T Didiza: Agriculture and Land Affairs Dept Budget Vote 2006/07

Minister for Agriculture and Land Affairs, T Didiza, Budget
Vote 2006/07

28 March 2006

Aah!
Madame Speaker ;(Muranga Phanda wa ndu)
Honourable Members of Parliament;(Vatho mphehi merado ya buthano)
Ministers and Deputy Ministers;
Members of different Executive Councils from the nine provinces;
Directors-General and other leaders of the public service;
Heads of Departments from provincial departments of Agriculture;
Heads of Agricultural Public Entities;
Distinguished guests
Friends and comrades

I wish to extend a warm welcome to the Members of the Executive Councils
(MECs) responsible for Agriculture present in here in this house today. Clearly
without you colleagues the co-ordination of the activities of the agricultural
sector would not have been possible. To our partners - the farmers and farmers
organisations, leaders of the agricultural business some of whom are
represented by their organisation, Members of the Agricultural CEOs forum from
the various industries and agricultural business, our local government
representatives with whom we had shared this load of the revival of our rural
economy.

Our Female Farmer of the Year and many other women in the sector who have
always reminded us that this is a sector where both man and women make a
difference to our agricultural economy and food security. To the young farmers
who are our future. To the educators in the agricultural colleges and
universities who cultivate that necessary human resource that is critical in
supporting agrarian and land reform. To the many traditional leaders who have
given user rights to land for many people in communal areas in order to
continue to get sustenance as they continue to face the challenges of life.

To the landless communities whose life in land is still insecure, the farm
workers and workers in the food and agricultural industry, the non-governmental
organisations (NGOs) involved in the land and agrarian sector, I want to say to
all of you, our promise of changing the skewed ownership patterns of land in
our country is being realised each day as we deliver the land through the
variety of programmes that your government has put in place.

Today, it is no more a dream that it is possible to conclude our Restitution
programme by 2008. To our Land Claims Commissioners and your staff I want to
say thank you for your effort - ningadinwa nangomuso. Abaningi abantu ababefake
iziphakamiso zomabango mhlaba bayisikhumbuzo kithi sonke ukuthi impela ithemba
alibulali. Ngikhuluma nje sesixazulule amaclaim abalelwa ku 71 589. Sekusele
nje kuphela ayingcosana.  Sithi kulabo abasalindile ithemba alibulali.
Yingakho sineqholo lokusho sithi impela izolo alifani nanamuhla.

Konke lokhu esingakubalula njengempumelelo kwenziwe wukusebenza
ngokubambisana. It is our hope that the new partnership and commitment we build
prior and during the land summit will act as a reminder that ours is and must
be a collective effort that seeks to bring about equity and prosperity for
all.

In his State of the Nation Address, our President spoke about the Age of
Hope that our nation and country is now going through. Echoing the same
sentiments, Minister of Finance, Mr Trevor Manuel, cited Nhlanhlayenkosi
Mhlungu who stated that: “Inala ifikile, asivuneni”. In Venda they will say
“Ndi tshifinga tsha khano khulu –khari kane”.

As I submit Vote 25 and 26 to this house with a statement of more than 8 000
delegates of the Land Summit of July 2005 held in Johannesburg, who proclaimed
that, “Genuine progress gives us hope for the future”. The progress that these
delegates were referring to was economic growth and poverty eradication in our
society. The hope of millions of our rural people on the future growth and
poverty eradication in agriculture and the rural economy is based on a complex
and complicated mixture of economic, social and cultural factors.

It is for this reason that the issue of land access and use continues to be
a limiting factor for others to actively participate in the agricultural
economy. The Land Summit was a critical forum for evaluation of our policies
and programmes. A few of the concerns raised were:

(a) The state has not used effectively all the instruments provided for it
in the Constitution, in particular expropriation in the public interest
(b) The exclusive use of the willing buyer willing seller approach has had a
limiting effect and therefore needs a review
(c) The challenges in settling the labour tenancy tenure security remains a
legacy that none of us sitting in this very chamber would be proud of
(d) The non limitations on foreign land ownership has exposed the challenge to
the very programme of land redistribution as an instrument of achieving
equity
(e) Lack of alignment amongst the spheres of government and departments does
not ensure sustainability of projects where land has been transferred to
beneficiaries
(f) The length of time that it takes to finish a project affects negatively
those who are ready and willing to work with government in land delivery.

