readiness for 2018/19 planting season 04 september 2018
TRANSCRIPT
READINESS
FOR 2018/19 PLANTING SEASON
04 September 2018
Portfolio Committee Meeting on
Agriculture, Forestry and Fisheries
Content • Limpopo food access status
• Limpopo agricultural map and land capability
• Priorities for development
• Partners and collaboration agreements in place
• State of readiness for 2018/19 planting season
• Overall Letsema budget
• Backyard food production support
• Estimated job opportunities
• Potential markets
• Potential risks and mitigation strategies
• Progress on the implementation of plans to address issues raised
during the last Portfolio committee oversight visit
2
Food access status – Limpopo and National, 2017
GHS survey
3
% of HH: Food Access Adequacy
% of HH Food Access Inadequacy
4
% of HH engaged in agricultural activities by
Provinces
Source: Stats SA GHS Report, June 2018
Food access status – Limpopo and National, 2017
GHS survey, cont..
Limpopo agricultural zones
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Subtrop Industry Headline Stats, 2016
Avocado Litchi Macadamia Mango Total
Area under production (ha) 15 500 1 730 20 000 7 000 44 230
Annual production (t) 115 000 5000 40 000 75 000 235 000
Annual value R1.3 bil. R120 mil. R3.5 bil. R320 mil. R5.24 bil.
Employment ±5 100 ±2 400 ± 8 000 ±3 000 ±18 500
Commercial growers ±340 ±100 ±500 ±120 ±1060
Emerging growers ±60 ±30 ±110 ±70 ±270
SUBTROPICAL FRUIT INDUSTRIES
12
Priorities for development
• Revitalisation of primary agriculture and agro-processing to contribute to the provincial industrialisation
• Revitalisation of agricultural colleges to contribute to the sector’s skills base
• Household food production support to sustain provincial food security levels
• Intensify research and technology development to mitigate effects of climate change on production
Revitalising agriculture and agro-processing
value-chain (RAAVC)
• Limpopo Province is producing a variety of agricultural commodities, some have
been identified for high growth potential and labour intensity, such as fruit
(subtropical fruit & citrus), nuts (macadamia) and vegetables, which have been
identified as catalyst for industries cluster value chain development.
• The Province is leading nationally in the production of some of these
commodities, namely, citrus, avocado, mango, tomato and a second producer of
macadamia nuts.
• Despite leading in these commodities, current levels of primary agricultural output
is insufficient to provide inputs into a large scale and thriving food processing
sector.
• A need for sustainable support programmes that should contribute towards the
sector’s growth, food security and employment creation .
14
Identified potential for production expansion (ten year
period, commencing 2018/19)
Commodity Potential
Avocado Expansion of avocado production around Tzaneen and Levubu areas,
targeting 1000ha
Macadamia nuts New establishment around Makhado and Thulamela and targeting 1000ha
Mango Expansion of high value varieties for dry mangoes, targeting 1000ha in
Vhembe and Mopani
Citrus 600ha in Mopani & revitalisation of orchards in Waterberg
Vegetables 1000ha across the province
Grains Targeting 25 000 hectares in Sekhukhune and parts of Capricorn, also linked
to animal feed production for red and white meat clusters development
15
Primary production expansion – to support upstream and down stream value chain activities
Market Infrastructure Development, SAGAP and Global GAP Standards certification, to improve domestic and export market access
agro-processing support for product beneficiation and addressing post harvest losses, thus improved income and job opportunities
Exploring sound business operating models for community owned enterprises
Development of bankable business plans to attract private funding
Revitalisation objectives
16
Partnerships
• MOUs in place with the following sector partners
– Sub-tropical fruit
– Citrus Growers Association
– Tomato Growers Association
– Perishable Products Export Certification Board (PPECB)
– Agricultural Research Council (ARC)
– Landbank
– Progress Milling
• Mentorship and market agreement at farmer level with
Potato SA
• Mentorship at farmer level with established commercial
farmers/entities
• Collaboration with sector departments 17
Readiness for 2018/19 planting
season
18
2018/19 plan
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• 13 654 hectares to be under production for the financial year
2018/19 (2018/19 APP).
• Target communal land under traditional authorities as well as
land reform projects.
