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"I have a dream, a song to sing
To help me cope with anything

"I have a dream, a fantasy
To help me through reality"

If all is awake ... yes, I dream on behalf of the people out there. In Deuteronomy you read of a land of wheat, barley and vineyards, fig trees and pomegranates. A land abundant with olive oil and honey, a land without poverty where food is enough and you will want nothing. This is my dream.

Agriculture produces for all, which is why agriculture brings about change in the lives of ordinary people. Agriculture produces food, clothing and work for all the people of the Western Cape.

The farmer's success is not his own. The farmer can only be successful if the land, the sun and the rain are merciful. Then the farmer can produce.

There are other risks:

1. The price/ marketing risk - deregulation, international markets and competition

2. Production or yield risk - drought, floods, hail, diseases

3. Institutional risk - change of policy and regulations, such as water legislation, property tax, capital gains tax

4. Exchange rate risk - rental payments is the second largest expenditure

5. Crime - more than 800 farmers have been murdered over the past three years. This sends a negative message to investors and discourages investments. The real sufferers are farm workers who lose their jobs.

6. AIDS - work losses and absenteeism impacts drastically on the economy

Throughout my speech, you will see how the budget has been allocated according to priorities. The divisions that received more funds will be able to produce more, calculated along current demands in agriculture.

Last year in my budget speech, I said that Agriculture will focus on four priority areas:

1. The promotion of international competition;
2. Services to new farmers;
3. The promotion of manual labour; and
4. Resource conservation.

One year later, I can table the results of those priority areas. But I can table more. I can table the addition of our commitment to rural development, which was accepted as a 10th priority of this government.

The world over there is evidence that countries that address poverty in rural areas, impacts more on national prosperity than countries that focus on urban poverty. One of our fiercest competitors in the international arena, Argentina, focused on developing the skills of their rural communities.

The 2001/2002 budget has been designed to mobilise growth in rural areas of the Western Cape. It addresses the following key issues:

1. International relations, with the focus on creating investment and growth opportunities for the Western Cape;

2. Creating jobs through rural development

3. Making agricultural training accessible to all the people of the Western Cape;

4. The establishment of new commercial farmers through land reform;

5. Disease control - to keep our people healthy; and

6. Protecting our natural resources through land care and water saving projects.

PRIORITY ONE: INTERNATIONAL COMPETITIVENESS

Let us look at our first key priority - the promotion of our ability to compete internationally. In 2001/2002, we want to focus more on exports and foreign investments.

Western Cape agriculture contributes between 55 and 60 percent to all SA agriculture exports, with the European Union the single most important destination. Over the past decade, termination of sanctions and liberation of trade contributed significantly to our export initiatives. Now we are in the post-sanction period. The window of new opportunities has reached its limit. Agriculture is now exposed to the harsh realities of international competition.

SUBSIDIES

For every US dollar received by farmers in South Africa, the government directly or indirectly subsidised only four cents. For Canada, USA and EU the government subsidised respectively 16,22 and 45 cents for every US dollar received by the farmers. This puts RSA exports at a disadvantage.

REALITIES OF INTERNATIONAL COMPETITION

One of the problems is downward pressure on the prices of commodity products. A second is strict sanitary and phyto sanitary regulations. A third is the massive number of exporters competing amongst each other. Fourthly, Free Trade Agreements create opportunities, but also major problems.

AN OFFICE IN EUROPE

In this year, Agriculture is launching a number of actions to address the above-mentioned problems. One is the establishment of an office in Europe.

For the Western Cape, it is strategically important to have regular access to first hand information about the latest EU regulations, protocols and product standards. In the recent past all agricultural offices in foreign countries have been closed down - a step that have cost us dearly.

At the Agriculture summit conference in 1996, the need for an EU agricultural representative was already identified. To compete successfully on EU markets, it is vital for the Western Cape to have representation in the EU.

We hope that this Western Cape government initiative will in time expand with an independent representative for agriculture. In addition, a representative will play an important role to research new market opportunities and tendencies, and to identify investment opportunities for the Western Cape.

EVALUATION OF FREE TRADE AGREEMENTS

Secondly, a representative will be able to pro-actively evaluate the impact of Free Trade Agreements to negotiate the best outcome for the Province.

