Minister of Agriculture, Forestry and Fisheries Budget speech & responses by ANC, DA & IFP

Minister of Agriculture, Forestry and Fisheries, Mr Senzeni Zokwana gave his Budget Vote Speech on 21 April 2016.

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Honourable Chairperson
Honourable Ministers and Deputy Ministers
Chairperson and Members of the Portfolio Committee on Agriculture, Forestry and Fisheries
MECs of Agriculture
Members of Parliament
Distinguished guests
Ladies and gentlemen

I am delighted to be delivering this budget vote speech during this very important month in the history of our country. You will recall this time 22 years ago, the majority of us were excited about the prospect of voting for the very first time for a democratic South Africa.

The democracy we ushered in gave birth to our Constitution which is built on a culture of respect for human rights.  Section 27(1)(b) of the Constitution of the Republic of South Africa states that, “everyone has the right to have access to sufficient food and water.” Our mandate is to ensure food security and agrarian transformation in the agricultural sector through innovative, inclusive and sustainable policies and programmes.

In his 2016 State of the Nation Address (SoNA), His Excellency President Jacob Zuma reiterated the centrality of the Nine-Point Plan in fast-tracking economic growth.

Prominent in the plan, is the Revitilisation of the Agriculture and Agro-processing Value Chain (RAAVC) and growing the Oceans economy. 

This Budget Vote Speech will reflect on our mandate and our work over the past year. We will report on progress made as outlined in our Strategic Plan and the Annual Performance Plan of the 2015/16 to 2019/20 Medium Term Strategic Framework (MTSF) period.

 Our vision for the Agriculture, Forestry and Fisheries sectors, as catalysts for radical socio-economic transformation, is food security for all, creation of one million jobs by 2030 and significantly increasing the contribution of these sectors to the GDP.

However there are distinct challenges facing the sector and diverse opportunities that the sector can offer. We continue to face the challenges of high input costs and the continued dominance of large players in the sector. This may continue to limit our achievements in this environment.

Accordingly, as part of our new strategic focus, focus will be given to interventions to reduce input costs ranging from local manufacturing of agricultural machinery and fertilizers to adopting alternative cultivating methods.

As our success in delivering on our mandate and the new strategic priorities will be measured in terms of economic growth, job creation and food security, we would like to reflect on a few achievements in these areas over the past year.

The gross value of the agriculture sector has shrunk by 12.5% in the third quarter of 2015. However, there have been positive signs on the other indicators within the sector.

During the third quarter of 2015, the number of Smallholders increased by 743 and the agro-processing sales grew by 8.4%. Comparatively, jobs in the sector increased by 211 000 in the third quarter of 2015 as compared to the same period in 2014.

As part of our resolve to bring underutilised lands into production, in the 2014/15 financial year, 136 253  hectares of land were put under production of maize, wheat, beans, vegetables and fruits among others, through CASP and Ilima/letsema. 

We are targeting to put 150 000 hectaresfor production through CASP and Ilima/Letsema in 2016/17 and R880 million is set aside for this purpose.

Effective public-private partnerships are vital in achieving our goal of bringing 1 million hectares of underutilised land into production.

Chairperson, I am pleased to announce that in all three sectors, agriculture, forestry and fisheries exports value has increased and South Africa remains in a positive trade balance. The value of agriculture, forestry and fisheries exports increased from

R135 billion in 2014 to R144 billion in 2015. In the same period, our exports into other African countries increased from R59 billion to R62 billion and into Asia from R34, 5 billion to R37,1 billion. The conclusion of the EU Economic Partnership Agreement has provided increased quota access for a number of existing and new products such as wine and sugar.

The Department will continue to focus on increasing intra-African trade and other global trade opportunities. The largest sub-sector in the agriculture, forestry and fisheries’ export basket in 2015, based on value, was fruit and nuts.  The highest growth in the export of specific product within the agriculture, forestry and fisheries sector was paper and paper products with an increase of 94%.

AGOA is a very familiar term and we are all aware of the tremendous efforts made by Team South Africa to ensure that we continue to benefit from the opportunities arising from this Trade Act of the US Congress. We have engaged those sectors which will be impacted upon through new access of US products to ensure that the impact is minimised.

We have continued to open new markets in 2014/15. A notable achievement in the Indonesian government’s recognition of the competence of our food safety control measures. This comes after a protracted negotiation process between the technical teams of the two countries, which have eventually led to the opening of the Indonesian market to South African exporters. 

This recognition was granted in respect of 15 exported agricultural commodities including deciduous fruit, citrus fruit, grapes and nuts. The South African exporters will be allowed to use the Port of Jarkata, Tanjung Priok Port, which is closer to the main Jarkata market thus reducing transport costs and preventing quality loss.

This recognition will be in place for two years, beginning from the 11th April 2016 to the 10th April 2018 and will offer the necessary guarantees in terms of market access for the listed commodities.

In safeguarding our Biodiversity the ARC has developed a new vaccine against Heartwater that will be made available to farmers after evaluating for safety and registration by the authorities. The availability of a Heartwater vaccine will boost mohair production as Angora goats are the most susceptible to animal diseases. Development of new vaccines will play a vital role in expanding the number of successful livestock farmers resulting in reduced losses and increase in revenue for the farmers

The Department has prioritised youth development and empowerment through various programmes, including partnerships with institutions of higher learning both domestically and abroad.  For example, we currently   have 76 students in post graduate studies at three universities in China. We need to ensure that these students get trained on the rare skills needed in our country.