• Mechanization support services through government
tractors, augmented by private tractors services.
• Production inputs, which include: seeds, seedlings and
fertilisers for irrigated lands and seeds and fertilizers for
rainfed lands.
Overall Readiness (2018/2019)
Districts Targeted
Hectares
Beneficiaries Seeds
Ordered
(Tons)
Fertilizers
Ordered
(Tons)
Mechanization
Units
(Tractors)
Overall
Readiness
Rating
Pesticides
(Litres)
Business
Plan
Hectares
Capricorn 2 122
869 15 168 14 87% 2 122
Mopani 1 500
1705 24.3 93.9 15 95% 990 1 500
Sekhukhune 4 849
4200 33.2 0 18 85% 4 849
Vhembe 2 500 1500 0.5 271 15 90% 2 500
Waterberg 2 683
578 0.25 31.2 10 80% 230 2 683
Total 13 654 8 852 61.85 396.1 72 90% 1 220 13 654
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Hectares planned for 2018/19 FY
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• A total of 13 654 hectares are targeted, as reflected in the 2018/19 Annual Performance Plan
and Ilima-Letsema Business Plan.
• Hectares planned are for both subsistence, smallholder and commercial farmers.
• Planned hectares are broken per districts in the table below:
Districts
Estimated area to be supported (Ha) Estimated number of beneficiaries
Capricorn 2122 869
Mopani 1500 1705
Sekhukhune 4849 4200
Vhembe 2500 1500
Waterberg 2683 578
Total 13654 8852
Breakdown of Ha under Traditional Authorities and Land Reform
(2018/2019)
Districts Targeted Hectares Ha under Traditional
Authorities
Ha under Land Reform
Capricorn 2 122
2 082 40
Mopani 1 500
1 370 130
Sekhukhune 4 849
4 849 0
Vhembe 2 500 2 200 300
Waterberg 2 683
1 653 1030
Total 13 654 12 194 1 500
PLANNED HECTARES PER COMMODITIES
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COMMODITY HACTARES
FRUIT 584
VEGETABLES 2 609
WINE GRAPE
COWPEAS
MAIZE 7 782
WHEAT
GROUNDNUTS
SORGHUM 900
SOYABEANS 30
BEANS 849
FODDER
COTTON 20
SUNFLOWER 880
CHICORY
SUGARCANE
FORESTRY
CASTOR
TOTAL 13 654
Breakdown of beneficiaries in terms of women, youth,
and disability
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District Women Youth
(Female)
Youth (Male|)
Disabled Males Total
Capricorn 415 3 8 5 438 869
Mopani 524 57 27 4 1093 1705
Sekhukhune 2 000 0 0 0 2200 4200
Vhembe 903 105 220 17 255 1500
Waterberg 33 10 20 0 515 578
Total 3 875 175 275 26 4501 8852
Mechanisation plans
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• Mechanisation support is through Government tractor fleet, augmented by privately owned tractor services.
• The table below gives a breakdown of hectares to be ploughed with government fleet, as per the condition of
the tractors:
• Privately owned Mechanization already contracted in 2018/19 FY
District No of tractors Estimated ha ploughed and planted Estimated beneficiaries
Capricorn 14 600 300
Mopani 15 600 300
Sekhukhune 18 1000 1 000
Vhembe 15 600 300
Waterberg 10 354 37
Total 72 3154 1437
District No of Private tractor
services contracted
Estimated ha ploughed
and planted
Estimated beneficiaries
Capricorn 81 2000 569
Mopani 50 1000 1405
Sekhukhune 118 3000 3200
Vhembe 59 2000 1200
Waterberg 55 2500 541
Total 363 10500 7415
State of government tractors
The status of the 72 tractors is indicated in the table below.
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District Number
tractors
Tractors to
be repaired
Status
Capricorn 14 7 • 7 tractors are confirmed to be functional • Tractor drivers to be appointed mid Sep 2018 • 7 tractors are booked for repairs at Landini in Bela Bela. They will be
taken by 07th Sep 2018
Mopani 15 15 • All tractors to be serviced. • A process to appoint a service provider will be concluded by … • Tractor will be taken in by …
Sekhukhune 18 2 • 16 tractors are confirmed to be operational. • 2 Tractors to be fixed by end of September .2018
Vhembe 15 10 • 5 in good working conditions.
