by MEC D Magadzi, Limpopo Provincial Government
22 May 2007
Honourable Speaker
Honourable Premier, Mr Sello Moloto
Limpopo Farmers in their various commodity groups
Representatives of Agribusiness
Women Farmers of Limpopo
Members of Agricultural Advisory Forum
Agricultural Strategic partners
Honourable members of the House
Honourable Speaker, both the State of the Nation and the State of the
Province Addresses emphasised the need to increase the level of investment in
both First and Second economies. Furthermore, they instructed that we need to
implement programmes to ensure broad-based economic empowerment. Even more
telling, they pronounced that we need to speed the processes of skills
development so that we can manage all these challenging transformation
processes. Our key objective as a nation is to bring about meaningful
transformation of the Agricultural Sector based on the mandate and
transformation agenda of the African National Congress (ANC). The agricultural
sector must become a business in which any member of our community can
participate and derive economic benefits.
Throughout the years of democratic governance we have put in place
legislative support such as empowerment mechanisms such as AgriBEE to allow
Blacks to enter the business of farming and become role players in the
agricultural economy. Our interventions in this sector are biased towards black
agribusiness entrepreneurs and the industrialisation of the sector in such a
way that it continues being a strong pillar for economic development in our
rural province. We are constantly engaging local municipalities to make
agriculture an integral part of their local economic development plans.
Vital to this sector is to advance the fight against poverty and joblessness
especially for a rural province like Limpopo. We have recently observed the
emergence of a trend by farmers who are proactively empowering their workers
and we welcome this development and call upon other farmers to follow emulate
the trendsetters.
I am also happy to inform the hours that our cross boundary process has been
successfully completed and as agriculture we have gained only R2,1 million
while we shed R20,9 million to Mpumalanga. The outcomes are however acceptable
since we are in the same government and there are no losers and winners.
A brief review of key agricultural indicators suggest that the sector is not
generally winning and compounding the situation for South Africa and Limpopo in
particular is the persistent dry weather conditions leading to stressed water
availability.
Farm debt levels in Limpopo are reported to have declined by 41% year on
year. This situation can be attributed to the settlement of land claims for
most commercial white farmers.
The increase on interest rates, increased cost of energy (diesel,
electricity, fertilisers and tractor costs) and variable exchange rates have
jointly and separately led to lower increases in agricultural investment in the
previous year. This situation is not particularly palatable for new Black
farmers entering the sector. The increased inaccessibility of Micro
Agricultural Finance Institutions of South (MAFISA) and bureaucracy of the Land
Bank is neither positive for the new farmers to start with gusto their new
challenge.
On the brighter side, agribusiness productivity has improved and vertically
integrated value chains are reaping good returns. This has also increased their
profit bottom lines and somehow increase jobs created in the sector from the
previous year. The cost-price-squeeze will remain a nemesis for the sector and
our approach is full value-chain investment and involvement by the new farmers
and entrepreneurs. Ownership in the value-chain by the players of the industry
has proven the most feasible way to ensure sustainability. As an example, the
United States of America's (USA) Land 'O Lakes Dairy Farmers Co-operative has
proven over decades this conviction. South African dairy and other industries
that are under highly concentrated private hands almost bordering on monopoly
must ramshackle themselves and use the country's Broad Based Black Economic
Empowerment (BBBEE) legislation and other instruments to ensure the country's
farmers survival.
While we acknowledge these intricate challenges and bright spots, the
perpetual danger of stressful water condition remains. Over the years the
department has been on the forefront to discourage misuse of water by farmers.
The department has gone further to assist farmers at irrigation schemes and
private farms to invest in water-saving technologies. The department has since
2004 banned flood irrigation and is phasing it out at all projects where the
state is involved.
Our performance towards millennium target for every country to provide 10%
of its budget to agriculture is still far from being realised. For the past two
years and this year, we still stand at four percent of our provincial
allocation. It is time to ensure that this anomaly is rectified and with
agriculture's contribution slowing down, we may find things tougher in the near
future.
The 2006/07 was also characterised by a number of landmark developments
among them the changes in leadership and a new Minister for Agriculture and
Land Affairs entered the scene. Honourable Me Lulu Xingwana was warmly received
by the sector. She has introduced Gijima approach to all our programmes and
Limpopo Department of Agriculture (LDA) is no exception in this regard. This is
all about fast-tracking service deliver in the agriculture and land portfolios.
All our programmes such as the Comprehensive Agricultural Support Programme
(CASP), Land reform, Skills Development and Support Services to farmers are
targeted. Accordingly Gijima has done away with business as usual approach and
everything we do we instil a sense of urgency.
The Transformation Charter for Agriculture (AgriBEE) was accepted by the new
Minister in late 2006 and all sub sectors must agree to adopt it so that it can
become our guideline in terms of Section 12 of the BBBEE Act, No 53 of 2004
Honourable Speaker, as in the previous years, I wish to register our
achievements and performance for the 2006/07.
