2006/07 delivered by MEC Masuku
11 May 2006
Madam Speaker
The Honourable Premier
Members of the Legislature
Members of the Executive Council
Representatives of organised business and labour
Traditional Leaders
Distinguished Guests
Ladies and Gentlemen
The vision of the Agriculture Sector Strategy in South Africa is to build a
united, productive and prosperous Agriculture. This approach is derived from an
assertion that there is an organic umbilical chord, which links humanity and
the rest of the animal kingdom to the land. Biblical genesis, great minds and
developments over the years affirmed this assertion that no freedom and
prosperity of nations without access to land. As we referred in the previous
policy and budget speech, the journey to the Promised Land outlined in the
Freedom Charter of 1955, still goes on.
Our focus now will not only be on the provision of assistance, but also in
the impact that the various inputs have on the unity, productivity and
prosperity of agriculture.
In our journey to build and consolidate unity, enhancing productivity and
ensuring prosperity, we are compelled to continuously respond to the following
questions:
* What is it that we should do more to increase agricultural output and
productivity substantially to the direct benefit of the average farmer and the
landless rural dweller while providing sufficient food surplus to support an
urban, industrial sector?
* What else should we do to transform the traditional low-productivity of farms
into high-productivity commercial enterprises?
* Is raising agricultural productivity sufficient to improve rural life?
* How do we accelerate the process of bridging the gab between the First and
Second economy?
Madam Speaker, let me point out right at the outset that there has been, and
still are, no simple and straightforward answers to these complex questions.
However, with the macroeconomic fundamentals in place, Business Confidence
being high and the Consumer Confidence Index sitting at its highest level in 25
years, coupled with the enthusiasm being displayed by the rural masses, farmers
and agricultural experts - there is no doubt that a concrete foundation has
been put in place from which agricultural growth and development could be
accelerated.
Without doubt, the future looks good for the South African economy â a
statement emphasised by President Thabo Mbeki in his state of the Nation
Address earlier this year, when he contended that:
Our country has entered its Age of Hope. And our people know from their own
experience that today is better than yesterday, and are confident that tomorrow
will be better than today.
Complementing these positive developments in our economy is the favourable
outlook of certain international markets. According to ABSA, in their 2003
article titled âLong-term Prospects for the South African Economy 2003 2017â
the end of international political and economic isolation brought about an
automatic increase in the exposure of local producers to the harshly
competitive forces in the global economy. The results has been the need to
restructure industry in a attempt to become increasingly efficient and
competitive, with differing results according to sector. The benefit has been a
dramatic increase in export opportunities for domestic producers.
This is further evidenced by EUROPA an agricultural report published in
February 2006, which show that the prospects for agricultural markets and
income during the next six to seven years look favourable.
According to STATS SA the provinceprovinceâs contribution to Gross Domestic
Product (GDP) stood at 10,1% in 2003 as compared to 11,1 in 1999 and with
regard to Gross Geographical Product, the province contributed 4,9% in 2003 as
compared to 5,1% in 1999.
However, trends show that during 2004/05 the estimated volume of
agricultural production was 5,7% higher than in 2003/04. The volume of field
crop increased by 12,9% compared to the previous year as a result of higher
maize and soya-bean production. Horticultural production increased by 4,4%
while animal production rose by 1,2%.
With regard to employment, agriculture remains the largest absorber of
labour in the province.
Madam Speaker, we, as government, private sector, labour unions and the rest
of civil society involved in the agricultural sector, are expected to grab
these opportunities presented to us, since the challenges of poverty, hunger
and unemployment are still with us and call for a collective response.
We believe that through the agricultural sector we can improve our socio-
economic conditionâ a view also expressed by Gunnar Myrdal, a Nobel Laureate in
Economics when he asserted that âIt is in the agricultural sector that the
battle for long-term economic development will be won or lostâ.
Madam Speaker, as a Department responsible for the agricultural sector,
environmental sector and land administration activities, we cannot agree more
with Gunnar Myrdal.
