The honourable Chairperson of the NCOP
Chairperson of the Select Committee: Agriculture, Forestry and Fisheries
Members of the National Council of Provinces, and of the Executive Councils in the provinces
Distinguished guests, ladies and gentlemen
Greetings to you all and thanks for your interest and attendance.
I stand here before you as a servant of the South African citizenry just after our very successful local government elections. This is another step towards the strengthening our democracy, as President Jacob Zuma indicated at the official declaration of the election results at the Independent Electoral Commission’s election centre in Tshwane. In another step on that same road, we have today assembled in this house to give an account to the citizenry of what we have done, and to ask their approval, through you their elected representatives, for what we intend doing in this financial year.
Before I outline these plans let me recognise and salute the youth of this country – the youth that fought for our freedom from apartheid, the youth that continues that struggle under the changed terrain of democracy. It has been said that we do not inherit the earth from our ancestors, we borrow it from our children. As the Minister of Agriculture, Forestry and Fisheries, I say to the youth of today: we will endeavour to protect the environment in every way we can, so that you will have fertile ground to till and to plant.
We will continue to run programmes which will benefit the youth as they take their rightful place on the land, and at sea. And in return, we ask only that you use it wisely, that you reap its benefits, and that you leave it in even better shape for future generations.
Honourable chairperson, this department has been allocated 4.719 billion rand to address the many challenges which this sector faces – challenges which this ANC government inherited from the apartheid government in1994, and which it has been endeavouring to overcome for over a decade and a half. Major allocations within this budget include 890 million rand for agricultural production, 1.2 billion for food security and agricultural reform, 190 million to trade promotion and market access, R770 million for forestry and natural resource management and R324 million for fisheries management.
Performance agreement
The introduction of Presidential Outcomes and the signing of Performance Agreements by Ministers and Premiers have highlighted the need to align our efforts in order to ensure that the agenda of a better life for all is fulfilled.
In line with this new approach, I have signed a Performance Agreement with the President, focused on Outcome 7 (vibrant equitable and sustainable rural communities and food security for all) and Outcome 10 (protect and enhance our environmental assets and natural resources). Each of these Outcomes has a set of related outputs, for which the department has determined annual targets.
At the end of the year we will be able to measure the impact that these outcomes have had on the lives of our people, especially the rural poor.
New Growth Path
Honourable members, as guided by the broader government policy on the New Growth Path (NGP) the agricultural sector has been identified as one of the sectors that has a significant potential to create jobs. The NGP targets job opportunities for 300 000 households in agriculture smallholder schemes, plus a further 145 000 jobs in agro-processing, which will in turn have the potential to upgrade conditions for 660 000 farm workers by 2020. The department has committed to creating 130 000 jobs in the agriculture, forestry and fisheries sectors by 2014.
In addition, the department aims to establish 50 000 commercially-orientated smallholder farmers focusing on homelands, where there is a large concentration of subsistence producers including supporting smallholders on land acquired through land reform in partnership with the Department of Rural Development and Land Reform.
In committing to these targets, I trust that all provinces appreciate their obligations towards achieving them, using the funds made available to them.
Honourable members, I am pleased to record that only 16.5% of our budget goes towards administration – the rest is for delivery. We have a number of major programmes which are contained in our strategic plan, but I would like to highlight a few of these.
Comprehensive Agricultural Support Programme (CASP)
One of these is the Comprehensive Agricultural Support Programme - known as CASP – which seeks to support smallholder farmers - both subsistence and commercial - as well as the beneficiaries of land reform programmes. I can report that over 5 000 jobs were created in the 2010/11 financial year as a result of the support interventions of CASP, including programmes on state land managed by the department.
In pursuit of Outcome 7, we will increase our support to new and existing smallholder farmers, working in close collaboration with the provinces to achieve our targets.
Fifteen thousand smallholder farmers have been targeted for the 2011/12 financial year, and it must be noted honourable members that this is inclusive of support that will be provided to small-scale foresters and fishers.
For this CASP programme a grant of over 1 billion rand has been allocated to the nine provinces, which will be paid out in tranches, depending on progress. By now the provinces will have received the initial 10% of their allocation, which will be followed by a further 20% next month, and the remaining allocations in October and January next year.
The Eastern Cape is to receive 174.9 million rand; Free State 102.9 million, Gauteng 41.1 million and KwaZulu-Natal 164.6 million. Limpopo will receive 154.3 million rand, Mpumalanga 102.9 million, Northern Cape a slice of 72.05 million, North West 133.8 million and the Western Cape will get 82.3 million rand.
