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Creating a Local Competitive Advantage for Ilembe: Agriculture Results of the PACA Exercise 20 - 28 October 2003.

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Presentation on theme: "Creating a Local Competitive Advantage for Ilembe: Agriculture Results of the PACA Exercise 20 - 28 October 2003."— Presentation transcript:

1 Creating a Local Competitive Advantage for Ilembe: Agriculture Results of the PACA Exercise October 2003

2 Part 1: Introduction

3 What is Participatory Appraisal of Competitive Advantage (PACA ® )? Participatory Appraisal of Competitive Advantage Involve local stakeholders Motivate local stakeholders to take an active role in an LED initiative Transfer know-how to local stakeholders and businesses Do a quick scan of the local economy Assess and refocus ongoing local economic development activities Identify strengths, skills, talents and opportunities Identify business and LED opportunities

4 What is the objective of PACA? Identify, with a rapid appraisal, the main strengths and weaknesses of the local economy and its main sectors (duration: weeks) Identify options for practical activities to strengthen the competitiveness of firms -- Criteria: –feasible with local resources –quickly implimentable (starting next week) –quick, visible results (with 3 months)

5 What have we been doing? Kick-off workshop on 20 October 2003 From 21 to 28 October 2003: –Six mini-workshops with about 100 participants –A dozen interviews –Workshops in the coastal and hinterland regions

6 Part 2: Diagnosis

7 Main findings in Agriculture Looming crisis of the sugar market Communication breakdown between large commercial farmers and the Ilembe District Municipality Large vs. Small farmers is not the most relevant typology (categorising) Huge opportunities for emerging farmers in the sector Solutions are already there - like high quality diversified vegetables and value adding processing

8 Looming crisis of sugar cane Stability of cane market resulted in poor creativity Millers monopolize the market Quota and cane supply agreements are hand-cuffing emerging sugar farmers Failure to acknowledge and recognise non- sugar cane farmers

9 Communication breakdown There is a lack of communication of farmer needs and government expectations between the large commercial farmers, government in general and IDM

10 Large vs. Small farmers is not the most relevant typology (categorising) Such categorisation leads to channeling support where it is not needed Categorising in terms of small and large is debilitating - especially for “small” yet well established farmer e.g. a farmer may be “small” but highly effective and successful Need to categorize farmers according to level of establishment, their being commercial and non-commercial and being included in the value-chain

11 Huge opportunities for emerging farmers in the sector Very good opportunities for sectoral growth through: –value-adding –strategic partnerships between emerging and commercial farmers for purposes like skills transfer, optimized production, gain easy access to markets etc.

12 Solutions already there There are farmers producing high value vegetable crops in Ilembe There are farmers who are processing their crops on their farms Such farmers are very willing to share information and to do mentoring

13 Part 3: Proposals

14 Key Proposals for the Ilembe District Learnership to upgrade level of skills Mentorship Developing Markets Organic Farming Uses of Marginal Land Communication Support Institutions Promote Diversification

15 Learnership as a skills- transfer method Commercial farmers: –Development of workplace skills plans (learnerships) in order to take advantage of Skills Levy in order to develop potential skilled employees or subcontractors

16 Embedded Mentorship Mentorship to be an integral part of the partnerships between commercial and emerging farmers –e.g. Apprenticeship Mentorship based on a partnership agreement Technical support should be embedded in the value chain

17 Quantify and confirm markets Create linkages based on confirmed markets, e.g. –Romac Farms –African Farms –Bloemendaal –Rolon Sugar Estate –And many more…..

18 Organic Farming Pursue an organic traditional grower approach Organic products has a higher premium than normal products

19 Uses of marginal land Marginal land can be used for hydroponic farming (tunnels) Aquaculture (fish farming) by-product (nitrate rich water) can be used in hydroponic farming

20 Create a platform for communication Regular business breakfast of commercial farmers with Ilembe District Municipality Support and participate in shows of the Dept. of Agriculture Create formal linkage between SASA and Ilembe

21 Dissemination of Information and communication Produce a Newsletter for emerging farmers Broadcast via radio stations (talkshows) –Ilembe FM launch pending Establishment of an Ilembe Agricultural desk

22 Supporting Institutions Workshop with supporting institutions and associations –Guiding question: How to move to more adequate segmentation? –How to cater for the specific support needs of dynamic emerging farmers?

23 Promoting diversification Arranging a monthly event (e.g. topical inputs) for dynamic emerging farmers –This will also encourage and promote newcomers to the market Promote sharing of information and best practices

24 So what next….? Way forward workshop Integration into Ilembe LED strategy Submit comprehensive report to Ilembe District Municipality (IDM) IDM to place results into 2004 IDP Monthly follow-up activities until April 2004

25 Thank you for your attention!

26 The PACA AgricultureTeam Conrad Jardine (GTZ) Madumelana Mhlongo (XD consultants) Rehana Pilodia ( mesopartner Africa )


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