The agricultural sector remains one of the key sectors in the economy, the
province included. Its ability to contribute meaningfully towards poverty
alleviation, job creation and rural development cannot be overemphasised.
The role of agriculture in the economy of the country was also emphasised by
Minister Thoko Didiza in her recent Budget speech in Parliament on 28 March
2006 when she argued that: âEvery R100 that is invested in agriculture
generates more jobs and income distribution than in any other sector of the
economyâ¦the share of the sector on GDP has fallen consistently over the past
five yearsâ¦yet in terms of employment the sector is still a major employer.
Furthermore, more than 3 million people that live below the poverty line in our
entire country live in rural areas, many of which depend on agriculture and
agriculturally related sectors.â
Madam Speaker, let me quickly point out that agricultural and other
socio-economic development initiatives are undertaken in manner that they
respond to the words of wisdom expressed by Todaro et al, when they said:
âFuture growth and overall quality of life are critically dependent on the
quality of the environment. The natural resource base of a country and the
quality of its air, water, and land represent a common heritage for all
generations. To destroy that endowment indiscriminately in pursuit of
short-term economic goals penalises both present and especially, future
generations.â
In essence, we need to continue to view environmental protection as the
integral part of growth and development. The rich and poor people in our
society are increasingly demanding to see development meeting the needs of the
present generation without compromising the ability of the future generations
to meet their own needs.
Performance of the previous budget
Madam Speaker, like the other previous budgets, we intend utilising the current
budget of R631,7 million to continue strengthening the processes aimed at
building unity and prosperity for all our people in the provinceprovince.
Looking at the previous budget, we directed most of our resources towards
driving strategies and programmes aimed at addressing the priority areas of
work identified by government.
Moving from the premise that we are largely an agrarian province that is
dominated by large rural areas, we are convinced that there is no way in which
agriculture could grow and develop without the involvement of the rural masses
themselves.
As part of promoting integrated rural development, R15 million was spent on
Masibuyele Emasimini, purchasing tractors, small machinery, fertilisers and
seeds to be used by beneficiaries in places such as Mbuzini and Matibidi in
Ehlanzeni District, Dagga kraal and Dundonald in Gert Sibande District, and
Machipe and Kameelpoort in Nkangala District.
Madam Speaker, one must point out that the introduction of mechanisation saw
the peasant farmers of tilling a total of 1 355 hectare of land in the
provinceprovince, something which was not the case before.
As a Department we really appreciate the change that this programme has
brought to our rural masses in the above-mentioned areas. It has unleashed
enormous energies and enthusiasm from these masses. Their willingness to
participate in this programme and determine their own destination generated new
agricultural opportunities.
These new opportunities necessitated that we review our approach to
âMasibuyele Emasiminiâ programme.
For the upcoming financial year, we intend consolidating our resources and
also taking into account issues such as backward and forward linkages,
including value adding. As a consequence, we will be running three pilot
projects, one in Daggakraal, the second one in Matibidi and the last one in
Mamaneng.
However, for those areas that benefited from this project will continue to
get some support, especially in maintenance services.
Linked to this programme, is another intervention called the Integrated Food
Security and Nutrition Programme whose primary focus is also on poverty
alleviation and food security for the people in the provinceprovince. To date 1
900 starter packs were distributed to those most vulnerable individuals
identified by the Department of Health and Social Development. For the year
ahead we will be focusing on a best model that can be used to roll out this
programme in an efficient and effective manner.
Job creation
Looking at the issue of employment, agriculture remains the strongest sector in
terms of job absorption. According to Stats SAâs March Labour Force Survey, the
agricultural sector employed an average of 22,1% of the provinceprovinceâs
labour force in 2004 â a percentage that far surpassed the mining and
manufacturing sectors which recorded 9,8% and 10,7% respectively in the same
year.
As part of ensuring that more jobs are created for our people and
simultaneously increasing productivity, in the previous Budget we dedicated a
total of R67,6 on infrastructure development activities. This includes the
provision of irrigation systems, construction of small dams, fencing and
distribution of tractors to land reform beneficiaries.
