Progress on Implementation of
the Agrarian Transformation
PresentationStrategy
to: MINMEC
February
Date:24 April
2015 2016
Venue: Kempton park
CONTENT
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Policy context
Policy alignment
Vision & Mission
Strategy recap (Brief overview)
Strategy Roll out
KZN Value chain examples
Process of Development
District focus for Value Chain Enhancement
Summary of investment in Districts
Effects of the drought
Achievements on the ground
Challenges experienced in 2015/16 with suggested reviews
to Strategy
• Reprioritisation for drought
Policy Context
•The Agrarian Transformation Strategy is informed by the
following government polices and mandates:
•5 Key National Priorities
•NDP;
•NGP;
•PGDP;
•MTSF;
•APAP;
•KZN Poverty Master Plan;
•SONA & SOPA & CABINET DECISIONS &
•9 Point Plan.
NDP/PGDP
•Create 1 million jobs by 2030.
• Expand irrigation schemes
• Convert under-utilised land in
communal areas and land reform
projects into commercial production
• Pick and support commercial
agricultural sectors that have the
highest potential for growth and
employment
•Develop value chain strategies that
give new entrant farmers to product
value chain.
•Support job creation in the
upstream and down stream
industries.
•Ensure food security
POLICY ALIGNMENT
NGP
 145,000 new
jobs in agroprocessing by
2020
 300 000 new
smallholders
MTSF
•Improved and sustainable agrarian
and land reform;
•Smallholder farmer development and
support (technical, financial and
infrastructure);
•Reduced rural unemployment;
•Increased access to quality basic
infrastructure and services, particularly
education, healthcare and public
transport;
•Creation of sustainable rural
enterprises, supported by increased
investment in agro-processing, trade
development, access to markets and
financial services;
•Improved integration and coordination
of rural development across all
spheres of government.
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9 Point Plan
In 2015 State of the Nation address, the President Mr J G Zuma
pronounced a “9 Point Plan’ to grow the economy:
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• Resolving the energy challenge.
• Revitalising agriculture and the agro-processing value chain.
• Advancing beneficiation or adding value to our mineral wealth.
• More effective implementation of a higher impact Industrial Policy Action Plan.
• Encouraging private sector investment.
• Moderating workplace conflict.
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• Unlocking the potential of small, medium and micro enterprises (SMMEs), cooperatives, township and rural
enterprises.
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• State reform and boosting the role of state owned companies, information and communications technology
(ICT) infrastructure or broadband roll-out, water, sanitation and transport infrastructure as well as
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• Operation Phakisa aimed growing the ocean economy and other sectors
Poverty Eradication Master Plan: 5 Pillars and 29 Game
Changers
Working Together For A Secure and Prosperous Future.
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Vision and Mission
Vision: A united, sustainable and vibrant
agricultural sector with thriving rural
communities in balance with nature.
Mission: To promote, through partnerships,
sound agricultural practices that promote
economic growth, food security and
advancement of rural communities.
AGRARIAN TRANSFORMATION
STRATEGY
 The Strategy sets out agrarian reform which will result in commercialisation of
agriculture in KZN by implementation of a various programmes (Pillars); namely:

Land Reform Support Pillar,

Agri-village Pillar,

River Valley Pillar and

Communal Estates Pillar.
 These pillars are supported by four building blocks:

