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Value Proposition

VisionUnity in agriculture

MissionAgri SA promotes the development, profitability, stability and sustainability of agriculture in South Africa by means of its

involvement and input on national and international policy and the implementation thereof.

ORGANISATIONAL STRUCTURE

Who we represent

Agri Securitas Trust Fund

9 Provincial Affiliations

New Services

Agronomy• Cotton SA

• Dry Bean Producers’ Organisation• Forestry South Africa Medium Growers Group

• Grain SA• South Africa Cane Growers’ Association

• Tobacco Institute of Southern Africa

Animal Production• Milk Producers’ Organisation

• National Wool Growers Association of South Africa• Red Meat Producers’ Organisation

• South African Mohair Growers’ Association • South African Ostrich Business Chamber

• South African Pork Producers’ Organisation• Wildlife Ranching SA

Horticulture• Banana Growers’ Association of South Africa

• Canning Fruit Producers’ Association • Citrus Growers’ Association of Southern Africa

• Deciduous Fruit Producers’ Trust • Dried Fruit Technical Services

• South African Garlic Growers’ Association • South African Nursery Association

• South African Subtropical Fruit Growers’ Association• South African Table Grape Industry

• Tomato Producers’ Organisation Growers’• Vinpro

• Agri Eastern Cape• Agri Gauteng• Agri Limpopo

• Agri North West• Agri Northern Cape

• Agri West Cape• Free State Agriculture

• Kwanalu• Mpumalanga Agriculture

• 1000 farmer associations

Agri SA

OUR CORE BUSINESS

Responsible to broaden Agri SA’s role and involvement in the area of transformation with a specific focus on land reform, farmer development and broad based Black Economic Empowerment, championing the preservation and extension of private ownership rights.

Agricultural Development

Focus on policy areas that have an influence on the safety of the farming community and their property. Develop information guidelines and procedures to improve rural safety.

Rural Safety

To exercise a positive impact on the financial position of farmers through aspects impacting directly on the cost and income structure of farming enterprises.

Commercial

Deals with water affairs, mineral rights, climate change, genetically modified crops, scale-gas development and renewable energy.

Natural Resources

Key focus areas include the maintaining and promotion of network relationships, liaison activities with key stakeholders, internal and external communication and image building.

Communication

The key work areas include labour legislation, sectoral determination, occupational health and safety on farms, migration policy, social security for farm workers, employment equity and human resource development.

Labour and Social Matters

We partake in several research and development (R&D) initiatives across South Africa – and through our commodity members we support multidisciplinary initiatives across the whole value chain. We focus much of our efforts in combining science and human capacity development in priority areas.

Research and Development

We identify international market opportunities and advise on the appropriate market mix for various markets, investigate and advise on the local conditions, including legal environments taking into consideration various free trade agreements in amongst others SADC, COMESA and the East African Community, SACU and AGOA. Through our commodities we have several examples of developing global markets – e.g. China, USA and broader Europe to name a few.

Global Marketing

We strive to create a legal and policy environment conducive for job creation and economic growth. We work with government, and the private sector to develop skills, markets and production nodes across South Africa.

Employment Creation

Agri SA is a federation of agricultural organisations established in 1904 consisting of provincial and commodity organisations, representing a diverse grouping of individual farmers regardless of gender, colour or creed.

Governance

Management Committee

Congress

General Council

AGRI SA Value Proposition 1

24 Commodity Organisations

OUR CONTRIBUTION AND SUCCESSES AS A GROUPContribution of Commodity Organisations to Farmer Development and Transformation

