AGRICULTURAL SECTOR SKILLS PLAN - 2017-2018 Prepared on behalf of the Sector by AgriSETA for submission to the Department of Higher Education and ...
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AGRICULTURAL SECTOR SKILLS PLAN
2017-2018
Prepared on behalf of the Sector by AgriSETA for submission
to the Department of Higher Education and Training
August 2016
AGRICULTURAL SECTOR SKILLS PLAN / August 2016
AUTHORISATION AND OFFICIAL SIGN-OFF
We, the undersigned, hereby certify that this Final Draft Sector Skills Plan:
• Was developed by the management of AgriSETA under the guidance of the AgriSETA
Accounting Authority and in consultation with the Department of Higher Education and
Training
• Was informed by extensive literature reviews, data analysis and research
• Takes into account all the relevant policies, legislation and other mandates for which
AgriSETA is responsible
• Involved representative stakeholder consultations
• Accurately reflects the findings in terms of scarce and critical skills within documented
limitations to inform strategy planning and performance priorities.
Date:
Mr J S Madiba
Chief Executive Officer: AgriSETA
Date
Mr T Ka Plaatjie
Acting Chairperson: AgriSETA Accounting Authority
For more information, please contact:
AgriSETA
Address: 529 Belvedere St, Arcadia, Pretoria, 0002
Phone: 012 325 165
Fax: 012 325 1677
Email: info@agriseta.co.za
II
AGRICULTURAL SECTOR SKILLS PLAN / August 2016
FOREWORD
S outh Africa has a dual agricultural economy spanning subsistence and commercial interests.
These two constituencies have differing skills requirements and AgriSETA is required to serve
both. In order to accurately serve the skills needs of the Agricultural sector, AgriSETA requires
an updated Sector Skills Plan (SSP) for 2017/2018, including a scarce and critical list which is
aligned to government priorities and strategic frameworks. This document lays out these priorities
and identifies the skills needs of the sector.
It was found that commercial farmers require high level technical skills for managerial
positions, and improved Adult Education and Training and Recognition of Prior Learning (RPL) for
their unskilled workforce. Co-operatives require partnerships (with big business, government
departments, other SETAs and industry bodies) that are targeted at helping co-operatives develop
into proper businesses with access to finance, corporate governance and business management
skills.
The skills mismatch identified in this SSP points out that neither of these constituents outlined
above currently fully benefits from existing AgriSETA learnerships. Unskilled workers are, on the
whole, not eligible for lower level NQF AgriSETA learnerships because they do not have the
requisite basic literacy and numeracy skills, or require RPL to be launched onto a career
development path. This unskilled workforce spans commercial and subsistence farming. AgriSETA
provides sufficient lower level NQF interventions, but commercial enterprises require technical
skill for managerial and scientific positions, which should be catered for in the form of mentorships
and bursaries. The research supporting these findings is contained in the following document.