Agro-processing

Business Model

Commodity approach,

Scientific Research, Technical Development, Training and Extension
TOGETHER WE HAVE MADE KZN A BETTER PROVINCE TO LIVE IN
STRATEGY BRIEF RECAP
Roll Out of the Strategy
Prioritised
Projects for
implementation
Strategy rollout
to Traditional
Leaders
Shared the
strategy with
Land reform
beneficiaries
Strategy Roll
out
Presented the
Strategy and roll
out to the
Provincial
Legislator
Road show to
Districts and
their leaders
Interaction with
commodity
organizations to
obtain support
Empowered
DARD
Extension staff
Value Chain Focus
INPUT
PRODUCTION
TRANSPORT
HARVEST
STORAGE
PROCESSING
Development
RETAIL
Sugar cane Value Chain Focus
Suppliers
Sugar cane
Mechanisation &
Inputs
Production
Harvesting
Milling
Bio fuels
Sugar
Manufacturing
of other
products
Co-generation
of Electricity
Wholesalers
Retailers
Exporters
12
Maize Value
Chain Focus
Grains
Maize
Suppliers
Mechanisation
Inputs
Production
Harvest
Storage
(Silos)
Manufacturing
Animal feeds
Sell as grain
from field
Milling
Wholesalers
& Retailers
Storage
Pack house & Distribution
13
Poultry Value Chain
Focus
Poultry
(Broiler)
Infrastructure development for
hatcheries, grower houses &
abattoirs
Suppliers
Livestock
Livestock Inputs
Inputs (medicine
(medicine
&
& feeds)
feeds)
Sale of Day old
chicks to broiler
producers
Provision
Provision of
of day
day old
old
chicks
chicks
Sell live birds
Production of broilers
Slaughter at Abattoirs
Processing
(Specialised cuts.)
Manufacturing
(Polonie)
Wholesale/Retail Outlet
14
Beef Value Chain Focus
Beef
Infrastructure development
for grazing camps
Suppliers
Livestock Inputs (medicine
& feeds)
Feedlots
Production
Sale of livestock
Slaughter at Abattoirs
Processing
(Salt, Smoking etc.)
Manufacturing
(Canning)
Wholesale/Retail Outlet
Districts
Uthukela
Umkhanyakude
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Process for development
Identification of
Resource
potential
Commodity
alignment with
resource
potential
Social
Facilitation
Develop
upstream and
down stream
gaps
Partner with
commodities to
fill the gaps,
Training &
Marketing
selection of
land and
farmers
Development
of the farms
Identification of
gaps in the
value chain
Amajuba
Value chain
enhancement with
AgriParks drive
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3
2
1. Maize / Soya
2. Groundnut
3. Livestock (Dairy, Poultry,
Piggeries, & Beef)
1
1
Effects of the drought on
implementation
• Late rains made it impossible to do soil preparations for maize
production in most districts
• Consideration was given to changing the commodity from maize to dry
beans
• Some communal estates decided to plant maize in dry soil and others
planted late
• Both these actions could lead to below optimal yields that could lead to
shortfalls in income to support next years planting season
Progress with implementation
Communal Estate (CE) establishment – Primary Agriculture
 Mechanisation equipment was handed to established Cooperatives and
was dependent on the size (hectares) of the CE, slope and soil
condition. The ownership however remains with the department for a
minimum period of three (3) years.
 Funding agreements were signed with the 113 cooperatives and funds
transferred
 91 Communal Estates have received Tranche 1 payments.
PLANNED CE HECTARES PER
DISTRICT 2015/16
Districts
Amajuba
Umkhanyakude
Zululand
No. of
Communal
Estates
Maize (HA)
Beans (HA)
39
4 830
7
-
Groundnuts
(HA)
Chicory (HA)
Vegetables
(HA)
350
50
-
-
5230
800
450
-
-
1250
-
10 909
Soya Beans
TOTAL HA
28
8 006
2 903
-
-
Uthungulu
5
222
548
-
-
Umzinyathi
5
750
250
200
-
-
1200
19
3 248
292
-
40
-
3580
5
800
-
-
-
26
1 448
-
-
-
3587
Ugu
5
70
505
-
-
-
575
Ilembe
5
125
75
-
-
-
-
-
-
700
40
Uthukela
Umgungundlovu
Harry Gwala
Ethekwini
Total
144
19 449
639
1500
6 362
1 500
770
50
850
50
250
100
28 202
PROGRESS TOWARDS PLANTING OF
CROPS:
DISTRICT OFFICE
Maize
Ugu
40
uMkhanyakude
60
Ilembe
uThungulu
Amajuba
uMzinyathi
uThukela
uMgungundlovu
Zululand
Harry Gwala
eThekwini
Total
Total area planted
45
98
4415
534
33
HECTARES PLANTED
Ground
Dry beans
