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22 May 2007

Honourable Speaker
Honourable Premier, Mr Sello Moloto
Limpopo Farmers in their various commodity groups
Representatives of Agribusiness
Women Farmers of Limpopo
Members of Agricultural Advisory Forum
Agricultural Strategic partners
Honourable members of the House

Honourable Speaker, both the State of the Nation and the State of the Province Addresses emphasised the need to increase the level of investment in both First and Second economies. Furthermore, they instructed that we need to implement programmes to ensure broad-based economic empowerment. Even more telling, they pronounced that we need to speed the processes of skills development so that we can manage all these challenging transformation processes. Our key objective as a nation is to bring about meaningful transformation of the Agricultural Sector based on the mandate and transformation agenda of the African National Congress (ANC). The agricultural sector must become a business in which any member of our community can participate and derive economic benefits.

Throughout the years of democratic governance we have put in place legislative support such as empowerment mechanisms such as AgriBEE to allow Blacks to enter the business of farming and become role players in the agricultural economy. Our interventions in this sector are biased towards black agribusiness entrepreneurs and the industrialisation of the sector in such a way that it continues being a strong pillar for economic development in our rural province. We are constantly engaging local municipalities to make agriculture an integral part of their local economic development plans.

Vital to this sector is to advance the fight against poverty and joblessness especially for a rural province like Limpopo. We have recently observed the emergence of a trend by farmers who are proactively empowering their workers and we welcome this development and call upon other farmers to follow emulate the trendsetters.

I am also happy to inform the hours that our cross boundary process has been successfully completed and as agriculture we have gained only R2,1 million while we shed R20,9 million to Mpumalanga. The outcomes are however acceptable since we are in the same government and there are no losers and winners.

A brief review of key agricultural indicators suggest that the sector is not generally winning and compounding the situation for South Africa and Limpopo in particular is the persistent dry weather conditions leading to stressed water availability.

Farm debt levels in Limpopo are reported to have declined by 41% year on year. This situation can be attributed to the settlement of land claims for most commercial white farmers.

The increase on interest rates, increased cost of energy (diesel, electricity, fertilisers and tractor costs) and variable exchange rates have jointly and separately led to lower increases in agricultural investment in the previous year. This situation is not particularly palatable for new Black farmers entering the sector. The increased inaccessibility of Micro Agricultural Finance Institutions of South (MAFISA) and bureaucracy of the Land Bank is neither positive for the new farmers to start with gusto their new challenge.

On the brighter side, agribusiness productivity has improved and vertically integrated value chains are reaping good returns. This has also increased their profit bottom lines and somehow increase jobs created in the sector from the previous year. The cost-price-squeeze will remain a nemesis for the sector and our approach is full value-chain investment and involvement by the new farmers and entrepreneurs. Ownership in the value-chain by the players of the industry has proven the most feasible way to ensure sustainability. As an example, the United States of America's (USA) Land 'O Lakes Dairy Farmers Co-operative has proven over decades this conviction. South African dairy and other industries that are under highly concentrated private hands almost bordering on monopoly must ramshackle themselves and use the country's Broad Based Black Economic Empowerment (BBBEE) legislation and other instruments to ensure the country's farmers survival.

While we acknowledge these intricate challenges and bright spots, the perpetual danger of stressful water condition remains. Over the years the department has been on the forefront to discourage misuse of water by farmers. The department has gone further to assist farmers at irrigation schemes and private farms to invest in water-saving technologies. The department has since 2004 banned flood irrigation and is phasing it out at all projects where the state is involved.

Our performance towards millennium target for every country to provide 10% of its budget to agriculture is still far from being realised. For the past two years and this year, we still stand at four percent of our provincial allocation. It is time to ensure that this anomaly is rectified and with agriculture's contribution slowing down, we may find things tougher in the near future.

The 2006/07 was also characterised by a number of landmark developments among them the changes in leadership and a new Minister for Agriculture and Land Affairs entered the scene. Honourable Me Lulu Xingwana was warmly received by the sector. She has introduced Gijima approach to all our programmes and Limpopo Department of Agriculture (LDA) is no exception in this regard. This is all about fast-tracking service deliver in the agriculture and land portfolios. All our programmes such as the Comprehensive Agricultural Support Programme (CASP), Land reform, Skills Development and Support Services to farmers are targeted. Accordingly Gijima has done away with business as usual approach and everything we do we instil a sense of urgency.

The Transformation Charter for Agriculture (AgriBEE) was accepted by the new Minister in late 2006 and all sub sectors must agree to adopt it so that it can become our guideline in terms of Section 12 of the BBBEE Act, No 53 of 2004

Honourable Speaker, as in the previous years, I wish to register our achievements and performance for the 2006/07.

