Creating a nutritious home for all

STRATEGIC ENVIRONMENT Western Cape Department of Agriculture (Prepared by: Dirk Troskie, Specialist Agricultural Economist)

STRATEGIC ENVIRONMENT 1. National Environment 2. Provincial Agricultural Sector 3. National Strategies 4. Provincial Strategies

STRATEGIC ENVIRONMENT 1. National Environment

SA: FOOD PRODUCTION & POPULATION GROWTH Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: Abstract (2008)

SA: AGRICULTURAL IMPORTS & EXPORTS (Nominal values) Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: Abstract (2008)

SA: EXPORTS OF WINE Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: SAWIS (2008)

FAPRI % BFAP BASELINE PRICES: Wheat & Barley Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: BFAP (2007)

BIOFUELS IN THE US Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: OECD/FAO Outlook (2007)

WORLD CLOSING STOCKS Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: OECD/FAO Outlook (2007)

PER CAPITA CONSUMPTION OF MEAT Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: OECD/FAO Outlook (2007)

POPULATION ON CONTINENTS Departement Landbou | Department of Agriculture | Isebe Lezolimo

WORLD POPULATION Departement Landbou | Department of Agriculture | Isebe Lezolimo

ANIMAL PRODUCTS Index of nominal prices Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: OECD/FAO Outlook (2007)

IMPACT ON THE MOST VULNERABLE: LSM1 (Inflation = 6%; Food Inflation = 12%) Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: Own Calculations based on LSM Data (2007)

STRATEGIC ENVIRONMENT 1. National Environment 2. Provincial Agricultural Sector

WESTERN CAPE EXPORTS Departement Landbou | Department of Agriculture | Isebe LezolimoPRODUCTVALUE% of TOTAL CUMUL -ATIVE % % CHANGE FruitR5,18619,4% 75% Wine, beer & spiritsR3,33312,5%31,9%58% FishR2,3118,7%40,6%28,5% Processed foodR1,6846,3%46,9%-2,4% Wood & productsR0,4291,6%48,5%75% Hides, skins, leatherR0,3711,4%49,9%-15,7 MeatR0,2270,9%50,8%-12,5% R13,54150,8% Source: Quantec (2008)

PROVINCIAL AGRICULTURE Departement Landbou | Department of Agriculture | Isebe Lezolimo

COMPOSITION OF WESTERN CAPE AGRICULTURE Departement Landbou | Department of Agriculture | Isebe Lezolimo

HORTICULTURE IN THE WESTERN CAPE Departement Landbou | Department of Agriculture | Isebe Lezolimo

CROP PRODUCTION: WESTERN CAPE Departement Landbou | Department of Agriculture | Isebe Lezolimo

ANIMAL PRODUCTION: WESTERN CAPE Departement Landbou | Department of Agriculture | Isebe Lezolimo

STRATEGIC ENVIRONMENT 1. National Environment 2. Provincial Agricultural Sector 3. National Strategies

Core Strategies Equitable access & privitisation Global competitiveness & profitability Sustainable resource management Complementary strategies Good governance Integrated & sustainable rural development Knowledge & innovation International cooperation Safety & Security STRATEGIC PLAN FOR SA AGRICULTURE Departement Landbou | Department of Agriculture | Isebe Lezolimo

Gazetted 20 March 2008 Objectives Promote Economic Transformation / deracialise Investment programmes Community empowerment ScorecardOwnership Management Control Employment equity Skills development Preferential procurement Enterprise development Rural development Agri QSE (Qualifying Small Enterprises) R5 to 35 million turnover 5 of the seven elements Each 20% Agri EME (Exempted Micro Enterprises) Less than R5 million turnover Deemed level 4 AgriBEE Can use 2 of 7 elements (excluding employment equity) Each 50% AGRIBEE Departement Landbou | Department of Agriculture | Isebe Lezolimo

Redistribution 5 million ha, new producers, 5 Provinces, 2 years Increase black entrepreneurs by 10% Universal access to agric. Support services New Primary producers Farm dwellers Increase agricultural production by 10-15% New Primary producers Farm dwellers Increase agricultural trade by 10-15% New Primary producers Farm dwellers Note: 2014 target is 30% of white owned land LARP Departement Landbou | Department of Agriculture | Isebe Lezolimo

