1. REVITALIZATION OF THE AGRICULTURE AND AGRO-PROCESSING VALUE CHAINBy
Department of Agriculture, Forestry and Fisheries
Department of Rural Development and Land Reform
24 JUNE 2015

2. INTRODUCTION
The purpose is to update the Portfolio Committee on Rural Development and Land Reform on
the status of the State of the Nation Address (SONA) priorities on Revitalization of agriculture and agro-processing value chains and Agri-parks.
the integration of Agricultural Policy Action Plan (APAP) and Agri-parks.

3. Contents
Strategic Overview
Governmental initiatives 3

4. Key Growth Constraints
Strategic Overview
GROWTH TARGET: Annual increase of 0.5% (Current contribution to GDP: 2.5%)
Current
Status (Jun.15’)
Index of production
output in agro-
processing,
unchanged
103.9 (unadjusted)
Gross value add for
Agriculture;
Forestry &
Fisheries increased
by 5.6% in 2014.
Total jobs in
Agriculture
increased by
, between
2014 and 2015
(total of ) \
2019
Target
Growth
increase of
2.5% (0.5% p.a.)
Percentage
change in
Gross Value Add
of 10% (2% p.a.)
Job increase of (
p.a.) and 1 million
by 2030
Challenges
Key Interventions
1. High Inputs Costs [animals and other products (11,3%), Animal feed 10,2%) of total expenditure]
2. Competing land use
3. Anti competitive behaviour as a result of growing market dominance
4. Climate change: drought, floods, fires
1. Agri-Parks
2. Fast Tracking Land Reform
3. Producer Support
4. Nine (9) Strategic Value Chains
5.Research and Innovation
6.Market Access and Trade Dev
Key Growth Constraints
Enablers
1. Policy Certainty
million ha of land (10%
arable of which 1.5% is high
potential)
3. Agriculture and
agro-processing labour
intensive
4.Growing demand for food and
agro-products 4

5. Strategic Overview… Multiplier Effects
R1 investment on increase in GDP
R1 million investment on job creation
R1 investment on export receipts
R1 investment on fiscal revenue 5

6. Contents Strategic Overview Government initiatives:
- No critical challenges , and on
schedule or completed.
- No critical challenges, but behind
schedule.
- Critical challenges, and behind
schedule
- Undetermined 6

7. Target or catalytic effect
Agri-Parks
KEY DECISIONS
Target or catalytic effect
CHALLENGES
PROPOSAL
Technical capacity at District level
Project Management Support Unit established
Fast Track regulatory approvals
Utilise multi-sectoral team established to deal with EIA’s; water approvals; etc to reduce time
Strategic Scope:
Crowding in private sector investment in agro-processing; local economic development and job creation
Target (2016/17)
Establish Agri-Parks in 44 districts
Jobs target (2019)
Detailed calculations will be based on business plans per site
Gross Value Add (2019)
Free State Agri-Parks
PROGRESS
TIME
LEAD: DRDLR
Activity
Start date
End date
36 of the 44 districts have confirmed sites
Feb-15
May-15
Prototypical agri-park completed; evaluation criteria developed
May 2015
36 of the 44 districts have confirmed the sites; 7

8. Prototype Agri-Park Completed
Agri-Parks
PROGRESS
TIME
LEAD: DRDLR
Prototype Agri-Park Completed
Activity
Start date
End date
Farmer and stakeholder consultation
Feb 2015
June 2015
Business plans being developed (agro processing; market access) (all Provinces)
August 2015
Production plans and capacity building plans underway for all sites (quickwin projects fully costed);
projects started to increase production
July 2015
Infrastructure plans; designs; approvals; construction (commence August 2015);
construction started in NW
May 2015
Market Access
DAFF to lead in opening up market opportunities, and providing market access.
Provinces busy with market plans both domestically and internationally
September, 2015
Training and capacity building
DAFF to lead in providing all required training, both through extension services, and private public partnerships with the private sector.
April 2015
March 2016
36 of the 44 districts have confirmed the sites; 8