In addition, as part of our support to smallholder farmers, a Smallholder Development Plan will be developed this year to strengthen coordination with provinces in regard to the support of 15 000 smallholder farmers. Collaboration with our sister Department of Rural Development and Land Reform in regard to land ownership and land use remains critical in elevating farmers from subsistence to smallholder level and from smallholder to commercial level.
Ilima/Letsema
A second major initiative is that of Illima/Letsema, which is aimed at encouraging self-sufficiency and the eradication of hunger. The President has set an example for all of us by assisting rural women to plant and weed their crops, and I trust that all of us will follow his example.
A budget of R400 million has been earmarked for this and each province will receive a share, as follows: KwaZulu-Natal and Northern Cape 60 million rand each; Eastern Cape, Mpumalanga, North West and Limpopo 40 million rand each, Free State 52 million rand, Gauteng 20 million, and the Western Cape 48 million rand.
Subsistence farmers’ support
Food security at household level has been negatively affected by the general economic meltdown that we have experienced over the past years.
We are pleased to note that according to StatsSA food prices have decreased marginally, with red meat down by 0.3%, fish by 0.9% and fruit at 1.5%. But we also know that these shifts are small and probably not sustainable, and continued support to subsistence farmers is essential.
In order to increase our capacity to assess vulnerability and to target our interventions, our department has initiated a partnership with the Food and Agriculture Organisation (FAO), and together with the Southern African Development Community (SADC), it has set up a National Vulnerability Assessment Committee for South Africa. As we pursue the implementation of viable production interventions, nutrition education will be at the centre of our activities, and this will be conducted in partnership with the Departments of Health and Basic Education.
The implementation of the Zero Hunger Campaign is gaining momentum.
This campaign will focus primarily on increasing production, and it will be underpinned by the implementation of the Food Purchase Programme and the facilitation of contract production. The Zero Hunger Campaign is geared towards assisting smallholder farmers to produce more as well as increase access to markets in order to generate income. At the centre of this hunger eradication strategy will be the creation of self-employment opportunities.
We will also ensure that sustainable production technologies are introduced, and that we strengthen the integration of activities at both household and community levels.
We will continue to distribute seeds and seedlings to more households, but we have realised that distribution alone will not assist in terms of increasing the household income or sustainably impacting on other livelihood factors. In pursuance of attaining these goals, the Livelihood Zoning process which seeks to understand coping systems in our communities, has been initiated in the Western Cape, and we will all learn from the lessons learnt here.
LandCare
Honourable members, the LandCare Programme continues to perform a significant role in reversing soil and land degradation through support provided to community initiatives. This programme contributes significantly to green job creation, poverty eradication, food security and a better life for all.
In the last financial year, projects related to the use of water by the farming sector were funded. This was an intervention to install sub-surface drainage and irrigation systems through the building of dams, drilling of boreholes and the refurbishment of irrigation systems. Some initiatives also involved the installation of irrigation systems for household food security and small-scale farmers on land ranging from 2 to 5 hectares.
During the 2010/11 financial year the programme directly and indirectly benefited 28 161 land users. A total of 66 272 hectares were rehabilitated in all provinces through the construction of soil conservation works, rangeland utilisation and protection works and the eradication of declared weeds and invasive plants. The Junior LandCare Initiative, focusing on enhancing an ethic of natural resources stewardship, reached 22 166 young people, and in total 14 815 green jobs were created through rehabilitation works related to soil, water and veld management.
As part of the LandCare programme for 2011/12, an estimated 15 000 job opportunities will be created through the rehabilitation and land utilisation activities under the LandCare programme.
An amount of 57.7 million rand has been earmarked for the LandCare programme in this financial year, and all provinces will receive a share of this.
Colleges of Agriculture
The department is in the process of transforming the Colleges of Agriculture into national Agricultural Training Institutes (ATIs) and has completed a comprehensive audit of these institutions. The audit conducted looked comprehensively at the state of infrastructure at these institutions, the academic and skills training programmes offered, their accreditation status, the governance structures in place and the financial and logistical systems in place. The criteria used in the audit to assess these areas were informed by the approved norms and standards for ATIs.
For the 2011/12 financial year, R50 million has been made available to the 12 Colleges of Agriculture, which will be utilised to address the gaps identified through the audit. This financial year more focus will be on infrastructure improvement including revitalisation of computer laboratories at these institutions.
The department has received R20 million funding through a partnership with the Netherlands Institute for Capacity Building at Higher Education Institutions (NICHE).