• 10 to be fixed by end of September
Waterberg 10 3 • 7 Tractors are ready for work • A process to fix the 3 is underway and will be concluded mid September • Repairs to be completed by first week of October
TOTAL 72 37
Production inputs - Fruit & vegetable
commodities
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• Approximately 90 000 banana seedlings for Tshikonelo and
Matsika (expansion) projects in Vhembe – delivery expected
in October 2018. Planting will be up to March 2019.
• 2 200 avocado seedlings for Letaba project in Mopani -
delivery expected in November 2018. Planting will be up to
March 2019.
• 626 000 tomato seedlings delivered for Giyani, Ba-
Phalaborwa and Maruleng projects
• 175 000 chillies seedlings delivered for Letaba, Tzaneen and
Giyani projects
• 80 000 pepper seedlings delivered for Giyani projects
• Procurement underway for other districts
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Deliveries at Greater Tzaneen municipality
Matsika Development
Matsika Irrigation Scheme Development of 90ha
micro-jet irrigation system
• First phase of 50ha banana
planted, first harvest this year.
• For 2018/19, 66 660 of banana
seedlings purchased and
delivered to cover the
remaining hectares.
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Matsika Irrigation scheme – Banana
Development
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Tshikonelo Development
Tshikonelo Irrigation
Scheme Installation of irrigation
system for 77ha
• Infrastructure has been
completed end of 2017/18.
• 22 220 banana seedlings have
been purchased, will be
planted this season.
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Fruit & vegetables commodities
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• 450kg butternut seeds for Nwanedi and Ba-phalaborwa
projects
• 50 tons potato seeds for potato development in Capricorn
have been ordered, awaiting delivery by September 2018
• 110 000 tomato seedlings for Capricorn awaiting delivery
during September 2018.
Potato development
Nkukeng Project Installation of 7ha towable
Centre Pivot
• Irrigation system has been
completed in June 2018.
• The preparation of land for
planting has been
completed during August
2018
• Potato seeds (37.5 tons)
have been procured and
delivery is expected by
September 2018.
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Cont…
Moletji Farming Equipping of two boreholes and
Construction of 313 000 litres
reservoir
• The infrastructure has
been completed in May
2018.
• Preparation of land for
planting has been
completed
• Potato seeds of 12,5tons
have been purchased for
planting season
34
Cont..
Tlou-Farming
• The repair of existing 20ha centre pivot has
been completed in August 2018.
• Potato seeds purchased for planting season.
Delivery is expected in by September 2018.
35
Nwanedi development
Nwanedi Project Development drip irrigation for 50
farmers and installation of a pump
house
• Completed during May
May 2018 and is
operational.
• 200 kg Okra and 372kg
butternut seeds
purchased and delivered
36
Fruit trees planting as part of Arbor week
programme
• Provincial commemoration is planned for 11 September
2018,in Collins Chabane Local Municipality.
• 2 000 fruit trees have been procured, for household
planting
• 2 fruit trees per household, targeting 500 households in
the Municipality
• Other trees will be planted at the schools as part of
promoting JuniorCare.
