1. Konanani Liphadzi Subtrop Transformation Summit 17 May 2016 Tzaneen, Limpopo

2. Content FSA Structure FSA Vision, Mission & Objectives FSA Key Priorities Transformation in the SA Fruit Industry Conclusion

3. Fruit SA Structure FSA was established in the early 2000’s as an umbrella organisation for the different fruit sectors. In 2013 Fruit South Africa was formalised as a not for profit company.

4. Fruit SA Board of Directors: transformation in action! 2015 Mr A Rabe: HORTGRO (Chairman) Mr D Donkin: Subtrop Mr A Kruger: FPEF Mr W Bestbier: SATI Mr J Chadwick: CGA 2016 Mr A Rabe: HORTGRO (Chairman) Mr D Donkin: Subtrop Mr A Kruger: FPEF Mr W Bestbier: SATI Mr J Chadwick: CGA Ms B Njobe: Independent

5. Fruit SA Vision & Mission Vision A competitive, equitable and sustainable SA fruit industry. Mission FSA creates and facilitates a competitive, equitable and sustainable environment for its members.

6. Strategic Objectives Establish FSA as the collective platform for the fruit industry of SA Engage constructively with government and other public institutions on policy, legislation and other fruit industry matter. Engage constructively with other strategic stakeholders Promote and coordinate broad based BEE, transformation and skills development Gather and disseminate key industry related information Communicate industry information to broader public and industry stakeholders

7. Key Priories Market access and Trade enabling Government policy and legislation Infrastructure Information Technology Agricultural education and training Biosecurity Institutional arrangement Brand Fruit SA

8. Transformation in the SA Fruit Industry

9. The Case for Transformation SA’s Triple challenges: 1.Unemployment – 26.7% - highest since 2008 – Youth unemployment at 46% 2.Poverty – Stats SA (2015) - 21.7% of South Africans live in extreme poverty, not being able to pay for basic nutritional requirements (2100 calories/day) – Living on R335/person/month

10. 3. Inequality – SA ranks as one of the most unequal countries in the world Oscar Maile - 29- year-old homeless & jobless The Case for Transformation

11. SA have passed the stage where business or industries’ need to transform is based on the need to comply with government legislation or requirements Transformation is both a moral and business imperative in South Africa Inclusive participation and ownership by all people is critical for the growth and economic sustainability of the fruit industry

12. The Case for Transformation Using the analogy of the egg above, if the fruit industry does not take the lead and drive the transformation agenda, transformation will be forced on us and – we might not like the outcome.

13. Minister’s Budget Speech: 21 April 2016 “Our vision for the agriculture, forestry and fisheries sectors is food security for all, creation of one million jobs by 2030 as outlined in the National Development Plan (NDP) and to increase the contribution of these sectors to the GDP”.

14. The Fruit Industry’s Opportune Position

15. Fruit Industry is positioned to assist government in achieving its critical objective of transforming the sector. We have the skills, financial and human resources, networks, market intelligence, etc. to work with/mentor/guide black farmers and beneficiaries to become commercial farmers in their own right. The Fruit Industry’s Opportune Position

16. Where do we start?

17. Where are we? Baseline data 4.4 million tons of fruit is produced annually Market segmentation of fruit produced How much of the fruit produced is from black farmers What % of export is from black farmers?

18. Area Under Fruit Production Subtropical fruits not included (36 700 ha)

19. Area Under Fruit Production

20. Job creation & Employment 165 000 people directly employed (10% contribution) 8 000 people directly providing services to the fruit industry 109 000 people employed in downstream service Contribution to the Economy 50% of all agricultural exports from SA is fresh fruit An annual turnover of R30 billion Fruit Industry Stats

21. Where are we going? Goals S pecific M easurable A ttainable R ealistic T imely ‘You can not be everything for every body at the same time’ KL I want to loose weight one day!

22. The Call for Transformation is Urgent! DM Cele budget vote Speech NCOP: ‘The commemoration of 20 years of our constitution can no longer be on paper but it must be seen, felt, heard and held in high esteem by fellow South Africans’. Impatience is growing over the Snail Pace of Transformation

23. How do we do this? Need to think out of the box Transform small into big? Need innovative & relevant solutions E.g. A fruit buyer in India supplied by 5 million farmers – How do they make it work? – Managing quality and consistency?

24. Partnerships Not a one man’s job: – Private-Public-Partnerships

25. Analogy of Eating an Elephant

26. Eating an Elephant One bite at a time!

27. Conclusion The labour intensiveness and growth potential of the fruit industry presents an opportunity for job creation, poverty alleviation and overall contribution towards rural economic development This can only be fully realised through Private-Public-Partnership

28. Conclusion

29. Thank you