Infrastructure was developed for emerging farmers, especially in areas where
value addition opportunity existed. In addition, technology and skills transfer
form the core of these activities.
Over the next three years we intend building on this strong foundation to
pay more attention on value adding activities and other economic linkages that
can fast-track emerging farmers to come into the mainstream economy.
Further on the issue of job creation, the Department among other things is
running a LandCare programme that follows the principles of an Expanded Public
Works Programme. The LandCare programme supports projects addressing land
degradation and it is funded through a National Grant. In the previous year,
the provinceprovince received an amount of R7 million of which it was utilised
to fund 23 projects.
Relating to livestock farming, the Department continued to provide excellent
veterinary services to farmers, ensuring that those farmers who are involved in
the livestock industry for domestic and the export market continue to generate
income.
During the course of the previous financial year the province was affected
by drought and animal diseases outbreaks such as Newcastle disease resulting in
animal mortalities. Government responded to the plight of the livestock farmers
by providing fodder to drought stricken areas. A R15 million conditional grant
was made available by national Department of Agriculture for fodder relief. The
Honourable Premier and the Executive Council realised that this amount was not
sufficient to deal with the extent of the drought situation in the
provinceprovince. An additional R15 million was then made available to augment
the national grant.
Control measures were also put in place to arrest the situation of animal
disease outbreaks We also continued to monitor and control Bovine brucellosis
which became a threat to dairy and beef industry.
We remain on high alert and in a state of readiness to respond to any
emergence of bird flu in the provinceprovince or in the areas of our regional
trading partners. Contingency plans and standard operating procedures are in
place and extensive surveys are conducted twice annually. All farms exporting
poultry are monitored on a monthly basis.
Ten new cattle dip tanks were constructed this year and four new animal
health centres (veterinary clinics) were constructed in 2005. These centres
will expand clinical service delivery to many communities who have never
benefited from veterinary services in the past.
Let me take this opportunity to thank the veterinary staff for working
tirelessly to deal with these health challenges and also the public for its
cooperation.
Agri-BEE
Madam Speaker, the question of empowerment to the historically
disadvantaged, particularly the poor, remains a serious challenge. In my
previous policy and budget speech, the Department promised to pursue this
thorny issue with vigour. To date there exist a Draft Transformation Charter
for Agriculture whose primary purpose is to serve as guideline for empowerment
in the sector. The Department, together with National, conducted three
consultation workshops in the provinceprovince with the view of canvassing more
inputs before finalising the Agri-BEE Charter. One must indicate that our
people participated fully and made invaluable contributions during those
sessions. This is highly commendable.
Land Reform
Madam Speaker, many economists agree that land reform hold the key to
agricultural development, especially in many Less Developed Countries.
Madam Speaker, the 225 farms have been given to black people in the
province, through the various land reform programmes, Settlement Acquisition
Grant(SLAG), Land Redistribution for Agricultural Development (LRAD) and
Restitution.
Madam Speaker allow me to indicate that the representatives of the new
owners of the 225 farms are within our midst today.
This Madam Speaker is a practical demonstration of our commitment, as
government, to change the skewed land ownership patterns thus contributing
towards building a united and prosperous agricultural sector.
We are all aware that most of the beneficiaries are confronted by numerous
challenges of inadequate skills and insufficient capital to use the acquired
land to its full productive capacity. This put pressure on the limited
resources of the province, really stretching it to the limit to accommodate a
growing pool of poor farmers who are entering mainstream commercial
agricultural farming.
South Africans, black and white, are increasingly working together to find
lasting solutions to these challenges and are standing firm in their belief in
the words spoken by the State President Thabo Mbeki that says:
Whatever the setbacks of the moment, nothing can stop us now! What ever the
difficulties Africa shall be at peace! However improbable it may sound to the
sceptics, Africa will prosper. Indeed Madam Speaker the tide has turned
bringing the age of hope.
I want to congratulate Peter Mhangwane on his appointment as the Regional
Land Claims Commissioner for our province and appreciate the work that has been
done so far. I also like to pledge our support to the processes and plans that
have been put in place to make sure that all land claims in our province are
finalised as per the target of 2008.
