ALIGNMENT BETWEEN AGRIPARKS AND DAFF PROGRAMS LAND AND MINERALS SELECT COMMITTEE

1. ALIGNMENT BETWEEN AGRIPARKS AND DAFF PROGRAMS LAND AND MINERALS SELECT COMMITTEE 28 JULY 2015

2. Layout BACKGROUND BACKGROUND ON AGRI-PARKS FOCUS Background ON FETSA TLALA FETSA TLALA: INTEGRATED FOOD PRODUCTION INITIATIVE Progress towards the attainment of 1 million hectares OBJECTIVES OF FETSA TLALA VS THOSE OF AGRI-PARKS FETSA TLALA FOCUS AREAS AND AGRI-PARKS FOCUS COMMON AREAS OF BENEFICIATION DAFF’S ACTIVITIES AND LINKAGE TO THE AGRI-PARKS FETSA TLALA SUPPORT AND LINKAGE TO AGRI-PARKS – SILOS FROM DAFF LINKAGE - THREE DRDLR BASIC UNITS OF THE AGRI-PARKS AGRI-PARKS VS CASP AND ILIMA/LETSEMA PROJECTS SITES MAPS: LINKAGE OF AGRI-PARKS AND CASP ILIMA PROJECTS CONCLUSION

3. BACKGROUND • In his State of the Nation Address during 2015, His Excellency, The President of the Republic of South Africa announced: “Among key interventions this year, we will promote the establishment of Agri-Parks …… in each of the 27 poorest district municipalities to transform rural economies. An initial funding of R2 billion has been made available for the Agri-Parks initiative

4. Background ON AGRI-PARKS The Department of Rural Development and Land Reform (DRDLR) in partnership with the Department of Agriculture, Forestry and Fisheries (DAFF); has put plans in place for the establishment of the Agri-Parks in the identified district municipalities An Agripark has been defined as “A networked innovation system of agro-production, processing, logistics, marketing and training and extension located in district municipalities DAFF is responsible for the priority on Revitalisation of the Agriculture and Agro-processing value chain Agri-Parks will make a meaningful contribution

5. Background ON FETSA TLALA The President launched Fetsa Tlala Initiative in the Northern Cape during 2013 The Initiative was approved by Cabinet in 2013, together with National Policy on Food and Nutrition Security DAFF’s political heads have for their tenure in office prioritized food security, contribution to the Gross Domestic Product and job creation Through Fetsa Tlala Framework Government intends to support subsistence and smallholder farmers to put one million hectares under production by 2018/19 – Implementation through the 5 pillars supply food feed and fuel grains

6. FETSA TLALA: INTEGRATED FOOD PRODUCTION INITIATIVE • 14.2 million individuals are vulnerable to food insecurity • Urbanisation and declining agrarian activities have transformed the RSA economy into a wage economy. • Most households = net consumers of purchased food, rather than producers thereof. • Access to food = function of household cash income and thus cash deficit households are more likely to experience inadequate access to food PROGRAMME PILLARS 6

7. OBJECTIVES OF FETSA TLALA VS THOSE OF AGRI-PARKS

8. FOCUS AREAS: FETSA TLALA AND AGRI-PARKS

9. COMMON AREAS OF BENEFICIATION Improved production efficiencies for producers – production levels enhanced with technologies used at various levels of the value chain taking into consideration the land use capabilities and suitability Promote food security – local procurement and resultant cost reduction Local economic growth and sustenance of the locals – job creation at local level Improved local institutional partnerships – public and private locals jointly supporting local development Preservation of natural resources – community mobilisation will heighten environmental awareness and skills on preservation of natural resources.

10. Progress towards the attainment of 1 million hectares

11. FETSA TLALA TARGETS FOR 2015/16DISTRIBUTION OF HECTARES PER COMMODITY

12. OTHER DAFF’S ACTIVITIES AND LINKAGE TO THE AGRI-PARKS FETSA TLALA Integrated Food Production Initiative - increase production especially in rural areas to address household food security Approved Agriculture Policy Action Plan (APAP) – determines the policy requirements and practical interventions to develop the rural spaces and the sector, within the context of ‘employment-driven and equitable economic growth Medium Term Strategic Framework (MTSF) – emphasis on improved and sustainable agrarian reform and food security DAFF study on the Integrated Government Procurement Model - an illustration of how the process within the three units as described by DRDLR can be realised DAFF’s partnership with the World Food Programme (WFP) - rigorous engagement with the smallholder sector and partners

13. FETSA TLALA SUPPORT AND LINKAGE TO AGRI-PARKS – SILOS FROM DAFF During the 2012/2013, many subsistence and smallholder producers who planted between 1.5 and 2 hectares and harvested between 3 and 5 tons of maize experience a critical storage problem (EC). A storage facilities idea was conceived by DAFF. This intervention is therefore a pilot tested in 3 provinces, i.e. Limpopo, Kwazulu Natal and Eastern Cape. A total of 240 tanks will be installed, distributed as follows: KwaZulu Natal 120 tanks Limpopo 60 tanks Eastern Cape 60 tanks Coordinates on these sites will be overlaid on the map on slide 19

16. SILOS SPECIFICATIONS Has life span of at least 20 years (8 year guarantee), after which the tank may be painted on the outside The lid on top is water and air tight. Pests and insects kept away. The tank is UV resistant – maize not affected by sun’s rays The opening is stainless steel, does not rust Bucket to facilitate loading is pulley operated Intention to expand distribution of 10tons silos for smallholder support to: NW; FS and MP Conduct a study on the usage of the current silos – report to inform current and future expansion

17. LINKAGE - THREE DRDLR BASIC UNITS OF THE AGRI-PARKS The DRDLR has identified three basic units that will comprise the Agri-parks: One of the units is the Farmer Production Support Unit (FPSU). The FPSU is a rural outreach unit connected with the Agri-hub and does primary collection, some storage, some processing for local markets and extension services. This is the unit that will contain some of the anchor support services as stated in the introductory section 1 above and training and skills development would reside within this unit – DAFF’s role – existing provincial structures The second Agri-parks unit is the Agri-Hub (AH) which serves as a production, equipment hire, processing, packaging and logistics – current mechanisation capacity, existing infrastructure The third unit is the Rural Urban Market Centre (RUMC) which will ensure contracting with either local, regional, national and international markets. The RUMC will serve as a holding facility whereby produce will be released to markets based on seasonal trends -

18. IDENTIFIED AGRI-PARKS SITES

19. IDENTIFIED AGRI-PARKS SITES

21. PROVINCIAL ALLOCATION – 2016/17

24. CONCLUSION Fetsa Tlala targets 128 488 hectares during 2015/16 Markets for the produce to be linked with Agri-parks CASP projects have been overlaid on the map with Agri-parks sites Delivered silos are being overlaid on the map with Agri-parks and CASP projects Further distribution of silos to NW, FS and MP to target Agri-parks sites Future development is necessary around the delivered silos i.e. utilization or uptake Agri-parks sites identified in all provinces – 44 districts

25. Thank you