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20 February 2009

Programme Director
MEC for Gauteng Agriculture, Conservation and Environment, Mr Khabisi Mosunkutu
MEC for Western Cape Agriculture, Mr Cobus Dowry
Acting Director-General of the Departments of Agriculture, Ms Emily Mogajane
Director-General of the Department of Land Affairs, Mr Tozi Gwanya
President of National African Farmers Union (NAFU), Ntate Motsepe Matlala
President of Women in Agriculture and Rural Development (WARD), Umama Molo
President of Youth in Agriculture and Rural Development (YARD), Mr D Phungo
Heads of Departments
Our AgriBEE beneficiaries
Members of the media
Ladies and gentlemen

I stand proud today to announce that the agricultural sector is not silent on issues of socio-economic transformation in the country. Honourable guests gathered here today, you will recall that the Departments of Agriculture and Land Affairs have reached notable milestones in addressing the socio-economic imbalances of the past. It was in March and April 2008 that the Agricultural Sector Transformation (AgriBEE) Charter was gazetted and launched respectively with stakeholders.

It was in December 2008 that I inaugurated the appointed AgriBEE Charter Council with the mandate of overseeing the implementation of AgriBEE and report on its progress in the sector. This council, as some among you will testify, consists of all the major stakeholders in the sector and it is gender inclusive, having a number of women representatives, including a youth representative.

The involvement of women and youth in the mainstream of the economy, particularly the agricultural sector is of national significance and it should not be by default, but by design. The government has committed itself to meaningful participation and empowerment as is contained in the Broad Based Black Economic Empowerment Act No. 53 of 2003. This will be promoted through the scorecard points allocated to the broad-based groups across the seven (7) elements of empowerment.

These elements are the general ownership of agricultural land, management control, employment equity, skills development, preferential procurement, enterprise development and rural development, poverty alleviation and corporate social investment.

Programme Director, having said this, it is also important to note that the country is sitting with emerging and subsistence farmers who will never be commercially active unless we address the following challenges, lack of access to finance, shortage of skills owing to lack of training and exposure, lack of access to markets and lack of implements (mechanisation). This project will go a long way addressing these challenges.

We are gathered here this morning to launch this multimillion rands centre of excellence for emerging and subsistence black farmers as an empowerment project between white commercial farmers represented by South African Cattle Exchange (SACE) and black emerging farmers represented by the National African Farmers’ Union, Women in Agriculture and Rural Development, including Youth in Agriculture and Rural Development, as well as local emerging/subsistence farmers.

The objectives of the centre which are in line with the aims of AgriBEE Charter are inter alia to:
* create partnerships between previously advantaged white farmers and previously disadvantaged emerging farmers
* identify emerging black farmers including women and youth who have the potential to become commercial farmers
* put the identified farmers through a comprehensive training programme conducted by the centre
* source land and funding for the graduates to start their own enterprises
* ensure that graduates get 24 hour mentoring at the Centre
* link up new graduates with markets, i.e. Tiger brands, Enterprise.

The centre will train identified previously disadvantaged emerging black farmers, including youth and women, land reform beneficiaries, existing struggling dairies and piggeries and grain producers in the farming sector.
The centre would kick-start training in dairy, piggery and vegetable farming. The Ilima Agri-services, a 100% black owned management company consisting of National Farmers Union (NAFU), Women in Agriculture and Rural Development WARD and Youth in Agriculture and Rural Development (YARD) will be responsible for identification of potential farmers, implementation and technical monitoring of operations of the empowerment group in all nine provinces of our country.

When talking about an enabling environment for the dairy sector, I want to say that the National Recording and Improvement Schemes that are managed by our Agricultural Research Council (ARC) form the backbone to ensure the efficiency and economic sustainability of livestock production. The Dairy Recording and Improvement Scheme is one on the National schemes declared under the Animal Improvement Act, 1998 (Act 62 of 1998). It enables dairy farmers to record the genetic economically important traits of their animals. This information feed into the Integrated Registration and Genetic information System (INTER-GIS), South Africa's national farm animals recording database. Through INTER-GIS, raw data is processed and it also generates a range of reports that enable dairy farmers to select and identify the productivity of individual animals and farming enterprises.

The National Dairy Recording and Improvement Scheme also provide a scientific and technical assistance to participants to assist in making the right decisions. The department has extended this service on the dairy scheme by funding the milk record project focused on emerging dairy farmers with the assistance of well trained technicians.

