[ Home ] [ Speeches & statements ]

10 June 2008

Madam speaker and deputy speaker
Honourable Premier
Colleagues in the executive council
Chairperson of the Portfolio Committee on Agriculture and Land Reform
Honourable members of the House
Traditional leaders
Mayors and councillors
Heads of department and other managers in government
Head of department, senior management and staff of the Department of Agriculture
Invited guests and members of the agricultural community
People of the Northern Cape
Compatriots, comrades and friends

The World Economic Forum met in Cape Town last week and was addressed by both presidents in our movement, President Mbeki and President Zuma. The forum has highlighted four core risks that threaten Africa, namely
* food and water security
* economic shocks
* political instability even if conflicts are decreasing, social unrest is a risk and
* climate change.

The four risks are considered to be interconnected, in that stronger institutions are needed to manage them all. Madam speaker, the greatest risk facing South Africa and its working class remains poverty and unemployment. And therefore a developmental state is an important ingredient in the creation of decent employment opportunities. This has been a focus area of our government's policies since its inception.

However, South Africa still faces many challenges. An intensive effort is required to elevate the working people and working class from poverty. Farm and domestic workers are still prone to exploitation and below the breadline wages.
Load shedding compounded by the electricity crises in our country, further placed vulnerable workers in the position of being at the mercy of some employers who threaten to retrench them.

Madam Speaker, the progress we have made in reducing poverty is at risk of being reversed because of high food prices. The constitution entrenches the rights of all citizens to have access to adequate food and water. It legally binds the state to use its available resources and other means to ensure that people enjoy the basic right to food. The ANC led government is constitutionally mandated to facilitate national and household food security.

The fight against high food prices should be the collective responsibility of government and its partners. Any concept of well being and survival is driven by the adequate provision of food. Food prices have risen dramatically in recent years and have put enormous pressure on the poorest of the poor who cannot even afford the most basic provisions. The age of cheap food seems to be over.

The war against poverty has been dealt a severe blow by the soaring cost of food. The Food and Agriculture (FAO) food price index rose by approximately 40% in over a one year period in 2007, while the increase in 2006 was only 9%. towards the end of 2007, the report on basic food inflation was between 10 and 18 % in countries across the world. The price of milk has gone up by an estimated 32%, brown bread 19%, mealie meal 22%, samp 23%, rice 24%, and breakfast oats 27%.

Rising input costs have impacted on the agricultural sector. The cost of farming has increased because of the rising fuel and fertiliser prices. National Agricultural Marketing Council (NAMC) report has shown the producer price for maize to have risen by 252,6% from 1990 to 2006 while the prices of farm inputs have risen by 255, 7 % in the same period. The input price squeeze is predicted to worsen in 2008, which poses a serious challenge for producers.

The input price of basic food stuffs is directly affected by the rising transport costs with higher oil prices which indirectly led to a reduction in food reducing production or increasing prices at the shop level.

Madam speaker, the government's intervention to carry the poorest of the poor through these difficult times is correct and it is the only way for our poor to survive. The social relief stress grant is a temporary social grant aimed at dealing with these types of emergencies. The South African government acknowledges the challenges experienced by the majority of our people and in this light, national cabinet has set up a committee to further investigate on a number of policy options to deal with the current problem.

One of the long term policy options being proposed will be to increase agricultural production in our country. However this intervention will definitely require more funding than the current situation. We must be aware that Agriculture in our province and South Africa at large is currently funded way below the African Union (AU) proposed target of 10% of the country's budget.

The struggle will not end until the promise of dignity and freedom from poverty, malnutrition and disease has been realized by all South Africans. The success of the African National Congress and its alliance partners, Congress of South African Trade Unions (COSATU), the South African Communist Party (SACP) and South African National Civic Organisation (SANCO), in upholding the principles of the Freedom Charter is an inspiration to all South Africans since it instils a sense of hope for an exciting future.

The principles encapsulated in the Freedom Charter were meant to transform the minds of the oppressed from the barren and negative struggles of the past and the present to the joys of experiencing true freedom. It sets out the democratic changes required to enable all the people of South Africa to enjoy equal rights and opportunities without distinction of colour, race, sex or belief.

This is why the retrogression of our South African society by being xenophobic cannot be condoned and we will do everything in our power to remove criminals who are hell bent on destroying the unity of Africa. Using the Freedom Charter as our handbook, the department has been engaged in a continuous war against the injustices of the past and we are intensifying the war against poverty. To this end, we have speeded up land and agrarian reform. We have fine tuned agricultural support services and are succeeding in improving the capital base of our emerging farmers.

