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31 May 2005

Madam Speaker and Deputy Speaker,
Honourable Premier,
Chairperson of the Portfolio Committee and Honourable Members,
Director-General,
Colleagues,
Ladies and Gentlemen,
Comrades and Friends

Today, 95 years ago the Union of South Africa was formed, laying the foundation for apartheid South Africa. The economic strategy of the Afrikaner within the Union was straight forward. The most important source of funds for Afrikaner nationalism came from Afrikaner farmers. Immediately after the formation of the Union, the concentration of agricultural capital was characterised by the rapid development of the Agricultural Co-operative Movement.

The 1913 Natives Land Act was a major part of the plan that disempowered indigenous South Africans by robbing them of their birthright to land.

Today, during the year of the popular mobilisation to advance the vision of the Freedom Charter, the restoration of the economic heritage of Africans in particular and black people in general remains the thrust of all our programmes. black economic empowerment (BEE) is but one of a range of interventions designed to transform our society away from the past.

Madam Speaker and honourable members, in his speech to the National Assembly in February this year, President Thabo Mbeki said that the firm foundation that was laid during the first ten years of freedom must help us to take detailed practical steps to achieve better results today and tomorrow than we did yesterday. He further indicated that during each one of the years that make up our second decade of liberation, we must achieve new and decisive advances towards among others:

* Transforming our country into a genuinely non-racial society;
* Transforming our country into a genuinely non-sexist society; and
* Eradicating poverty and underdevelopment within a context of a striving and growing first economy and the successful transformation of the second economy.

It is along these lines Madam Speaker, that the 2005/2006 budget allocation for Vote 12 will be utilised. For the current fiscal year, the allocation is R116,125 million. This represents an overall increase of 4% as compared to the allocation for the 2004/2005 financial year. The allocation will be utilised as follows:

An amount of R28,794 million has been allocated for Programme 1: Administration.

Sustainable Resource Management will receive an amount of R10,323 million. This programme will provide agricultural support services to farmers in order to ensure that there is sustainable management of agricultural resources. This total allocation includes conditional grant funding of R2 million for Land Care.

The sum total of R44,007 million will be spent on Farmer Support and Development. This programme will provide extension and training to farmers with special emphasis on developing emerging farmers, implementation of the land reform programme and agricultural rural development projects. R17,948 million of this allocation is earmarked for the Comprehensive Agricultural Support Programme, R3,172 million for provincial infrastructure development and R3,5 million for Food Security Projects.

Veterinary Services will receive an amount of R16,830 million. This programme will provide veterinary services that promote sustainable economic growth through exports and imports and, ensures the health and welfare of people and animals in the Northern Cape.

Technical Research and Development Services will benefit by R13,278 million. This programme will render an agricultural research service and development of information systems with regard to crop production technology, animal production technology and resource utilisation technology.

R2,090 million has been allocated to Agricultural Economics. This programme provides economic support to internal and external clients with regard to marketing, statistical information including financial feasibility and economic viability studies.

Madam Speaker, the imperative for more efficient and effective service delivery is a challenge, which the Department has embraced. The budget allocated according to the mentioned programmes will allow us to implement our commitments as stated in the Provincial Growth and Development Strategy and more specifically the sector plan.

Provincial Growth and Development Strategy (PGDS)

In response to the imperative and objectives of the PGDS, the department has started to develop customised sector specific strategies and has so far worked closely with sector partners in developing commodity specific action plans in accordance with both the Sector Plan and PGDS objectives for growth and equity in these industries.

Madam Speaker, allow me then to go into some details about our commitments in the PGDS and Sector Plan as outlined in our strategic plan over the MTEF period.

Enhancing equitable access and participation

Land reform

This programme, Madam Speaker, is recognised as the major driver of socio-economic development in South Africa and it provides the poor and disadvantaged with an opportunity to acquire land as an important asset. Within the Northern Cape, land reform is regarded as a mechanism by which the development of land provides an improved quality of life to all the residents of the Province, and therefore, it is necessary that it becomes integrated and an essential part of the overall Provincial Growth and Development Strategy.