It was through the thorough examination of these challenges that the Land
Summit concluded that working as partners we should as a government :

(a) review the willing buyer willing seller principle
(b) look at a combination of acquisition strategy, which may mean proactive
land acquisition
(c) create local structures which included local government , farmers, farm
workers, labour tenants and community organisations that will identify land
needs
(d) Fast–track the implementation of CLARA
(e) Implement fully the mechanisms as articulated by our Constitution
(f) Improve alignment amongst government departments and spheres of
government
(g) Ensure that the work undertaken of the investigation of foreign land
ownership informs our policy on managing this issue.

Indeed the question of land in South Africa is one of paradigm of paradoxes:
whilst colonialists and apartheid architects, sympathisers, partisans, backer
and champions used land conquests and land deprivation as a strategic tool for
suppression and subjudication, the new democratic state in this country uses
land and agrarian reform as a catalyst and foundation for economic development,
eradication of poverty and economic growth to improve the quality of life of
all South Africans.

Madam Speaker, the Land Affairs Budget reflects what we will do in the
implementation of the Land Summit recommendations. We will be implementing our
proactive land acquisition strategy. The strategy will embrace two approaches:
a needs-based approach and a supply-led mechanism, focusing on the state as a
lead driver in land redistribution rather than the current beneficiary-driven
redistribution. The state will proactively target land and match this with the
demand or need for land.

This strategy will be piloted at sites within the agricultural development
corridors, areas with a majority of labour tenants or where there are great
possibilities for agricultural growth. In the same breath we have to deal with
certain cases of human settlement sites such as in East London and Ekurhuleni
where in collaboration with the Housing Department we will work together.

The first phase of the implementation of the Communal Land Rights Act is
already underway. We have worked with the University of KwaZulu-Natal in the
development of the curriculum for land officers who will be critical to the
administration of the land after transfer to communities. These individuals
will be selected by communities to ensure that they remain accountable to them.
Towards the end of 2004 we have visited the Houses of Traditional Leaders in
the Eastern Cape and Mpumalanga with an aim of discussing the implementation of
the legislation. During these visits we also agreed to follow up with regional
houses of traditional leaders so that indeed, as we implement we have taken
everyone on board.

Madam Speaker, honourable members, delegates, in the Land Summit were
conscious that land and agricultural development should be seen as one, rather
than two separate programme. As we deliver the Agricultural Vote we would want
to reflect the contribution of agriculture in the economy. It is by now almost
common knowledge that every R100 that is invested in agriculture generates more
jobs and income redistribution than in any other sector in the economy. Yet the
share of the sector on the gross domestic product (GDP) has fallen consistently
over the past five years to the current level of about 3.5%. Yet in terms of
employment, despite that this has been in the decline also, the sector is still
a major employer because its share is out of its GDP share at 10.1% of the
total employment in the country.

Furthermore, more than 3 million people or 52% of households that live below
the poverty line in our entire country live in the rural areas, many of which
depend on agriculture and agriculturally, related sectors. These people also
share part of that hope of our people in the future growth of the sector and
poverty eradication. This means that the hope of these millions has very
complex challenges and opportunities. A recent study by the Monitor Group that
was commissioned by the Department of Agriculture has indicated that the growth
of approximately R68 billion and its attendant employment and investment
creation opportunities that took place in agriculture in the recent past, was
in fact limited not only in the primary part of the sector but and most
importantly, was also generated in the value-adding chains of down stream
agriculturally related industries.

This is very imperative because the fundamental objective of this government
in agriculture and the rural economy is to reduce the differences. The
differences between rural and urban areas to a simple question of choice that
would be exercised by people where, otherwise, the quality of life between
rural and urban areas would largely be similar in the
not-so-distant-future.

Agriculture-related industries have shown faster growth than the primary
sector. The windfall of and the effect of the 2003 producer price index (PPI),
which was primarily driven by maize prices has also allowed our farmers to
reduce their debt to equity ratio which moved from over 30% in the 2000/01
season to just about 25% currently.

