1. AGRICULTURAL VALUE CHAIN
5 YEAR BUSINESS PLAN

2. Introduction
a) Sector History and contribution to SA Economy ( )
Graphical Representation for the periods on :  i)
Contribution to GDP
See graph
ii)
Employment Levels
iii)
Export (% of Revenue)
See graphs
iv)
Technology
Diverse technology up and down the value chain (varies from basic to highly sophisticated technology) v)
Other Appropriate information for the sector 
1. Food Security (Global Food Security Index)
2. Rural Economy (Chapter 6 of NDP)

3. CONTRIBUTION TO GDP
Agro-Food/Beverage/Fibre Value Chain estimated at 14% of GDP (OECD, 2007;
UNIDO, 2009 – quoting World Bank figures)

4. EMPLOYMENT LEVELS Number of Jobs in Primary Agriculture
NB: No disaggregated figures available for secondary agriculture employment

5. EXPORTS (PERCENTAGE OF REVENUE)

6. SA Agricultural Trade Balance

7. Introduction b) Sector Trends and Key Success Factors Trends : i)
Trends : i)
Profitability and competitiveness of sector under pressure
ii)
Loss of agricultural land to mining and urbanisation
iii)
Changes in logistics / Degradation of infrastructure
(Road/Rail/Harbour facilities/Rural security/Laboratories/Services)
iv)
Deteriorating regulatory, veterinary & extension services by
Government v)
Reduced Government investment in Research & Development,
disease control and plant/animal health
vi)
Entrenched dualism in sector

8. Introduction b) Sector Trends and Key Success Factors
Key success factors: i)
Development of local processing capacity and subsequent increased production capability
ii)
Global Market Developments
iii)
Adoption of Conservation Agriculture and other critical sustainable agricultural initiatives (“More with less”)
iv)
Adoption of new technologies v)
World-class institutional structure & capacity
(Strong value chain cooperation and competition)
vi)
Common vision towards food security and food safety

9. Sector Strategy and Plan
a) Sector Vision
To achieve a sustainable and globally competitive agricultural sector that significantly contributes to inclusive GDP growth and ensures food security for the country through the efficient use of available resources by all participants while providing safe and nutritious food to consumers.

10. Sector Strategy and Plan
b) Key Focus Areas i)
Expansion of Markets - internationally and locally
(Exports/Trade & non-tariff barriers/Increased R&D/Beneficiation)
ii)
Training and skills development
iii)
Feasible financing opportunities for new farmers
(Development and commercial finance)
iv)
Climate change adaptation and disaster management v)
Pest and disease management, including food safety considerations

11. Sector Strategy and Plan
c) Sector Objectives (5 Years)
2019
2020
2021
2022
2023
2024 i)
Investment in R mn (GCF-PA)
16 500
17 820 
19 060 
20 600 
22 240 
24 020 
ii)
Employment (New Jobs in PA)
20 000
20 000 
iii)
Trade Balance in R mn (+)
35 000 
37 000 
39 000 
41 500 
44 000 
46 500 
iv)
Global Food Security Index (45)
45 
43 
41 
39 
37 
35 
vi)
Sector Transformation
(no Sector Scorecard)*
vii)
Statutory Transformation Levies
R51,5mn
R54,6 mn
R57,8 mn
R61,3 mn
R65,0 mn
R68,9 mn
viii)
Agricultural Debt (R bn) Development Finance (R bn)
185 5 
200 7 
215
10 
231
13 
247
17 
258
22 
ix)
Other appropriate information for the sector
 *Various documented transformation initiatives and large enterprises have B-BBEE Scorecards 
Note: No statistics available for value chain on Youth Employment; Gender Diversity; Supply Chain; Social Contributions.

12. Sector Strategy and Plan
d) Key Programmes / Activities to Support / Realise objectives 
Objective
Programme i)
Investment
 Advocate for enabling policy environment
Agri-Development Agency Fund (R5,5 billion) (3(c) below)
Various private sector initiatives
ii)
Job Creation
Jobs Fund Access (~R1 billion) (3(c) below) 
Expansion in especially high-value fruit export industries
Various other initiatives, e.g. SIZA
iii)
Others
Implementation of Sector and Sub-sector Objectives 

13. Policy Constraints and Success Inhibitors
a) Requried Policy Changes  i)
PPP to assist with supply chain management
(Regulatory / FTA's / PTA's / Trade remedies & policy)
ii)
Adoption & support of new technology & R&D
(EPR/Crisp-R/Energy/Water/Climate change/PBR/Biosecurity)
iii)
Financing initiatives for new entrant farmers
(Title Deed / Loans / Drought assistance / Blended finance / Insurance)
iv)
Maintenance and extension of private property rights, incl. land & water v)
Turn-around strategy and implementation of infrastructure plan
(Road / Rail / Harbours / Energy / Water)

14. Policy Constraints and Success Inhibitors
b) Sector Success Inhibitors i)
Lack of relevant and feasible trade policies to meet new global and local consumer demands
ii)
Declining investment and capability in R&D
(ARC / DAFF / DRDRL / Inspection Services / Plant & Animal Health, etc.)
iii)
Lack of coordinated and targeted infrastructure investment, e.g. water, ports, etc.
iv)
Unco-ordinated Government programmes and support systems (National vs Provincial, Inter-Departmental, etc.) v)
Lack of targeted incentives to increase productivity & transformation in sector
(Tax relief/Service delivery/Tariffs)
vi)
Lack of capacity and skills (Legal registrations / Regulatory services / SETA's)
vii)
Illegal imports, international subsidies, crime and security.

15. Policy Constraints and Success Inhibitors
3c) Government Support Required 
R millions
2019
2020
2021
2022
2023
2024 i)
Soft loans
(Government support)
R2,75 bn
R3,03 bn
R3,33 bn
R3,66 bn
R4,03 bn
R4,43 bn
(Private sector contribution)
ii)
Crop insurance:
Developing (75% subsidy)
Commercial (25% subsidy)
R18 m
R207 m
R25 m
R227 m
R32 m
R247 m
R40 m
R272 m
R48 m
R297 m 
R59 m
R322 m 
Iii)
Biosafety for sector as whole + Plant & Animal Heath (Add.)
R43 m
R46 m
R49 m
R52 m
R55 m
iv)
JV and BEE incentives 
R1 bn
R1,1 bn
R1,21 bn
R1,33 bn
R1,46 bn
R1,61 bn v)
Research and Development investment*
1% AgGDP
1,3% AgGDP
1,6% AgGDP
1,9% AgGDP
2,2% AgGDP
2,5% AgGDP
vi)
Implementation of Sector Objectives
R27,5 m
R30,3 m
R33,3 m
R36,6 m
R40,3 m
* Primary Agriculture

16. Sector Commitment Statement
Industry is fully committed to the successful implementation of the five-year sector plan to benefit agriculture and the South African economy and nation as a whole through an inclusive M&E PPP structure

17. THE END QUESTIONS