[ Home ] [ Speeches & statements ]

11 March 2008

Honourable Madam Speaker,
Honourable Speaker,
Honourable Members of the Executive Council,
Honourable Members of the Provincial Legislature,
Honourable Members of the Agriculture Portfolio Committee,
Honourable Members of the House of Traditional Leaders,
Invited guests and members of the agricultural community,
Ladies and Gentlemen,
Greetings to you all!

1. Introduction

Honourable Speaker, I have the honour to present the 2008/09 Policy and Budget Speech for the Eastern Cape Department of Agriculture. Honourable Members of the Legislature, we have moved beyond extensive strategic planning and institutional arrangements to a focussed phase of intensifying the struggle against endemic poverty, structural unemployment and chronic deprivation.

In this regard, we are ever-mindful of the magnitude of the challenges that face us; not only as a Department, but as a province and as a Nation. The overall thrust of our commitment is continuity that seeks to pursue the massification of the six-peg policy to combat underdevelopment and to fight poverty.

This represents the culmination of a series of integrated trends that have characterised the progress of the Eastern Cape Department of Agriculture over the past several years. Now it is time for action.

Honourable Speaker, we do not propose to pursue massification for its own sake. We will carefully determine the ends to which massification is a means. We must carefully determine how to use the principles of massification to achieve appropriate measures of success. The Six-Peg policy that we have carefully crafted since 2005 is such a means to an end. We have now established more firmly the nature of the imperative ends to which the Six Pegs are an effective means.

2. Service Delivery Context

Honourable Members of the Legislature, we live in an integrated world in which local, national and international social and economic imperatives impact upon what we do. These imperatives constitute an ever-changing context to which we must adapt, align and arrange our activities and aspirations. Accordingly, our policies and associated budgets are guided by a number of crucial considerations.

2.1 Millennium Development Goals

In the international context, Honourable Speaker, we respond to the spirit of the eight Millennium Development Goals (MDGs) to be achieved by 2015 in an effort to address the world's main development challenges. The MDGs are drawn from the actions and targets contained in the Millennium Declaration adopted by 189 nations, and signed by 147 Heads of State and Governments, during the United Nations Millennium Summit in September 2000.

While the MDGs represent a composite commitment that recognises the inter-dependence between growth, poverty reduction and sustainable development, Goal 1 refers specifically to rural development and agrarian transformation as follows:

MDG Goal 1: Eradicate extreme poverty and hunger

The MDG Goal 1 is underpinned by two important targets that fall within the scope of the Provincial Growth and Development Plan (PGDP) objectives:

Target 1: Reduce by half the proportion of people living on less than a dollar a day

Target 2: Reduce by half the proportion of people who suffer from hunger

2.2 Comprehensive Africa Agriculture Development Programme (CAADP)

The CAADP was devised in the context of the New Partnership for Africa's Development (Nepad) and consists of four fundamental mutually reinforcing pillars on which the immediate improvement of agriculture, food security and trade balance relationships in the context of development in Africa are based.

The CAADP pillars are the following:
* Extending the area under sustainable land management and reliable water control systems.
* Improving rural infrastructure and trade-related capacities for market access.
* Increasing food supply and reducing hunger.
* Agricultural research, technology dissemination and adoption.

Honourable Speaker, it is clear from the above that the Eastern Cape Department of Agriculture (ECDoA) activities in the province are admirably supported by a number of integrated regional, national and international development models and initiatives. It is imperative that we continue to ensure that our activities take advantage of the support systems that are available through these initiatives.

2.3 Presidential Priorities

Honourable Speaker, in addition to the critical on-going alignment with the Provincial Growth and Development Plan (PGDP), the department will focus attention on the following key Presidential priorities during 2008/09:

* Redistribution of 5 000 000 hectares (ha) of white-owned agricultural land to 10 000 new agricultural producers. In this regard the Eastern Cape share of the commitment is 650 000 ha, the department would request funds to re-distributed 300 000 ha.
* The commitment to increase black entrepreneurs in the agri-business industry by 10%. The ECDoA's activities through the Eastern Cape Rural Finance Corporation (ECRFC) and other Provincial institutions will provide significant assistance, guidance and resources to secure this priority.
* A commitment to provide universal access to agricultural support services to defined rural target groups involved in the above initiatives. The ECDoA's anticipated institutional development will assist in meeting this commitment.
* A commitment to increase agricultural produce by 10% to 15% and to increase agricultural trade by 10% to 15%.
The plans, strategies and resources of the Eastern Cape Department of Agriculture are directed towards securing the commitments represented by the above priority undertakings.

2.4 Apex Priorities for 2008

The priority of the ECDoA is in line with the Apex priorities and specifically, to speed up land and agrarian reform. This will require the acceleration of the acquisition of land for redistribution and ensuring that there is intensive training and specialist support to new formerly disadvantaged farmers.

2.5 ANC rural development priorities

Honourable Speaker, we note that the policy principles adopted by the Eastern Cape Department of Agriculture are closely aligned with the Rural Development Resolutions that emerged from the 52nd National Conference of the African National Congress held in Polokwane in December 2007. These resolutions have been incorporated into the Department's programmes in the context of the 2004 Election Manifesto: "A People's Contract to Create Work and Fight Poverty".

Those resolutions indicate clearly that the ANC will embark upon an integrated programme of rural development, land reform and agrarian change based on several key pillars. Hence, the ANC's rural development priorities have been customised and integrated through the Provincial Makgotla process to constitute a fundamental policy and operational environment based on the following commitments and undertakings:

* Provision of social and economic infrastructure and extending quality government services to rural areas.
* Ensure that fundamental changes in the patterns of land ownership are realised before 2014 by redistributing 30% of agricultural land.
* This includes comprehensive support programmes with proper monitoring mechanisms to ensure sustainable improvements in livelihoods for the rural poor, farm workers, farm-dwellers and small farmers, especially women.
* Ensure that real agrarian change is undertaken with a view to:
- supporting subsistence food production,
- expanding the role and productivity of modern small-holder farming and
- maintaining a vibrant and competitive agricultural sector.
* Defend and advance the rights and economic status of farm workers and farm-dwellers, including through improved organisation and better enforcement of existing laws.
* Implement the Freedom Charter's call to empower those working the land with implements, seed, tractors, infrastructure for irrigation and other forms of material support.
* Where appropriate, to work together with commercial agricultural and the private farming sector to:
- promote black economic empowerment
- create partnerships between emerging and established farmers
- establish a vibrant entrepreneurial base founded on sound agrarian reform and accessible to all previously excluded citizens of the province,
- create linkages between large and small farmers including through procurement and 'contracting-out'
- build institutions to contribute towards more equitable structures of production and ownership in rural South Africa, including through collective ownership, employment equity, skills development and support for new enterprises in the agricultural sector.
* Support the growth of rural market institutions including through the provision of infrastructure and by helping rural communities and small farmers to build organisations which help them to gain access to markets, to build links with formal sector value chains and to co-ordinate their activities to realise economies of scale.