Date
Mr T Ka Plaatjie
Acting Chairperson: AgriSETA Accounting Authority
III
AGRICULTURAL SECTOR SKILLS PLAN / August 2016
ABBREVIATIONS AND ACRONYMS
AFASA African Farmers’ Association of South Africa
AGOA African Growth and Opportunity Act
AgriSETA Agricultural Sector Education and Training Authority
APAP Agricultural Policy Action Plan
ATR Annual Training Report
BMI Business Monitor International
DAFF Department of Agriculture, Forestry and Fisheries
DHET Department of Higher Education and Training
DRDLR Department of Rural Development and Land Reform
DTI Department of Trade and Industry
FETMIS Further Education and Training Management Information System
GDP Gross Domestic Product
HEMIS Higher Education Management Information System
HSRC Human Sciences Research Council
IDGP Integrated Growth and Development Plan
IDP Integrated Development Plan
IPAP Industrial Policy Action Plan
IRR Institute of Race Relations
KZN KwaZulu-Natal
LED Local Economic Development
MAFISA Micro Agricultural Financial Institution of South Africa
NAFU National African Farmers Union
NDP National Development Plan
NERPO National Emergent Red Meat Producers Organisation
NGP New Growth Path
NEETS Not in Employment, Education or Training
NSDS III National Skills Development Strategy III
NSFAS National Student Financial Aid Scheme
QLFS Quarterly Labour Force Survey
QCTO Quality Council for Trades and Occupations
RPL Recognition of Prior Learning
SACAU Southern African Confederation of Agricultural Unions
SADC Southern African Development Community
SAIVCET South African Institute for Vocational and Continuing Education and
IV
AGRICULTURAL SECTOR SKILLS PLAN / August 2016
Training
SAQA South African Qualifications Authority
SDA Skills Development Act
SIP Strategic Integrated Project
SIC Standard Industrial Classification
SSP Sector Skills Plan
SIZA Sustainability Initiative of South Africa
StatsSA Statistics South Africa
TAUSA Transvaal Agricultural Union South Africa
TVET Technical Vocational Education and Training
WSP Workplace Skills Plan
WTO World Trade Organisation
V
AGRICULTURAL SECTOR SKILLS PLAN / August 2016
EXECUTIVE SUMMARY
A griSETA requires an updated scarce and critical skills list, aligned to government priorities and
strategic frameworks, in response to needs identified by the Agricultural sector. There is a
need to understand how the current scarce and critical skills list matches the needs of the
Agricultural sector and how AgriSETA might facilitate relevant skills and educational opportunities
to address skills gaps identified.
This 2017 - 2018 Sector Skills Plan (SSP) aims to address four key objectives:
1. Provide a profile of the Agricultural sector which outlines economic indicators and trends in
the sector, including employer and employee trends.
2. Identify key skills issues in the agricultural sector by highlighting the macro socio-economic
factors that impact on the demand for skills. In this regard, change drivers were identified
and their articulations with national policy and strategy elaborated upon.
3. Analyse the skills demand and supply trends in the agricultural sector to identify potential
skills mismatches. This analysis resulted in the formulation of the scarce and pivotal skills
lists.
4. Agricultural sector partnerships were analysed to determine show they can be improved,
as well as demonstrate ‘best practice’ with regard to partnering.
1. RESEARCH DESIGN AND METHODS
Mixed research design and methods were adopted, including qualitative and quantitative methods.
The qualitative data was gathered via key informant interviews and surveys using a purposive sampling
method. Purposive sampling is a selective, non-probability sampling method used to identify
stakeholders from whom specific information is required. This is not a randomised or representative
sampling method. The findings from the interviews and surveys were triangulated with secondary
analysis of quantitative data and document reviews of existing research.
2. DATA COLLECTION
2.1. Surveys and interviews
In total, AgriSETA reached out to 5,878 stakeholders in the formulation of this SSP. This number was
comprised of AgriSETA members, members of co-operatives, subsector committee members
representing levy payers, key industry players, existing and potential partners, as well as agricultural
training institutions, as indicated in the table below. In addition, key information was derived from
AgriSETA through internal consultation.
VIAGRICULTURAL SECTOR SKILLS PLAN / August 2016
TABLE 1: STAKEHOLDERS CONTACTED FOR SURVEYS AND INTERVIEWS
Who we contacted
AGRISETA members 5 000
Co-operatives 513 Surveyed 5 613 stakeholders
Subsector committee members 100
Demand Top levy payers 7
Key industry players 12
Interviewed 27 key stakeholders
Existing partners (DRDLR, DAFF, DoL, Co-ops) 4
Potential partners 4
Supply Agricultural training institutes 238 Surveyed 238 training institutions
Total stakeholders contacted 5 878
Of those in the farming industry who responded to the survey, 12% were cooperative farmers,
13% were small and emerging farmers and 75% were commercial farmers. Thus, the critical skills
list generated in this SSP caters for the needs of commercial farming and favours the responses of
top AgriSETA levy payers.
