Diamond Corner Building, 68 Eloff & Market Street, Johannesburg P O Box 8769, Johannesburg, 2000 Telephone: (011) 355-1900 Fax: (011) 355-1000 Email: gdard@gauteng.gov.za Website: http://www.gdard.gpg.gov.za GAUTENG IDC NGUNI CATTLE DEVELOPMENT TRUST: PILOT PHASE 1 TABLE OF CONTENTS 1. Introduction 2. Project Objectives 3. Legal Entity 4. Stakeholders 5. Criteria for participation 6. The Application Process 7. Funding 8. Loaning of Cattle to Participating Farmers 9. Constraints 10. Risks and Mitigation 11. Project Duration 12. Work Breakdown Structure 13. Consultations 14. Key Success Factors 2 4 5 6 6 7 8 10 10 11 12 12 13 14 14 DEFINITIONS Gauteng IDC Nguni Cattle Development Trust - A trust established to further the objectives as set out in the Gauteng IDC Nguni Trust as registered Project Manager – a person appointed by the Gauteng Department of Agriculture and Rural Development and seconded to the Trust to implement the objectives and business of the Trust Nguni cattle – a breed of cattle classified as such by the Nguni Breeding Society Loan cattle – Nguni cattle loaned to participating farmers 3 1. INTRODUCTION Livestock production is a major industry in South Africa with a value of more than R50,0 billion (Stats SA, 2006). According to the National Emergent Red Meat Producers Organisation – Nerpo (2011), South Africa has 13, 5 million cattle with 5.4 million (40) owned by the small-holder sector. The largest percentage of animals is produced in provinces that have large tracts of land such as the Eastern Cape, KwaZulu-Natal, Free State, Limpopo, Mpumalanga, Western Cape and North West. In 2007, Gauteng had 257 000 cattle, and 94 000 sheep and these figures were 1, 84% and 0, 37% respectively of the total number of animals produced in the country (Annual Agriculture Economic Review, 2008). However, in terms of value, the province is among the leading contributors to the total value of livestock products (Stats SA: 2006). The main contributing sub-sectors/industries to farming income in Gauteng are animal/livestock and horticulture comprising 80% of the provincial total with livestock being the largest contributor (Annual Agriculture Economic Review, Final Report: 2008). South Africa produces about 85% of its beef requirements and the remaining 15% is imported from countries such as Namibia, Botswana, Swaziland, Australia, New Zealand and the European Union (EU). This could be attributed to the high level of demand that outstrips the supply. There is, however, spare capacity to meet this shortage especially in the communal areas. As indicated earlier, Gauteng contributes 1,84% towards the supply of beef in South Africa. This is due to the limited land resources in the province. Cattle Distribution and Density in Gauteng Cattle distribution in Gauteng mainly corresponds to the land parcels with an area greater than 25ha and areas with a grazing vegetation land-cover. The urban and residential areas of Johannesburg, Pretoria and the East and West Rand show little or no concentration of cattle. Relatively high concentration occurs in the areas of Rust de Winter, Heidelberg, Kempton Park, Nigel, Vereeniging and Bronkhorstspruit. These areas occur in the outskirts of the urban commercial and residential centres. The high values in Bronkhorstspruit and Heidelberg could be associated with feedlots. In terms of density, areas of Krugersdorp, Nigel and Heidelberg stand out as areas of high cattle concentration. The high density in the west of Johannesburg corresponds well with the location of Soweto. Livestock industry Value chain Figure 1 illustrates the typical structure of the livestock and meat industry in general. It commences with the primary producers leading to feedlots, abattoirs, wholesalers and retailers. From the abattoir the meat could be taken directly to retailers or processed into value-added products /exported. The hides and skins could be processed into other products such as leather, gelatine, etc. In Gauteng, significant value occurs from the feedlot onwards. As stated earlier, primary production requires land and Gauteng has the smallest land area compared to the other provinces. The province, however, has the biggest market for processed livestock products. 