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AN OVERVIEW OF THE

AGRICULTURE, FORESTRY &

FISHERIES SECTORS

01 JULY 2014

PRESENTATION OUTLINE

Contextual Background Sectoral Background & Challenges The Dept of Agriculture, Forestry & Fisheries Legislative & Policy Mandates Sector Performance Outcomes-based Focus Areas National Priorities Challenges/Threats Opportunities Conclusion Implications for Oversight

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CONTEXTUAL BACKGROUND

2009/10: Department of Agriculture, Forestry & Fisheries establishment initiated - amalgamation of Forestry from former DWAF & Fisheries from former DEAT.

Challenges: Personnel alignment; budget adjustment due to OSD (finalised in Forestry & partial in Fisheries, which led to loss of some Fisheries personnel); additional vacancies.

Response: restructuring - creation of a new organogram & programmes – finalised in 2012. DG appointed in Sept 2010 & left in mid-2012 – new DG appointed in October 2013.

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SECTORAL BACKGROUND

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Agriculture Forestry Fisheries

• Field crops, horticulture & animal production• Export-oriented commercial sector (high-potential land)• Under-resourced smallholder sector (marginal lands – former homelands)• Focus on equitable access & sector transformation

• ~1% of SA land area• Indigenous forests, woodlands & plantations• Indigenous forests/woodlands – rural economic dev• Plantations – commercial

• Deep-water & near shore fisheries • Highly industrialised commercial sector• Under-resourced smallscale – historically, limited rights

SECTORAL CHALLENGES

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Agriculture Forestry Fisheries

• Critical skills shortage• Farmer capacity, dev & support• Climate change – droughts, floods, pests. • Disease outbreaks• Land degradation • International trade – subsidies, import tariffs & SPS measures

• Skills shortage • Water licensing• Limited R & D• Lack of funding for investment• Climate change - fires, pests & diseases • Forest degradation• Lack of timber

• Declining fish stocks – limit industry growth• Climate change – species reproductive capacity, migration• International trade – prices, exchange rates• Rights allocation• Cost of production inputs – fuel, vessel maintenance (smallscale)

DEPT OF AGRIC, FORESTRY & FISHERIES

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Programmes Entities

1. Administration2. Agricultural Production,

Health & Food Safety3. Food Security & Agrarian

Reform4. Economic Development,

Trade & Marketing5. Forestry & Natural Resources

Management6. Fisheries Management

• Agricultural Research Council• Onderstepoort Biological Products • National Agricultural Marketing Council • Perishable Products Export Control Board • Ncera Farms (Pty) Ltd • Marine Living Resources Fund

Overview

Mandate: to address production & consumption in the agriculture, forestry & fisheries sectors.

Section 27(1)(b) of the Constitution: “Everyone has the right to have access to sufficient food.”

Further: Sections 27(2) & 24(b)(iii) – obligation for realisation of the right above & sustainable natural resource use.

33 Acts of Parliament (Annexure 1).7

LEGISLATIVE MANDATE

Overview Strategic Plan for Agriculture (2001): key

driving force for agriculture & its vision was a “united and prosperous agricultural sector”. It focused on:(a) Equitable access & participation

(b) Global competitiveness & profitability

(c) Sustainable resource management

Evaluation of Plan (2007/08) – progress on (c) but (a) required urgent attention.

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POLICY MANDATE

Overview Since 2009, no overarching & integrated policy.

Short-term interventions: IGDP in 2012 & APAP in 2013 – both not presented in Parliament.

National Gov Priority Outcomes:

4 - Decent employment

7 - Rural development & food security

10 - Natural resource protection & management

National policy frameworks incl. the MTSF (being developed), IPAP, NGP & NDP; as well as SONA 9

POLICY MANDATE CONT...

Overview Agriculture: approx 3% to GDP – however, if

forward & backward linkages to economy of agribusiness value chain considered, ~12%.

- approx 5% employment (640 000 people).

Forestry: approx 1.2% to GDP

- approx 7 000 workers (+30 000 indirectly).

Fisheries: approx 0.5% to GDP

- approx 27 000 workers (+100 000 indirectly)

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SECTOR PERFORMANCE

Overview Food Security (Outcome 7): Nationally, IFSS (2002).

Dept had no specific policy but addressed by providing support through conditional grants such as CASP (smallholder producers), Ilima/letsema (subsistence producers) & various other programmes. Food & Nutrition Security Policy (Sept 2013) – DAFF & Social Development - Fetsa Tlala Initiative. M & E of conditional grants & implementation of new Policy essential (role of each Dept).

Job creation (Outcome 4): Agric labour-intensive & ability to absorb unskilled & semi-skilled labour, identified as a key job driver in the NGP. In addition to private sector jobs, DAFF contributes to job creation mostly through EPWP programmes, viz. LandCare (rehabilitation in agric + forestry), Million Trees Project, Working for Fisheries. Sustainability of jobs (M & E).