We have initiated the Compulsory Community Service (CCS) for newly qualified Vets. The first group of 125 has been strategically placed to service resource poor farmers in the rural and under-serviced areas of South Africa.

The CCS is aimed at promoting primary animal health care in rural areas and at improving access to veterinary services.

 CCS service for young professionals is a government policy which started in 1998 when the medical doctors were deployed to rural areas. The deployment of vets entrenches our commitment towards community service. This programme will also incorporate the training of veterinary technicians or paravets.

During 2015/16, the Department finalised FRAP2013 appeals on all the 8 fishing sectors. Nine sector specific policies have been developed and finalised, leading to a call for applications to apply for FRAP2016 fishing rights. The distribution of application forms took place through-out the country. The Department received 5 597 application forms. The allocations will be finalised in the next coming months.

To fast-track the growth of the Aquaculture sector an amount of R338 million in private sector investment has been committed in the aquaculture sector to supplement the R106 million Government investments. In the nine aquaculture farms that are already in production, 521 jobs have been created while a further 335 jobs are envisaged. These nine aquaculture farms are located within the Eastern Cape, KZN, Northern Cape and Western Cape. They produce Kob, Oysters, Abalone and Trout.

In the efforts to protect our Ocean space and the living resources, the department has during the 2015/16 financial year conducted several successful enforcement operations. The department continued to provide employment to 60 Military Veterans who work to prevent illegal harvesting along the Western Cape Coastline in the Overberg area.

It is the intention of the department to extend this job creation initiative to the other 3 coastal provinces during the 2016/17 financial year which will create an estimated 250 jobs. The protection of the marine resources from illegal harvesting results in sufficient fish stocks for allocation to South Africans thus contributing towards food security and revenue generation.

His Excellency President Jacob Zuma signed into law the Amended Marine Living Resources Act on 24 February 2016. Small scale fishing is now for the first time in the history of our country recognised as a fishing sector. The entire legal framework is now in place to implement the small scale fishing sector in the four coastal provinces.

During the 2016/17 financial year the process of fisher registration and verification has already commenced. This process will lead to the allocation of the fishing rights to community cooperatives.

South Africa, under the leadership of the Department, has acceded to the Indian Ocean Tuna Commission (IOTC) and the Commission for the Conservation of Southern Bluefin Tuna (CCSBT) thereby allowing SA greater influence in negotiating for increased Tuna quota allocations and access.

The associated benefits of fully acceding to these regional fisheries management organisations has resulted in the immediate increase in the allocation of Southern Bluefin Tuna from 40 to 150 tons. This has increased the sector’s income from approximately R24million to more than R100 million.

We have consistently maintained our Foot and Mouth Disease (FMD) free status. However, in December 2015 we had an outbreak in the Matiane community, in the Thulamela local municipality of the Vhembe District. This outbreak occurred within an FMD protected zone of South Africa, where vaccination for FMD is routinely conducted.

While this outbreak did not affect our FMD status, we continued with intensified control measures in this area to deal with the outbreak and to maintain our status.

We will continue to provide feed to livestock in the protected FMD zones in KwaZulu-Natal, Limpopo and Mpumalanga to ensure that the movement of the livestock in these areas is restricted particularly during this drought period. We will continue to seek additional funding for the construction of the new FMD vaccine facility at the ARC.

Effective public-private technical partnership forums are vital in managing detections of quarantine pests and diseases. With regard to early detection and rapid response actions for quarantine pests, the Department continues to work closely with South African Industries. Fruit flies are among the most destructive fruit pests, threatening production levels and food security as well as product quality and export programmes.

The national surveillance programme for quarantine fruit flies is also ongoing. This "early warning and rapid response" system has successfully detected several incursions of a pest now known as the Oriental Fruit fly. So far, South Africa's fruit export markets have been safeguarded through effective regulatory measures.

The effects of climate change have been devastating to our sector. We have recorded severely reduced rainfall with extremely high temperatures causing vulnerability of our sector in the major staple food growing areas.

Honourable Members, I am on record that my department will lead the implementation of the agricultural mitigation and adaptation measures to ensure that the sector copes with climate change effects.  I call on the farming community to embrace the climate smart agriculture practices.

The Department allocated R381 million towards drought relief following the reprioritisation of the Comprehensive Agricultural Support Programme (CASP) and Ilima/Letsema funds. Our focus is on the provision of animal feed, drilling and equipping of boreholes for smallholder and subsistence farmers.

Working with the Provincial departments of agriculture we have drilled 224 boreholes, 78 of which have been successfully completed. A total of about 320 000 bags of animal feed were bought and distributed to the affected farmers. The Land Bank has also made available an amount of R400 million for concessional loans to commercial farmers affected by the drought.

My colleague Minister Nkwinti will inform this house about other initiatives his department has implemented to help drought affected farmers.  Government’s support to agriculture during this drought period is over R1 billion.

Through the Agricultural Research Council (ARC), we have also introduced a drought tolerant maize seed. In the financial year 2014/15 the ARC distributed 10 000 seed packs were distributed to smallholder farmers in various provinces.