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Drought resistant seeds purchased and
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Seed Variety Quantity procured Amount utilised
Maize seed (PAN 6479) 37 585 kg R 2 745 662.72
Maize seed WEMA 3128 22 000 kg R 2 103 640
Maize seed DKC 7845 2 150 kg R 399 900
Maize seed DKC 2147 3 180 kg R 446 805.90
64 915 kg R 5 696 007.72
Breakdown of Letsema overall budget per farmer category
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Commodity Subsistence Smallholder Commercial TOTAL
Amount No Amount No Amount No Amount No
Vegetables R 0.00 0 R 19 236 561.00 26 R 0.00 0 R 19 236 561.00 26
Maize R 7 035 270.00 15 R 34 142.00 1 R 0.00 0 R 7 069 412.00 16
Sorghum R 614 000.00 2 R 614 000.00 2
Sunflower R 80 000.00 1 R 857 863.00 2 R 937 863.00 3
Poultry R 0.00 0 R 3 530 478.00 13 R 0.00 0 R 3 530 478.00 13
Livestock (Red
meat) R 0.00 0 R 1 762 794.00 6 R 589 981.00 1 R 2 352 775.00 7
Cotton
Production R 800 000.00 2 R 0.00 0 R 0.00 0 R 800 000.00 2
Fruit Production R 0.00 0 R 1 900 000.00 3 R 5 600 000.00 3 R 7 500 000.00 6
Fish production R 300 000.00 1 R 300 000.00 1
Bee production R 400 000.00 1 R 400 000.00 1
Small stock
production R 160 000.00 2 R 432 500.00 2 R 0.00 0 R 592 500.00 4
Food Security R 4 611 635.00 71 R 0.00 0 R 0.00 0 R 6 502 952.00 71
Govt. tractor
fleet R 4 126 733.00
Fetsa Tlala
mechanisation R 11 149 026.00
Vulnerability
Assessment R 6 151 000.00
Total R 13 335 047.00 93 R 28 454 338.00 55 R 6 189 981.00 4 R 71 263 000.00 152
Backyard food production support 2018/19, per district
and local municipalities
40
District Municipalities
Capricorn Blouberg Molemole Lepelle Nkumpi Polokwane Total
Supported to
date
Targeted
Beneficiaries 300 300 300 300 1 200 505
Mopani Baphalaborwa Greater Giyani Greater Letaba Greater
Tzaneen Maruleng
Targeted
Beneficiaries 240 240 240 240 240 1 200 35
Sekhukhune Elias Motsoaledi Ephraim Mogale Makhuduthamag
a Tubatse
Targeted
Beneficiaries 300 300 300 300 1 200 166
Vhembe Collins Chabane Makhado Musina Thulamela
Targeted
Beneficiaries 300 (89) 300 300 300 1 200 89
Waterberg Bela Bela Modimolle Mogalakwena Lephalale Thabazimbi
Targeted
Beneficiaries 240 240 240 240 240 1 200 67
Grand total 6 000 862
41
Production input support for 2018/19, is in the form of:
• Seeds
• Seedlings
• Compost
• Day old chicks and feed
Backyard food production support 2018/19 cont..
Towards 100% readiness by October 2018
Activity Time frame
• Delivery of vegetable seeds &
seedlings, fertilisers
• Delivery of fruit tree seedlings
• Servicing of remaining government
tractors
• Delivery of remaining fertilisers
• Delivery of pesticides
September 2018
October 2018
September 2018
October 2018
October 2018
42
Private tractor services
• One year contracts, ending December 2018
• Inspections will commence early September 2018 to
confirm the status and condition of the tractors
• Procurement process for new contracts will commence
in September 2018
43
Jobs (Private Tractor Operators) District Estimated Temporary Jobs to be created during
planting season (Private Tractor Operators)
Total
Female Youth (M) Youth (F) Disabled Male
Capricorn 21 13 0 0 53 74
Mopani 13 12 0 0 29 42
Sekhukhune 21 12 0 0 65 86
Vhembe
20 12 0 0
27 47
Waterberg
6
9
0
0
15
21
Total 81 58 0 0 189 270
44
Jobs (Government Tractors) District Estimated Temporary Jobs to be created during
planting season (Government Tractors)
Total
Female Youth (M) Youth (F) Disabled Male
Capricorn 0 0 0 0 14 14
Mopani 0 0 0 0 15 15
Sekhukhune 0 0 0 0 18 18
Vhembe
0 0 0 0 15
15
Waterberg 0 0 0 0
10
10
Total 0 0 0 0 72 72
45
Estimated Jobs during harvesting District Estimated Temporary Jobs to be created during
harvesting
Total
Female Youth (M) Youth (F) Disabled Male
Capricorn
250
24
106
15
165
560
Mopani
528
10
8
4
320
870
Sekhukhune
0
0
0
0
0
0
Vhembe
101 43 25 8 162
339
Waterberg
32
10
8
1
40
91
Total
911
87
147
28
687
1860
46
Planned market for the produce after harvest
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• Fresh produce marketed through the following:
Local Supermarkets and Retail stores
Johannesburg and Tshwane fresh produce markets
Export market – citrus, avocado
Farm gate (Hawkers)
Processors
• Tiger brand
• Millers (Progress milling, NTK, Obaro) for grains and dry beans
• 15 projects will be audited this financial on market
standards compliance – GAP standards, as part of
market readiness support
Potential risks and mitigation strategies
48
Risks Mitigation Strategies
1. Unpredictable weather conditions Regular weather advisories
disseminated to producers
Use of adaptable breeds and drought
tolerant varieties
3. Conflicts amongst beneficiaries Continuous social mobilisation, towards
functional projects.