New Primary Producers Communal Farmers Other uses Other uses (food gardens, lifestyle) Farm Dwellers Farm Dwellers (>50% of income) Commercial farmers Citizens TARGET GROUPS: WESTERN CAPE Departement Landbou | Department of Agriculture | Isebe Lezolimo ??? ,5 m

NEW PRIMARY & COMMERCIAL Departement Landbou | Department of Agriculture | Isebe Lezolimo

FARM DWELLERS (>50% of HH income from farming) Departement Landbou | Department of Agriculture | Isebe Lezolimo WhitesAfricanColourdAsianTotal Cape Metropole West Coast Cape Winelands Overberg Eden Central Karoo Total , 717

COMMERCIAL FARMERS Departement Landbou | Department of Agriculture | Isebe Lezolimo MaleFemaleTotal Cape Metropole West Coast Cape Winelands Overberg Eden Central Karoo Total

THE COST OF PRODUCTION (R/ha - Apples) Departement Landbou | Department of Agriculture | Isebe Lezolimo

ANNUALIZED VALUE (R/ha – Apples over 20 years) Departement Landbou | Department of Agriculture | Isebe Lezolimo 5 056

ANNUALIZED VALUE (R/ha – Apples over 20 years) Departement Landbou | Department of Agriculture | Isebe Lezolimo YIELD -20%-10%Base10%20% % PRICEBase % %

STRATEGIC ENVIRONMENT 1. National Environment 2. Provincial Agricultural Sector 3. National Strategies 4. Provincial Strategies

Vision A home for all Goals Grow and share the economy More equal & caring society and eradicate poverty Promote ecologically sustainable development Foster greater spatial integration Effective governance & institutional strengthening IKAPA ELIHLUMAYO Departement Landbou | Department of Agriculture | Isebe Lezolimo

Path breaking Integrated transport Integrated human settlements Skills development Path shaping World Cup 2010 Climate Change Social Transformation (i.e. 21 areas) Path Consolidating Property development EPWPGovernance Poverty reduction & second economy Sectoral Development BPOTourism Oil & gas Agriculture Path supporters Management & review IKAPA ELIHLUMAYO: Interventions Departement Landbou | Department of Agriculture | Isebe Lezolimo

PROVINCIAL SPATIAL DEVELOPMENT FRAMEWORK (PSDF) Departement Landbou | Department of Agriculture | Isebe Lezolimo

SETTLEMENT INVESTMENT PRIORITIES Departement Landbou | Department of Agriculture | Isebe Lezolimo Town Investment: High Dev Potential / Low Need Social Investment: Low Need / High Dev Potential Social & Town Investment: High Dev Potential / High Need Leader Towns: Highest Growth Potential Minimal Investment: Low Dev Potential / Low Need Betty’s Bay Bredasdorp Brenton-on-Sea Caledon Franskraal Groot Brakrivier Hawston Herold’s Bay Jacobsbaai Jamestown Keurboomsrivier Kylemore Langebaan Malmesburg MoorreesburgBitterfonteinBotrivierCalitzdorpClanwilliam De Doorns De Rust DoringbaaiDysselsdorpEendekuilElandsbaaiFriemersheimGenadendalGoedverwachtGoudaGraafwater Cape Town Ashton Beaufort West* CeresElimFranschhoekGansbaaiGeorge*GrabouwHermanusKalbaskraalKlapmutsKnysna*Oudtshoorn*Paarl* Plettenberg Bay Cape Town Beaufort West GeorgeHermanusKnysnaMalmesburyMosselbayOudtshoornPaarlStellenboschSwellendam Vredenburg / Saldanha VredendalWellingtonWorcester Agulhas / Struisbaai AlbertiniaArnistonAuroraBarrydaleBonnievaleBuffelsbaaiCitrusdalDarlingDwarskersbosEbenhaeserGouritsmondGreytonHopefieldJongensfontein

