Honourable Chair of the plenary meeting, Dr Brock
Dr Terry Townsend of the International Cotton Advisory Committee
Other Honourable members of the ICAC Secretariat
Delegates from member and non-member countries
Ambassadors
Honourable members of the Executive Council present here today
All the head of departments
Presidents of the agricultural unions, sector partners
Labour, business leaders and captains of industry
Farmers
Officials and members of public service
Members of the media
Members of the organising team
Ladies and gentlemen
All protocol observed
Honourable chair, South Africa is honoured by the confidence bestowed by the International Cotton Advisory Council secretariat and member countries to host the cotton plenary meeting this year in Cape Town. Our gratitude goes to a woman who was passionate about the work of International Cotton Advisory Committee (ICAC), who is known to some of you, Ms Liako Moahloli, always accompanied by Dr Siphiwe Mkhize. These two colleagues ensured that the relationship of the government of South Africa, through the Department of Agriculture, Forestry and Fisheries, grew from strength to strength, hence this gathering here this week.
I would like to take this opportunity to welcome you to this important event and hope that member and non member countries present here will engage constructively around the issues of growing and sustaining the cotton industry for the benefit of current and future generations.
As citizens of the world gathered here today, we are all aware of the economic difficulties experienced by most of the countries we represent. South Africa as your host is also experiencing deepening poverty during this recessionary period and is challenged to create sustainable jobs for its citizens. Local economists maintain that it might be the first time since the 1800s that the agricultural sector is bigger than the mining sector.
It is thus the opportune moment for all stakeholders in agriculture to come up with appropriate plans to take advantage of the current favourable conditions for agriculture. The cotton industry, therefore, is challenged to come up with appropriate interventions at this plenary meeting that will see the growth of the industry in support of both national and international imperatives of poverty alleviation, job creation and sustainability.
The global economic crisis continues to have a devastating effect on economic growth in most countries across the world, including South Africa. According to the latest report by Statistics South Africa released recently, the South African economy is now in a recession for the first time in 17 years. This comes at a time when the agricultural sector has already been battling with high production costs, shrinking profit margins and soaring food prices since 2007, thus exposing the fragility of the national food system and its vulnerability to shocks. As a result a million people have been pushed into conditions of hunger and deprivation; and farmers have had to abandon land and opt out of farming.
Increases in food prices internationally and locally has once again brought the plight of the poor and impoverished firmly on the agenda of governments worldwide. Rising input costs globally and domestically seriously threatens the sustainability of the agricultural sector, and therefore the ability of this sector to supply enough food and other agricultural products at affordable prices.
Honourable guests, ladies and gentlemen
It is indeed fitting that the organising committee chose the theme: ‘The Role of Cotton in Economic Development and Ensuring Food Security during a Period of Global Economic Crisis’ for this plenary. The theme calls to action all participants in the cotton industry to work towards making this industry productive, profitable and competitive, so that it can contribute to economic development and food security in our various countries.
The Department of Agriculture; Forestry and Fisheries in partnership with the cotton industry in South Africa is already in the process of putting building blocks towards achieving this objective through The South African Cotton Industry Strategy which aims to:
* Broaden participation to enable small scale producers to make a meaningful contribution to the national cotton crop and the cotton value chain in South Africa
* Grow farm output to a stable 370 000 lint bales
* Raise productivity and expanding exports
* Accelerate the elimination of unfair competition through promoting regional and international cooperation and through more effective lobbying in international trade forums.
We hope that through hosting the 68th ICAC plenary meeting the South African cotton industry will benefit in the following areas: cotton research, trade, and standardisation. Our experience in South Africa has taught us that the strategic objectives of development and economic growth cannot be pursued independent of each other, these are very inter-dependent.
In this regard, our country enacted a macro policy intervention, which is called the Broad Based Black Economic Empowerment Act number 53 of 2003. This is a policy framework which directs the various elements, through which the increased participation of previously marginalised groups and the elimination of inequalities in the economy will be addressed. The agricultural sector and its stakeholders developed its own unique framework, the Agricultural Broad Based Black Economic Empowerment (AgriBEE) charter.
A number of partnership initiatives between government and industry stakeholders, including the cotton industry, were facilitated to date, to further enable black farmers’ effective participation in the value chain. The various lessons from the implementation of these initiatives, business models and best practices with respect to inclusion and development within the cotton industry, will be shared from a unique South African experience.
It is envisaged that lessons learnt from ICAC member country reports on the social, environmental and economic performance of the world cotton industry when applied to developing economics such as ours will further enhance our processes.
Ladies and gentlemen, you will agree with me that agricultural subsidies by some governments hamper the flow and climate of international trade in agriculture. If this is looked into, the determinant of cotton prices will be based on market factors, rather than by government influences. Thus this conference has to deliberate on these issues and come up with strong statements for the elimination of this behaviour that continues to distort commodity markets around the world and restrict access to exports into foreign markets. Central to this agenda is finding a way to eliminate practices that rob the world's poor access to export opportunities or even domestic markets.
To this end we take cognisance of ICAC’s support for the successful conclusion of the Doha Round of negotiations within the World Trade Organisation (WTO) by encouraging the universal adoption of a common set of trade rules and contract terms that reflect the customs and usage of the international trade in cotton.
The Department of Agriculture; Forestry and Fisheries acknowledges that 2009 has been proclaimed the International Year of Natural Fibres (IYNF) and have also put up posters to promote this initiative. World leaders endorsed the Millennium Development Goals (MDGs) in 2000 and the IYNF has a role to play. Certainly all efforts will thus be channelled towards millennium development goals number 1one (attacking poverty and hunger), number seven (contributing to environmental sustainability), and number eight (promoting the formation of an international partnership).
Honourable guests, ladies and gentlemen
Over the next few days, you will discuss and deliberate on various topics relating to this industry. I would like to encourage all of you to participate robustly in debate and we sincerely hope that through your deliberations we are all able to propose ways to improve the cotton industry and the textile sector at large.
In closing I hope you will enjoy your stay in Cape Town. We are proud of Cape Town as the most popular international tourist destination in South Africa with its favourable weather, abundant and unique flora and fauna, and relatively well developed infrastructure. The city has several well known natural features that attract tourists; most notably the Table Mountain, the Cape Peninsula and Robben Island.
For the views of the Atlantic Ocean and nearby mountains, a drive along the Chapman's Peak to Hout Bay is recommended. Due to the city's unique geography, it is possible to visit several different beaches on the same day, each with a different setting and atmosphere.
And so, while you are here to work hard to try and solve some of the challenges of the cotton industry worldwide, I think that it is appropriate that you take a breather and visit some of the sites I have mentioned.
I wish you well in your deliberations in the next few days and I thank you for your kind attention.
Issued by: Department of Agriculture, Forestry and Fisheries
7 September 2009
Source: Department of Agriculture, Forestry and Fisheries (http://www.daff.gov.za/)
