Department of Agriculture

Speech by Ms Angela Thokozile Didiza, MP on the Budget Vote of Agriculture, Land Reform and Rural Development (Vote 29), 12 May 2022,
Honourable Chairperson
Honourable Members
Deputy Ministers Skwatsha and Capa
Ministers and Deputy Ministers
Chairperson and Members of the Portfolio Committee
Members of our Statutory Boards and Councils
Leadership of Farmers Organisations and CEOs of Commodity
organisations
Farmers and Farm Workers
Senior Officials
Ladies and Gentlemen
THE MACROECONOMIC ENVIRONMENT
The new normal ushered by COVID-19 has meant that we execute strategies
on agricultural production and food security differently. Agriculture has
shown buoyancy over the past two years, growing by 13.4% year-on-year in
2020 and 8.3% in 2021. The employment figures in the sector were at
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868 000 in the fourth quarter of 2021, reflecting stability over the past few
years. Most agricultural subsectors in South Africa are emerging from one of
the best years for the agricultural sector—the 2020/21 season. Grains,
oilseeds and some fruit such as citrus saw bumper harvests, which boosted
export earnings and improved farm income.
However, the economic growth experienced and the relative stability in
employment are in danger of being eroded due to a number of factors,
including the geo-political issues affecting agricultural trade. The current
Russia-Ukraine conflict has the potential to scupper our growth, as there are
real concerns about its potential impact on escalating food insecurity, since
the two countries are major exporters of grains, oilseeds, fertilisers, and
crude oil products to international markets.
I have established a sector Task Team, led by the National Agricultural
Marketing Council team that is constantly scanning the environment and
providing periodic reports on this unfolding situation and the impact on the
sector in particular the escalation of food prices, animal feed and fertilisers.
Honorable Chairperson, honourable members, the intention of our land and
agrarian reform has always been about redressing the inequity in terms of
land ownership because of colonial and apartheid policies. We must ensure
tenure security for all, empower citizens to participate in the agricultural
economy and ensure integrated rural development. Our interventions in
policy, legislation and programmatic intervention must bring us closer in
building an inclusive society, without leaving anyone behind.
The challenges of poverty, unemployment and underdevelopment must
challenge us to continuously find solutions that can respond to these
challenges. Racial discrimination also had a gender dimension, it is for this
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reason that women empowerment in both land and agrarian sectors should
be integral.
The participation of the majority of women in the agricultural sector has
always been limited to subsistence farming and working in the commercial
farms, largely because land access has always been a constraint.
Government’s intervention in order to correct the situation has been multi
fold. Firstly, it has been about profiling women farmers who are producing
for the market through Female Farmer of the year. Secondly, it was about
allocating women with farms through the Pro-Active Land Acquisition
Strategy (PLAS). Thirdly through department’s procurement.
I wish to table the 2022/23 budget. Let me indicate from the outset that the
Budget for the Agriculture, Land Reform and Rural Department is R17.3
billion. A sizeable portion of this budget is for transfers to Provincial
Departments of Agriculture, as part of the division of revenue as well as
transfers to Agricultural Entities.
These allocations relate toa) Ilima /Letsema Conditional Grant - R610 million;
b) CASP (Comprehensive agricultural support program) –R1,2 billion;
c) CASP Extension Services – R304 million;
d) Commission on Restitution of Land Rights R3,7 billion;
e) Agricultural Research Council – R1,2 billion;
f) National Marketing Council – R48,5 million; and
g) Ingonyama Trust Board – R24,4 million.
I wish to thank the Portfolio Committee for their work in engaging us on our
Annual Performance Plans for the year 2022/23, which outlines how we will
utilise the allocated budget.
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Today we are joining the world in celebrating the inaugural International Plant
Health Day - raising global awareness on how protecting plant health can
help end hunger, reduce poverty, protect biodiversity and the environment,
and boost economic development. These objectives are critical for us to
achieve the UN Sustainable Development Goals. These development goals
compel us to have development that is sustainable and inclusive, without
leaving anyone behind.
Chairperson, today also marks a historic moment in South Africa’s
Agricultural Sector. Earlier today, we signed the Agriculture Agro-processing
Masterplan together with social partners. This Plan is a product of
negotiations between government, business, labour and civil society
organisations in the agriculture and agro-processing sectors.
The journey we have undertaken since June 2020, built on the work done
since 2001 when we first developed the Strategic Plan for South Africa’s
Agricultural Sector, the Sector plan, Operation Phakisa and the National
Development Plan. All of these processes remain important milestones that
aimed at the transforming the sector, giving us a vision to which we must
focus. This Masterplan is lifting our gaze to imagine the agricultural sector
we want in South Africa. We want a prosperous and inclusive agricultural
sector that thrives on better utilisation of its natural and human resources.
