1. Department of Agriculture, Forestry and Fisheries Select committee briefing on: Strategic Plan and Budget Vote 2011/12 – 2014/15 Director-General 24 May 2011

2. Presentation Outline Overview Acronyms Performance of the sector & resources allocation Programme 3: Food Security and Agrarian Reform Programme 5: Forestry and Resources Management Programme 6: Fisheries Management Budget summary Conclusion 2

3. 3 Acronyms  ATI Agricultural Training Institute  CCS Compulsory Community Service  PBR Act Plant Breeders’ Rights Act  WCRL West Coast Rock Lobster  IFSS Integrated Food Security Strategy  KIM Knowlegde and Information Management  PMDS Performance Management and Development System  ICT Information and Communication Technology  IPAP Industrial Policy Action Plan  FPE Fish Processing Establishment  FTE Full Time Equivalent

4. 4 Overview I am pleased to brief the Select Committee on the Strategic Plan for the Department of Agriculture, Forestry and Fisheries 2011/12 to 2014/15. Section 27(4) of Public Finance Management Act requires that the accounting officer of a department must submit measurable objectives within its department’s programmes to the National Assembly The Strategic Plan complies with the guidelines provided by National Treasury and the Department of Public Service and Administration (DPSA). As required also by PFMA and Treasury Regulations, we will present a detailed plan for year one of the multi- year period The presentation will focus on deliverables for the MTEF cycle for 3 budgetary programmes for 2011/12 to 2013/14, as allocated by National Treasury However the presentation will focus on Food Security and Agrarian Reform, Forestry and Fisheries as per the request from the Select Committee

5. 5 Sector performance  Agriculture Production  Producer prices of agricultural products  Gross value of agricultural production  Production costs  Forestry  Fisheries sector

6. 6 Agricultural production  Estimated volume of agricultural production in 2009/10 was 4,8% higher than in 2008/09  Volume of field-crop production reflected a 3,1% increase as a result of an improvement in the production of summer grains  Maize production increased with 1,4 million tons or 10,8% against the previous season, followed by sugar cane with 468 000 tons or 2,5% and Lucerne hay with 374 000 tons or 33,9%  Horticultural production decreased by 1,6%, mainly because of a drop in the production of citrus and subtropical fruit  Production of oranges decreased by 5,5% and that of potatoes by 3,6%  Animal production increased by 8,8% as a result of increases of 41,1% in fresh milk production and 5,6% in stock slaughtered  However, pastoral products (wool, mohair, karakul pelts and ostrich feathers) showed a decrease in production of 3,1%

7. 7 Volume index of agricultural production

8. 8 Producer prices of agricultural products  Producer prices of agricultural products decreased on average by 2,2% from 2008/09 to 2009/10.  The average price of field crops decreased by 14,4%  The prices of winter grain dropped by 26,4%,  Summer grain prices dropped by 23,1%,  The prices of cotton dropped by 17,8%,  While oilseeds and dry beans dropped by 7,0%,  Producer prices of horticultural products rose by 7,0% from 2008/09  Prices of animal products rose by 1,9%.

9. 9 Producer prices of agricultural products

10. 10 Production costs  Expenditure on intermediate goods and services during 2009/10 is estimated at R71 955 million, a rise of 6,4% from R67 647 million in 2008/09  Expenditure on farm feeds accounted for 22,9% of the total expenditure, followed by 16, 1% for fuel, 12% for farm services and 10% for maintenance and repairs of machinery

11. 11 Production costs

12. 12 Forestry sector  The area under forestry is about 1,28 million ha or approximately 1,0 % of the total RSA land area of 122,3 million ha.  Although the area under plantations has decreased over the past few years from1 518 138 ha in 1997 to about 1 257 341 ha in 2008  The volume of production has increased from 18 641 228 m³ to 20 100 000 m³ during the same period.  The forestry sector and forest products contributes about 1,3 % to GDP  In terms of regional GDP, forestry contributes:  KwaZulu-Natal 4,7 %,  Mpumalanga 5,5 %  Eastern Cape 0,7 %  Limpopo about 0,7 %  The export of forest products has increased from R 9,5 billion in 2001 to R14,8 billion in 2008  Imports totalled R 11,3 billion in 2008