Unfortunately when this windfall occurred, the consumer price index (CPI)
also rose but the government was quick to implement food security intervention
strategies to protect the vulnerable and the insecure as far as food is
concerned. Although the Net Farm Income seems to be dropping on an annual basis
since the 2002/03 to date, the average Net Farm Income increased from R11
billion to R17bn over the last five years.

Hence, the determination of government to embark upon a new trajectory as
embodied in the Accelerated and Shared Growth Initiative of South Africa
(AsgiSA). It is clear to us that we cannot achieve the gains we pursue in the
agricultural sector without galvanising our resources to address the
organisation and capacity of the department while strengthening the
partnerships we have established through the process of developing the Sector
Plan of November 2001. Within the agricultural sector, this shared growth will
continue to be guided by the sector plan’s strategic imperatives of: Increasing
productivity competitiveness; Increasing employment and Addressing poverty and
ensuring sustainability. All these are in line with the Millennium Development
Goals (MDGs) of the United Nations (UN).

Secondly,
Madam Speaker, we are all familiar with the challenge the ostrich and poultry
industries have faced over the last year regarding the threat of the avian
influenza. This challenge is not unique to South Africa as the poultry industry
internationally is under pressure with the weakening of prices due to declining
demand as a result of the spread of the avian influenza H5NI strain.

Thirdly,
We are also aware of the decrease in the harvest of grapes attributed to the
continuous drought and heat conditions that have affected the wine harvest
negatively. The 2006 wine grape harvest is estimated at 1 245 182 tons,
approximately 2% less than the estimate of January 2006. 

Madam Speaker, climatic changes as observed in recent times are resulting in
periodic droughts interspersed with flooding causing decline in the yields in
the different commodities. A drought management plan, in line with the Disaster
Management Act, was approved and is being gazetted for public comment. This
plan responds to disasters related to drought that affects more farmers and
makes provision for animal feed and water. The declaration of 2006 as the
International Year to Combat Land Degradation and Desertification will assist
us to galvanise our resources to combat the effects of climate change on
agricultural production.

In spite of these challenges, opportunities exist within the sector to take
us on to the 6% growth envisaged in AsgiSA. As a result, the sector is
positioning itself through a number of initiatives. These include measures to
create a more conducive regulatory environment to stimulate further economic
growth. As a priority, the Department of Agriculture (DoA) has created a new
unit on biosafety and biosecurity and also a new branch has been created to
deal with all emerging diseases and improve on the biosecurity and food safety
measures. A 50 – 80km fence will be constructed at the Kruger National Park as
a deterrent to the possible spread of the Foot and Mouth Disease.

Similarly, the new DoA’s organogram will focus on intergovernmental and
stakeholder relations. Dedicated capacity has been identified to ensure
effective collaboration with relevant stakeholders. The DoA recognises that the
capacity of the sector to respond adequately and sustainably to national and
regional food security challenges and competitiveness in world markets should
be underpinned by efforts to increase investments in agricultural research and
technology transfer.

With the 2010 horizon lurking upon us and the economic realities South
Africa need to grapple with, agricultural production as the key and primary
input sector supporting a range of secondary industries in the processing,
marketing and consumption value chain. 

These include the partnerships we have created through institutions such as
the CEOs forum, AgriSA, National African Farmers' Union (NAFU), Agriculture
Business Chamber and commodity associations. These partnerships will in the
future play a major role in addressing the capacity within the agriculture
sector to realise the objectives of broadening access and empowerment as well
as ensuring the biological safety of both agricultural products. We are
encouraged by the willingness of the Ostrich fraternity to co-operate with the
department to reinforce the biosecurity measures on farms; while at the same
time meeting the industry commitments to AgriBEE.

“Umnotho wakuleli u(su)khulile” and our nation is going through a major
challenge of uplifting millions of people who are below the poverty line. They
need housing, they need food, they need health care and they need education and
employment that would provide a better quality of life.