The 'Local is Lekker' and 'nothing about us without us' approaches are
working for the department and its partners in improving the integration and
management of agriculture at the local municipality level. The capacity of
Local Agricultural Municipality Management and the leadership of the Executive
Management of the department and has adopted best practice system to enabled
the department to deliver services efficiently and appropriately to our
targeted clients.
Since the appointment of 25 local agricultural municipality managers in
February 2006, planning integration and the Integrated Development Plan
(IDP)/Local Economic Development (LED) processes have since improved. The
contribution of agriculture as well as the importance of agriculture as an
economic development thrust in local municipalities is starting to be
appreciated by all. More IDPs have more agriculture projects than they had two
years ago. This shows that you cannot be a rural province without agriculture
as abase for your economic development.
In 2003/04 our total adjusted appropriated budget was R804,6 million and we
utilised R786,4 million. This is equivalent to 97,74% utilisation or 2,26%
saving. That was great!
In the 2006/07 Budget speech I indicated that our 2004/05 budget was R905
million and our actual expenditure was R818 million leaving about R87 million
unused and returned to provincial Treasury. This is equivalent to 90,4%
utilisation or 7,5% saving. That was not improvement at all!
For the 2005/06 our allocation was R1 billion. The department has realised a
nine percent saving. That was one biggest drop in performance from the other
previous years. That was not acceptable at all!
Honourable Speaker, the 2006/07 financial year had a budget of R1,029
billion (R1 029 159 000). Our spending as at 30 March 2007 was R1 024 billion
(R1 024 537 000). This is equivalent to 99,50% spending. As I said earlier, by
my standards, this is not just great, but a fantastic achievement!
Honourable Speaker and Members of the House, unlike the 2005/06 year when I
had to present mitigating factors for my paltry performance, this year I have
reasons that have changed the situation around.
While technical planning capacity in engineering, natural resource
management, research-cum-innovation and agricultural economics remains our
challenge the reality is we do not have enough and required quality in these
areas.
In line with what we mentioned in last year's budget speech the Executive
Senior Management Team of the department had to implement new budget spending
tactical strategy.
This new tactic that intended to strive towards 100% spending in 2006/07 is
based on the following:
1. Massification of projects, targeting and promoting projects above R1
million, thus managing the minute and numerous small projects out of the
system. This approach release planning capacity and turn-around for projects
were improved.
2. Visibility of intervention, this means projects had to ensure physical
visibility, involvement and make the difference in jobs created and number of
people involved.
3. Consolidated and integrated project planning approach, by ensuring that a
value chain approach is used per project this increased the co-ordination and
planning to realise the needs for each project. The black tea rehabilitation is
a case in point. I will elaborate later.
4. Target Client-specific in a locality, the rationale here is that target
specific clients per commodity and particular area and assist them to
sustainably manage their opportunities into the future. Both Settlement Land
Acquisition Grant (SLAG) and Irrigation Projects are testimony to this
tactic.
All these for tactics are based on the four Service Delivery Strategy of the
department being:
* commodity based
* value chain analysis oriented
* project approach
* local municipality focus.
Honourable Speaker, for the year ending as at 30 March 2007, the performance
of specific programmes is as follows:
* Administration has spent about 100% of its allocation. The excellent
spending was due to filling of most vacancies, the settlement of Agriculture
and Rural Development Corporation (ARDC) workers' severance packages and
transfers to ARDC for the revitalisation of the tea estates.
* Sustainable Resource Management has, under-spent its budget by 4,2%. The late
appointment of service providers saw the Revitalisation of Smallholder
Irrigation Scheme (RESIS) only picking up from 1 July 2006. The bulk of the
savings is due to retention fees normally kept for capital projects. However,
due the turn-key approach implemented, the appointment of the six service
providers and one to do quality control, monitoring and evaluation of the work
underway, more ground has been covered considering that their year will
actually end 30 June 2007. The other milestone was to appoint these companies
for two year thus ensuring there is no slow movement during year-end and start
of the financial year.
* Production technical support services realised 100,2% expenditure levels. The
additional expenditure is due to settlement of some retiring staff support and
additional food security projects that were not listed at the beginning year
and the claims due to cross border transfers.
* Veterinary services spent 100% of their budget.
* Technology research and development have 100% to structural improvements and
additional equipment purchased for the research stations and settlement of
retiring staff.
* Agribusiness has realised a 100% spending due to payments of additional goods
and services as well as staff compensation.
* Structured agricultural training also spent 100% due to additional goods and
services, compensation of staff and payment of leave gratuities to staff.
These programmes collectively constitute the achieved 99,6% spending of the
department, the best ever in the five years. You will recall that the
department has been plagued by the excess staff issues for more than ten years.