13. 13 Fisheries sector SA FISHING INDUSTRY Wholesale value of production 2007 FisheryCatchLandingsWholesale value% of total ( Tons ) ( R'000 )value Demersal: Offshore Trawl167 353116 5792 617 89642.6 Demersal: Inshore Trawl10 6907 355147 6112.4 Total Demersal Trawl178 043123 9342 765 50745.0 0.0 Purse Seine ( Pelagic )421 000 1 388 51722.6 Rock Lobster ( SC) )473335159 2002.6 Rock Lobster ( WC )3 073 533 2718.7 Crustacean Trawl225 18 2100.3 Squid (jigging)6 990 419 4006.8 Tuna Pole4 681 131 4802.1 Line Fish7 363 212 7193.5 Demersal Longlining8 520 270 0004.4 Miscellaneous Nets2 611 23 0610.4 Oysters44 1 7230.0 Mariculture3 211 214 4113.5 Seaweed10 085 11 2810.2 Total646 319592 0726 148 780100.0

14. 14 Fisheries sector cont… SA FISHING INDUSTRY Wholesale value of production 2009 FisheryCatchLandings Wholesale value% of total ( Tons ) ( R'000 )value Demersal: Offshore Trawl153 932106 8362 531 04443.6 Demersal: Inshore Trawl9 4086 654151 0742.6 Total Demersal Trawl163 340113 4902 682 11846.2 Purse Seine ( Pelagic )425 080 1 464 80325.3 Rock Lobster ( SC) )843392144 2132.5 Rock Lobster ( WC )1 860 359 4786.2 Crustacean Trawl225 18 2100.3 Squid (jigging)7 900 418 7007.2 Tuna Pole3 0853 09576 4331.3 Line Fish7 126 175 1093.0 Demersal Longlining8 906 160 3082.8 Miscellaneous Nets2 611 23 0610.4 Oysters44 1 7230.0 Mariculture1 900 265 0004.6 Seaweed8 138 10 0200.2 Total631 058580 7675 799 176100.0

15. 15 Contribution to GDP  The sector’s relative contribution to GDP has been declining over time – an indication of an economy increasingly more dependent on secondary and tertiary sectors (economic modernisation)  Agriculture component is largest contributor and fishing is the smallest

16. 16 Contribution to GDP Cont...  The sector’s contribution over the past year has been hovering between just under 2% and just over 3%

17. 17 Export Market Growth Table 1: SA’s Growing & Shrinking Export Markets (2008-2009) Growing Export Markets Top 3 products driving total export growth & their individual growth RankingGrowing MarketsTotal Exports Growth 1Kenya165%Maize (295%)Maize Meal (127%)Apples (39%) 2China31%Cotton (385%)Wool (65%)Hides & skins (41%) 3United Arab Emirates28%Chocolate & Cocoa (627%)Tobacco (224%)Grapes (136%) Shrinking Export Markets Top 3 products driving total import shrinkage & their individual shrinkage RankingShrinking MarketsTotal Import shrinkage 1Mozambique-5%Maize Meal (-87%)Sugar (-42%)Maize (-41%) 2Netherlands-5%Lemons (-46%)Meat (-38%)Oranges (-24%) 3Zimbabwe-4%Maize (-82%)Beans (-63%)Rice (-22%)

18. 18 Challenges in the Sector  The unregulated market environment, which exposes the sector to fluctuations in world prices  The decreasing share of field crops in agricultural production and South Africa’s move from being a net exporter of foods to a net importer  The growing dominance of retail chains and an increasing farmer to retail price differential  High input costs for, among others, fertiliser, fuel and feedstock  Poorly skilled subsistence and emerging farmers, who only achieve low production volumes and productivity levels  A lack of agricultural spatial planning and poor infrastructure, which makes it difficult for farmers to liaise with buyers, access markets and boost sales  Poor information and knowledge management for small holder farmers, which prevents them from correctly addressing production challenges and  Agricultural R&D agenda and practical implementation has little impact on the growth and development of the sector

