Question NW3242 to the Minister of Agriculture, Land Reform and Rural Development

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13 December 2022 - NW3242

Profile picture: Montwedi, Mr Mk

Montwedi, Mr Mk to ask the Minister of Agriculture, Land Reform and Rural Development

What (a) is the total number of black farmers who have benefited from the commercialisation programme of her department since its introduction and (b) total number of farmers have benefited from the specified programme through the Industrial Development Corporation as the implementing agent?

Reply:

(a),(b) Please refer to the Annexure A below.

ANNEXURE A OF NA-QUES 3242 OF 2022

  1. Total number of black farmers who have benefitted from the commercialisation programme since induction:

BLENDED FINANCE (with Land Bank

AGRI BEE

NRMDP

National Red Meat Development Programme

Blended finance: with Industrial Development Finance (IDC)

There are currently 7 transactions that Land Bank approved for Blended Finance during the proof-of-concept phase in 2018 to a total funding of R163 million as shown in table below

10 Agribusinesses (black producers) as of 31 October

2022.

Total of 10 black producers who have benefitted.

  1. The Department entered into a strategic partnership with the National Agricultural Marketing Council (NAMC) to implement the National Red Meat Development Programme (NRMDP). The programme facilitated market access (formal and informal) for Black smallholder farmers who are most disadvantaged. The NRMDP was implemented in three (3) Provinces namely: Eastern Cape, KwaZulu Natal and North West.

Eastern Cape (EC):

  • Animal intake= 571
  • Animals sold = 508
  • Farmers benefitted = 336
  • Income generated = R2 876 238

KwaZulu Natal (KZN):

  • Animal intake= 51
  • Animals sold = 790
  • Farmers benefitted = 384
  • Income generated: R 7 222 195

North West (Taung CFP):

  • Animal intake= 71
  • Animals sold = 84
  • Farmers benefitted = 33
  • Income generated: R464 000

Total of 753 farmers who have benefitted.

The NRMDP focuses on improving market access for smallholder farmers in order to facilitate participation in Agri-value chains. Project activities include construction of custom feeding centres, establishment of pasture fields as well as establishment of processing facilities for improved access to high value markets.

  1. Farmers were supported in terms of market information, compliance to Good Agricultural Practice (GAP), packaging, quality control, consistency, transportation and other logistic planning and business linkages with potential buyers. The market access facilitation programme enables the NAMC to contribute to making the agricultural sector more inclusive and viable as a contributor to economic growth and transformation.

During the 2021/22 financial year, the NAMC linked 141 black smallholder farmers into the market through its market access facilitation programme.

Received applications/ Evaluation: The Dalrrd has a signed agreement with the IDC committing R1 billion over 5 years. The IDC has received R400 million as at end June 2022 and has since evaluated 28 transactions requiring total funding of R1.5 billion at end June 2022

Approved:

13 Transactions to a combined value of R531 million of which R193 million is a grant have been approved for funding at end June 2022 and creating 295 jobs as shown in the table

DALRRD / LAND BANK PROOF OF CONCEPT STAGE (INITIATED IN 2018)

No.

Commodity

Province

Total project Value

Grant Amount

Loan Amount

Total Jobs

1.

Poultry

North West

R17 357 500,00

R13 857 500,00

R5 300 000,00

8

2.

Beef and Poultry

North West

R10 004 572,25

R2 504 572,25

R7 500 000,00

29

3.

Mixed Crop

North West

R55 000 000,00

R35 500 000,00

R19 500 000,00

5

4.

Sugarcane

KwaZulu Natal

R15 000 000,00

R7 000 000,00

R8 000 000,00

13

5.

Livestock

Northern Cape

R8 151 828,00

R4 000 000,00

R4 151 828,00

3

6.

Mixed Farming

Mpumalanga

R51 386 000,00

R33 826 000,00

R17 560 000,00

23

7.

Poultry

Gauteng

R6 852 544,00

R4 710 310,00

R2 142 234,00

7

 

 Total

R163 752 444,25

R101 398 382,25

R64 154 062,00

88

 

DALRRD AGRIBEE FUND

No.

Commodity

Province

Total project Value

Grant Amount

Own contribution

Total Jobs

1.

Fruit

Limpopo

R4 767 000,00

R4 290 300.00

R476 700,00

10

2.

Fruit

Western Cape

R5 431 970.00

R4 345 576,00

R1 086 394,00

20

3.

Vegetable

Limpopo

R8 196 184,00

R6 556 947,20

R1 639 236,80

40

4.

Timber

KwaZulu-Natal

R4 850 017,85

R4 365 016,07

R485 001,79

2

5.

Nuts and vegetables

Mpumalanga

R1 871 939,29

R1 684 745,36

R187 193,93

43

6.

Fruit

Western Cape

R4 998 991,20

R4 499 092,08

R499 899,12

10

7.

Livestock

Gauteng

R4 979 738.00

R4 481 764.20

R497 973,80

18

8.

Fruit

Western Cape

R4 999 999,39

R4 499 999,45

R499 999,94

20

9.

Vegetable

Western Cape

R15 691 157,34

R12 552 925,87

R3 138 231,47

25

10.

Fruit and vegetables

KwaZulu-Natal

R4 950 044,57

R4 455 040,11

R495 004,46

10

 

 Total

R60 737 041.65

R51 731 406,34

R9 005 635,31

198

 

  1. Total number of black farmers who have benefited from the specified programme through the Industrial Development Corporation as the implementing agent.

Received applications per subsector

Subsector

#Transactions

Total Fund

R’000

Grant

R’000

Loan

R’000

Estimated Jobs

Horticulture

7

764 000

183 000

581 000

860

Poultry

14

589 000

179 000

410 000

403

Piggery

3

60 000

22 000

38 000

20

Forestry

2

49 000

19 600

24 400

10

Sauces & Beverages

2

40 000

16 000

24 000

40

Total

28

1 502 000

419 600

1 077 000

1 333

Approved applications

No

Commodity

Province

Total project Value

AIF Grant Amount

Loan Amount

Total Jobs

1

Poultry

Free State

22 679 211,00

8 472 368,00

14 206 843,00

17

2

Poultry

North West

78 991 308,00

27 494 368,00

51 496 940,00

37

3

Poultry

Mpumalanga

66 096 356,00

22 607 428,00

43 488 928,00

24

4

Vegetable processing

Gauteng

10 000 000,00

4 000 000,00

6 000 000,00

32

5

Poultry

Limpopo

36 790 000,00

12 716 000,00

24 074 000,00

22

6

Poultry

Limpopo

43 726 000,00

19 076 000,00

24 650 000,00

40

7

Poultry

Gauteng

65 131 667,00

22 706 667,00

42 425 000,00

25

8

Poultry

Free State

49 826 000,00

19 300 000,00

30 526 000,00

13

9

Poultry

Mpumalanga

52 085 365,00

18 168 823,00

33 916 542,00

21

10

Poultry

Gauteng

68 342 000,00

23 510 000,00

44 832 000,00

16

11

Dairy Processing

Gauteng

7 200 000,00

2 800 000,00

4 400 000,00

12

12

Pastry agroprocessing

Western Cape

4 688 701,00

1 667 226,00

3 021 475,00

10

13

Forestry

KwaZulu Natal

25 000 000,00

10 000 000,00

15 000 000,00

26

     

530 556 608,00

192 518 880,00

338 037 728,00

295

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