The 'Local is Lekker' and 'nothing about us without us' approaches are working for the department and its partners in improving the integration and management of agriculture at the local municipality level. The capacity of Local Agricultural Municipality Management and the leadership of the Executive Management of the department and has adopted best practice system to enabled the department to deliver services efficiently and appropriately to our targeted clients.

Since the appointment of 25 local agricultural municipality managers in February 2006, planning integration and the Integrated Development Plan (IDP)/Local Economic Development (LED) processes have since improved. The contribution of agriculture as well as the importance of agriculture as an economic development thrust in local municipalities is starting to be appreciated by all. More IDPs have more agriculture projects than they had two years ago. This shows that you cannot be a rural province without agriculture as abase for your economic development.

In 2003/04 our total adjusted appropriated budget was R804,6 million and we utilised R786,4 million. This is equivalent to 97,74% utilisation or 2,26% saving. That was great!

In the 2006/07 Budget speech I indicated that our 2004/05 budget was R905 million and our actual expenditure was R818 million leaving about R87 million unused and returned to provincial Treasury. This is equivalent to 90,4% utilisation or 7,5% saving. That was not improvement at all!

For the 2005/06 our allocation was R1 billion. The department has realised a nine percent saving. That was one biggest drop in performance from the other previous years. That was not acceptable at all!

Honourable Speaker, the 2006/07 financial year had a budget of R1,029 billion (R1 029 159 000). Our spending as at 30 March 2007 was R1 024 billion (R1 024 537 000). This is equivalent to 99,50% spending. As I said earlier, by my standards, this is not just great, but a fantastic achievement!

Honourable Speaker and Members of the House, unlike the 2005/06 year when I had to present mitigating factors for my paltry performance, this year I have reasons that have changed the situation around.

While technical planning capacity in engineering, natural resource management, research-cum-innovation and agricultural economics remains our challenge the reality is we do not have enough and required quality in these areas.

In line with what we mentioned in last year's budget speech the Executive Senior Management Team of the department had to implement new budget spending tactical strategy.

This new tactic that intended to strive towards 100% spending in 2006/07 is based on the following:

1. Massification of projects, targeting and promoting projects above R1 million, thus managing the minute and numerous small projects out of the system. This approach release planning capacity and turn-around for projects were improved.
2. Visibility of intervention, this means projects had to ensure physical visibility, involvement and make the difference in jobs created and number of people involved.
3. Consolidated and integrated project planning approach, by ensuring that a value chain approach is used per project this increased the co-ordination and planning to realise the needs for each project. The black tea rehabilitation is a case in point. I will elaborate later.
4. Target Client-specific in a locality, the rationale here is that target specific clients per commodity and particular area and assist them to sustainably manage their opportunities into the future. Both Settlement Land Acquisition Grant (SLAG) and Irrigation Projects are testimony to this tactic.

All these for tactics are based on the four Service Delivery Strategy of the department being:
* commodity based
* value chain analysis oriented
* project approach
* local municipality focus.

Honourable Speaker, for the year ending as at 30 March 2007, the performance of specific programmes is as follows:

* Administration has spent about 100% of its allocation. The excellent spending was due to filling of most vacancies, the settlement of Agriculture and Rural Development Corporation (ARDC) workers' severance packages and transfers to ARDC for the revitalisation of the tea estates.
* Sustainable Resource Management has, under-spent its budget by 4,2%. The late appointment of service providers saw the Revitalisation of Smallholder Irrigation Scheme (RESIS) only picking up from 1 July 2006. The bulk of the savings is due to retention fees normally kept for capital projects. However, due the turn-key approach implemented, the appointment of the six service providers and one to do quality control, monitoring and evaluation of the work underway, more ground has been covered considering that their year will actually end 30 June 2007. The other milestone was to appoint these companies for two year thus ensuring there is no slow movement during year-end and start of the financial year.
* Production technical support services realised 100,2% expenditure levels. The additional expenditure is due to settlement of some retiring staff support and additional food security projects that were not listed at the beginning year and the claims due to cross border transfers.
* Veterinary services spent 100% of their budget.
* Technology research and development have 100% to structural improvements and additional equipment purchased for the research stations and settlement of retiring staff.
* Agribusiness has realised a 100% spending due to payments of additional goods and services as well as staff compensation.
* Structured agricultural training also spent 100% due to additional goods and services, compensation of staff and payment of leave gratuities to staff.

These programmes collectively constitute the achieved 99,6% spending of the department, the best ever in the five years. You will recall that the department has been plagued by the excess staff issues for more than ten years. Plans by the Executive Council to make all departments responsible to reduce this excess staff have paid off. In 2004 we had 1 348 excess staff. In 2005 it reduced to 1 109. As at the end of March 2007, we are left with only 418. This is equivalent to 69% decrease in just two years. The department target to remain with less than 100 by 31 March 2008. The implementation of severance package as introduced by the DPSA will be vigorously promoted among the targeted staff.

