Director-General 24 May 2011

1. Department of Agriculture, Forestry and Fisheries Select committee briefing on:Strategic Plan and Budget Vote2011/12 – 2014/15 Director-General 24 May 2011

2. Presentation Outline Overview Acronyms Performance of the sector & resources allocation Programme 3: Food Security and Agrarian Reform Programme 5: Forestry and Resources Management Programme 6: Fisheries Management Budget summary Conclusion

3. Acronyms ATI Agricultural Training Institute CCS Compulsory Community Service PBR Act Plant Breeders’ Rights Act WCRL West Coast Rock Lobster IFSS Integrated Food Security Strategy KIM Knowlegde and Information Management PMDS Performance Management and Development System ICT Information and Communication Technology IPAP Industrial Policy Action Plan FPE Fish Processing Establishment FTE Full Time Equivalent 3

4. Overview • I am pleased to brief the Select Committee on the Strategic Plan for the Department of Agriculture, Forestry and Fisheries 2011/12 to 2014/15. • Section 27(4) of Public Finance Management Act requires that the accounting officer of a department must submit measurable objectives within its department’s programmes to the National Assembly • The Strategic Plan complies with the guidelines provided by National Treasury and the Department of Public Service and Administration (DPSA). • As required also by PFMA and Treasury Regulations, we will present a detailed plan for year one of the multi-year period • The presentation will focus on deliverables for the MTEF cycle for 3 budgetary programmes for 2011/12 to 2013/14, as allocated by National Treasury • However the presentation will focus on Food Security and Agrarian Reform, Forestry and Fisheries as per the request from the Select Committee 4

5. Sector performance Agriculture Production Producer prices of agricultural products Gross value of agricultural production Production costs Forestry Fisheries sector 5

6. Agricultural production Estimated volume of agricultural production in 2009/10 was 4,8% higher than in 2008/09 Volume of field-crop production reflected a 3,1% increase as a result of an improvement in the production of summer grains Maize production increased with 1,4 million tons or 10,8% against the previous season, followed by sugar cane with 468 000 tons or 2,5% and Lucerne hay with 374 000 tons or 33,9% Horticultural production decreased by 1,6%, mainly because of a drop in the production of citrus and subtropical fruit Production of oranges decreased by 5,5% and that of potatoes by 3,6% Animal production increased by 8,8% as a result of increases of 41,1% in fresh milk production and 5,6% in stock slaughtered However, pastoral products (wool, mohair, karakul pelts and ostrich feathers) showed a decrease in production of 3,1% 6

7. Volume index of agricultural production 7

8. Producer prices of agricultural products Producer prices of agricultural products decreased on average by 2,2% from 2008/09 to 2009/10. The average price of field crops decreased by 14,4% The prices of winter grain dropped by 26,4%, Summer grain prices dropped by 23,1%, The prices of cotton dropped by 17,8%, While oilseeds and dry beans dropped by 7,0%, Producer prices of horticultural products rose by 7,0% from 2008/09 Prices of animal products rose by 1,9%. 8

9. Producer prices of agricultural products 9

10. Production costs Expenditure on intermediate goods and services during 2009/10 is estimated at R71 955 million, a rise of 6,4% from R67 647 million in 2008/09 Expenditure on farm feeds accounted for 22,9% of the total expenditure, followed by 16, 1% for fuel, 12% for farm services and 10% for maintenance and repairs of machinery 10

11. Production costs 11

12. Forestry sector The area under forestry is about 1,28 million ha or approximately 1,0 % of the total RSA land area of 122,3 million ha. Although the area under plantations has decreased over the past few years from1 518 138 ha in 1997 to about 1 257 341 ha in 2008 The volume of production has increased from 18 641 228 m³ to 20 100 000 m³ during the same period. The forestry sector and forest products contributes about 1,3 % to GDP In terms of regional GDP, forestry contributes: • KwaZulu-Natal 4,7 %, • Mpumalanga 5,5 % • Eastern Cape 0,7 % • Limpopo about 0,7 % • The export of forest products has increased from R 9,5 billion in 2001 to R14,8 billion in 2008 • Imports totalled R 11,3 billion in 2008 12

13. Fisheries sector 13

14. Fisheries sector cont… 14

15. Contribution to GDP • The sector’s relative contribution to GDP has been declining over time – an indication of an economy increasingly more dependent on secondary and tertiary sectors (economic modernisation) • Agriculture component is largest contributor and fishing is the smallest

16. Contribution to GDP Cont... • The sector’s contribution over the past year has been hovering between just under 2% and just over 3%