Allow me to commend Professor Mzukisi Qobo, who has diligently facilitated
this compact supported by the National Marketing Council and the Research
Team form BEFAP, and CCRED. My appreciation goes to leaders and
representatives of farmers, agri-business, labour and government, who have
tirelessly worked to ensure that we have a vision and plan that will help us
attain a transformed and inclusive sector.
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The process of developing the Masterplan has emphasised the multifaceted
nature of agriculture in society. The representatives were diverse reflective
of the sub-sectors of the industry. Such representation also highlighted the
upstream and downstream linkages that are embedded in agriculture.
The Masterplan development process has once again affirmed the
importance of Social-compacting, as pronounced by President Ramaphosa
during his State of the Nation address. It requires commitment, patience and
determination from all those who are involved. It may take long; however, the
fruits derived from such a process are always rewarding.
In 2016, we commenced a process of negotiating an e-certification with the
Netherlands, in order to ease the burden of inspection in support of trade.
Working together with Industry, we have finally launched the e-certification
on Monday, 9 May 2022. This digital tool has come at an opportune time,
given the Covid-19 pandemic, where inspection across borders has become
even more difficult. South Africa is now one of the few countries that will now
use e-certification for trade.
The feature of transformation of agriculture in South Africa remains the
change in landownership patterns, the growth of Black commercial farming
and the accumulation of wealth, to improve the quality of livelihoods of
people directly and indirectly impacted by agricultural initiatives. One of the
important elements for transformation and inclusive growth will be the use of
Public Private Partnerships (PPPs).
Our partnership with Numolux Group, on the Ceres Abattoir, through its
subsidiary Numolux Agriculture, has seen us improving its production
capacity to 60 tons per month for the local market. The success of this project
gives us lessons on how we can revitalise some of government defunct
projects.
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Initiatives such as Partners in Agri-land Solutions (PALS), where there is a
partnership between emerging and commercial farmers, are showing fruits
in addressing binding constraints.
The development of the Mkhuze-siding, in support of small-scale sugarcane
farmers of Makhathini Flats is a result of partnership between government,
farmers, Transnet, KZN Economic Development Department, Tongaat Hullet
and Santrans.
Honourable Members, I am raising these stories as an affirmation of the
importance of partnership in resolving our country’s challenges.
CLIMATE CHANGE AND BIOSECURITY
Today, it is a day to celebrate. Our very own Veterinarian Dr Gideon
Bruckner, a committed civil servant who served his country and continues to
do so. The World Organisation for Animal Health (OIE) will be honouring Dr
Bruckner with an award of the Gold Medal. This award is in recognition of
his excellent contribution to the international veterinary scientific community.
As we celebrate our excellence in veterinary services, we acknowledge the
challenges that remain in our country’s animal health system. Despite our
efforts in containing Foot-and-Mouth Disease in Limpopo, it has shown the
weakness in our governance system within the concurrence framework and
the line of command. The strengthening of our vaccine production capacity
is more urgent now than ever before. The Onderstepoort Biological Products
Company requires deliberate support, to ensure the completion of its GMP
facility. It is important to ensure that information on availability and nonavailability of vaccine is given timeously to producers.
Chairperson, the intensity and frequency of extreme weather and climate
events on the globe, and particularly in Africa, are expected to increase. We
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therefore need to continue to strengthen the multi-hazards early warning
system for our country, to preserve our development gains and minimise
losses in agriculture, livelihoods, property and human life. We also need to
accelerate the implementation of disaster risk reduction measures, response
and post-disaster recovery mechanisms to protect our sector. The recent
floods experienced in KwaZulu-Natal and Eastern Cape serve as prime
examples for the implementation of disaster risk reduction measures.
There is an intrinsic link between climate change and the spread of pests
and diseases. Over the past few years, we have been experiencing
introduction, establishment and spread of pests and diseases into new
areas. Some of the outbreaks are due to deliberate human interventions. The
current outbreaks of Foot-and-Mouth in new areas such as Northwest,
Gauteng and Free State is being addressed. Depopulation of affected farms
in Gauteng and Free State has been completed. We are busy with
depopulation in North West. I wish to thank the livestock industry for working
with us in addressing this outbreak timeously.
The gravity of the challenges with FMD have created an avenue for me to
have consistent sessions with the livestock industry. I have also had positive
engagements with Premier Stan Mathabatha, MEC Nandi Ndalane and other
relevant MECs of Limpopo, to adequately resource our strategy to address
FMD control measures in Limpopo. I also had engagements with the
Limpopo Provincial House of Traditional Leaders to ensure that they become
part of the disease control and management mechanism. In KwaZulu-Natal,
MEC Bongi Sithole-Moloi and her team have begun with the vaccination in
the Disease Management Area.
In order to address the economic impact of Foot-and-Mouth Disease, the
department is currently engaging with trading partners where there have
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been bans on the export of products from cloven-hoofed animals. We have
contacted the authorities in China on the re-opening of exports of our wool
as we believe the current system utilised in the wool industry provides the
appropriate level of protection required for safe trade.
