Gugile Nkwinti, 2006/07
9 March 2006
THE SIX PEGS
Honorable Madam Speaker,
Honorable Premier,
Honorable members of the Executive Council,
Honorable members of the provincial legislature,
Honorable members of the Agriculture Portfolio Committee,
Honorable members of the traditional leaders,
Invited guests and members of the agricultural community,
Ladies and gentlemen,
I greet you all.
Madam Speaker, I have pleasure in presenting the Policy and Budget of the
Department of Agriculture for the period 2006/07.
In the second decade of democracy and freedom, the Department of
Agricultureâs Policy is committed to a peoplesâ contract to create work and
fight poverty through the radical transformation of the agrarian economy.
Madam Speaker, this transformation is nothing other than a green revolution.
We have fought for our freedom and for democracy. Now we will combine our
efforts and minds to fight in the revolution to rid the rural communities of
the scourge of poverty and joblessness.
This is the green revolution which seeks to arouse our people in the
province to take action; action against hunger, action against poverty; action
against the cancer of environmental degradation which is destroying our fields
and pastures; action to make our rural areas in the province of the Eastern
Cape a socially and economically compelling place to live in.
Madam Speaker, in expanding the green revolution the Department has
formulated a community needs based six peg development model for quick
realisation of results. This development model is crafted out of the New
Partnership for Africaâs Development (NEPAD) Comprehensive Africa Agricultural
Development Programme; the State of the nation address; the State of the
province address; the Millennium Development Goals (MDGs) and the Provincial
Growth and Development Programme (PGDP). The six peg policy model is composed
of the following priorities:
* fencing of arable and grazing lands
* construction of stock water dams and boreholes
* development and repair of dipping tanks
* accessing tractors and implements
* rehabilitation of old and development of new the irrigation schemes
* a tailor-made human resource development.
Madam Speaker, from the six-peg model the following strategies have been
developed that target food insecurity, job creation, overall hunger and poverty
eradication.
1. The food security strategy:
The Department is pursuing the following programmes in addressing food
production and availability in the province:
(a) Siyazondla Homestead Food Production Programme:
* This programme first views institutional arrangement of the community
within either a ward or village critical for its effectiveness, where limited
resources are made accessible to the members of the community.
* There is provision of toolkits for tilling and production such as hand
tools; water harvesting equipment; seeds and seedlings; fertiliser; mechanical
hoes (small tractors) and a farmer training and development package. For this
programme an amount of R31 million has been allocated.
(b) Siyakhula small scale and massive food production:
These programmes are now at their third year of implementation, seeking to
assist and promote emerging farmers from subsistence to commercial food
production. It is composed of a conditional grant for land preparation and
production inputs made available to farmers. An amount of R69 million has been
made available for farmers this financial year.
(c) Fruit production:
The promising citrus production in the province is making it possible to
target the export market, hence investing in revitalising this commodity
productionâs has become essential. An amount of R4 million has been set aside
for the development of this commodity.
(d) Development of industrial crops:
(i) Sugar beet:
The trials that have been conducted over the years have proved the
suitability and profitability of this crop in the province. Based on the
evidence, commercial trials will be implemented this financial year. Necessary
social facilitation has taken place. Irrigation schemes such as Tyefu, Ncora
and Qamata are targeted for the project where portions of each scheme will be
allocated to sugar beet production by the farmers. An amount of R10 million has
been allocated for the implementation of this phase.
(ii) Cotton:
The performance of the trials in the province coupled with the establishment
of a processing plant has made it possible for the Department to make a full
commitment to the success of the project. An allocation of R3,5 million has
been made.
2. Economic livestock development:
(i) Beef production
The Department developed a bull lease scheme as a means of assisting
communal and individual emerging beef farmers to improve the genetic quality of
their animals. The Department in partnership with the University of Fort Hare
and Independent Development Corporation (IDC), developed a Nguni Project where
a community is given a bull and nine pregnant heifers. An amount of R1,5
million has been allocated into the livestock research to enhance the
programme.
(ii) Animal fibre (wool and mutton)
The partnership between communities, the Department of Agriculture and the
National Wool Growers Association (NWGA) continues producing excellent results
due to the supply of quality wool rams to the communities. An amount of R4,5
million has been allocated.
Cashmere production continues in Alfred Nzo where the trials provided
economic cashmere production. The partnership between the Department of
Agriculture, Council for Scientific Industrial Research (CSIR) and organised
farmer associations will continue so that value adding is enhanced. An amount
of R1,5 million has been allocated into the research and expansion of the
programme.