Such organisations may include:
- producer co-operatives,
- small-holder associations,
- input supply co-ops,
- marketing co-ops and/or
- state-regulated institutions designed to support and promote access to market
- collective action amongst small rural producers.

* Ensure that the allocation of customary land is democratised in a manner which empowers rural women and supports the building of democratic community structures at village level, that are capable of driving and co-ordinating local development processes. The ANC will further engage with Traditional Leaders, including Contralesa, to ensure that the disposal of land without proper consultation with communities and Local Governments is discontinued.
* Accelerate the provision of rural infrastructure, particularly roads, but also other services including potable water, electricity and irrigation.
* Ensure, in particular, that the former homeland areas are properly provided with a sound and sustainable infrastructural base for economic and social development.
* Ensure that farm dwellers, like all South Africans, benefit from universal access to free basic services. In this regard, the ANC reaffirms the objective of realising universal access to free basic water, electricity and sanitation before the centenary of the ANC and recognises that the bulk of this challenge is in rural South Africa.
* Improve the co-ordination and synergy between Departments and all levels of Government to ensure that an integrated approach to land reform and rural development is universally adopted and pursued.

Honourable Members of the Legislature, the extent to which there is a significant alignment with national imperatives is evident from the Polokwane Conference resolutions indicated here. This provides a sound basis for the Eastern Cape to pursue the rural development programmes and initiatives that we have outlined in this year's Policy Speech.

2.6 Provincial Growth and Development Plan (PGDP)

Honourable Speaker, the Department recognises that the PGDP remains the overall context for service delivery. In this regard, we reaffirm our unequivocal commitment to the principles of the PGDP; particularly in terms of the Key Programme Areas that are focused on Agrarian Transformation, Food Security and Human Resource Development.

Implementation of Eastern Cape PGDP imperatives constitutes a fundamental point of departure for the Eastern Cape Department of Agriculture; especially through initiatives designed to promote the Massive Food Programme, the Siyazondla Homestead Food Production Programme, and the Integrated Agricultural Infrastructure Programme, as well as the provision of expertise to the Comprehensive Nutrition Programme.

We also focus on finding constructive ways to integrate the dislocated agrarian economy of the previous homeland areas into the wider Provincial economy by promoting commercial agriculture and through the investment of raw material sources for agro-enterprises inputs.

Honourable Speaker, we have consistently pursued mechanisms and innovative approaches to give positive effect to key PGDP principles. Thus, the Department's Green Revolution Strategy and the associated Six-Peg approach constitute logical links and extensions to securing the objectives of the PGDP; as is clearly shown in Figure 1 (go to http://www.ecpg.gov.za for figures).

PGDP context for the Green Revolution and the Six-Peg Policy Framework

2.7 Spatial Development Zones and High Impact Priority Projects

Honourable Speaker, we remain committed to ensuring that an appropriate spatial context is consistently associated with service delivery. This imperative is linked to the spatial context provided by the Executive Council's directive in the N2 Corridor area, the Ugie-Maclear-Mthatha Development Zone, the Agro-processing and Bio-Ethanol Zone and the Mzimvubu Basin Development Zone. The High Impact Priority Projects (HIPPs) which are of particular importance to the ECDoA are livestock development and integrated cropping including bio-fuels.

Spatial Development Context

2.8 District Municipal Growth and Development Summits (GDSs)

Towards this end, the department is guided by the outcomes of the Growth and Development Summits that were concluded by the District and Metro Municipalities during 2007/08.

Developmental issues and areas of concern arising from these GDSs have been noted as matters to be addressed by the Department through outreach, consultation and co-operative approaches to working with the Local Government sphere.

* In the Chris Hani District Municipality, the GDS resolutions emphasised the prospects for bio-fuel benefits arising from sugar beet and other crops; while concerns were raised regarding improvements in livestock farming, especially with respect to expanding the National Wool Growers Association (NWGA) model for support to emerging farmers through appropriate mentoring and improved extension services and access to markets. Improved veld management strategies based on a move towards formal land administration and management in communal areas also emerged as matters of concern.

Revival tactics for existing irrigation and dryland cropping schemes will be intensified to resolve ownership conflicts, to introduce maintenance procedures, to establish farmer training initiatives and to develop sustainable markets in order to improve production for the Massive Food Programme. A new irrigation scheme will be started in Ndonga Village of Emalahleni Local Municipality this year.

Critical improvements are required to scale up the presence and technical expertise of agricultural extension officers in the district; as well as in the development of grading, packaging, and storage facilities for fruit and vegetable produce at strategic locations in the district.

* In the Ukhahlamba District Municipal area, the Department is committed to expanding support for emerging farmers and household food production through the efficient implementation of Massive Food Production programmes, homestead food production and livestock improvement programmes. This will entail improvements in human resource and in the material capacity of extension workers to respond to the agricultural needs and potential of the District.

The department will also devote considerable resources to increase investment in agricultural infrastructure, such as the fencing of arable land, irrigation schemes, livestock sales pens, and dipping facilities. A "Food-basket" initiative has been started around Elundini Local Municipality, working with the municipality and community and farmer representatives.

The department will also undertake an area-based plan for the District Municipality and will support Local Municipalities in the acquisition of land through the Land Reform Programme. A mentorship programme initiated by Mr Johan Fouche and son, from Lady Grey, is successfully supporting four Land Redistribution for Agricultural Development (LRAD) farmers to develop their wool sheep flocks. This is a good example of what can be done when neighbours work together. Four dipping tanks and four shearing sheds will be constructed in Senqu Local Municipality this year.

* In the case of the Amathole District Municipality, the Department has committed to increasing infrastructure investment, and to develop over 3 000 ha linked to the Massive Food Production and Siyazondla Homestead Food Production Programmes.