Madam speaker, the agricultural sector is also beginning to feel the effects of climate change. Erratic climatic conditions make effective planning difficult on the part of producers, and therefore impacting on their yields and overall performance of their businesses.

Land reform
The Northern Cape and Free State Regional Land Claims Commission has to date settled 2525 claims, with 289 still outstanding. 62 of the 289 claims were dismissed and 227 are various stages. The settlement of the Richtersveld claim will not only go down in the annals of history as an example of the progressive nature of the laws of this country and a proof that we regard the reparation for injustices done in the past as something this country takes serious, but our commitment to empowering our communities and ensuring that the land must remain in the hands of the tiller has also been reaffirmed.

The settlement of the claim was done in three parts, as follows
First, the restoration of land, with
* Alexkor, which was claimed for restoration
* the state land held by Department of Public Works and Provincial Government of the Northern Cape through the Department of Agriculture and Land Reform, which was availed as an alternative land
* Alexkor, Portion three (Beauvallon) of the farm Groot Derm No 10 in lieu of monetary compensation as equitable relief.

The second part was mining rights, whereby
* The Richtersveld community through its shareholding in RMC should acquire mining rights pertaining to the exploitation of diamonds on land in the mining area of Alexkor and in addition that Alexkor grants a right of pre emption in respect of the mining rights pertaining to the exploitation of diamonds in the marine area which vests in Alexkor.

Thirdly financial compensation, which included
* Extra ordinary reparation payment of R190 million to the Investment Holding Co to be paid over three years
* R50 million lump sum as development grant
* R45 million to be paid once the occupation is reserved in the title deeds as soon as registration takes place
* R1, 331 100,00 rehabilitation
* R700 000,00 for farming and mariculture.

Madam speaker, today we want to report to this house our progress in implementing the terms of the settlement agreement.

On the transfer of agricultural and mariculture, inventory of the movable assets was concluded and signed and assets were transferred to the Richtersveld Agricultural Holding Company disbursement of R50 million to the RVC for development was disbursed as well as the first instalment of the R190 million.

Township establishment is on track with the formal establishment of the township. The engineering services have identified the infrastructure that requires upgrading. A draft layout of the township was designed. A second phase comprising the submission of a town planning application, design of civil and electrical services, surveying of the plan and environmental impact studies is underway. Survey of all even and roads has also been completed.

The diagrams will be sent to the surveyor general in Bloemfontein for the registration of the township. The town name has been registered as the official name that the area will be called as Alexander Bay.

The Department of Public Enterprises has signed a Memorandum of Understanding with the Development Bank of Southern Africa (DBSA) setting out the framework for the DBSA to act as implementing agent for the development of the Alexander Bay Township. The DBSA will take over the project under its sustainable communities programme.

On the transfer of land and properties, the ownership of land and rights in land is a real empowerment of people, more so for the poor. The transfer of land to the community of Richtersveld and the economic empowerment this has brought to the community cannot be under estimated. A total of 194 600 hectares of land, including 85 000 hectares coastal strip of diamond bearing land which is currently being mined by Alexkor has been delivered. The transfer processes are in progress.

On redistribution, the provincial land reform office has managed to deliver 107 451.1014 hectares of land in 2007/08 financial year, through Land Redistribution for Agricultural Development (LRAD), Commonage and Pro-Active Land Acquisition Strategy (PLAS). This benefited 210 beneficiaries.

With the Transformation of Certain Rural Areas Act (TRANCRAA) process, the Minister of Land Affairs granted approval for the five areas in Namakwa to be transferred to the legal entities of the communities' choice. These areas are:
* Pella
* Concordia
* Steinkopf
* Richtersveld
* Leliefontein.

Delivery plans 2008/09 include 562 000 ha to be delivered through the provincial office and as well as Land and Agrarian Reform Project (LARP). The process to transfer the facilitation of legal entities for the five TRANCRAA areas will commence end of June 2008. The TRANCRAA process in Mier and Eksteenskuil will also be finalised during this financial year. The provincial office has already acquired 20 000 ha of land as alternative solution towards the Mier land dispute. The total budget for this financial year is R220 000 000.00

Livestock production and development programme
Our Livestock Production and Development Programme (LPDP) has taken shape and is in full operation. 589 animals were distributed under the Livestock Improvement programme (LIP) to 45 farmers in 2007/08. Six more farmers from pilot projects in Frances Baard and Kgalagadi received Nguni cattle under the Nguni initiative between the Department of Agriculture and Land Reform, IDC and the University of Free State.

