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20200331 FINAL GTAC Local Municipality Case Study GTM

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20200331 FINAL GTAC Local Municipality Case Study GTM GTAC/CBPEP/ EU project on employment-intensive rural land reform in South Africa: policies, programmes and capacities Municipal case study Greater Tzaneen Local Municipality, Limpopo Brittany Bunce Research associate at the Institute for Poverty, Land and Agrarian Studies (PLAAS), University of the Western Cape 31 March 2020 Abbreviations and Acronyms BEE Black economic empowerment BFAP Bureau for Food and Agriculture Policy CASP Comprehensive Agricultural Support Programme CBO Community based organisation CBPEP Capacity Building Programme for Employment Promotion CPA Communal Property Association DAFF Department of Agriculture Forestry and Fisheries DRDLR Department of Rural Development and Land Reform DWA Department of Water Affairs DWS Department of Water and Sanitation EU European Union FABCO Farmers Business Co-Operative FROGH Friends of Haenertsburg Grasslands FPM Fresh produce market GEAR Growth, Employment and Redistribution GIS Geographic information system GTAC Government Technical Advisory Centre GTM Greater Tzaneen Municipality HSRC Human Sciences Research Council IDP Integrated Development Plan JV Joint venture LED local economic development LRAD Land Reform for Agricultural Development LDARD Limpopo Department of Agriculture and Rural Development LSU large stock units LWUA Letaba Water Users Association NFPM National Fresh Produce Market PLAS Proactive Land Acquisition Strategy PTO Permission to Occupy RECAP Recapitalisation grant SAAGA South African Avocado Growers Association i Contents Abbreviations and Acronyms i List of Tables, Figures and Maps iii Executive Summary 1 1. Introduction 4 1.1 Descriptive overview of Greater Tzaneen Local Municipality (GTM) 4 1.1.1 Overview of Socio-economic conditions in the municipality 4 1.1.2 Agro-ecological conditions: mapping of existing land uses and capability classes 6 1.2 Over-view of the agricultural sector as a whole 10 1.2.1 Settlement patterns and local food demand 12 1.2.2 Available irrigation and groundwater resources and their current utilisation 13 2 Status quo: land reform to date and the farming sector in GTM 15 2.1 Land reform to date 15 2.1.1 Redistribution 15 2.1.2 Restitution 16 2.1.3 Assessment of current institutional arrangements for land reform initiatives 17 2.2 Small-scale black farming sector 18 2.2.1 Small-scale farmers in GTM: Location and access to land and water 18 2.2.2 Production systems and typology of small-scale farmers 22 2.2.3 Markets/Marketing 25 2.2.4 Farmer support 28 2.2.5 Land needs among small-scale farmers 31 2.3 Large-scale commercial farming sector 31 2.3.1 Production systems and character of the large-scale farming sector 31 2.3.2 The role of white commercial farmers and agribusiness firms in land and agrarian reform 33 3 Analysis 35 3.1 Promising commodities, production systems and marketing strategies 35 3.1.1 Labour-Intensity of Different Agricultural Commodities 35 3.1.2 Promising Production Systems and Crops 36 3.1.3 Promising Marketing Strategies 40 3.2 Promising land (types, location, means of access) 41 3.2.1 Beneficiary selection 44 3.2.2 Land values and land availability 44 3.3 Opportunities to improve farmer support 45 3.3.1 Improving Financial Support for Small-Scale Farmers Producing Fruit and Nuts 46 4 Options 47 ii 4.1 Employment-intensive land redistribution in GTM: outcomes for job creation and livelihoods and the potential costs involved 47 4.2 Land Rights 53 4.3 Subdivision 54 5. Conclusions 54 References 53 5 Index 56 List of Tables, Figures and Maps Figure 1. Employment figures for working age population (15-64 years) in Greater Tzaneen Municipality (Source: StatsSA, 2011) .............................................................................................................................................................5 Figure 2. Average Household Incomes in Greater Tzaneen Municipality (StatsSA, 2011). ........................................5 Figure 3. Agricultural households in Greater Tzaneen Municipality and specific agricultural activities ................ 10 Figure 4. Average Household Incomes in Greater Tzaneen Municipality for agricultural households (StatsSA, 2011). ....................................................................................................................................................................... 11 Figure 5. Source of water in GTM (StatsSA, 2011). ................................................................................................. 14 Figure 6. Subtropical Fruit Statistics: Production, value, employment and number of growers (Source: DARD, 2018) ........................................................................................................................................................................ 