In recognising the importance of biosecurity to our country and the sanitary
and phytosanitary incursions we have experienced in the last few years, I
established a task team of experts to investigate challenges in our animal
health system and advise accordingly. The draft report has been discussed
with the Ministry and the final report will be released soon. I wish to thank Dr
Moephuli, Professor Kirsten, Dr Mogajane and Dr Bruckner for availing their
expertise to support government’s efforts in strengthening its animal health
system and thereby growing the livestock industry.
BROWN LOCUST OUTBREAK
As a country, we have experienced swams of brown locust in the provinces
of Northern Cape, Eastern Cape, Western Cape and Free State that we have
not seen in decades. This outbreak has had devastating impact on farmers
and local communities. These will affect negatively food security, as grazing
lands and crops are eroded. The government, working with industry, has
been controlling using aerial spraying and training of local communities.
Some of the difficulties relate to ever-changing wind directions that move
these locust to different directions as we have seen them now in the Buffalo
City metro. We wish to thank Kumba Iron Ore, Transnet and other private
sector companies that have collaborated with us in the fight against these
locusts.
INCREASED INVESTMENTS
Our programme of commercialisation of black farmers is taking shape and
some green shoots of this programme are showing in Land Development
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Support of farmers on farms acquired through Pro-Active Land Acquisition
Strategy (PLAS). I visited Georgina Farm in the Free State last month, where
Mr Dan Mosia farms sunflower on 600 ha. He narrated that in 2020, he
started with 300 ha with a yield of 1.33 tons per ha. He expanded his
operation to 600 ha in 2021 and increased his yield to 1.5 tons per ha. He
has created 40 jobs, with youth making 40% of his workforce.
We also recognise Mr Rudzani Sadiki of the 1 285 ha Thornveld farms in
Limpopo. He mainly farms with sunflower, supplemented by livestock
production. In 2021, he planted 774 ha of sunflower and he has increased
land under sunflower production to 974 ha in 2022. He has five permanent
employees and further employs 75 seasonal staff during peak periods.
These two examples show that commercialisation is possible but we have
also realised that we need to make all PLAS farms farmable.
HEMP PERMITS
Honourable members, last year in our budget debate we announced that we
would open up for the application of hemp permits by October 2021. To date,
31 permits have been issued. We continue to process the rest of the
applications. In order to ensure an inclusive value chain, we will be working
with ARC to set up demonstration farms in all nine provinces, to ensure
education of primary producers on the appropriation production
technologies.
AGRI-INDUSTRIAL FUND
Agricultural financing remains the critical element in ensuring that agriculture
remains the productive sector of the economy, which contributes to food
security, poverty alleviation and job creation.
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It is important that our financial institutions appreciate that agriculture needs
patient money like other land-based industries. Production finance needs to
take into consideration the variables that are inherent in the cycle of
production of relevant commodities as well as risks. Non-financial services
to producers are equally important in order to reduce the default rate from
farmers.
The resolution of the challenges in the Land and Agriculture Bank remain
important. We need to support the Board of Directors and Management in
the continuous negotiations with lenders and those who hold its debt.
BLENDEND FINANCE
To date, the department has transferred R400 million of the committed R1
billion grant to the Agri-Industrial Fund as per Memorandum of Agreement
(MOA) with the Industrial Development Cooperation (IDC). In our first year
the facility has funded nine projects to the value of R384 million. All of these
projects are black owned and operated and four of these are women owned.
This facilitated 229 new jobs. There are currently 31 transactions in the
pipeline requiring R2.2 billion, of which R623 million is grant funding. It is
envisaged that 1 371 new permanent jobs will be created through these
initiatives.
In support of the Poultry Masterplan, six black owned and operated farmers
have been supported. These farmers are producing one, 9 million birds a
month.
MARKET ACCESS
We have concluded the signing of citrus and pear protocols to increase
export of pears and citrus fruits to the China market. We are also currently
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negotiating trade protocols with South Korea, Saudi Arabia and the
Philippines.
BILATERAL AGREEMENTS
In the past year, we have signed technical cooperation agreements with
Ghana and Cote d’I voure. These agreements will also create conditions for
market access.
Chairperson, during this current year we will examine all bilateral
agreements we have entered into in order to assess the extent to which they
enhance our country’s national interest.
STRENGTHENING GOVERNANCE AND ADMINISTRATION
Chairperson, in 2021, as part of our efforts to strengthen governance,
administration and leadership, we appointed our Director-General in
December 2021 and we have since also been able to fill positions of four
Deputy Directors-General to head the following branches: Spatial Planning
and Land Use Management, Rural Development, Food Security and
Agrarian Reform and Provincial Operations. Capacitating the department in
all respects will ensure optimal efficiency in the execution of our mandate.
Within our State-Owned Entities we welcome the new Chief Executive
Officer of the ARC, Dr Litha Magingxa, and we wish him well in steering our
prime research institute. We are also in the process of engaging in appointing
the Ingonyama Trust Board.
I thank you.

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