Starting with human capacity issues, the department continues to provide internship training ground for new graduates. In 2006/07 we advertised for 234 interns' placement but only 222 places could be filled. Out of the 222 only 18 could be absorbed into permanent advertised posts. This is about eight percent absorption rate. For the 2007/08 we already placed 251 interns in various places. This is about 11,5% increase in intake compared to the previous year. The total costs for the interns in 2007/07 will be R4,3 million.

The department has gained returns in the following fields, by placing students who completed their studies from various universities in various fields, namely:

* one engineer
* two hydrologists
* six soil scientists
* one agronomist
* one pasture scientist

Twee studente is besig met Honneursgrade in hidrologie om te kwalifiseer as hidroloë. Een student is besig om klaar te maak met sy Meestersgraad in Hidrologie. Dit is belowende nuus en ons belegging is daarom besig om binnekort opbrengste te lewer. Vir die 2007/08 boekjaar is 52 beurse met'n beraamde koste van R2,7 millione aan eksterne studente toegeken wat in skaars rigtings soos ingenieurswese, ekonomie, ens, studeer.

Dit is ons bydrae tot die menslike hulpbron-ontwikkeling van die provinsiale
Groei- en onwikkelingsstrategie.

The department continues to achieve recognition on its activities from various quarters. As we did in 2005 on first prize of Premier's Excellence Awards, the department repeated that feat and scooped the 2006 Premier's excellence award again. This is a feat as we are one of the few departments to win this for two year in a row. In addition to this our research team on seed multiplication has once again done us proud not to be outdone. Our female farmers and young farmers also made us proud. I will now further elaborate on these accolades.

As part of celebrating the 30th Year of Youth Activism, in June of last year the department hosted a two-day youth and agriculture conference. The aim was to afford the young and aspirant farmers of Limpopo an opportunity to:

* be exposed to department services and activities
* establish contact with departmental officials and network
* make their ambitions and challenges known to the department and
* the department to acquaint itself with the expectations of young people of Limpopo so that new strategies in the department should be appropriately informed.

About 260 delegates from 26 municipalities attended the conference. The Youth Commission, organised agriculture, Limpopo Agricultural Advisory Forum (LAAF), the House of Traditional Leaders as well as LED managers in municipalities were part of the conference. During that conference, young people who are doing well in agriculture were awarded prizes and two young men Papa Ezekiel and Tebogo Mojapelo were winners in the two categories of emerging and advanced farmers.

Having realised that the youth is the pulse of our population, the Department of Agriculture sees the importance of bringing the youth on board in different ways. The conference resolved that Youth and Agriculture conference will be an annual event and this year it is scheduled for 7 and 8 June.

Zwa vhulimi zwi kwamaho vhafumakadzi: Mutatisano wa shango wa mulimi wa mufumakadzi wa nwaha ndi tshiga tsha u sumbedza uri Dzingu la Limpopo li na maanda a u kona vhulimi vhu leluwaho kha shango lothe. Vho Livhuwani Mulaudzi vho dovha hafhu vha wina tshiphuga vha na munwe tsha mubveledzi wa u rengisela nnda vha tshi itela vhathu vha Limpopo.

Ward (Dzangano la vhafumakadzi kha vhulimi na mveledziso ya mahayani) tshine tsha vha tshiimiswa tsha shango lothe tsho toka midzi fhano Limpopo. Sa dzingu ro thoma WARD mahola nga August na zwino ro no vha na ndayotewa na maitele zwine zwa vhumba LIWARD. LIWARD yo di imisela kha zwithu zwothe:

Kha mveledziso ya matshilele na ikonomi kha vhafumakadzi (nga maanda vha bvaho kha vhupo ha mahayani). Kha u fhelisa u tsikeledzwa ha vhasadzi nga vhanna na u fha vhafumakadzi maanda siani la zwa vhulimi na mavu hu tshi bveledziswa mahayani.

On agronomic research and innovation, the Community Based Seed Production (CBSP) has again presented the department with another award, as the runner-up (silver) award for Public Sector Innovation of the year 2006. The department has constructed seed establishment centre in Spitskop (Capricorn) and Mbahela Irrigation scheme (Vhembe). The seed establishment centres will be used as seed processing and marketing centres. To date, the ZM 421 and ZM 521 are registered seed varieties and are commonly known as Zuzavhusiwana. This is empowerment and growing local economy at work!

True to our tradition, the department has again sponsored four farmers on a trip to Fruit Logistica, Berlin, Germany in early February 2007 to expose our top emerging commercial farmers namely, Messrs. Kgoale LT and Mothoa MB and Me, Ngwenya and Ms LM Mulaudzi to the international fresh produce fair so that they can compare their own standards with others and learn how to improve their farming practices.