4 Primary producers Feedlot Abattoir Imports/Exporters Wholesalers Retailers Processors Hides and Skins Consumers Figure 2: Diagrammatic illustration of the operation of the meat industry (Source: DoA, Commodity Profile: 2006) Gauteng Nguni Partnership Gauteng Department of Agriculture and Rural Development (GDARD) intends to enter into an agreement with the Industrial Development Corporation (IDC) and the University of Pretoria (UP) to promote/develop the breeding and production projects with focus on Nguni cattle by black farmers in Gauteng Province. The project will involve the loaning of a predetermined number of pregnant Nguni heifers to interested and qualifying farmers in the province who should return the off-springs (same number, breed or rand equivalent of the loaned cattle) within a period of 5 years. A trust known as the Gauteng IDC Nguni Cattle Development Trust is currently being established to act as an implementation agency for this project. The following findings have been established through research done by the Nguni Cattle Breeders’ Society on the performance of the breed in comparison to others: 2. Is highly fertile with long productive life; Is the most resistant to ticks of all breeds in South Africa and it shows tolerance to tick borne diseases; Is an excellent dam line for cross breeding, with no calving difficulties; Crosses perform well in feedlots; Has meat tenderness characteristics similar or exceeding that of exotic breeds; Shows higher proportion of total weight and meat in the high priced cuts compared to exotic breeds at the same subcutaneous fat level; Has increased nitrogen recycling back to the rumen which improves microbial growth and organic matter digestion, reducing the nitrogen requirement on low quality pastures, and therefore needs little or no supplementing during winter. Project Objectives The main objective of the Project is to build nucleus herd of superior genetic quality with the purpose of transferring these qualities to the provincial herd; Promote the conservation and use of Nguni breed (conserve through utilization) 5 Support livestock farmers in establishing a resilient herd for economic and environmental sustainability; Establish successful Nguni stud cattle breeders in Gauteng Province; and To empower farmers through the deployment of modern technologies which contribute towards better herd health and husbandry management. Secondary objectives of the project are: 3. The establishment of a niche and recognised “Nguni beef market”; The promotion of sustainable and holistic grazing systems in compliance with longterm grazing capacities, to provide for livestock during critical dry periods and periods of drought; The development of skills and capacities necessary to establish a generation of future black commercial farmers; and Affirmative steps to eradicate bovine reproductive diseases within the targeted areas. Legal Entity The project will establish a Trust known as the Gauteng IDC Nguni Cattle Development Trust whose Trustees will be nominated from the following organisations: Gauteng Department of Agriculture and Rural Development; (2 representatives) Industrial Development Corporation; (2 representatives) University of Pretoria (2 representatives) Representatives of participating farmers (optional). Beneficiaries of the Trust will be individuals/legal entities who have shown interest in the project and meet pre-determined qualification criteria. The Gauteng IDC Nguni Cattle Development Trust will be the implementing agent for the Nguni Project in Gauteng. The Trust will be an autonomous financial and administrative entity that effectively supports Nguni Cattle Development in the Province. The Board of Trustees is the main decision making body that will be held accountable for implementing the project in the Province. 4. Stakeholders The main stakeholders are GDARD, IDC, UP and participating Farmers in Gauteng Province. The role of the stakeholders is summarised below: 4.1 Gauteng Department of Agriculture and Rural Development (GDARD) Provide partial funding for project implementation Provide infrastructure support to farmers through various programmes like CASP, Illima Letsema, Land Care, etc.; Provide livestock extension services to participating farmers; Provide primary animal health care and other veterinary services to participating farmers through the Veterinary Services Branch; Link farmers with the market though other partners involved in the project; 6 4.2 Industrial Development Corporation 4.3 Co-sponsor of the project; Provide loan funds to the Trust for the purchase and processing of Nguni cattle; Provide overall strategic support and guidance to the project in line with other provinces; and Receive repayment in the form of progeny or rand value of the loaned cattle. Assist farmers participating in the project with an exit strategy once their obligations are met. University of Pretoria 4.4 Provide technical assistance, expertise, research, predetermined knowledge and skills