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Titel presentatie[Naam, organisatienaam]

Working Day - Track: Food clustersCreating food clusters: lessons from governments worldwideLeona Archary, Rural Development & Land Reform, South Africa

Agripark

2TCI Global Conference

Leona Archary

10 November 2016agriparksinfo@drdlr.gov.za

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Collaboration with the following departments their agencies and the relevant provincial departments:The Department of Agriculture Forestry and Fisheries (DAFF) identification of production areas aligned to Agricultural Policy Action PlanThe Economic Development Department (EDD)Functional regions spatial targetingThe Department of Trade and Industry (DTI)Agro-processing support; - Special Economic Zone incentives alignment; - Critical Infrastructure ProgrammeThe Department of Science and Technology (DST)Innovation and technology centers in the AgrihubsThe Department of Small Business Development (DSBD)Small Business development supporting Agri-parksThe Department of Water and Sanitation (DWS)Access to Water; - Irrigation Schemes; - Bulk WaterThe Department of Environmental Affairs (DEA) support with environmental impact assessmentsThe Department of Cooperative Governance (DCoG) IGR support and project related support in provinces

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1. Country perspective on food security

NDP (National Development Plan) NGP (New Growth Path) MTSF (Medium-Term Strategic Framework) 145,000 new jobs in agro-processing by 2020;

300 000 new smallholders1 million new jobs in rural economy by 2030;

Reduction of rural unemployment from 49% to less than 40% by 2030

1 million additional jobs in the agricultural sector by 2030;

1 million hectares under production

Policy Alignment

National Planning Objectives8

2. Country response to triple challenges

9 Point Plan - Agri-parks Programme1.Resolving the energy challenge2. Revitalising Agriculture and the Agro-processing value chain (RAAVC)Agri-parks Programme3. Advancing beneficiation or adding value to the mineral wealth4. More effective implementation of a higher impact Industrial Action Policy Action Plan (IPAP)5. Encouraging private-sector investment6. Moderating workplace conflict.7. Unlocking the potential of SMMEs, cooperatives, townships and rural enterprises8. State reform and boosting the role of state-owned companies, information and communications technology infrastructure or broadband roll-out, water, sanitation and transport infrastructure9. Operation Phakisa, which is aimed at growing the ocean economy and other sectors10

Strategic objectives of Agri-parksEstablish Agri-parks in all of South Africas District Municipalities that will kick start the Rural Economic Transformation for these rural regions; Promote the skills of and support to small-holder farmers through the provision of capacity building, mentorship, farm infrastructure, extension services, production inputs and mechanization inputs;Enable producer ownership of the majority of Agri-Parks equity (70%), with the state and commercial interests holding minority shares (30%);Bring under-utilized land (especially in Communal Areas Land and land reform farms) into full production over the next three years, and expand irrigated agriculture; and11

Agri-parks must be farmer controlled.Agri-parks must be the catalyst around which rural industrialization will takes place.Agri-parks must be supported by government (10 years) to ensure economic sustainability.Strengthen partnership between government and private sector stakeholders to ensure increased access to services (water, energy, transport) and production on the one hand, while developing existing and create new markets to strengthen and expand value-chains in-line with APAP.

Guiding Principles for establishing Agri-parks12Maximise benefit to existing state land with agricultural potential in the provinces, where possible. Maximise access to markets to all farmers, with a bias to emerging farmers and rural communities. Maximise the use of high value agricultural land (high production capability).Maximise use of existing agro-processing, bulk and logistics infrastructure, including having availability of water, energy and roads.Support growing-towns and revitalisation of rural towns, in terms of high economic growth, high population growth over past 10 years and promote rural urban linkages

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An Agri-park is a networked innovation system of agro-production, processing, logistics, marketing, training and extension services, located in a District Municipality. As a network it enables a market-driven combination and integration of various agricultural activities and rural transformation services. The Agri-park comprises three distinct but interrelated basic components:

The Farmer Production Support Unit (FPSU) -a rural small-holder farmer outreach and capacity building unit that links farmers with markets. The FPSU does primary collection, some storage, provides some processing for the local market, and extension services including mechanisation.The Agri-hub (AH) - a production, equipment hire, processing, packaging, logistics, innovation and training unit.The Rural Urban Market Centre (RUMC). The RUMC has three main purposes; Linking and contracting rural, urban and international markets through contracts. Acting as a holding-facility, releasing produce to urban markets based on seasonal trends. Provides market intelligence and information feedback, to the AH and FPSU, using latest Information and communication technologies.Definition of an Agri-park in South Africa13

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Agri-park Components indicating the Value Chain linkages

Static representation of the Agri-park Model15

Identifying the Agrihub sites per District.16

Process followed17

Land Capability and commodities1

44DMS & 27 Priority Districts+2

EDD Functional Regions(growing + declining areas) +3

APAP Commodity analysis per Local Municipality4

Proposed Agri-park sites per District5

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AGRI-PARK NETWORK

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Investment Areas1. Nkangala Agripark2. Chris Hani Agripark (Priority 2)3. John Taolo Gaetsewe Agripark4. Ugu Agripark5. West Rand Agripark6. Ngaka Modiri Molema (Priority 1 )7. Xhariep Agripark8. Cape Winelands9. Sekhukhune Agripark

