BRIEFING NOTE TO THE PORTFOLIO COMMITTEE ON NCERA FARMS DDG:PRM

BACKGROUND  State purchased the farms in 1983 /84 in order to implement the Ciskei Independence agreement  1991 former Department of Development Aid through its Development Agent South African Development Trust Corporation (SADT / STK) undertook a planning investigation of Whittlesea Farms better known as Released Area 60 (RA 60) with ha SADT land.  Area Breakdown:  ha transferred to Imidushane Tribe under Chief Jongilanga.  ha utilised by the Needs Camp Community no longer suitable for agricultural purposes;  ha settling Lillyvale farm dwellers; ha additional for Imidushane Tribe  ha making portions from Silverdale, Springvale, Wellcome Home, Flintham, hilltop and Liilyvale as well as the farms Rocklands and Yellowoods were de-proclaimed as SADT land and were transferred to DPW   State purchased the farms in 1983 /84 in order to implement the Ciskei  Independence agreement

BACKGROUND  Department of Development Aid and SADTC were disbanded during 1992  SADTC/STK phased out during 1994 through proclamation 111,1994  Area suitable for farmer settlement was ha  The then National Department of Agriculture took over the Shareholding of Whittlesea Farms (PTY) LTD  The National Department of Agriculture appointed an implementation agent ( Agreement signed in1997)  State owned farms are: Rocklands, Silverdale, Springvale, Hilltop, Flintham, Welcome Home, Lillyvale and Yellowwood known as Ncera Farms  DAFF is the sole shareholder in Ncera Farms (PTY) LTD 3

Background  Public entity established in 1990’s  SADT (South African Development Trust Corporation managed Ncera from 1984 until 1993  Classified as Schedule B in PFMA (Act of 1999)  Managed by Ncera Development Corporation (NADC) until March 2008 on consultation basis  Setup to manage land purchased by government from commercial farmers  Total area ha  Appointment of Board of Directors for Ncera Farms in 1996  Staff of NADC absorbed by Ncera on April 2008  Board consisted of 5 representative plus farmer representative (6)  (3) National,(1) Provincial (1) local and (1) farmers  All government representatives resigned in January 2009  In 2009 Mr. Andile Hawes and Mr. Moshe Swart appointed as caretakers 4

5

ACTIVITIES AT NCERA  NCERA CENTRE: Used as a service centre  The following services are offered to the farmers who have been settled on Ncera land as well as to the neighbouring communities:Agricultural extension services Land preparation, layout and contract ploughing Training and advice on fresh produce production and marketing Preparation of business plans and financial record keeping Cost effective repairs to and maintenance of agricultural machinery and equipment Postal services and administrative advice Animal husbandry and animal improvement schemes The centre also sells fresh milk to the local communities at a minimum price of R3.50 per litre. The workshop also provides a repair and maintenance service to the community tractors and tractors that belong to the centre. 6

ACTIVITIES AT NCERA  DAIRY At the end of March 2010: 225 dairy animals. (See page 11 paragraph 2) milk production for the year was liters: Liters were sold and liters was fed to calfs. Three bull calves and thirteen cows re sold. The total income for the dairy was R (ref. page 26) At present the heard consist of 207 animals of which 167 are females and 40 males at various ages. Thirty-two males and eight old cows were sold during the Last six month. An average of 49 cows was in milk over the past six months producing liters. Selling price of milk was 1 to 99 liters – R6.00 and 100 liters and more R 3.50 per later.  BEEF At the end of March 2010: 110 head of cattle. (ref.page 11 paragraph 1) nothing was sold during the year (ref.page 25) During the past 6 month 5 old cows and 4 tollies were sold at an auction yielding an Income of R The heard at present consist 99 animals, 74 female 7

ACTIVITIES AT NCERA Contract services  Mechanization was done at rates acceptable by the local Department of Agriculture and are as follows: Plough - R610 per ha Disc - R400 per ha Plant - R420 per ha Spray - R300 per ha  The total income for the year was R (See page 24) 8