Plans by the Executive Council to make all departments responsible to reduce
this excess staff have paid off. In 2004 we had 1 348 excess staff. In 2005 it
reduced to 1 109. As at the end of March 2007, we are left with only 418. This
is equivalent to 69% decrease in just two years. The department target to
remain with less than 100 by 31 March 2008. The implementation of severance
package as introduced by the DPSA will be vigorously promoted among the
targeted staff.
Starting with human capacity issues, the department continues to provide
internship training ground for new graduates. In 2006/07 we advertised for 234
interns' placement but only 222 places could be filled. Out of the 222 only 18
could be absorbed into permanent advertised posts. This is about eight percent
absorption rate. For the 2007/08 we already placed 251 interns in various
places. This is about 11,5% increase in intake compared to the previous year.
The total costs for the interns in 2007/07 will be R4,3 million.
The department has gained returns in the following fields, by placing
students who completed their studies from various universities in various
fields, namely:
* one engineer
* two hydrologists
* six soil scientists
* one agronomist
* one pasture scientist
Twee studente is besig met Honneursgrade in hidrologie om te kwalifiseer as
hidroloë. Een student is besig om klaar te maak met sy Meestersgraad in
Hidrologie. Dit is belowende nuus en ons belegging is daarom besig om binnekort
opbrengste te lewer. Vir die 2007/08 boekjaar is 52 beurse met'n beraamde koste
van R2,7 millione aan eksterne studente toegeken wat in skaars rigtings soos
ingenieurswese, ekonomie, ens, studeer.
Dit is ons bydrae tot die menslike hulpbron-ontwikkeling van die
provinsiale
Groei- en onwikkelingsstrategie.
The department continues to achieve recognition on its activities from
various quarters. As we did in 2005 on first prize of Premier's Excellence
Awards, the department repeated that feat and scooped the 2006 Premier's
excellence award again. This is a feat as we are one of the few departments to
win this for two year in a row. In addition to this our research team on seed
multiplication has once again done us proud not to be outdone. Our female
farmers and young farmers also made us proud. I will now further elaborate on
these accolades.
As part of celebrating the 30th Year of Youth Activism, in June of last year
the department hosted a two-day youth and agriculture conference. The aim was
to afford the young and aspirant farmers of Limpopo an opportunity to:
* be exposed to department services and activities
* establish contact with departmental officials and network
* make their ambitions and challenges known to the department and
* the department to acquaint itself with the expectations of young people of
Limpopo so that new strategies in the department should be appropriately
informed.
About 260 delegates from 26 municipalities attended the conference. The
Youth Commission, organised agriculture, Limpopo Agricultural Advisory Forum
(LAAF), the House of Traditional Leaders as well as LED managers in
municipalities were part of the conference. During that conference, young
people who are doing well in agriculture were awarded prizes and two young men
Papa Ezekiel and Tebogo Mojapelo were winners in the two categories of emerging
and advanced farmers.
Having realised that the youth is the pulse of our population, the
Department of Agriculture sees the importance of bringing the youth on board in
different ways. The conference resolved that Youth and Agriculture conference
will be an annual event and this year it is scheduled for 7 and 8 June.
Zwa vhulimi zwi kwamaho vhafumakadzi: Mutatisano wa shango wa mulimi wa
mufumakadzi wa nwaha ndi tshiga tsha u sumbedza uri Dzingu la Limpopo li na
maanda a u kona vhulimi vhu leluwaho kha shango lothe. Vho Livhuwani Mulaudzi
vho dovha hafhu vha wina tshiphuga vha na munwe tsha mubveledzi wa u rengisela
nnda vha tshi itela vhathu vha Limpopo.
Ward (Dzangano la vhafumakadzi kha vhulimi na mveledziso ya mahayani) tshine
tsha vha tshiimiswa tsha shango lothe tsho toka midzi fhano Limpopo. Sa dzingu
ro thoma WARD mahola nga August na zwino ro no vha na ndayotewa na maitele
zwine zwa vhumba LIWARD. LIWARD yo di imisela kha zwithu zwothe:
Kha mveledziso ya matshilele na ikonomi kha vhafumakadzi (nga maanda vha
bvaho kha vhupo ha mahayani). Kha u fhelisa u tsikeledzwa ha vhasadzi nga
vhanna na u fha vhafumakadzi maanda siani la zwa vhulimi na mavu hu tshi
bveledziswa mahayani.
On agronomic research and innovation, the Community Based Seed Production
(CBSP) has again presented the department with another award, as the runner-up
(silver) award for Public Sector Innovation of the year 2006. The department
has constructed seed establishment centre in Spitskop (Capricorn) and Mbahela
Irrigation scheme (Vhembe). The seed establishment centres will be used as seed
processing and marketing centres. To date, the ZM 421 and ZM 521 are registered
seed varieties and are commonly known as Zuzavhusiwana. This is empowerment and
growing local economy at work!
True to our tradition, the department has again sponsored four farmers on a
trip to Fruit Logistica, Berlin, Germany in early February 2007 to expose our
top emerging commercial farmers namely, Messrs. Kgoale LT and Mothoa MB and Me,
Ngwenya and Ms LM Mulaudzi to the international fresh produce fair so that they
can compare their own standards with others and learn how to improve their
farming practices.