The department had the opportunity to host 35 scientists from 11 countries in the Southern African Development Community (SADC) region to discuss ways of contributing to improving food security and the livelihoods of resource-poor farm families in the SADC region. New Seed Initiative for Maize in Southern Africa – NSIMA - was born. In Malawi Nsima means vuswa, sadza, bogope or pap in various languages of SADC. This is a CIMMYT funded project, with 10 SADC countries participating in this project. The NSIMA project in Limpopo province and SADC aims to develop and stimulate the use of maize varieties with increased productivity, nutritional value and acceptance under the stress-prone conditions of resource-poor farmers in southern Africa. Furthermore, it seeks to strengthen stakeholders in the maize seed sector to work towards a more diverse and more stable seed industry that is responsive to resource-poor farmers' needs. The project will actively support the implementation of regionalised seed laws and regulations for maize.

The department is collaborating with Commonwealth Scientific Industrial Research Organisation (CSIRO) Sustainable Ecosystems project on development of emerging farmer crop-livestock systems in northern South Africa. This project is funded by the Australian Centre for International Agriculture Research (ACIAR) The project develops and promotes a range of forage and veld management strategies that assist emerging farmers to match the market specifications for cattle and developed economic feed year plans, responding to challenges of climatic change.

The project will also develop guar bean entrepreneurs who will supply the growing mining industry in Limpopo, particularly platinum mines. The gum from guar bean is utilised as a flocculent during mineral extraction, providing a higher recovery rate than equivalent chemical methods. The ACIAR continue to develop research management capacity of LDA by providing fellowships for both postgraduate degree and in-service training.

On household food production programme, the department distributed to 2 858 households who received production input packs that varies from family to family at the cost of R10 million. This assistance relates to the three categories of production packs, namely egg production layer chickens, vegetable packs with water storage drum, heifer and milk goats. The projects will receive R5 million in 2007/08.

Only 33 micro-enterprise projects (Ten less than 05/06) have been completed and benefiting 339 participating households. All were trained in production and basic business skills. About R6,62 million has been spent both on these projects. For the coming year, R6,2 million will be made available.

During 2006 no municipality was declared disaster areas and R3,5 million was made available for support. However, it is evident that with such worse drought conditions on us again, the department will have to look for R119 million to support farmers with various interventions. If all our farmers are members of farmers' commodity groups and have proper records of what they spent, the issue of compensation will be easier. I urge all farmers to ensure that their true records are with their commodity associations at all times.

The department has also installed 28 weather stations in our 26 local municipalities. These are managed in collaboration with the Agricultural Research Council (ARC) to ensure credible weather data and required information for early warning.

Comprehensive Agricultural Support Program (CASP) continues to complement the much-needed support for our farmers for food production infrastructure. The following was achieved in 2006 with a total budget of R50,1 million, namely: 910 kilometre of fencing in all districts; 28 irrigation farming units; 33 earth dams; nine dipping tanks; 49 poultry houses, and 21 stock watering points.

CASP support will be equivalent to R62 million this year. As in the previous year, proportional allocation is that 75% is for land reform projects, 10% for poverty alleviation projects and the five percent to continue for disease control infrastructure backlog in communal areas.

On the disease front, Limpopo registered abnormally high incidents of rabies in the previous year. About 171 cases were dealt with against the average of 30-40 per year. We vaccinated 127 952 of the 150 000 dogs in the province. That is more than 85%.

The department has complied with all disease regulations and statutory requirements. Foot-and-mouth disease (FMD) have been successfully brought under control. A threatening outbreak of anthrax was averted and over 470 000 livestock were vaccinated well on time. I wish to thank all our livestock farmers who co-operated during the vaccination programmes. It is also opportune to announce that the department has set aside R1 million to do feasibility on the establishment of a special abattoir within the red line to deal with market access issues of the farmers. The report will be ready by early August 2007.

It is befitting that we applaud the cooperation by some farmers, particularly in the citrus industry in ensuring not only the productivity of their agricultural land, but improved working conditions and economic status of the farm workers. On 16 February 2007, I launched the Mabete Citrus Project in Ba-Phalaborwa where 132 farm workers and black business partners bought 43% shares in a high value citrus enterprise. The project attracted R6,7 million as land redistribution for Agricultural Development (LRAD) grant.

Together with Seleise Project another farm worker family referred to in my last budget speech, also in Greater Tzaneen, these unique projects in Mopani will receive CASP support to the tune of R1,6 million this year. Mabete has become the ground breaker in testing the principles of the AgriBEE framework which seeks to open participation of farm workers in the high value agri-business enterprises.