Madam Speaker, let me also take this opportunity to report to this august
house that we managed to hold our provincial land summit to address land
challenges in Mpumalanga province. The provincial land summit culminated to a
National Land Summit that was convened by the Minister for Agriculture and Land
Affairs. The Minister has already commented on the recommendations of the
Summit and further charted the way forward which includes, inter alia:
* review the willing buyer willing seller principle
* look at a combination of acquisition strategy, which may mean proactive land
acquisition
* fast-track the implementation of CLARA
We are glad that the Minister has already met the House of Traditional
Leaders in the province to discuss the implementation of CLARA and we welcome
the acceptance and commitment of the House to implement this important piece of
legislation.
Land Administration
Madam Speaker, we are delighted that more than 5000 title deeds have been made
available for people who did not enjoy security of tenure on their
properties.
In order to improve this process, a need was identified to conduct aerial
photography for major informal settlement areas in order to determine the exact
number of even required by these residents. This we do in order to formalise
these areas for housing and infrastructure development projects to ensure their
long - term sustainability.
During the current financial year the Department will start a process of
addressing the sometimes outdated and fragmented planning legislation in the
province. This process will involve the development of land use planning
legislation over the next three years and developing land use spatial planning
for the province. The legislation will integrate environmental, agricultural
and development planning elements to streamline development planning in the
province.
Priorities for 2006/07 financial year
Madam Speaker, as we continue to respond to the difficult questions rose
earlier in my speech and also ensuring that we win the battle for long-term
economic development, we have set ourselves priorities for the years ahead of
us. These priorities are informed by our past experiences and recent national
and provincial policy imperatives.
But above all, these priorities were developed with the understanding
that:
It is in the agricultural sector and environmental sector that the battle
for long-term economic development will be won or lost.
These are priorities that attempt to respond to the clarion call made by the
President, in his State of the Nation Address, when he asserted that:
âWhile we must indeed celebrate the high levels of optimism that inspire our
people, who are convinced that our country has entered its Age of Hope, we must
also focus on and pay attention to the implications of those high levels of
optimism with regard to what we must do together to achieve the objective of a
better life for all our people. We have to respond to the hopes of the people
by doing everything possible to meet their expectations.â
The President went on to say that:
âWe should move faster to address the challenges of poverty,
underdevelopment and marginalisation confronting those caught within the Second
Economy, to ensure that the poor in our country share in our growing
prosperity;
âWe should make the necessary interventions with regard to the First Economy
to accelerate progress towards the achievement of higher levels of economic
growth and development of at least 6% a year.â
Madam Speaker, the President also touched on the Accelerated and Shared
Growth Initiative of South Africa (AsgiSA), an intervention programme meant to
assist in addressing the challenges of both the First and Second economies
alluded to above.
Among other things, the purpose of AsgiSA includes:
* the reduction of unemployment levels drastically
* making large investment through public-private partnerships
* the acceleration of infrastructure investment in the urban and rural
areas
AsgiSA has also identified particular sectors of our economy for accelerated
growth which include, inter alia, Bio â fuels and Agriculture.
Anchor projects
Madam Speaker, the introduction of AsgiSA has necessitated us to review our
developmental approach. After a thorough assessment of the support that we
provide to farmers, we realised that the impact of such support on poverty and
unemployment is quite minimal. One of the reasons is that we spread our
resources, human and financial, extremely far and thin. We have therefore
decided to have a focused and integrated approach. It is an approach aimed at
fostering the consolidation of resources to achieve maximum impact on poverty
and unemployment. Basically, we are arguing that âthe fewer the betterâ.
Already we have identified ten agricultural sub-sectors which we believe
have the potential and opportunity for the packaging of anchor projects. This
involves:
* soya beans
* macadamia
* sugarcane
* essential oils
* livestock and
* grapes and
* apples
We hope to complete most of the feasibility studies of these projects during
the course of this year and ensure that they form part of our Investment Plan.
We are also looking forward to tap from the resources set aside for the
implementation of AsgiSA.