It is the intention of the National Department of Agriculture to ensure that the latest technology is used here at the Centre in order to achieve even higher levels of productivity. This would include proper recording of individual performance of dairy cows, the setting of proper goals, application of reproduction techniques and continuous benchmarking. With this in mind, the Government undertakes to financially support Agricama to fully participate in the National Milk Recording and Improvement Scheme for the first year of its new partnership. This support includes all the normal fees associated with the Scheme, including fees for analyses of milk samples at one of the accredited laboratories.

The Agriculture Research Council (ARC) will also assist in the training of staff, overseeing all technical aspects and in the interpretation of reports. To enable Agricama to use the best genetic material available, the Department also undertakes to financially support the use of artificial insemination (AI) as the only means of mating females in the herd. Likewise, the proviso is that Agricama will continue with this practice after the initial one year contribution of Government is withdrawn.

Programme Director, encouragement and support will be provided to ensure that this black shareholding flow through to the entire value chain. This is evident from the proposed partnership arrangement the white established partners are committed to have an interest to make this empowerment venture sustainable through initiatives of skills transfer and capacity building. Agri-processing projects of grain to produce feed, pork and milk are in the pipeline.

Honourable guests, this type of empowerment initiative, I launched here today is crucial as it involve multiple stakeholders and partners. The Departments of Agriculture and Land Affairs are fully in support of this type of an initiative as it is in line with the seven empowerment elements as outlined in the broad based economic empowerment (BBBEE) Codes of Good Practice and our AgriBEE Charter Gazette. I am also impressed to note that the proposed and accepted ownership model incorporates in itself a stake to women in agriculture and rural development, youth in agriculture and rural development, to Nafu and to Black entrepreneurs, aggregating a fully empowered enterprise with 60% ownership equity for black people, and 40% to white commercial farmers.

Sector stakeholders, let us note that the support interventions from industry partners are crucial for this venture to reach its full potential. Relevant institutions and agencies are invited and encouraged to get involved and contribute towards making this venture a huge success.

Ladies and gentlemen, empowerment is not an event – it is a process that must be well managed by all its participants. Milestones such as these give new impetus to the work that the AgriBEE Charter Council must perform, as outlined in its terms of reference.

Honourable stakeholders, partners and guests, in conclusion, I want to request for your unlimited support of and engagement in the number of empowerment ventures which are happening in our sector. Together, pooling all our resources and efforts we are potentially able to beat the economic crunch that the country is currently experiencing.

Programme director, there is an old adage which says, "You are not successful until you have a successor."

How encouraging to find pioneers in the dairy industry willing and enthusiastic to share their lifetime experiences which has come through thick and thin with the new blood in the sector. This only echoes one important message: * "the agricultural wealth is safeguarded in this generation and beyond".

The government is also deeply concerned about how this impacts on the rural poor, the unemployed, the elderly, woman and children. In this regard government has adopted a number of short, medium and long term strategies to address these challenges. These strategies include Ilima/Letsima campaign, expanding the school feeding scheme, as well as the distribution of starter packs for people to start household gardens in their own backyards.

With regard to the rural poor government is taking stock of the Polokwane resolutions, the recent Cabinet Lekgotla decisions, the ruling party’s January 2009 statement and its election manifesto that put land and rural development at the centre stage of government programmes. It is envisaged that land and rural development will be a vehicle for transforming the socio-economic lives of millions of our people who live in the rural areas.

In dealing with rural development, Cabinet has tasked the Department of Land Affairs to be a lead department that will champion the cause of rural development. In this regard a task team has already been set up that will convene a series of consultations with relevant stakeholders including Congress of Traditional Leaders of South Africa (Contralesa) and the South African Local Government Association (Salga). It is envisaged that these consultations will culminate with the hosting of an Indaba before June 2009.

We are also launching this project at a time when the world is hit by high food prices. Our farmers, milk producers, and grain producers are hard hit by input costs and are cutting to the bone to produce and stay in the sector. We shall be calling a symposium to discuss these concerns for the entire sector, starting from producers, possessors, retailers and consumers. With these few words I would like to thank you all and declare the Centre officially launched. I also invite you to tour the centre with me.

Thank you.

Issued by: Department of Agriculture
20 February 2009
Source: Department of Agriculture (http://www.nda.agric.za/)