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OUTCOMES-BASED FOCUS AREAS

Overview Rural Development (Outcome 7): Agric considered

backbone of rural economy & driver of rural economic development. Lead Agrarian Transformation pillar of the CRDP (DRDLR) – focus on post-settlement support for land reform beneficiaries & dev agric, forestry & fisheries rural enterprises.

- No collaboration between 2 depts – variation amongst provinces.

- Role of mentorships & strategic partnerships on land reform projects (sustainability & benefit to beneficiaries).

Sustainable use of natural resources (Outcome 10): LandCare - Rehabilitation of degraded agric land & woodlands, alien & invasive species clearing; Greening Prog.

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O-B FOCUS AREAS CONT...

Overview Develop & expand agroprocessing (entire value chain) –

agric (food processing), forestry (paper, timber, furniture) & aquaculture (IPAP) – aquaculture: collaboration between DAFF, dti & Proudly SA to develop campaign on kabeljou (dusky kob) by Q3 of 2014/15.

300 000 HH in smallholder schemes by 2015 & 500 000 jobs from agric & specifically, 145 000 jobs from agroprocessing (wine & fruit exports) by 2020 (NGP).

1M new jobs by 2030 in agriculture, agroprocessing & related sectors by 2030 (NDP) – infrastructure investment (irrigation). 33% surplus from smallscale sector.

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NATIONAL PRIORITIES

Internal: Technical & financial support: accessibility & state of

extension service (lack skills) – ERP (qualification upgrades & further training) - National Policy on Extension & Advisory Services – in progress; lack of infrastructure (usually on-farm & limited); accessibility & limited finance instruments (CASP, Mafisa); general shortage of critical skills.

Lack of info on smallholder sector: absence of baseline data (database) – (numbers, spatial location, land access, productive potential, resource needs, categories). Most agric info & stats based on commercial sector. Hard to evaluate progress & assess impact of intervention without a baseline.

IGR: Lack of coordination amongst Depts – slow/little progress - duplication with limited resources. On CRDP, DAFF & DRDLR competing instead of complementing each other.

Poor investment on R & D: ARC commercially-oriented; limited research on smallholders by academic institutions 14

CHALLENGES/THREATS

Overview External Climate change: huge impact on the 3 sectors & changes

in production areas inevitable – risk & vulnerability maps (ARC

& CSIR) – adaptation; natural disasters & disease outbreaks

Encroachment on agric land: impact of mining, fracking, urban development on productivity, water & grazing land – Protection & Development of Agricultural Land Bill being developed.

International trade policies – impact of subsidies, SPS measures & commodity prices on exports & competition, particularly for newcomers – Marketing Bills.

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CHALLENGES/THREATS CONT...

2014: AU African Year of Agriculture & Food Security (CAADP 10-yr commemoration); UN International Year of Family Farming.

NGP/NDP: Agroprocessing - prioritise value-addition across entire chain.

Increase area under production: use spatial mapping & analysis (ARC-ISCW) – comparative advantage or productive potential (agric); afforestation / reforestation (forestry).

Infrastructure: irrigation, on- & off-farm, agroprocessing (all 3 sectors) – security against vandalism, ensure regular maintenance.

Comprehensive producer support: IGR & PPP (commodity groups) - technical, finance, capacity building, markets

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OPPORTUNITIES: SHORT-TERM

Overview CAADP - NDP: SA not yet signed CAADP Compact -

investment opportunities; private sector involvement; capacity building; increase commercial agric; regional export markets.

Agric: identify opportunities for new & niche markets e.g. olive oil production small in SA; diversion of blocked exports (citrus) to new markets; smallholder livestock dev; established commercial sector - PPP (e.g. NWGA communal sheep in EC); organic farming.

Forestry: Processing (sawmilling, furniture-making); rehabilitation of old plantations; non-forest products enterprises.

Fisheries: Aquaculture expansion; new fisheries.

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OPPORTUNITIES: LONG-TERM

Focused leadership & institutional capability:

- development of long-term & integrated sector policy based on experience & evidence to ensure it straddles changes in administration (use NDP as roadmap). Full Integration of Forestry & Fisheries into Agriculture.

- address skills shortages across all 3 sectors including extension capacity (essential for smallholder sector).

Committee M & E of policy, legislation & programmes wrt development, processing, tabling, implementation (plans essential), budgeting & financial resource use – realisation of national priorities. Utilise DPME reports, AG & other tools.

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IMPLICATIONS FOR OVERSIGHT

Overview

IGR: Coordination on crosscutting mandates – PCs on RDLR, Social Development, Trade & Industry, Public Works, Finance, inter alia as well as relevant SCs to seek clarity on responsibilities, ensure resource mobilisation & efficient use of state resources against competing priorities amongst government departments & agencies.

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IMPLICATIONS CONT...

Overview Unless agriculture reaches some degree of

commercialisation, the impact of agricultural growth on food insecurity and poverty alleviation is likely to be limited – promote PPP to leverage on the established commercial sector. (NDP, CAADP)

Oversee policy-mandated development and comprehensive support of the smallholder sector to address transformation objectives not only in agriculture, but in forestry and fisheries. 20

CONCLUSION

THANK YOU

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