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WHEN THE SUN RISES WE WORK HARD TO DELIVER WE WORK HARD TO DELIVER DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS PRESENTATION TO PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES 24 APRIL 2018 1 PRESENTATION OUTLINE • Acronyms • Background and Provincial Profile • Highlights on Achievements – Executive Summary • Detailed Report – Budget and Expenditure – Ilima/Letshema – Masibuyele Esibayeni – Fortune 40 • Impact Analysis on Poverty Intervention • Provision of Mechanization Support • Commercialization of Smallholder Farmers • Recruitment of Veterinary Officers • Management of Animal Diseases • Extension Services Staff Complement • Planting Plans for 2018/19 Financial Year • Rehabilitation of Agricultural Land • More Examples of Supported Farmers • Challenges and Mitigation Plans 2 ACRONYMS Acronym Description Acronym Description SA South Africa CASP Comprehensive Agricultural Support Programme MP Mpumalanga EHL Ehlanzeni District GDP Gross domestic product BOHL Bohlabela District CA Conservative Agriculture NKA Nkangala District SA GAP South African Good Agricultural Practices GSD Gert Sibande District CPA Community Property Association MESP Masibuyele Esibayeni Programme GNP Government Nutrition Programme DARDLEA Department of Agriculture, Rural Development, Land and Environmental Affairs COGTA Cooperative Governance and Traditional PAP Provincial Assessment Panel Affairs DEDT Department of Economic Development and CSS Community Compulsory Services Tourism GCC Gulf Cooperation Council FMD Foot and Mouth Diseases NDP National Development Plan PRRS Porcine Reproductive and Respiratory Syndrome SAVAC South African Vulnerability Assessment Committee 3 BACKGROUND AND PROVINCIAL PROFILE 4 EMPLOYMENT IN THE AGRIC SECTOR MPUMALANGA Aggregate employment in South Africa & Mpumalanga, 2016-2017 Sector Q3 2016 Q2 2017 Q3 2017 SA MP SA MP SA MP Formal sector 69.7% 62.5% 69.5% 58.9% 70.3% 58.1% Informal sector 16.7% 21.1% 17.1% 24.2% 16.6% 25.3% Agriculture 5.6% 8.5% 5.2% 7.9% 5.0% 8.3% Private households 8.1% 7.9% 8.1% 9.0% 8.1% 8.3% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: Statistics South Africa – QLFS, 2017 • Mpumalanga's agriculture, private households and the informal sector registered larger shares of total employment in the third quarter of 2017, than was the case nationally. • Agriculture’s share decreased from 8.5% to 8.3% and private households’ share increased to 8.3%. • 99 624 persons employed in Mpumalanga’s agriculture industry, an additional 109 899 citizens were involved in subsistence farming (non-market activities). 5 EMPLOYMENT IN THE AGRIC SECTOR MPUMALANGA Employment by industry in Mpumalanga, 2016-2017 Q3: 2016 Q3: 2017 25% 20% 22,2% 21,1% 19,6% 15% 18,9% 10% 12,3% 11,1% 10,4% 9,8% Percentage contributionPercentage 9,3% 8,5% 8,3% 8,3% 8,1% 5% 7,9% 2,9% 2,8% 5,0% 4,5% 4,7% 4,3% 0% Agriculture Mining Manufacturing Utilities Construction Trade Transport Finance Community Private services households Source: Statistics South Africa – QLFS, 2017 • The agricultural sector contribution of employment in Mpumalanga declined by approximately 1.2% from 8.5% to 8.3% in 2016 and 2017, respectively. 6 MPUMALANGA’S INDUSTRIES CONTRIBUTION TO NATIONAL INDUSTRIES Mpumalanga’s contribution to South Africa’s industries The figure depicts the contribution of each of (constant 2010 prices), 1995-2015 the economic industries in Mpumalanga to the 25% corresponding national industry in 1995 and in 2015 20% - It is estimated that in 2015, the province was a substantial role-player in the national 21,5% 15% mining, utilities (mainly electricity supply) 17,7% and agricultural industries, with 15,3% 10% 14,8% respective shares of 21.5%, 15.3% and 5% 9,2% 9.2%. 8,6% Percentage contributionPercentage 7,9% 7,5% 7,1% 7,1% 6,2% 6,0% 4,7% 4,7% 4,7% 4,1% 5,2% 5,2% 0% - It is noticeable that the contribution by the agriculture, mining, manufacturing and utilities industries increased between 1995 and 2015, whereas the other industries’ contribution to the national figure Industry remained either unchanged or declined. 1995 2015 Sources: Statistics South Africa – GDP, 2017 7 SECTOR CONTRIBUTIONS TO MPUMALANGA’S GDP Contribution to Mpumalanga GDP (constant 2010 prices) by industry, 1995-2015 The figure displays the share of each economic industry in the provincial 35% economy in 1995 and 2015. 30% 25% 33,3% - It is estimated that in 2015, the 20% three largest contributors to the 25,2% 15% provincial economy were mining 10% 16,6% (25.2%), community services 16,3% 14,8% 3,9% 13,5% 13,4% 3,4% 3,2% 2,8% 12,3% 2,5% Percentage contributionPercentage 5% 12,2% (16.3%) and trade (14.8%). 