transfer of identified farmers through GDARD “accredited” (approved) service providers; and Marketing of the project in Gauteng. Gauteng Participating Farmers 4.5 Appoint a project manager, on a fulltime basis to be seconded to the Trust; Facilitate the coaching and training of participants to ensure that the appropriate husbandry practices are administered to the cattle; and Appoint a network of veterinary private practitioners for emergency clinical work -it is impractical for state veterinarians to attend to emergencies as these can happen after working hours. GDARD should make emergency funds available to cover such expenses. State veterinarians will conduct regular routine herd health visits. Receive (Loan) cattle, retain them in safe custody and exercise good and acceptable standards of livestock management in their use and propagation to establish a Nucleus Herd; Remove/separate all non-descript/ non Nguni type bulls held by them from the introduced Nguni herd; Keep records of production; Undertake recommended sustainable resource management practices; and Return the predetermined number of off-springs of Nguni cattle/or rand equivalent to the trust as a repayment of the loaned cattle (Comply with the obligation to Pass on the Gift). The Project Manager The project manager is responsible for the day to day running of the project as per the Trust Mandate. The Job description and other performance management requirements will be drafted at a later stage. The project Manager will be appointed by the Gauteng Department of Agriculture and Rural Development and seconded to the Trust. The project manager will receive technical advisory support from the Technical Committee. 4.6 Other Stakeholders Other stakeholders who are keen on advancing the objectives of the Trust will be identified and their role in the project clearly defined. 7 5. Criteria for Participation in the project by interested farmers Applicants should be black as defined in the BBBEE Act; Applicants should provide proof of being South African citizens - residing in Gauteng Province (certified copy of ID and proof of residence); Applicants should show willingness to participate in the project and identify with its objectives; Applicants should have access to suitable land of a minimum of 500 ha, with sufficient grazing to accommodate the pre-determined number of cattle as per the carrying capacity of the land and the expansion of the herd; The farm must have natural resource management infrastructure, e.g. veld fire belts; The farm should also have physical security infrastructure and the applicant must be willing to implement prescribed animal identification and security measures like branding, daily kraaling etc. The farm must have basic infrastructure like perimeter and internal fences, suitable handling facilities, adequate water availability, dipping facilities, feeding equipment for supplements, camps, etc.; Applicants must be willing to participate in capacity building/training programmes; Record of participation in local farmers organisations/livestock associations will be an added advantage; Registered legal entities must show compliance with all laws, including tax; Applicants must be willing to sign a loan agreement with the Trust; Proof of the above criteria will be required. NB: A detailed assessment scorecard is attached as annexure 1. 6. The Application Process Internal consultations with departmental staff, management, extension officers will be done to make them aware of the project. A call for application will be publicised through the appropriate media. The project will use one or more of the following channels: Pamphlets; Departmental website; Radio Newspapers; and Public platforms by the MEC and departmental officials; 8 The application process similar to that from other Provinces implementing the project will be adopted and used. It entails the following steps: Step 1: Application to Participate in the Project Farmers will respond to the advert by completing and attaching all the required documents and submit their applications through post or hand delivery. Extension Services Officials will receive the applications, verify them for completeness and forward them to the project manager. Step 2: Processing of Applications Regional committees will then conduct screening. All applications will then be submitted to the technical committee. Any areas needing clarity are referred back to the district. Trustees will then hold interviews for applicants. Designated groups are targeted. It is also acceptable for groups to apply provided they have group constitutions and resolutions. Applicants