Revitalising irrigation schemes is also a priority in the Amathole District and such endeavours will include a commitment to improve human resource and material capacity of extension workers to respond to the agricultural needs and potential of the District. The department and the District Municipality will collaborate towards promoting co-operative models in agricultural economic development, with special emphasis on the needs of women, youth and people with disabilities.

Private sector commitment is demonstrated by a partnership arrangement between the Department and Da Gama Textiles for the production of cotton in the District.

* In the OR Tambo District, the department will work with the Municipality to expand support for emerging farmers engaged in household food production through the Siyakhula and Massive Food Production and livestock improvement programmes. This also involves improving the human resource and material capacity of extension workers to respond appropriately to the agricultural needs and potential of the District. In this context, the Department will assist to actively encourage young people to take up agriculture as a livelihood through awareness programmes, capacity building exposure visits and incentives. In this regard, our efforts at turning Tsolo College into a Farmer Support Centre par excellence will continue.

The department further commits to increase investment in agricultural infrastructure, with a focus on fencing arable land, irrigation schemes and livestock sale pens. The first phase of the implementation of a Rural Sustainable Village Model took place at Nkantolo, Mbizana. Nine tractors were provided to farmers in various municipalities in this District, whilst 12 stock water dams were erected at Balasi.

The Department will support initiatives to develop the production of sugar cane in the Mbizana Municipality during 2008, and will facilitate the development of some 70 000 ha for the production of canola feedstock for bio-fuel and other downstream processing opportunities.

By the end of 2008, the District Municipality, in partnership with Department, will have invested some R7,5 million to provide storage facilities and processing mills for maize at Flagstaff and Mthatha.

The department will also assist in establishing a number of key facilities and procedures in the District over the Medium Term Expenditure Framework (MTEF) period, including the following:

* a district agricultural incubation centre by 2009
* enhance the business performance and contribution to the economy of the Magwa and Majola tea estates, with a total investment of R25m by end of 2010
* dairy co-operatives at Port St John's, Mthatha and Ngquza Hill by December 2008
* Beef production and marketing co-operatives in Nyandeni, Mhlontlo and Ngquza Hill by the end of 2009
* mutton and wool production and marketing co-operatives at Mthatha, Mhlontlo, and Nyandeni by the end of 2009.

In the Cacadu District and Nelson Mandela Metropolitan Municipalities, the department will focus on co-operation with the Municipalities on activities to establish and promote the Siyazondla Programme and to facilitate investment in infrastructure development and export –oriented production, particularly in citrus and deciduous fruit.

Towards these ends, the department is committed to the development of emerging farmers using the opportunity created by the intensification of land transfers from commercial to historically disadvantaged individuals and groups. Agro-tourism could emerge as one of the most lucrative businesses in this regard.

* The Alfred Nzo District Municipality GDS focussed on a number of areas for potential development that will require substantial inputs and direction from the department. These include the following:
- opportunities arising from the development of the mzimvubu basin project.
- wool production based on the National Wool Growers Association (NWGA) model support, as in the Chris Hani district.
- mentoring emerging farmers and significantly improved agricultural extension services
- resolution of the long-standing makhoba land dispute
- improved market access, veld management and strengthening agricultural value-chains, such as in the animal feeds industry
- expanding the dip tank construction pilot programme to more villages in the District.

Honourable Members of the Legislature, the commitments to the Local Government Sphere that are expressed here stem directly from the 2006 Local Government Election Manifesto that was based on the principle of A Plan to Make Local Government Work Better – For You! The department understands this manifesto as a political mandate from which we have derived the over-arching strategy of the Green Revolution.

2.9 Legislative Framework

The effective implementation of the Green Revolution Strategy requires an equally effective, enabling legislative framework. There are numerous pieces of legislation which impact on agricultural development and which have given rise to various agricultural and financial service organisations which in some instances may be competing unnecessarily against each other.

The department has initiated a review of the current legislative framework relating to agricultural development and during the course of this financial year will take the necessary legal steps to promulgate any required changes.

3. Highlights and challenges: 2007/08

Honourable Speaker, the Department has secured a number of significant highlights during the past year. These include the following:

* It gives me pleasure to mention that during the Premier's Balasela Awards of 2007, the Department has received Certificates of Commendation for:
- having an exemplary departmental management, leadership and excellence in participatory governance through extensive stakeholder engagement
- designing an Innovative Scientific Antidote to curb the spread of the tomato virus in the Eastern Cape
- being the best wool producer in 2007 thereby making major improvement in wool production by emergent local farmers.

* I am proud of the department for receiving an unqualified audit opinion from the Auditor-General for the 2006/07 Financial Year.
* Around human and institutional capacitation, I am delighted to highlight that in accordance with the mandate of the National Department of Agriculture regarding its National Agricultural Education and Training Strategy of 2005, the department has formally appointed the Provincial Agricultural Education and Training Forum (PAET Forum) constituted of diverse stakeholders in the agricultural sector such as farmer unions, agri-business, institutions of higher learning, AET Service Providers, etc. The purpose of the Forum is to facilitate the development and implementation of relevant AET programmes and projects in the Province as well influencing the human capacitation strategic direction that will ultimately enrich the realisation of productive farmers.

The benefits enjoyed by our Extension cadre through the participation in the Cape Agricultural Programme on Rural Innovations (CAPRI) Programme funded by the Dutch Government cannot be over-emphasised; currently three officers are studying towards their MSc degrees in extension whilst on the other hand 80 Extension Officers are receiving training on Social facilitation Skills. In addition, a reasonable number of extension officers were equipped with 550 laptops and 450 cellular phones as a means of empowerment and extending connectivity.
* In promoting entrepreneurial development, a user friendly marketing information system using cell phone technology to address the concerns of the previously disadvantaged farmers in terms of access to market information and with specific reference to market prices, was developed and launched in December 2008.
* Classical swine fever has been brought under control and the Province remains vigilant to ensure that this disease does not recur. The culling campaign was completed in July 2007 and as a result, pig facilities have been built in Steynsburg, Burgersdorp, Aliwal North and Jamestown to allow for the restocking of pigs.
* The Twinning Arrangement between Lower Saxony and our province was strengthened further by the signing of a MOU by my counterpart in Lower Saxony and myself. As a result, three Veterinary Laboratory Technicians have received high quality free training at the Veterinary University of Hannover, a customised mobile trailer was donated to the Department to enable it to respond rapidly to disease outbreaks.