Wine Development
With regard to the wine development initiative, which is a collaboration between the Department of Agriculture and Land Reform and Northern Cape/Free State Wine Development Company, infrastructure development was completed on three of the projects (Riemvasmaak, Sandraai Arbeidsgenot and Realeboga), which was followed by the vineyard establishment on 12 hectares. In total R1, 560 million was spent on these developments.

Rehabilitation of irrigation systems (Vaalharts rehabilitation)
The master plan with regards to the revitalisation of the Vaalharts Irrigation Scheme has been completed. The plan incorporates the status of infrastructure and the natural resources available. The steering committee on the revitalisation of the Vaalharts irrigation scheme will meet during June 2008 to discuss the implementation strategy, which will include a funding strategy.

Bio-fuel
The National Bio-fuel strategy was concluded and approved by Cabinet and the strategy excludes the use of maize for biofuel production. The current high food prices will undoubtedly require further deliberations among stake holders on the implementation of the strategy in lieu of the food for fuel or food for food security debate taking place worldwide. The production of biofuel should be sourced from inedible crops grown on fallow land and it should be encouraged in a responsible manner.

Kgalagadi

Madam speaker, the incorporation of Kgalagadi into the Northern Cape provided us with an opportunity to extend our basket of services to the rural poor. The department spent R1,580 million Comprehensive Agriculture Support Programme (CASP) and R1,172 million land care funds in response to an acute water shortage in Kgalagadi, which mainly affected livestock.

This was an intervention responding to the emergency situation. Currently the department is busy compiling a comprehensive report regarding the current status of stock water provision systems and the management thereof. A preliminary report has already been submitted to the Portfolio Committee on Agriculture and Land Reform. Planning and implementation will be aligned with the Department of Water Affairs and Forestry's plans for water provision for human consumption.

Disaster Management

On disaster management, Northern Cape received R45 million during November 2007 for the implementation of drought and fire relief scheme. Although implementation started on 1 December 2007, the scheme was successfully implemented by March 2008. A total of 2932 farmers (1600 small-scale farmers, 326 medium-scale farmers and 1006 large-scale farmers) were assisted from R38, 084 million. R46 305 was used as compensation of 3 livestock farmers who were affected by the 2006 veld fire. A roll over has been requested on the remainder of the funds to be used for the improvement of stock water provision and reticulation systems in the Kgalagadi region.

Research

The department in collaboration with institutes such as Grootfontein Agricultural College does research on issues appropriate and relevant to the Province on the seven research stations. With the inclusion of Wesselsvlei in Kgalagadi, Bonsmara cattle have also been included as one of the many breeds being evaluated. The department and its partner can also boast about the flock of Afrino's at Carnavon as the breed having the most comprehensive research information about a single breed of animal. Other animals being researched include the Karakul, Namaqua Africana, boer goats to mention a few.

In specific in the past year, the Nguni veld Bull project was initiated with an intake of 43 young bulls for research purposes.

Web Portal
The department successfully launched a web portal system and I am certain that most of the clients that have recently visited the side will agree with us that it is no doubt an improvement from the previous system.

Madam Speaker, our key focus area for 2008/09 is on the following

1. Land reform

Thirteen land claims will be settled and handed over this year, and this will mainly be on land restoration. 562 000 ha of land will be delivered through the Provincial Land Reform Offices (PLRO) using the LARP strategy with a total budget of R220 million

The process to transfer the facilitation of legal entities for the five TRANCRAA areas will commence end of June 2008. The TRANCRAA process in Mier and Eksteenskuil will also be finalised during this financial year. 20 000ha of land has already been acquired as alternative solution towards the Mier land dispute.

2. Farm workers summit

In her state of the province address, the Honourable Premier of the Northern Cape, Ms Dipuo Peters made a call and challenged the Department of Agriculture and Land Reform to lead a process that will culminate in the development of appropriate interventions to improve the quality of life of people living and working on the farms.

A farm workers summit will provide a platform for engagement and dialogue among role players and stakeholders on issues pertaining to farm workers and farm dwellers, challenges they are faced with and come with appropriate intervention measures to improvement their quality of life and that of their children. The summit will be held in July 2008.

3. Increasing black entrepreneurs in the industry

One of the strategic interventions will include the expansion, processing and value-adding on the Rooibos tea production in the Niewoudville and Suid-Bokkeveld area. Commercial as well as emerging farmers in this area have been in the Rooibos Tea production for the past 50 years and dependant on the Western Cape for their inputs, advisory services as well as the marketing.

The department is now assisting and providing the necessary support in establishing local value adding and storage facilities, business structure development and optimisation of Rooibos tea production. R3 million has been set aside for this purpose. This intervention will contribute towards:
* local job creation from value adding activities
* empowerment of rooibos tea producers, especially the emerging farmers through proper business structure
* expansion of the current tea and buchu plantations
* improved production through better support structures like research and advisory service
* improved local marketing structures.