To this end:

* To guarantee that land reform remains a key programme within the growth and development strategy of the Northern Cape Province, the Land Reform Co-ordinating Committee (LRCC) was revived to provide a structure through which all land reform projects can be channelled to enable co-ordination and effective implementation especially with regards to the settlement of rural restitution cases.
* As part of the Province’s contribution to fast track the settlement of the outstanding restitution claims, five interns were seconded by the Department to the Regional Land Claims Commission (RLCC) to assist in this regard
* A total of 2 744 restitution claims were lodged by 31 December 1998
* To date, 1 627 restitution claims have been settled of which 1 176 were urban and 451 rural claims
* 40% of the CASP budget for 2004 was allocated for the post settlement support to restitution cases such as Majeng and Khuis
* 37,9 hectares of irrigation land were allocated to 18 women in 2004
* 34,2 ha to 14 women in Hartswater, and
* 3,7 ha to 4 women in Vioolsdrift
* 4 045 hectares of agricultural state land were allocated to one Agri-BEE Company.
* Under the Land Redistribution for Agricultural Development program, 12 projects totalling 41 303 ha were approved, benefiting 198 households.
* The breakdown in terms of district is as follows:
1. Frances Baard – 108 ha and 112 beneficiaries
2. Pixley Ka Seme – 30 299 ha and 32 beneficiaries
3. Siyanda – 3 742 ha and 54 beneficiaries
4. Namaqua – 7 154 ha of commonage

Madam Speaker, in line with the new deadline set by our President with regard to the finalisation of the 1 117 outstanding restitution cases, the Regional Land Claims Commission has developed the following implementation plan:

* The remainder of the urban claims (723) will be settled by the end of December 2005
* The 394 rural claims remaining will be settled by March 2008. The following claims will be settled by end of March 2006:

1. Smauswane
2. Droogfontein
3. Sydney-on-Vaal
4. Pniel
5. Kakamas
6. Dikgweng

* In support to the restitution programme, the Department has committed 45% of the annual CASP allocation for post settlement.

The announcement by the President to extend the lifespan of the Commission by another three years is a welcome relief. The Commission has now until 31 March 2008 to finalise all outstanding claims. The bid to reverse the 1998 cut-off date will not be successful.

The following reasons were given to have the cut-off date nullified:

* That claimants were not properly informed about the process;
* Ignorance, age and illness prevented some people from participating;
* Some people were misled by their leaders who did not have faith that government could meet their demands; and that
* Government did not properly educate citizens about their right to lodge the claims.

For now, the cut-off date for the lodging of late claims will not be extended. It is for this reason that we condemn the actions of people that purport to be acting on behalf of the Commission in sourcing late claims. The office remains confident that the outstanding claims lodged before the cut-off date will be finalised within record time.

Madam Speaker, approximately 300 000 hectares of state land will be disposed of to emerging farmers and communities by March 2006. About 109 000 ha of these will be made available as alternative land for the settlement of the Richtersveld claim.

Madam Speaker and honourable Members of the House, I called upon commercial agriculture last year to join Government in making sure that land reform becomes a success. It is our belief that through mentorship, emerging farmers can succeed in becoming active participants in the agricultural economy of the Province.

The following contributions by the Dorperland Dorper Club of South Africa and the Calvinia Boere Unie are a manifestation of our vision of a united and prosperous agricultural sector:

* 29 rams donated to emerging farmers for small stock improvement
* nine ewes and one ram donated to the Helpmekaar land reform projects for beneficiaries who are all differently abled.

Such actions are an extolment of the virtues of a new South Africa that belongs to all who live in it.

Madam Speaker, FARM Africa has partnered the department in ensuring that land reform beneficiaries at Kopano Small Farms, De Banken, Blucuso, Beeshoek, Campbell Farmers Commonage and the commonage in Barkley West, receive post settlement support. This support includes training of beneficiaries and official on participatory project management, community facilitation, group dynamics and natural resource management.

We also welcome FARM Africa’s research report titled ‘Key experiences of land reform in the Northern Cape Province’. This report will assist the department and other stakeholders in successfully implementing post settlement support.

Comprehensive Agricultural Support Programme (CASP)

The implementation of the Comprehensive Agricultural Support Programme (CASP) is indicative of a serious commitment that government has undertaken on agricultural development and support. This programme is the central focus for the Department, targeting beneficiaries of land and agrarian reform. CASP is the response to the lack of an adequate provision for agricultural development.

During 2004/05, infrastructure (on-farm and off-farm) was identified as one of CASP’s key priorities, and financial resources were allocated for this, targeting poor areas. The province managed to spend 92% of the R10,518 million CASP budget by the end of March 2005 whilst 297 jobs were created.