17. Export Market Growth

18. Challenges in the Sector The unregulated market environment, which exposes the sector to fluctuations in world prices The decreasing share of field crops in agricultural production and South Africa’s move from being a net exporter of foods to a net importer The growing dominance of retail chains and an increasing farmer to retail price differential High input costs for, among others, fertiliser, fuel and feedstock Poorly skilled subsistence and emerging farmers, who only achieve low production volumes and productivity levels A lack of agricultural spatial planning and poor infrastructure, which makes it difficult for farmers to liaise with buyers, access markets and boost sales Poor information and knowledge management for small holder farmers, which prevents them from correctly addressing production challenges and Agricultural R&D agenda and practical implementation has little impact on the growth and development of the sector

19. Challenges in the Sector: Commercial There has been a significant increase in the concentration of the commercial sector, as a result of smaller and less efficient business, unable to take advantage of increasing economies of scale, being forced out of the sector Profitability has increased, but at slower rates, and is attributed to a concentrated few that’s has been able to survive global market and financial challenges Transformation in the commercial sector in all three sectors (Agriculture, Forestry and Fisheries) remains a challenge • Differences in interpretation, and implementation. • Transformation is still mainly translated as the number of ‘black’ individuals in a company. • Challenge with transformation not having significant socioeconomic impact. Plans per programmes 19

20. Challenges in the Sector: Commercial Cont… An increase in production in agriculture, has mainly been horticultural crops, with a significant decrease in field crops (source of staple food), and translates into increasing concerns around National Food Security (Household Food Security) Increasing food prices, and anti-competitive behaviour too impacts on national food security Limited innovation systems, the slow rate of opening up new markets and value adding opportunities however there are challenges on certain commodities Many of the challenges stem from a lack of compliance rather than lack of appropriate regulations i.e. poor enforcement 20

21. Challenges in the Sector: Smallholder Inadequate support services / Extension services essential to grow and develop the smallholder and subsistent sector Technical support services currently inadequate, there is a need for an upscale and expansion of support offered Uncoordinated spatial plans to guide implementation of support programmes, access their economic impact and ensure easy monitoring and evaluation

22. Challenges in the Sector: Smallholder Cont… Inadequate and unstructured intervention in regard to provision of on-farm infrastructure such as water sources (dams, windmills, irrigation schemes) essential for sustainable production Implementation of the mechanisation support programme very weak due to the lack of a targeted programme Lack of support for the established small-holders to establish commodity groups No guaranteed market for products produced by small holders Poor infrastructure to ensure equitable access to development finance through our grant system and loans programmes Uncoordinated or lack of targeted training for smallholders

23. Challenges in the Sector: Smallholders Cont… Aquaculture – Limited investments made in terms of hatcheries, research and disease management to promote aquaculture Non-existent support (access to equipment, finance, extension and training) for the established small-holders in the fishery industry and small growers in forestry Inadequate access to agro-processing industries for value addition Insufficient access to development finance through our grant system and loans programmes i.e fisheries and forestry

24. Policy and programme interventions Government adoption of the 12 Key Outcomes by the January 2010 Cabinet Lekgotla Signing of performance agreements and Delivery Agreements with DAFF directly contributes to following 3 Outcomes with clear targets: Outcome (4): Decent employment through inclusive economic growth Outcome (7): Vibrant, equitable, sustainable rural communities contributing towards food security for all Outcome (10): Protect and enhance our environmental assets and natural resources IPAP 2 New Growth Path Draft Integrated Growth and Development Path for the Sector Strategic Plan for smallholder farmers

25. Programme interventions: development targets Increase the number of smallholder farmers from 200 000 to 250 000 by 2014/15 As a result of the continued success of commercial farming, the number of employees on commercial farms should rise from 780 000 to 800 000 by 2014/15 Aim to place 300000 households in smallholder schemes by 2014/15 (goat, sheep, wheat, aquaculture, forestry, etc.) 145 000 jobs in agro-processing by 2020 5520 jobs Community Works Programme Plan by 2014/15 Rehabilitation of 3.2 million ha of agriculture land by 2014/15 Recovery of targeted fish stocks (abalone, hake and West Coast Rock Lobster) by 10% by 2014/15

26. PROGRAMME’S PLANS OVER THE MTSF PERIOD 2011/12 TO 2014/15

27. Alignment of MTSF Priorities, Key Outcomes and Strategic Goals

28. Programme 3: Food Security & Agrarian Reform

29. Programme 3: Food Security & Agrarian Reform Cont…

30. Programme Outputs 2011/12 • National food security policy approved by Q4 • Zero Hunger Strategy approved • 15 000 New smallholder producers supported • Mechanisation support policy approved • 03 Norms and standards for supporting the subsistence and smallholder producers developed and monitored • 15 000 producers trained on targeted programmes • 10 Targeted training programmes for producers • ATI Green Paper approved • Norms and standards on agricultural training institutes approved • 1000 New producers trained through GADI’s Farmer Training Programme • 180 Students trained through GADI’s Higher Education (HE) Programme • 14 Training programmes implementing audit report findings • 13 villages established • Report on compliance to workers summit resolutions finalised • 1600 Extension officers trained on extension suite on line • 800 extension officers upgraded qualifications • 03 policies on: national extension performance monitoring; establishment of extension professional body; and national extension drafted