4. Inability by Contractors to render
services and deliver inputs as per
required specifications
Constant engagement with Service
Providers to seek solutions on an
ongoing basis.
5. Increasing demand for support and
services vs available resources
Exploring of alternative producer support
models and increasing partnerships with
business and social partners
Progress on the implementation of plans to
address issues raised during the last
Portfolio committee oversight visit
49
Phetwane aquaculture project
• Fish production is in progress
• On the crop production side, the project received co-
funding of R1.14m funding from the Department of Rural
Development and Land Reform, and purchased a
Tractor, Booms-prayer, Disc harrow, planter and plough
• LDARD supplied seeds and fertilizers
• Two beneficiaries have participated in the Aquaculture
management in China in June 2017
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Other aquaculture production support
• Product development & market
– Close to 67 616 fingerlings been distributed to aquaculture projects
in Sekhukhune and Vhembe.
– Hereford harvesting started this past winter
– As part of capacity building, two beneficiaries participated in the
aquaculture management programme in China in June 2017
– Construction of fish processing facility at Tompi Seleka is in
progress. Delivery of the processing equipment is expected in the
3rd quarter
– The facility aims to improve the post-harvest handling in order to
meet the market requirements as well as food safety standards
51
Electricity challenges faced by small farmers in terms
of huge Eskom bills
• Subsequently, Eskom was engaged to try find the root cause for higher
than expected electricity bills. According to Eskom, farmers mostly opt for
bigger transformers without actually understanding their energy needs.
• The Department, in collaboration with Eskom started a programme to
raise awareness on the usage. This includes amongst other things
Eskom being given a slot at every departmental session or event that
involve the farmers.
• Workshops were also held with officials who in turn are expected to
advise the farmers
52
Cont…
• Key message is how farmers should apply for electricity according to
their needs and how to schedule their irrigation accordingly in line with
Eskom’s scheduled hours for lower consumption rates
• A list of affected farmers has been submitted to Eskom regional office so
the matter could be dealt with on case by case basis
53
Reasons for a reduction in Fetsa Tlala
hectares
• Fetsa Tlala programme in Limpopo has been focused largely on dry land
production, targeting communal land under traditional authorities
• The province had not seen a significant improvement from the dry spell of
2014/15 and subsequent severe drought of 2015/16, compounded by
extreme heatwaves.
• With regard to irrigated production, Limpopo farming community is
responsible for 72% of allocated water with different assurance of supply
in different Catchment Management Areas.
• Due to this drought condition, the dam levels within the Province were
very low, owing also to low river flow that was experienced by the entire
country.
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Cont…
• As a result, the Department of Water and Sanitation issued a
Government Gazette on 16 September 2016 restricting the water usage.
• Based on this restrictions and the drought experienced in the past
ploughing seasons the Department had to review target for Fetsa Tlala
hectares to more reasonable and realistic target.
• The support was redirected towards relief for livestock farmers in terms of
livestock feed and exploration of additional water sources
• For the current year (2018/19) the department planned to plough 13 654
Ha as compared to planned 13 006 for (2017/18).
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Tompi Seleka oil refinery project
• Refinery of sunflower into edible oil
• The challenge was to get correct designs for the edible oil equipment
• The specifications have now been completed and the TORs have been
approved for the advertisement of a tender.
• The tender will be advertised this month
Operationalization of the Lebowakgomo poultry abattoir
• The operator has been appointed in June 2018, after the three attempts
could not matarialise
• Discussions are progressing well with the Limpopo Economic
Development Agency (LEDA) on the operating model that would see the
poultry producers and abattoir workers acquiring shares in the business.
• The operation is scheduled to commence in December 2018
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THANK YOU