ENHANCING AGRICULTURAL PRODUCTIVITY AND THE WELL BEING OF FARMERS: THE MISSING LINK

2. ENHANCING AGRICULTURAL PRODUCTIVITY AND THE WELL BEING OF FARMERS: THE MISSING LINK Douglas Taylor-Freeme (President- The southern African Confederation of Agricultural Unions – SACAU) 11th Agricultural Outlook Conference 13 & 14 September 2011, Pretoria, South Africa

3. STRUCTURE OF THE PRESENTATION Introduction Socio-economic and political factors Infrastructure Production inputs and services Research and extension Organisation of farmers Markets Policy environment Conclusion

4. Introduction Agricultural growth in the region has averaged between 2-4% over the last two decades, much lower than the CAADP target of 6%. The growth registered by the region as whole is much lower than that of sub-Saharan Africa Agricultural growth has not kept pace with increasing demand for food and agricultural products, as well as population growth Farmers are required to produce more with less, in a constantly changing environment (climate change) There has been renewed efforts by several players towards the development of agriculture in the region in the last few years. However, in spite of these efforts, food security in southern Africa generally remains an illusive goal Increasing the productivity and incomes of farmers be key to achieving food security in the region.

5. Socio economic and political factors The importance of social and political stability Confidence in the governance of the country Predictable environment: Economic Social Political The need to modernise the rural sector/economy Attractiveness of the sector Tenure arrangements Education Information Technology

6. Infrastructure Inadequate public and private sector investment in critical infrastructure Transport (roads, rail etc) Communication Energy Water Storage Growth corridors (e.g access to ports) Growth points/poles Input supply Processing and marketing facilities Extension Information Maintenance Health, schools

7. Production inputs and services Limited availability of critical inputs and services High cost Variable quality of inputs Limited choice Financing Limited effectiveness of credit schemes (money back guarantees) As cheap as possible and as long as possible! Lack of collateral Need innovative financing packages-arrangements (e.g contact farming, value chain based financing)

8. Research and extension Research is biggest single investment that can move agriculture forward in a significant way Under-investment in research and extension (perhaps the weakest link) Need for independent assessment /verification of research undertaken by both private and public sectors Limited involvement of farmers in agricultural research Technologies not widely accessible to farmers (e.g biotech) - its criminal Challenge- applying pure research into a usable extension practice Need for more practical hands on type of training Need to put a value to training/demand driven training Need for greater use of mentorship arrangements (including cooperation between smallholder and large scale sectors) Private sector can play a big role in extension services

9. Organisation of farmers Need for farmers to be organised at all levels from local, national regional to international Generally weak farmers organisations in the region-too much emphasis on political organisation of farmers, particularly at local and national levels Need for more focus to be on commodity structures- putting a value to being organised The concept of agri-business is becoming fashionable in the region (not only in RSA, Namibia, etc.)

10. Markets Need for increased competition in input and outputs markets Timely access to market information Unfair trade practices (e.g dumping and subsidized imports) Intra-regional trade/markets (need to trade more between each country in the region) Need for greater investment in agro-processing and input manufacturing Harmonisationof trade policies and standards

11. Policy environment Inappropriate interference by governments in most countries to the detriment of sustainable agricultural development Key role of government is to provide a conducive operational environment for production (inputs, land, labour, capital etc) and trade Predictable and enforceable regulatory frameworks Developmental incentives Trade liberalisation Competitive environment Governments also has a responsibility in infrastructure development A sensible approach to sensitive policy areas such as land and water reform, trade, technologies (e.g. biotech) – farmers need to be consulted Need for harmonised policies in the region

12. Conclusion A predictable and confidence-giving farming environment Investment in critical infrastructure absolutely fundamental to unlocking the productivity of farmers and the growth of the sector Reduced costs of inputs will increase the competitiveness of production (production costs per ha) Greater focus in research and extension will be a key driver to attaining food security in the region Strengthening commodity associations in farmers’ organisations is considered a strategic investment Greater competition and fairness in the input and output markets will lead to increased incomes, productivity and investment Agriculture thrives on good policy frameworks – lets get this right

13. Thank You