who do not own their land should be in possession of valid lease contracts with a time span of at least 10 years????. In cases where these would expire before the 5-year period, DRDLR or lessor would be requested to extend such before the application can be processed further. Step 3: Physical Farm Infrastructure Assessments of Farmers (shortlisted only) Shortlisted candidates will be notified and appointments for physical assessment will be arranged. First assessment: Veld assessment will be done by the UP and GDARD (Technical Team). Assessment reports will be submitted to the Project Manager’s Office. Second assessment: Only farmers with positive veld assessments reports will be visited by the Project Manager and duly delegated Technical Committee members to inspect infrastructure, institutional issues and verifications. Step 4: Final Recommendation Evaluation and final recommendations to the Trust will be done by the Technical Committee based on all the assembled documents from applications and veld assessment reports. Individual applications which reached the interview phase will be presented to the committee by the Project Manager. Final recommendations submitted to the Board of Trustees for final interview and who will also make a FINAL DECISION on who should benefit. The Contracts and terms and conditions will be explained to the farmers before they sign them. 9 Step 5: Appointment of beneficiaries All public servants, IDC and UP employees and their families do not qualify to apply for participation in the project. Approved beneficiaries will be notified, GDARD regional offices and local municipalities notified and the cattle delivery dates communicated. Step 6: Delivery of cattle Before delivery of cattle a contract will be signed between the farmer(s) and the Trust representative while the GDARD officials at provincial level sign as Witnesses to the Trust and GDARD officials at regional level act as Witnesses to the Farmers. Step 7: Monitoring of the upkeep of the loaned cattle All the loaned cattle will be monitored for welfare, husbandry, herd health, reproduction, losses (theft, deaths,) 7. Funding GDARD will transfer an amount of R2 100 0000.00 which will be used by the IDC to lend to the Trust. The project will receive funding through a loan of R2 100 000.00 from IDC. An amount of R1 900 000.00 will be used to purchase Nguni Cattle and R200 000.00 will be supplied as a grant to the beneficiaries. The IDC will contribute an equivalent amount which will be used to purchase loan animals. The Trust can also receive money from other parties who are willing to contribute to the objectives of the project. It is expected that a participating farmer will be given 30 heifers and one bull. At an average cost of R11 500 per heifer and R15 000 per bull, it is expected that a total of 10 farmers will be assisted at a cost of R360 000 per farmer at the commencement of the project. The total number of Nguni Cattle that will be purchased is 300. 8. Loaning of Cattle to Participating Farmers The Trust will sign a loan agreement (annexure 2) with the participating farmers who will receive 30 pregnant Nguni heifers and 1 bull, place them in their farms and practice good animal husbandry. Participating farmers will be expected to return the same number of loaned cattle or rand equivalent to the Gauteng Nguni Development Trust within a 5-year period. Grant animals will not be returned. The returned animals should be the off-springs of the loaned cattle. Nerpo (2011) classified the emergent red meat sector as follows: Commercially oriented (communal land) - Have at least 25 cattle and sell regularly; and Subsistence oriented - Sell 1 - 3 animals per year depending on cash needs. At an estimated carrying capacity of 8.5 ha per Large Stock Unit, for the initial loaned livestock, a total of 1 275 ha (155 LSU x 8.5 ha) will be required. A calving rate of 82% means that there will be an additional land requirement for 123 calves, bringing the total land 10 requirement to 2 363 ha (278 LSU x 8.5 ha). A minimum of 473 ha per farmer is therefore required for a farmer to participate in this project. 9. Constraints 9.1 Access to land Access to land in Gauteng is a major constraint for production of cattle under extensive grazing system. The price of land is high as agricultural land competes against industrial and residential developments. Access can also be defined as land demarcated by a municipality and handed to an aspiring participant, who will ensure that the land is adequately fenced off to prevent the mixing of the cattle with those belonging to other owners. 