Cumulatively, restitution has delivered 271 538 hectares of the commercial agricultural land benefiting 29 123 households. For the 2006/07 year, 112 386 hectare (ha) benefiting 21 808 households were delivered.

The increased delivery of 85% in the past year ushers the high drive towards the 2008 presidential target for restitution which equally calls for extraordinary post settlement capacity in order to avoid a reduction of economic activity derived from these properties. For Limpopo there are only 788 land claims are still outstanding and next year we will be able to announce a significant reduction in this number.

In order to ensure sustainability of the restitution process and improve co-ordination, communication and stakeholder participation, the Limpopo Restitution Forum was established in the second half of the financial year. The forum, under the facilitation of the Department of Agriculture is comprised of the Regional Land Claims Commission (RLCC), provincial Land Reform Office (Land Affairs), organised agriculture (Agri-Limpopo, TAU, and LIMPAFU so far), and NGOs amongst the key membership. The forum already had its inaugural meeting and one scheduled meeting since establishment.

LRAD has cumulatively delivered 67 853 hectare benefiting 1 753 farmers. For the year 2006/07, 14 386 ha were delivered which benefited 349 farmers. The delivery strategy for PLAS has been drawn and work-shopped with the stakeholders. This will fast track redistribution of land and regulate the settlement of farmers to ensure sustainable and optimal utilisation of the scarce resources.

Since the SLAG de-registration campaign was launched in March 2006, 448 people came forward to register their requests to be de-registered. This year, the department will focus on re-engineering the projects. Already two projects, Nguvamuni and Rua Naga (both led by women) have been turned into viable commercial enterprises by having them incorporated in the massive poultry development with secured markets. With the de-registration process gaining momentum, this year will see 13 projects turned into viable commercial entities.

At the beginning of the 2006/07, the department had committed R16 million towards the construction of the 12 environmentally controlled Tomcan poultry houses. Despite the challenges and the fact that construction commenced late in October 2006, three of the twelve houses have been commissioned (even before the end of March 2007).

The twelve environmentally controlled poultry houses with a production capacity of 40 000 broilers (each) per cycle are linked to a secured market – Bushvalley Chickens. The project has seen the creation of 180 temporary jobs both for unskilled and semi-skilled workers during construction and 60 permanent jobs benefiting the neighbouring communities.

The importance of human capacity development and commercialisation of the new entrants (mainly land reform beneficiaries) in agriculture cannot be over-emphasised in the advent of a liberalised market economy. As part of the investment done by the province towards the prime movers of agricultural development in the province, the department has set aside R11 million through the Comprehensive Agricultural Support Program towards the skills development targeting emerging farmers and land reform projects. This will not only address the development of the farmers but also the advisory teams from the department and 60 unemployed graduates in the province. The programme is aligned with the Agribusiness Academy and does not only focus on training but moves towards mentoring of the farmers and graduate trainees. The department realises that this can only be a reality if more support is derived from the commercial sector.

The department embarked on improving our farmer selection criteria. It has become abundantly evident that the failure of most of our farming projects is as a result of wrong, ill-informed and sometimes misguided political correctness. Farmer selection for the revitalised irrigation schemes, the former ARDC farms including the tea estates and the Land reform farmers in particular has not been as rigorous as it should be. Agriculture is a business and the department is set to ensure that potential farmers with required entrepreneurial qualities and self-commitment are targeted.

The other issue of concern for the department is both the entitlement mentality and wanton disregard and respect for government supported infrastructure. There is just too high and unacceptable level of theft for infrastructure installed by the government.

Go balemi le badudi ba Limpopo, ke tšea sebaka se go le kgopela gore le hlokomele le thuše go swara le go neela maphodisa mahodu a a go utswa dithoto tša mmušo. Batho ba bare bušetša morago. Re ka se phadišane le bo Brazil, bo India le bo China ba lefase ge re utswa tšeo diswanetšego go ba peeletso ya mananeokgoparara a ekonomi. Bana ba rena baka moso baka se re swarele ditirong tše. Emišang se hle!

Our collaboration with Limpopo University and the Independent Development Corporation(IDC) on the Nguni Cattle Project, is bearing fruits with the first 22 cattle already procured and will be delivered to the qualifying farmers soon. The department will also second one livestock scientist to assist in managing the project for a few years after which a farmers' company will take-over the commercial activities.

As reported in this house, by March 2006 about 2 810 ha (11 schemes) of the envisaged 3 900 ha (23 schemes) were equipped with new infield systems. Due to the new and unfinished bulk infrastructure work and insufficient Kilo-Watts supply from existing Eskom power stations the irrigation schemes involved could not become operational and productive. The department has however employed six engineering service providers who use the Turn-Key Approach to the Resis programme.