* For the 2005/6 financial year, 26 projects will be implemented with a conditional grant of R13,148 million.
* Training and capacity building will be provided to 620 participants according to the identified needs to the amount of R 815 000.
* An amount of R 8,104 million will be spent on On-farm infrastructure development. This will include the drilling of boreholes; stock watering systems; fences; drainage systems; poultry houses; repair of reservoirs; solar driven submersible pumps; wind mills and centre pivots.
* R 3,277 million will be availed for financing mechanisation as part of CASP in an effort to assist in the buying of tractors and implements.
* A total of 777 people, mainly land reform beneficiaries, will benefit from this programme, with the creation of 637 jobs.
* Land Redistribution for Agricultural Development (LRAD – 141 beneficiaries
* Restitution – 334 beneficiaries
* Standard Land Acquisition Grant (SLAG) – 198 beneficiaries
* Commonages – 80 beneficiaries
* State land – 21 beneficiaries
* Other government funded projects – four beneficiaries

AgriBEE

In September 2004, the Department launched the Agri BEE Framework and invited various sectors in the province to submit inputs. The inputs have been submitted to the National Department of Agriculture and the Charter is in process of being finalised.

We will continue to engage stakeholders and various industries in the agriculture sector for purposes of implementation. While still waiting for finalisation of the charter we will continue with other BEE initiatives, e.g. Commercialisation of Goats, Orange River Emerging Farmers Settlement Programme, establishment of women in Beef cattle farming.

Micro Agricultural Finance Scheme of South Africa (MAFISA)

The Agriculture Credit Scheme is a government intervention to spread micro-credit and saving services to economically active, poor rural people and households, small farmers and agri-business.

The scheme will contribute to structuring the extension of financial markets and economic growth, increasing employment in the rural areas, reducing migration to urban centres, reducing poverty and inequality in land and enterprise ownership with emphasis on women, youth and disabled.

The scheme will be aligned to other government programmes that offer support to farmers, such as the land redistribution for agricultural development (LRAD) programme.

Orange River Emerging Farmer Settlement (OREFSP)

In line with the PGDS, a development corridor along the Orange River has been crafted and is called the Orange River Emerging Farmer Settlement Programme. This programme will look at irrigation development along the Orange River and the projects include:

* Goodhouse
* Henkries
* Pella
* Blucoso
* Tumelo trust
* Riemvasmaak
* Karoo irrigation project
* Bucklands
* Siyathemba.

A turnaround strategy for Goodhouse irrigation project is being developed. The stakeholders involved in the development of this strategy include the Department, farmers themselves, Nama Khoi Municipality and Land Bank and we hope to involve other role players such as IDC and NCEDA.

Global competitiveness

Export readiness

The relationship of the Northern Cape, SA Agri-academy and European partners (including Fair Trade) has resulted in the following:

* Project proposal submitted for funding
* 15 emerging farmers in Northern Cape trained on export requirements
* A workshop organised by Fair Trade for the farmers (both commercial and emerging) in Upington.

The partnership between the Department and SA Agri-Academy was formalised in January 2005. This partnership makes provision for 15 emerging farmers and five mentors to undergo training in marketing of agricultural products and traceability, in order for them to compete in the global markets. The mentors have been selected from the beneficiaries of the five identified projects that are participating in the training programme.

Madam Speaker, I am happy to announce that the 15 farmers and five mentors already started their first block training from 9 to 13 May 2005. The second and third blocks of training will take place in August 2005 and October 2005 respectively. The following enterprises were selected:

* Vegetable production – Moreletsoa Hydroponics project in Kimberley and Snapshot vegetable garden in Richmond.
* Grape production – Tumelo Youth Trust in Groblershoop
* Flower Bulb project in Nieuwoudtville
* Rooibos tea – Suidbokkeveld.

Commercialisation of the goats

Madam speaker, in 2004, I committed our Department to spent R2 million for supporting emerging farmers in participating in the commercial goat industry and export market. I can today report that we:

* Took over the animal production aspect of the project from Kalahari Kid Coop while KKC continues to handle the marketing aspect of the project
* Established a breeding goat-herd at our research station (Koopmans-fontein)
* Registered 24 farmer co-operatives and, we will in 2005 assist about 50 farmer groups to register as co-operatives
* Trained 248 goat farmers (skills and learnership training that is PAETA accredited) and provided them with animal health starter packs.