Thirdly, we try to address the problem of downward pressure on commodities through product differentiation and opening up new markets. At a later stage, I will say more about legalising Organic Farming and Products of Origin.

In the last instance, it is absolutely necessary that we attract new foreign capital investments and that new technology and new markets accompany these investments. Agriculture can work closely with Wesgro in this regard.

INVESTMENT IN STERILE INSECT TECHNIQUE (SIT)

Question: When do you disinvest?
Answer: When you drop research.

Agriculture cannot afford not to invest in research. That would mean disinvesting in the economic future of this Province.

Lately it is specifically the deciduous fruit industry that has come under extreme financial pressure, as a result of deregulation and drastic decrease in product prices. Following insufficient funding a research initiative, the Sterile Insect Technique (SIT) came under so much pressure it would have been abandoned if an external funder could not be found.

Western Cape Government came to the rescue of the project and funded R1,5 million. We hope that this funding will contribute to keep the deciduous fruit producing areas of the Western Cape free of fruit fly. This is a method of stabilising our comparative advantage on European and other foreign markets.

At present, Agriculture is looking for additional funding to support our local deciduous fruit industries with research.

PRIORITY TWO: MONEY FOR JOB CREATION THROUGH RURAL DEVELOPMENT

The second priority in the coming year is the application of agriculture for the development and growth of rural areas. This is an issue requiring detailed planning and research. The Sub-Directorate Agricultural Economics and -Financing have the skills to contribute to this growth, especially by quantifying the impact of the rural development policy on Province's economic sectors and its people.

AGRI-TOURISM

In 2002/2002 approximately half a million rands will be spent on developing agri-tourism in the Western Cape.

Agri-tourism can contribute positively to maximise the use of natural resources, to stabilise farm income at micro-level and to contribute towards broadening the experiences of visiting tourists. This is some of the reasons why a project was launched to tap the potential of this alternative agricultural enterprise.

Within the arena of agri-tourism, the product/theme route phenomenon has a unique character in the sense that it combines three goals, namely tourism, sales of Products of Origin and product brand promotion.

A study of the Western Cape wine routes revealed various interesting facts about its modus operandi, and problems and achievements which is of significant value to groups that are interested in establishing similar routes. These four critical success factors were:

* The appointment of an enthusiastic and capable public relations manager to manage the specific theme route

* The establishment of a Forum where public relations managers can share information and ideas and learn from each other, thus avoiding the feeling of isolation;

* Close collaboration and co-ordination between the theme route and the local tourism bureau; and

* And the accessibility of wine facilities to tourists with specific reference to the hours/days open to visitors.

Based on these and other findings, Agriculture is at present researching the development of economic models for a variety of agri-tourism activities. These models will quantify development and operational costs for industries such as guesthouses, conference facilities and 4X4 routes.

With the Elsenburg Geographical Information System (GIS) this information on agri-tourism, activities will be charted. This will enable spatial analyses and co-ordination.

LEGISLATION FOR PRODUCTS OF ORIGIN

Consumers increasingly demand food that represents more than just a fuel. Many consumers want "quality" food and they are willing to pay a premium for it.

Quality can mean different things to different people. Quality can be in terms of health or food safety. It can also be in terms of nutritional or cosmetic value. Many consumers are demanding food that is produced in an environmentally friendly or humane way, without pesticides, hormones or GMOs.

This trend has been fuelled by recent food scares with which you are familiar, such as Mad Cow Disease and Foot and Mouth. Along with information on how a product is produced, consumers also want to know exactly where a product was produced. Consumers are increasingly looking for "authentic" or traditional food, food being wholesome, healthy and often symbolic of a cultural heritage.

From these trends, we can see that consumer preferences are changing, especially in the EU - our prime South African export destination. These changes present many opportunities to local producers, especially with the fierce competition in commodity markets.

For these reasons Agriculture has identified Organic Farming and Products of Origin as avenues for local product differentiation. Both command premium prices, with Organic farming having further environmental benefits. Agriculture is at present preparing the institutional framework to enable producers to market these niche products.