The department had the opportunity to host 35 scientists from 11 countries
in the Southern African Development Community (SADC) region to discuss ways of
contributing to improving food security and the livelihoods of resource-poor
farm families in the SADC region. New Seed Initiative for Maize in Southern
Africa â NSIMA - was born. In Malawi Nsima means vuswa, sadza, bogope or pap in
various languages of SADC. This is a CIMMYT funded project, with 10 SADC
countries participating in this project. The NSIMA project in Limpopo province
and SADC aims to develop and stimulate the use of maize varieties with
increased productivity, nutritional value and acceptance under the stress-prone
conditions of resource-poor farmers in southern Africa. Furthermore, it seeks
to strengthen stakeholders in the maize seed sector to work towards a more
diverse and more stable seed industry that is responsive to resource-poor
farmers' needs. The project will actively support the implementation of
regionalised seed laws and regulations for maize.
The department is collaborating with Commonwealth Scientific Industrial
Research Organisation (CSIRO) Sustainable Ecosystems project on development of
emerging farmer crop-livestock systems in northern South Africa. This project
is funded by the Australian Centre for International Agriculture Research
(ACIAR) The project develops and promotes a range of forage and veld management
strategies that assist emerging farmers to match the market specifications for
cattle and developed economic feed year plans, responding to challenges of
climatic change.
The project will also develop guar bean entrepreneurs who will supply the
growing mining industry in Limpopo, particularly platinum mines. The gum from
guar bean is utilised as a flocculent during mineral extraction, providing a
higher recovery rate than equivalent chemical methods. The ACIAR continue to
develop research management capacity of LDA by providing fellowships for both
postgraduate degree and in-service training.
On household food production programme, the department distributed to 2 858
households who received production input packs that varies from family to
family at the cost of R10 million. This assistance relates to the three
categories of production packs, namely egg production layer chickens, vegetable
packs with water storage drum, heifer and milk goats. The projects will receive
R5 million in 2007/08.
Only 33 micro-enterprise projects (Ten less than 05/06) have been completed
and benefiting 339 participating households. All were trained in production and
basic business skills. About R6,62 million has been spent both on these
projects. For the coming year, R6,2 million will be made available.
During 2006 no municipality was declared disaster areas and R3,5 million was
made available for support. However, it is evident that with such worse drought
conditions on us again, the department will have to look for R119 million to
support farmers with various interventions. If all our farmers are members of
farmers' commodity groups and have proper records of what they spent, the issue
of compensation will be easier. I urge all farmers to ensure that their true
records are with their commodity associations at all times.
The department has also installed 28 weather stations in our 26 local
municipalities. These are managed in collaboration with the Agricultural
Research Council (ARC) to ensure credible weather data and required information
for early warning.
Comprehensive Agricultural Support Program (CASP) continues to complement
the much-needed support for our farmers for food production infrastructure. The
following was achieved in 2006 with a total budget of R50,1 million, namely:
910 kilometre of fencing in all districts; 28 irrigation farming units; 33
earth dams; nine dipping tanks; 49 poultry houses, and 21 stock watering
points.
CASP support will be equivalent to R62 million this year. As in the previous
year, proportional allocation is that 75% is for land reform projects, 10% for
poverty alleviation projects and the five percent to continue for disease
control infrastructure backlog in communal areas.
On the disease front, Limpopo registered abnormally high incidents of rabies
in the previous year. About 171 cases were dealt with against the average of
30-40 per year. We vaccinated 127 952 of the 150 000 dogs in the province. That
is more than 85%.
The department has complied with all disease regulations and statutory
requirements. Foot-and-mouth disease (FMD) have been successfully brought under
control. A threatening outbreak of anthrax was averted and over 470 000
livestock were vaccinated well on time. I wish to thank all our livestock
farmers who co-operated during the vaccination programmes. It is also opportune
to announce that the department has set aside R1 million to do feasibility on
the establishment of a special abattoir within the red line to deal with market
access issues of the farmers. The report will be ready by early August
2007.
It is befitting that we applaud the cooperation by some farmers,
particularly in the citrus industry in ensuring not only the productivity of
their agricultural land, but improved working conditions and economic status of
the farm workers. On 16 February 2007, I launched the Mabete Citrus Project in
Ba-Phalaborwa where 132 farm workers and black business partners bought 43%
shares in a high value citrus enterprise. The project attracted R6,7 million as
land redistribution for Agricultural Development (LRAD) grant.
Together with Seleise Project another farm worker family referred to in my
last budget speech, also in Greater Tzaneen, these unique projects in Mopani
will receive CASP support to the tune of R1,6 million this year. Mabete has
become the ground breaker in testing the principles of the AgriBEE framework
which seeks to open participation of farm workers in the high value
agri-business enterprises.