19. 19 Challenges in the Sector: Commercial  There has been a significant increase in the concentration of the commercial sector, as a result of smaller and less efficient business, unable to take advantage of increasing economies of scale, being forced out of the sector  Profitability has increased, but at slower rates, and is attributed to a concentrated few that’s has been able to survive global market and financial challenges  Transformation in the commercial sector in all three sectors (Agriculture, Forestry and Fisheries) remains a challenge i.Differences in interpretation, and implementation. ii.Transformation is still mainly translated as the number of ‘black’ individuals in a company. iii.Challenge with transformation not having significant socioeconomic impact. Plans per programmes

20. 20 Challenges in the Sector: Commercial Cont…  An increase in production in agriculture, has mainly been horticultural crops, with a significant decrease in field crops (source of staple food), and translates into increasing concerns around National Food Security (Household Food Security)  Increasing food prices, and anti-competitive behaviour too impacts on national food security  Limited innovation systems, the slow rate of opening up new markets and value adding opportunities however there are challenges on certain commodities  Many of the challenges stem from a lack of compliance rather than lack of appropriate regulations i.e. poor enforcement

21. 21 Challenges in the Sector: Smallholder  Inadequate s upport services / Extension services essential to grow and develop the smallholder and subsistent sector  Technical support services currently inadequate, there is a need for an upscale and expansion of support offered  Uncoordinated spatial plans to guide implementation of support programmes, access their economic impact and ensure easy monitoring and evaluation

22. 22 Challenges in the Sector: Smallholder Cont…  Inadequate and unstructured intervention in regard to provision of on-farm infrastructure such as water sources (dams, windmills, irrigation schemes) essential for sustainable production  Implementation of the mechanisation support programme very weak due to the lack of a targeted programme  Lack of support for the established small-holders to establish commodity groups  No guaranteed market for products produced by small holders  Poor infrastructure to ensure equitable access to development finance through our grant system and loans programmes  Uncoordinated or lack of targeted training for smallholders

23. 23 Challenges in the Sector: Smallholders Cont…  Aquaculture – Limited investments made in terms of hatcheries, research and disease management to promote aquaculture  Non-existent support (access to equipment, finance, extension and training) for the established small-holders in the fishery industry and small growers in forestry  Inadequate access to agro-processing industries for value addition  Insufficient access to development finance through our grant system and loans programmes i.e fisheries and forestry

24. 24 Policy and programme interventions  Government adoption of the 12 Key Outcomes by the January 2010 Cabinet Lekgotla  Signing of performance agreements and Delivery Agreements with DAFF directly contributes to following 3 Outcomes with clear targets:  Outcome (4): Decent employment through inclusive economic growth  Outcome (7): Vibrant, equitable, sustainable rural communities contributing towards food security for all  Outcome (10): Protect and enhance our environmental assets and natural resources  IPAP 2  New Growth Path  Draft Integrated Growth and Development Path for the Sector  Strategic Plan for smallholder farmers

25. 25 Programme interventions: development targets  Increase the number of smallholder farmers from 200 000 to 250 000 by 2014/15  As a result of the continued success of commercial farming, the number of employees on commercial farms should rise from 780 000 to 800 000 by 2014/15  Aim to place 300000 households in smallholder schemes by 2014/15 (goat, sheep, wheat, aquaculture, forestry, etc.)  145 000 jobs in agro-processing by 2020  5520 jobs Community Works Programme Plan by 2014/15  Rehabilitation of 3.2 million ha of agriculture land by 2014/15  Recovery of targeted fish stocks (abalone, hake and West Coast Rock Lobster) by 10% by 2014/15

