1. Presentation to: MINMEC Date:24 April 2015 Venue: Kempton park
Progress on Implementation of the Agrarian Transformation Strategy February 2016
Presentation to: MINMEC
Date:24 April 2015
Venue: Kempton park

2. CONTENT Policy context Policy alignment Vision & Mission
Strategy recap (Brief overview)
Strategy Roll out
KZN Value chain examples
Process of Development
District focus for Value Chain Enhancement
Summary of investment in Districts
Effects of the drought
Achievements on the ground
Challenges experienced in 2015/16 with suggested reviews to Strategy
Reprioritisation for drought

3. Policy Context
The Agrarian Transformation Strategy is informed by the following government polices and mandates:
5 Key National Priorities
NDP;
NGP;
PGDP;
MTSF;
APAP;
KZN Poverty Master Plan;
SONA & SOPA & CABINET DECISIONS &
9 Point Plan.

4. POLICY ALIGNMENT Create 1 million jobs by 2030.
NDP/PGDP
NGP
MTSF
Create 1 million jobs by 2030.
Expand irrigation schemes
Convert under-utilised land in communal areas and land reform projects into commercial production
Pick and support commercial agricultural sectors that have the highest potential for growth and employment
Develop value chain strategies that give new entrant farmers to product value chain.
Support job creation in the upstream and down stream industries.
Ensure food security
Improved and sustainable agrarian and land reform;
Smallholder farmer development and support (technical, financial and infrastructure);
Reduced rural unemployment;
Increased access to quality basic infrastructure and services, particularly education, healthcare and public transport;
Creation of sustainable rural enterprises, supported by increased investment in agro-processing, trade development, access to markets and financial services;
Improved integration and coordination of rural development across all spheres of government.
145,000 new jobs in agro-processing by
2020
new smallholders

5. 9 Point Plan
In 2015 State of the Nation address, the President Mr J G Zuma pronounced a “9 Point Plan’ to grow the economy: 1
Resolving the energy challenge. 2
Revitalising agriculture and the agro-processing value chain. 3
Advancing beneficiation or adding value to our mineral wealth. 4
More effective implementation of a higher impact Industrial Policy Action Plan. 5
Encouraging private sector investment. 6
Moderating workplace conflict. 7
Unlocking the potential of small, medium and micro enterprises (SMMEs), cooperatives, township and rural enterprises. 8
State reform and boosting the role of state owned companies, information and communications technology (ICT) infrastructure or broadband roll-out, water, sanitation and transport infrastructure as well as 9
Operation Phakisa aimed growing the ocean economy and other sectors

6. Working Together For A Secure and Prosperous Future.
Poverty Eradication Master Plan: 5 Pillars and 29 Game Changers
Working Together For A Secure and Prosperous Future.

7. Vision and Mission
Vision: A united, sustainable and vibrant agricultural sector with thriving rural communities in balance with nature.
Mission: To promote, through partnerships, sound agricultural practices that promote economic growth, food security and advancement of rural communities. 

8. TOGETHER WE HAVE MADE KZN A BETTER PROVINCE TO LIVE IN
AGRARIAN TRANSFORMATION STRATEGY
The Strategy sets out agrarian reform which will result in commercialisation of agriculture in KZN by implementation of a various programmes (Pillars); namely:
Land Reform Support Pillar,
Agri-village Pillar,
River Valley Pillar and
Communal Estates Pillar.
These pillars are supported by four building blocks:
Agro-processing
Business Model
Commodity approach,
Scientific Research, Technical Development, Training and Extension

9. STRATEGY BRIEF RECAP

10. Roll Out of the Strategy
Prioritised Projects for implementation
Strategy rollout to Traditional Leaders
Strategy Roll out
Shared the strategy with Land reform beneficiaries
Presented the Strategy and roll out to the Provincial Legislator
Road show to Districts and their leaders
During the roll out of the strategy the different stakeholders were consulted and the strategy was opened for comment
Empowered DARD Extension staff
Interaction with commodity organizations to obtain support