31. Resource allocation 31

32. Programme 5: Forestry & Natural Resources Management 32

33. Programme 5: Forestry & Natural Resources Management Cont… 33

34. Programme Outputs 2011/12 • 100 afforestation licenses issued • 10 000 ha afforested • 300 jobs through wattle jungle conversion and rehabilitation created • 10 000 indigenous and fruit trees planted through Greening Strategy implementation • 05 livelihood interventions implemented • 2500 new small growers supported • 800 ha of indigenous forests and woodlands rehabilitated • 250 ha of irrigation schemes revitalised • Copying strategy for flood disasters approved • Progress report on the functioning of consultative structures (NARMCO and NDTT) approved • Progress report on implementation of Western Cape flood disaster relief scheme approved • Climate change adaptation and mitigation plan approved • 800 000 ha of degraded land rehabilitated • 06 wetlands rehabilitated • Land capability and agricultural land zoning for LP and NW provinces mapped • Policy on protection of agricultural land approved • 1300 FTE job opportunities created

35. Resource allocation 35

36. Programme 6: Fisheries Management 36

37. Programme 6: Fisheries Management Cont… 37

38. Programme Outputs 2011/12 • 05 new fish farms established • 05 fish farms revitalised • Aquaculture Development Zone (ADZ) established • Status report on fisheries transformation published • 02 fish processing facilities established • 03 fishing harbours proclaimed • 10 Working For Fisheries Programme (WFFP) projects implemented • Research report on scientific recommendations on catch limits for 22 fishery sectors (sardine and • anchovy (updated), seaweeds; abalone, linefish, netfish, oysters, demersal sharks, South Coast • rock lobster, West Coast rock lobster, white mussel and hake, horse mackerel, tuna pole, • Patagonian toothfish, sardine and anchovy (initial), prawns, shark longline, Agulhas sole, squid, • tuna and swordfish longline) • 2 Feasibility reports on two potential new fisheries approved • Ecological risk assessment report approved

39. Programme Outputs 2011/12 Cont… • Framework for Aquaculture Research Management (FARM) approved • 10 research projects implemented through MoUs with universities • 1 100 vessel landings inspected in 5 key fisheries • 2 joint partnerships with law enforcement and conservation agencies established/formalised • Strategy for hake, West Coast rock lobster and linefish developed and implemented • Rights holders investigated in 5 key fisheries sectors, namely hake, abalone, rock lobster, squid and linefish • 40 cases and tip-offs investigated according to service standards • 20 joint partnerships with law enforcement and conservation agencies maintained and strengthened • Sea-based inspection of vessels in 5 priority fisheries, i.e. hake, abalone, squid, linefish and rock lobster, and other random sea inspection of vessels in other sectors • Special operations targeting hotspot areas, and vessel deployment plans that are focusing in the hake fishing grounds and pre-identified abalone poaching hotspots enforced • Anchovy Strategy approved • Improved stocks through management recommendations towards targets set for the recovery of hake 39

40. Programme Outputs Cont… • Guidelines for the FPE Sector approved by Q4 • National Plan of Action (NPOA) for Sharks finalised by Q3 • Review of hake ERA by Q2-Q4 • Fisheries Management Plan (FMP) for large pelagic sector finalised by Q3 • Functional working groups and active participation in related forums by Q1-Q3 • Rights allocation policies in affected sectors (Linefish, squid, oyster, white mussel, KZN prawn trawl) reviewed and revised by Q4 • Established framework for recreational business processes and permitting by Q4 • Guidelines for the FPE Sector developed and approved by Q4 • 2 ERA reports through sector permit conditions reviewed and implemented by Q2-Q4 • Draft FMP for linefish fishing sector approved by Q4 • 2 reports on rights holders performance and fishing sectors approved by Q1&Q2 • Hake handline and tuna pole policy reviews documents (2) finalised by Q4 • Framework for licensing charter boat operators approved by Q4 • Small-scale fisheries policy and implementation plan approved by Q4 • Database for small-scale fishers signed-off by Q4 40

41. Resource allocation 41

42. Budget summary 42

43. Conclusion The strategy will be cascaded down to operations for implementation Operational plans will be developed from strategic outputs, broken down into clear milestones with implementable activities Operational plans will highlight various action steps to be undertaken in order to address the respective Unit’s priorities, the various deliverables and its associated performance indicators, responsible persons, target dates etc Individual work plans aligned to the operational plans will be developed to reflect on the aspects of day to day service delivery activities of DAFF to ensure that the DAFF business community is well informed Service standards and turnaround times will be developed for each service which needs to be reported against on a monthly basis Monitoring and evaluation will be conducted monthly on planned outputs in the strategic plan and analyses of progress towards achieving strategic plan outputs The reports will be aligned to the status reported against strategic outputs. Reports will be produced quarterly and annually. 43

44. THANK YOU !!!