1. Status of Transformation in the Subtropical Industries Derek Donkin Subtrop Transformation Summit 17 May 2016

2. DEFININTION OF TRANSFORMATION Broadly speaking: Transformation is increasing the participation of black people throughout the value chain in the Subtropical industries.

3. What are the “Subtropical Industries”?

4. NAMC’S ACTIVITIES REGARDED AS TRANSFORMATION PillarActivities (examples)Percentage 1. Enterprise development  Production material/inputs  Extension services  Mentorship  Soil preparations  Accreditation (certification for accessing export markets)  Market facilitation (Assist smallholder farmers to access the markets)  Business plan development  Industries to assist black farmers to gain access to finance More than 50% 2. Skills development  Bursaries  Farmers and other role players in value chain  Farm workers (if motivated properly due to AgriSETA cuts) Approximately 20%

5. NAMC’S ACTIVITIES REGARDED AS TRANSFORMATION ctd… 3. Employment equity  To promote equity in the workplace Approximately 30% 4. Management control  Salaries for transformation managers 5. Preferential procurement  Procuring from Black owned enterprises/businesses (QSE’s/EME’s) 6. Socio Economic Development  Provision of good housing, clean water, sanitation, electricity, recreation facilities and health care programmes 7. Ownership  Increase level of entitlement of Black People to participate in the Economic Interest

6. Headline stats Subtrop industry headline stats AvocadoLitchiMacadamiaMangoTotal Area under production (ha) 15 5001 73020 0007 00044 230 Annual production (t)115 000500040 00075 000235 000 Annual valueR1.3 bil.R120 mil.R3.5 bil.R320 mil.R5.24 bil. Employment±5 100±2 400± 8 000±3 000±18 500 Commercial growers±340±100±500±120±1060 Emerging growers±60±30±110±70±270

7. Black owned land under Subtrop crops Analysis of black owned land Commercial (ha) Restituted (ha) % RestitutedCommunal (ha) % CommunalTotal % black owned Avocado 15 500 9846.3% 1 88312.1%18.5% Litchi 1 730 41524.0% 18010.4%34.4% Macadamia 20 000 8814.4% 1 0365.2%9.6% Mango 7 000 2 06829.5% 1 25417.9%47.5% TOTAL 44 230 4 3489.8% 4 3539.8%19.7%

8. Aim in transformation Commercially viable black participation in the value chain SAMAC’s medium term transformation goal: To have 2000 ha of commercially viable, black owned macadamia orchards in the South Africa by 2025. A commercially viable black farmer is defined as one that produces 40 tons or more or at least 3 t/ha of nut in shell.

9. Thank you