Cumulatively, restitution has delivered 271 538 hectares of the commercial
agricultural land benefiting 29 123 households. For the 2006/07 year, 112 386
hectare (ha) benefiting 21 808 households were delivered.
The increased delivery of 85% in the past year ushers the high drive towards
the 2008 presidential target for restitution which equally calls for
extraordinary post settlement capacity in order to avoid a reduction of
economic activity derived from these properties. For Limpopo there are only 788
land claims are still outstanding and next year we will be able to announce a
significant reduction in this number.
In order to ensure sustainability of the restitution process and improve
co-ordination, communication and stakeholder participation, the Limpopo
Restitution Forum was established in the second half of the financial year. The
forum, under the facilitation of the Department of Agriculture is comprised of
the Regional Land Claims Commission (RLCC), provincial Land Reform Office (Land
Affairs), organised agriculture (Agri-Limpopo, TAU, and LIMPAFU so far), and
NGOs amongst the key membership. The forum already had its inaugural meeting
and one scheduled meeting since establishment.
LRAD has cumulatively delivered 67 853 hectare benefiting 1 753 farmers. For
the year 2006/07, 14 386 ha were delivered which benefited 349 farmers. The
delivery strategy for PLAS has been drawn and work-shopped with the
stakeholders. This will fast track redistribution of land and regulate the
settlement of farmers to ensure sustainable and optimal utilisation of the
scarce resources.
Since the SLAG de-registration campaign was launched in March 2006, 448
people came forward to register their requests to be de-registered. This year,
the department will focus on re-engineering the projects. Already two projects,
Nguvamuni and Rua Naga (both led by women) have been turned into viable
commercial enterprises by having them incorporated in the massive poultry
development with secured markets. With the de-registration process gaining
momentum, this year will see 13 projects turned into viable commercial
entities.
At the beginning of the 2006/07, the department had committed R16 million
towards the construction of the 12 environmentally controlled Tomcan poultry
houses. Despite the challenges and the fact that construction commenced late in
October 2006, three of the twelve houses have been commissioned (even before
the end of March 2007).
The twelve environmentally controlled poultry houses with a production
capacity of 40 000 broilers (each) per cycle are linked to a secured market â
Bushvalley Chickens. The project has seen the creation of 180 temporary jobs
both for unskilled and semi-skilled workers during construction and 60
permanent jobs benefiting the neighbouring communities.
The importance of human capacity development and commercialisation of the
new entrants (mainly land reform beneficiaries) in agriculture cannot be
over-emphasised in the advent of a liberalised market economy. As part of the
investment done by the province towards the prime movers of agricultural
development in the province, the department has set aside R11 million through
the Comprehensive Agricultural Support Program towards the skills development
targeting emerging farmers and land reform projects. This will not only address
the development of the farmers but also the advisory teams from the department
and 60 unemployed graduates in the province. The programme is aligned with the
Agribusiness Academy and does not only focus on training but moves towards
mentoring of the farmers and graduate trainees. The department realises that
this can only be a reality if more support is derived from the commercial
sector.
The department embarked on improving our farmer selection criteria. It has
become abundantly evident that the failure of most of our farming projects is
as a result of wrong, ill-informed and sometimes misguided political
correctness. Farmer selection for the revitalised irrigation schemes, the
former ARDC farms including the tea estates and the Land reform farmers in
particular has not been as rigorous as it should be. Agriculture is a business
and the department is set to ensure that potential farmers with required
entrepreneurial qualities and self-commitment are targeted.
The other issue of concern for the department is both the entitlement
mentality and wanton disregard and respect for government supported
infrastructure. There is just too high and unacceptable level of theft for
infrastructure installed by the government.
Go balemi le badudi ba Limpopo, ke tšea sebaka se go le kgopela gore le
hlokomele le thuše go swara le go neela maphodisa mahodu a a go utswa dithoto
tša mmušo. Batho ba bare bušetša morago. Re ka se phadišane le bo Brazil, bo
India le bo China ba lefase ge re utswa tšeo diswanetšego go ba peeletso ya
mananeokgoparara a ekonomi. Bana ba rena baka moso baka se re swarele ditirong
tše. Emišang se hle!
Our collaboration with Limpopo University and the Independent Development
Corporation(IDC) on the Nguni Cattle Project, is bearing fruits with the first
22 cattle already procured and will be delivered to the qualifying farmers
soon. The department will also second one livestock scientist to assist in
managing the project for a few years after which a farmers' company will
take-over the commercial activities.
As reported in this house, by March 2006 about 2 810 ha (11 schemes) of the
envisaged 3 900 ha (23 schemes) were equipped with new infield systems. Due to
the new and unfinished bulk infrastructure work and insufficient Kilo-Watts
supply from existing Eskom power stations the irrigation schemes involved could
not become operational and productive. The department has however employed six
engineering service providers who use the Turn-Key Approach to the Resis
programme.