It is this hope that our government and DoA and Department of Land Affairs
(DLA) must preserve. It is also the departments’ objective to ensure that our
people, particularly those confined to the periphery of economic activity,
those whose hopes are vested in the land and other natural resources and of
course those whose hopes are at the heart of the Sector Strategy, that we, as
the departments of Agriculture and Land Affairs stand here, to recommit and
rededicate our efforts to their uplifting and support.

Madam Speaker, the question is therefore, how then have we fared to date and
what have been some of the milestones since the advent of democracy?

In making this assessment I would like to remind this house of the words of
Honourable member Kraai Van Niekerk in his first budget in this National
Assembly on Tuesday, 13 September 2004. I quote “It is widely acknowledged that
agriculture is the cornerstone of any development of any developing country.
This also applies to South Africa. In fact the growth of the South African
economy over the past year or so can mainly be attributed to agriculture.”

It may be 11 years after these words were spoken but I am confident that
they are still true today. We can sight examples more than what we have done in
order to affirm that the role of the agricultural sector in the economy remains
critical.

Conscious of the importance of the role of the agricultural sector as a
foundation of our economy and rural development, government has in 2001 as part
of the Micro-economic Reform identified agriculture as one of the growth sector
of our economy. Our interventions as government in this sector either in the
opening of market access opportunities beyond our traditional market or in
strengthening our veterinary support in order to continuously ensure that our
livestock industry remains economically viable has been amongst others an
indication that acknowledges the role this sector plays in our economy.

In this instance I would like to refer to the grain industry especially
maize, which is both for domestic consumption particularly with regards to food
security. Secondly, it is a sub-sector that is contributing to the animal feed
industry. As well as part of our export commodities maize bring foreign
exchange to our economy.

The concern over the price of maize has most of us worried over the last two
years, however, in the true tradition of a “boer maak n plan” we have seen the
expansion of feedlots. This resulted in the red meat and the poultry industries
delivering impressive 11.5% and 1.2% added margins for the 2004/05 as compared
to the same period in 2003/04.

This concern over the price of maize should, however, not be taken lightly,
particularly over the changing consumption patterns of our society as indicated
by the study done by Grain SA and the need for better crop forecasting models
and techniques. We hope that the current efforts by both the industry, the
Maize Trust and DoA to develop better forecasting models would provide us a
better tool to exploit going forward.  

The challenges exist, but opportunities also exist. We are grateful about
the efforts of our partners in the sector, particularly those that have come
forward to provide both participation and skills. The norms and standards for
Extension and Agricultural Advisory Services will enable national programmes,
particularly Provincial Departments of Agriculture focus on: Capacity for
extension officers to perform their work effectively by indicating the farmer:
extension officer ratios for different farm areas and sizes as well as the
farming systems. Human resources and skills development outlining the
competencies and skills required of an extension agent. Managing mentorships,
particularly for both extension officers as well as farmer to farmer, where
possible.

Madam Speaker, here I am referring to organisations such as the CEOs Forum,
The Maize Trust and the gestures from AgriSA as articulated by the newly
elected Chairperson Neels Ferreira whom we wish Godspeed. We are also
encouraged by the Ostrich fraternity with whom the Department’s management had
a visit and their willingness to assist in broadening access and providing for
empowerment.

Madam Speaker, Ladies and Gentlemen, the overview I have just given and
numerous other indicators not mentioned here tend to support our assertions
that the state of agriculture in the country is good, even though the benefits
at the commercial level did not translate to the generation or support to the
second economy.

Considerations coming out of the Land Summit, our own commitments and
achievements indicate that there is reason for agriculture to celebrate the age
of hope. Within the Sector Strategy and sector partners we all beginning to
feel both the opportunities and challenges of deregulation and the emergence of
the competitiveness of our sector.

In summary to the preceding, opportunities exist within new interventions
and up scaling of current projects (bio-fuels and goats), improving animal
health regulatory systems and the restructuring of the industry through AgriBEE
interventions and other empowerment tools and products such as farmer support
mechanisms such as Micro-Agricultural Finance Schemes of South Africa (MAFISA),
Self-Held Groups, Entrepreneurship Develop Products and Comprehensive
Agricultural Support Programme (CASP).