This project will strengthen the capacity of these colleges as centres of excellence, especially in the provision of training for smallholder producers in the country. We have also enlisted the technical assistance of the Federal Republic of Germany in the development of a national strategy on relevant vocational training to be incorporated as part of the curricula of these colleges.
In this financial year we will accelerate work towards the promulgation of the Agricultural Training Institute Bill, which will prescribe a national model of governance for these colleges.
Extension and advisory services
Honourable members we have, over the past three years, implemented an extension and advisory service revitalisation programme to the value of 555,5 million rand. In order to improve the ratio of extension officers-to-farmers, 691 new extension and advisory officers were recruited. By the end of this financial year, more than 1000 extension and advisory officers shall have been recruited.
To ensure that these officers are visible on the ground and are accountable, a farmer’s Green Book has been instituted as a tool to be used by the farmer to record the visits by an extension officer. To date the Eastern Cape, Free State, Limpopo, Mpumalanga and the Western Cape have successfully implemented the farmers’ Green Book, and a study on the benefits of the tool revealed that interaction levels between a farmer and extension officers improved as well as planning on the part of the farmer.
Over the past three years, extension officers have been provided with information and communication technology equipment including cellular telephones, 3G cards, laptops, cameras and a GPS. This is in recognition of the fact that extension officers are supposed to be reservoirs of appropriate information needed by the farmer.
Furthermore, in order to ensure access to appropriate information the department has facilitated the adoption of the powerful state of the art “Extension suite on-line” in all nine provinces. This computerised system enables an extension officer a link to access relevant information on the spot as and when it is needed by the farmer.
In terms of training, a total of 1 149 extension officers are registered for qualifications upgrade in line with the approved norms and standards, and a total of 5 110 extension officers were trained in technical, generic and ICT short skills training programmes.
As we step into the 2011/12 financial year, focus will be on the further development of appropriate policies for extension and advisory services. These include a national policy on extension and advisory services, a Performance Monitoring Framework, and the establishment of a Professional Body.
Climate change and disaster management
Honourable chairperson, we know that this country will host COP17 later this year in Durban in KwaZulu-Natal.
Agriculture, Forestry and Fisheries are central to this agenda, since these sectors are simultaneously a major producer of greenhouse gases, as well as being seriously impacted upon by climate change. We are therefore focusing on bringing to the table of COP 17 proposals for adaptation strategies, to reduce the carbon footprint of these industries, as well as mitigation strategies to protect our food producers from the worst effects of climate change.
Mechanisation
While food security and food availability is not yet a problem in South Africa, affordability is a challenge, especially to the unemployed, and government is obliged to intervene to ensure these communities can better support themselves.
To this end, we have embarked on a mechanisation strategy. The programme aims at stimulating production by smallholders, with a special focus on rural areas and the former homelands. To date, 170 tractors with implements were transferred to Mpumalanga and KwaZulu-Natal, providing critical support to small-scale farmers that have access to land but without the means to utilise it productively.
Over 500 permanent jobs have been created through this initiative, together with several indirect jobs along the value chain. In this financial year we will roll out the project to the remaining seven provinces and in doing so we will be building on the lessons learned from Mpumalanga and KwaZulu-Natal.
Commercial farming sector
Honourable chair, in relation to agriculture, let me address the commercial farmers of this country. We have attempted to create a climate in which commercial farming enterprises continue to thrive. We need this sector to make their contribution to the economy, and to play their part in job creation and labour absorption. Some farmers have been quite outspoken about the situation, but I am pleased to note that the Agriculture Business Chamber, an independent body, reported last week that its agri-business confidence index has reached its highest level in three years.
It is currently 13% up from the previous quarter, and 43% higher than the same quarter last year, so we must be getting something right in the eyes of most commercial producers. I will continue to engage all legitimate farmers organisations to ensure that we work together in confronting the remaining challenges for the sector, and give notice that I intend setting up a permanent Consultative Forum in order to facilitate this partnership.
Forestry
Honourable chairperson, my portfolio is not just about farmers and farming. We also have responsibility for two other crucial sectors of the economy – forestry and fisheries.
May I remind you that the United Nations General Assembly has declared the year 2011 to be the international year of forests. The multiple benefits of trees are experienced by all of daily.
Forestry currently creates thousands of jobs in rural areas, including the contribution of the private sector. I am confident that many more jobs can be created in re-afforestation, saw-milling, charcoal production, timber, coppicing, working on fire and the working for forestry programmes.