The AsgiSA initiative and the provincial approach to it have triggered a
positive response from a wide spectrum of Agricultural experts. To this end we
have decided to convene a conference during the course of this year to explore
and consolidate the various innovations with regard to this initiative.
Provincial Agricultural Development Plan
Madam Speaker, we have also realised that our efforts as stakeholders in the
agricultural sector are not properly coordinated. Our approach to agricultural
growth and development is disjointed and not following the same growth path
trajectory. We have deemed it necessary and expedient to develop an
Agricultural Development Plan whose primary objective would be to provide a
framework that will guide agricultural activities in the province, particularly
at local government level. Already the process of developing such a Plan has
been set in motion.
What we are emphasising is that, among other things, plans must assist all
stakeholders involved in the agricultural sector to work in partnership towards
improving small-scale farming and the consolidation of modernised commercial
farming.
Environmental services
Madam Speaker, it is clear that this decade is the continuation of the
creating of a better society that is well informed about environmental issues
and that cares for sustainable development.
On the 15th of November 2005 we succeeded to launch 2005 â 2015 as a Decade
of Education for Sustainable Development (DESD in line with the United Nations
Declaration. At the launch government committed to work closely with
non-governmental organisations, community organisations, trade unions, business
and other stakeholders to promote education for sustainable development and to
draw up a programme of action.
A programme of action has been developed and agreed upon by stakeholders at
a conference held on 9 March 2006. The Conference addressed challenges ranging
from poverty, land use, water quality, quality education, gender inequality,
environmental degradation, biodiversity management, HIV and AIDS to climate
change.
It is encouraging Madam Speaker, to see a growing realisation in our
communities to the fact that sustainable development and environmental
protection need not be opposing poles but integral part of growth and
development, requiring all of us to think globally and act locally.
To ensure effective community participation, the Department have decided to
assist in building capacity of municipalities to respond appropriately to
environmental challenges. To this end, the Department will be deploying
environmental officials to municipalities.
I would like to take this opportunity to thank the Development Bank of
Southern Africa (DBSA) for working in partnership with us in this project.
We have also made funds available to develop models for integrated waste
management systems to assist municipalities to deal with the challenge of waste
management. To this end, two new pilot projects have been initiated in addition
to the project that was started in Mbombela Municipality. These are in Gert
Sibande and Nkangala District Municipalities.
Madam Speaker, keeping our environment clean is high on our agenda. We are
going to pay special attention to ensure that we keep our province clean. We
join the entire provincial government in its quest to make Mpumalanga a
pristine province and a safe haven for tourists.
As part of building capacity in the province, we will be sending a team of
officials from both provincial and local sphere to Canada to go and exchange
best practices on environmental management systems in June this year. Canada
has been chosen as the country which boasts best systems of environmental
Management, which the province can learn from. We also want to welcome the
decision of the Executive Council to prioritise environmental management by
encouraging all members to explore best practices in other parts of the
world.
Over the years we have started various initiatives to encourage our
communities to keep their surroundings clean. For example the Cleanest Town
competition, which saw 80% of our municipalities enthusiastically participating
in this competition by the year 2005.
Honourable Members, we want to once more congratulate the winning
municipality for 2005 which was Govan Mbeki, with Delmas attaining a second
spot and Mbombela third. Our congratulations go to all the municipalities for
their unwavering commitment and their efforts to keep Mpumalanga clean.
Together with our partners we are consistently engaged in raising
environmental awareness and encouraging people to take action in solving
environmental problems. Key to these partnerships I would like to single out
the support that is rendered by BMW-SA for promoting School Environmental
Education Development (SEED) programme for greening our participating schools
and helping with organic food production.
Madame Speaker, I would like to also acknowledge the partnership we continue
to enjoy from GTZ (Mpumalanga Rural Development Programme, Siyaphambili Trust)
and SAPPI for sponsoring the other programmes of Adopt a Schoolyard/ Spot
programme.