9.2 Access to funding Access to funding for emerging farmers is another constraint that is related to land ownership. However, various Development Financial Institutions (DFIs) are developing products that do not rely on land as collateral. 9.3 Reproductive diseases “A recent study was conducted in which two hundred and thirty-nine cattle from Gauteng Province in South Africa were tested for various pathogens causing reproductive diseases including bovine viral diarrhoea/mucosal disease (BVD/MD) virus, infectious bovine rhinotracheitis/infectious pustular vulvovaginitis (IBR/IPV) virus, Neospora caninum and Brucella abortus using various tests. For BVD/MD virus, 49.37% tested positive, 74.47% for IBR/IPV virus, 8.96% for Neospora caninum and 3.8% for Brucella abortus. A high seroprevalence of antibodies to both BVD/MD virus and IBR/IPV virus was evident. One hundred and forty-three bulls were tested for Campylobacter fetus and Trichomonosis fetus, and a low prevalence of 1.4% and 2.1% respectively was found in this study.”(Njiro SM, et al, 2011) The threat of reproductive diseases is therefore a reality and a risk which should be proactively mitigated in order to ensure the success of the project. Participation in disease control schemes such the Bovine Brucellosis control scheme should be a pre-requisite. This would include the Bovine Tuberculosis Scheme, even if it’s not a reproductive disease. 9.4 Controlled diseases Gauteng has been in a fortunate position in that a number of ‘controlled diseases’ as defined under the Animal Diseases Act (Act 35 of 1984), have not been diagnosed or are not endemic. Examples of such diseases are Foot-and-Mouth Disease (FMD, Corridor Disease (CD), Trypanosomiasis (Nagana), etc. Diseases such as Malignant Catarrhal Fever (MCF) have been diagnosed owing to the keeping of cattle in close proximity to Blue Wildebeest. Among others, one of the risk mitigating strategies would have to be practicing due diligence in ensuring that animals are not sourced from infected zones as described in the Act. Secondly, it would be in the interest of the success of the project to ensure that the targeted participating farms are not in close proximity to wildlife farms. 9.5 Other important diseases 11 In addition to the above, the participating farmers would have to ensure that their livestock is vaccinated against other common/important diseases such as Lumpy Skin Disease (LSD), Blackquarter, Botulism, Anthrax, Pasteurellosis, etc. 10. Risks and Mitigation The following risks are identified: Risk Impact Likely hood Mitigation (low/medium/high) Low/medium/high Default by High Medium Good farmers screening and reference checks Bad Medium Medium Monitoring animal and husbandry extension Diseases High Medium Animal health outbreaks program (refer above) Stock theft 11. High High Risk Owner Trust Farmer Farmer Community Farmer policing and SAPS Insurance, branding, good and trustworthy stockmanship Project Duration The project will be piloted for 5 years after which a review of the pilot phase will be done. The results of the pilot phase will inform the full scale roll-out of the Gauteng IDC Nguni Cattle Development Trust program in Gauteng. 12 12. Work Breakdown Structure Activity Duration Resources No of days Begin End Registration of the Trust Signing of loan agreements Training of Trustees Drafting of Concept Document Development of a policy framework Opening of Trust Bank account October 2012 October December 2012 October 1 October October 1 26 Sep 12 28 Sep 12 2 Budget 1 February 2013 28 February 2013 1 1000 Meeting with Project Manager from Limpopo 15 January 2013 2012 1 0 Stakeholder consultation 15 January 2013 30 Steering Committee Launch of the Project Appointment of a Project Manager To be advised 1 January 2013 28 February 2013 To be advised 31 March 2013 1 To be advised Securing of a proper holding facility for animals that would have been bought before they are distributed Advertising to invite beneficiaries Processing of applications Verification of 1 March 2013 31 March 2013 1 February 2013 28 February 2013 31 March 28 Project manager 31 31 31 Project manager Project 300 0 0 26 October 1 March 2013 1 March manpower Responsible person 0 March 80 465 919 13 Mr Tommy Mohajane Mr F Mavhandu and Dr Dietana Nemudzivhadi Mr Tommy Mohajane Mr F Mavhandu and Steering Comm Ms Ncumisa Mcata Mr F Mavhandu and Dr Nemudzivhadi and other Trustees Steering Committee Mr Mike Mosifane and Dr Nemudzivhadi Project manager (to be appointed by GDARD and seconded to the Trust) beneficiaries Signing of loan agreements with beneficiaries Purchase of Nguni Cattle 