VKB AGRICULTURAL DEVELOPMENT INITIATIVES · Market access –retail chain stores Distribution &...

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VKB AGRICULTURAL DEVELOPMENT INITIATIVES 14 NOVEMBER 2019

Transcript of VKB AGRICULTURAL DEVELOPMENT INITIATIVES · Market access –retail chain stores Distribution &...

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VKB AGRICULTURAL DEVELOPMENT INITIATIVES

14 NOVEMBER 2019

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POST SETTLEMENT SUPPORT • Mainstream Development & Finance Program: 128 • Developing Farmer Database: 1312• Finance (limited collateral): R40 M • Agriseta Accredited Training est. 2008: 236

• Enterprise Development Model• Full Package of Support:

- Training, Mentorship, Technical & Economic Advice- Input Procurement- Market Access- Mechanisation- Finance & Insurance

NEW DIRECTIONR

M

P

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Publieke private vennootskappeSTAKEHOLDERS IN DEVELOPMENT

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Studygroup

Mentorship &

Training

Financial management

Mentorship & CoachingAgri-Seta (NQF2)

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Limpopo: Intensive crops, small scale, traditional tenure

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Free State: Commercial Grain Crops RP Tsotetsi: 5.95 t/ha

TJ Nkisi: 7.9 t/ha

KB Lesia: 5.8 t/ha

L Makoele 6.5 t/ha

MA Letuka 5.1 t/ha

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Mr. D. Maqala: Developing Dry Bean Farmer of the Year 2019 (DPO)

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Mr. Malakia Modikwa

Overall Winner Limpopo Young Farmer of 2019

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Reality of many developing farmers:Not competitive in view of global trends & economic realities

Structural restrictions:

• Knowledge & skills

• Capital

• Lack of financial feasibility

• Collateral

• Access to markets

• Mechanisation & equipment

• Infrastructure

• Poor soil status

• Contours & waterways (water management)

• Economy of scale (commercial)

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INTRODUCED ASPARAGUS AS HIGH VALUED CROP TO INCREASE ECONOMIES OF SCALE

EXPANDED LAND THROUGH LONG TERM LEASE AGREEMENTS (9 farmers, 135ha)

ESTABLISHED ASPARAGUS LONG TERM CROP (135ha)

RESTRICTIONS TO ENTER:

➢ No producer organisation (information)

➢ Seed import to grow crowns/seedlings

➢ Capital intensive (R65000/ha)

➢ Market access – retail chain stores

➢ Distribution & continuity

➢ Cold chain maintenance

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2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

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Tswelopele Asparagus Co-op

Rosendal Job Creation Co-op

Exports:- UK- Europa- Mideast

- Finance- Project management- Technical Services- Economic Services- Mentorship & training- Global GAP

- Market access - Distribution- Technical advice- Training

Local

- Management- Production- Basic infrastructure- Job creation

Public Institution Commercial FarmerAgribusiness RetailNew Era Farmers

- Grant funding- Monitering

PUBLIC PRIVATE PARTNERSHIP (PPP)

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LAND REFORM

o Land transfer via restitution & redistribution (Government)

o Land transfer via private transactions & partnership formation

o Post Settlement Support & Development

o Integration into institutions, markets, value chains

o Social harmony:

o Trust

o Relationships

o Cohesive farming community

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LAND REFORM INFLUENCEABLE BY COMMERCIAL FARMERS

o Land transfer via restitution & redistribution (Government)

o Land transfer via private transactions & partnership formation

o Post Settlement Support & Development

o Integration into institutions, markets, value chains

o Social harmony:

o Trust

o Relationships

o Cohesive farming community

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TWO WAY APPROACH TOWARDS GREATER INVOLVEMENT OF COMMERCIAL AGRICULTURE

o REGIONAL CENTRE FOR LAND REFORM & DEVELOPMENT:

o Witzenberg PALS Model

o Special Purpose Vehicle directed by farmers

o Promote regional development & partnership formation

o Link to ADA & other incentive schemes (enablers)

o LOCAL DISTRICT COOPERATION INITIATIVES:

o Improve cooperation & social cohesion at district level

o Local district body (discussion forum & committee) 5

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Regional Centre

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❖ Trust

❖ Cooperation

❖ Togetherness

Aldrin LawrenceJapie van der Goot