Results indicated that farmers who received and planted the maize cultivar experienced on average 50% increased yields when compared to conventional varieties available on the market.  We now need to ensure that seed is available for farmers.

In 2015/16, provinces have achieved 43% (52 013 ha) of the targeted 120 000 ha under Fetsa Tlala production season due to drought. The impact of drought has adversely affected the basic food basket. The impact of global economic volatility, which saw the Rand decline by almost 40% added further strain on the purchasing power of people particularly the indigent households. These high food prices negatively impact poor households and the situation shouldn’t be unduly exploited for maximising profits.  

To date we have imported 1,732 million tons yellow maize. We have imported 72 000 tons of white maize. We have 2 weeks left in the current marketing season.  This is almost exactly what we anticipated in December 2015. For the next season 1 May 2016 to 31 April 2017 we still anticipate imports of 4.3 million tons 2.4 million yellow and 1.9 million white.

2016/17 budget

Honourable Chairperson, the total value of Budget Vote 24 for 2016/17 is R6, 333 billion, of which R3, 292 billion is ring-fenced for transfers of conditional and parliamentary grants:

In terms of Conditional Grants:

R1, 642 billion has been allocated to the Comprehensive Agricultural Support Programme (CASP);

R491, 4 million to Ilima/Letsema; and

R69, 3 million to the LandCare Programme.

In terms of Parliamentary Grants

R241, 8 million has been allocated to the Marine Living Resources Fund;

R813, 0 million to the Agricultural Research Council; and

R35, 0 million to the National Agricultural Marketing Council.

R5.935 million to Ncera farm

In addition to that R 788, 1 million of the budget has been allocated to Administration. This division of our budget reflects the alignment of our budget to strategic priorities.

For the 2016/17 financial year CASP has received an allocation of R1, 642billion of which R1, 148 billion will directly support farmers with infrastructure, production inputs, training and capacity building that includes the South African Good Agricultural Practices (SA GAP) certification. R346 million will go towards strengthening extension services, R70.8 million will be used to revitalize colleges of agriculture and R76.6 million will go towards recovery work of flood disasters of 2012.

DAFF through CASP will play a crucial role in supporting smallholder producers that will supply their produce to the Agri-parks across the country.

The Department is the custodian of SA forest resources which cover over 40 million hectares of the country’s land surface. An amount of R945 .562 million from the Department’s budget has been allocated to forestry and natural resources management.

Together with the DTI, we plan to link small holder entrepreneurs with the mainstream market through the Supplier Development Programme, the Preferential Procurement Policy Framework Act and other related interventions aimed at linking small and medium size enterprises with the markets.

The Department further acknowledges the role and contribution of women and people with disabilities in food security, job creation, economic growth and poverty alleviation in the sectors. These women participate in the Female Entrepreneur Awards (FEA) wherein winners are awarded with prize money for exclusive use in their enterprise activities. We are going to work with different commodity associations, NGO’s, Private Sector and Media in the nomination and selection process for this year’s awards.

We also successfully hosted several international conferences including World Forestry Congress (WFC), Global Conference on Agricultural Research and Development (GCARD) and we continue to participate in international multilateral platforms (like COP 21, FAO, OECD, etc) to ensure that SA is part of and influences strategies and policies aimed at enhancing our sectors.

Over the past year, the Department has focused on the legislative review of several pieces of legislation, some of which have already been deliberated by the Portfolio Committee on Agriculture, Forestry and Fisheries and will further be tabled for consideration by Parliament.  These Bills aim to strengthen intellectual property rights and further create an enabling environment for job creation and investments.

More importantly, I have instructed the Department to prioritise and fast-track the Preservation and Development of Agricultural Land  Framework (PDALF) Bill for Cabinet consideration, as we are increasingly losing arable land to mining and human settlements, which may pose a serious threat to food security in the near future..

It gives me pleasure to also announce that in the past financial year we filled all the previously vacant positions at the level of deputy director-general.  The process to fill the vacant position of director-general is well underway and our plan is to conclude it in the next month or two, thereby bringing much needed stability in the Department and to our operations.  Other levels at senior management are receiving similar attention.

The key to our success is in the public/private partnerships and other countries which we continue to work on. Our partnership with traditional leadership and private companies will see us bringing into production more hectares in the current financial year.

For example, the Department together with the Eastern Cape Department of Rural Development and Agrarian Reform has invested R40 million of CASP since 2006 to establish 300 hectares of Macadamia Nuts in Ncera area.

This is a private, public partnership with landowners, the community and private partners. 180 ha of Macadamia Nuts have been planted with 80 ha harvested for export market, creating 110 permanent jobs. The project is estimated to be completed by 2017/18 with 300 sustainable jobs created. This project has turned the tide of unemployment, unskilled communities and poverty. It created a vibrant society with better prospects for the future.

This macadamia development programme will be further expanded in the Eastern Cape, KwaZulu-Natal, Mpumalanga and Limpopo, focusing on growing the participation of black producers in this industry.

During the course of this financial year I will be making an announcement on the public private partnerships that have or will be entered into to increase production and significantly contribute to our goal of one million hectares in production.