A joint venture with the Black Tea Company in Limpopo is being pursued for purposes of increasing marketing opportunities and product development. Wine development projects will continue. In addition to the 12ha of vineyard already established a further 8,5ha will be planted this year. R1 million will be spent.

4. Letsema-ilima campaign (increasing agricultural production)

The department will develop or promote initiatives to increase agricultural production in the province. This will include among others, implementation of the following programmes projects

* Production massification

Sixty Ngunis that were purchased in 2007 will be distributed to another 5 farmer groups within this quarter. We have set aside R700 000 for the purchase of more Nguni cattle in 2008/09 as part of the departmental contribution towards this initiative.

* Commercialisation of the goats

An amount of R3 million has been earmarked for the Commercialisation of the goats programme. The funds will be used as follows
* R1,5 million will be used for the purchase of more breeding material for the emerging goat farmers (goat cooperatives).
* R1,5 million will be used for purchase of goats from co-operatives, transportation, maintenance on the farms and other operational costs.

A production farm is now in operation on 15000 hectares of land that was acquired through PLAS. We initiated the process of allocating 100 female goats and three bucks each to the identified 20 co-operatives.

R1,4 million was used to purchase more than 2040 animals from the various goat co-operatives and individual emerging farmers.

* Irrigation systems and crop production

Arable land that is not under production, land reform projects in particular, has been targeted for the supply of production inputs to put it back into production. The focus is also on new irrigation schemes such as BLOCUSO. Particular attention will also be given to other Orange River Emerging Farmer Settlement and Development Programme (OREFSDP) initiatives, with a view to finalise planning and facilitation of water use entitlements.

The rehabilitation of Vaalharts will result water saving from the repairs and upgrading of the infrastructure and introduction of more efficient methods of irrigation. This will contribute to yield improvement. Water saving will also make the expansion of irrigated land possible for there will be enough water to irrigate more land than it is at present. Vaalharts is one of the areas which can contribute towards the increase of wheat production. As already mentioned the finalisation of the master plan has been quite a significant progress and the focus this year will be on the implementation strategy.

Madam speaker, in our efforts towards increasing agricultural production, the department has forged partnerships with various organisations, such as IDC, NCEDA and others. Through the partnership with NCEDA the following projects were initiated:
* Citrus and Pomegranate in Riemvasmaak, whereby an experienced operating partner (Citro Gold) has been engaged to assist the community.
* Production of Pomegranate, Black Fig and Citrus in Onseepkans, benefiting 20 women and with the involvement of Citro Gold.
* Majeakgoro project in Hartswater for fruit production. The farm is also accredited to export fruit.

5. Universal support
Comprehensive support to emerging farmers will be addressed through programmes such as Comprehensive Agricultural Support Programme (CASP), LandCare, Micro Agricultural Financial Institutions of South Africa (MAFISA), Veterinary services and Research

Comprehensive Agricultural Support Programme (CASP)
R36,807 million has been allocated whereby R30 million will be spent on 31 projects, which includes on farm infrastructure development, training and capacity building, marketing infrastructure, production inputs and research and advisory service. 4954 farmers, including communal farmers in Kgalagadi will benefit, with the creation of 700 jobs during various stages of projects implementation. R5,8 million is for Frances Baard district, mainly for irrigation development. Kgalagadi received R7,0912 million for the livestock water infrastructure and fencing. R3,799 million is for Pixley Ka Seme for livestock infrastructure. For Siyanda, R6,5 million will be spent on irrigation infrastructure and for the upgrading of infrastructure on the goats production farms. Namakwa received R6,176 million for livestock infrastructure.

R6,8 million of CASP is for the implementation of extension recovery plan. This is a national plan aimed at improving the capacity of the extension service country wide. It entails the upgrading of qualifications and skills of the current extension personnel, recruitment of new extension officers in order to align with the national norms and standards for extension and advisory services and the provision of the necessary Information Technology (IT) equipment to enable extension officers to deliver a more improved extension service. This plan will be implemented over three years.

The department is planning to have a provincial extension indaba in September 2008. The indaba will provide a platform to engage on issues of extension service delivery in the province and how it can be improved in the light of the new policy priorities.

Veterinary services

In the latter part of the last financial year, Veterinary Services battled an outbreak of Anthrax in the Campbell area. This outbreak, which claimed over 1300 wild game to an estimated value of R2,5 million, is burning out but has left us with a lot of questions. It is our intention to carry out research in collaboration with the Department of Tourism, Conservation and Environment on the Socio economic impact of Anthrax on the biltong and trophy hunting Industry.

