National Council of Provinces Budget Vote Speech delivered by the Honourable Ms Tina Joemat-Pettersson, Minister: Agriculture, Forestry and Fisheries

Date: 07 July 2009

Embargo: 14:00

Chairperson of the National Council of Provinces, Honourable Mninwa Mahlangu

Members of NCOP

Deputy Minister for Agriculture, Forestry and Fisheries, Dr Pieter Mulder (in absentia who is away on official engagement)

Members of Executive Councils responsible for Agriculture in the provinces

The Director-General of the Department of Agriculture, Forestry and Fisheries

HoDs from the provinces

Chief Executive Officers of the state-owned enterprises

Distinguished guests

Ladies and gentlemen

The 13th Ordinary Session of the Assembly of Heads of States and Government of the African Union (AU) convened under the theme “Investing in Agriculture for Economic Growth and Food Security” in Sirte, Libya, where the President of our country said let us make agriculture a viable investment option that will open more opportunities for enhanced investment and growth of African Agriculture .

The Summit unfolded in the backdrop of a global financial crisis, high food prices, and climate change which threatens the economic and political gains that Africa has achieved over the past decade.

It further reviewed progress and reflection on the commitment to increase the agricultural budgets to meet the Millennium Development Goals with an objective to address hunger, malnutrition and poverty.

Currently, South Africa is the chair of SADC and also the Cluster chair on Agriculture and Food Security. We are under the microscope to lead the processes by example.

Chairperson, when the new administration took over after the April elections, our President, Mr Jacob Zuma, pronounced that working together we can do more .

In recognizing the critical importance of sustainable rural economies, vibrant agricultural activity will be the cornerstone of rural development. To realise this goal, the mandate of the department has expanded to include, Forestry and Fisheries. This approach is shared throughout Africa where agriculture has been declared a prime sector to turn-around the economic fortunes of the poor.

Chairperson, the Department of Agriculture, Forestry and Fisheries (DAFF) will be the catalyst for converting rural assets into economic assets. It will become a cornerstone of building sustainable livelihoods, creating jobs and producing affordable food. We will turn-around production and reclaim our position as a net exporter of food.

Honourable members, following on last month's Budget Vote in the National Assembly, I am tabling the budget of R2.7 billion which will be reprioritised according to the new mandate of the department allowing us to fulfil our function as a catalyst for rural development.

The implementation of Forest Sector Transformation and Growth Charter Support will provide extension support services to forestry entrepreneurs with specific focus on rural areas where we will ensure the provision of fibre and renewable energy supply and develop a Fuel Wood Strategy to ensure sustainable supply of wood.

The department will also promote forestry manufacturing activities such as sawmilling, charcoal production and pole treatment plants. In addition, we will also implement community-based fire management pilot projects.

Chairperson, to further improve the accessibility of funding support to emerging farmers, we will coordinate all the funding grants for agriculture, forestry and fisheries by creating a shared funding facility. Added to that, will be other funds coordinated through this facility from other government departments and external funders.

The equitable share of budget allocation to provinces is R6.4 billion and in the national Vote 23 of Agriculture, a budget of R876.8 million is allocated to the provinces through Division of Revenue Act (DORA) for Comprehensive Agricultural Support Programme (CASP), Ilima/Letsema, LandCare and Disaster support.

In this financial year the CASP funds, will be allocated to the provinces as follows; EC: R125.3 million, FS : R72.1 million, GP: R36,3 million, KZN: R125,2 million, LP: R113,4 million, MP: R75,8 million, NC: R56,7 million, NW: R96,5 million, WC: R63,6 million. In the last financial year spending of the allocated CASP funds stood at 91%.

An amount of R2,5 billion for CASP is budgeted over the MTEF period 2008/9 to 2010/11.

We will be implementing 115 projects in all the nine provinces, committing R51,4 million to create over 25 000 jobs. The overall coverage of this initiative will benefit over 400 000 beneficiaries.

Honourable members, the processes to identify and verify the struggling Land and Agrarian reform projects is currently underway. This will be identified per province per annum and located within an MTEF funding option. The first batch of projects will be funded within the existing funding mechanisms, while the remainder will be covered within an MTEF cycle. The turnaround strategy includes public private partnerships with the industry. These partnership arrangements will benefit both parties in sharing the existing markets, experience, and support.

Subsistence farmers will be supported through targeted programs to achieve household food security, amongst the beneficiary groups will be indigent households. The program will support communities through vegetable gardens, limited large livestock, small stock, water harvesting technology, small tractors, etc. The package will be tailor-made to the environment to assure maximum success. Implementation partnerships with prisons, schools, clinics, self-help groups will be encouraged as a vehicle to ensure broader outreach.