Provinces of Limpopo, Mpumalanga, Eastern Cape, Western Cape and KwaZulu-Natal benefit the most from the contribution of the forestry sector.
In this financial year we have allocated 451.6 million rand to the Forestry Branch, which will be used to pursue the desired outcomes. I am also proud to announce that the United Nations has afforded South Africa the opportunity to host the World Forestry Congress in 2015.
North West hosted a successful International Wildland Fire Conference in May this year. The conference added social and economic benefits to the local economy.
Fisheries management
This sector has been a challenging and complex one, with huge financial interests involved, and the inevitable crime and corruption which accompanies these interests. We have dramatically increased our capacity to combat illegal, unregulated and unreported fishing, and the department has launched an anti-poaching project in this province (Western Cape), funded through the Working for Fisheries Programme.
This has enabled us to deploy 60 military veterans in the Overberg region to serve as the “eyes and ears” of the government.
Since re-opening the abalone fishery in July 2010, I am pleased to report that with the support of communities and law enforcement agencies 25 boats and 20 vehicles used in abalone poaching were seized and 240 arrests were made. I have also been advised that after many years of decline through poaching, our West Coast Rock Lobster stocks are showing signs of recovery.
With the help of the security cluster of departments, we are indeed making inroads against the international syndicates who seek to plunder our precious marine resources.
The fishing sector is made up of large-scale operators as well as small-scale, artisanal or even recreational fishermen and women.
In our efforts to both regulate and support the latter, the department has finalised the Small-Scale Fisheries Policy.
Through this we will support investment in community entities to take joint responsibility for sustainably managing the fisheries resources and to address the depletion of critical fisheries stocks.
Aquaculture
Honourable chairperson, fish farming (properly called aquaculture) is a growing source of food in many countries, and we must be a part of this global trend. We have therefore developed the national Aquaculture Development Programme and Strategic Framework which is aimed at creating jobs and wealth, as well as increasing productivity and sustainability in the Fisheries and Aquaculture sectors.
The department has initiated an Aquaculture and Rural Livelihoods (ARL) programme which is formulated to assist in developing provincial aquaculture strategic plans, revitalising state hatcheries, and the training of aquaculture extension officers. We have initiated a regional capacity building programme for state veterinarians at Rhodes University on Aquatic Animal Diseases Diagnostics and Management, with the help of the International Animal Health Organisation.
But we have not stopped at the level of policy. We are an action- oriented department! We recently launched a state- owned abalone hatchery costing R15 million, through which 200 jobs will be created. In collaboration with the Chinese government we are finalising the Gariep Dam Aquaculture Demonstration Centre (ADC) in the Free State.
A financial commitment of R6 million has been made for the construction phase of the project, and another R40 million has been committed by the Chinese government.
The development of the Qolora Aquaculture Development Zone (ADZ) in the Eastern Cape has been proposed to facilitate growth of the sub-sector. This area is situated approximately 60km from East London, and the department has this year committed R20 million for this project.
Also in the Eastern Cape, the area of Hamburg has been identified as a specific location where intervention is required. The department has invested R10 million towards the revitalisation of an oyster farm in the area and the establishment of a Kob fish-farming project, which is expected to produce up to ten tons of fish a year.
The local community will benefit through transfer of technology, skills development and the creation of approximately 60 direct jobs.
The department has submitted a proposal to the Western Cape Provincial Department of Human Settlements to facilitate the development of the Silwerstroom Strand Aquaculture Development Zone. Consultation with the custodian of the land has taken place and a Letter of Consent has been obtained. The department is now commissioning an Environmental Impact Assessment as a final stage before implementation.
I hope that in the brief time available I have given honourable members a sense of what has been done, and what is to be done.
Our intentions are elaborated in the Operational Plan of the department, and I invite anyone with an interest in the agriculture, forestry or fisheries sectors to consider this. Our department does not farm, fish or grow trees; our task is to assist those who do so, to ensure they do so in a supportive environment, and to use these sectors to pursue the overall priorities of government, especially poverty alleviation and job creation. I therefore invite the honourable members to approve the policy and budget for the coming year.
Honourable chairperson, in conclusion, let me indicate that I have asked my Deputy, the Honourable Pieter Mulder, to take responsibility for overseeing the work of our many statutory bodies and agencies in the sector, and I thank him for his support in this regard.
I would also like to thank the members of the Select Committee, other Members of Parliament, MECs of Agriculture, my DG Langa Zita, my staff in the department and the ministry as well as the provincial heads of department, for their ongoing advice and support.
Ke a leboga, baie dankie, enkosi kakhulu, thank you.