Honourable Speaker, these awards and achievements represent the culmination of dedicated commitment by the Department's management and staff. They are, indeed, to be commended!

The department also made significant contributions to the following achievements during the course of the year:
* Ms Nomathamsanqa Madliwa, of the Weltevrede Farm in the Komga area, won the national Department of Agriculture (DoA) Annual Top Producer for the Informal Markets Category award during the Female Farmer Awards event held in Nelspruit in August 2007.
* A female farmer, Ms Nomxolisi Cekeshe, from the Alfred Nzo District won as the Provincial Female Farmer of the 2007 on Top Producer - Household Category whilst Mr Kakaza of Good Hope farmers Co-operative won the CK Fm awards on Youth in farming.
* A successful Public Private Partnership through Land Redistribution for Agricultural Development (LRAD) established with the Loerie Hoogte Poultry Project in Kouga Municipality which is the biggest poultry house in Africa and consists of state-of-the-art chicken houses which will boast the highest specification poultry farming equipment in the world.
* We congratulate Ms Pindi Khema, an emerging citrus grower in the Sundays River area, who was voted onto the National Citrus Growers Board. The Department assists Ms Khema, of the Ipi Ntombi Farm in the Addo District, in her activities as the first black female farmer to establish a thoroughbred racehorse stud farm. Ms Kema's stud farm was featured on SABC 2 in February 2008.
* An EU-accredited Ostrich Development Programme, established in the Peddie area, promises to become the Oudtshoorn of the Eastern Cape.
* The Longmore Flower Programme, near Port Elizabeth, continues to expand exports of proteas to the Far East and Europe
* The Motherwell Hydroponic Programme is a Public Private Partnership which involves HIV-affected members of the community. In December, the Programme's Leader, Dr M Chabula, won the World Leadership Award in Health for HIV interventions in London.

Honourable Speaker, we have also encountered several challenges that we will seek to address as part of our on-going commitment to sustainable rural and agricultural development in the Province. These include the following:

* Funding constraints continue to inhibit the successful development and revival of Provincial Irrigation Schemes. This results in a chronic inability to implement detailed business plans.
* Skills in the fields of engineering, veterinary science and applied research remain scarce. The situation is aggravated by the high skills turnover, which is primarily due to the disparity in salaries between public sector and private sector employers.
* We need to establish an intensive and comprehensive mobilisation of the Green Revolution in 2008/09 in order to further extend the ECDoA's successes.
* The Economic Growth and Infrastructure Cluster (EG&I) needs to generate detailed information, planning proposals and budget capacities regarding the establishment of Accelerated and Shared Growth Initiative for South Africa (AsgiSA) (Eastern Cape); particularly insofar as these impact on the EC Department of Agriculture. I am glad to report that progress is notable, but slow, in this regard.
* Together with other provincial departments, local government, the private sector (and, indeed, the entire nation), we are acutely aware of the threats posed by unstable Eskom electricity delivery and increasing fuel prices driven by global oil and coal prices. These represent externalities over which the Provincial Government has little control.
* Nevertheless, we must be constantly vigilant about their impact on production costs, fragile value chains and the plight of the poor, who have few fall-back options.

4. The Green Revolution

4.1 The Green Revolution Strategy

The basis for the Green Revolution lies in the following definition:
A sustained social and institutional mobilisation and organisation for sustainable accelerated agricultural growth and development

The Green Revolution Strategy guides our service delivery commitments and focuses on mobilising and organising the ECDoA's communities and institutions to set up and sustain the capacity to implement development interventions to maximise and to increase the benefits of food security, job creation and building wealth for present and future generations.

The emphasis is on our people and institutions and on building their capacity to optimise sustainable benefits from natural, financial and human resources. In this regard, we consider agricultural development to be primarily a social process that leads ultimately to reaping economic returns.

Thus, to institutionalise the process, we have designed and implemented five performance-based strategic phases that are shown in Figure 3. The figure is expanded upon in the Strategic Plan, suffice to say that it is based on the Green Revolution Strategy and each phase is directly linked to each of the five pillars of the Strategic Plan.

Performance-Based Strategic Phases

4.2 The Green Revolution Goal

The overarching goal of the Green Revolution Strategy is Rural Development and Agrarian Transformation.

Honourable Speaker, we have conducted a Green Revolution pilot exercise in the Mbashe area. This has served as a critical leading and learning light in co-operation and organisation. Villages, communities, women and youth groups have successfully organised themselves into collective buying and marketing structures, which are the basis for implementing the Green Revolution.

An impact assessment of the pilot site at Mbashe has revealed a number of positive spin-offs; the Siyazondla programme has provided a useful engagement in the form of employment of the people involved who were previously not employed. This programme is currently the highest contributor to the local sources of income, while the others individually contribute less than a quarter of the total local income. Apart from participants being able to produce to satisfy home consumption, there are a higher number of them selling some products which suggests that farmers have extra produce to sell to generate income for other needs.

Siyazondla has had a positive impact, since most of the people are happy because of the benefits like gaining knowledge in producing different crops and the resultant increased production leading to self sufficiency. In addition, being part of the project has helped farmers to come together as a unit not only for farming but to use their groups for other developmental needs of their respective communities and to learn from each other's experiences. Incidences of diseases and pests are low. More importantly the study has provided a bench mark by which future assessment and studies will be compared to determine the level of improvement of the Siyazondla programme.

Three Siyazondla Congresses were arranged for socio-technical integration and capacity development in the wider Mbashe area and served to emphasise the vitality of the Green Revolution process from which we continue to discover and learn.

Honourable Speaker, the preliminary successes of the Green Revolution approach has convinced us further of the correctness of the Green Revolution as the overarching Strategy for the Department's Five-Year Strategic Plan. This will be elaborated upon later in this presentation.

4.3 Green Revolution Service Delivery Model

Honourable Speaker, the Department's Green Revolution commitment has now taken centre stage in the Department's Strategic Planning. Our approach to the Green Revolution Service Delivery Model is indicated in Figure 4.

In the 2007/08 Policy Speech, reference was made to the critical role that the Eastern Cape Rural Finance Corporation (Uvimba) would play as a key facilitator of cost effective service delivery through Vulithuba. It was indicated that Vulithuba will, over time, on a contractual basis, take on the implementation and project management of most of the entrepreneurial agricultural production and agri-business development initiatives of the Department.