In our recent visit to Denmark we have concluded discussions with the Denmark government on a R1 billion aquaculture investment in Paternoster in the Western Cape for the production of Salmon.

Transformation remains the biggest challenge in the sector. We commend industry associations like the Citrus industry for the establishment of Citrus Growers Development Company, which will focus on the issue of transformation, and we call on other industries to do likewise.

In the words of Brenda Schoepp, a Canadian farmer who is also a motivational speaker, I quote “My father used to say that once in your life you need a doctor, a lawyer, a policeman and a preacher but every day three times a day you need a farmer”.

As government, we are committed to working together with all our stakeholders to ensure that through agriculture, forestry and fisheries we move South Africa forward.

I thank you

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Budget Vote Speech Delivered By Deputy Minister Hon. General Bheki Cele (MP) Budget Vote 24: Agriculture, Forestry And Fisheries 21 April 2016 Honourable Chairperson; Honourable Minister Senzeni Zokwana and other Ministers Present; Honourable Deputy Ministers; Chairperson and Members of the Portfolio Committee on Agriculture, Forestry and Fisheries; MECS of Agriculture; Members of Parliament; Distinguished Guests; Ladies and Gentlemen; Sanibonani, Good Afternoon It is indeed a humble honour for me to address this august house today, on such a pertinent and relevant subject in the current affairs agenda of government. This is undoubtedly the subject that talks to the hearts and minds of fellow South Africans; the subject that defines humankind, the subject that talks to the solution of poverty and hunger, the subject that is at the face of drought and climate change issues and most importantly the subject that is at the critical point of service delivery. Chairperson, we fully support the presentation of the budget vote 24 by Minister Senzeni Zokwana, we further reaffirm that the subject of Agriculture remains the catalyst for economic growth and food security. This country is at a period that calls for a revolution in the agricultural sector. As American writer Daniel Quinn, in his book Ishmael: An Adventure of the Mind and Spirit, wherein he argues, I quote "that our agriculture revolution is not an event like the Trojan War, isolated in the distant past and without relevance to your lives today. The work begun by those Neolithic farmers in the Near East has been carried forward from one generation to the next without a single break, right into the present moment. It`s the foundation of your vast civilization today in exactly the same way that it was the foundation of the very first farming village" close quote. Indeed, the story of today and tomorrow must be different to the story of yesterday. We certainly do not want to dwell much on the non-progressive stories of past about this sector; however we are more interested to listen to a remarkable and progressive good story. The Honourable President during the State of the Nation Address said Phezu`komkhono! He gave us the marching orders, when he spoke passionately about the Revitilisation of Agriculture and the Agro-Processing Value Chain. The Minister unpacked the strategy in this regard and hence our budget is channelled towards the realization of the vision. The strategy will unashamedly be biased in bringing more black small holder farmers as progressive beneficiaries of this programme. Honourable members, radical transformation will hit the spinal cord of the sector; we can rather deal with the casualties of the implementation process; than to be trapped in the paralysis of transformation that is by mouth and on paper with no tangible results. Chairperson, honourable members and fellow South Africans, we remain resolute in our resolve for a better life for all. The story must change, the language must change and the walk must change. Indeed the budget must change to represent the paradigm shift in the sector. It is rather unfortunate that, the 2016 budget vote directly coincides with the most severe challenges of drought and budget cuts. Nonetheless the agriculture revolution will continue to soldier on, right in the midst of rigid and tough conditions, both environmentally and financially. FORESTRY MANAGEMENT Chairperson, During Honourable Minister Zokwana’s Budget Vote for 2015/16 financial year, he announced that the country will host the 14th World Forestry Congress (WFC) from 07 - 11 September 2015 - for the first time on African soil since its inception in 1926. I am delighted to report that the Congress was a success in terms of quality of participation, inputs and outcomes. It attracted more than 4 000 participants from 142 countries and was addressed by the Deputy President, Cyril Ramaphosa. Lessons drawn from the Congress are being considered for improvement of forestry in South Africa and Africa at large. Honourable Members, Forestry remains one of the critical development areas in the natural resources management realm and the nation’s hope for achieving the Sustainable Development Goals (SDGs). Our country continues to be endowed with over 40 million hectares of natural and commercial plantations all of which play a critical role in the social, economic, institutional perspectives of our communities as well as for biodiversity. Its close proximity to rural areas makes it (forestry) an economic activity which holds a potential to contribute to development of rural economies and youth employment. However the sector is still dominated by the tradition ownership patterns which must be addressed. It is on this basis that government is championing programmes to ensure radical socio-economic transformation of the sector in line with the Forest Sector Transformation Charter. This is done with the aim of ensuring entry of blacks, youth and women in the forestry value chain. For instance, government has now identified areas of forestry growth such as the planting of 147000 hectares over time as an area that should promote the entry of women and youth in the sector across the value chain. Madam Speaker, it is public knowledge that commercial forests or plantations take longer time to mature. This has a potential to discourage youth and communities from practicing forestry. I am therefore pleased to announce that government is pursuing the AGRO-FORESTRY programme to bridge this economic gap. This programme will ensure the promotion of the coexistence of agriculture and forestry thereby benefit communities and other owners while they are waiting for trees to mature. However the success of this programme will require that government and industry works in harmony with communities in line with the spirit of our democratic government: Working together we will do more. To ensure legal strengthening of these measures Mr Minister has just announced legislative reform being undertaken by the department. Madam Speaker, our greening efforts have also proven their worth in beautifying our localities while also providing for food security through fruit trees being planted across