11. Primary Secondary Value Chain Focus TRANSPORT Development INPUT
STORAGE
PRODUCTION
HARVEST
PROCESSING
RETAIL
DARD will focus on primary production and Development
ADA will focus on Secondary production

12. Sugar cane Value Chain Focus
Suppliers
Mechanisation & Inputs
Production
Harvesting
Milling
Bio fuels
Co-generation of Electricity
Sugar
Yellow highlighted areas will be the focus area in the value chain
Wholesalers
Manufacturing of other products
Retailers
Exporters

13. Maize Value Chain Focus
Grains
Maize
Suppliers
Mechanisation Inputs
Production
Harvest
Sell as grain from field
Storage (Silos)
Manufacturing
Animal feeds
Milling
Wholesalers & Retailers
Storage
Pack house & Distribution

14. Poultry Value Chain Focus
Poultry (Broiler)
Infrastructure development for hatcheries, grower houses & abattoirs
Suppliers
Livestock Inputs (medicine & feeds)
Livestock Inputs (medicine & feeds)
Provision of day old chicks
Provision of day old chicks
Sale of Day old chicks to broiler producers
Sell live birds
Production of broilers
Slaughter at Abattoirs
Processing
(Specialised cuts.)
Manufacturing (Polonie)
Wholesale/Retail Outlet

15. Beef Value Chain Focus Beef Districts Uthukela Umkhanyakude
Infrastructure development for grazing camps
Infrastructure development for grazing camps
Suppliers
Livestock Inputs (medicine & feeds)
Production
Feedlots
Sale of livestock
Slaughter at Abattoirs
Processing
(Salt, Smoking etc.)
Manufacturing (Canning)
Wholesale/Retail Outlet
Districts
Uthukela
Umkhanyakude

16. Process for development
Develop upstream and down stream gaps
Identification of Resource potential
Social Facilitation
Commodity alignment with resource potential
Partner with commodities to fill the gaps,
Training & Marketing
selection of land and farmers
Identification of gaps in the value chain
Development of the farms

17. Value chain enhancement with AgriParks drive
Amajuba
Value chain enhancement with AgriParks drive 1 1 3 2
1. Maize / Soya
2. Groundnut
3. Livestock (Dairy, Poultry, Piggeries, & Beef) 1
This is an example of value chains to be supported in a district as identified in conjunction with AgriPark role players

18. Effects of the drought on implementation
Late rains made it impossible to do soil preparations for maize production in most districts
Consideration was given to changing the commodity from maize to dry beans
Some communal estates decided to plant maize in dry soil and others planted late
Both these actions could lead to below optimal yields that could lead to shortfalls in income to support next years planting season

19. Progress with implementation
Communal Estate (CE) establishment – Primary Agriculture
Mechanisation equipment was handed to established Cooperatives and was dependent on the size (hectares) of the CE, slope and soil condition. The ownership however remains with the department for a minimum period of three (3) years.
Funding agreements were signed with the 113 cooperatives and funds transferred
91 Communal Estates have received Tranche 1 payments.

20. PLANNED CE HECTARES PER DISTRICT 2015/16
Districts
No. of Communal Estates
Maize (HA)
Beans (HA)
Soya Beans
Groundnuts (HA)
Chicory (HA)
Vegetables (HA)
TOTAL HA
Amajuba 39
4 830
350 50 -
5230
Umkhanyakude 7
800
450
1250
Zululand 28
8 006
2 903
10 909
Uthungulu 5
222
548
770
Umzinyathi
750
250
200
1200
Uthukela 19
3 248
292 40
3580
Umgungundlovu
850
Harry Gwala 26
1 448
639
1500
3587
Ugu 70
505
575
Ilembe
125 75
Ethekwini
Total
144
19 449
6 362
1 500
700
100
28 202