2013 1 March 2013 2013 31 March 2013 1 May 2013 31 2012 July Processing 1 May 2013 July 92 150 000 Delivery of cattle to successful applicants Monitoring and evaluation 1 May 2013 31 2013 31 2013 July 92 50 000 13 manager Project Manager Trust 31 92 1 900 000 Continuous Project Manager Trustees Project Manager Project Manager and and Project Manager Consultations Consultations will be held with various stakeholders including the following: AFASA NAFU WARD YARD AGRI GAUTENG Other livestock associations 14. Key Success Factors 14.1 Sourcing and selection of animals The Nguni breed is known for its tendency to have hereditary defects. It is therefore of utmost importance to ensure that cattle are sourced from the right parent stock. It is strongly advised that cattle should not be sourced privately without obtaining clearance from the Highveld Nguni Club. Animals can also be sourced from sales/auctions which are done under the auspices of the Nguni Society. Stock is classified under the following categories: Appendix A: Not much information is available on the parents. Inspections are only done on the phenotype but not progeny. Appendix B: Information is available on both parents Appendix SP: These are full stud animals. Information can be obtained to five generations. Such information is available at the stud society 14 Bulls It is desirable for bulls to be of superior genetic quality. This will in turn determine the quality of progeny for future breeding. Breeding soundness tests should be conducted and certified by a veterinarian contracted to GDARD Heifers Only pregnant heifers will be sourced for the project subject to complying with any of the above criteria. These will also have to be certified by a contracted veterinarian. 14.2 Biosecurity This section should be read in conjunction with section 9.3 to 9.5 above. Experts caution that the Nguni breed is very susceptible to European Redwater and therefore all the necessary precautions need to be taken to prevent this disease. The disease is transmitted by ticks and has been known to almost wipe out entire herds. It has often been associated with the movement of cattle from one area to another. The implications therefore are that animals should be treated against ticks as well as vaccinated prior for this disease and others such as heartwater. The vaccine for European Redwater is fairly mild and can thus be administered to pregnant animals with minimum risk of losses. For this reason all newly purchased animals will be held in a predetermined facility for a set period before being distributed to participants. The same principle will apply to progeny returned from participants at the end of the 5-year period. 14.3 Breeding management There are different approaches to breeding management in a herd kept under extensive conditions. The following options are available: Bulls running with cows and heifers throughout the year. The advantage of this system is that it does not require intensive management. Calves are born throughout the year and this minimizes mortalities associated with winter breeding season. It has been shown that Nguni cows do tend to synchronize themselves with the season, calving in spring. This has been our experience in most of the 47 herds we have distributed (reference). Bulls running with cows and heifers during breeding season: The advantage of this system is that it ensures that calves are born at a set calving season, which enables easy planning and management. The disadvantage is that the calving season would often be during the winter season. In a province such as Gauteng which normally experiences severe winters, this could contribute to a high incidence of mortalities if the timing of the breeding is miscalculated. Artificial insemination and Embryo transfer: These two methods would require intensive management and therefore not recommended for farmers where good management systems have not been established. Nguni cattle are known to not give a lot of embryos for ET and success rate is around 50% (reference). In cases where cross breeding is practiced, it is recommended to rather use a nguni female with another breed bull. The cows are low maintenance and produce normal 15 size calves through their inherent ability to limit the calf size. The value lies in the females rather than the males. The recommended approach for this project will be to allow bull to run with the heifers all year round. Bull management All bulls entering the projects should undergo breeding soundness examination and certification by an experienced veterinarian. They should also be pre-tested for reproductive