rural Development Plan (CRDP) for the community, which will be used as a tool for leverage other resources for the community. Anwhar Madhanpall General Manager: Land Reform South African Sugar Association