2.2. Secondary Data Analysis
Secondary data analysis was also conducted as part of the SSP review, which included an
analysis of the 1,700 WSPs and ATRs submitted for 2016. It must be noted that this represents
only 8,6% of the total 19 834 employers registered with AgriSETA. These were analysed to
ascertain the training undertaken in 2015/16 and projected training for 2016/17. A review of
AgriSETA and SAQA qualifications was undertaken to ascertain the number of agricultural sector
training providers by qualification. A secondary analysis of HEMIS data provided a snapshot of the
throughput of graduates in the agricultural sector. FETMIS data was not attained and thus a similar
analysis could not be performed on TVET Colleges. These sources of secondary data analysis are
captured below.
TABLE 2: SECONDARY SOURCES OF DATA
Source Analysis
Review of WSP and ATR Training undertaken & projected by members 2015/16
Demand 1 700
submissions - 2016/17
Review of AGRISETA and
Number of training providers by qualification
Supply SAQAqualifications
Review of HEMIS data Throughput of graduates in agricultural sector
2.3 Document review
A document review was conducted to establish the economic performance and trends by
subsector, geographic concentration and employers. Government policy and strategy documents,
as well as the key statistical and industry publications, were reviewed and these are included in
the bibliography. A thematic analysis was conducted to synthesise the key economic, policy and
training issues affecting the agricultural sector, to identify key skills issues.
3. SCARCE AND PIVOTAL LIST FORMULATION
The scarce, critical and pivotal skills lists were arrived at through secondary data analysis and
the numbers made available in previous Sector Skills Plans.
VIIAGRICULTURAL SECTOR SKILLS PLAN / August 2016
3.1. Scarce and critical skills list was generated through:
Identifying hard-to-fill vacancies based on the results of previous Sector Skills Plans,
triangulated with 2015/16 and 2016/17 WSP data, as well as surveys sent to all the
AgriSETA levy payers and agricultural sub-subsector committee members. Further
information was obtained through interviews with the top levy payers and key industry
stakeholders to corroborate these findings.
An analysis of graduate completion rates compared against hard-to-fill vacancies identified
through our stakeholder engagements.
3.2. Pivotal list was generated through:
An analysis of employer commitment to train in specific occupational areas as per the WSP
submissions, in comparison with the hard-to-fill vacancies, thus determining where
additional training is needed that industry has not yet, or is unable to, respond to.
These analyses corroborated the existing top ten scarce skills list and are discussed in chapter 3.
They provide an indication of the imbalances in the sector at national qualification and
occupational level. They also provides an indication of the volume of skills formation in the
workplace and through training providers (Powell & Reddy, 2015).
4. SUMMARY OF KEY FINDINGS
South Africa has a dual agricultural economy spanning subsistence and commercial interests.
AgriSETA is required to fairly serve both these constituencies despite deriving the bulk of its
income from top levy players who are a minor proportion of the sector as a whole. The top levy
payers’ contributions justifies their skills needs be catered for, but there is also an equal
democratic imperative to support subsistence farmers and rural development for the sake of
improved livelihoods and food security.
These two constituencies have differing skills requirements. Commercial farmers require high
level technical skill for managerial positions, and improved AET and RPL for their unskilled
workforce. While co-operatives require partnerships (with big business, government departments,
other SETAs and industry bodies) that are targeted at helping co-operatives develop into proper
businesses with access to finance, corporate governance and business management skills. These
should be provided in the form of mentorships which fall beyond traditional SETA learnerships.
It appears that the skills mismatch in the agricultural sector is that neither of these constituents
currently fully benefits from existing AgriSETA learnerships. There are a group of unskilled workers
who are not eligible for lower level NQF AgriSETA learnerships because they do not have the
requisite basic literacy and numeracy skills, or require RPL to be launched onto a career
development path. This unskilled workforce spans commercial and subsistence farming. AgriSETA
provides sufficient low to medium level NQF interventions, while agricultural colleges and higher
education institutions provide medium to high level skills required by commercial enterprises.
