Presentation to the Portfolio Committee on Agriculture, Forestry & Fisheries

1. Presentation to the Portfolio Committee on Agriculture, Forestry & Fisheries National Emergent Red Meat Producers’ Organisation Dr Langelihle Simela CEO: NERPO

2. Structure of the presentation • About NERPO • Issues for discussion: • Current challenges for smallholder farmers: • High cost of production (electricity, wages, fuel, etc) – subsidies & cheaper alternatives • Insurance • Water rights • Extension & farmer training • Effective management of communal lands • Pounds Bill • Marketing Bill

3. About NERPO Group Association (NPC) NERPO Financial Services NERPO Farming Enterprises & Dev Trust NERPO Investment Limited SAYA CO-OP Limited Lobbying, advocacy & facilitation of farmer development Credit facilities, insurance, financial management Benchmark farms, farmer training Shareholding in various agribusinesses Youth agribusiness development

4. Non-profit company • Established in 1997 and registered in 1998 • Vision • To create successful farmers out of our predominantly disadvantaged members

5. Our mission: To facilitate the empowerment of our members in order to improve their social and economic well-being and to enable them to utilise market opportunities on a sustainable basis

6. Major strategic objectives: • Institutional capacity building and lobbying ability for strong government legislation, which promotes and supports emerging red meat producers, cattle breeders and feeders • Facilitate commercialisation of the emerging sector by facilitating access to technical support, credit facilities and markets • Enable economic empowerment of members, youth and women by facilitating linkage to business opportunities within the supply chain

7. Major programmes: • Members’ organisation: • Foundation for any other activity of the organisation • Lobbying and advocacy: • Government, support organisations, region • Industry liaison • Farmer support and development • Flagship = training and mentorship

8. Farmer organisation ANNUAL GENERAL MEETING NATIONAL EXECUTIVE COUNCIL NATIONAL OFFICE NW GP WC EC KZN LP MP NC FS 4 5 1 1 2 4 2 2 6 District Municipalities

9. Lobbying & Advocacy Not Solved Solved Not Solved Solved Not Solved Solved

10. Farmer support & development Target 1000 farmers on private land & at least 10 Rural Livestock Co-ops on communal land for support over a period of 3 – 5 years. Resources required to achieve business plan • External: • Land • Infrastructure • Finance Business Plans Farmer mobilisation & resource audit • NERPO: • Training • Mentorship • Finance • Breeding stock • Access to markets Skills required To achieve Business plan

11. Issues for discussion- 1 • Effective and efficient utilisation of communal land • The vast majority of smallholder farmers are on communal land (~80%). • Poor management systems for communal land greatly impede production and productivity. • Interventions to develop farmers’ skills and production capacity (e.g. offering loans) are meaningless without the effective management of communal land to enable efficient utilisation.

12. Issues for discussion- 2 • Effective and efficient utilisation of communal land – possible intervention: • The Portfolio Committee on Agriculture, Forestry & Fisheries is requested to facilitate a discussion with all key stakeholders on communal land management, on which key recommendations for effective and efficient use of communal land could be developed and submitted to the relevant authorities.

13. Issues for discussion- 3 2) Cost of production: • The cost of agriculture production is increasing and smallholder farmers are badly affected. • Major cost factors include: • Fuel • Electricity • Wages • NERPO calls for some assistance to smallholder farmers to enable them to cope and remain in business

14. Issues for discussion- 4 2) Cost of production: • Possible interventions: • Subsidies on fuel & electricity • Subsidies on use of alternative sources of energy • Subsidies on insurance

15. Issues for discussion- 5 3) Extension & farmer training : • Most smallholder farmers have limited entrepreneurial skills for viable agricultural production. • Government extension services are about the only source of information that is readily available to the smallholder farmers.

16. Issues for discussion- 6 3) Extension & farmer training proposed interventions : • NERPO appreciates the draft extension policy, which i) allows for multiple role players in the provision of extension services, with government providing norms, standards and oversight; and ii) uses knowledge broker rather than subject matter specialist approach. NERPO strongly recommends that the proposed policy be implemented. • NERPO calls for the implementation of vocational training institutions and programmes for farmers and technocrats in agriculture, which will allow them to acquire hands on experiential training.

17. Issues for discussion- 7 4) Industry matters: • Independent meat inspection • Pounds bill • Marketing agencies bill • Feeds & fertilizer bill