As a result of that effort 280 ha in Makuleke irrigation scheme is now
complete and farmers and their strategic partner have already started to plant
potato crop. We are happy to announce that Simba South Africa has signed supply
agreement with the community that ensures them market at good prices. At
Tšwelopele and Upper Flag Boshielo (Mogalatšane, Krokodilheuwel, Setlaboswana
and Phetwane) some vandalism and theft of equipment has delayed the completion
of projects. The department has implemented a process to rectify the problem
and the projects will be completed by June 2007.
Department of Water Affairs and Forestry (DWAF) have finalised the
rehabilitation of the Upper Flag Boshielo canal system, and few old pipes had
to be replaced. DWAF experienced problems with the construction of the 7
kilometre (km) pipeline to link the Flag Boshielo dam with the irrigation
schemes. More hard rock was found and time-consuming rock blasting was
necessary, thus delaying the project. So far four km has been completed and the
pipeline is expected to be finalised by July 2007.
To mitigate against this delay, the old riverside pumping station at
Mogalatšane has been repaired and electricity connected to provide irrigation
water. The pump station will also serve as emergency facility even after the
completion of the pipeline link.
The existing 300 million rising main line is scheduled to be replaced with a
new pipeline by June 2007, thus facilitating planting of winter crops. Another
dam-to-scheme pipeline is under construction at Metz and is due for completion
by June 2007.
All balancing dams (eight) at TÅ¡welopele and the two schemes of Upper Flag
Boshielo have been reshaped, resealed and fenced off. Lucerne will be planted
after final touches on the bulk infrastructure and electricity supply. We
expect to harvest over 2000 tons of Lucerne from this scheme to support our
fodder bank strategy.
Six new schemes were implemented in 2006. These included cleaning of the
canals serving Dingleydale and New Forest schemes in Bushbuckridge, planning
and installation of bulk and infield systems at Mid Letaba (Homu), Elandskraal,
Tompi Seleka and part of Strydskraal (30 ha) due to the ongoing rehabilitation
of the 35 km feeder Lower canal due for completion by February 2008.
The Tompi Seleka Irrigation technology system is almost complete and farmers
will be in apposition to use the systems for training when Agribusiness Academy
commences with its farmer training courses. Mbahela irrigation scheme will be
complete by August 2007.
Three new projects in Sekhukhune (from boundary re-alignment with Mpumalanga)
are prioritised for implementation in 2007. Scoping, master plan designs and
execution will be implemented by July 2007.
As we reported in 2006, the department is engaged in natural resource
management which includes LandCare facilitation, Soil Conservation and Land-use
Planning. An Integrate Programme, area-wide (Catchment) planning is used to
identify projects in critically affected areas. Six area-wide LandCare projects
(308 501ha) were implemented in 2006. Three new projects (Mphahlele, Leolo, and
Mutale) will be implemented in 2007/08. The LandCare programme is budget for
R7,91 million.
Three other special soil conservation projects (waterways) were implemented
in Sekhukhune through co-funding with the Japanese International Cooperation
Agency (JICA). The projects protect an area of 1093ha of arable land within the
Lepellane Catchment.
E ka ku ringeta ku antswisa xiyimo xa mafambiselo ni matirhisele ya swilo
swa misava na ntumbuluko. Ndzawulo ya Vurimi yi kunguhata ku kuma switirhisiwa
swo fana na titeretere, michini yo cela misava ni switirhisiwa swin'wana e ka
malembe manharhu lama lanzelaka. Tindhawu leti nga ta tekeriwa enhlokweni ku ta
va timasipala le ti nga ekusuhi na Kruger National Park (ku famba na darata
leyi sivelaka swiharhi ku swi nga hlangani na swifuwo) xikanw'e na le
xifundzeni xa Sekhukhune na timasipala leti katsiwaka eka tiphurojete ta
hlayiso wa swa misava, mati na swimilana. Switirhisiwa leswi ntsongo swi ta
pfuneta e ka mintirho ya siku na siku, na kambe swilaveko swa tiphurojete
letikulu swi ta kumeka kun'wana. Switirhisiwa leswi swi nga kona kambe swi nga
ri ku ka xiyimo lexi amukelekaka swi ta xavisiwa hi maendlele ya 'auction' eka
varimi kutani ku landzela xaviso wa mani na mani.
The department has increased its internal engineering capacity, three
engineers and nine engineering technicians have assumed duty by February 2007.
In addition, two lady hydrologists and one male engineer have also been
employed within the department. One hydrologist student is pursuing Master
studies and three Soil Scientists have also concluded their studies and are to
assume duties soon. These are expected to play a major role in natural resource
management. The budget for resource management is R172 million for the current
year.
