Dr Langelihle Simela CEO: NERPO National Emergent Red Meat Producers’ Organisation Presentation to the Portfolio Committee on Agriculture, Forestry & Fisheries Dr Langelihle Simela CEO: NERPO

Structure of the presentation About NERPO Issues for discussion: Current challenges for smallholder farmers: High cost of production (electricity, wages, fuel, etc) – subsidies & cheaper alternatives Insurance Water rights Extension & farmer training Effective management of communal lands Pounds Bill Marketing Bill

About NERPO Group Association (NPC) NERPO Financial Services NERPO Farming Enterprises & Dev Trust NERPO Investment Limited SAYA CO-OP Limited Lobbying, advocacy & facilitation of farmer development Credit facilities, insurance, financial management Benchmark farms, farmer training Shareholding in various agribusinesses Youth agribusiness development

Established in 1997 and registered in 1998 Non-profit company Established in 1997 and registered in 1998 Vision To create successful farmers out of our predominantly disadvantaged members

Our mission: To facilitate the empowerment of our members in order to improve their social and economic well-being and to enable them to utilise market opportunities on a sustainable basis

Major strategic objectives: Institutional capacity building and lobbying ability for strong government legislation, which promotes and supports emerging red meat producers, cattle breeders and feeders Facilitate commercialisation of the emerging sector by facilitating access to technical support, credit facilities and markets Enable economic empowerment of members, youth and women by facilitating linkage to business opportunities within the supply chain

Major programmes: Members’ organisation: Lobbying and advocacy: Foundation for any other activity of the organisation Lobbying and advocacy: Government, support organisations, region Industry liaison Farmer support and development Flagship = training and mentorship

District Municipalities Farmer organisation ANNUAL GENERAL MEETING NATIONAL EXECUTIVE COUNCIL NATIONAL OFFICE FS KZN LP NC NW EC MP GP 5 2 4 6 1 District Municipalities WC

Lobbying & Advocacy Issues from provinces & raised at national level Issues from districts & raised at provincial level Issues raised at district level Not Solved Solved Not Solved Solved Not Solved Solved

Farmer support & development Target 1000 farmers on private land & at least 10 Rural Livestock Co-ops on communal land for support over a period of 3 – 5 years. Resources required to achieve business plan External: Land Infrastructure Finance Business Plans Farmer mobilisation & resource audit NERPO: Training Mentorship Finance Breeding stock Access to markets Skills required To achieve Business plan

Issues for discussion- 1 Effective and efficient utilisation of communal land The vast majority of smallholder farmers are on communal land (~80%). Poor management systems for communal land greatly impede production and productivity. Interventions to develop farmers’ skills and production capacity (e.g. offering loans) are meaningless without the effective management of communal land to enable efficient utilisation.

Issues for discussion- 2 Effective and efficient utilisation of communal land – possible intervention: The Portfolio Committee on Agriculture, Forestry & Fisheries is requested to facilitate a discussion with all key stakeholders on communal land management, on which key recommendations for effective and efficient use of communal land could be developed and submitted to the relevant authorities.

Issues for discussion- 3 2) Cost of production: The cost of agriculture production is increasing and smallholder farmers are badly affected. Major cost factors include: Fuel Electricity Wages NERPO calls for some assistance to smallholder farmers to enable them to cope and remain in business

Issues for discussion- 4 2) Cost of production: Possible interventions: Subsidies on fuel & electricity Subsidies on use of alternative sources of energy Subsidies on insurance

Issues for discussion- 5 3) Extension & farmer training : Most smallholder farmers have limited entrepreneurial skills for viable agricultural production. Government extension services are about the only source of information that is readily available to the smallholder farmers.

Issues for discussion- 6 3) Extension & farmer training proposed interventions : NERPO appreciates the draft extension policy, which i) allows for multiple role players in the provision of extension services, with government providing norms, standards and oversight; and ii) uses knowledge broker rather than subject matter specialist approach. NERPO strongly recommends that the proposed policy be implemented. NERPO calls for the implementation of vocational training institutions and programmes for farmers and technocrats in agriculture, which will allow them to acquire hands on experiential training.

Issues for discussion- 7 4) Industry matters: Independent meat inspection Pounds bill Marketing agencies bill Feeds & fertilizer bill