1. From Failure to Success in South African Agricultural Transformation
TR Ramabulana
CEO: NAMC
Tzaneen, Limpopo Province
17 May 2016

2. Failure
Yes you are right There are islands of success; especially in horticulture But they are few in a sea of poor performance or outright failure

3. Criteria for evaluating transformation has to be consistent with Inclusive Growth
Inclusive growth is the guiding principle of the National Development Plan and requires
Employment generation, as wage or self-employment on farms
Creation of livelihoods
Contribution to agricultural growth

4. Outline Conclusions Corporate governance and alignment Partnerships
Transformation and empowerment projects
NAMC supported projects

5. Objectives and Mandate
Mandate and Objective
Advisory body that advices the Minister of DAFF and DAG on all matters relating to marketing of agricultural products.
Increase market access for all participants.
Promotion of efficiency of marketing of agricultural products.
Optimise export earnings from agricultural products.
Enhance the viability of the agricultural sector.
NAMC Council Members
Mr. Andre Young- Deputy Chairperson & Acting Chairperson
Ms Mina Gill- Council Member
Mrs JM v/d Merwe- Council Member
Dr. John Purchase- Council Member
Mr. Andries Cronje- Council Member
Dr Litha Magingxa- Council Member
Mr. Augustinus Hendricks- Council Member
Ms Thami Zimu – Council Member
Divisions
Market and Economic Research Centre
Agricultural Trusts
Agribusiness Development
Statutory Measures
Corporate Services
2018/12/01

6. Partnerships NAMC Industry bodies (administrators of statutory levies)
Trusts
12 Industry Trusts
Current asset value amounts to a total of R2 424 million
Industry bodies (administrators of statutory levies)
18 industry bodies collected a total amount of R421 million in 2014

7. Origin of Statutory Funds
The MAP Act , provides the establishment of statutory measure in order to directly and substantially advance one or more of the objectives of the MAP Act, namely:
to increase market access for all market participants,
to promote the efficiency of the marketing of agricultural products,
to enhance the viability of the agricultural sector, and
to optimise export earnings from agricultural products.
One of the conditions for the approval of statutory levies is:
70% for functions such as research, information & generic promotions,
Max. 10% - spent on administration, and
20% - spent on transformation – the development of emerging agribusinesses in line with the AGRIBEE balance scorecard

8. Functions financed through Statutory Levies 2014
Amount spent R
Percentage of total levy expenditure
Administration
5,55
Transformation
23,21
Research
30,72
Local promotions
9,91
Export Promotions
14,50
Information
10,03
Quality control
4,28
Plant improvement
1,12
Production development
0,68
TOTAL
100.00
Levy income 2009 = R263 mil

9. Current Asset value (R)
Trust Name
(12 in total)
Administrator
Current Asset value (R)
Citrus Industry Trust
Dr Konani Liphadzi
Deciduous Fruit Industry Development Trust
Mr Anton Rabe
Maize Trust
Mr Leon du Plessis
Meat Industry Trust
Ms Alet du Plessis
Mohair Trust
Mr Deon Saayman
National Lucerne Trust
Mr Derrick Engelbrecht
Oil and Protein Seeds Development Trust
Mr Gerhard Keun
Potato Industry Development Trust
Ms Elsabe Els
Sorghum Trust
Winter Cereal Trust
Dr Simon Letsoalo
Wool Trust
Mr Andre van der Venter
SA Wine Industry Trust
Mr Charles Erasmus

10. Transformation and equity

11. Pessimists see a difficulty in every opportunity and optimists see an opportunity in every difficulty
- Winston Churchill

12. Examples of transformation projects funded by statutory levies
Citrus industry
Project title
Objectives and outcome
Number of beneficiaries
Amount (R)
Human Capacity Development: Citrus Academy
To address: low skills levels, employment equity, scarce and critical skills, land transition and quality skills delivery
Bursary Fund – 64 students (R1  )
Holiday work programme – 9 students
Industry exposure programme – 31 students
Internships – 10 students
1 925 000
Dairy industry
“Promoting of sustainable commercialization of existing black dairy farmers” project
To promote the development of existing black milk producers to become sustainable, commercial milk producers
Optimalize the level of milk production through the supply of cows
Optimalize the level of milk production through infrastructural and other support services
Up to 8 farmers in the Free State were assisted with electrification of farms, supplied with heifers, veterinary services and with market access. Through this project the farmers have created approximately 60 jobs. 8
4 900 00
Potatoes
Enterprise Development Programme
To assist in setting up, supporting and growing viable new black owned potato producing enterprises.
To develop an economic programme that is aimed at sustainable potato production by small holder farmers in order to utilise available land and assist to the maximum benefit of an integrated production system
To develop small holder farmers to grow and produce commercially in a sustainable way
To establish sustainable fully fledged commercial farmers 17
KwaZulu-Natal: 9
Eastern Cape: 6
Free State: 2
Limpopo: 1 3 

13. Cultivars Replacement
In 2009, the deciduous fruit industry started a project to establish ha of trees, including new cultivars, for black producers.
By 2013, the industry already succeeded to establish 400 ha.
The Western Cape DoA assisted the industry with soil preparation and irrigation.
In the table grape industry, 8 farmers were assisted to establish new cultivars on approximate 70 ha.
The aim is to establish approximately 40 ha per.

14. Lucerne Production Background Trust Intervention Progress
The Lucerne Trust is providing seed to black farmers (25 kg per ha)
Target area is Taung irrigation scheme where black farmers producing lucerne under irrigation (pivot system)
Trust Intervention Progress
The Trust has already assisted 40 farmers on a total area of 400 ha (10 ha per farmer)
An additional 20 farmers on a further 200 hectares will be assisted in 2016
Farmers also being assisted with harvesting and the marketing of their lucerne

15. Witzenberg empowerment model
45 empowerment projects in 1 Municipality;
Over 4000 ha of new orchards into production;
Projects throughout the value chain from primary production to marketing;
Export oriented industries;
All projects linked to an export value chain.

16. Agricultural Development Schemes
The schemes are designed and implemented to uplift the black producers in the agricultural sector and to encourage their integration into the commercial mainstream. This programme is driven to address food security and domestic market access. Designs are and guided by developmental impact and feasibility
Work in collaboration with different stakeholders:
Industries – for technical support
Provincial and national government departments ( DAFF, DRDLR) – farmer supports including extension services
Financiers – funding of projects
Government agencies (e.g. PPECB) – compliance and certification
Buyers – market access

17. Agricultural Development Schemes
The following projects will continue in the 2016/2017 financial year under irrigation
Product
Province
No of farmers / projects
Size
Market
Vineyard
Northern Cape
9 sub-projects
Target 500 ha of vines
Distell, OWK
NRMDP
Operational in KZN (5), EC (8)
2016 new sites
KZN – 5 additional CFPs
NW - 2
MP - 1
LP - 1
keep over per 90 days cycle
Formal (auctions & abattoirs) and informal markets
Carrots
Gauteng
2 farms
30 ha for the pilot
Mc Cain

18. Continues….
The following projects will continue in the 2016/2017 financial year under irrigation
Product
Province
No of farmers / projects
Size
Market
Dry beans
Limpopo
5 Farmers
80 ha
Tiger brands
Sugar beans
1 cooperative with 5 members
10 ha pilot
NTK
Vegetables
65 farmers
100 ha
fresh produce markets (JHB & Rhodes)

19. THANK YOU