Among our challenges, include our posture and ability to deliver. To this
end, we have within the framework of government managed to develop and achieve
a lot of progress in forming functional and supportive systems. The end of
local elections has also given us an added delivery wing as it relates to local
government and structures.

Madame Speaker, the issue of Food Security has never been so important than
it is today.

Although the plight of the poor and malnourished has improved during the
first decade of our democracy, it has also been recognised that a more
integrated approach is needed to ensure sustainable results. To respond to
these challenges, the Cabinet endorsed the Integrated Food Security and
Nutrition Strategy as a priority Social Cluster programme. The Integrated Food
Security and Nutrition Programme remains a key programme and strategy in
achieving food security for all hungry and vulnerable including the most the
indigent people

The Integrated Food Security and Nutrition Programme further recognises and
is aligned to the broad regional food security framework highlighted within the
Regional Indicative Sustainable Development Programme. It is within this
framework that the government of South Africa has responded in the past three
years to the Humanitarian Appeal by World Food Programme (WFP) for food
emergency relief operation in the Southern African Development Community (SADC)
Region. A main achievement of this initiative that will be pursued in 2006/07
financial year, has led to the realisation of the Region’s need to enhance its
capacity to handle its own food emergency requirements.

Agricultural development thus becomes critical in providing vulnerable
communities with a hope for a better life, free from poverty, hunger and
unemployment. It will be done through the implementation of an Integrated
Household Food Production Programme (HFPP) i.e. Siyavuna (KZN), SiyaZondla
(EC), operation Qumithuli (dry land maize cultivation or field crops, New
Massive Food Programme (medium to large scale commercial farmers (area greater
than 50 ha), Green Revolution, Resis (in Limpopo) etc. In its first phase,
Madame Speaker, the Mechanisation Project has been formulated to provide such
power tillers to small scale farming communities. This is going to be achieved
through a partnership between Agrid SA (Pty) Ltd (supplier of Power Tillers in
SA), provincial departments of Agriculture and local municipalities, the
directorate and through which a number of Power Tillers with adapted tools will
be distributed amongst 60 local municipalities in 21 rural and urban
development nodes targeting food security projects.

Since the launch of the CASP in 2004, significant improvements have been
made in its nationwide implementation. The programme has facilitated the
establishment of 12 co-operatives in three rural development nodes.

For the 2006/07 financial year, the Department has put up a budget of R300
million for CASP funding. Business plans have already been evaluated and
further refinement is underway to ensure delivery in the new financial year
beginning April. To date, 53 206 farmers have been assisted through the CASP
programme in the nine provinces up to the second quarter of 2005/06. In
addition, a total of 21 017 households were beneficiaries.

Indeed we also successfully launched the MAFISA in Limpopo, the Eastern Cape
and KwaZulu-Natal. MAFISA will be rolled out to the remaining provinces in the
2006/07 financial year. In addition, a commonages programme will be piloted in
the Free State, Eastern and the Northern Cape. Recommendations of a study
conducted to look at problems faced by land and agrarian reform beneficiaries,
to avoid post-settlement project failures will be implemented during this
coming financial year.

We are all aware that last year South Africa experienced two major outbreaks
of diseases. The first was the Notifiable Avian Influenza, which resulted in
job and income losses to the industry.

The ostrich industry lost at least 26 000 birds at a cost of R34 million. A
total of 4 000 jobs were lost and R600 million of export revenue was lost.
After the completion of a control and eradication campaign and comprehensive
countrywide surveillance, the country was declared free of Notifiable Avian
Influenza. This was followed by recognition of this status by the OIE and the
European Commission in October last year. For your information the African
Union (AU) and Food and Agricultural Organisation (FAO) have invited
Agricultural Research Council - Onderstepoort Veterinary Institute (ARC-OVI) to
participate in the surveillance of Avian flu in African countries. 

The second was the classical swine fever, which affected communal farmers in
the rural areas and commercial farmers in the Eastern Cape and Western Cape
provinces. This had a major negative effect on food security and incomes. To
date, 106 000 pigs have been culled. This was however offset by the DoA’s
efforts in controlling the outbreak and preventing it from spreading to other
provinces, thus averting a national disaster. It is expected that the budget
for swine fever control will increase to about R100 million in the new
financial year.