R21 897 084 R77 094 R700 000 R735 000 R7 800 000 R25 135 528 R20 000 000 R285 000 R96 000 R7 914 351 R2 424 204

R18 177 682 R71 384 R700 000 R756 000 R7 806 642 R17 289 500 R12 000 000 R498 300 R92 000 R7 353 770 R2 702 344

R17 463 938 R66 096 R400 000 R757 000 R7 649 409 R15 045 400 R7 000 000 R499 620 R89 000 R7 554 024 R2 332 344

R16 612 594 R61 200 R400 000 R1 245 000 R7 735 684 R15 928 485 R5 000 000 R498 225 - R6 166 872 R2 358 845

R15 156 361 R56 000 R400 000 R1 648 000 R6 028 411 R18 545 410 - - - R7 069 324 -

Grain SA Karoo Meat Dried Fruit Cotton SAHortgro/

DFDCNWGA

Ostrich Chamber

RPO SubtropCitrus

GrowersMilk

Producers

R3 669 981 R500 000 - R875 000 R92 109 242

R2 868 351 - R8 500 R875 000 R71 199 473

R7 955 422 - - R875 000 R67 687 253

R2 134 059 - R9 000 R875 000 R59 024 964

R2 042 994 - R10 000 R2 000 R32 403 090

SA PorkFree State Agriculture

Hartes (NW)Witdraai

MedTotal

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

Affiliates’ annual expenditure on projects

Agricultural Development

• Developed a holistic framework for land reform and rural development• Established important principles with regards to the prevention of illegal land occupation• Developed information documents and guidelines on all land related laws• Negotiated essential amendments to bills, i.e. expropriation and the Valuer General

Rural Safety

• Assisted with the development and implementation of the official Rural Safety Strategy• Assisted the police with the development and implementation of the Reservist Police Strategy, aimed at regulating and

establishing the service and to make it accessible for participation by the farming community• Established a well-respected working relationship with the Joint Crime Prevention and Safety Cluster, at both national and

provincial level

Commercial

• Address issues pertaining to the cost of doing business, i.e. inputs on the reviews of administrated prices such as electricity and water

• Engage SARS on taxation issues such as capital gains and diesel refund dispensation• Negotiated a specific property rates dispensation for farming enterprises• Negotiated the disaster management dispensation for agriculture and facilitate support aimed at floods, droughts and

veld fires• Inputs into bilateral and multilateral trade negotiations, i.e. SACU, EU-FTA and AGOA

Research and Development

• Cape Wools SA (CWSA) spend annually between R1m and R2m on wool sheep production and R10,582 million in 2015/16 on technical-, training- and mentorship support

• Forestry SA budgeted in 2015 for R23,2 million expenditure on research and forest protection, supplemented by a grant research allocation of R33 million

• The Tobacco Institute of Southern Africa (TISA) R&D allocation amounts to approximately R2 million per annum• Canning Fruit Producers’ Association (CFPA) fund research relevant to farmers to the value of approximately R1,2 million

per year

Natural Resources

• Negotiated the capping of the annual water tariff dispensation far below the maximum increase of 50%• Appeal Court case decision in favour of Agri SA pertaining to the transfer of water use rights• Developed a guideline document for our constituency to empower landowners on their rights versus owners of mineral rights• Legislation i.e. Spatial Planning and Land Use Management Act (SPLUMA), environmental and mineral rights

Communication

• A well respected hub of information for the media, maintaining an average of 4 articles daily in printed media• Toyota SA/Agri SA Young Farmer competition to identify young role models to inspire new entrants to the sector• The Agri magazine, Agri SA’s bi-monthly publication with a circulation of 27 000, is self-funding and received the PICA Highly

Commended Award• Regular newsletters to affiliates and media

Labour and Social Matters

• Developed and implement the entrepreneurial development training programme (mostly wives of farm workers) as part of a rural social upliftment programme

• Developed the Agricultural Enterprise Management Training programme to equip new farmers entering the sector with business management skills

• The classification of sheep shearers as a scares and critical skill which allow workers from Lesotho to work in South Africa• The key work areas include labour legislation, sectoral determination, occupational health and safety on farms, migration

policy, social security for farm workers, employment equity and human resource development.