26. 26 PROGRAMME’S PLANS OVER THE MTSF PERIOD 2011/12 TO 2014/15

27. 27 Alignment of MTSF Priorities, Key Outcomes and Strategic Goals MTSF Priority AreasKey OutcomesStrategic Goals A comprehensive rural development strategy linked to land and agrarian reform and food security Vibrant, equitable, sustainable rural communities contributing towards food security for all G1: Increased profitable production of food, fiber and timber products by all categories of producers Speed up economic growth and transform the economy to create decent work and sustainable livelihoods Decent employment through inclusive economic growth G1: Increased profitable production of food, fiber and timber products by all categories of producers G4: A transformed and united sectorG5: Increased contribution of the sector to economic growth and development Sustainable resource management and use Protect and enhance our environmental assets and natural resources G2: Sustainable management of natural resourcesG3: Effective national regulatory services and risk Pursuing regional development, African enhancement and enhanced international cooperation Create a better South Africa, a better Africa and a better world G6: Effective and efficient governance Massive programmes to build economic and social infrastructure An efficient, competitive and responsive economic infrastructure network G1: Increased profitable production of food, fiber and timber products by all categories of producers Strengthen the skills and human resource base Skilled and capable workforce to support an inclusive growth path G6: Effective and efficient governance G4: A transformed and united sector Build a developmental state, including improving of public services and strengthening democratic institutions An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship G4: A transformed and united sector G6: Effective and efficient governance Intensify the fight against crime and corruption All people in South Africa are and feel safeG3: Effective national regulatory services and risk

28. Programme 3: Food Security & Agrarian Reform Strategic InterventionsTargets Indicator2011/122012/132013/142014/15 Facilitate the implementation of training extension personnel in technical and generic skills Number of Extension personnel received Training 1 500 Extension Personnel receive training 1 800 Extension Personnel receive training 2000 Extension Personnel receive training 2 100 Extension Personnel receive training Develop appropriate policies towards improvement of extension service Implement approved policies towards improvement of extension service Provide appropriate training to new producers Number of new producers received training 15 000 Agricultural colleges transformed into Agricultural Training institutes (ATI) and centres of Excellence Approve ATI Green Paper Approve norms and standards on agricultural training institutes 60 % of agricultural colleges transformed into ATI and adhering to norms and standards 90 % of agricultural colleges transformed into ATI and adhering to norms and standards 100 % of agricultural colleges (ATI’s) operating as centers of excellence Monitor compliance to food security policy Approved FS policy Develop and approve FS policy Compliance to FS Policy Implement Zero Hunger Strategy Approved Zero Hunger Strategy Implement Zero Hunger Strategy Review Zero Hunger Strategy

29. Programme 3: Food Security & Agrarian Reform Cont… Strategic InterventionsTargets Indicator2011/122012/132013/142014/15 Provide comprehensive support to new producers Number of producers receiving comprehensive production support 15 000 Monitor compliance to the mechanization policy Approved policy on mechanisation support model Develop and approve policy on mechanisation support model Implement the policy on mechanisation support model Develop engineering norms and standards on production technologies Number of production technologies with norms and standards 3578 Audit departmental processes and deliverables aimed at vulnerable groups, youth, subsistence and smallholder producers Transformed sectorImplement findings of DAFF audit report Audit sector processes and deliverables Implement sector audit recommendations

30. 30 Programme Outputs 2011/12  National food security policy approved by Q4  Zero Hunger Strategy approved  15 000 New smallholder producers supported  Mechanisation support policy approved  03 Norms and standards for supporting the subsistence and smallholder producers developed and monitored  15 000 producers trained on targeted programmes  10 Targeted training programmes for producers  ATI Green Paper approved  Norms and standards on agricultural training institutes approved  1000 New producers trained through GADI’s Farmer Training Programme  180 Students trained through GADI’s Higher Education (HE) Programme  14 Training programmes implementing audit report findings  13 villages established  Report on compliance to workers summit resolutions finalised  1600 Extension officers trained on extension suite on line  800 extension officers upgraded qualifications  03 policies on: national extension performance monitoring; establishment of extension professional body; and national extension drafted

31. 31 Resource allocation

32. 32 Programme 5: Forestry & Natural Resources Management 32 Strategic Interventions Targets Indicator2011/122012/132013/142014/15 Create enabling environment for planting 40 000ha Number of hectares planted Implement Forest Sector Charter for planting 10 000 ha Provide support to 10 000 new small growers Number of small growers supported 2500 Support refurbishment and maintenance of 2% smallholder government irrigation schemes Number of irrigation schemes revitalized 0.5% of smallholder government irrigation schemes Facilitate the creation of 5200 job opportunities Number of jobs created1300 FTE