the length and breadth of our country. For this we salute all municipalities which are participating in this course as well as sister departments and NGOs which are supporting this course. It is on this basis that the Arbor Week campaign which takes place from 01 - 07 September annually remains one of the fundamental campaigns in driving forestry and sustainable forest management targeting preservation of trees within and outside forests. LANDCARE Honourable members, the LandCare programme remains one of our key programmes for natural agricultural resources management under the Expended Public Works programme (EPWP). It is also a programme which contributes to enhancing the resilience of the sector from natural hazards and disasters thereby adapting to climate change and variability. I am pleased to report that during the 2015/16 financial year the programme implemented 106 projects in all nine Provinces amounting to R65, 011. This resulted with the creation of the target number of 2803 jobs in rehabilitating 16000 hectares of agricultural land. The department will therefore continue to support LandCare and other disaster risk reduction programmes to ensure resilience and sustainability of the sector to ensure national food security. Notable measures linked to this programme include the promotion of Climate Smart Agriculture (CSA) as launched under the United Nations. The programmes and success stories of Land Care confirms the views of agricultural intellectual, Wendell Berry, in his book, The Unsettling of America: Culture and Agriculture, where it reads I quote “The soil is the great connector of lives, the source and destination of all. It is the healer and restorer and resurrector, by which disease passes into health, age into youth, and death into life. Without proper care for it we can have no community, because without proper care for it we can have no life" unquote. Honourable Chairperson, the Department is pleased to announce that this year’s LandCare conference will be hosted by Northern Cape Province in Kimberley from 3 to 6 October 2016. Chairperson, allow me to extend my input to the politics of the markets and further echo and reiterate the position of the department. TRADE As Minister stated, the department continues to strive to ensure that South African producers have much needed increased market access both locally and globally, and to this end the department is now focusing on new trade agreements currently being negotiated within the African continent and in Asia. Furthermore, other market access initiatives are on-going with specific emphasis on strategic commodities identified with high potential for growth and labour absorption. In 2015, two plant-related technical trade protocols were concluded, for exporting South African Litchi fruit to the USA using irradiation as a pest risk management measure, and for Table Grapes to Thailand, We will also work with the AGOA eligible products such as fruits, nuts and meat products to open access to the US markets, but we must be alert that gains made can be still reversible. The main beneficiaries of AGOA in South Africa are Automotives and Chemicals however there are now growing export opportunities for agricultural products. The South African government, after assessing the benefits of continuing to be eligible versus possible negative impact, mandated negotiators to find positive solutions to South Africa remaining in AGOA. Specific issues pertaining to trade access for poultry, beef and pork were put on the negotiating table. It must be said it was not easy. A minimum of fifty per cent of the 65 000 metric tons quota will initially be allocated to Historically Disadvantaged Individuals (HDIs). The rest of the quota will be allocated to historical importers of Bone-in Cuts. The Department has so far allocated the first term of the quota, April 2016 - June 2016, of 16 250 tons to 29 companies, 9 of which are HDIs. During 2015, two plant-related technical trade protocols were concluded, for exporting South African Litchi fruit to the USA using irradiation as a pest risk management measure, and for Table Grapes to Thailand. Chairperson, I want to reiterate in this august house that, we are watching this space with an eye of an Eagle, the figures of 9 out of 29 companies will have to be more convincing in the near future. We want to see the companies of Msinga, Khayelitsha, Nkomazi, Ga- Malebogo, Los my Cherry and Hammanskraal benefiting from these programmes. Moreover, even the surnames of the ownership and control of the companies must unapologetically be African. It is a matter of principle; in fact we even demand that the entire value chain be that of the Shongwes, the Ndlovus, the Mulaudzis and the Mofokengs of this country. Honourable members, the tide is changing and it must change. Transformation can never be complete without the empowerment of youth and women. The environment of the agricultural sector is conducive enough to absorb, mentor and support the youth and women of this country. Hence our budget is directed towards making an impact in this space, although much still needs to be done As a matter of fact honourable members, this we owe to the lives of our fallen heroes and heroines of our struggle. As the country prepares to honour and commemorate the 40 years since the 1976 youth uprising in June 16 and equally commemorating the 60 years since the women`s March of 1956. The contribution of our sector must be equally relevant and remarkable in the progressive empowerment of our youth and women of this country. Furthermore, other market access initiatives are on-going with specific emphasis on strategic commodities identified with high potential for growth and labour absorption. IMPLEMENTATION OF YOUTH DEVELOPMENT INITIATIVES FOR 2015/16 EXTERNAL BURSARY SCHEME Chairperson, the area of skills development is at the heart beat of growth and development in our sector. The nerves and veins of all our planned programmes must equally address skills development. This is one area that will ensure genuine sustainability of the scarce skills, professionalism and the development of subject experts in our sector. During 2015/16, the department offered financial assistance to 311 young people to further their studies in one of the identified scarce and critical skills in agriculture, forestry and fisheries of which 116 were new Awards.Of the 311 students sponsored, 47 were postgraduates, 264 undergraduates (Veterinary Science, Engineering, Food Science, Viticulture & Oenology and Soil Science. To this end, R 15.9 million was allocated to implement the scheme during 2015/16 financial year. For the current financial year 2016/17, the department is sponsoring 286 young people to further their studies in one of the identified scarce and critical skills in agriculture, forestry and fisheries of which 96 are new awards. Of the 286 students sponsored, 35 are postgraduates, 251 undergraduates (B.V.Sc, Engineering, Food Science, Viticulture & Oenology and Soil Science. A total amount of R 14.4 million is budgeted for this financial year. EXPERIENTIAL TRAINING, INTERNSHIP AND PROFESSIONAL DEVELOPMENT