The DoA aims to engage with all government departments and industry clients
on all aspects of animal health promotion and disease control. There is still a
great need to be on the alert for avian flu and have contingency plans in
collaboration with the Department of Health.

Madame Speaker, an amount of R40 million was allocated to the LandCare
programme. Of the 89 projects that were approved, 45 are in the nodal areas and
benefited 53 206 people. LandCare projects for 2006 have already been assessed
and approved. 

The agritourism project as an extension of the LandCare Programme was
launched in December last year in Pretoria. In this respect, 56 agritourism
projects have been identified and will be implemented in 21 nodal areas. It is
envisaged that these projects will be implemented in collaboration with
potential partners such as the Development Bank of Southern Africa (DBSA), the
Investment Development Corporation, Umsobombvu Youth Fund, Eskom Foundation,
Sasol, Anglo Platinum and others. Contracts with these partners have been
finalized.

The agritourism projects will be extended with support from the Independent
Development Trust. Approximately 2 500 jobs will be created through this
partnership.

In collaboration with the AgriSeta, 16 000 farm workers benefited from the
Adult Basic Education and Training (ABET) training. A total of 12 farming
qualifications ranging from National Qualification Framework (NQF) levels 1 – 5
have been developed. In 2006, the programme will focus on support. Through the
departmental internship programme, 160 interns were registered at the beginning
of the year. Twenty five of the interns are placed in different agribusinesses
in the country.

These 25 students are also registered with the Stellenbosch Business School
for an Agri-Management Development Programme. A total of 135 are attached to
the Department of Agriculture as interns. These students will be with us until
the end of January next year. A total of 101 interns successfully completed a
certificate course in Project Management. The remainder of the students is
currently undergoing Project Management training. Our partnership with the
Department of Education will be enhanced and more targeted groups will benefit
from the programme. 

The Perishable Products Export Control Board (PPECB) as “people business” to
succeed in a future international environment, training and skills development
are fundamental. At every level of society, as well as within our sector and
industries, there is a huge need to invest and develop human capital. This
strategy will underline and support every other strategy already identified and
thus PPECB will be training 100 black technologists over the next three years
for the benefit of the industries it serves. 

In the face of the scarcity of skills in the biotechnological industry,
Onderstepoort Biological Products (OBP) developed a multi- pronged human
resource development programme as a long-term, concrete foundation for
retention and development of skills. In implementing this programme, OBP
is steadily gaining competitive advantage in its area of operation resulting in
the accumulation of a reservoir of skilled human resources. Its emphasis on
human resources development has resulted in us registering positive results and
further contributing to community development by appointing engineers from
previously disadvantaged communities for internship. Through this internship
programme, engineers go through experiential training for a period of one year.
This will enable the organisation to have a pool of people readily available to
fill in critical positions and be in a position to be employed in other
organisations.

The NAMC, in collaboration with the University of Pretoria is producing both
the Annual Food Cost Review and Quarterly Food Price Trend Reports. The source
of primary data for the two projects has been broadened to include both AC
Nielsen and 80 trained Rural Provincial Department of Agriculture Food Price
Monitors (DoA officials).

Finally the much-awaited AgriBEE Indaba was held in Midrand, Johannesburg
last year December. The Indaba marked a key milestone in our quest to comply
with the Broad-Based Black Economic Empowerment Act, No. 53 of 2003. The
development of the draft AgriBEE Charter and large-scale scorecard was a
product of the Strategic Plan for the Agriculture Sector. I am satisfied that
the process of consultation by the AgriBEE Steering Committee was broad,
inclusive and transparent.

In my view, the draft Charter proposed by the AgriBEE Steering Committee
advances the objectives of the Broad Based Black Economic Empowerment (BBBEE)
Act and that it is aligned to the BEE codes of good practice. Following the
support received for the draft Charter at the Indaba, the Steering Committee
recommended that it be endorsed as the basis for the finalisation of the
AgriBEE Charter and Scorecard in terms of Section 12 of the Act.