Products of Origin have spin-offs for the rural economy such as tourism and rural development in terms of rural cuisine and crafts. Products of Origin also encourage cultural identity and traditions. Agriculture is investigating the institutional framework appropriate for the local producer and in terms of future trade.

PRIORITY THREE: TO MAKE AGRICULTURAL TRAINING MORE ACCESSIBLE

The 2001/02 budget for the Directorate: Training amount to R10,3 million. The division Higher Education received R2,6 million operating capital, while the division, Continued Education and Training received a R1,33 million allocation. However, this funds for training is still inadequate because infrastructure still needs to be instituted.

This year's budget allows for the training of 20 more students for the Higher Certificate training program, an increase of 20%, from 100 to 120 students.

NEW COURSES FOR HIGHER EDUCATION

We should not underestimate the large contribution of Elsenburg Agricultural College to the pool of agricultural skills to this Province and South Africa.

The College has a renowned history of service to agriculture. Courses are continuously adapted and new courses developed to ensure that Elsenburg Agricultural College remains the leading training institution in South Africa.

This year two courses will be added to the curriculum:

The one is a specialisation course in Extension Services for third year students. This will enable students with a two-year Higher Certificate in Agriculture to specialise in extension services. Successful students will receive a nationally acclaimed Diploma in Agriculture (Extension Services). This will make Elsenburg Agricultural College one of a few Higher Education institutions offering agricultural guidance as a major.

The second course is Agri-Tourism, which will be offered for the first time this year for the acquisition of the Higher Certificate in Agriculture. From next year, the study field will expand to a specialisation course in the third study year for a Diploma in Agriculture (Agri-Tourism). In this way, we empower our students to tap the exciting opportunities for agriculture in the tourism industry.

CONTINUED EDUCATION

Elsenburg Agricultural College supports the philosophy of "lifelong learning and outcome based education".

We offer short courses to ensure that farmers, their managers and farm workers stay ahead with the latest information.

Over the past year, we focused on the training of new and emerging farmers. Owing to budget constraints, it took a long time to make these initiatives a reality. The allocation of R1, 2 million for the 2001/02 year will help to mobilise this training.

Over the past year, we trained 524 farmers from disadvantaged communities with 45 courses in ten study courses.

To date extension officers and researchers that work for the Chief Directorate: Agriculture offered these courses. With this year's budget, we will appoint specialist course leaders to train new farmers and to focus on courses that support the land reform program.

As in all sectors, there is also in agriculture an urgent demand for training. It is not only new farmers that need training. Farm workers training have not received the sufficient attention.

This year we will expand training and short courses to farm workers. We will try to increase the number of students with 30%, from 1000 to 1300.

PRIORITY FOUR: MONEY TO ESTABLISH NEW FARMERS THROUGH LAND REFORM

In South Africa, it is necessary to correct land ownership imbalances and to empower previously disadvantaged farmers. Land reform should be planned and implemented responsibly, constructively and in good time by all role players in a fashion conducive to local and international investment.

Stable land values are one of the most important factors that will influence agricultural business confidence. It is deemed necessary to maintain credibility concerning the realistic market and production value of agricultural land. The concept of willing buyer, willing seller should be applied. Expropriation should be the last alternative and then still at realistic market prices. Politics should not deliberately force market prices lower.

The Western Cape endorses the national land reform policy and is committed to agricultural land reform.

Together the Chief Directorate Agriculture and the Provincial Land Reform office finalised the implementation procedures of the Land Redistribution for Agricultural Development (LRAD) for the Province.

PRIORITY FIVE: DISEASE CONTROL - TO KEEP OUR PEOPLE HEALTHY

Establish statutory rights for Veterinary Services In the past year, the Provincial Directorate Veterinary Services have been exceptionally successful with:

* Controlling the outbreak of African Horse Disease;

* Preventative vaccination against rabies; and

* The application of new requirements against Newcastle-disease for the continued export of ostriches and ostrich products.

At present, the National Directorate Veterinary Services certifies animals and animal products for export purposes, but it is critical staff shortages that slows down the process.

To speed up this process, Agriculture is looking into a provincial import and export control office for animals and animal products. With such a client service, we will be able to deliver a more personal and effective service to the livestock industry, which is growing into an increasingly important industry for the economic growth of the Western Cape. Officials of Agriculture in this Province have the skills and administrative capabilities to execute such a task.