The Department and ECRFC (Vulithuba) have made significant strides in giving effect to this mandate and Vulithuba is currently project managing some of the key projects. It has been identified that there is an urgent need to develop the capacity of Vulithuba through the deployment of skilled personnel from the EC Department of Agriculture and the contracting of specialist services externally. It is not the intention to develop Vulithuba into a large organisation, but it is critical to ensure that each project is resourced with the best possible skills, internally and externally as we cannot compromise on meeting the performance criteria established for each project.

The ECRFC is currently evaluating different business models for Uvimba in the light of the evolving strategy to develop Vulithuba into a world class agricultural project management and consulting organisation. The formation of AsgiSA (Eastern Cape) (Pty) Ltd and its high level strategy to introduce two mega agricultural development projects, integrated cropping (bio-fuels) and livestock, brings in an exciting and positive development. The importance of ensuring strategic and operational alignment cannot be understated and the Department, with the support of an enhanced ECRFC, will play a critical role in this respect. It is the intention of the ECDoA to forge close strategic partnerships with AsgiSA and other key role players to ensure effective service delivery. To enhance the capacity of the ECRFC to play these role two additional divisions, Livestock and Integrated Cropping and Bio-fuels will have to be created. That will allow Vulithuba to focus on three functions: to follow Uvimba's Rand; rehabilitate and nurture collapsed emergent farmers; and, to "hold" farmers indebted with the Land Bank, so they do not get auctioned back to commercial farmers.

Internationally competitive cross-cutting value chains which link international markets to domestic production with backward integration reaching right into the heart of the rural areas are a cornerstone of the Green Revolution Strategy. The potential investors, who are prepared to invest billions in the East London and Coega industrial development zones (IDZs), as well as in other parts of the Eastern Cape, will often need off-take agreements to ensure that they have a reliable, cost competitive and quality supply of feedstock to supply their customers. This will increasingly result in the creation of direct and indirect jobs across the value chain.

5. The Six-Peg Policy Framework

Underlying the Green Revolution approach, the Six-Peg Policy Framework is based on essential infrastructure installation such as fencing, tractors and implements, dipping tanks, stock water dams, irrigation schemes and associated human capacitation. Over the past year, we have erected some 650 kilometres of fencing, upgraded 72 dipping tanks, developed 42 small irrigation units, established 30 stock water facilities and developed a variety of services and structures associated with poultry production, piggeries, dairies and hydroponics production. In addition, 25 tractors have been added to the mechanisation capacity in underdeveloped areas.

Honourable Speaker, let me emphasise again that Six-Peg infrastructure services are not established for their own sake. In each instance, they are a means to very specific ends related to increased production and capacity.

6. Strategic Functions as Derived from the Green Revolution and the Six Pegs
6.1 Strategy Development and Management

The Strategy Development and Management's primary function is to ensure strategic and operational alignment vertically and horizontally, policy and legislation development and regulatory services as well as monitoring and evaluation. It is a critical responsibility of this strategic function to ensure that at all times the strategy of the department is aligned with the goal and strategic objective of the governing party, as reflected in its Manifestos and January 8th statements.

The ECDoA has been restructured to ensure alignment to the overarching strategy, Green Revolution and the strategic functions. Each organisational function will have a balanced scorecard which can monitor and evaluate progress against the strategic objectives of each strategic function.

6.2 Support Services

The Support Services primary function is to ensure effective administration, management accounting, financial accounting, supply chain management, risk control and human resources management services. This function plays a critical back office role in facilitating an environment which enables best practice services to be delivered to key stakeholders.

Strides to pursuing the process of undergoing a paradigm shift from purely administrative support services to those which are fully fledged strategic partners in service delivery have been noticeable in the previous financial year. It is for that reason that a 5-Level Pyramid Model is proposed for implementation which delineates roles and responsibilities per level of operation in the forthcoming year.

6.3 Infrastructure Development and Farmer Support

The Infrastructure Development and Farmer Support's primary function is to ensure the provision of on-farm infrastructure, build and repair dipping tanks, shearing sheds, sales pens, fencing of grazing camps and arable lands, provision of stock water dams, build and revitalise irrigation schemes, provision of tractors and agricultural implements. Whilst on the other hand, farmer support services provide key advisory services to farmers. The challenge is that the current mandate of the department does not include off-farm infrastructure such as roads to and from markets.

6.3.1 Infrastructure development and installation

The Eastern Cape province is faced with a serious backlog of infrastructure in the agricultural sector. The level of service which infrastructure is being provided so far is currently inadequate to match up with the rate of Provincial infrastructure development demand. The objective of infrastructure development is aimed at promoting the following:
* ensure viable commercialization of irrigation schemes
* to support agricultural production and agro processing
* commercialisation of small units
* promote commercial livestock production
* ensure sustainable management of agricultural resources
* successful implementation of Comprehensive Agricultural Support Programme (CASP)

In fulfilling such objective, the department will boost agricultural production through the provision of agricultural infrastructure viz:
* erection of fencing to approximately 10 million ha of grazing land
* provision of irrigation infrastructure to approximately 170 000 ha of irrigable land with water resources
* upgrading of existing irrigation infrastructure on the seven big irrigation schemes
* provision of stock water dams and stock water facilities for the fenced 10 million has of grazing land
* provision of storage and agro-processing infrastructure for the increased production
* soil conservation structure for environmentally sensitive areas as well as degraded areas
* construction of shearing sheds and sales pens and other holding facilities.

6.3.2 Extension services

The Extension Services' cadre is crucial in realisation of the over-arching Goal of the Green Revolution Strategy in particular to the implementation phases that include a sustained social and institutional mobilisation and organisation in order to ensure sustainable accelerated agricultural growth and development. Strategic leadership for these cadres has been enhanced with the appointment of two Senior Managers to head Extension Services and the division of the Province into two segments, each with a General Manager and Senior Manager, Extension Services.

6.4 Veterinary services, animal and plant production improvement

This function involves animal breeding programs, provision of nutrition, integrated cropping, marketing of livestock and veterinary services.