Foundation 1996 Provincial Agricultural summit 2001 Strategic plan for SA Agriculture iKapa Elihlumayo Strategies (MEDS, SIP, PSDF, Social Capital, HCD, etc.) ASGISAProcess PGDS of December 2003 Agriculture identified as key sector Process launch in April 2004 Steering committee 8 persons for each of 4 social partners 8 Focus areas identified First draft released for public comment: 23 June 2005 Signed by partners on 12 May 2006 AGRICULTURAL & AGRIBUSINESS STRATEGY Departement Landbou | Department of Agriculture | Isebe Lezolimo

THE CONTEXT OF FARMING Departement Landbou | Department of Agriculture | Isebe Lezolimo PEOPLE PROFIT PLANET Land, water, climate Π max =∑(U,Y)-∑(P,X) Human nexus Schools Relationships Relaxation Art Remittances Flora Forests Off-farm Tax R/$ Tariffs Subsidies Mining Sea Itsy Fauna Fynbos Feely Tree-hugging HIV/Aids Climate change

THE CONTEXT OF FARMING Departement Landbou | Department of Agriculture | Isebe Lezolimo Land, water, climate Π max =∑(U,Y)-∑(P,X) Human nexus HRD, Social & Farm worker issues Competitiveness, marketing & market access Research & Development Extension & Farmer support Natural resources, food safety & security Physical infrastructure Institutional infrastructure Land reform & Agribee

THE STRATEGY: TURNING FARMING Departement Landbou | Department of Agriculture | Isebe Lezolimo HRD, Social & Farm worker issues Competitiveness, marketing & market access Research & Development Extension & Farmer support Natural resources, food safety & security Physical infrastructure Institutional infrastructure Land reform & Agribee Extension workers -Accelerated approval -Funding vehicle -Revisit ESTA Act - Biodiversity -Food for all -Safe food -Career paths -Security of tenure -Safe social environment -More mentors -Access to tech. -Innovation -Intelligence -Capacity -Climate -Market identification & development -”Branding” the Western Cape -Electricity -Housing -Roads -Education -Agribusiness Investment Unit -Unified agriculture

THE STRATEGY: TURNING FARMING Departement Landbou | Department of Agriculture | Isebe Lezolimo Land, water, climate Π max =∑(U,Y)-∑(P,X) Human nexus HRD, Social & Farm worker issues Competitiveness, marketing & market access Research & Development Extension & Farmer support Natural resources, food safety & security Physical infrastructure Institutional infrastructure Land reform & Agribee Extension workers -Accelerated approval -Funding vehicle -Revisit ESTA Act - Biodiversity -Food for all -Safe food -Career paths -Security of tenure -Safe social environment -More mentors -Access to tech. -Innovation -Intelligence -Capacity -Climate -Market identification & development -”Branding” the Western Cape -Electricity -Housing -Roads -Education -Agribusiness Investment Unit -Unified agriculture

THE STRATEGY Number of projects per focus area Departement Landbou | Department of Agriculture | Isebe Lezolimo FOCUS AREA Nr Land reform & Agribee 19 HRD, Social & Farm worker issues 4 Competitiveness, marketing & market access 13 Research & Development 24 Extension & Farmer support 6 Physical infrastructure 12 Natural environment, food safety & security 4 Institutional arrangements 8 TOTAL90

Provincial Economic Review & Outlook (PERO) Treasury Annual overview State of the Province Address (SOPA) OTHER PROVINCIAL Departement Landbou | Department of Agriculture | Isebe Lezolimo

Four Social Partners Negotiations started on 3 June 2008 Draft Resolution tabled on 18 June 2008 Agreement on: Food Gardens Communal & Household Map, consolidate, expand Review availability of public land Expand School Feeding Map Nutrition Centers (Soup Kitchens) Fill gaps Investigate Food Banks Establish Cooperatives Basic services Threshold for basic services Review indigent policies Focus on 27 Areas Children Women are centre of strategy. Establish strong links with retailers Consult local communities Further debate on long term issues and interventions FOOD SUMMIT Departement Landbou | Department of Agriculture | Isebe Lezolimo

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