The goat offspring at our research station will be used to upgrade the quality of goats of the emerging farmers and for the establishment of emerging stud breeders through the Livestock Improvement Programme.

The project on the commercialisation of goats has been identified as an agricultural anchor project that will promote the implementation of the strategies indicated in our Provincial Growth and Development Strategy (PGDS).

Veterinary services

Madam Speaker, expenditure in Veterinary Services has a direct bearing on agriculture’s ability to provide safe and nutritious food to the public in the Northern Cape as well as South Africa’s ability to take advantage of trade opportunities. The challenge that the department is faced with is to ensure that this service provided is delivered at a professional level and that its provision must meet international standards.

In order to make sure that we do not fail in executing this obligation an amount of R5,27 million in the budget has been set aside to complete the improvement of veterinary services in the Province by March 2006. This amount will be used as follows:

* R2 million for the Animal census and disease surveillance which will be conducted during May to December 2005. The recent outbreaks of Anthrax and Avian Influenza necessitated our vet services to conduct surveillance on various diseases with particular reference to Transboundary animal diseases, in order for us to protect the animal population against diseases and to maintain our export status. Madam Speaker, it is important for the house to note that the current national ban on exportation of ostrich meat, led to serious financial losses (which has to date, according to the industry led to the loss of R300 million and 500 jobs in the country) and we will in the near future, in collaboration with the national department explore the possibility of regionalisation for us to be able to start exporting ostrich meat again.

* R0,7 million for the implementation of a food safety campaign that will be launched in June 2005. The campaign will enlighten our school kids, SMMEs, producers, abattoirs, etc on safe production and handling of food from farm to fork. The project will run until the celebration of World Food Day on 16th October 2005.

* R1,05 million will be used for equipping the newly renovated Veterinary Laboratory in Kimberley. This facility will support the early detection and prevention of animal diseases in the Province.

* R0,9 million will be used for the promotion of primary animal health care project in rural communities. Madam Speaker, we do acknowledge that communities in rural areas do not have access to primary animal health care and we hope that the implementation of this project in collaboration with private vets and NGOs will promote primary animal health care in our rural communities

* R0,4 million will be used to evaluate and improve on the hygiene status of the abattoirs in our Province and, we hope that the abattoir owners will cooperate with the officials

* R0,2 million will be used by September 2005, to evaluate the export readiness of emerging red meat producers. Our recent visit to Luxemburg and Brussels resulted in identification of several export opportunities especially for our emerging farmers. It is therefore befitting that we implement such a project to assist our emerging red meat producers. This project will include the implementation of an individual animal identification system in a small scale so that we can address the adequate traceability system as required by the EU. This will further allow emerging farmers to supply and slaughter animals through the currently approved EU abattoirs.

Research and Development

Madam Speaker, it is acknowledged internationally that Research is a critical area for developing and investigating new agricultural technologies for competitive participation in the global markets.

In 2004, our department received the ARC/ABSA award for farming with the best Bonsmara stud herd in the Province. Further, we co-hosted together with Northern Cape Red Meat Producers Organisation, a beef and small stock conference whereby international experts attended and visited farms in the Province.

Madam Speaker, it is imperative for us to conserve certain indigenous breeds that have been unfortunately portrayed as being inferior. Some of these breeds such as the Nguni cattle have proven that they produce excellent quality of meat and can compete with other known breeds in the market.

We will therefore in 2005, establish Nguni herd at our research farm, and we will together with IDC, NCEDA, ARC and University of Free State develop a programme that will assist land reform beneficiaries with access to Nguni cattle.

Agro-processing initiatives

The Department is currently investigating the possibility of establishing an Advisory Board and an Advisory Service Centre that will advise our farmers and entrepreneurs in agro-processing ventures. This Centre will also analyse possible international markets that will inform the trend of agricultural production in the province. The recent interaction with international partners during the visit to EU countries has resulted in several export market opportunities.

Ten years ago the table grape industry was a booming industry, but lately the industry is experiencing financial difficulties and struggling to break even. As an intervention measure, the department will engage the industry, research, development and financial institutions for possible solutions. Myself and Minister Didiza will visit and meet with farming stakeholders on Friday, 3 June 2005 in Upington.