Soya
nuts
115.1
Chicory
100
40
0
100
450
646
16
67
575
5241
7379.7
1418.1
575
39.6
6
139.6
6
21
TRACTOR TRANSFER TO CEs
• The Hon Premier and MEC test driving one of the tractors
that was transferred to Impendle CEs
• Land preparation took place in Impendle
TOGETHER WE HAVE MADE KZN A BETTER PROVINCE TO LIVE IN
Progress with implementation
River Valley development – mainly primary agriculture
 This model concentrates on the development of the river basin
where there is a potential for the development of irrigation schemes.
 Socio-economic and environmental interrelationship of land and
water sources are central in the development of this model.
 The department is currently implementing 35 River Valley Projects
 Drought prevalence in the province has negatively affected
the implementation of this pillar and farmers have struggled
to secure water rights
Interventions
• Beef
• Promote commercialisation of livestock through the Communal
Estate concept
• Promote correct grazing management principles
• Introduce castration of non descriptive bulls
• Improve genetic material through introduction of pure breed bulls
• Develop earthen dams for livestock drinking
• Promote auction sales at the 4 sale yards in the area
• Promote the use of the 2 feedlots in the district to finish cattle
before auctions
• Promote good livestock health through primary animal health care.
Progress with implementation
Agro-processing & Value chain enhancement
 Sugar mill feasibility on the Makhathini
 Maize
 Seed production - Msunduzi
 processing - Dabhazi / Maphophoma Mill
 Livestock
 Abattoirs at Nongoma, Mhlathuze & Msinga
 Tannery at uMnambithi
 Dairy development in Greater Kokstad, Ingwe & Newcastle
 Wine industry – upgrading winery in Okhahlamba
 Fruit & vegetable processing at Hillcrest
School Nutrition Programme
 School nutrition programme presents a strategic market for local farmers
 The agrarian reform strategy supports local farmers to produce fresh produce
commodities required for the school nutrition programme
 Distribution of fresh produce from farmers to school, is facilitated by agreements
between the Department of Education and service providers.
 Examples of arrangements currently at Ilembe and uThungulu, where the DoE has
entered into an agreement with a fresh produce market or development agency
which source fresh produce from the farmers to supply schools
KWAZULU NATAL AGRICULTURAL
SCHOOLS REVITALISATION
GRANT PROGRAMME
Purpose
 To revitalisation agricultural schools and colleges to improve their
capacity
to
contribute
to
skills
development,
agricultural
infrastructure and training in the province.
 To create enabling environment for the youth in KZN to participate in
the broader agricultural sector, as a career of choice and
advancement of business skills in agriculture
Challenges with
Implementation and
suggestions for review
Challenge
Method of addressing
Commercial Projects struggle to get
Development Funding
Agreements to be established with DFI’s
Non bankable Business plans
Training of staff in the requirements of
bankable business plans
Incorrect technical information
Involve the Agricultural
Scientists in the planning of projects
Lack of involvement of Commodity
organisations
Establish agreements with commodity
groups and establish a work process with
them
Business model of projects non realistic
Focus on what is required for the
businesses to work rather than having
elaborate structures
Drought
Interventions
The approved scheme had a phased approach, i.e.:
• Phase 1:
– Procurement of inputs for Livestock and water harvesting – R 60 Million (R 36
Million – CASP & Ilima Letsema and R 24 million DARD equitable share)
• Phase 2:
– Aggressive de-worming of livestock (Veterinary services) – R 9 Million (CASP &
Ilima Letsema)
• Phase 3:
– Borehole drilling and dam scooping – R 45 Million (DARD equitable share)
• Phase 4:
– Joint Drought Intervention DRD&LR
• Identification of state land for grazing.
• Feedlotting
• Phase 5 (R 28 million)
– Other i.e.;
– Supply of Hay
– Water harvesting equipment
Thank you