VIIIAGRICULTURAL SECTOR SKILLS PLAN / August 2016
LIST OF TABLES AND FIGURES
TABLES
Table 1: Stakeholders Contacted For Surveys And Interviews ..........................................................VII
Table 2: Secondary Sources Of Data ..................................................................................................VII
Table 3: Activities within the agricultural sector by SIC code .............................................................. 2
Table 4: Key agricultural role-players .................................................................................................. 4
Table 5: Distribution of employees by Province in Agriculture, Fisheries and Forestry...................... 9
Table 6: General Priority Skills for Unskilled Labour .......................................................................... 19
Table 7: General Priority Skills for Skilled Labour .............................................................................. 19
Table 8: Small-Emerging Farmers & Co-operatives Top Skills Needs ................................................ 20
Table 9: Commercial Farmers’ Skills Needs ....................................................................................... 21
Table 10: Top Emerging Skills and Future Demand Needs by Subsector .......................................... 23
Table 11: Colleges of agriculture........................................................................................................ 30
Table 12: Employee trained by occupational category and gender .................................................. 33
Table 13: Scarce and Critical Skills List ............................................................................................... 34
Table 14: The AgriSETA 2017/18 PIVOTAL List .................................................................................. 36
Table 15: Policy Provisions Skills Priority Actions .............................................................................. 44
Table 16: Co-operative Skills Priority Actions .................................................................................... 45
Table 17: Mentorship and Career Pathway Skills Priority Actions .................................................... 45
Table 18: Quality of Skills Supply Skills Priority Actions..................................................................... 45
Table 19: Green Knowledge Skills Priority Actions ............................................................................ 46
FIGURES
Figure 1: Distribution of Agricultural Entities by Subsector ................................................................ 3
Figure 2: Contribution to GDP by sector, Q1 2016 .............................................................................. 5
Figure 3: Gross value of Agricultural products, 2016 .......................................................................... 6
Figure 4: Provincial distribution of employers registered with AgriSETA ............................................ 8
Figure 5: Subsitence Agricultural Activity per Household, % ............................................................. 10
Figure 6: Gender Distribution of labour in the agricultural Sector .................................................... 10
Figure 7: Employees by race .............................................................................................................. 11
Figure 8: Employment categories within large organisations ........................................................... 12
Figure 9: Distribution of AgriSETA Learnerships ................................................................................ 29
Figure 10: Distribution of SAQA Registered Agriculture Qualifications ............................................. 29
Figure 11: Universities Throughput for Agricultural students Graduating in 2013-2014 ....................... 31
Figure 12: Number of Post-School Graduates in Agricultural Sector ................................................ 32
Figure 13: Skills Development Interventions ..................................................................................... 32
IXAGRICULTURAL SECTOR SKILLS PLAN / August 2016
TABLE OF CONTENTS
Authorisation and official sign-off ............................................................................. II
Foreword................................................................................................................ III
Abbreviations and acronyms .................................................................................... IV
Executive Summary ................................................................................................ VI
1. Research design and methods .............................................................................................. VI
2. Data collection ....................................................................................................................... VI
3. Scarce and PIVOTAL List Formulation ................................................................................. VII
4. Summary of Key findings..................................................................................................... VIII
List of Tables and Figures......................................................................................... IX
Table of Contents ..................................................................................................... X
Chapter 1: Sector Profile ........................................................................................... 1
