1. ENVISIONING SOUTH AFRICAN AGRICULTURE IN THE NEXT FIVE TO TWENTY YEARS: SALIENT FACTORS FOR CONSIDERATION PRESENTATION COMPILED AND PRESENTED BY: MOKUTULE JOE KGOBOKOE DEPUTY DIRECTOR GENERAL : FOOD SECURITY AND AGRARIAN REFORM DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES TEL: 012 319 6168 FAX: 012 319 6259 E-MAIL: MokutuleK@daff.gov.za MokutuleK@daff.gov.za

2. 2 LEGISLATION AND POLICY MANDATE (NATIONAL AND INTERNATIONAL)  Effective land reform and creation of one million jobs through agricultural development.  Eradication of poverty, reduce unemployment and eliminate inequality. 2 The National Development Plan: Vision 2030 Nov 2011 “Rapid transfer of land to black beneficiaries without distorting land markets or business confidence in the agribusiness sector, offer white commercial farmers and industry bodies the opportunities to significantly contribute to the success of black farmers through mentorships, chain integration, preferential procurement and meaningful skills transfer”

3.  The AgriBEE: Affirmative action in Agriculture,  Finalization of the codes of agriculture for the agricultural sector. 3 LEGISLATION AND POLICY MANDATE (NATIONAL AND INTERNATIONAL) CONT… Broad-based Black Economic Empowerment Act

4. 4  Sectoral Intervention. Agricultural Policy Action Plan (APAP) - Policy/Soy Beans/Maize Integrated Value Chain - Red Meat Value Chain - Wheat Value Chain - Vegetable Value Chain - Biofuels Value Chain - Forestry - Small-Scale Fisheries - Aquaculture - Policy/Soy Beans/Maize Integrated Value Chain - Red Meat Value Chain - Wheat Value Chain - Vegetable Value Chain - Biofuels Value Chain - Forestry - Small-Scale Fisheries - Aquaculture LEGISLATION AND POLICY MANDATE (NATIONAL AND INTERNATIONAL) CONT…

5.  Transversal Intervention 5 -Research and Innovation -Promoting Conservation Agriculture -Trade Agribusiness Development and Support SIP11 -Bio-Security -Land Reform -Research and Innovation -Promoting Conservation Agriculture -Trade Agribusiness Development and Support SIP11 -Bio-Security -Land Reform LEGISLATION AND POLICY MANDATE (NATIONAL AND INTERNATIONAL) CONT…

6.  Improved planning and investment coordinating.  Massifying investment in human development and skills;  A stronger and more coherent approach to partnership;  Revising and refining infrastructure and mechanisation support programmes;  Scaling up scheme based interventions; and  Phasing and expanding systematic interventions (conducive economic environment for smallholder development) 6 Strategic Plan for Smallholder Farmer Support LEGISLATION AND POLICY MANDATE (NATIONAL AND INTERNATIONAL) CONT…

7.  Constitution, 1996: The Bill of Right  13.8 million individuals experience inadequate access to food (STATS- SA, GHS 2011)  Increased and better targeted public spending in social programmes with impact on food security;  Effects to increase food production and distribution including increased access to production inputs for smallholder agriculture sector;  Leveraging Government food procurement to support community based food production initiatives and smallholder; and  Strategic use of market intervention and trade measures which promote food security. 7 National Policy on Food and Nutrition Security: Sept 2012 LEGISLATION AND POLICY MANDATE (NATIONAL AND INTERNATIONAL) CONT…

8.  Putting million hectares into crop production.  Increase food production capacity of subsistence and smallholder production;  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; and  Create job opportunities within the agricultural sector. 8 LEGISLATION AND POLICY MANDATE (NATIONAL AND INTERNATIONAL) CONT… Fetsa Tlala: Integrated Food Production Initiative : Sept 2012 Financial Year Year 0 2013/14 Year 1 2014/15 Year 2 2015/16 Year 3 2016/17 Year 4 2017/18 Year 5 2018/19 Cumulative Targets (HA) 350 000470 000570 000710 000860 0001 000 000

