1. ALIGNMENT BETWEEN AGRIPARKS AND DAFF PROGRAMS LAND AND MINERALS SELECT COMMITTEE 28 JULY 2015

2. LAYOUT  BACKGROUND  BACKGROUND ON AGRI-PARKS FOCUS  BACKGROUND ON FETSA TLALA  FETSA TLALA: INTEGRATED FOOD PRODUCTION INITIATIVE  PROGRESS TOWARDS THE ATTAINMENT OF 1 MILLION HECTARES  OBJECTIVES OF FETSA TLALA VS THOSE OF AGRI-PARKS  FETSA TLALA FOCUS AREAS AND AGRI-PARKS FOCUS  COMMON AREAS OF BENEFICIATION  DAFF’S ACTIVITIES AND LINKAGE TO THE AGRI-PARKS  FETSA TLALA SUPPORT AND LINKAGE TO AGRI-PARKS – SILOS FROM DAFF  LINKAGE - THREE DRDLR BASIC UNITS OF THE AGRI-PARKS  AGRI-PARKS VS CASP AND ILIMA/LETSEMA PROJECTS SITES  MAPS: LINKAGE OF AGRI-PARKS AND CASP ILIMA PROJECTS  CONCLUSION 2

3. BACKGROUND 3  In his State of the Nation Address during 2015, His Excellency, The President of the Republic of South Africa announced: “Among key interventions this year, we will promote the establishment of Agri- Parks …… in each of the 27 poorest district municipalities to transform rural economies. An initial funding of R2 billion has been made available for the Agri- Parks initiative

4. BACKGROUND ON AGRI-PARKS The Department of Rural Development and Land Reform (DRDLR) in partnership with the Department of Agriculture, Forestry and Fisheries (DAFF); has put plans in place for the establishment of the Agri-Parks in the identified district municipalities An Agripark has been defined as “A networked innovation system of agro-production, processing, logistics, marketing and training and extension located in district municipalities DAFF is responsible for the priority on Revitalisation of the Agriculture and Agro-processing value chain Agri-Parks will make a meaningful contribution 4

5. BACKGROUND ON FETSA TLALA The President launched Fetsa Tlala Initiative in the Northern Cape during 2013 The Initiative was approved by Cabinet in 2013, together with National Policy on Food and Nutrition Security DAFF’s political heads have for their tenure in office prioritized food security, contribution to the Gross Domestic Product and job creation Through Fetsa Tlala Framework Government intends to support subsistence and smallholder farmers to put one million hectares under production by 2018/19 – Implementation through the 5 pillars supply food feed and fuel grains 5

6. FETSA TLALA: INTEGRATED FOOD PRODUCTION INITIATIVE 6 CurrentMTEFMTSF Financial Year Year 0 2013/1014 Year 1 2014/15 Year 2 2015/16 Year 3 2016/17 Year 4 2017/18 Year 5 2018/19 targets (ha) 350 000 470 000590 000710 000850 0001000 000 PROGRAMME PILLARS 14.2 million individuals are vulnerable to food insecurity Urbanisation and declining agrarian activities have transformed the RSA economy into a wage economy. Most households = net consumers of purchased food, rather than producers thereof. Access to food = function of household cash income and thus cash deficit households are more likely to experience inadequate access to food

7. OBJECTIVES OF FETSA TLALA VS THOSE OF AGRI-PARKS FETSA TLALAAGRI-PARKS Increase food production capacity of subsistence and smallholder producers To promote the skills of and support to smallholder producers through the provision of a comprehensive producer support package Increase availability and access to locally produced fresh food products To bring underutilized land into production and expand irrigated agriculture Create opportunities for agricultural value chain development at local level To expose all the producer categories to the whole value chain with a specific focus on smallholder producers Create opportunities for SMME development at local level Strengthen existing and create new partnerships within government, private sector and civil society Create job opportunities within the agricultural sectorTo ensure Rural Economic Transformation and contribute to the creation of 1 million jobs NB: Note the common elements between the two programmes and focus on increased production and benefits to the smallholder sector 7