1.1. Scope of coverage................................................................................................................ 1
1.2. Economic Profile .................................................................................................................. 5
1.3. Labour market profile.......................................................................................................... 8
1.4. Conclusion ......................................................................................................................... 12
Chapter 2: Key Skills Issues ..................................................................................... 13
2.1. Alignment of sector skills planning to national strategies and plans ............................. 13
2.2. Change Drivers ................................................................................................................... 15
2.3. Implications for skills planning in the agricultural sector ............................................... 17
Chapter 3: Extent of Skills Mismatches..................................................................... 18
3.1. Extent and Nature of Skills Demand ................................................................................. 19
3.2. Scarce and Critical Skills/Occupations Identified by Stakeholders ................................ 24
3.3. Extent and Nature of Skills Supply.................................................................................... 27
3.4. Extent of Occupational Skills Supply ................................................................................ 31
3.5. Skills Supply Challenges .................................................................................................... 33
3.6. Conclusion ......................................................................................................................... 33
3.7. Scarce & Critical Skills List................................................................................................. 34
3.8. PIVOTAL List ....................................................................................................................... 35
Chapter 4: Sector Partnerships................................................................................ 37
4.1. Assessment of AgriSETA partnerships .............................................................................. 38
4.2. Approach to Future Partnerships...................................................................................... 41
Chapter 5: Skills Priority Actions............................................................................. 42
4.1. Key findings ........................................................................................................................ 42
4.2. Recommended Actions ..................................................................................................... 44
Bibliography .......................................................................................................... 47
XAGRICULTURAL SECTOR SKILLS PLAN / August 2016
CHAPTER 1: SECTOR PROFILE
C hapter 1 provides an overview of the agricultural sector in South Africa by describing the four broad
sections. The first section deals with the scope of the agricultural sector’s coverage, particularly in
relation to AgriSETA stakeholders and key role players in the sector. Section two, an economic profile of the
agricultural sector details how the sector contributes to the broader South African economy. Section three
provides agricultural employers’ profile based on the submitted 2016 WSP/ATR data, supplemented with
data from Statistics South Africa’s Quarterly Labour Force Surveys. Finally, section four provides a labour
market profile, where the number and demographics of people employed in the sector are provided. This
chapter is intended to set the scene for the skills issues delved into in subsequent chapters.
1.1. SCOPE OF COVERAGE
Agriculture, in relation to skills development in the sector, only includes agricultural activities
concerned with resource production (primary) and some primary processing of food, aquaculture and
growing of trees as a secondary crop by farmers (secondary). The sector is divided into 41 subsectors
that are classified according to their agricultural and economic focus. Table 3 below highlights the 41
subsectors and their Standard Industrial Classification (SIC) codes, as well as their focus areas.
1AGRICULTURAL SECTOR SKILLS PLAN / August 2016
TABLE 3: ACTIVITIES WITHIN THE AGRICULTURAL SECTOR BY SIC CODE
Subsector SIC Code SIC Description
SEED 11140 Seed production and marketing
PEST CONTROL 99003 Pest Control
FIBRE 30118 Grading, ginning and packing of wool and cotton raw material
11142 Manufacture of tobacco products
TOBACCO
62208 Processing and dispatching of tobacco
11220 Other animal farming, production of animal products (not elsewhere classified)
POULTRY 11221 Ostrich farming
30114 Poultry and egg production including the slaughtering, dressing and packing of poultry
AQUACULTURE 13000 Fishing, operation of fish hatcheries and fish farm
Manufacture of flour and grain mill products, including rice and vegetable milling,
30311
MILLING, grain mill residues
PET FOOD & 30330 Manufacture of prepared animal feeds
ANIMAL FEED 30331 Manufacture of pet foods
30332 Manufacture of starches and starch products
11122 Sugar plantation including sugar cane and sugar beet etc.
SUGAR
30420 Manufacture of sugar including golden syrup and castor sugar
11120 Growing of Vegetables, Horticultural specialties and nursery products
Growing of Vegetables, Horticultural specialties (Including Ornamental Horticulture)
11121
and nursery products.