6.4.1 Animal Production Improvement

* Animal Branding

The department continues its efforts to implement the Animal Identification Act of 2002 which requires that all livestock be branded for ease identification. Given the fact that the province has the highest livestock population in the country with 60% in the eastern segment whilst 40% in the western part of the province, the implementation of this Act will curb the prevalence of stock theft especially in the communal farming areas. A team of experts from the Veterinary University of Hannover are in the province to assist the department to develop an animal identification system which will not only curb stock theft, but will also facilitate marketing of livestock from the communal areas.

Nguni cattle

The number of nucleus Nguni herds in the Province was increased to 50 through the efforts of the Döhne Agricultural Development Institute and the University of Fort Hare. The programme of spreading the benefits of the indigenous Nguni breed to other communities will be extended in the future.

6.4.2 Integrated cropping and biofuels

While national policy developments regarding biofuels were being finalised, the Province engaged in significant planning initiatives with respect to integrated crop production focussed principally on food security and as a secondary spin-off on value-addition through biofuel production. This will result in the planned development of some 500 000 ha of dryland integrated cropping on currently underdeveloped land over the next several years starting with demarcations of 70 000 ha. The department will fence 30 000 ha of crop land for integrated cropping. 5 000 ha (out of the 30 000 ha) shall be used to plan summer crops including soya beans and maize in October 2008.

This programme is viewed as the catalyst for accelerated rural economic development and forms the basis for a mega-project to be established through the AsgiSA (Eastern Cape) Programme during 2008/09.

Apart from the potential marketing of oil-seeds for bio-diesel production, the output will also benefit the livestock industry; thus adding further to rural/agrarian transformation and creating further jobs through integrated cropping mega-projects.

Similarly, innovative ethanol production will be secured from the emerging sugar-beet industry in the Fish River Valley where the process of securing investment partners has reached an advanced stage. To protect and advance the interest of landowners, the department has developed a model for business investment while taking advantage of the Black Economic Empowerment opportunities.

From a strategic point of view, it is intended to establish an Eastern Cape Bio-Fuel entity through a business investment model proposed as an Integrated Cropping and Bio-fuel Development Model (ICBDM) demonstrated hereunder in Figure

Integrated Cropping and Biofuel Development Model (ICBDM)

The mandate and objective of the proposed entity will be to use this model in developing a sustainable, efficient, equitable and competitive biofuel industry for the Eastern Cape. This entity will carry out this mandate on its own or with carefully selected strategic partners, always taking into consideration the matters of strategic national interest. Fundamentally, the aim is to protect and advance the interests of landowners whilst simultaneously taking advantage of the Black Economic Empowerment opportunities.

6.5 Technology Development and Research

The Technology Development and Research's primary function is development of appropriate agricultural technology, research including social research, management of research stations and laboratories, dissemination of research information and publication of research papers.

6.5.1 Socio-economic Research

The preliminary monitoring and evaluation exercise recently conducted, revealed a need to undertake a socio-economic research in the service delivery programmes of the department. It is anticipated that through socio-economic surveys, it will be feasible to assess the socio-economic impacts the Department's major programmes had on poverty alleviation, unemployment and inequality. The results of these surveys will provide us with the solutions to address the challenges that may arise or the opportunities to replicate the success stories which will eventually lead to setting realistic targets for a successful agrarian transformation. On the other hand, such results will enable the Department to be abreast with agricultural development trends in our areas of jurisdiction in terms of our service delivery performance.

6.5.2 Animal Research

* Grazing Capacity Norms
A project to establish grazing capacity norms and other relevant rangeland parameters using remote sensing technologies, assisted by current stocking rate trials and veld monitoring initiatives will be implemented during the forthcoming financial year in the municipalities of the Transkei and Ciskei regions where such data is critically lacking.

* Dexter Project
The focus of this multi-disciplinary project is to curb the rising costs of milk production on a sustainable basis by breeding Dexter cattle with a resistance to ticks and other diseases and which require comparatively less food than other breeds.

Crop Research
* Biofuel
Investigations have been conducted on all possible crops that can be used in the biofuel industry. Trials have since ensued on such crops in places such as Bizana, Mqanduli, Ngcobo and other sites that have been identified for expansion.

* Mycotoxin reduction
In order to curb the high incidence of throat cancer in humans associated with the consumption of mycotoxin-contaminated crops, a research on susceptible crops is taking place at OR Tambo and Amatole districts.

6.6 Entrepreneurial Development

The primary function of Entrepreneurial Development is to facilitate implementation of PPPs, co-operatives, Agri-BBBEE, agro-processing, food production and processing, value adding off farm gate, promoting distribution modes and farming systems.

6.6.1 Food Security

Improved food security lies at the core of the PGDP and the department endeavours to contribute towards this end through the following initiatives:

* Household Food Security
Honourable members will appreciate that food security forms the cornerstone of social stability and sound growth and development.

The Siyazondla subsistence household food security programme has brought benefits to over 17 000 households, comprising 130 000 individuals, over the past year. This remains the fundamental element of the EC DoA's food security and development programme, which provides essential food needs and also expands household food security skills and develops future agricultural entrepreneurs.

Furthermore, the development of alternative local vegetable and processing facilities through the Agri-Park concept will not only ensure the off-take of excess household production, but will also provide local employment and a local supply of processed, nutritious and preserved foodstuffs. The Agri-Park initiative was developed over a four-year period of co-operation with the University of Fort Hare and the first satellite Agri-Park will be established at Dutywa to contribute towards sustaining the benefits realised in the Mbashe Green Revolution Pilot.

* Siyakhula and Massive Food Production
The Siyakhula and Massive Food Programmes have realised significant performance over the past season. Some 54 000 tons of maize were produced, together with smaller quantities of other field food crops like potatoes, sorghum and beans. Progress towards sustainability is measured by an increase in the average yield of maize from 1 tonne per ha in the first year to 3 tonnes per ha in 2005/06 and to 3½ tonnes per ha in 2006/07. Both programmes will expand the range of products to include winter crops and animal fibre. We must produce throughout the year, if ware to be internationally competitive.

The programme realised 356 cropping projects extending over 13 000 ha with an investment of over R 7million generated from the previous crop. Such commitment by community farmers will allow an accelerated expansion of the benefits of the Programme to new participants and will ensure that the mind-set of self-sustaining commercial agriculture is strengthened.

Honourable Speaker, it is evident that the seeds for building a sustainable rural economy, with increasing employment and food security are steadily emerging.