conditions such as Trichomoniasis. Heifer management Only pregnant heifers should be selected and should also be examined and certified by a veterinarian. Calf management The following statistics should provide acceptable livestock management guidelines: 14.4 Calf mortalities should be around 5% from birth till weaning Acceptable stillborn rate is around 1% Bull calves are usually marketed at 8-9 months. There is no need to castrate Heifers can be bred at 17-18 months, under good management. The ideal age however is two years. They should calve at 30-36 months of age. Training Participating farmers will need to undergo appropriate training on the basics of beef cattle management which should be managed by UP 14.5 General management Participating farmers will be required to either manage the farm on a full time basis or appoint a full time manager who will be authorised to make decisions 14.6 Appointment of a full time project manager (PM) The creation of the above post is paramount to the success of the project. Experience from other provinces has proven that this is an absolute necessity. The incumbent should be suitably qualified with technical skills required to implement the project. This individual will play the following role: The incumbent will be responsible for sourcing of animals from auctions or other suitable sources. A technical committee (field officials) should also be appointed for each region and should work directly with the PM. This is the engine of the project. Each region should have representatives in the committee. They visit beneficiaries regularly and provide a report of their findings. The board will visit each project annually. 16 15. Recommendation It is recommended that the HOD approves the Concept Document for the Gauteng IDC Nguni Cattle Recommendation approved/ approved with amendments/ not approved Ms. S. Sekgobela Head of Department Date: 17 ANNEXURE 1: FARMER SELECTION CRITERIA Criteria Scores 1 1. LAND Suitable location Available Grazing Size of Grazing Land Availability of water 2. Natural Resource Management Infrastructure Landcare and veld management awareness Veld fire belts availability and condition Committed and adhere to sustainable resource management practices 3. Farm Infrastructure Condition of Boundary Fence Condition Internal Fences Water Reservoirs/ Dams Water reticulation Condition of Feeding equipment (for supplements) Condition of drinking points Condition of Dipping facilities Condition of Stock Handling Facilities (Crush pens & kraals) Sheds / Storage facilities 4. Farmer Development Capacity 18 2 3 4 5 Belong or willing to affiliate to a Commodity Organisation Participate or willingness to participate in a Training Programme Participate in a Mentorship Programme Received or willing to receive Enterprise Management training Experience in Cattle Production (Disease treatment, 5. Institutional Arrangements Affiliated to a Farmer Organisation Affiliated to a Cattle Association Organisation has Constitution and/ or Bylaws Collaborate with other Farming Organisations/ Commodity Associations Daily Management of Cattle * Cattle Owners * Herders * Kids 6. Security 6.1. Physical / Managerial Registered Brand Mark Daily kraaling Secured Camps Daily herding 6.2. Legal Registered Business / Legal Entity Registered Tax Payer. 19 Registered for VAT Bank Account Business Bank Balance Willingness and ability to enter into a contract Farmers should demonstrate willingness to:1. Participate in the programme 2. Belong to a commodity organization/ an organized farming structure 3. Nominate and decide on animals recipients 4. Participate in training programmes 5. Participate in mentorship programmes 6. Provide security to animals, thus include: use of Trust Brand Mark for identification purpose, provide herd minders and secure overnight camps and kraals. 7. Avail herd data as and whenever required 8. Avail their herds for continuous health inspection 9. Subject their herd(s) for Cow Cleaning obligation as prescribed by the Funder 10. Provide care and maintenance of the animals 11. Practice “Pass on the Gift” notion as prescribed in the agreement with the Funder 12. Committed and adhere to sustainable resource management practices. 13. Development and maintenance of farm infrastructure 14. Agree not to dispose of, pledge or in any way part with the possession of the Nucleus Herd, or any part of it prior to the Passing of the Gift. Source: Limpopo IDC Nguni Cattle Trust (2012) RATINGS: The ratings from 1 to 5 designate POOR/ Not Existing to EXELLENT 20 ANNEXURE 2: LOAN AGREEMENT BETWEEN GAUTENG IDC NGUNI CATTLE DEVELOPMENT TRUST 21