9. 36 of 44 Agri-Park sites selected
Province
Site (district municipality)
Eastern Cape
Ncora (Chris Hani), Mtata (OR Tambo), Matatiele (Alfred Nzo), Lady Grey/ Sterkspruit (Joe Gqabi), Butterworth (Amatole)
Free State
Springfontein (Xhariep), Phuthaditjhaba (Thabo Mofutsanyane), Thabanchu (Mangaung), Wesselsbron (Lejwelephutsa)
Gauteng
Randfontein (West Rand)
Limpopo
Tzaneen (Mopani), Groblersdal (Sekhukhune), Modimolle (Waterberg), Aganang (Capricorn), Nwanedi (Vhembe)
KwaZulu Natal
KwaDukuza (Ilembe), Umgeni LM area (Umgungundlovu), Horseshoe Farm -Izingqoleni area (Ugu) Dundee (uMzinyathi), Vryheid (Zululand), Dannhauser (Amajuba), Ebutha farm (state land), Umzimkhulu (Harry Gwala), Eshowe (Uthungulu), Okhahlamba LM area (uThukela), Mkhuze (Umkhanyakude), KwaDukuza (Ilembe)
Mpumalanga
Bushbuckridge (Ehlanzeni); Mkhondo (Gert Sibande; JS Moroka (Nkangala)
Northern Cape
Kuruman (John Toalo Gaetsewe), Springbok (Namakwa)
North West
Springbokpan (Ngaka Modiri Molema), Vryburg (Ruth Segomotsi Mompati), Makapanstad (Bojanala) 9

10. Fast tracking Land Reform
KEY DECISIONS
Target or catalytic effect
CHALLENGES
PROPOSAL
Protracted process of acquiring land in variuos provinces
Expedite the completion of revising business process of acquiring land to established uniformity across provinces
Strategic Scope:
New policy framework for Land Reform piloted and finalised.
Agrarian transformation;
Target (2019)
50:50 Policy Framework piloted with 10 properties;
Production Target (2019)
2 million hectares of strategically located high-value agricultural land acquired for key APAP commodities
PROGRESS
TIME
Activity
Start date
End date
100 submissions received for piloting 50:50 policy, from which 10 properties will be selected.
February, 2015
September, 2015
Of the ha, 100% are acquired, and 100% are transferred.
April 2015
March 2016
LEAD: DRDLR
36 of the 44 districts have confirmed the sites; 10

11. Improving Producer Support11
KEY DECISIONS
Challenge
Proposal
Ineffective models of producer support. Absence of uniform criteria and definitions. Unable to effectively plan, invest or measure smallholders
A new policy and model for Producer Support (with particular emphasise on smallholder) supported by a review of the existing financial instruments
Slow pace in the issuing of water licences
Proposed Incentive Programme for Climate Smart Agriculture (CSA) remains unfunded.
To submit a list of strategic projects to DWS for fast tracking
To submit a proposal to the Green Fund.
Competing demands of land
PDALF & SPLUMA to deal with protection of Agric. Land. In consultation with DMR & DRDLR, to finalise how deal with co-existence with mining.
Target or catalytic effect
Strategic Scope:
South Africa’s Producer Support Estimate is currently 3,2%, versus 4,6% for Brazil, 7,1% for the US, and 18,6% for the OECD average. Improved producer support will create an enabling environment improve comparative advantage.
Target (2019)
To increase Producer Support Estimate from 3,2% to 5%.
PROGRESS
TIME
Activity
Start date
End date
Comprehensive Producer Support Policy Framework & Integrated Agriculture Development Finance Policy, finalised for cabinet submission.
Feb 2015
Aug. 15
Implementation of AET strategy for training of smallholder farmers.
Aprl-15
Mar-16
Cofimvaba agricultural school revitalisation (DST funded)
Total number of farmers supported through CASP and Ilema: ~ farmers, R2.1 bil
LEAD: DAFF
36 of the 44 districts have confirmed the sites;

12. Break Down of National Training Programme
Province
Beneficiaries for Credit Bearing Training
Beneficiaries for Non Credit Bearing Training
Total Beneficiaries To Be Trained
Eastern Cape
310
1930
2240
Free State
2010
855
2865
Gauteng
535
2770
3305
KwaZulu Natal
765
196
961
Limpopo
9789 71
9860
Mpumalanga
3249
Northern Cape
1718
North West
350
Western Cape
140
2924
3064
TOTAL
13 899
13 713
27 612 12

13. Target or catalytic effect
Production: Poultry
KEY DECISIONS
Target or catalytic effect
Challenge
Proposal
Ready-to- roll projects blocked
Political intervention in LP Project: 2000 jobs + revitalise disused broilers
Import (dumping) e.g., AGOA
Provinces to cluster projects e.g. 5 GP poultry projects into bankable poultry
High input costs
PPP with DTI, EDD around IDC investment in crushing facilities.
Agri-Park to deal with high input costs
Strategic Scope:
To contribute to 1 million hectares of under-utilised land in communal areas
To contribute to 2% annual growth in Gross Value Add in Agriculture.
Target (2019)
Add jobs to the current jobs through increased poultry production of 663,500t by 2019.
Add jobs through expansion of hectares of soya production.
Increased contribution to gross value of Agriculture GDP from R32.9 bil (21.8%) to (25%) by 2019.
PROGRESS
TIME
LEAD: DAFF
Activity
Start date
End date
Private Sector Invest: To plant 687,300 hectares, producing 942,850 tons soya beans (↑36,7%)
Apr-15
Mar-16
Public Sector Invest.
Land under acquisition = 1 536ha
Hectares of soya:3 647ha[-44,053ha]
[Production in tons and total value add to be determined ]
Limpopo: Lebowakgomo Chicken Abattoir
36 of the 44 districts have confirmed the sites; 13