* Maize mills
Increasing crop production in underdeveloped high-potential areas has highlighted the disjuncture between the production and marketing of agricultural output. This is a distinct disadvantage that stifles the emergence of sustainable agricultural value-chains. Thus, developing appropriate storage milling capacity for maize in production areas close to markets contributes towards improved sustainability and reduces food and fodder costs. The first significant maize mill was erected at Flagstaff; and mills at other strategic locations are scheduled to follow once this first facility is fully operational.

6.6.2 Livestock Production

* Wool
Returns from wool sales in developing areas of the Province increased from R15 million to R30 million during the past season. Whilst 40% of this increase was due to world commodity price increases, 60% was attributable to improved product quality from local sheep and wool development programmes.

The introduction of some 3 200 rams annually over the past several years, together with the development of production infrastructure, such as shearing and sorting sheds, improvements in containing livestock diseases through veterinary service improvements, and improvements in the development of wool classification and marketing skills have contributed significantly to the development of the wool industry.

* Ostriches
A new and growing production base for the ostrich industry was established at Ngqushwa. Five million rands allocated towards infrastructure and input support which resulted in the development of small-unit ostrich production entities and co-operative market scheduling. This is in support of a 51% broad based black economic empowerment (BBBEE) share in the ostrich abattoir meat processing facilities in Makana.

* Dairying
The Eastern Cape produces 28% of milk output in South Africa; and has the potential to expand production even further. During the past year, a modern dairy with a 600-cow capacity was established by the University of Fort Hare in partnership with a body of commercial dairy farmers. Within six months, the 600-cow potential was exceeded as a result of significantly improved forage production capacity. The provincial dairy industry is expected to grow significantly through the demonstration and learning that results from this first fully operational large-scale commercial dairy operated for training dairy farmers.

Promoting dairy projects for women, whereby 50 dairy cows together with a tractor and a trailer were purchased as start-up capital for the Qamza/Platjie farm in Amathole District, being the very first dairy owned by women, currently producing 1100 litres of milk every two days and selling at R3.00 per litre and a new dairy parlour mainly for women was completed in the Nazi village at Port St Johns.

6.6.3 Crop Production

* Tea Production
The Magwa and Majola tea farming estates are now developed under the responsibility of the Eastern Cape Department of Agriculture. This allows us to work towards improving production efficiencies; which, together with diversification into other high value crops is projected to establish economic sustainability and to generate future profits. Essential oils have emerged as a viable option that is to be explored by planting 10 ha at each estate. Marketing strategies are being developed for both local and international markets, with. It is anticipated that these initiatives will provide secure employment opportunities and increase the capacity of the enterprises to maintain existing employment and generate wealth and further job creation. Institutional arrangements for local ownership and sustainable business and production management/discipline are far advanced in Majola. Similar initiatives will soon follow at Magwa.

* Sugar cane Production
A sugarcane project located at Northern Pondoland with an area of 3000 ha is presently producing sugar in 1050 ha and in other area the farmers are busy with clearing of forest, debushing of forest trees. In the new areas they are developing fire belts to be able to control astray fire and pathways to control soil erosion. There is, however, a post-restitution social conflict which has brought effective production almost to a halt. The matter is receiving attention.

* Pineapples
The re-structuring of the pineapple industry, based on the full support of all stakeholders, including labour, producers and processors, will result in the consolidation of the industry and the re-location of processing facilities from East London to Bathurst. Government has acquired a 26% equity out of a R140 million investment on behalf of the workers in the industries, as part of transforming this industry. The necessary technical and legal processes involved are being undertaken presently, including the establishment of a Workers' Trust.

The development of alternative pineapple products will assist in the diversification of the industry and increase its potential profit base. This will, in turn, ensure improved sustainability and the further expansion of production, value added and job opportunities.

* Citrus
Government support to previously underdeveloped citrus producers and co-operation with local established citrus producers has secured significant loan funding to ensure the development of sustainable citrus production units. An initiative by the late John Gomomo (MP) and the Sunday's River Citrus Company, with our support and funding from the IDC is fast becoming a model in this regard. A company of emerging farmers in the valley yielded a R2,1 million profit this year. We are steadfastly dealing with the challenges of Kangela, Enon and Bersheba.

We will report to this House on this matter in due course. Promotion of agro-processing and value adding with specific reference to citrus is enhanced in order to enable black citrus farmers enter into export markets in order to maximise benefits that accrue though the value chain. This will entail provision of a pack shed and exposure to international trade and securing citrus export markets.

* Deciduous fruit

* Port St Johns
There are two projects situated at Emantisini and Emngazana with an area of 60 ha. The farmers at present are busy planting fruit trees in two different sites at 10 ha each.

* Cala
The area of this communal project is 4.5 ha with 450 fruit trees. 300 trees are under peach production and the farmers are busy testing the adaptability of 75 apples and 75 pears.

* Western Region
There are three prosperous projects at Misgund and Louterwater with a hectarage of 600 ha. Misgund Farmers Trust has two projects for emerging farmers and six farms for commercial farmers. These are successful and sustainable projects as they are making fascinating profit with main production of apples, pears, peaches and parsimon fruit. There is also Outré Farm which is producing under a Joint Venture of emerging and commercial farmers. Through their effort they managed to own park shed and cold storage rooms. They have established a marketing arm with Z22 PTY (Ltd) and this contribute to their success of sustainable business and production. There are also other projects that are still in their developmental stage and are supported by LRAD programme of the department.

* Vegetable Production
This large scale vegetable project facilitated by the Uitenhage and Despatch Development Initiative is the brain child of the Tinarha Agri Tourism Initiative. The establishment of an organic farming operation where a section of the crop will be for the export market will produce cherries, tomatoes, pumpkins, potatoes immensely. It is envisaged that this project at inception will create 100 jobs escalating to between 300 and 400 once a value-adding, high tech pack-house and a fertiliser plan will be built.

6.6 Human and institutional capacitation

The Human and institutional capacitation's primary function is to ensure training of farmers, training of officials, mentorship and coaching, management of farmer training institutions and farmer support centres, social facilitation, implementation of agric education and training strategy coordination with other strategic partners in agricultural education and training.

6.7.1 Developing agricultural human resource capacity

We all understand that sustainable agricultural development can only progress as rapidly as there is sound capacity to nurture and nourish it. Hence, the future lies in consistent skills development. The exercise of conducting a Farmer Skills Audit and development of training plans is at an advanced stage in that service providers will now be appointed by April 2008.