8. FOCUS AREAS: FETSA TLALA AND AGRI-PARKS FETSA TLALAAGRI-PARKS  Although not exclusive, will be to cultivate maize, beans and potatoes as the staple commodities (this is under review to accommodate feed and fuel grains )  First four years in the current MTSF the focus will be on the stabilisation of production and productivity.  Commercialization will incrementally be included in the programme, parallel with the implementation of Strategic Integrated Project (SIP 11) to complete the agricultural value chain.  This will see more introduction of feed and fuel grains for market.  Focus primarily on the processing of agricultural products  Focus on establishing linkages between the parks and surrounding agricultural production land  Include the involvement, selection and training of smallholder producers as well as the placement, incubation and training of unemployed graduates and other agro -entrepreneurs  Provide networks of contacts between producers, markets and processors but equally provide the physical infrastructure required for transforming industries 8

9. COMMON AREAS OF BENEFICIATION  Improved production efficiencies for producers – production levels enhanced with technologies used at various levels of the value chain taking into consideration the land use capabilities and suitability  Promote food security – local procurement and resultant cost reduction  Local economic growth and sustenance of the locals – job creation at local level  Improved local institutional partnerships – public and private locals jointly supporting local development  Preservation of natural resources – community mobilisation will heighten environmental awareness and skills on preservation of natural resources. 9

10. PROGRESS TOWARDS THE ATTAINMENT OF 1 MILLION HECTARES Province2013/14 ha planned2013/14 Actual 2014/15 planned 2014/15 Actual 1.Free state2430498654005519 1.Gauteng2045285022651940 1.Western Cape4478376401802 1.Eastern Cape1341565791700017275 1. Limpopo266915197090 00040396 1.North West20014271671670313131 1.Northern Cape1110119816851020 1.Mpumalanga27208439693500030955 1.Kwazulu-Natal10952146732326016475 Total104312154229191953128513 Grand total296265282742 Progression on hectares is based on budgetary allocations (CASP) which do not increases at the same rate as the expected land under production 10

11. FETSA TLALA TARGETS FOR 2015/16 DISTRIBUTION OF HECTARES PER COMMODITY COMMODITYECFSGPKZNLPMPNCNWWCTOTAL VEGETABLES 870150 1003 3481 000105389296 945 SUGARCANE 0 FRUIT 11 20815 28100974 MAIZE 40 5005 0012 60014 28026 6739 2001 0926 348 105 694 BEANS 888 353 500 1 741 SOYA BEANS 400 200 600 SUNFLOWER 870 600 4 232 5 702 FODDER 1 13024 10 1 164 COTTON 400 GROUNDNUTS 2 000 JUGO BEANS 98 CHICORY 0 BARLEY 1 200 GRAPES 367 81448 SORGHUM 736 WHEAT 786 TOTAL 42 5007 3443 80014 75331 57213 9981 47911 1461 896128 488 11

12. OTHER DAFF’S ACTIVITIES AND LINKAGE TO THE AGRI- PARKS  FETSA TLALA Integrated Food Production Initiative - increase production especially in rural areas to address household food security  Approved Agriculture Policy Action Plan (APAP) – determines the policy requirements and practical interventions to develop the rural spaces and the sector, within the context of ‘employment-driven and equitable economic growth  Medium Term Strategic Framework (MTSF) – emphasis on improved and sustainable agrarian reform and food security  DAFF study on the Integrated Government Procurement Model - an illustration of how the process within the three units as described by DRDLR can be realised  DAFF’s partnership with the World Food Programme (WFP) - rigorous engagement with the smallholder sector and partners 12

13. FETSA TLALA SUPPORT AND LINKAGE TO AGRI-PARKS – SILOS FROM DAFF During the 2012/2013, many subsistence and smallholder producers who planted between 1.5 and 2 hectares and harvested between 3 and 5 tons of maize experience a critical storage problem (EC). A storage facilities idea was conceived by DAFF. This intervention is therefore a pilot tested in 3 provinces, i.e. Limpopo, Kwazulu Natal and Eastern Cape. A total of 240 tanks will be installed, distributed as follows: KwaZulu Natal 120 tanks Limpopo 60 tanks Eastern Cape 60 tanks Coordinates on these sites will be overlaid on the map on slide 19 13