As a result of that effort 280 ha in Makuleke irrigation scheme is now complete and farmers and their strategic partner have already started to plant potato crop. We are happy to announce that Simba South Africa has signed supply agreement with the community that ensures them market at good prices. At Tšwelopele and Upper Flag Boshielo (Mogalatšane, Krokodilheuwel, Setlaboswana and Phetwane) some vandalism and theft of equipment has delayed the completion of projects. The department has implemented a process to rectify the problem and the projects will be completed by June 2007.

Department of Water Affairs and Forestry (DWAF) have finalised the rehabilitation of the Upper Flag Boshielo canal system, and few old pipes had to be replaced. DWAF experienced problems with the construction of the 7 kilometre (km) pipeline to link the Flag Boshielo dam with the irrigation schemes. More hard rock was found and time-consuming rock blasting was necessary, thus delaying the project. So far four km has been completed and the pipeline is expected to be finalised by July 2007.

To mitigate against this delay, the old riverside pumping station at Mogalatšane has been repaired and electricity connected to provide irrigation water. The pump station will also serve as emergency facility even after the completion of the pipeline link.

The existing 300 million rising main line is scheduled to be replaced with a new pipeline by June 2007, thus facilitating planting of winter crops. Another dam-to-scheme pipeline is under construction at Metz and is due for completion by June 2007.

All balancing dams (eight) at Tšwelopele and the two schemes of Upper Flag Boshielo have been reshaped, resealed and fenced off. Lucerne will be planted after final touches on the bulk infrastructure and electricity supply. We expect to harvest over 2000 tons of Lucerne from this scheme to support our fodder bank strategy.

Six new schemes were implemented in 2006. These included cleaning of the canals serving Dingleydale and New Forest schemes in Bushbuckridge, planning and installation of bulk and infield systems at Mid Letaba (Homu), Elandskraal, Tompi Seleka and part of Strydskraal (30 ha) due to the ongoing rehabilitation of the 35 km feeder Lower canal due for completion by February 2008.

The Tompi Seleka Irrigation technology system is almost complete and farmers will be in apposition to use the systems for training when Agribusiness Academy commences with its farmer training courses. Mbahela irrigation scheme will be complete by August 2007.
Three new projects in Sekhukhune (from boundary re-alignment with Mpumalanga) are prioritised for implementation in 2007. Scoping, master plan designs and execution will be implemented by July 2007.

As we reported in 2006, the department is engaged in natural resource management which includes LandCare facilitation, Soil Conservation and Land-use Planning. An Integrate Programme, area-wide (Catchment) planning is used to identify projects in critically affected areas. Six area-wide LandCare projects (308 501ha) were implemented in 2006. Three new projects (Mphahlele, Leolo, and Mutale) will be implemented in 2007/08. The LandCare programme is budget for R7,91 million.

Three other special soil conservation projects (waterways) were implemented in Sekhukhune through co-funding with the Japanese International Cooperation Agency (JICA). The projects protect an area of 1093ha of arable land within the Lepellane Catchment.

E ka ku ringeta ku antswisa xiyimo xa mafambiselo ni matirhisele ya swilo swa misava na ntumbuluko. Ndzawulo ya Vurimi yi kunguhata ku kuma switirhisiwa swo fana na titeretere, michini yo cela misava ni switirhisiwa swin'wana e ka malembe manharhu lama lanzelaka. Tindhawu leti nga ta tekeriwa enhlokweni ku ta va timasipala le ti nga ekusuhi na Kruger National Park (ku famba na darata leyi sivelaka swiharhi ku swi nga hlangani na swifuwo) xikanw'e na le xifundzeni xa Sekhukhune na timasipala leti katsiwaka eka tiphurojete ta hlayiso wa swa misava, mati na swimilana. Switirhisiwa leswi ntsongo swi ta pfuneta e ka mintirho ya siku na siku, na kambe swilaveko swa tiphurojete letikulu swi ta kumeka kun'wana. Switirhisiwa leswi swi nga kona kambe swi nga ri ku ka xiyimo lexi amukelekaka swi ta xavisiwa hi maendlele ya 'auction' eka varimi kutani ku landzela xaviso wa mani na mani.

The department has increased its internal engineering capacity, three engineers and nine engineering technicians have assumed duty by February 2007. In addition, two lady hydrologists and one male engineer have also been employed within the department. One hydrologist student is pursuing Master studies and three Soil Scientists have also concluded their studies and are to assume duties soon. These are expected to play a major role in natural resource management. The budget for resource management is R172 million for the current year.

The ARDC has successfully completed the process of restructuring with over 590 workers being laid off. All workers were paid what is due to them. Only after the ARDC and the Department were unsuccessful in placing these workers in other Department, were the workers laid off as at 31 March 2007 at a cost of R11,5 million. The Limpopo Executive Council has painfully accepted the outcome and this chapter is regarded as closed. The ARDC will however proceed with its new Mandate of fostering AgriBEE objectives, providing agricultural planning and fostering agriculture LED programming. Economic planning professionals will be appointed to manage this new responsibility. The ARDC operational budget will be around R4,5 million per year.

