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REVITALIZATION OF THE AGRICULTURE AND AGRO-PROCESSING VALUE CHAIN

This report provides an update on the progress of the Revitalization of Agriculture and Agro-processing Value Chain initiative, including key interventions, challenges, and growth targets as presented to the Portfolio Committee on Rural Development and Land Reform. The report covers strategic overviews, government initiatives, job creation, producer support, market access, research and innovation, and more.

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REVITALIZATION OF THE AGRICULTURE AND AGRO-PROCESSING VALUE CHAIN

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  1. REVITALIZATION OF THE AGRICULTURE AND AGRO-PROCESSING VALUE CHAIN By 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. Strategic Overview GROWTH TARGET: Annual increase of 0.5% (Current contribution to GDP: 2.5%) Key Interventions Challenges 2019 Target Current Status (Jun.15’) 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 Growth increase of 2.5% (0.5% p.a.) Index of production output in agro- processing, 2014-15 unchanged 103.9 (unadjusted) Gross value add for Agriculture; Forestry & Fisheries increased by 5.6% in 2014. Percentage change in Gross Value Add of 10% (2% p.a.) Enablers Key Growth Constraints 1. Policy Certainty 2. 122 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 Total jobs in Agriculture increased by 183 000, between 2014 and 2015 (total of 891 000) \ Job increase of 500 000 (100 000 p.a.) and 1 million by 2030 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. Agri-Parks KEY DECISIONS Target or catalytic effect Free StateAgri-Parks LEAD: DRDLR PROGRESS TIME 7

  8. Agri-Parks PROGRESS TIME Prototype Agri-Park Completed LEAD: DRDLR 8

  9. Site (district municipality) 36 of 44 Agri-Park sites selected Province 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 LEAD: DRDLR PROGRESS TIME 10

  11. 11 Improving Producer Support KEY DECISIONS Target or catalytic effect LEAD: DAFF PROGRESS TIME

  12. Break Down of National Training Programme 12

  13. Production: Poultry Target or catalytic effect KEY DECISIONS LEAD: DAFF PROGRESS TIME Limpopo: Lebowakgomo Chicken Abattoir 13

  14. SOURCE: … 14

  15. Production: Red Meat KEY DECISIONS Target or catalytic effect TIME PROGRESS LEAD: DAFF Free State: construction of the 14 animal handling facilities 15

  16. SOURCE: … 16

  17. Production: Wheat and other crops KEY DECISIONS Target or catalytic effect TIME PROGRESS LEAD: DAFF 17

  18. SOURCE: …

  19. Production: Fruit and Vegetables Target or catalytic effect KEY DECISIONS Western Cape: Hortgrotree planting project – Ceres PROGRESS TIME LEAD: DAFF 19

  20. SOURCE: …

  21. Production: Sugar Target or catalytic effect KEY DECISIONS PROGRESS TIME LEAD: DAFF 21

  22. Production: Wine Target or catalytic effect KEY DECISIONS Western Cape: De Goree (Robertsons) PROGRESS TIME LEAD: DAFF 22

  23. 23 SOURCE: …

  24. 24 Technology Dev. and Innovation Target or catalytic effect KEY DECISIONS Kwazulu Natal: Post-graduates in Agric. Engineering at the Univ. of Kwazulu Natal LEAD: DST TIME PROGRESS 24

  25. Market Access and Trade Target or catalytic effect KEY DECISIONS PROGRESS TIME LEAD: DTI 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

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