1. DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES AGRICULTURAL POLICY ACTION PLAN (APAP) Progress and Budget
MAY 2015

2. Acronyms Agricultural Policy Action Plan (APAP)
Industrial Policy Action Plan (IPAP)
National Development Plan (NDP)
New Growth Path (NGP)
Broad Based Black Economic Empowerment (BBBEE)
Gross Domestic Product (GDP)
Small Micro Medium Enterprises (SMMEs)
Environmental Impact Assessments (EIAs)
Department of Agriculture, Forestry and Fisheries (DAFF)
Department of Rural Development and Land Reform (DRDLR)
Department of Social Development (DSD)
Key Action Programme (KAP)
National Agricultural Marketing Council (NAMC)
International Trade Administration Commission (ITAC)
Department of Water and Sanitation (DWS)
Department of Environmental Affairs (DEA)
Economic Development Department (EDD)
Department of Science and Technology (DST)
Department of Trade and Industry (DTI)
Agricultural Research Council (ARC)
Industrial Development Corporation (IDC)

3. Background
4 March 2015: Cabinet approved the Agricultural Policy Action Plan (APAP) and the Agriculture, Forestry and Fisheries Strategic Framework with recommendations for amendments:
Replace import substitution with import replacement;
Greater alignment with Bio-economy Strategy.
Agriculture, Forestry and Fisheries Strategic Framework is the strategic response to the National Development Plan and a cabinet directive; and the Agricultural Policy Action Plan is the programmatic response.

4. Background
APAP:
Is modelled on the Industrial Policy Action Plan (IPAP)
Comprises of Sectorial Key Action Programmes (commodities) and Transversal Key Action Programmes (e.g. research and innovation)
Introduces an export-led and import replacement agriculture strategy
Provides a long-term vision and focused interventions in a 5-year rolling schedule, to be updated annually.
2014: State of the National Address identified nine priorities for economic growth one of which is the “Revitalization of the Agriculture and Agro-processing value chain.” (identified as priority 1).

5. Linking our Plans, APAP and SONA
SONA focus areas include APAP Transversal Key Action Programmes
APAP programmes
Agri parks
Land reform
Producer support
Technology & innovators
Spatial Planning
Market access
Production
Red meat
Poultry
Sugar
Wine
Fruit & vegetables
Wheat
Forestry
Aquaculture
Biofuels 5

6. National Development Plan (NDP) Argument
Vision 2030 of the National Development Plan calls for an inclusive rural economy wherein:
The National Development Plan and Medium Term Strategic Framework sets out clear targets and actions.
Create 1 million jobs: potential jobs in communal areas and jobs through commercial agriculture;
Acquire 2 million hectares of strategically located land by 2019;
Develop 1 million hectares of under-utilised land in communal areas and among land reform projects for production;
Provide support to smallholder producers in order to ensure production efficiencies – new smallholders by 2019;
Food Security: By 2030, every household is able to say “We HAVE food on the table.”

7. National Development Plan (NDP) Winners

8. Sectoral and Transversal Key Action Programme (KAP) of the Agricultural Policy Action Plan
Purpose: To begin to address growing concentration within the market which impacts job creation, transversal action programmes seeks to localise food networks, through infrastructure development, incentivising support for SMMEs and small-scale producers across agriculture, forestry and fisheries value chains.
Fetsa Tlala
Climate Smart Agriculture
Trade, Agri-business Development and Support
Biosecurity
Strategic Integrated Projects 11
Research and Innovation
Criteria for selection: contribution to food security, job creation, growth potential, and potential contribution to trade balance (increasing production with the view of ensuring import substitution)
Red Meat
Poultry
Fruit and Vegetables
Wine
Wheat
Sugar
Forestry
Fisheries: aquaculture and small- scale fisheries schemes
Biofuels (sorghum; sugar beet and sugar cane etc.)

9. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019
UNFUNDED INTERVENTIONS
BUDGET
FUNDED NTERVENTIONS
BUDGET (Grant funds, DAFF budget and private sector investment)
Poultry
Poultry research programme, identifying more energy-efficient broiler production systems; and to develop higher yielding soybean varieties, through partnerships with private sector seed companies
Partner with private sector seed companies in order to develop higher yielding soybean varieties.
Develop integrated national surveillance and monitoring programmes for poultry diseases of importance (Avian Influenza and Newcastle Disease).
Implement the independent meat inspection scheme R
Amend soybean grading regulations to align with industry requirements.
Implement, manage and monitor the Compulsory Community Vet Services programme .
Training of the extension officers and state veterinarians and para-veterinarians on poultry production.
Develop and implement a national Poultry support programme in partnership with South African Poultry Association (SAPA)
Provincial poultry production projects funded through CASP and Ilima Letsema R 9

10. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019
UNFUNDED INTERVENTIONS
BUDGET
FUNDED NTERVENTIONS
BUDGET (Grant funds, DAFF budget and private sector investment)
Red Meat
Determination of the livestock census for the categorisation of South African livestock production systems;
Animal Recording and Improvement Schemes Programme, to develop, maintain and improve productivity of a healthy national herd;
Establish a National Livestock Identification and Traceability System;
Implement the independent meat inspection scheme .
Improved HR capacity for veterinary services, both national and provincial)
Improvement of laboratory (diagnostic) services R
Institute and coordinate Compulsory Community Service;
Enhance LandCare and Rangeland (Veld) Monitoring and Improvement Programme.
Retrain extension officers according to industry requirements and capacitate extension services to support and educate to improve animal husbandry and productivity of the national herd (e.g. better quality meat and hides meat) - ARC R 10

11. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019
UNFUNDED INTERVENTIONS
BUDGET
FUNDED NTERVENTIONS
BUDGET (Grant funds, DAFF budget and private sector investment)
Sugar
Develop new production models to enhance small scale grower sustainability
Introduce a small scale grower programme to compliment MAFISA loan facility (seed cane, fertilizer and infrastructure)
Introduce a programme to support communal irrigation infrastructure development in Mpumalanga Province
Enhance the existing extension partnership delivery through exposure to multi-stakeholder processes programme with Provincial Departments
Develop a customized provincial mentorship partnership programme for land reform growers
Develop a comprehensive co-operative support programme for small scale grower co-operatives
Develop an enterprise / contractor programme for small scale grower. R 11

12. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019
UNFUNDED INTERVENTIONS
BUDGET
FUNDED NTERVENTIONS
BUDGET (Grant funds, DAFF budget and private sector investment)
Wheat
Expansion of the National Research Programme for Wheat. R
National Wheat Production Programme through CASP and Ilima Letsema;
National training programme for farmers and extension officers. R
Fruit and Vegetables
Expansion of the National Research Programme for horticultural sector, e.g. breeding programme, pest and disease programme. R
National Fruit and vegetable Production Programme through CASP and Ilima Letsema R
Biofuels
National feedstock production programmes;
Expansion of the National Research Programme to develop higher yielding varieties of targeted feedstock crops
Private Public Partnerships (PPP) in the supply of feedstock R 12

13. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019
UNFUNDED INTERVENTIONS
BUDGET
FUNDED NTERVENTIONS
BUDGET (Grant funds, DAFF budget and private sector investment)
Forestry
Timber Production: Refurbishment of Category B & C plantations
Small Growers Support (financial and non-financial)
National Forestry Research and Development Strategy
The National Forest Protection Strategy R
Timber Production: Re-commissioning of the Western Cape and Mpumalanga
Plantations identified for FSC Certification certified
Processing: pole treating and sawmilling including pelleting, support small pole treating and sawmilling operations R 13

14. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019
UNFUNDED INTERVENTIONS
BUDGET
FUNDED NTERVENTIONS
BUDGET (Grant funds, DAFF budget and private sector investment)
Aquaculture
Implementation of 23 Projects
Inter-Departmental Authorisations Committee
Aquaculture Development Fund
Industry-wide marketing efforts
Legislative reform
Globally recognised monitoring and certification system
Capacity building for support services
Preferential Procurement. R 14

15. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019
UNFUNDED INTERVENTIONS
BUDGET
FUNDED NTERVENTIONS
BUDGET (Grant funds, DAFF budget and private sector investment)
Fetsa Tlala
Mobilise and support smallholder and subsistence producers to better utilise fallow land in communal areas, and land reform projects, targeting 1 million hectares by March 2019 R R
Climate-smart Agriculture
National Climate Smart Agriculture (CSA) Research and Development
M&E Framework for CSA to monitor extent of uptake of CSA
CSA incentive programmes R
Develop Climate Smart Agriculture capacity building programme for extension officers including establishing on-farm demonstrations in all 9 provinces;
Expanded CSA research programme R 15

16. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019
UNFUNDED INTERVENTIONS
BUDGET
FUNDED NTERVENTIONS
BUDGET (Grant funds, DAFF budget and private sector investment)
Trade, Agri-buss Dev & Support
MCEP window  designed for developing an incentive programme for Smallholder Farmers and SMMEs across the value chain;
National training programme in financial literacy for farmers and SMMEs across the value chain. R
Strengthen, and monitor trade agreements in Africa, Asia and Europe;
Strengthen, and monitor trade agreements in Africa, Asia and
Europe;
Integrated Agriculture Development Finance Policy. R
SIP11
SIP11 Anchor Projects R R
Research and Innovation
Recapitalization of National Research Assets
To be determined
Agricultural Information Management System
Research and Development Projects R 16

17. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019
UNFUNDED INTERVENTIONS
BUDGET
FUNDED NTERVENTIONS
BUDGET (Grant funds, DAFF budget and private sector investment)
Biosecurity
Modernisation and upgrade of OBP to ensure sustainable livestock vaccine production
Continued manufacturing of public good vaccines (commercially non-viable) as a state service to smallholder and commercial farmers
Provision of smallholder farmer preventative veterinary medicine training and starter livestock health packs essential for management, production, and disease control R
Continue with the Bactrocera invadens (BI) management and eradication programme.
Orchards phytosanitary compliance verification for designated export markets, and phytosanitary inspections R
TOTAL R R 17

18. UPDATE ON AGRICULTURAL POLICY ACTION PLAN (APAP)
Finalised APAP and Agriculture, Forestry and Fisheries Strategic Framework was approved by Cabinet;
DAFF and DRDLR as the co-drivers of the technical team is devoting the last quarter (Jan-March 2015) to fast tract readiness to implement on the 1st April . Focus areas:
Spatial Planning –mapped out each commodity at a district and local municipal level, including available state land and land acquired for redistribution. The purpose is to guide provinces and all relevant stakeholders with project planning.
Robust stakeholder and communications strategy: The success of APAP is in advocating a paradigm shift in agriculture. New entrants and a long term perspective must be advocated for. A communication strategy is currently in draft form.
Institutional Arrangements – design and finalise an integrated planning, M&E approach between DAFF and DRDLR, through which DLACs will form the basis for project planning. Further publishing quarterly and annual reports, and to test the assumptions and unintended consequences of APAP decisions.

19. UPDATE ON AGRICULTURAL POLICY ACTION PLAN (APAP)
Production – listed all projects by commodity to ensure production and job creation targets per commodity are met. This currently excludes Department of Rural Development and Land Reform projects who will be providing the information within the next week.
Land Acquisition – ensuring that the land acquired speaks to the spaces and commodities identified in APAP hectares allocated.
SIP11 - Infrastructure development (off-farm infrastructure) toward the development of localised value chains for rural economic development. Further alignment to APAP commodities are underway.
Training – orientating extension support to become specialists in specific commodities, and designing training programmes towards priority commodities in APAP. Further developing creative models for attracting new entrants into the sector. The National Training Programme will include a list of projects by commodity (underway).
Research and Development – gearing our R&D programmes and projects towards meeting APAP objectives. R15 billion of R&D project applications and approval are underway.

20. UPDATE ON AGRICULTURAL POLICY ACTION PLAN (APAP)
Market Access and Trade Development – Improve market access and trade.
Expanding the issuing of Good Agricultural Practices (GAP) Certificates of compliance.
Cabinet approved preferential procurement framework and set- asides targeted for smallholder producers and SMMEs in the Agro- processing sector is underway, and in partnership with the Department of Trade and Industry and National Treasury.
Review of terms and conditions of Manufacturing Competitiveness Enhancement Programme (MCEP) in support of smallholders and SMMEs in the sector.
Implementation of the Agriculture Trade and Competitiveness Strategy.
7 Value Chain Round Tables established – sector organisations still to confirm by letter to the Director General.

21. UPDATE ON AGRICULTURAL POLICY ACTION PLAN (APAP)
Funding Model
More effective application of annual available budget ± R 34 bill (DAFF, DRDLR and LandBank).
Integrated Funding Model being development
Create a common database to reduce duplications and ensure synergy in the implementation of our various programmes and projects
Secondary funding
Establish the available budget extent and influence targeting of agriculture investments by other departments (DST, DWS, EDD, DTI and DSD) and public entities.
External funding: Massmart Supplier Development Fund; AFGRI Development Fund; funds to be mobilised through the CAADP Investment Plan
Partnerships: Off take agreements e.g., Tiger Brands
Public Sector Procurement: 75% Local Procurement

22. Aspiration: By 2019 APAP will
With all conditions favourable, APAP could potentially:
Increase in number of smallholders from in 2012 to ;
Increase value add of Agriculture, Forestry and Fisheries (AFF) from R42,5 billion in 2012 to R48,9 billion in 2019 (or 2% real growth per year);
Real increase in value of AFF net exports from an annual average of R5,1 billion in 2012 to R5,8 billion in 2019 (or 2% real growth per year);
Decrease in value of fertiliser and machinery imports at an annual average of R9,6 billion in 2012 to R7,4 billion (or 3% real decline per year);
Reduction in the share of households experiencing hunger ‘sometimes’, ‘often’ or ‘always’ from 10,8% of households in 2012 to 8,0% of households in 2019;
Increase in number of jobs in Agriculture, Forestry and Fisheries from average for 2012 to (an additional jobs) and a potential 1millon jobs by 2030.