PROGRAMME Honourable members, the programme of professional development and experiential training will forever remain a priority in the area of human capital investment. During 2015/16 financial year, the department recruited 287 unemployed graduates as interns. Of this total, 51 were placed in APAP aligned commodities for practical exposure while 236 were place within directorates in the department. An amount of R18 284 000.00 was allocated to implement the scheme. Furthermore, for the current financial year 2016/17; a total number of 299 interns are recruited and they commenced with their training on 01 February 2016. Of this total, 68 are placed in APAP aligned commodities for practical exposure while 231 are placed within directorates in the department. A total amount of R18 million has been allocated to implement the scheme in this regard. Chairperson, the department working with the National Agricultural Marketing Council (NAMC) are coordinating the implementation of a market access infrastructure development programme - the Strategic Integrated Project or SIP 11. To date a total of over 800 projects have been included in the national database. 30 of these projects are considered “anchor infrastructure projects”, catalytic in the development of the sector in the rural areas. They have so far created 40 000 jobs since 2013 and R28 billion has so far been raised through MTEF, the IDC and other sources to fund these projects. The Department and NAMC are working with other stakeholders to raise the rest of the funding through the Presidential Infrastructure Coordinating Commission (PICC). The NAMC’s Supply Chain Logistics Programme assists small producers of fresh fruit and vegetables in accessing international markets sparticularly the EU. The project in which 18 producers of stone and pome fruit are currently participating will be expanded. FOOD PRICE MONITORING COMMITTEE (FPMC) Chairperson and honourable members The department established the Food Price Monitoring Committee (FPMC) at the NAMC to track and report on food price trends in South Africa and also to provide explanations on the observed trends and advise the Department on any possible action that could be taken when national and household food security is threatened. Increasing food inflation continues to remain a major concern for the department. According to the Food Price Monitoring report by the NAMC, the cost of the basic food basket increased by R44 (+8.7%),from January 2015 to January 2016, in nominal terms from R509 to R553. A number of factors are contributing to this situation namely, the depreciation of the Rand impacting production input costs and import costs, and the impact of the current drought which has led to the imminent import of maize. With regard to the dry conditions that South Africa experienced towards end of year 2015 and beginning of 2016, this will highlight the increase of food and food products prices in future. Based on these facts, we can conclude that this will have a negative impact on household food security in South Africa affecting the affordability of selected staple foods and other various food items. It is on that score, that as the leadership of the department, we engaged on an intense marathon visiting provinces to encourage the establishment of back yard or household gardens to the food insecure families. Chairperson the food that we eat is not from Pick n Pay or Shoprite, the food is from our own back yard gardens hence we say Masibuyele Emasimini - umnotho usemhlabathini. Our soil is our wealth - hence our understanding of Agriculture needs a mindset change, as Allan Savory argues in his book, Holistic Management: A New Framework for Decision Making. I quote: "Agriculture is not crop production as popular belief holds - it`s the production of food and fiber from the world`s land waters. Without agriculture it is not possible to have a city, stock market, banks, university, church or army. Agriculture is the foundation of civilization and any stable economy". Close quote. CITRUS BLACK SPORT (CBS) The Exports of Citrus fruit from South Africa to the European Union (EU) remain under threat in the 2016 export season due to the EU’s import requirements for Citrus Black Spot (CBS). The CBS is present in many Citrus producing areas in South Africa and, if we do not comply with the EU import requirements, this may result in even more severe restrictions on our exports, with potential negative economic implications for the Citrus value chain and all who depend on it. South Africa does not believe that commercial fruit are a risk to plant health with regard to CBS. Even so, in order to further improve compliance with EU import requirements for CBS, the Department continues to ensure strict implementation of a stringent CBS risk management system. In 2015, an audit team from the EU’s Food and Veterinary Office (FVO) found that South Africa had significantly strengthened its official export procedures. The FVO concluded that these are fully in line with the relevant revised EU requirements. Regardless of EU concerns, South Africa ended 2015 with a significantly lower number of CBS interceptions in the EU. As I draw towards my conclusion, Honourable Chairperson and honourable members, allow me to elevate and restate the important issue, of government`s drought relief intervention programme; which has turned into a political jumping castle in the Western Cape. The truth of the matter is that the black farmers in the Western Cape, in particular the farmers of Piketberg in the west coast region are still subjected to massive oppression. Honourable members this behaviour must be discouraged, black farmers of the Western Cape must receive government assistance from the provincial government. Chairperson, we need to remind this august house that, this government exists not to maintain any standards but it exists to create new standards; this we owe to the fellow South Africans that have entrusted us with the responsibility to lead, to deliver and to address the triple challenges of poverty, hunger and unemployment. The drought relief programme has no eyes to differentiate between black or white farmers. The principle around the criteria of the assistance is to prioritize small holder farmers with no reference to a specific race card. If the category is dominated by a particular race, then blame it to the non-progressive history of this sector and not on the current intervention measures. While drought challenges demand extra assistance from government, It is imperative to note and acknowledge progress made thus far, and to equally balance the demands of food security and water security respectively. Regardless of the budget cuts, and other dynamics; the department has recommitted itself to directly address the fundamental priorities of Food Security, Job Creation and Economic growth. Chairperson, let me close with an encouraging quote relevant to our sector from the bible, in the book of Proverbs 28 vs 19 - "he who tills his 2land will have plenty of food, but he who follows empty pursuits will have poverty in plenty". The Agriculture revolution continues... I thank you.