Smallholder farmers, especially those who are beneficiaries of land reform will receive specific post settlement support to ensure that the government investment made is converted into productive outputs. These farmers will be placed in a structured program which would ensure that all the necessary support systems to develop them into commercial farmers are availed. Key to this approach will be the utilisation of partnerships, and different forms of arrangements which the department will develop together with its stakeholders to ensure coexistence, symbiotic relationships and positive economic outcomes.

Kommersiële boere of produsente is baie belangrik in die bereiking van ‘n breër regeringstrategie in die nasionale voedsel sekuriteit en groei in landbou, bosbou en visserye. ‘n Enkele strategie met verskillende pilare sal ontwikkel word as antwoord op verskeie uitdagings wat hierdie sektore in die gesig staar. Hoogste op die lys is water kwaliteit, kompeterende markte, landbou logistiek, ens.

We have thus far assessed the impact of logistics on moving agricultural freight across the economy, and DAFF will work closely with the departments of Public Enterprises and Transport as well as Transnet Freight Rail to move agricultural cargo from road to rail.

Ons landbousektor is werksaam in ‘n globale verwronge handelsarena waar SA se landbouprodukte soms in kompetisie is met gesubsidieerde invoere. Ons is deeglik bewus van die belange en het pro-aktief ‘n raamwerk ontwikkel oor hoe tariewe aangewend behoort te word rakende landbouprodukte as ‘n maatstaf op uitbreiding van plaaslike produksie, en terselfdertyd is gesubsidieerde invoere ook aangespreek. ‘n Senior amptenaar van die Departement van Landbou, Bosbou en Visserye is aangestel as die Kommissaris by die Internasionale Handel en Administrasie Kommissie.

Since 2001/2002, the department has always been concerned about high food prices and their impact on food security. In response to that, the department established the Food Price Monitoring Unit within the National Agricultural Marketing Council to track food prices across the country. The work of the food price monitoring unit has now been escalated by the Competition Commission's investigations on anti-competitive practices in the different food chains. We will continue to work closely with the commission to ensure that food pricing is fair and just.

Honourable members, our water resources are gradually getting contaminated to the detriment of irrigated agriculture in some parts of the country. We are working closely with the Department of Water and Environmental Affairs; industries and research bodies such as the CSIR, ARC and other stakeholders to get a sustainable solution to this challenge.

Ek sal voortgaan om in verbinding te bly en met die geaffekteerde partye saam te werk aan volhoubare oplossings en sodoende die sektor te bevorder na ‘n hoër vlak van groei en ontwikkeling.

Chairperson, in partnership with the Department of Rural Development and Land Reform, we will lead the delivery in the Agrarian Transformation together with the provincial departments of agriculture and the local municipalities. Our involvement will include particularly infrastructure development, rehabilitation of irrigation schemes such as the Taung/Vaalharts, the Mokolo River augmentation, as well as the Makhathini irrigation schemes, facilitation of agro-logistics and access to markets.

Already, processes are in place to support the Rural Development and Land Reform lead pilot projects in the villages of Muyexe, Greater Giyani (Limpopo) and Riemvasmaak ( Northern Cape ). Furthermore, the department will continue working together with sector partners to roll out production massification strategies for grain, livestock, fruit, forestry, fishery and cotton.

Government will bring agricultural support through enhanced extension services, training and research to strengthen participation towards a vibrant sector. To this end, we have committed R170,7 million to the provinces for among others, supply of the Farmer's green book (an extension service monitoring tool) to ensure that previous complaints about extension officers are addressed. Extension officers should do what they have been employed to do. Farmers will sign a service confirmation note to ensure that they have received extension services to the standard that addresses their problems.

Forestry will also make a significant contribution to the Comprehensive Rural Development Programme (CRDP) through the successful growing of the forest products industry. This effort will continue focusing on encouraging self-help groups and cooperatives, streamlining the regulatory environment, skills development as well as implementation of rural incentives for new producers.

The first wheel of the national youth service is turned by our efforts to expose young people to hands-on experience in the field of agriculture, forestry and fisheries. The programs that are running with full throttle include the departmental bursary scheme, internship, mentorship and incubator programmes. The department has budgeted R22 million for this initiative.

Chairperson , South Africa has approximately 6 million households who spend more than 60% of their income on food alone but do not have enough to eat. As part of the response we are bringing in interventions will expand the coverage of the Integrated Food Security and Nutrition Programme (IFSNP) from 70 000 to 300 000 beneficiaries. The program will deliver through the provision of starter packs for the production of vegetables, livestock, milk and poultry. These initiatives were tested in line with the implementation of the Regional Indicative Strategic Development Plan and the Dar-es-Salaam Declaration Plan of Action on Agriculture and Food Security.

Chairperson, we should not overlook the contribution of women in food security and their role in securing livelihoods particularly in the rural areas. Forty one percent of South African women live in rural communities with the balance of the population in these areas made up of children, the infirmed and old people. The women have kept these poor marginalised communities afloat.

