GROWTH AND DEVELOPMENT MODEL FOR THE
SMALLHOLDER SECTOR
SMALLHOLDER DEVELOPMENT PRODUCERS
ENGAGEMENT SESSION
15 MAY 2014
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SETTING THE SCENE
 Growth = refers to the numerical increase in the number of smallholder
producers farming sustainably.
 Development = refers to the process of maturing and progression of the
smallholder producers to become competitive and participate in all
economic activities of the agriculture sector.
 Parameter = refers to a measurable factor that can help in defining a
particular situation. A parameter is an important element to consider in
evaluation or comprehension of an event, project, or situation
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POLICY FRAMEWORK
• CONSTIT
UTION
• New
Growth
Path
Strategic
Plan for
Small
Holder
Support
Fets
a
Tlala
Agricultur
al Policy
Action
Plan
Smallholder
Developme
nt Norms
and
Standards
• National
Develop
ment
Plan
• Food
Security
Policy
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NDP (National Development Plan)
• Provides a broad vision for overall economic & social
development which integrates economic, demographic,
social, environmental & governance elements into a
coherent framework.
• Increasing of smallholder producers to 300 000
• Talks about vision 2030
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NDP (National Development Plan)
• The National Development Plan (NDP) identified
agriculture and rural development among the key
pillars for the creation of employment, economic
growth and poverty reduction in South Africa.
• Job creation and agricultural productivity are needed to
address food security at household level in rural areas.
• Smallholder producers are placed at the center of
achieving the national goals as they have potential in
reducing poverty, food insecurity and stimulating
economic development in the country.
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NGP (New Growth Path)
• Prioritises employment creation & equity while doing more
to facilitate growth .
• It is intended at creating a more agile & responsive
developmental state and to also mobilise economic
stakeholders around common national aims.
• Also talks to expanding to 300 000
• And it is vision 2020
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OUTCOMES
• Outcome 4 – Job creation
• Outcome 7 – Vibrant, equitable food security for all
• Increasing the number of smallholder producers
• Agrarian reform
• Food security
• Outcome 10- Conservation of natural resources
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WHAT IS THE
RESPONSES
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SPSS (STARATEGIC PLAN FOR
SMALLHOLDER SUPPORT
• Smallholder producers are defined as those producers who “produce food for
home consumption, as well as sell surplus produce to the market”, meaning
that earning an income is a conscious objective, as distinct from
‘‘subsistence/resource-poor producers’’ who produce mainly or entirely for
own consumption, as well as from ‘‘commercial producers’’ who are defined
as large scale.
• The reason for introducing an initiative to support smallholders is that there is
evidence to suggest that this is an area in which there remains much
untapped potential to create economic opportunities, especially in rural areas
where poverty is concentrated.
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SPSS (STARATEGIC PLAN FOR
SMALLHOLDER SUPPORT
• The Strategic Plan for Smallholder Support (SPSS) aims to coordinate,
align and avail all programmes that target support and development of
smallholder producers towards achieving optimum utilisation of resources for
sustained food security and economic returns.
• The SPSS six main mechanisms or approaches that it pursues in parallel in
order to improve support to the smallholder sector:
• i) improved planning and investment coordination;
• ii) Massifying investment in skills;
• iii) initiating a stronger and more coherent approach to partnerships;
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SPSS (STARATEGIC PLAN FOR
SMALLHOLDER SUPPORT
• iv) revising and refining infrastructure and mechanisation support
programmes;
• v) scaling-up scheme-based interventions; and
• vi) phasing in and expanding systemic interventions.
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APAP (Agricultural Policy Action
Plan)
 APAP seen as that platform, a ‘consensus’ document and process
between the sector, civil society, labour and government.
An important element of APAP, is its capacity to properly
diagnose the constraints faced, and identify required
interventions.
 In this way APAP must be able determine the policy requirements and
practical interventions to develop rural spaces and the sector, within the
context of ‘employment-driven and equitable economic growth’.
 APAP thus seeks to provide both a long-term vision, and focus
interventions on a 5-year rolling schedule, to be updated annually.
The elements underpinning of APAP speaks to:




Equitable growth and competitiveness
Equity and transformation
Environmental sustainability
Governance
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2. Growth & Development Model for SHD Sector
Stakeholders/ Role Players
- PDA
- DRDLR
- Commodity Groups
- Research Institutions
- Funding Institutions
- Goverment Depart
- Parastatals
- Smallholder Producers
- Commercial Farmers
- Farmer Organizations
INCREASING NUMBER OF SMALLHOLDER
PRODUCERS
- Ensure provision of support to SHP
- Grow the number of smallholder producers
Targets
Baseline of 200 000
50 000 by 2014 – Outcome 7 output
50 000 by 2020 – New Growth Path output
Total of 300 000 SHP by 2020
Key Deliverables
1. Increased No of
producers
- Supporting
documents
- Assess the SHP
sector
- Improve support to
subsistence
producers
-M&E
2. Improved Support to SHP
- Strengthen relations with
Key Stakeholders
- Identify implementation
challenges (review
programmes)
- Enforce remedial activities
or strategies
- Provide Comprehensive
support
-M&E
3. Incr. Sustainable
production
- Provision of
suitable farmland
- Comprehensive
support
- Training on
natural resource
management
-M&E
4. Incr. Job creation
- Comprehensive
support
- Strengthen relations
with stakeholders
- Strengthen relations
with SHP
- Encourage
participation in value
adding activities
-M&E
1. Outputs
Policy
- SPSS
- SH Development Policy
Institutional
- SDWG
- NSPES
- Project Management Unit
2. Indicators
- No of subsistence producers graduating to
smallholder
- Database of 50 000 baseline
- No. of producers receiving comprehensive
support
- No of SHP accessing land
- Incr in no. of value adding activities
- Incr in number of graduates
- Increase in PPP initiatives
- Increase in accessing of formal markets
- Increased yield and improved quality
- Information Manage System
5. GDP contribution
- Comprehensive
support
- Strengthen relations
with stakeholders
- Strengthen relations
with SHP
- Encourage
participation in value
adding activities
-M&E
6. Increased value
chain participation
- Comprehensive
support
- Strengthen relations
with stakeholders
- Identify opportunities
or niches
-M&E
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3.
Model for Growing a Sustainable Smallholder Sector
Institutional
Arrangements
Provision of
adequate support
•
Stakeholder
Involvement and
Roles
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4.
Parameters for the growth and development of
smallholder producers
Output
Activity
Parameters
1. Growth of the smallholder
- Increasing the number of smallholder
- Number of “subsistence” producers
producers
producers
progressing to smallholder
(i.e. gradual progression from
subsistence to smallholder and startup producers accessing land for
production)
- Smallholder producers active in
farming
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Parameters for the growth and development of smallholder producers,
continued
Output
Activity
Parameters
2. Development of the
smallholder sector
2.1 Increasing job creation
- Farm workers employed permanently
- Farm workers registered with the Department of
Labour
- Farm workers earning a decent minimum wage
2.2 Increasing and improving food
- Training received on aspects of production
production
- Hectares under production
- Acceptable quantity marketed
- Acceptable quality marketed (90%)
- Environmental friendly farming practiced
- Farming experience gained and knowledge
acquired
2.3 Increasing participation in value adding - Training on SA-Gap certification or related
activities
training
- Accessing formal markets
- Value adding activities taking part in
- Access to and utilization of agro-processing
infrastructure
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Parameters for the growth and development of smallholder producers,
continued
Output
Activity
Parameters
2.4 Increasing contribution to the GDP
- Accessing formal markets
- Limited reliance on government support
- Participation in value adding activities
- Project/ Company registered with DTI (paying
necessary taxes)
- Company registered with the Stock Exchange
2.5 Increasing participation in social
- Produce donated (WFP, schools, crèche, etc)
responsibility activities
- Experiential training provided
2.6 Improving provision of support
- Comprehensive support received
- Conditional support provided (exit strategy,
signed agreement on availing project’s audited
books and other required documentation)
-
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WHAT ARE THE FINDINGS
 To grow a sustainable smallholder sector would require the coordination of stakeholders
and role players, the availing of adequate resources and creation of an enabling environment
by government.
 This entails that the legislative (policy) environment regarding smallholder is sound and
implementable and other necessary institutional arrangements (i.e. systems and processes)
are also in place to plan and manage activities efficiently and effectively.
 Although the factors for the sustainable growth and development of the sector, with focus
being on the smallholder producer, are paramount, identifying or setting up parameters relating
to the growth and development of the smallholder producers is equally vital.
 Setting up of smallholder producer growth and development parameters is critical to ensure
that the growth and development can be tracked, measured and evaluated.
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KEY REFLECTIONS

How can we improve provision of support to the different categories (i.e. SP1 –
SP3) of smallholder producers. What are the parameters (how do we know
someone is sufficiently supported)?
- Extra support to top up CASP, Ilima Letsema, etc to support the smallholder
producer required?
- How do we ensure (what are the steps needed to ensure) efficiency and
effectiveness of the support for the growth of the sector (e.g. conditional
support – producers must be supported on condition(s), minimum criteria for
SHP, what is the contribution of the SHPs themselves etc)
How can we increase the number and quality of smallholder producers?
Number – e.g. 2020 target; Quality - progressive and not stagnant
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KEY REFLECTIONS

How can we improve participation of the smallholder producers in value adding
activities and also increase contribution to the Gross Domestic Product (GDP).
What are the parameters which should define each phase? The role of
government and of the SHP (i.e. how do we know we have achieved)?
e.g. Parameter for quality of smallholder producer – relevant farming
experience and knowledge
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KEY REFLECTIONS

How can we improve SHP’s sustainable production – e.g. CA, Organic farming?
Still maintain acceptable yields?
How do the SHP see themselves creating more job opportunities and maintain
those opportunities?
A road map/step by step route (with phases – phasing out non sustainable
production methods) that will promote sustainable production to increase job
opportunities.
Creation of job opportunities? What are the parameters
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