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Responses

 

Budget Vote Contributions by Cde TMA Thongwane, (ANC) PC AFF, Agriculture, Forestry & Training by Hon TM Thongwane

21 April 2016

Forestry and economic transformation

Madam speaker, I wish to salute the honourable Minister and his Deputy Minister for the excellent programmes they champion in driving growth for forestry in the country. My gratitude also go to the Chairperson of the Portfolio Committee of Agriculture, Forestry and Fisheries for providing leadership in the oversight of the sector.

Honourable members, during the PC oversight visit to Limpopo forestry areas on 23 July 2015, it became clear to me that forestry is one of the catalysts for growth and economic transformation for the country. It also became clear that this is possible where real transformation can be given attention as per the Minister and Deputy Minister' Budget Vote statements. It is indisputable that it has a potential for job creation and youth employment including entrepreneur development due to its diversified forestry products.

Reports point out that the sector is a major contributor to the South African economy through its well developed and diversified forest products industry and that it currently contributes 0.7% to the Gross Domestic Product (GDP) and supports manufacturing subsectors such as sawmilling, paper and pulp production, mining and construction.

The commercial forestry sub-sector which is said to occupy 1.26 million hectares of plantation land accounts for an investment value of $2.6bn with annual sustainable production of 20 million tons of timber with main products ranging annually from pulp (2.6million tons), woodchips (2.4million tons) and lumber (1.4 cubic metres) remain one of the areas we need to enforce transformation in line with the Forest Sector Transformation Charter.

In conclusion, I salute the leadership of the... for leading the forestry sector and for championing government programmes for the sector including sustainable forest management as presented today. It is also pleasing to hear that the 7th LandCare conference is being hosted by the Northern Cape province in October 2016.

By his, Madam Speaker, I wish to support the Budget Vote presented by the Minister of Agriculture, Forestry and Fisheries
 

South Africa is currently in the grip of the worst drought ever and the ANC government’s response to this is shocking to say the least!

Annette Steyn (DA) Shadow Minister of Agriculture, Forestry and Fisheries

Chairperson

Earlier this year, SADC declared the region a drought disaster area and called on national governments, international aid organizations and the private sector to assist in ensuring food security for 50 million people affected by the drought.

In contrast to this, the response of the ANC government in dealing with this drought is shocking to say the least.

During the State of the Nation Address this year, President Zuma said the following:

“The drought that is currently taking place in most of our provinces is really devastating. Livestock is dying and as a result, the agricultural sector is going through a difficult period. These are tough times indeed. Government will continue to assist farmers and also provide water-tank services to communities.”

If you listened to these words it would not give you the sense that at the time when the President made that speech, 34 million South Africans were without water; this during February when we experienced record high temperatures. The President went further and thanked the civil society organisations for providing water to communities. It is unbelievable that 65% of South Africans could be without water and it is not declared a national disaster. Maybe it is because the fire pool at Nkandla did not run dry.

These hollow words by the President placed the hopes of our farmers in the hands of Pravin Gordhan, believing that some relief measures would be announced during the budget debate.

It was devastating to listen to the budget debate and no real relief for farmers or communities without water were announced. Minister Gordhan had the following to say:

“Initiatives to transform ownership of land and improve productivity in agriculture are under way, and Ministers Zokwana and Nkwinti are addressing drought-related challenges in rural areas.”

More hollow words to a sector that is on its knees.

According to a presentation by the Red Meat Producers Organization (RPO) it is estimated that approximately 650 000 animals already died or had to be slaughtered because farmers could no longer afford to feed them.  No real assistance to farmers was given and the feed that was provided is totally inadequate for the massive need. By the end of January it was apparent that South Africa would be unable to produce enough food due to late rains. Agri SA estimated that at least R12 billion would be needed to protect the sector through the worst drought ever, this information was provided to government.

The budget speech was a clear sign that farmers don’t matter to the ANC government. And if farmers don’t matter, food security don’t matter.

It is very clear that agriculture don’t matter because both the department of agriculture, forestry and fisheries and the department of rural development and land reform has seen budget cuts for a second year in a row now. The country would be carrying the brunt of this foolish decision for years to come.

What makes this cut to the agriculture budget even more bizarre is the fact that the programs ensuring food security has been mostly affected by these cuts. This while the number of people who are food insecure is rising on a yearly basis.