We have been running a Female Farmer of the Year campaign for nearly a decade and will be celebrating a centenary of recognition of women entrepreneurs in the sector. As it rotates per province, this time around the host to this competition is the Free State and the event will take place in Bloemfontein on 29 August. We are grateful for our partners, TOTAL SA and Pick ‘n Pay for the recognition they bestow on the Female Farmers.

However, Honourable members this programme is not enough to address the needs of the most vulnerable groups of our society. Targeted funding and programs will be developed for women, youth and the disabled to ensure that they enter the mainstream of the agriculture business sector.

Honourable members, through the LandCare Programme the department is promoting sustainable land management practices, reversing land degradation in rural areas and contributing towards job creation and poverty alleviation. This initiative links our efforts to E xpanded Public Works Programme (EPWP) which in the past financial year created for more than 6 000 seasonal jobs in the provinces.

In this programme, we have allocated R51 million to further contribute to sustainable use of the agricultural resource base, optimise productivity, create jobs and provide a livelihood to our people. Through the Extended LandCare pilot project Green Lungs we will plant trees and food gardens in natural and open spaces, in urban and peri-urban areas. This pilot project, will curb soil erosion, produce food, increase potential for livelihood as well as create about 40 000 jobs.

Working together, we can do more!

Working together with provinces, we shall continue striving to care for our natural resources. We will focus on energy conservation; explore the use of alternative technologies to include alternative traction systems, rainwater harvesting and a more refined on-farm assessment of fertiliser and water use and requirements.

Honourable members, we will be convening in Polokwane again! This time we will host the 4 th Biennial National LandCare Conference and the African Regional LandCare Committee meeting under the theme “Together, Caring for Our Land Caring for Our Future” from 12 to 16 July 2009.

Chairperson, we have to protect our marine stock and working together through intensive engagements with the stakeholders, explore other means of creating sustainable communities and diversifying activities to include agro-tourism, production of alternative crops such as bamboo and agro-processing.

South Africa has a well established fishery sector and is currently net exporter of fish and marine products. However, most South African fisheries are considered to be fully utilized and high value fisheries such as abalone, prawns and linefish are largely over-exploited. Projected increase in demand for high-end fishery products provides an opportunity for substantial increases in aquaculture production (both freshwater and marine).

In the last two years, direct employment on aquaculture farms was 1 817 (3 600 if consider services sector - i.e. feeds, processing, security, transport, packaging, manufacturing of equipment, research, government services). If production grows to projected level of 90 000 tons per annum, industry will have employment potential of over 44 000 people.

We will develop and finalize the national aquaculture strategy which will focus on the implementation of the following programs: Promotion of aquaculture for rural development and food security; Creation of special aquaculture development zones; Revitalization of State Hatcheries; Fish health and environmental protection; Ranching and stock enhancement; Research and technology development (development and adaptation of new technologies and development of new aquaculture species); and Human resource development.

Chairperson, t his country cannot ignore the global drive towards green fuels. In 2007, Cabinet approved the Industrial Strategy for Biofuels and we now will be commencing with the implementation.

The MINMEC meeting of last month collectively agreed to rolling-out a nationwide fencing project for cropping and livestock as an umbrella project for all nine provinces. We appeal to everyone to ensure that this infrastructure is safeguarded. In that way, we will gradually begin to translate the local agricultural economy positively.

In collaboration with the Agricultural Business Chamber, last month, we hosted an annual European Marketing Research Centre Forum meeting, in the Western Cape . The Forum focused on the creation of partnerships throughout the entire value-chain.

These partnerships will strengthen the entire agricultural industry resulting in increased investments in the sector. Our role, is to provide support systems to ensure of enhanced production and productivity, to create more favourable policies which will create an enabling environment that allows greater competitiveness which in the end will benefit our people.

Honourable members, we are committed to ensuring and maintaining our national bio-safety and security and effective disaster risk management.

Chairperson, for the next five years, we have prioritised our programmes to deliver on:

•  Speeding up growth and transforming the economy to create decent jobs and sustainable livelihoods,

•  Rolling out massive programmes to build the social and economic infrastructure,

•  Implementation the Comprehensive Rural Development Programme,

•  Strengthening the investment in skills and the human resource base,

•  Improving international cooperation - “creation of a better Africa and a better world”, and

•  Implementing sustainable natural resources management and use.

In conclusion, together with the Deputy Minister of Agriculture, Forestry and Fisheries, MECs responsible for agriculture portfolios, the Directors-General and the entire staff component of the Department of Agriculture, Forestry and Fisheries, we will work as a catalyst to ensure rural economic development.

We are looking forward to working with the chairpersons and members of the NCOP as well as all stakeholders in the agriculture, forestry and fisheries sectors.

I would like to thank the Directors-general and their staff members, provincial departments of agriculture and state-owned entities in the sector for their cooperation and support to ensure that programs that are to be delivered will be successful.

I thank you