The ARDC has successfully completed the process of restructuring with over
590 workers being laid off. All workers were paid what is due to them. Only
after the ARDC and the Department were unsuccessful in placing these workers in
other Department, were the workers laid off as at 31 March 2007 at a cost of
R11,5 million. The Limpopo Executive Council has painfully accepted the outcome
and this chapter is regarded as closed. The ARDC will however proceed with its
new Mandate of fostering AgriBEE objectives, providing agricultural planning
and fostering agriculture LED programming. Economic planning professionals will
be appointed to manage this new responsibility. The ARDC operational budget
will be around R4,5 million per year.
The department is investing in further development and vertical integration
of black tea in Limpopo. Over 1 070 ha of prime land is planted with seedlings
and clonal varieties. The tea estates will be managed as an out-grower system
phased in over a few years. Currently about 2 150 workers are employed at the
tea estates. The project will be handed over to the Tshivhase Territorial Trust
by March 2008. Processing has resumed and over 1,8 million kilograms of black
tea is ready for bulk selling. Over R40 million is being budgeted. The
department also appreciates the support and corporate leadership of
MANFerrostaal South Africa (Pty) Ltd in this project. We salute people like you
Dr Nkosi who see value in investing in rural areas.
Macadamia development also represents a unique opportunity for most land
restitution farmers. The department is committed to the macadamia development
and establishment in the province. The nursery development that will be managed
by a large component of Youth will be the first activity in the 2007/08. The
Macadamia Association in Vhembe is being targeted for assistance in land
development to ensure planned development of the commodity. The project's
budget is R3 million for the current year.
The establishment of the Fresh Produce Market is also well on track and this
will ensure market access for the revitalised irrigation schemes. Processing
technology that will cater for 150 tons an hour will be installed at a site to
house the Logistics Cluster Precinct. Other district facilities in Tubatse,
Thohoyandou, Elias Motswaledi and Thulamela municipalities will be facilitated
during the course of the year. R25 million is allocated.
Bio-fuels production has taken South Africa and the world to another level
of research. The world needs cleaner oils for combusting engines and the
population requires and demand clean air surroundings. The department has thus
invested in bio-diesel incubator facility at Tompi Seleka with the aim of
researching the final product and other by-products of the bio-diesel value
chain. Limpopo will witness some of the research findings in this value chain
in the ensuing year. Oil seed producing commodity groups have been lobbied and
sensitised about the project and they will also own a share in the value chain.
The department has budget R3 million for this year on the bio-fuels
project.
The need and realisation of the acute shortage of skills in the province has
propelled the department to find partners in addressing this issue. The Flemish
Government is supporting the department for the next five years to establish
and equip the Agribusiness Academy housed at both Tompi Seleka and
Madzivhandila Farmers' Training centres. The objective is to produce
profit-oriented commercial farming and agribusiness entrepreneurs aimed at
improving rural economies and agribusiness capacity. Key programmes are
agribusiness administration and entrepreneur leadership, mechanisation
management, irrigation technology water use and agro-tourism.
Both young and existing farmers and entrepreneurs will benefit immensely
from this programme. The budget is R11 million for this year.
The viticulture (wine making) industry is also taking shape among Limpopo
farmers. Two projects one each in Sekhukhune and Waterberg on table grape
production development will be started from April 2007. Over 120 ha is
earmarked for development at the end of the project. The department has
budgeted R5 million for this project for the year.
The department has also responded to calls by farmers to re look at our
support for mechanisation. We are aware of the tractor schemes that used to be
there on irrigation schemes for farmers. To day few of those assets are still
in good shape. The department has designed a Mechanisation Revolving Credit
Access Scheme (Merecas) to effectively deal with traction power needs of
farmers.
The key tenants of this facility is that individual and legal business
agribusiness entrepreneurs are assisted to purchase mechanisation package
combinations (65 kilowatts tractor, plough, trailer, disk, planter and a Diesel
tank) and provided with operational costs for first six months. However, each
entity must prove committed support from farmers requiring traction services
and repayment ability. The department will support 50% of the mechanisation
package cost. This facility will be operated with commercial banks and tractor
manufacturers to ensure business and entrepreneurship accountability. The
department has budgeted R20 million for the 2007/08. The facility should be in
operation from 1 September 2007 or earlier.
Honourable Speaker and members of the House, I once again take this
opportunity to thank the Premier and Executive Council members for continuing
to support matters of agriculture, the Portfolio Committee on Agriculture for
the vigilant oversight role they play and the farmers whose challenges allow us
to shape and refine policy.
The department's allocation for the 2007/08 is R1 094 439 000 and will be
distributed according to Departmental programmes as follows:
Summary of payments and estimates per programme: Agriculture
Programme 1: Administration: 258 229 000
Programme 2: Sustainable Resource Management: 178 282 000
Programme 3: Farmer Support and Development: 515 196 000
Programme 4: Veterinary Services: 25 088 000
Programme 5: Technology Research and Development: 62 641 000
Programme 6: Agricultural Economics: 18 554 000
Programme 7: Structured Agricultural Training: 36 449 000
Total payments and estimates: 1 094 439 000
I wish to remind all of us that we did not receive satisfactory rains this
year and our dam levels are very low. Let us use our water resource sparingly
and target our activities and we must not forget that water is not a luxury in
Limpopo and we must use it very wisely all the time.