Sustainable resource management

This year the province will, implement 15 Landcare projects to the value of R2 million. 150 jobs will be created and 714 farmers will benefit. The following is a breakdown of the allocated amounts:

* Siyanda – R138 000
* Kgalagadi – R216 000
* Namaqua – R1, 303 million
* Pixley Ka Seme – R345 200.

The Civil Society Mobilisation Programme, which will be rolled out in June 2005, will amongst others increase awareness on Landcare and CASP, and by so doing promoting the sustainable use of the natural resources.

Madam Speaker, in the two previous financial years, severe drought conditions were experienced by the province and this has adversely affected our farmers. The Department received an amount of R26 million in the 04/05 financial year as a relief fund for the affected farmers.

From the administration of the fund, Madam Speaker, the allocation benefited 2 612 emerging farmers as compared to 450 in the previous scheme.

As a way of improving on the management of agricultural risk and disaster the following will be pursued:

* training of farmers and constant advice on proper veld management practices
* development of disaster management policy and contingency plans
* monitoring of rainfall and weather patterns
* research on grazing capacity norms.

Food security

Our target of reducing hungry people by half in the year 2014 is on track, and Madam Speaker, if we fail to realise this our future generations will go hungry. There will be continued rural to urban migration thus loosing the vital farming skills needed. There will be continued unemployment and poverty with no hope of development. The province has establish an integrated structure that consists of Agriculture, Social Services, Health and Education departments whose function is to coordinate and ensure effective implementation of the programme.

Madam Speaker, food security in general and good nutrition in particular is an integral part of our response to diseases including HIV and AIDS.

As part of our contribution towards the implementation of the Integrated Food Security and Nutrition Programme in 2004/5, we managed to spend R800 000 on the establishment of 11 viable food security projects. 87 beneficiaries and 3 schools benefited from this intervention.

The Department has for the 2005/6 financial year, budgeted R3,5 million for Food Security programme, and it will be spent as follows:

* R1 million for starter packs for 500 households and goat management kits for 30 goats co-operative,
* R150 000 starter packs for 100 schools
* R90 000 starter packs for 60 health centres/clinics
* R900 000 for processing projects
* R1 million for viable projects
* R260 000 for milk goats starter packs to 10 schools
* R100 000 for world food day celebration and school garden competition (leverage fund).

Training and Capacity building of emerging farmers

Training and Capacity building of emerging farmers will be done in collaboration with PAETA and the Department of Labour. The training will cover various aspects of production, marketing, financial and business management and conflict resolution. About 200 farmers are envisaged to participate in the training and 40 goat farmers will be trained at our research stations.

Consultative Farmers’ Summit

Regional emerging farmers’ summits will be held during the second quarter to institutionalize emerging farmers into formal structures.

Female Farmer of the Year Competition

Madam Speaker, I am proud to announce that Minister Thoko Didiza has identified our Province as the host of this year’s function for the National Female Farmer of the Year Competition. This award ceremony will be held in Kimberley on 27 August 2005. The Provincial event will also be staged in early August.

Madam Speaker, the glimmers of hope in agriculture are aplenty. Our devotion to the national liberation shall not be deterred by the challenges that at times threaten to derail us. Our vision of humanism and people centred development must also concern itself with reshaping the inhumane conditions that many farm dwellers still endure. The racially motivated acts of aggression that are orchestrated against our countryside masses must be eliminated for all to enjoy a just and fair society.

We will continue to do our bit in empowering the differently abled, youth and women for the economic inclusion of target groups in all our programmes.

Madam Speaker, I take pride in paying tribute to the agricultural community in supporting us in our endeavour of ensuring that the Northern Cape makes a significant contribution towards African agriculture.

Finally, Madam Speaker, I wish to extend my gratitude to the Honourable Premier, colleagues in cabinet, chairperson of the portfolio committee and members of the legislature for their guidance and support.

My sincere gratitude is further extended to the Head of Department, the Provincial Director of the Land Reform office, the Regional Land Claims Commissioner for the Free State and Northern Cape and all their staff members. I thank you for advancing the developmental agenda.

I would further like to thank our strategic partners such as the financiers, the farming industry, developmental institutions, research institutions, NGOs and all other stakeholders that have worked with us in pursuit of our vision of a united and prosperous agricultural sector.

I thank you.

Issued by: Department of Agriculture, Northern Cape Provincial Government
31 May 2005
Source: Northern Cape Provincial Government (http://www.northern-cape.gov.za)