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16. SILOS SPECIFICATIONS Has life span of at least 20 years (8 year guarantee), after which the tank may be painted on the outside The lid on top is water and air tight. Pests and insects kept away. The tank is UV resistant – maize not affected by sun’s rays The opening is stainless steel, does not rust Bucket to facilitate loading is pulley operated Intention to expand distribution of 10tons silos for smallholder support to: NW; FS and MP Conduct a study on the usage of the current silos – report to inform current and future expansion 16

17. LINKAGE - THREE DRDLR BASIC UNITS OF THE AGRI-PARKS  The DRDLR has identified three basic units that will comprise the Agri-parks:  One of the units is the Farmer Production Support Unit (FPSU). The FPSU is a rural outreach unit connected with the Agri-hub and does primary collection, some storage, some processing for local markets and extension services. This is the unit that will contain some of the anchor support services as stated in the introductory section 1 above and training and skills development would reside within this unit – DAFF’s role – existing provincial structures  The second Agri-parks unit is the Agri-Hub (AH) which serves as a production, equipment hire, processing, packaging and logistics – current mechanisation capacity, existing infrastructure  The third unit is the Rural Urban Market Centre (RUMC) which will ensure contracting with either local, regional, national and international markets. The RUMC will serve as a holding facility whereby produce will be released to markets based on seasonal trends - 17

18. IDENTIFIED AGRI-PARKS SITES 18 ProvinceAgri-parks sites ECNcora (Chris Hani); Mtata (OR Tambo); Matatiele (Afred Nzo); Lady Grey/Sterkspruit (Joe Gqabi); Butterworth (Amatole); Cacadu (Sundays River Valley) FSSpringfontein (Xhariep); Tshame/Phuthaditshaba (Thabo Mofutsanyane); Thabanchu (Mangaung); Wesselsbron (Lejweleputswa) GPRandfontein – Brandvlei (West Rand) LimpopoTzaneen (Mopani); Groblersdal (Sekhukhune); Modimolle (Waterberg) Agananang (Capricorn); Nwanedi (Vhembe)

19. IDENTIFIED AGRI-PARKS SITES 19 ProvinceAgri-parks sites KZNKwa Dukuza (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); Kwa Duluza (Ilembe) MPBushbuckridge (Ehlanzeni); Gert Sibande (Mkhondo); Nkangala (Dr JS Moroka – Kameel Poort A) NCKuruman (John Taolo Gaetsewe); Warrenton (Frances Baard); Springbok (Namakwa); Petrusville (Pixley Ka Seme) NWSpringbokpan (Ngaka Modiri Molema); Vryburg (Ruth Segomottsi Mompati); Makapanstad (Bojanala); Dr Kenneth Kaunda (Klerksdorp)

21. PROVINCIAL ALLOCATION – 2016/17 21 Province 2016/17 R'000 PROJECTS/ INFRASTRUCTU RE R'000 ERP R'000 COLLEGES R'000 DISASTER R'000 Eastern Cape268 611 174 67880 26413 669 Free State179 444 147 49626 2815 667 Gauteng89 132 73 15015 9820 KwaZulu-Natal230 344 172 27446 88011 190 Limpopo268 169 157 98077 42317 21115 555 Mpumalanga184 014 130 10628 4125 17020 326 Northern Cape134 729 105 60729 1220 North West177 970 136 88227 70213 386 Western Cape169 411 100 94223 0844 53340 852 unallocated Total1 701 8241 199 115355 15070 82676 733

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24. CONCLUSION  Fetsa Tlala targets 128 488 hectares during 2015/16  Markets for the produce to be linked with Agri-parks  CASP projects have been overlaid on the map with Agri- parks sites  Delivered silos are being overlaid on the map with Agri- parks and CASP projects  Further distribution of silos to NW, FS and MP to target Agri- parks sites  Future development is necessary around the delivered silos i.e. utilization or uptake  Agri-parks sites identified in all provinces – 44 districts  24

25. Thank you 25