The Department as part of building planning frameworks for decision-making
has been involved in conducting Conservation Spatial Assessments. These
assessments are geared towards the development of a Conservation Plan for the
province. This was done together with Mpumalanga Parks Board, which is now
merged with Mpumalanga Tourism Agency to form the new and exciting Mpumalanga
Tourism and Parks Agency. The assessment has highlighted important ecological
and natural resource areas in the province that will need protection because of
their rich biodiversity that may be lost if not properly managed and
protected.
In recent years there has been an outcry from communities that the cost of
doing business was escalated by the tedious processes of the Environmental
Impact assessments. This has also found its way to our own Provincial Growth
and Development Strategy. In response to this, government repealed and replaced
the Environmental Conservation Act with new regulations issued in terms of the
National Environmental Management Act (NEMA), which relaxes the assessment
procedures for certain levels of developments.
Budget Summary for 2006/07
Madam Speaker, the priorities highlighted above will be driven through eleven
programmes budgeted as follows:
We will be spending an amount of R119,794 million on infrastructure
development, focusing mainly on, inter alia, planning, designing and
construction of small dams, including soil conservation activities.
R158,435 million will go to farmer support activities which involve
infrastructure support to land reform programmes, poverty alleviation
activities and also to support the three pilot projects on Masibuyele Emasimini
and other general extension services. This includes a transfer amount of
R37,238 million to Mpumalanga Agricultural Development Corporation (MADC) to
assist with agriculture anchor projects and it will sell its non-core
assets.
Veterinary services will receive an amount of R47,300 million to continue
conducting animal inspection, vaccination and testing of animal diseases.
Technical Research and Development will receive R23,766 million to conduct
animal and crop trials, including research on the fishing industry but above
all, also to provide research services to farmers. Certain money will spent on
updating our information systems.
R15,010 million will go to Agricultural Economics mainly to conduct
feasibility studies on envisaged Anchor projects, provide infrastructure
support to value adding activities and also on drought relief.
Structured Agricultural Training will receive R24,708 million for skills
development purposes of both students and farmers, especially the emerging
ones.
Land Administration will receive an amount of R21,476 million to continue on
the processes aimed at providing full ownership to land reform beneficiaries
and also the development of the Land Use Spatial Plan
R165,733 million will go to Environmental Services to develop a Provincial
Integrated Management Environmental Plan, conduct awareness campaigns and
assist municipalities to develop their own integrated municipal environmental
plans. More focus will also be given on capacity building of
municipalities.
Conclusion
To conclude Madam Speaker, let me emphasise once more that our commitment
towards building a united, productive and prosperous agricultural sector and a
safe environment is unwavering. We have declared war against poverty and
joblessness. Through the agricultural sector we believe that we can win this
war. As better put by Gunnar Myrdal:
âIt is the agricultural sector that the battle for long-term economic
development will be won or lost.â
We believe that in partnership with all the stakeholders involved in the
agricultural sector and other related activities, we will continue to find
better solutions to those questions that I have raised at the beginning of my
speech.
We really appreciate it very to those individuals who spare no energy but
contribute wholeheartedly towards building a better tomorrow for many
generations to come.
Let me take this opportunity to thank the farmers, small and big business,
for their contribution in the agricultural sector. Together, we can make a
difference to the challenges of poverty and unemployment.
My thanks also go to the Premier, Members of the Executive Council and
Legislature for your assistance and guidance to the Department, basically
ensuring that we deliver on our mandate.
I would also like to thank all the officials in the Department for their
hard work and quest for excellence. Talking of excellency, let me express my
special thanks to the Veterinary Services and, the Research and Technology
Development directorate for coming first and second position respectively in
the Premiersâ Awards in the previous financial year. I hope we will be able not
only to defend our title but add more trophies on our shelf.
Madam Speaker, let me end my speech by emphasising again what the President
echoed in his State of the Nation Address that:
Our people are firmly convinced that country has entered its Age of Hope. They
are convinced that we have created the conditions to achieve more rapid
progress towards the realisation of their dreams. They are certain that we are
indeed a winning nation.
I thank you
Issued by: Department of Agriculture and Land Administration, Mpumalanga
Provincial Government
11 May 2006