Global Marketing

• Involved in reviewing all trade agreements• Facilitate participation in trade forums and with dti• The Wool Industry spend annually approximately R5m on international wool promotion and R1m on local market development

Employment Creation

• New entrants to wool farming, increased by 2000 during the past two seasons• Cape Wools SA estimates that 25 000 potential jobs could be created• Forestry employs 67 000 people directly and 171 000 indirectly• Canning Fruit Producers’ Association (CFPA) estimates that the sub-sector employs approximately 10 500 farm workers and

13 500 factory workers

• Cape Wools SA farmer development in the emerging and communal sectors - R7.145 million (2015/16) • Forestry SA developed land reform models for sustainable transformation:

- engaging United Nations’ Industrial Development Organisation to establish mobile forestry training facilities

- with KZN department of agriculture and rural development engaged in developing a training academy

• The Tobacco Institute of Southern Africa (TISA) - about R2.5 million per annum• Canning Fruit Producers’ Association (CFPA) during 2015 spent an amount of R275 000 through mentorship, guidance and related programmes

EXAMPLES OF SOME PROJECTS

AGRI SA Value Proposition 2

STRUCTURAL CHARACTERISTICS OF THE AGRICULTURAL SECTOR

85 000

80 000

75 000

70 000

65 000

60 000

55 000

50 000

45 000

40 000

35 000

30 000

25 000

20 000

15 000

10 000

5 000

0

1990

1991

1992

1993

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Rm

illio

n

South Africa Agricultural Export and Imports1990 - 2014

Source: DAFF

Agricultural Exports Agricultural Imports Agricultural Trade Balance

±2.4%

±20%

• 12% surface area can be used for crop production of which only 22% is high potential• Labour in agriculture

- 869 000 farm workers- Accounts for between 4 - 5% of total employment- Supplementing household income and/or contribution towards food supply for more than 2,5 million

rural households• Earner of Foreign Exchange

- In terms of agricultural exports and imports the sector displays a positive trade balance.

Land-cover category Area (hectares - millions) Percentage (%)

Bare and degraded areas 5.45 4.47

Cultivated areas 12.76 10.46

Grasslands 24.30 19.92

Indigenous forests 0.52 0.43

Mines 0.20 0.17

Forest plantations 1.72 1.41

Scrublands and herblands 42.27 34.66

Urban areas 1.85 1.51

Waterbodies 0.68 0.55

Wetlands 0.87 0.72

Woodlands and bushlands 31.34 25.70

Total 121.96 100.00

Primary contribution to GDP

Contribution to GDP, if the entire value chain of agriculture is taken into account

Approximate number of commercial farming units in South Africa

million ha under irrigation

Million in net farm income at the end of 2014

Agri SArepresent27 000farmers

Database of members of affiliated organisations

Well-developed national, provincial and local structures

R75 188

17% 17%

8%Productionof maizein Africa

Productionof totalmeat inAfrica

Production ofwheat in

Africa

South Africa largest producer of sugar, milk and fresh fruit in Southern Africa

AGRI SA Value Proposition 3

AgriBEE Charter Council

AgriSETA

Department of Labour• Child Labour Action Programme Implementation

Committee (CLAPIC)

• Occupational Health and Safety Advisory Council (ACOHS)

• Towards Elimination of Child Labour (TECL)

Department in the Presidency

• Performance Monitoring and Evaluation – Work group on Rural Development (Outcome 7)

The Department of Agriculture, Forestry and Fisheries (DAFF)

• National Agriculture Disaster Risk Management Committee (NADRMCO)

• National Drought Task Team

• Task Team for the development of drought indicators

• Fire Working Group

• Steering committee on integrated agricultural development finance policy framework

• Working group on agricultural insurance

• Forum for Chief Executive Officers in Agriculture (CEO Forum)

• Agricultural Trade Forum (ATF)

• National Agricultural Research Forum (NARF)