• Program 2, agricultural production, health and food safety has been cut with R181 million and
• Program 3, food security and agrarian reform has been reduced by R40.6 million.

The programs just mentioned are precisely those that are responsible for transforming ownership of land and improving agricultural productivity. The ANC government keep on pronouncing these nicely sounding programs but consistently fails to provide the necessary budget for their proper implementation.

Minister, I would propose that you speak to your counterpart in Rural Development and Land Reform, one of the biggest challenges facing black farmers is security of tenure. People are waiting for long periods to get a lease and in many cases the lease period is to short, not renewed or just no lease at all. It would be even better of black farmers would be given title to land in order to have security and take ownership of their businesses. Why don’t you trust black farmers to get ownership?

The Agricultural Research Council (ARC) would also be negatively affected and some ground breaking research in the development of new vaccines would not be able to make it onto the market due to budget constraints.

We must congratulate the ARC for developing a “drought tolerant” maize seed which was launched during December 2014. This seed is specifically focused towards small scale maize producers in Africa and would go a long way in assisting with food security in our drought prone country. Unfortunately our department did not seize this opportunity to ensure the multiplication of the seed in order to plant hundreds of hectares in the current financial year. It is not clear what the current status of this seed is and why it was not put to better use during this drought.

Chairperson, this brings me to the discussion of rising food prices. It is currently estimated that the country would have to import 3.8 million tons of maize. This is based on the overly optimistic predictions by the crop estimates committee. Unfortunately, these early predictions seems to have lulled the honourable minister and the ANC government into a false sense of security. The reality is that not only did the country receive a record low rainfall but 2015 has also been the hottest year ever and we broke all records of maximum temperatures measured during prolonged heatwaves during January and February this year. This has had a devastating effect on our crops.

As can be seen by these examples that I received from farmers in the Free State, looks can be deceiving. (Pictures) In many cases maize fields would appear healthy from the road but as soon as you take a closer at the actual yield it is apparent that not only did the low rainfall but also the heat played a major role in the stunted growth of the maize. Once farmers proceed to harvest, we will start to see a clear picture of what lies in store for us.

As a result of the decreased crop yields, supply can already not keep up with demand. Just yesterday the latest Food Price Inflation (FPI) rate was announced which place the price of food on a 9.5% increase y/y. With bread 13.3% higher and fruit and vegetables at 18.7%. According to a presentation by the National Agricultural Marketing Council (NAMC), this could increase to 30% by the end of this year.

Chairperson, this year we are experiencing a food crisis because of the drought but if government proceeds to leave farmers to deal with this crises on their own, next year we might have a far bigger crises because farmers will be unable to continue with their operations.

We call on government again, to declare this drought a national disaster and give it the attention it deserves.

Budget Vote 24: Agriculture
Inkosi RN Cebekhulu, MP Inkatha Freedom Party

Honourable Speaker,

With this department receiving only a nominal increase in budget allocation for the 2016/2017 year and when contrasted against the immediate challenges that this department faces, this amount is a mere drop in the ocean and we are accordingly not confident that the department will reach many of the goals it has set itself for the ensuing year.

Of the many challenges it faces we wish to highlight the following in the hope that they will receive most urgent departmental attention:
Poaching in our marine conservancy areas and along our coastlines in general remains rife, with certain species of fish, abalone and rock lobster now reaching critical depopulation levels. Not enough is being done to stem this advancing tide of poaching of our marine life. We are still leasing privately owned vessels in order to police and patrol our marine areas. Marine conservancy and policing must receive proper and adequate funding otherwise we cannot hope to make any substantial impact against poaching.

In respect of commercial fishing licences and permits we also note with great concern the plight of our subsistence fishermen who advise that they are being side-lined when it comes to the issue of commercial fishing licences in favour of large commercial fishing operations. How do we expect to take our people out of poverty when we handicap them in this manner by not allowing them to compete with large commercial fishing operations for the issue of licences.

If we turn to land based agriculture, we see that crop farming has seen a recent upsurge in new entrants to this field on all levels, subsistence, emerging and commercial farmers. However the department treats these classes differently when it comes to providing technical and other assistance. Such inequality negatively impacts our food security and must be addressed.

Smallholder farmers are struggling to work their farms as there are many financial challenges which become obstacles to progress. Shortages of extension officers and skilled technical advice and assistance to farmers is also leading to arable farming land becoming unproductive. Recent natural disasters have only added to these challenges, and here I am referring to the horrific drought that has badly damaged both agricultural and animal farming practice in South Africa.

The continued use of herbicides such as glyphosate being sprayed by the police in the Eastern Cape to eradicate cannabis plants traditionally grown on the wild coast is destroying soil fertility and crops in the adjacent subsistence farming lands placing food security in the area at great risk.

Technical assistance to farmers through the provision of specialized equipment such as the provision of tractors to subsistence farmers which they could use to plough communal farming areas is no longer operative. This is due largely to the tractors being un-serviced. When is the Department going to attend to this programme?

Our larger commercial farming operations are also finding it increasingly difficult when competing with farmers from other countries who are obtaining subsidies from their governments as this is making them more competitive in international markets and pricing our farmers out of the market.

Lastly, I wish to raise the issue of this Department having for some time now an “Acting” DG – a ship cannot be rudderless, this position must be filled as a matter of urgency.

I thank you.