(iii) Goat production
More focus will be placed on goat production in the province as the
potential and economic production is possible in particular the indigenous
breed. Market and value adding processes will be explored.
(iv) Dairy production
The partnership between the commercial farmers and developing farmers is
sealed by the involvement of the Department. The partnership is monitored to
ensure that there is mutual benefit for all partners. To achieve the desired
results, the Department is injecting funding for infrastructure development,
training and research.
(v) Poultry commodity
The Department, private sector and identified communities or farmers will
continue establishing key projects. The departments of agriculture and social
development will continue assisting food security poultry projects in all the
districts across the province.
3. Agriculture resource management and conservation
(i) LandCare
This programme will focus more on awareness campaigns that are intended to
make rural communities aware of the importance of land care as well as proper
management and conservation of natural resources.
The Department has identified Mthatha Dam catchment and Sterkspruit areas
for the implementation of the LandCare awareness campaigns and the relevant
construction of resource conservation and management structures. Resource
management by capacitating, empowerment and training of communities in these
areas will remain a priority. The expected outcome in this project is a
community led and driven process to ensure proper management of veld and arable
land. This will create job opportunities for the communities in the areas. The
department has R6,675 million allocation.
(ii) Soil conservation
The loss of productive soil in most areas of the province is evident across
the province, especially in the former homeland areas. The Department has
embarked on all possible techniques in reclaiming most areas where construction
of weirs, gabions and other soil conservation structures are being
developed.
Due to limited financial resources no visible impact has been possible. A
new approach has been adopted by the Department where conservation agriculture
practices are a focus in all the major crop production areas. To enhance the
process most of the work will be labour intensive thus promoting job
opportunities for the local communities. An amount of R3,0 million has been
allocated.
4. Agriculture infrastructure development
This strategy is pivotal towards the implementation of the six peg policy
priorities in agricultural development. These six peg policy priorities are
strongly supported by the Comprehensive Agriculture Support Programme.
Included amongst the priorities are:
(i) Fencing
In order to implement economic livestock, crop production and veld
management, the Department has embarked on providing fencing to the communal
farming communities and emerging farmers. A provincial demand is at 1 816 km
this financial year for about 400 camps and arable lands, amounting to R41
million. Only R12 million could be available this financial year.
(ii) Construction of livestock dams and boreholes
This is in support of the economic livestock production in the province. The
economic livestock improvement programme and the provision of these facilities
will complement each other towards the promotion of suitable marketable
livestock and its products. Stock water requirements amount to R32 million.
However, only R4,5 million is available this financial year.
(iii) Development of dipping tanks
The Department has further felt it critical ensuring that each deserving
community farming in livestock is provided with a dipping tank that will play a
key role in eliminating ticks responsible for tick borne diseases that have a
negative impact in the production of quality livestock and its products. The
demand for dipping tanks stands at 246 tanks at R23 million. Funds available
this financial year amounts to R3,5 million.
(iv) Accessing tractors and implements
When asking communities why the lands are not ploughed, they all give the
same answer that there are no tractors. The Department is responding by making
these tractors available that will make tilling of lands possible thereby
achieving the ideals of green revolution. So far, the Department has budgeted
for an additional twenty-five tractors in this programme. These will continue
being distributed to the communities as per agreed upon arrangements since the
process started in February of 2006. The communities will enter into a
contractual agreement with the department as far as management and maintenance
of these machines is concerned. The demand at the moment stands at 167 units
with equipment at R58, 8 million.
Amount available is R10, 6 million for twenty-five units.
(v) Rehabilitation of irrigation schemes
The Department has committed itself to the rehabilitation of all the six
large irrigation schemes in the province. This process will initially take a
period of five years, starting April 2006/07 financial year. In implementing
this policy priority peg, an Israeli Development Agent has been engaged to
provide technical advice and co-ordination in the rehabilitation process.
Amongst the activities involved in this process are social mobilisation;
formation of socially accepted institutional arrangements (producerâs
assemblies etc); repair and development of infrastructure, training and
appropriate mentorship. An amount of R13,7 million has been allocated.
5. Human resource development
The Department recognises that human capital as critical in achieving all
its goals. Based on this the Department has developed a well co-ordinated
tailor made skilling and capacity building programme for the officials
(extension officers) who will be providing technical support to the
farmers.
The University of Fort Hare, University of Pretoria and Wageningin
University in the Netherlands are already involved in the development and
capacitation of extension officers, the extension programmes for the Department
as well as appropriate extension methodology that will best suite the
implementation of the six pegs policy priorities.
(i) Leanerships
The Department is participating in the process of exposing high school
matriculants to its programmes in partnership with the Department of Labour.