Training in programmes like the Comprehensive Agricultural Support Programme, CASP, will continue to meet the requirements of EPWP. Current collaboration with the Department of Labour on farmer training is projected to train 8 000 farmers within the CASP, Siyakhula/Massive food and Landcare projects

Enhancing skills of the 43 Extension Officers through specialized training at the University of Fort Hare continues. Twenty (20) Extension Officers are scheduled to complete their final year of the B Agric degree in the 2007 academic year. On the other hand, plans are in place to increase the intake of Extension Officers participating in the CAPRI Programme already mentioned above from 80 to 250 per annum from the next financial year.

6.7.2 Agricultural Tertiary Institutions

Agricultural training receives added priority and momentum with the appointment of a senior manager responsible for Agricultural Education & Training. At last, the management of the Fort Cox College has now been assigned to ECDoA which presents an opportunity to make the College play a vital part in the realisation of the Department's human and institutional capacitation strategic goal.

6.7.3 Farmer Support Centres

Farmer training and development will be boosted through the setting up of Farmer Support Centres. The construction is underway at Tsolo Agriculture and Rural Development Institute in order to improve the infrastructure based on one of the world's leading institutes on farmer training – Duella College in Germany. Thereafter there will be systematically established at strategic locations to intensify agricultural activities in all District Municipalities. Satellite centres are envisaged to be established in order to access remote areas. Farmer support centres are not semi-commercial agricultural input supply points as it is economically most sustainable and cost effective when this opportunity is serviced through existing and new local commercial retail outlets. The farmer support centres will provide models of best agricultural practice and operate as a base for demonstration training and in situ hand-on practical agricultural production skills development. This effect will be expanded through facilitating a structured process of farmers imparting acquired skills and experience to as many fellow farmers as possible. Farmer support centres will provide models of best agricultural practice and operate as a base for demonstration training and in-situ hand-on practical agricultural production skills development.

7. Green revolution strategy monitoring mechanism

The department has established a stakeholder political monitoring and evaluation structure known as the Agricultural Development Monitoring Forum whose main function is advising the MEC in the political oversight of the Department. It has become increasingly evident that it is essential that the stakeholders are able to establish the contribution made by the Green Revolution Strategy in achieving the strategic goals of the PGDP. A technology-based monitoring and evaluation system is currently being set up to ensure the integrity of information in the reporting system.

In evaluating our performance, we have decided to introduce the Balanced Scorecard system to ensure that it is possible to monitor and evaluate the progress of the Green Revolution Strategy. The Balanced Scorecard is defined as a system that translates an organisation's strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system.

The organisational restructuring of the department to align with the Strategic Plan and indeed to the Green Revolution strategy makes the introduction of the Balanced Scorecard system both timeous and necessary at this important juncture. The intention is to cascade the Balanced Scorecard, systematically, to all levels of the Department as well as to the key stakeholders. This is the start of an ongoing journey which will transform the way in which we lead and manage the department. However, the said organogram requires funding in order to ensure all posts are filled particularly critical skills required by the ECDoA.

The balanced scorecard will be populated with quantitative and qualitative KPIs and targets.

Honourable Speaker, the deliberations that led to the decision to adopt the Balanced Scorecard approach stem from a strategic review of the Department's structure, policies and performance assessment.

This has resulted in a strengthening of our Implementation Pillar, introduced last year, to formulate a lay-out plan for the Performance-Based Reporting System (PBRS).

With these innovative developments, the Department of Agriculture now has:
* Five clearly delineated and dynamically aligned Responsibility Pillars as set out in our current strategic plan and improved upon by the PBRS [viz., Political Pillar, Managerial Pillar, Operational Pillar, Implementation Pillar and Feedback Pillar].
* Five related performance-based Tactical Phases [viz., The social and institutional mobilisation phase, the social and institutional organisation phase, the planning, training and formation/capacitation phase, the implementation phase and the developmental phase].

These represent coherent procedures that will enable us to proceed with accelerated and massified agricultural growth, systematically and sequentially, throughout the province. There is little doubt that effective balanced scorecard procedures will assist us in finding the correct course and keeping to it.

8. Conclusion

Honourable Speaker, the Eastern Cape Department of Agriculture has made significant progress over the past three to four years.

The Policy and Budget Speech for 2008/09 represents the coming together of a number of new and exciting strands with which we shall weave the basic elements of rural development in the province.

Our central commitment to the principles of the Green Revolution and its extension to all aspects and components of the ECDoA in the Province forms the basis for the way in which we will commit our endeavours during 2008/09 and beyond.

Honourable Members, we are encouraged by the adoption of the Green Revolution initiative as a Provincial Transformation Strategy in the Honourable Premier's State of the Province Address.

The references to integrated infrastructure clustering, human resource capacity building, appropriate technologies and agricultural research to produce better crops is particularly relevant to our plans for the 2008/09 to 2010/11 MTEF.

We have noted, too, that the Honourable Premier referred to the Agri-Park initiative that was developed in co-operation with the University of Fort Hare as a success that lays a sound foundation for further relevant and focused rural development in the Province. We look forward to realising the benefits of the key planning initiatives that we have outlined today over the next three years.

As should be evident, Honourable Members, our department cannot possibly succeed on its own in the overall implementation of these plans and those of the province, as reflected in the PGDP, DGDS resolutions and in the IDPs of the Municipal sphere of government. We are also mindful of the plans, budgets and targets of other Provincial Government Departments. Success depends on an integrated, committed and shared responsibility to secure the overall objectives of the province.

We look forward to developing and implementing such a shared endeavour through the deliberations of the Economic Growth and Infrastructure Cabinet Committee and the Economic Growth and Infrastructure Cluster.

To the agricultural society, I hereby renew our moral-political commitment through the words of Jim Wallis quoted from his book The Soul of Politics, "In the cries and prayers of the poor, we will hear the spiritual call of our time. Though most would consider the idea foolish, the point of this Gospel passage is that our future is with the poor; our destinies are tied together, one way or another. Despite the many noises of this society that distract our attention, assault our minds and harden our hearts, we have a very real stake in one another's lives. And the circumstances of the most vulnerable among us are always the best test of our human solidarity with one another."

I thank you.

Issued by: Department of Agriculture, Eastern Cape Provincial Government
11 March 2008