The department is investing in further development and vertical integration of black tea in Limpopo. Over 1 070 ha of prime land is planted with seedlings and clonal varieties. The tea estates will be managed as an out-grower system phased in over a few years. Currently about 2 150 workers are employed at the tea estates. The project will be handed over to the Tshivhase Territorial Trust by March 2008. Processing has resumed and over 1,8 million kilograms of black tea is ready for bulk selling. Over R40 million is being budgeted. The department also appreciates the support and corporate leadership of MANFerrostaal South Africa (Pty) Ltd in this project. We salute people like you Dr Nkosi who see value in investing in rural areas.

Macadamia development also represents a unique opportunity for most land restitution farmers. The department is committed to the macadamia development and establishment in the province. The nursery development that will be managed by a large component of Youth will be the first activity in the 2007/08. The Macadamia Association in Vhembe is being targeted for assistance in land development to ensure planned development of the commodity. The project's budget is R3 million for the current year.

The establishment of the Fresh Produce Market is also well on track and this will ensure market access for the revitalised irrigation schemes. Processing technology that will cater for 150 tons an hour will be installed at a site to house the Logistics Cluster Precinct. Other district facilities in Tubatse, Thohoyandou, Elias Motswaledi and Thulamela municipalities will be facilitated during the course of the year. R25 million is allocated.

Bio-fuels production has taken South Africa and the world to another level of research. The world needs cleaner oils for combusting engines and the population requires and demand clean air surroundings. The department has thus invested in bio-diesel incubator facility at Tompi Seleka with the aim of researching the final product and other by-products of the bio-diesel value chain. Limpopo will witness some of the research findings in this value chain in the ensuing year. Oil seed producing commodity groups have been lobbied and sensitised about the project and they will also own a share in the value chain. The department has budget R3 million for this year on the bio-fuels project.

The need and realisation of the acute shortage of skills in the province has propelled the department to find partners in addressing this issue. The Flemish Government is supporting the department for the next five years to establish and equip the Agribusiness Academy housed at both Tompi Seleka and Madzivhandila Farmers' Training centres. The objective is to produce profit-oriented commercial farming and agribusiness entrepreneurs aimed at improving rural economies and agribusiness capacity. Key programmes are agribusiness administration and entrepreneur leadership, mechanisation management, irrigation technology water use and agro-tourism.

Both young and existing farmers and entrepreneurs will benefit immensely from this programme. The budget is R11 million for this year.

The viticulture (wine making) industry is also taking shape among Limpopo farmers. Two projects one each in Sekhukhune and Waterberg on table grape production development will be started from April 2007. Over 120 ha is earmarked for development at the end of the project. The department has budgeted R5 million for this project for the year.

The department has also responded to calls by farmers to re look at our support for mechanisation. We are aware of the tractor schemes that used to be there on irrigation schemes for farmers. To day few of those assets are still in good shape. The department has designed a Mechanisation Revolving Credit Access Scheme (Merecas) to effectively deal with traction power needs of farmers.

The key tenants of this facility is that individual and legal business agribusiness entrepreneurs are assisted to purchase mechanisation package combinations (65 kilowatts tractor, plough, trailer, disk, planter and a Diesel tank) and provided with operational costs for first six months. However, each entity must prove committed support from farmers requiring traction services and repayment ability. The department will support 50% of the mechanisation package cost. This facility will be operated with commercial banks and tractor manufacturers to ensure business and entrepreneurship accountability. The department has budgeted R20 million for the 2007/08. The facility should be in operation from 1 September 2007 or earlier.

Honourable Speaker and members of the House, I once again take this opportunity to thank the Premier and Executive Council members for continuing to support matters of agriculture, the Portfolio Committee on Agriculture for the vigilant oversight role they play and the farmers whose challenges allow us to shape and refine policy.

The department's allocation for the 2007/08 is R1 094 439 000 and will be distributed according to Departmental programmes as follows:

Summary of payments and estimates per programme: Agriculture
Programme 1: Administration: 258 229 000
Programme 2: Sustainable Resource Management: 178 282 000
Programme 3: Farmer Support and Development: 515 196 000
Programme 4: Veterinary Services: 25 088 000
Programme 5: Technology Research and Development: 62 641 000
Programme 6: Agricultural Economics: 18 554 000
Programme 7: Structured Agricultural Training: 36 449 000

Total payments and estimates: 1 094 439 000

I wish to remind all of us that we did not receive satisfactory rains this year and our dam levels are very low. Let us use our water resource sparingly and target our activities and we must not forget that water is not a luxury in Limpopo and we must use it very wisely all the time.