33. 33 Programme 5: Forestry & Natural Resources Management Cont… 33 Strategic Interventions Targets Indicator2011/122012/132013/142014/15 Develop and implement disaster risk mitigation strategies Disaster risk mitigation strategies implemented Disaster risk management system developed Disaster risk management system implemented Disaster risk management system reviewed Develop and implement climate change adaptation plans Climate change adaptation plans implemented Climate change adaptation plans developed Climate change adaptation plans implemented Climate change adaptation plans reviewed 3200ha indigenous forests and woodlands rehabilitated Number of hectares rehabilitated 800ha Increase number of hectares of agricultural land under rehabilitation Number of hectares rehabilitated 800 000 ha Develop and implement disaster risk mitigation strategies Disaster risk mitigation strategies implemented Disaster risk management system developed Disaster risk management system implemented Disaster risk management system reviewed

34. 34 Programme Outputs 2011/12  100 afforestation licenses issued  10 000 ha afforested  300 jobs through wattle jungle conversion and rehabilitation created  10 000 indigenous and fruit trees planted through Greening Strategy implementation  05 livelihood interventions implemented  2500 new small growers supported  800 ha of indigenous forests and woodlands rehabilitated  250 ha of irrigation schemes revitalised  Copying strategy for flood disasters approved  Progress report on the functioning of consultative structures (NARMCO and NDTT) approved  Progress report on implementation of Western Cape flood disaster relief scheme approved  Climate change adaptation and mitigation plan approved  800 000 ha of degraded land rehabilitated  06 wetlands rehabilitated  Land capability and agricultural land zoning for LP and NW provinces mapped  Policy on protection of agricultural land approved  1300 FTE job opportunities created

35. 35 Resource allocation

36. 36 Programme 6: Fisheries Management 36 Strategic Interventions Targets Indicator2011/122012/132013/142014/15 Small-scale Fisheries Policy Policy and regulatory framework implemented Finalization and implement small- scale fisheries policy Implement small- scale fisheries policy Monitor implementation of small-scale fisheries policy and its users Aquaculture Sector Development Increase number of fish farms from 84 to 96 3333 Amalgamated Freshwater and Marine Aquaculture policies National Aquaculture Strategy (NAS) and Action Plan Aquaculture Certification Plan (ACP) and Implementation of the NAS Monitoring of the NAS and Implementation of the ACP Review and amalgamate the Freshwater and Marine aquaculture policies Number of small-holder producer associations established 1322 Community empowerment and support through Working for Fisheries program Implement 50 community projects 1015 10 Facilitate fishery programmes for economic development Increase number of fish processing facilities from 60 to 70 2332 Increase proclaimed fishing harbours from 12 to 19 Plan for proclaimed fishing harbours 3Plan for additional proclaimed fishing harbours 4

37. 37 Programme 6: Fisheries Management Cont… 37 Strategic Interventions Targets Indicator2011/122012/132013/142014/15 Fisheries research to inform Total Allowable Catches /Total Allowable Effort and Stock Recovery Strategy Extent of the recovery of abalone, hake, WCRL and linefish very Develop recovery Plan for abalone, hake, WCRL and linefish Management recommendations towards targets set for the recovery of abalone, hake, WCRL and linefish Integrated Fisheries Security Strategy Approved and implemented IFSS Approve and Implement the strategy Implement and monitor progress Review and enhance the strategy Stakeholder engagement, management and communication Number of sector stakeholder forums in place Improve existing stakeholder forums and establish small scale fishing and recreational fishing forums Maintain and enhance Management Working Groups and Co-Management Committees Integrated Fisheries Security Strategy approved and implemented IFSS Approve and implement the strategy Implement and monitor progress Review and enhance the strategy Marine resource strategy Commercial fishing rights allocated Revise rights allocation policies in affected sectors Rights Allocation Process established Rights allocated for sectors in which fishing rights have expired Rights Allocation Process established for rights that expire in 2015

38. 38 Programme Outputs 2011/12  05 new fish farms established  05 fish farms revitalised  Aquaculture Development Zone (ADZ) established  Status report on fisheries transformation published  02 fish processing facilities established  03 fishing harbours proclaimed  10 Working For Fisheries Programme (WFFP) projects implemented  Research report on scientific recommendations on catch limits for 22 fishery sectors (sardine and anchovy (updated), seaweeds; abalone, linefish, netfish, oysters, demersal sharks, South Coast rock lobster, West Coast rock lobster, white mussel and hake, horse mackerel, tuna pole, Patagonian toothfish, sardine and anchovy (initial), prawns, shark longline, Agulhas sole, squid, tuna and swordfish longline)  2 Feasibility reports on two potential new fisheries approved  Ecological risk assessment report approved