11130 Growing of fruit, nuts, beverage, and spice crops.
11301 Growing of coffee and tea including coconuts, cocoa, nuts, olives, dates, etc.
HORTICULTURE 12109 Growing of trees as second crop by farmers
Fruit packed in cartons, fruit juice concentrate drummed and fruit juice in container
30132
ready for consumption
30133 Fruit exporters and importers
30493 Processing and marketing of coffee and tea including coconuts, cocoa, nuts, olives, dates, etc.
62112 Service to nut farmers and companies
11110 Growing of Cereals and other crops (not elsewhere classified)
30300 Manufacture of grain mill products and starches
GRAINS &
30313 Handling and storage of grain
CEREALS
61502 Wholesale & retail trade in Agricultural machinery
62111 Sale and distribution of Agricultural raw materials and other farming inputs
11141 Production and animal products (not elsewhere classified)
11210 Farming of cattle, sheep, goats, horses, asses, mules, and hinnies; Dairy farming.
11222 Game farming
11300 Growing of crops combined with farming of animals (Mixed farming)
11400 Agricultural and animal husbandry services, except veterinary activities
11402 Other animal farming (not elsewhere classified)
RED MEAT 30111 Slaughtering, dressing and packing of livestock, including poultry and small game for meat.
30115 Production, sale & marketing of Agricultural by products (e.g. bones, hides)
Slaughtering, dressing and packing of livestock, including small game for meat and
30117
processing of ostrich products
61210 Wholesale trade in Agricultural raw materials and livestock
74136 Transport of livestock as supporting activity
87120 Agricultural and livestock research
Source: AgriSETA, 2016.
2AGRICULTURAL SECTOR SKILLS PLAN / August 2016
These subsectors are classified into 11 subsector committees, which represent their industry
interests to AgriSETA. They include: 1) Milling, pet food and animal feeds; 2) Seed; 3) Sugar; 4) Pest
control; 5) Tobacco; 6) Aquaculture; 7) Grain and cereals; 8) Fibre; 9) Poultry; 10) Red Meat; 11)
Horticulture subsector. The graph below indicates the relative size of membership numbers by
subsectors, as captured in the AgriSETA member database for 2016.
FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR
Red meat, 45% Seed, 1%
, 0% Sugar, 1%
Tobacco, 0%
Aquaculture, 5%
Fibre, 9%
Grains and
Cereals, 10%
Horticulture, 24%
Milling, Petfood,
Animal Feed, 2%
Poultry, 2% Pest control, 1%
Source: AgriSETA member database, 2016
1.1.1. Revenue from Skills Development Levies
AgriSETA generates its revenue from Skills Development levies. Currently, there are only 19,834
employers registered with AgriSETA, while there are reportedly over 40,000 commercial farmers
registered for Value Added Tax (VAT) in the sector. This means that just under half of commercial
farming units are contributing towards skills development in the sector, placing a fair degree of
strain on available resources. In order for skills development interventions to reach a broader
base, multiple resources need to be channelled into skills development interventions.
1.1.2. Key role-players
There are a number of public and private key role-players in the agricultural sector which
contribute towards its functioning, including: national government departments, sector
representatives and industry bodies. For the sake of brevity, the table below groups these role-
players according to their strategic contribution to the sector. Please note that while as
comprehensive as possible, this list is not exhaustive.
3AGRICULTURAL SECTOR SKILLS PLAN / August 2016
TABLE 4: KEY AGRICULTURAL ROLE-PLAYERS
Department or Relevance to agricultural skills
Strategic contribution
organisation development
Quality of education of entrants to labour
Department of Basic market,
Education career awareness programmes to expose
agriculture as a possible career choice
Responsible for TVETs, HETs, agricultural
Skills Development Department of Higher colleges and skills development. Sets the
and Research Education and Training national skills development agenda through
regulation of SETAs.
Provision of updated statistics on agricultural
Statistics SA
sector economics & labour force.
Scientific research on agricultural production
Agricultural Research Council
issues.
Department of Trade and
Industrial strategy, international trade
Industry & Provincial
agreements, agricultural sector strategy and
Departments of Economic
policy implementation desk.
Development
Sector regulatory framework, strategy and
Strategy and
leadership, provision of extension services,
Policy Department of Agriculture
Broad Economic Empowerment funding of
Forestry and Fisheries
development interventions including
provision of bursaries for scarce skills.