21. PROGRESS TOWARDS PLANTING OF CROPS:
DISTRICT OFFICE
HECTARES PLANTED
Maize
Dry beans
Soya
Ground nuts
Chicory
Ugu 40
115.1
uMkhanyakude 60
100
Ilembe 45
uThungulu 98
Amajuba
4415
uMzinyathi
450
uThukela
534
646
39.6 6
uMgungundlovu 33
Zululand
Harry Gwala 16 67
575
eThekwini
Total
5241
1418.1
139.6
Total area planted
7379.7

22. TOGETHER WE HAVE MADE KZN A BETTER PROVINCE TO LIVE IN
TRACTOR TRANSFER TO CEs
Land preparation took place in Impendle
The Hon Premier and MEC test driving one of the tractors
that was transferred to Impendle CEs

23. Progress with implementation
River Valley development – mainly primary agriculture
This model concentrates on the development of the river basin where there is a potential for the development of irrigation schemes.
Socio-economic and environmental interrelationship of land and water sources are central in the development of this model.
The department is currently implementing 35 River Valley Projects
Drought prevalence in the province has negatively affected the implementation of this pillar and farmers have struggled to secure water rights

24. Interventions
Beef
Promote commercialisation of livestock through the Communal Estate concept
Promote correct grazing management principles
Introduce castration of non descriptive bulls
Improve genetic material through introduction of pure breed bulls
Develop earthen dams for livestock drinking
Promote auction sales at the 4 sale yards in the area
Promote the use of the 2 feedlots in the district to finish cattle before auctions
Promote good livestock health through primary animal health care.

25. Progress with implementation
Agro-processing & Value chain enhancement
Sugar mill feasibility on the Makhathini
Maize
Seed production - Msunduzi
processing - Dabhazi / Maphophoma Mill
Livestock
Abattoirs at Nongoma, Mhlathuze & Msinga
Tannery at uMnambithi
Dairy development in Greater Kokstad, Ingwe & Newcastle
Wine industry – upgrading winery in Okhahlamba
Fruit & vegetable processing at Hillcrest

26. School Nutrition Programme
School nutrition programme presents a strategic market for local farmers
The agrarian reform strategy supports local farmers to produce fresh produce commodities required for the school nutrition programme
Distribution of fresh produce from farmers to school, is facilitated by agreements between the Department of Education and service providers.
Examples of arrangements currently at Ilembe and uThungulu, where the DoE has entered into an agreement with a fresh produce market or development agency which source fresh produce from the farmers to supply schools

27. KWAZULU NATAL AGRICULTURAL SCHOOLS REVITALISATION GRANT PROGRAMME
Purpose
To revitalisation agricultural schools and colleges to improve their capacity to contribute to skills development, agricultural infrastructure and training in the province.
To create enabling environment for the youth in KZN to participate in the broader agricultural sector, as a career of choice and advancement of business skills in agriculture

28. Challenges with Implementation and suggestions for review
Method of addressing
Commercial Projects struggle to get Development Funding
Agreements to be established with DFI’s
Non bankable Business plans
Training of staff in the requirements of bankable business plans
Incorrect technical information
Involve the Agricultural Scientists in the planning of projects
Lack of involvement of Commodity organisations
Establish agreements with commodity groups and establish a work process with them
Business model of projects non realistic
Focus on what is required for the businesses to work rather than having elaborate structures

29. Drought Interventions
The approved scheme had a phased approach, i.e.:
Phase 1:
Procurement of inputs for Livestock and water harvesting – R 60 Million (R 36 Million – CASP & Ilima Letsema and R 24 million DARD equitable share)
Phase 2:
Aggressive de-worming of livestock (Veterinary services) – R 9 Million (CASP & Ilima Letsema)
Phase 3:
Borehole drilling and dam scooping – R 45 Million (DARD equitable share)
Phase 4:
Joint Drought Intervention DRD&LR
Identification of state land for grazing.
Feedlotting
Phase 5 (R 28 million)
Other i.e.;
Supply of Hay
Water harvesting equipment

30. Thank you