Should a provincial import and export control office prove to be a successful venture, it may be the forerunner of a provincial export office for all agricultural products and also liaise with the Department of Trade and Industry.

The aquaculture industry in the Western Cape excites a great deal of interest and is growing rapidly. Currently we are researching the production of fresh water fish as a profitable commercial industry for rural areas. At the same time, it is a creative and alternative method to use farm dams. To this end, we have appointed a specialist aquaculture vet in the Provincial Veterinary Laboratory.

PROMOTE COMPREHENSIVE ANIMAL DISEASE CONTROL STRATEGIES

All over the world, there is an intensifying consumer awareness of animal health. What are we doing in the Western Cape to ensure that our people eat safe meat?

The Directorate Veterinary Services monitors all commercial stock in communal and informal settlements for tuberculoses and brucellose. Animals that test positive are immediately killed.

We inspect all ostrich units and vaccinate birds for Newcastle disease. Before slaughtering, we treat birds for external parasites such as the bont-legged tick.

At all our registered abattoirs, animals are examined before slaughter and all carcasses and offal inspected for diseases of any kind. We monitor abattoir premises for hygiene and offal control.

State vets regularly visit farms and stockowners and offer organised training on preventative disease control programs.

A foot-and-mouth disease task group drafted a five point emergency plan for the Western Cape. This plan has been constructed in such a manner that it can be applied with outbreaks of any zoonotic diseases in future.

In this way, Agriculture transformed an almost disaster into a great opportunity for the Province. With the current foot-and-mouth disease crisis in Europe and all over the world, we can see the pace at which this disease spreads. In retrospect, I think we can look back with the knowledge that we combated foot-and-mouth successfully from this Province and that our officials are sufficiently skilled on international level. Congratulations.

This success we have achieved with as little as fifteen state vets. To avert this kind of disaster in the Western Cape in future, we must address the expansion of our undermanned staff.

PRIORITY SIX: THE CONSERVATION OF OUR NATURAL RESOURCES

LAND CARE PROJECTS

The objective of Land care projects is to create infrastructure for poor emerging farmers to be able to practise sustainable agricultural with available resources. Further objectives are to empower farmers with applicable training and to create work for jobless people in surrounding communities. National and provincial government funds these projects.

At present, the Western Cape operates nine Land care projects. In the past year, R800 000 has been spent on infrastructure and labour.

We have presented additional 6 Land care projects to the National Department of Agriculture.

Province qualifies for only R300 000 per project per year.

MORE EFFECTIVE USE OF WATER

Actions to improve the more effective use of water is one of the methods that the Sub-Directorate: Agricultural Engineering Services use to conserve resources.

Agriculture launched a program in the most important agricultural sectors of the Province to assess the scope of water usage through irrigation. The program also determines how much fruit every cubic measure of water produces. Currently the program is applied in four regions, namely De Doorns (table grapes), Worcester (wine grapes), Ceres (pears) and Stellenbosch (plums).

REDUCTION IN INPUT COSTS

At the beginning, I said that success in Agriculture is determined by balancing input and output costs.

The only way, in which wheat farmers that primarily work with a commodity product can survive financially, is by reducing input costs.

Agriculture is actively involved in this action through conservation farming. The changeover from conventional farming to conservation farming can be very expensive and have prevented many farmers from switching over.

However, the change to conservation farming can reduce mechanical input costs with 40%. Agriculture has persuaded many farmers in the Western Cape to change over by re-building implements for conservation farming purposes.

CONCLUSION

The time is over where size counts. In the past larger entities devoured the smaller ones. We live in a time where time is the determining factor - it is the fastest that will overtake and lead the way, not the largest.

This budget encompasses the ten policy objectives for the people of the Western Cape. I believe the allocation of funds according to priorities, commits us to specifically address key issues in our rural areas in the fastest and most effective manner possible.

Together with the Premier, Agriculture is working to by the year 2020 make the Western Cape the most sought after place to live, to work, to visit and to invest. This is not a dream, but a vision towards which we work every day for all the people of the Western Cape.

Issued by: Office of the MEC for Agriculture, Property Management and Works, Western Cape, 28 March 2001