Question NW2011 to the Minister of Agriculture, Land Reform and Rural Development
19 June 2023 - NW2011
Matiase, Mr NS to ask the Minister of Agriculture, Land Reform and Rural Development
What (a) progress has been made in facilitating the (i) aggregation and (ii) co-funding models and (b) time frames have been set in this regard?
Reply:
(a),(i) The Department of Agriculture, Land Reform and Rural Development (DALRRD) in collaboration with the National Agricultural Marketing Council (NAMC), implemented the National Red Meat Development Programme (NRMDP) from 2013. The NRMDP is a market aggregation facilitation programme that affords livestock developing farmers an opportunity to upscale their participation in the marketing of their livestock.
Farmers are capacitated on the various market channels, grading, classification, pricing and other formal market details. The programme supports household livestock farmers to develop the institutional capacity in rural areas through the establishment of custom feeding infrastructure and the facilitation of livestock auctions that empowers farmers to condition their animals using the aggregation model to make them ready for the market. The programme has benefited over 10 000 farmers to date.
Currently, DALRRD is working with its State-Owned Enterprises (SoEs) namely, the Agricultural Research Council (ARC), NAMC and Onderstepoort Biological Products (OBP) to finalize the legal tool that will enable the expansion of this programme.
As outlined in the Agriculture and Agro-processing Master Plan (AAMP), DALRRD through round table discussions with the sector key role players including the industry is developing production schemes that will also upscale aggregation models. The engagements are at advance stages on prioritised production schemes like red meat, cotton and citrus.
(a),(ii) DALRRD is implementing the Blended Finance Scheme (BFS) as a co-funding instrument between government and the private sector. It should be noted that the Department is currently working with both the Land bank and the Industrial Development Cooperation. It is envisaged, as negotiations are unfolding that most if not all commercial banks will participate in the scheme, thus freeing some resources to be used in the development of small-scale producers.
(b) These programmes are already being implemented.