9,2% 6,1% 6,1% 0% 5,1% - The agricultural sector contributed 3.2% in 2015 towards Mpumalanga’s GDP which is an increase of about 14.3% between 1995 2015 1995 and 2015. Source: Statistics South Africa – GDP, 2017 8 Highlights on Achievements 9 EXECUTIVE SUMMARY The report seeks to provide on progress in the implementation of Fetsa Tlala targets that were set for the 2017/18 planting season including budget allocated and its utilization thus far in Mpumalanga Province and the following are key highlights: 1. Successfully increased the economic participation of youth in the agricultural sector through Fortune 40 Incubator Programme. 2. Implement the off-take agreements within Government Nutrition Programme. 3. Improve agro processing value through establishment of Agrihubs in each district to enhance access to markets by farmers 4. Strengthen the involvement of commercial farmers in the development of the agricultural sector in the province. 5. Intensify production along the entire value chain in particular the poultry production that is threatened by the import and other forces. 6. Strengthen and increase partnerships with commercial farmers and international investors . 7. Enhance production capacity in communal land by including and involving full participation by traditional leaders in their own space. 8. Promoted fully fledged value chain in both animal and vegetable production. 9. Promote new farming models methods such vegetable tunnels, water saving technologies such as drip irrigation and conservative agriculture (CA) 10. Intensify the introduction of drought resistant commodities to more farmers to address the issues of drought that affects production. 11. Support livestock farmers to improve their livestock genetic pool . 10 1. Value Chain: Integrated Poultry Value Chain Model Ubuhle Siyazenzela Broilers The Department initiated poultry projects in the four district to develop strategies to give new entrants access to the agricultural value-chains and support from better resourced role players to reach the MTSF target of 6 x 20,000 Poultry projects developed by 2019. • Facilitating the Grower Contract agreements with Goldi , Early Bird , Afgri, Super Grand etc ,assisted the emerging farmers in the entire poultry value chain. • The abattoir’s main building is under construction as part of the Agri-hub in Bushbuckridge Local Municipality. • Create linkages for the farmers to supply to Abattoirs that are Letolo 2 Phase 1 Poultry established in the Agri-hubs. These hubs will supply local markets Farming (Government School Nutrition, wholesalers and hawkers). • The following are some of the projects supported: – 4 x 40,000 environmentally controlled poultry houses in Letolo Poultry Nkangala. Phase 2 is at 95 % – 4 x 25,000 environmentally controlled poultry houses SiyaphambilI - Mkhondo - Phase 1 at early stage of implementation 90%. – 2 x 25 000 conventional poultry house. Sizolwethu Poultry Cooperative – Nkomazi – operational. – 3 x 25 000 environmentally controlled poultry houses Sinamuva Kwezolimo – operational. Sinamuva Kwezolimo is a mixed – 6 x 25 000 conventional poultry house Ubuhle Siyazenzela Broilers - Lekwa Local Municipality - operational. 11 2. Value Chain: Vegetable Model – The Department has developed a database of farmer cooperatives that has started to supply fresh produce of the Government Nutrition Programme as per Cooperative Preferential Procurement Policy for local cooperatives. – To date, 682 individual Farmers (247 Nompumelelo Mushroom Oyster cooperatives), including the 4 Fortune 40 farms, continue to supply to the mushroom Government School Nutrition since June 2017. – The average production capacity of these farms is 212 tons of butternut, 110.5 tons cabbages and 104.5 tons of tomatoes. Kwaggafontein Project – Thembisile Hani 12 3. Value Chain: Fruits Model . Supported 5 fruit production projects (Senalo – Dr Pixley Isaka Ka Seme; Ngisana; Phakamini Holland & Julia King - Msukaligwa; and Mthombeni – Chief Albert Luthuli;) to form part of the pilot fruit (apple) production supplying programme to HighVeld Fruit Market. − Facilitated for these farmers to be Members of the Ngisana Apple Orchard Deciduous Fruit Development Chamber . − Provided the projects with mentors to build skills and facilitate the linkage to markets and financial institutions. − Support included : fencing of apple orchard, erecting hail netting, constructed one reservoir dam, installing irrigation system in the orchard, planted five varieties of apple trees and constructed pump house storage, upgrading of transformers to assist them to comply with SA GAP. − 30 jobs were created. Supported and revitalised production units in Senalo Apple Project Bushbuckridge (Allendale, Zoeknog, Motlomobe), Boschfontein in Nkomazi. Saringwa, Corromandel, and a Fortune 40 farm - Allandale Citrus Farm − Support included land preparations,
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