Question NW1095 to the Minister of Agriculture, Land Reform and Rural Development
04 May 2023 - NW1095
Cebekhulu, Inkosi RN to ask the Minister of Agriculture, Land Reform and Rural Development
(a) In what way are the intentions of the Agro-processing Master Plan, that was set out with the intention of encouraging previously marginalised groups to participate in the agricultural sector, being implemented at present, (b) what are the challenges faced in this regard and (c) what plans are in place to overcome the challenges?
Reply:
a) The objectives and commitments of the Agriculture and Agro-processing Master Plan (AAMP) are implemented through two mechanisms, namely, the Commodity Value Chain Round Tables and Transformation Schemes. The two mechanisms ensure that implementation is at a commodity level focusing on both commercial and non-commercial (including tribal and land reform farms) farming areas. The Transformation Schemes are geared towards accelerating the empowerment and participation of previously marginalised groups in each agricultural commodity value chain. Since the signing of the AAMP in May 2022, the establishment of the Transformation Schemes in the mohair, cotton, citrus, and red meat industries are underway. Other industries to follow suit in 2023/24 year.
b) The main challenge is the availability of funding for off-farm infrastructure, particularly in rural and tribal areas where the Transformation Schemes are targeted. The enabling infrastructure such as rural roads, irrigation schemes, electricity supply, fresh produce markets, colleges, and processing or storage facilities are poorly developed. This affects the ability to attract private investments into these areas and impedes unlocking agricultural growth and jobs in rural and tribal areas.
c) Beyond the existing departmental funding that has been reprioritised to align with the AAMP interventions, the Department of Agriculture, Land Reform and Rural Development (DALRRD) is working with the private sector to raise additional funding to finance both on-farm and off-farm infrastructure and other AAMP interventions through the mechanisms namely, Value Chain Round Tables and Transformation Schemes. Some of the catalytic infrastructure projects that are crucial for the development of agriculture have been submitted to the Infrastructure Office in the Presidency to solicit both domestic and international private funding.
The AAMP furthermore seeks to drive transformation through commodity corridors, where the value chains deep-dives of the AAMP are translated into a district-based value chain approach. These are aimed at linking market-led investments with strategically identified agricultural land. In other words, whereas the deep-dives identify what needs to be done nationally in each value chain, the district-based approach identifies where the high potential areas are to create the biggest impact with respect to inclusive growth and job creation.