Priority Areas

Agri-parks Implementation StrategyDraft Agri-parks PolicyStatus Quo AnalysisSite SelectionProduction SupportManagement & funding StructuresDistrict wide Business PlansSocio Economic Infrastructure PlansProto-typical Agri-park Model developedSocio-economic analysisDistrict Municipality sign-offProduction PlansDistrict final sign-offInfrastructure AssessmentsMonitoring, Evaluation and LearningScale model constructed

Commodity value-chain analysis

Provincial concurrence

Market Linkage Development

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Social Services Assessments

Agri-parks Video(6 langauges)

Site analysis against agricultural opportunity

Agri-parks Management Structure developed

.Cost-estimation

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Spatial Analysis of functional regions

Financing facility Developed

Draft designs for AH and FPSU

Community and Stakeholder Mobilization

Site clearance (legislative requirements)Detail design

Tender Documentation

Construction

Multi sector budget alignment

Review and strengthen business plans annually

Draft Business Plans completed

Governance StructuresNational, Provincial and District Agri-park Operational Task Teams establishedNational Agripark Advisory Council and District Agri-parks Management Committee established

Commodity value-chain analysisProjects already started in support of fully fledged AHs and FPSUs.ConstructionPhased Agri-park implementationOngoing

WIPWIPWIPWIPNot completeCompleteWork in progressLegendWIPWIPWIPWIPWIP22WIPWIPWIPWIPWIP

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Interactive Agri-parks information tool

Existing Levers used for Agri-Park DevelopmentRiver Valley Catalytic ProgrammeRevitilisation of irrigation schemesSocio-economic development of communities in river basin areas

Animal and Veld Management ProgrammeOn farm infrastructureSoil rehabilitation and re-greeningAnimal health

CASPOn farm infrastructureSkills development andProduction supportIlema LetsemaProduction supportRecapitalisation and developmentOn farm infrastructure for land reform farmsOperational support (mentors/strategic partners)Technology Research and Development

Institutional arrangements and social organisationThe design, development and operationalization of the Agri-parks will be driven by key private sector actors including, commodity groups, small holder farmers, cooperatives, organized agriculture, agricultural businesses and existing markets. Inputs and support from private sector stakeholders will prove essential for strengthening and enhancing the Agripark specific commodity value-chains. The multi-stakeholder approach will ensure that the needs and interests of the many actors involved, including, producers, consumers, Government and investors are addressed.Inclusive participation will bolster the performance of Agri-parks. In line with this we introduced the National Agri-park advisory Council and the District Agri-park Management Council.

Women in agriculture and rural development (WARD)Military veteransYouth in agriculture in agriculture and rural development (YARD)Landless peoples movementsFarm dwellers and labour tenantsAgricultural graduatesTraditional council representativesCommon Property InstitutionsPeople with disabilitiesFarmers (one commercial, one small-holder)Khoi and SanRural Women OrganisationsSanacoArts and Crafts Cooperatives

26Composition of the DAMCsTOTAL MEMBERSHIP 28 The Council will comprise of following 2 representatives from the following sectors or organizations:

3. Progress over the last 20 months

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Nchora silos

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4. Key challenges

Key challengesEnsuring that the Agri-parks narrative become the common narrative. Improved mobilisation and communication particularly at farmer level are essential. This also links to mindset change of communities to to see agriculture as a business and not a social programme.Once the development responsibility moves from a national to provincial and local government level, it is difficult to ensure that the objectives and principles envisaged are upheld.Varying levels of skills; education and understanding impact the implementation;Ability to structure the 70/30 ownership model in a way that still attracts the private sector;The current levels of under-development and unemployment are placing the programme under pressure to deliver, beyond the initial timeframes and resources managing political expectations.

Key activities for the next 6 monthsStrengthen Community; farmer and stakeholder mobilisation including private sector;Awareness campaignsHousehold profiling/ farmer profilingFarmer registration/ needs Ownership and investment model for the Agri-Parks finalised, including incentives for private sector investment.Development of an info-mation platform for farmers.Encourage innovation; climate smart agriculture; new technology (working with innovation teams at Science and Technology; Agricultural Research Council; etc)Development of a Monitoring and Evaluation Framework (World Bank funded Partnership)Improved funding models: Pilots to be implemented (private/public sector models inclusive of commercial banks)

Thank you

BUSHBUCKRIDGE PACK HOUSE

MAPELA FARMER SUPPORT UNIT (LP)

KZN IRRIGATION SCHEMES PRODUCTION SUPPORT

Tugela Ferry irrigation schemesNDUMO B scheme from initial ploughing to harvestFarmers at Nsuze

RENOVATED infrastructure AT springbokpan MAIZE HUBProcessing

Infrastructure support at Agrihub

Number of projects# of Jobs

Infrastructure projects25306

Grand Totals

Number of projects# of Jobs

FPSU88813515

Agrihub25306

TOTALS91313821

DRDLR 2016/17 PROJECT SUPPORT TO PRODUCTION, FPSU AND AGRIHUB INFRASTRUCTURE Production - FPSU

On-farm production

Number of projects# of hectares targetedEstimated # of farmers supportedEstimated # of jobs

AVMP projects3174952027621459

RVCP projects381852354611291

Enterprise projects2414848990382515

Recap projects251274656148057734

SUB TOTAL 8473911883206612999

Infrastructure Support through FPSU

Infrastructure projects41516

TOTALS

TOTALS8883911883206613515