In the near future, we will engage the industry on the recommendations of the experts that were invited during the outbreak. This will pave the way forward with regards to Anthrax control in the province. Veterinary Services will continue to monitor and control Food Safety risks and Animal Diseases in the province.

Research and development

The completion of Vaalharts Farmer Settlement Project whereby 28 000 olive trees will be planted on 120ha of land is on target. The project will benefit 12 new farmers and a number of jobs will be created. The completion of spatial development planning process is also progressing. The data that will be used will include data on climate, soil profiles, infrastructure, and other natural resources data. With these datasets various maps will be generated and various modelling exercises will be conducted (e.g. creation of crop suitability models that could be used in new development initiatives to determine which crops will be suitable for a specific area.)

Micro Agricultural Financial Institutions of South Africa (MAFISA)
Since the launching of MAFISA, there was several problems encountered e.g. MAFISA not funding for the purchase of livestock. However, we can today announce that MAFISA has been reviewed to accommodate livestock. This will be of assistance to the majority of our emerging farmers who mainly farm with livestock than crop production. The loan term also has increased from short term to medium term. Several Applications have been received from the farmers throughout the province, which be forwarded to the evaluation committee for consideration.

Marketing support

Farmers have been assisted with marketing information for different commodities. The department is using Agricultural Marketing Information system (AMIS) to assist farmers to know daily market price of commodities around their areas. The marketing services unit is also looking forward to use sms services and public display units to inform farmers about market related issues.

Five district offices have officials trained on the system and they can access the system and update the farmers. The formation of commodity groups by farmers is also promoting better marketing opportunities. Farmers are also assisted with the linkages with buyers.

There has been several talks with stakeholders who pledge their support in buying products from emerging farmers and currently farmers are enjoying the support of those companies like Kimberly Fruit and Vegetables, Sol Plaatje Fresh Produce, Beef Master, LAW abattoir, Vryburg Feedlot, KLK Auctioneers in Kuruman etc. Marketing information days have been conducted throughout the province where stakeholders were invited to share marketing experience with emerging farmers.

Budget Allocation for 2008/09

Madam speaker, the overall departmental budget allocation for the 2008/2009 financial year is R198,51. This allocation includes an amount of R53,885 million for conditional grants and R6,604 million earmarked funds. The budget has been allocated to the various programmes as follows

Programme one: Administration has an allocation of R40,005 million, which constitutes 20% of the departmental budget allocation.

Programme two: Sustainable resource management received R26,927 million. This programme is also housing R6,366 million for landcare and R10,712 infrastructure grant for provinces conditional grants.

Programme three: Farmer support and development. R69,401 million has been allocated, out of which R36,807 is for CASP. The allocation will also be used for the provision of extension support and rural development, implementation of land reform and food security programmes.

Programme four: Veterinary services. R27,596 million goes to Programme four which is responsible for the promotion of sustainable economic growth through export/import and ensuring health and welfare of people and animals in the province. Included in the amount is R1,905, which has been allocated as additional allocation earmarked for mobile clinic and laboratory.

Programme five: Technology Research and Development receives R26,358 million. The amount includes additional allocation of R3 million earmarked for the commercialisation of goats.

Finally, Madam Speaker for
Programme six Agricultural Economics, an amount of R8,304 million has been allocated. This is for the provision of economic support to internal and external clients with regard to marketing, statistical information, including financial and economic viability studies.

In conclusion Madam speaker, I wish to thank the
* Chairperson of the Portfolio committee on Agriculture and Land reform as well as all members of the committee for their oversight role.
* Women in Agricultural and Rural Development for their dedication towards rural development and women empowerment.
* Youth in Agricultural and Rural development for championing the needs of youth in agriculture especially in rural areas.
* Various partners and organisations National African Farmers Union (NAFU), Agri Northern Cape, Griekwaland-Wes Co-operative (GWK), Industrial Development Corporation (IDC), Northern Cape Development Agency( NCEDA), Land Bank, Agricultural Research Council (ARC) and others for their engagements and assistance in various development initiatives.
* Provincial Land Reform Office (PLRO) office, Mr O Mvula and staff.
* Provincial Land Commission, Mr S Hlongwane and staff.
* Head of Department, Senior Management and staff within the department.
* All staff within the Finance Directorate for keeping things afloat without the Chief Financial Officer and
* Head of Ministry, Faisal Aysen and all ministerial staff for their support.

Issued by: Department of Agriculture and Land Reform, Northern Cape Provincial Government
10 June 2008