Agriculture remains a business, a very tricky one and sometimes quite a
tough industry, and thus Honourable Speaker we need tough, innovative and
creative agribusiness entrepreneurs to make a mark and compete with the best in
the world. LDA will support were we can!
The department has come a long way in establishing good practices and may I
take this opportunity to thank all staff for striving to make our efforts
recognisable. Honourable Speaker, it is sad that this budget speech is being
delivered before a centenarian Vho Mukumela Tshivhula who passed on 27 January
2007 (at the age of 92) could be served the justice she longs for.
When ordinary South Africans are receiving services in the form of
sanitation and decent housing, she needs just a grave, so that she can be
rested next to her husband and other members of the family on the traditional
burial site on portion three of the farm Coniston in Waterpoort (Makhado
Municipality).
When on the 2 March 2007 the Tshivhula family lost a case in the Land Claims
Court seeking to bury this centenarian, she was effectively evicted from the
land she worked, lived and died on. Having her buried anywhere else will be
tantamount to forced removals. Her body has since 27th January been lying in a
mortuary and we still have confidence in the judiciary to consider favourably
the appeal by the family to have Vho Mukumela Tshivhula buried on the family's
traditional burial site. In a democracy like ours, this is surely not too much
to ask for.
Honourable Speaker, it is still "Nothing about us without us".
"Lehumo Le TÅ¡wa TÅ¡hemong"
"Xandla famba Xandla vuya"
"Hu duba buse" and "'n Boer moet 'n plan maak" slogans in our daily activities
as we move from "farming to Agricultural Industrial Development"
Thank you!
Summary of payments and estimates per programme: Agriculture
Programme 1
Medium-term estimates R thousand: Administration
2007/08: 258,229
2008/09: 85,541
2009/10: 301,244
Programme 2
Medium-term estimates R thousand: Sustainable Resource Management
2007/08: 178,282
2008/09: 239,967
2009/10: 289,783
Programme 3
Medium-term estimates R thousand: Farmer Support and Development
2007/08: 515,196
2008/09: 533,192
2009/10: 569,270
Programme 4
Medium-term estimates R thousand: Veterinary Services
2007/08: 25,088
2008/09: 26,093
2009/10: 27,528
Programme 5
Medium-term estimates R thousand: Technology Research and Development
2007/08: 62,641
2008/09: 52,850
2009/10: 55,757
Programme 6
Medium-term estimates R thousand: Agricultural Economics
2007/08: 18,554
2008/09: 28,901
2009/10: 30,491
Programme 7
Medium-term estimates R thousand: Structured Agricultural Training
2007/08: 36,449
2008/09: 36,285
2009/10: 38,281
Medium-term estimates R thousand: Total payments and estimates
2007/08: 1,094,439
2008/09: 1,202,829
2009/10: 1,312,354
Summary of provincial payments and estimates per economic classification:
Agriculture
Medium-term estimates R thousand: Current payments
2007/08: 724,261
2008/09: 775,783
2009/10: 814,187
Medium-term estimates R thousand: Compensation of employees
2007/08: 519,150
2008/09: 48,107
2009/10: 572,773
Medium-term estimates R thousand: Goods and services
2007/08: 205,111
2008/09: 227,676
2009/10: 241,414
Medium-term estimates R thousand: Transfers and subsidies
2007/08: 47,266
2008/09: 30,316
2009/10: 31,981
Medium-term estimates R thousand: Provinces and municipalities
2007/08: 50
2008/09: 52
2009/10: 00
Medium-term estimates R thousand: Departmental agencies and accounts
2007/08: 44,070
2008/09: 28,145
2009/10: 29,692
Medium-term estimates R thousand: Public corporations and private
enterprises
2007/08: 140
2008/09: 146
2009/10: 154
Medium-term estimates R thousand: Households
2007/08: 3,006
2008/09: 1,973
2009/10: 2,136
Medium-term estimates R thousand: Payments for capital assets
2007/08: 322,912
2008/09: 396,730
2009/10: 466,186
Medium-term estimates R thousand: Buildings and other fixed structures
2007/08: 166,958
2008/09: 244,457
2009/10: 295,737
Medium-term estimates R thousand: Machinery and equipment
2007/08: 90,533
2008/09: 83,731
2009/10: 95,159
Medium-term estimates R thousand: Software and other intangible assets
2007/08: 2,500
2008/09: 2,601
2009/10: 2,744
Medium-term estimates R thousand: Land and subsoil assets
2007/08: 62,921
2008/09: 65,941
2009/10: 72,547
Medium-term estimates R thousand: Total economic classification
2007/08: 1,094,439
2008/09: 1,202,829
2009/10: 1,312,354
Issued by: Department of Agriculture, Limpopo Provincial Government
22 May 2007