ACTIVITIES AT NCERA  In 2005 Ncera farms were disposed of to land reform beneficiaries.  Thirteen (13) properties with ha were disposed of for the settlement of farmers  One property known as Rocklands with ha was reserved to be allocated to farm dwellers.  The farms are allocated to 10 beneficiaries, 3 females and 7 males.  The allocation is in the form of a permission to occupy the properties.  A submission has been made to the Department of Public Works for approval to lease these properties. 9

DISPOSAL PROCESS FOLLOWED  The Ncera farms are administered by the Directorate: Land Settlement, Department of Agriculture, Forestry and Fisheries, Pretoria, in terms of the State Land Disposal Act, Act 48 of This act makes provision for the disposal of certain State Land and for matters incidental thereto, and to prohibit the acquisition of State Land by prescription.  A total of thirteen (13) properties, consisting of nine (9) economic units were advertised on the Daily Dispatch and the Eastern Province Herald on the 4 th and 11 th of March 2005 respectively.  A total of thirteen (13) properties, consisting of nine (9) economic units were advertised on the Daily Dispatch and the Eastern Province Herald on the 4 th and 11 th of March 2005 respectively. The interview panel consisted of officials from the Department of Agriculture Forestry and Fisheries (DAFF), Eastern Cape Provincial Department of Agriculture, Eastern Cape Provincial Land Reform Office, National Department of Public Works and Food Allied Workers Union (FAWU). 10

Farm sizes & farmers 11 NameProperty descriptionExtent 1.Silverdale farming Co- operation Portion 2 Farm 865, Silverdale & Portion 12 Farm 1025 Silverdale 88, Ms M A De Bees Portion 2 Farm 1045 Silverdale 219, Mr N Maqokolo Portion 1Farm 1297 Hilltop 332, Mr Jongile Mlota Portion 1 Farm 1021 Rocklands Cash Store 0, Mr Z Lucas Matinise Portion 1 Farm 866 Silverdale 379, Miss P N ZungulaPortion 7 Farm 1025 Silverdale 51,3767

Farm sizes & farmers 12 NameProperty descriptionExtent 7.Mr L.V Ntikinca Portion 2 Farm 1023 Springvale 172, Mr M E Qwabe Portion 3 Farm 1036 Flintham & Portion 8 & 9 Farm 1037 Flintham 171, Mr E MakisiPortion R , Mrs TsweliPortion 1 Farm ,1938

JOBS CREATED Employment  The Company employed 35 people in the following positions  CEO(Passed on - September 2010 and buried on 28 th September 2010)  CFO; Accounting officer; Farm Manager; Trainer; Agric. Trainer; Technical Trainer;  Supervisor; Milkers - 4 Herdsman - 3 Labours - 11 Workshop ass.- 2, Clerks - 2 Watchmen - 5 At present the total employees are a complement of 30. Three laborers retired and one passed away  Grant 2,800,000 (current), 2,550,000 (09/10) 2,395,000 (08/09) % increase 6.47%

14 agriculture: DEPARTMENT: AGRICULTURE REPUBLIC OF SOUTH AFRICA 14 Financials Budget 2010/ /10 R 2008/09 R % Change Own Revenue 1 338,000914,0001,174,000(22.14) Grant2,800,0002,550,0002,395, Total Income4,138,0003,464,0003,569,000(2.94) Actual Expenditure 4,138,0003,673,0003,430, Net profit-209,000139,000

CONCLUSSION  Land capability report will assist the process going forward  DAFF is in discussion with DRDLR for possible additional land to ensure that farms becomes profitable  The economic viability of the farm already within DAFF will be done  The farmers currently occupying land have permission to occupy the land however engagements with Public works are currently undergoing.  Future :  Recommend the Minister to appoint board members by end of November  Future is to consider permanently transferring the farms to lessee.  Look into the future role of the centre in terms of its impact to the community and the surrounding farmers 15