36 Figure 7. Employment potential matrix .................................................................................................................. 37 Figure 8. Comparison of Growth in Value (%) and Job Creation per Hectare in the Crop Sector (Source: Pienaar et al., 2019). ................................................................................................................................................................. 39 Table 1. Number of agricultural households owning livestock in Greater Tzaneen Municipality .......................... 11 Table 2. Settlement patterns in Greater Tzaneen Municipality .............................................................................. 12 Table 3. SWOT Analysis of land and agrarian reform in Greater Tzaneen Municipality ......................................... 17 Table 4. Location of agriculturally active black households in Greater Tzaneen Municipality ............................... 18 Table 5. Agricultural activities for black households in Greater Tzaneen Municipality (StatsSA, 2017). ................ 22 Table 6. Measures to improve farmer support ....................................................................................................... 45 Table 7. Costs of implementing labour intensive land redistribution ..................................................................... 48 Table 8.Estimate of potential job creation and livelihoods through employment-intensive land redistribution in Greater Tzaneen Municipality ................................................................................................................................. 50 Table 9. Possible jobs created per commodity in Greater Tzaneen Municipality ................................................... 56 Map 1. Land Capability (Soils- Arable Lands), in Greater Tzaneen Municipality ........................................................7 Map 2. 'Disturbed' areas: urban, industrial, croplands & forestry plantations, in Greater Tzaneen Municipality ....8 Map 3. Cultivated Land in Greater Tzaneen Municipality ..........................................................................................8 Map 4. Citrus Production in Limpopo (Source: LDARD, 2018) ...................................................................................9 Map 5. Avocado Production in Limpopo (Source: LDARD, 2018) ...............................................................................9 Map 6. Mango Production in Limpopo (Source: LDARD, 2018) .............................................................................. 10 Map 7. Location of Wetlands, Dams and Rivers in Greater Tzaneen Municipality ................................................. 13 Map 8. Traditional authorities in Greater Tzaneen Municipality ............................................................................ 20 Map 9. Long Term Grazing Capacity Map (Source: DAFF, 2016). ............................................................................ 40 iii Executive Summary The report provides a way forward for implementing a labour-intensive small-scale farming approach to land redistribution in the Greater Tzaneen Local Municipality (GTM) 1. The scenario presented in Table 8 of this report, involves redistributing 50% of all farmland in GTM (71 550 hectares) to 2745 small-scale farmers. This approach has the potential to create 31 612 net on-farm jobs, inclusive of 2745 self-employment opportunities for farmers and 825 family members. As Table 7 outlines, this would entail a cost of ZAR 79 787 per net job2 created. In addition, numerous jobs could be created in the value chain up and downstream of farms. The model proposes redistributing 13 145 hectares of existing subtropical fruit, citrus and nut orchards and developing 13 495 hectares of new orchards. It would involve an investment of ZAR 2.52 billion in establishment costs 3. An alternative model is also presented which could keep investment costs lower by developing fewer hectares of fruit and nuts but would also create less jobs. The region’s reputation as one of the leading farming areas for fruit, nuts and fresh produce (vegetables), has proliferated the presence of wage labour opportunities, contract farming and joint ventures (Boche and Anjuere, 2015). The growing population of Tzaneen and the well-established transport system which connects the municipality to nearby towns, cities and national fresh produce markets (NFPMs), presents opportunities for small-scale farmers. There is a vibrant informal value chain, which provides numerous job multipliers for bakkie traders and hawkers. Opportunities also exist to access formal value chains (e.g. supermarkets and processors) and export markets (especially for subtropical fruit). Rather than seeing one
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