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GTAC/CBPEP/EU Project on Employment-Intensive Rural Land Reform in South Africa: Policies, Programmes and Capacities

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GTAC/CBPEP/EU Project on Employment-Intensive Rural Land Reform in South Africa: Policies, Programmes and Capacities GTAC/CBPEP/EU project on employment-intensive rural land reform in South Africa: policies, programmes and capacities Commodity study Wool production by small-scale farmers Mike Kenyon, Independent researcher, East London 31 March 2020 . Abbreviations and acronyms CASP Comprehensive Agricultural Support Programme (2004-) DAFF Department of Agriculture, Forestry and Fisheries (2009-) DALA Provincial Department of Agriculture and Land Affairs (1994-2009) DBSA Development Bank of Southern Africa DLA Department of Land Affairs (1994-2009) DRDAR Provincial Department of Rural Development and Agrarian Reform (2009-) DRDLR Department of Rural Development Land Reform (2009-) ECRDA Eastern Cape Rural Development Agency EDA Environmental and Development Agency Trust Fhiser Fort Hare Institute for Social & Economic Research, University of Fort Hare HSRC Human Sciences Research Council LRAD Land Redistribution for Agricultural Development (2001-) NAMC National Agricultural Marketing Council NCOP National Council of Provinces NGO Non Governmental Organisation NPO Non Profit Organisation NWGA National Wool Growers Association PLAS Pro-active Land Acquisition Strategy Ruliv Rural and Urban Livelihoods SDF Spatial Development Framework SLAG Settlement and Land Acquisition Grant SSU Small Stock Unit Surudec Sustainable Rural Development in the Eastern Cape ii Contents Abbreviations and acronyms ................................................................................................................ii Executive Summary ............................................................................................................................. 1 1 Background .................................................................................................................................. 4 1.1 Terms of Reference ..................................................................................................................... 4 2 Sheep facts ................................................................................................................................. 5 2.1 Wool facts .................................................................................................................................... 6 2.2 Wool as an international commodity .......................................................................................... 8 2.3 Wool processing and Supply Chain charts ................................................................................ 11 2.4 Brief history of wool farming in SA ............................................................................................ 12 2.5 Contemporary sheep farming in Trust Land areas ................................................................... 14 2.6 Impact of stock theft and game farming on sheep farming ...................................................... 17 2.7 Recent livestock and wool statistics .......................................................................................... 21 3 Key features of wool production by smallholders & small-scale black commercial farmers ... 33 3.1 Comparative indicators and differentiation .............................................................................. 34 3.2 Employment .............................................................................................................................. 36 3.3 Typologies .................................................................................................................................. 37 4 Support services for wool production (extension, research, marketing, finances) .................. 40 4.1 Public entities within the Eastern Cape Province ...................................................................... 40 4.2 Independent developers and commodity organisations .......................................................... 43 4.3 Mngcunube Development ......................................................................................................... 45 4.4 The National Wool Growers Association (NWGA) .................................................................... 47 4.5 National public grants and services ........................................................................................... 57 4.6 Rhoxeni village helping itself ..................................................................................................... 60 4.7 Evaluation .................................................................................................................................. 61 5 Wool value chains (both formal and informal) ......................................................................... 64 6 Income, employment and social differentiation in small-scale wool production ..................... 65 7 Potential for expanding small-scale wool production through land reform ............................. 69 7.1 Priority One ............................................................................................................................... 71 7.2 Priority Two ............................................................................................................................... 71 8 Implications for land reform policy ........................................................................................... 72 8.1 A brief history of creating farmers in South Africa ................................................................... 72 8.2 Land redistribution for wool production ................................................................................... 75 8.3 Land redistribution and land reform in the Eastern Cape ......................................................... 76 8.4 Urbanisation and implications .................................................................................................. 79 9 Conclusions ................................................................................................................................ 79 iii Figures Figure 1: Municipalities in the Eastern Cape Province ............................................................................. v Figure 2: International wool production by country ............................................................................... 9 Figure 3: Export destinations of South African wool in 2015 ................................................................ 10 Figure 4: Wool processing from fleece to fabric ................................................................................... 11 Figure 5: The wool industry Supply Chain ............................................................................................. 12 Figure 6: Producer count by Province 2018/19..................................................................................... 22 Figure 7: Eastern Cape producers by Magisterial District 2018/19 ...................................................... 22 Figure 8: Transkei producers by Magisterial District 2018/19 .............................................................. 23 Figure 9: Ciskei producers by Magisterial District 2018/19 .................................................................. 23 Figure 10: The Amathole District Municipality and component Local Municipalities .......................... 24 Figure 11: Total (i.e. merino and other) wool production by Province for 2018/19 ............................ 26 Figure 12: Conventional view of merino sheep farming areas ............................................................. 33 Figure 13: Rainfall map showing the boundary line of 500 mm average annual rainfall ..................... 33 Figure 14: Categories of smallholders ................................................................................................... 38 Figure 15: Main reasons for keeping livestock ...................................................................................... 39 Figure 16: Shearing shed performance ................................................................................................. 66 Tables Table 1: Reasons why emerging wool farmers receive low prices for their wool ................................ 16 Table 2: Three village production profiles ............................................................................................. 16 Table 3: Wool production in kg per District Council area in 2018/9 .................................................... 21 Table 4: Statistics SA 2007 data on medium and large livestock in Amathole ..................................... 25 Table 5: Comparative recent production figures .................................................................................. 27 Table 6: Sales analysis by Province – all wool 2018/19 ......................................................................... 29 Table 7: Sales analysis by Province – Merino wool 2018/19 ................................................................ 30 Table 8: Sales analysis by Magisterial District - Merino wool 2018/19 ................................................ 31 Table 9: Comparison of wool production for emerging and commercial wool farmers, 2004 ............. 34 Table 10: Extract from DRDAR Annual Report on animal health .......................................................... 41 Table 11: Herschel wool farmers comparative indicators .................................................................... 43 Table 12: Increasing comparative wool prices obtained in communal areas ....................................... 48 Table 13: Summary of progeny) ...........................................................................................................
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