It was further recommended that the Steering Committee be tasked to
undertake work and, subject to the release of the second phase of the BEE codes
of good practice to deal with and finalise, the recommendations of the Indaba.
Inputs and issues raised at the Indaba are being considered by the Steering
Committee to enhance the Charter. In addition, it was recommended that the
Steering Committee arrange for the launch of the final AgriBEE Charter with
stakeholders once negotiations have been concluded.

Agriculture cannot survive without clear support from new innovations and
the introduction of new technologies. This means increase in funding
agricultural research to more than 3% of GDP.  To this effect, the DoA has
also recognized a number of priority areas of focus for research and
development in the sector to have a significant impact. Estimated additional
funds, more and above the parliamentary grant, required for agricultural
research are approximately R250 million per annum starting in 2006/07.

For the financial year 2005/6, the Department approved additional projects
for funding with the ARC to the value of R41 million as a means to boost
efforts towards development of appropriate production technologies. The
implementation of the Agricultural Research and Development Strategy will
further strengthen the Department’s efforts to mobilise additional resources
for agricultural research. Increased investments in Agricultural Research now
would underpin any meaningful efforts to tackle under productivity and food
insecurity.

Livestock farming in black emerging farmers is characterized by poor
productivity and over stocking, and subsequently leads to overgrazing. In
addressing this challenge we have developed a livestock development strategy
,which will ensure that we can support the rural poor farmers in realizing
economic value out of these assets. The cluster of the Mount Ayliff goat
project offers us an opportunity to upscale in other areas where goat
production is suitable.
 
Madam Speaker, the success of our land and agrarian reform will also depend on
cooperative government and partnerships as guided by the Intergovernmental
Relations Framework Act. Cabinet has been explicit in stating what national,
provincial and municipal authorities are supposed to do in terms of work plans,
actions and reporting schedules. This will also include joint activities
between Government and private sector partners. The intention here is to lift
definite programmes of action from the noble statements that exist in papers.
Similarly, the intent is to structure and coordinate international activities
that are undertaken by a number of stakeholders to pursue objectives of
increasing the contribution of the agriculture sector to ASGISA.

Honourable members we are treating this programme as one our priority areas
as articulated in the strategic plan. The first deliverable, will be to
establish the protocols, service level agreements, joint supportive projects
and actions between the national and provincial departments of agriculture. The
second deliverable of this priority area is for the national and provincial
departments of agriculture to produce a work plan of activities and budget to
assist municipalities to deliver services. The third deliverable under this
priority area is for a quarterly report by the Director General of the national
Department of Agriculture to MinMec on the status of provincial departments of
Agriculture that shall cover the six agreed programme areas.

The fourth deliverable under this priority area will be a quarterly report
to MinMec by the Director General on implementation progress of agricultural
projects in the provinces. The fifth deliverable of this priority area will be
the work plan and time schedules of duties and responsibilities that provinces
will transfer to the municipalities to facilitate service delivery. The sixth
deliverable under this area of priority is publication of the work plan of
activities and budget to support it between the national and provincial
departments of agriculture and state agencies.

The seventh deliverable under this priority area will be the work plan of
foreign engagements that the national and provincial departments of agriculture
will undertake in 2006/07. Lastly, the deliverable in this priority area will
be a publication of the work plan of activities and budget to support it
between the department of agriculture and key private sector partners.

In conclusion Madame Speaker, I need to answer the question on how are the
two departments going to monitor and evaluate all what has been said.  We
have constituted an Intergovernmental Technical Committee for Agriculture which
is attended by the Director-General and Heads of Departments (HODs) of
Agriculture from the provinces on quarterly basis.  Among others this
committee reports on their status of their departments in terms of capacity and
other related issues.  On political level there is MinMec, which seats
every quarter, and interrogates departments’ commitments given at the beginning
of every financial year.  Also a means to strengthen our democracy we have
the Parliamentary Committees which are playing an oversight role.  The two
departments do present to these committees on a regular basis.  The DoA
has just launched a Project Information Management System; this system will
provide the clients of the DoA with real time information on agriculture and
related projects within SA. For more information on the system visit
www.agis.agric.za.

Thank you.

Issued by: Ministry of Agriculture and Land Affairs
28 March 2006

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