9.  Norms and standards for extension and advisory service;  Extension – to – farmer ratio;  Skills capacity of extension personnel; and  Uniform extension performance management system. 9 LEGISLATION AND POLICY MANDATE (NATIONAL AND INTERNATIONAL) CONT… Draft National Policy on Extension and Advisory Services

10.  Effective coordination of AET;  Broadening access to AET; and  Ensuring AET quality  Trade opportunities  Exchange Programmes  Technology Transfer  Training 10 LEGISLATION AND POLICY MANDATE (NATIONAL AND INTERNATIONAL) CONT… National Strategy on Agricultural Education and Training: 2005 Established BRICS Landscape

11.  10% of national budget ring fenced for agriculture;  Inter and Intra Africa Trade;  Agricultural development as a priority investment area;  Uniform norms and standards for Agricultural Development in Africa. 11 LEGISLATION AND POLICY MANDATE (NATIONAL AND INTERNATIONAL) CONT… Comprehensive Africa Agricultural Development Programme

12. MILITATING FACTORS SA ORGANIZED AGRICULTURE  Four distinct farmers Unions  Differing priorities and goals  Fragmented approach to agricultural development  Lack of bargaining power  No forged partnerships between state and structures of organized agriculture DEFINITION AND QUALIFICATION OF A FARMER  Generalization  “Can every Tom, Dick and Harry become a Farmer?”  Examples of Kenya’s National Agricultural Sector Extension Policy (NASEP); European Union’s Common Agricultural Policy (CAP); Asia and the Pacific (Definition of farmer associated with the size of the farm and dependence on household members for most of the labour) (Thapa, 2009 and FAO, 2010) 12

13. SA GENERALIZED CATAGORIES OF FARMERS  No clear delineation between commercial, smallholder and subsistence in terms of the support given.  Little differentiation per project within each “category”  Lack of farmer register  Ineffective agricultural information management system RESOURCE AND CAPITAL INTENSIVE FARMING  Technology mostly originating from overseas suppliers;  Rising costs of inputs (fuel, electricity, fertilizers, machinery, labour);  Future demand for labour – more skilled people; and  Absence of SA National Agricultural Mechanization Strategy. 13 MILITATING FACTORS CONT…

14. FRAGMENTED AND NOT USER-FRIENDLY FUNDING INSTRUMENTS  LRAD Funds, CASP, MAFISA, Ilima/Lestema, Land Care, Khula, Land Bank, Commercial Banks;  Repayment of loans problem for new entrants;  AgriBEE which exclude capacity building;  Lack of holistic approach to financing; and  Ineffective Project Planning and Monitoring. LIBERATION OF THE LOCAL AGRICULTURAL MARKET  Exposure of the sector to foreign and subsidized competition.  Structural adjustment: economies of scale to survive: Bigger farms. 14 MILITATING FACTORS CONT…

15. HANDICAPPED LAND REFORM  Ownership of land through land restitution, land reform and tenure security – political imperative versus maintenance of the productive capacity of agriculture;  Lack of purpose specific support models for post settlement;  No joint marketing ventures; and  Failing land reform could result in food shortages, high food prices, loss of employment opportunities and instability. 15 MILITATING FACTORS CONT…

16. LABOUR RELATIONS  2010 Vulnerable Workers Resolutions (Working Conditions, Social determinants of health, Security of tenure and Training and Empowerment)  2011 Human Rights Watch Report  2012 Farm Workers Strikes in the WC  Threat of increased farm mechanization which may lead to instability in the sector  Agricultural Social Compact? 16 MILITATING FACTORS CONT…

17. 17 CONCLUDING REMARKS  It is Forums like this which must find permanent solutions for the sector.  The country and the sector is in our hands – whether we build or destroy posterity will hold us responsible.  From the Government side, Agriculture is a practical industry, there is no room for theorists  “A journey of a thousand miles begins with a single step” SUN TZU AT ALL TIMES, WELL DONE IS BETTER THAT WELL SAID