The learnerships programme is targeting 120 beneficiaries during this financial
year.
(ii) Internship
The internship programme is focusing on the provision of experiential
learning to university/ college/ technikon graduates who are job seekers. A
combined budget for learnership and internship is 120 beneficiaries for 2006/07
financial year is R4,2 million.
(iii) Farmer training
The agriculture education, formation and training strategy will be
implemented this financial year. This takes care of the training strategies for
both farmers and non-farmers as per national Department of Agriculture
Comprehensive Agricultural Support Programme (CASP) frameworks.
The Department has set a target of training and capacitating 33 000 farmers
over a period of three years starting in April 2006/07, in partnership with the
Department of Labour and other relevant partners. The departmental training and
research centres are well positioned to accommodate the training needs of the
farmers as well as the officials.
The role of the Further Education Training (FET) colleges and the University
of Fort Hare towards the development of a curriculum that will address the
needs and challenges faced by the farming communities in the second economy
will be enhanced.
6. Job creation
The departmental programmes are labour intensive. These programmes provide
jobs and are a source of income to many at different stages of the
programme.
Notable programmes include the massive food production that provides jobs as
early as during land preparation through to harvesting of the crop. The same is
anticipated in all the policy priority pegs. Local communities in these areas
are the target groups.
The demands and backlog from the six pegs policy priorities, as listed
above, are unlikely to be met within this financial year and subsequent
remaining Medium Term Expenditure Framework (MTEF) period.
Madam Speaker, in implementing the six peg policy priorities, the Department
divided the province into two parts the Eastern part (Amathole, O.R.Tambo,
Alfred Nzo and the rural or communal parts of both Chris Hani and Ukhahlamba
Districts). These areas area primarily rural while the Western part (Cacadu and
commercial parts of Ukhahlamba and Chris Hani) are mainly developed. Due to the
poverty levels in the eastern part of the province, this area will receive 80
percent of the total budget for all the six pegs policy priorities and the
Western part will get the remaining 20 percent.
7. Administrative support
The Department is in the process of transforming and realigning its
functional structure for the purpose of compatibility between it and the six
peg policy priorities, thereby responding to the demands of the farming
communities.
8. Technical support
The Department will continue offering assistance in the provision and
maintenance of healthy flock through the interventions by the veterinary
services namely: provision of dipping material at the value of R20 million.
Farmer support and development will be provided through extension services,
research and technology development and the new focus on training for farmers.
A total of R 135,300,000 has been budgeted for these services. These farmer
development strategies will receive high priority and attention will be given
to the development of cooperatives, farmer organisations, producer assemblies,
producer councils and management committees. These social and management
structures are essential for the effective growth of the small farmer sector
and its ability to negotiate and benefit from the agricultural developed
sector. Attention will be given to farmer representative organisations in order
that they will more effectively serve the function of promoting the interests
of all farmers in the province.
9. Financial support
In addition to infrastructure, farmers require finance and credit in order
to be productive. During this past year the East Cape Rural Finance Corporation
Board (ECRFCB) has taken steps to transform Uvimba to make more credit
available at affordable rates. The Department has made an allocation of R18,5
million for achieving the purpose.
The national Department of Agriculture and Micro Agricultural Finance
Institution of South Africa (MAFISA) has been established and will provide
micro loans, particularly for small producers. This is a national micro finance
scheme that enables individuals and co-operatives to access loans of up to R100
000 per individual. Since its inception in 25 December 2005, farmers have been
financed to the tone of R600 000.
Conclusion:
Madam Speaker, the Department of Agriculture will implement the green
revolution through the application of the six-peg policy and sectored
programmes. This will promote the development of the agricultural sector,
providing creative synergy between the developed and the developing sectors,
supporting Agri â Broad-Based Black Economic Empowerment (AgiBBEE).
My Department will stimulate a new dynamic focus in the Province on the
conservation, management and rehabilitation of land and other natural
agricultural resources to eradicate hunger and poverty.
Promotion of rapid, sustainable, agricultural growth in the province of the
Eastern Cape will support the Millennium Development Goals (MDGs), the NEPAD
Comprehensive African Agricultural Development Programme (CAADP) the Provincial
Growth and Development Plan (PGDP) and Accelerated and Accelerated and Shared
Growth Initiative for South Africa (AsgiSA).
The green revolution and the six-peg policy provide a basis for creating
work and fighting poverty in rural communities, the agrarian way.
I thank you!
For details of the budget, please contact the Department.
Issued by: Department of Agriculture, Eastern Cape Provincial
Government
9 March 2006