14. SOURCE: … 14

15. Target or catalytic effect
Production: Red Meat
KEY DECISIONS
Target or catalytic effect
Challenge
Proposal
20% growth in consumer demand, met by 10% imports
Import replacement through the commercialisation of communal herds
Veterinary services inadequate and I in accessible
Funding proposal to implement OIE gap report recommendation
Commercialisation of communal herd owning 40% of national herd.
Buy-in and PPP with traditional authorities for effective expansion of the communal herd.
Strategic Scope:
To contribute to 1 million hectares of underutilised land in communal areas
To contribute to 2% annual growth in Gross Value Add in Agriculture.
Target (2019)
Targeting jobs ( jobs in beef and jobs for mutton) translated from expanded production of t (BFAP).
PROGRESS
TIME
LEAD: DAFF
Activity
Start date
End date
Private Sector Invest (2014): No. of livestock: 13,896 cattle (↑0.25%); 24,048 sheep (↓1.96%).
April 2015
March 2016
Public Sector Invest.
Land under acquisition = ha (size of farms)
Total hectares for livestock production = million ha (farm size) [Production output in tons and total value add to be determined]
140 Veterinarians will be deployed by Q4
Free State: construction of the 14 animal handling facilities
36 of the 44 districts have confirmed the sites; 15

16. SOURCE: … 16

17. Production: Wheat and other crops
KEY DECISIONS
Target or catalytic effect
Challenge
Proposal
Import 50% of wheat . Progressive replacement of wheat by canola and soya
Research on suitable wheat cultivars
40% of input cost is from fertilizer.
DMR, DTI and DAFF to review feasibility of SA becoming self reliant in fertilizer and in agricultural mechanisation.
Strategic Scope:
To contribute to 1 million hectares of under-utilised land in communal areas
To contribute to 2% annual growth in Gross Value Add in Agriculture.
Target (2019)
To increase production from 1,2 mil tons by an additional tons by 2019.
To create an additional 8,000 new jobs to the existing 28,000 by 2019.
To expand areas planted by an additional 61,000 hectares .
PROGRESS
TIME
Activity
Start date
End date
Private Sector Invest (2014): The sector is projected to plant 481,300 hectares of wheat (↑1% ).
Apr-15
Mar-16
Public Sector Invest.
Total hectares for Wheat (CASP and Ilima Letsema) = 150 hectares (farm size) [- 96,110ha p.a]
April 2015
March 2016
LEAD: DAFF
[- 96,110ha]36 of the 44 districts have confirmed the sites;
36 of the 44 districts have confirmed the sites; 17

18. SOURCE: …

19. Production: Fruit and Vegetables
KEY DECISIONS
Target or catalytic effect
Challenge
Proposal
SPS matters (CBS)
19 Fresh Produce markets derelict
Infrastructure investment in NFPM in collaboration with CoGTA
Strategic Scope:
To contribute to 1 million hectares of under-utilised land in communal areas
To contribute to 2% annual growth in Gross Value Add in Agriculture.
Target (2019)
Currently, over 50% of fruit produced is exported, and less than 20% of fruit and 46% of vegetables are sold through National Fresh Produce Markets (NFPM).
To increase the output of NFPM by 10% and exports by 20%.
Western Cape: Hortgro tree planting project – Ceres
PROGRESS
TIME
LEAD: DAFF
Activity
Start date
End date
Private Sector Invest: To put ha under production, with an expected export volume of 1,7 million tons, a total production ~2.6 million tons.
Apr-15
Mar-16
Public Sector Invest.
Total hectares under production for Fruit and Vegetables = ha (farm size)
Orange River Vineyard Project, female smallholders, 500ha
Wolfberg Fruit Processors – Agri Hub (DST)
[- 96,110ha]36 of the 44 districts have confirmed the sites;
36 of the 44 districts have confirmed the sites; 19

20. SOURCE: …

21. Target or catalytic effect
Production: Sugar
KEY DECISIONS
Target or catalytic effect
Challenge
Proposal
Land claims
To encourage that all sugar plantations under land claims are kept under sugar production through strategic partnerships.
Strategic Scope:
To contribute to 1 million hectares of under-utilised land in communal areas
To contribute to 2% annual growth in Gross Value Add in Agriculture.
Target (2019)
Expand small scale grower production in communal areas by hectares by 2019
8000 jobs preserved, new jobs created through the renewable energy and biofuels interventions.
2% biofuels penetration about 400 million litres per annum) into national liquid.
PROGRESS
TIME
LEAD: DAFF
Activity
Start date
End date
Private Sector Invest (2015): The sector is projected to plant hectares of sugar cane and 18 million tons of cane crushed.
April 2015
Mar-16
Public Sector Invest.
Total hectares under sugarcane production = hectares (farm size) - ↓2776ha p.a.
Production in tons to be determined
March 2016
[- 96,110ha]36 of the 44 districts have confirmed the sites;
36 of the 44 districts have confirmed the sites; 21