Agriculture remains a business, a very tricky one and sometimes quite a tough industry, and thus Honourable Speaker we need tough, innovative and creative agribusiness entrepreneurs to make a mark and compete with the best in the world. LDA will support were we can!

The department has come a long way in establishing good practices and may I take this opportunity to thank all staff for striving to make our efforts recognisable. Honourable Speaker, it is sad that this budget speech is being delivered before a centenarian Vho Mukumela Tshivhula who passed on 27 January 2007 (at the age of 92) could be served the justice she longs for.

When ordinary South Africans are receiving services in the form of sanitation and decent housing, she needs just a grave, so that she can be rested next to her husband and other members of the family on the traditional burial site on portion three of the farm Coniston in Waterpoort (Makhado Municipality).

When on the 2 March 2007 the Tshivhula family lost a case in the Land Claims Court seeking to bury this centenarian, she was effectively evicted from the land she worked, lived and died on. Having her buried anywhere else will be tantamount to forced removals. Her body has since 27th January been lying in a mortuary and we still have confidence in the judiciary to consider favourably the appeal by the family to have Vho Mukumela Tshivhula buried on the family's traditional burial site. In a democracy like ours, this is surely not too much to ask for.

Honourable Speaker, it is still "Nothing about us without us".
"Lehumo Le Tšwa Tšhemong"
"Xandla famba Xandla vuya"
"Hu duba buse" and "'n Boer moet 'n plan maak" slogans in our daily activities as we move from "farming to Agricultural Industrial Development"

Thank you!

Summary of payments and estimates per programme: Agriculture

Programme 1
Medium-term estimates R thousand: Administration
2007/08: 258,229
2008/09: 85,541
2009/10: 301,244

Programme 2
Medium-term estimates R thousand: Sustainable Resource Management
2007/08: 178,282
2008/09: 239,967
2009/10: 289,783

Programme 3
Medium-term estimates R thousand: Farmer Support and Development
2007/08: 515,196
2008/09: 533,192
2009/10: 569,270

Programme 4
Medium-term estimates R thousand: Veterinary Services
2007/08: 25,088
2008/09: 26,093
2009/10: 27,528

Programme 5
Medium-term estimates R thousand: Technology Research and Development
2007/08: 62,641
2008/09: 52,850
2009/10: 55,757

Programme 6
Medium-term estimates R thousand: Agricultural Economics
2007/08: 18,554
2008/09: 28,901
2009/10: 30,491

Programme 7
Medium-term estimates R thousand: Structured Agricultural Training
2007/08: 36,449
2008/09: 36,285
2009/10: 38,281

Medium-term estimates R thousand: Total payments and estimates
2007/08: 1,094,439
2008/09: 1,202,829
2009/10: 1,312,354

Summary of provincial payments and estimates per economic classification: Agriculture

Medium-term estimates R thousand: Current payments
2007/08: 724,261
2008/09: 775,783
2009/10: 814,187

Medium-term estimates R thousand: Compensation of employees
2007/08: 519,150
2008/09: 48,107
2009/10: 572,773

Medium-term estimates R thousand: Goods and services
2007/08: 205,111
2008/09: 227,676
2009/10: 241,414

Medium-term estimates R thousand: Transfers and subsidies
2007/08: 47,266
2008/09: 30,316
2009/10: 31,981

Medium-term estimates R thousand: Provinces and municipalities
2007/08: 50
2008/09: 52
2009/10: 00

Medium-term estimates R thousand: Departmental agencies and accounts
2007/08: 44,070
2008/09: 28,145
2009/10: 29,692

Medium-term estimates R thousand: Public corporations and private enterprises
2007/08: 140
2008/09: 146
2009/10: 154

Medium-term estimates R thousand: Households
2007/08: 3,006
2008/09: 1,973
2009/10: 2,136

Medium-term estimates R thousand: Payments for capital assets
2007/08: 322,912
2008/09: 396,730
2009/10: 466,186

Medium-term estimates R thousand: Buildings and other fixed structures
2007/08: 166,958
2008/09: 244,457
2009/10: 295,737

Medium-term estimates R thousand: Machinery and equipment
2007/08: 90,533
2008/09: 83,731
2009/10: 95,159

Medium-term estimates R thousand: Software and other intangible assets
2007/08: 2,500
2008/09: 2,601
2009/10: 2,744

Medium-term estimates R thousand: Land and subsoil assets
2007/08: 62,921
2008/09: 65,941
2009/10: 72,547

Medium-term estimates R thousand: Total economic classification
2007/08: 1,094,439
2008/09: 1,202,829
2009/10: 1,312,354

Issued by: Department of Agriculture, Limpopo Provincial Government
22 May 2007