• National Animal Health Forum

• National Agricultural Education and Training Forum

Deputy President’s Office

• Vulnerable Workers’ Forum

Private StructuresAfricaBio

Business Unity South Africa (BUSA)

• Board – Alternative Director

• Economic and Trade Policy

• Social Policy Committee

• Environmental Working Group

Eskom

• Agricultural Technical Working Group

Provident Fund for the Agricultural Sector

Agri-Sector Unity Forum (ASUF)

The South African Chamber of Commerce & Industry (SACCI)

• Copper Theft Working Group

National Stock Theft Forum

South African National Committee for Irrigation and Drainage (SANCID)

South African National Committee on Large Dams (SANCOLD)

Strategic Water Partners Network (SWPN)

International Structures

CAIRNS Group Farmer Leaders

South African branch of the International Chamber of Commerce & Industry

Southern African Confederation of Agricultural Unions (SACAU)

World Farmers’ Organisation (WFO)

OUR NETWORKS

PLAYERS IN THE AGRICULTURAL POLICY AND COMMERCIAL SPACE

Department of Rural Development and Land Reform

• Steering Committee for Land Use Suitability Assessment Criteria and Corridor Development

• Working group on the Strengthening of Relative Rights

• Working group on the Regulation of Landholdings

• Working group on Agri Parks

• Working group on District Land Reform Committees

Working Group on the Review of Agricultural Legislation

International Erosion Control Association South Africa (IECA-SA)

National Economic, Development and Labour Council (NEDLAC)

• Labour Market Chamber

• Trade and Industry Chamber

• Technical Sectoral Liaison Committee

National Priority Committee on Rural Safety (JOINTS)

Department of Co-operative Governance and Traditional Affairs (CoGTA)

• National Disaster Management Advisory Forum (NDMAF)

• Early warnings working group

• Review of the Disaster Management Act, 2002 and regulations pertaining to the Act Working Group

Statistics South Africa

• Sectoral Working Group: Millennium Development Goal

South African National Accreditation System (SANAS)

• Advisory Committee

Water Research Commission (WRC)

Official Structures

Input

• Seed com

• Crop protection

• Fertilizer

• Animal Health

Funders

• Commercial Banks

• Development Banks

• Private Equity Investors

Precision Farming

• Technology

• Gis

Agri Co-ops

• National

• International

Commodity Companies

• Traders

• Storage

Primary producers and processors

Insurance

• Farm

• Crop

• Life

Training and Development

• Tertiary

• Secondary

Mechanisation

Research & Development

• Chemical

• Seed

• Biotech

AGRI SA

AGRI SA Value Proposition 4

Agri Securitas Trust Fund New Services

Established in 1999 after the Rural Safety Summit to provide financial resources to farming communities enabling them to improve their own safety as well as that of other communities living in the area.

The most abhorrent element of the culture of violence in rural farming areas is the unnecessary loss of life.

To contribute to a secure farming environment the Trust Fund has funded more than 100 rural safety projects including the following:

• Provision of radio communication and repeaters systems

• Installation of boom gates to monitor vehicle movement

• Provision of number plate recognition camera systems

• Funding of rural safety equipment i.e. bullet proof vests, road block equipment etc.

• Funding of research on the motives behind farm attacks

• Funding of provincial security desks

• Funding of rural safety information pamphlets

• Funding of trauma counselling services

• Funding of Agri SA’s rural safety committee activities

• Funding of Agri SA’s transformation communication initiative

• Training and Development

• Conferences and ThinkTanks

• Development projects:

- Africa/South Africa

• Innovation:

- Technology

- Market creation

- Industry research

• Commercial advisory services

Omri van ZylChief Executive Officer

Landline: +27 (0)12 643 3400Fax: +27 (0)12 663 3178Email: omri@agrisa.co.za

Inkwazi BuildingBlock A1249 Embankment RoadZwartkop X7

Private Bag X180Centurion0046South Africa

Website: www.agrisa.co.za

AGRI SA Value Proposition 5