1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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.

12. 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.

13. 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

14. 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

15. 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.

16. 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.

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