39. 39 Programme Outputs 2011/12 Cont…  Framework for Aquaculture Research Management (FARM) approved  10 research projects implemented through MoUs with universities  1 100 vessel landings inspected in 5 key fisheries  2 joint partnerships with law enforcement and conservation agencies established/formalised  Strategy for hake, West Coast rock lobster and linefish developed and implemented  Rights holders investigated in 5 key fisheries sectors, namely hake, abalone, rock lobster, squid and linefish  40 cases and tip-offs investigated according to service standards  20 joint partnerships with law enforcement and conservation agencies maintained and strengthened  Sea-based inspection of vessels in 5 priority fisheries, i.e. hake, abalone, squid, linefish and rock lobster, and other random sea inspection of vessels in other sectors  Special operations targeting hotspot areas, and vessel deployment plans that are focusing in the hake fishing grounds and pre-identified abalone poaching hotspots enforced  Anchovy Strategy approved  Improved stocks through management recommendations towards targets set for the recovery of hake

40. 40 Programme Outputs Cont…  Guidelines for the FPE Sector approved by Q4  National Plan of Action (NPOA) for Sharks finalised by Q3  Review of hake ERA by Q2-Q4  Fisheries Management Plan (FMP) for large pelagic sector finalised by Q3  Functional working groups and active participation in related forums by Q1-Q3  Rights allocation policies in affected sectors (Linefish, squid, oyster, white mussel, KZN prawn trawl) reviewed and revised by Q4  Established framework for recreational business processes and permitting by Q4  Guidelines for the FPE Sector developed and approved by Q4  2 ERA reports through sector permit conditions reviewed and implemented by Q2-Q4  Draft FMP for linefish fishing sector approved by Q4  2 reports on rights holders performance and fishing sectors approved by Q1&Q2  Hake handline and tuna pole policy reviews documents (2) finalised by Q4  Framework for licensing charter boat operators approved by Q4  Small-scale fisheries policy and implementation plan approved by Q4  Database for small-scale fishers signed-off by Q4

41. 41 Resource allocation

42. 42 Budget summary R thousand 2011/122012/132013/14 Total to be appropriated Current payments Transfers and subsidies Payments for capital assets Total MTEF allocation Administration Agricultural Production, Health and Food Safety Food Security and Agrarian Reform Trade Promotion and Market Access Forestry Fisheries 1 296 958 891 923 1 244 195 191 766 770 711 324 188 531 544 442 884 157 179 90 518 683 579 133 689 759 191 406 966 1 049 684 100 637 60 834 190 499 6 223 42 073 37 332 611 26 298 - 1 460 960 994 257 1 379 713 183 426 902 477 391 199 1 433 107 1 048 396 1 558 992 193 498 935 692 333 523 Total expenditure estimates4 719 7412 039 3932 567 811112 5375 312 0325 503 208 Executive authority Accounting officer Website address Minister of Agriculture, Forestry and Fisheries Director General of Agriculture, Forestry and Fisheries www.daff.gov.za

43. 43 Conclusion  The strategy will be cascaded down to operations for implementation  Operational plans will be developed from strategic outputs, broken down into clear milestones with implementable activities  Operational plans will highlight various action steps to be undertaken in order to address the respective Unit’s priorities, the various deliverables and its associated performance indicators, responsible persons, target dates etc  Individual work plans aligned to the operational plans will be developed to reflect on the aspects of day to day service delivery activities of DAFF to ensure that the DAFF business community is well informed  Service standards and turnaround times will be developed for each service which needs to be reported against on a monthly basis  Monitoring and evaluation will be conducted monthly on planned outputs in the strategic plan and analyses of progress towards achieving strategic plan outputs  The reports will be aligned to the status reported against strategic outputs.  Reports will be produced quarterly and annually.

44. 44 THANK YOU !!!