22. Target or catalytic effect
Production: Wine
KEY DECISIONS
Target or catalytic effect
Challenge
Proposal
Greatest's contributor to agricultural exports/trade but is the least transformed sector
PPP agreement, and charter for the industry to address transformation
Strategic Scope:
To contribute to 1 million hectares of under-utilised land in communal areas
To contribute to 2% annual growth in Gross Value Add in Agriculture.
Target (2019)
There is currently ha under vineyard production and there is a potential to increase by ha by 2019.
Wine industry employs people and will expand by to a total of by 2019.
Wine industry contributes R30 billion to South African GDP there is a potential to increase up to R32 billion in 2019.
Western Cape: De Goree (Robertsons)
PROGRESS
TIME
Activity
Start date
End date
Private Sector Invest (2014): The sector is projected to plant a little over 100,000 hectares of vineyards, a total of 2 000ha of new plantings, and about 1.5 million tons of wine grapes.
April 2015
March 2016
Public Sector Invest: Total hectares: ha (farm size) RECAP and Enterprise Dev.
Production in tons to be determined
LEAD: DAFF
[- 96,110ha]36 of the 44 districts have confirmed the sites;
36 of the 44 districts have confirmed the sites; 22

23. 23
SOURCE: …

24. Technology Dev. and Innovation24
KEY DECISIONS
Target or catalytic effect
Challenge
Proposal
Under investment (-0.1%) in R&D
Capacity: no’s, expertise
Infrastructure
Inability to apply/integrate innovation
Aging senior researchers
Proposal (cost benefit anaflysis) for investment in the research and innovation value chain
Strategic Scope:
To contribute to 1% annual growth in Gross Value Add in Agriculture.
R&D agenda linked to key sectoral interventions and Value-chains:
Target (2019)
2–3 % of Agriculture GDP invested in R&D annually
An effective integrated sector R & D governance system
Critical mass of competent and appropriately skilled and placed researchers and extension personnel.
PROGRESS
TIME
Kwazulu Natal: Post-graduates in Agric. Engineering at the Univ. of Kwazulu Natal
Activity
Start date
End date
Status
Model for R&D governance structures developed with clear TORs completed
Apr-15
Mar-16
RFP for R&D projects issued
15 post graduates funded (DAFF) and 135 students (post graduate + interns) by DST
E-agriculture - DST-funded initiative at ARC.
Manufacture and distribute WEMA drought resistant maize seed
LEAD: DST
[- 96,110ha]36 of the 44 districts have confirmed the sites;
36 of the 44 districts have confirmed the sites; 24

25. Market Access and Trade
KEY DECISIONS
Target or catalytic effect
Challenge
Proposal
75% of local procurement under discussion between National Treasury and Department of Small Business Development
DAFF to apply for designation of certain products for smallholders.
Greater synergy between IPAP and APAP
IPAP and APAP 2016/17 to determine common commodities to support and strategic approach.
Strategic Scope:
To increase market access for agriculture, forestry and fisheries products, both domestically and internationally (increased export trade and import replacement)
Equitable and active participation by SMMEs and smallholders across the value chain.
Target (2019)
200 GAP certified smallholders
Implementation of 75% local procurement specific to smallholder producers.
PROGRESS
TIME
Activity
Start date
End date
SADC-EU-EPA
SA will be allowed, for the first time to export tons of sugar into the EU duty-free on an annual basis.
Wine will be allowed into EU on a duty free basis, up from 47 million litres to 110 million litres.
Tripartite Free trade area (COMESA; SADC and EAC)
20 Farms are identified for final audits and SA-GAP certification.
Negotiations initiated with Fort Cox College to expand existing MOU to offer record keeping workshops nationally to support for PPECB’s SA-GAP certification programme.
April 15’
March 16’
LEAD: DTI
Tripartite Free trade area (COMESA; SADC and EAC)
SACU has exchanged Tariff Offers with Kenya, Tanzania, Uganda, Burundi & Rwanda].
[- 96,110ha]36 of the 44 districts have confirmed the sites;
36 of the 44 districts have confirmed the sites; 25

26. RECOMMENDATIONS It is recommended that the Portfolio Committee
Take note of the status of the SONA priorities on Revitalization of agriculture and agro-processing value chains and Agri-parks.
Take note of the integration of APAP and Agri-parks.

27. KE YA LEBOGA
THANK YOU