Financial planning, incentives, accountability
National Treasury & SARS
of Land Bank, skills levies.
Labour legislation, wage determinations,
Department of Labour
employment equity
Department of Economic
Sector economic strategies
Development
Identification of inter-departmental overlaps
Planning National Planning Commission
and gaps
Policy and guidelines on environment
Department of Environmental
protection and natural resource management,
Affairs
partner in environmental education
Department of Transport Planning for transport needs in rural areas
Department of Rural
Partnering with AgriSETA in mobilising funds
Development and Land
for capacity building of claimants.
Rural Development Reform
and Land Reform Department of Cooperative Linking agricultural and rural development to
Governance and Traditional IDPs and LED, infrastructure and services to
Affairs & Municipalities agricultural enterprises
Department of Water Affairs Water Boards manage local irrigation schemes
Department of Energy Strategy to supply electricity to rural areas
Services Collaboration with agricultural community to
South African Police Service address issues of farm security, including
attacks, stock and property theft
Land and Agricultural
Financial services to commercial farming
Credit and assistance Development Bank of South
sector, agribusiness, and emerging farmers.
Africa
4AGRICULTURAL SECTOR SKILLS PLAN / August 2016
Department or Relevance to agricultural skills
Strategic contribution
organisation development
Micro-Agricultural Financial
Production loans
Institutions of South Africa
to smallholder operators
(Mafisa)
Agricultural Union serving some 32 000 large
Agri South Africa (AgriSA)
and small commercial farmers.
National African Farmers’ Represents black farmers to level the
Union of South Africa (Nafu) field in all agricultural matters.
Union and Sector
The African Farmers’ Represents commercial African farmers to
representatives Association of South Africa bring black commercial farmers into
(Afasa) mainstream agribusiness.
Transvaal Agricultural Union A national agricultural
South Africa (TAU SA) union serving commercial farmers
Fosters a favourable agribusiness
Agricultural Business Chamber
environment
Conglomerate organisation providing
Agribusiness
commodity strategic support and services to
Grain SA
South African grain producers to support
sustainability.
Source: 2015 GCIS Handbook, Agriculture and AgriSETA SSP 2011-2016
1.2. ECONOMIC PROFILE
1.2.1. Overview
Agriculture on its own accounts for 2.4% of gross domestic product (GDP) and 4.4% of total
employment (IRR, 2016). If the entire value chain of agriculture is taken into account, its
contribution to GDP reportedly reaches about 12% of formal employment (GCIS, 2014/15). The pie
chart and table below indicate the contribution of Agriculture, Fisheries and Forestry to the GDP
relative to other sectors for the first quarter of 2016. Agriculture is not disaggregated as a separate
sector in these figures.
FIGURE 2: CONTRIBUTION TO GDP BY SECTOR, Q1 2016
Trade, catering Agriculture,
and Forestry and
accommodation, Fishing , 5%
34%
Mining &
Quarrying, 17%
Construction, 9% Manufacturing ,
30%
Electricity, gas
and water, 5%
Source: StatsSA, 2016, Gross Domestic Product
5AGRICULTURAL SECTOR SKILLS PLAN / August 2016
The reported number of commercial farmers in South Africa varies. AgriSETA (2016) reports
that there are over 40,000 commercial farms registered for VAT with SARS. Of this number fewer
than 2,500 reportedly produced more than half of gross farm income (Kane-Berman, 2016). This
means as a sector, most agricultural enterprises are small in size, with a few large players making
up the lion’s share of GDP contributions. Most commercial farms have an annual turnover of less
than R1 million, which is borne out in the WSP data, which this year reports that of the 19 834
AgriSETA members, 17,475 are categorised as small, (1-49 employees) while only 698 members
are categorised as large (more than 149 employees).
The number of commercial farmers by racial breakdown is not readily available, but according
AgriSA 700 of its black members are commercial farmers. Afasa says a third of its 10 000 members,
spread across livestock, field crops, and horticulture, are “farming for the market,” but that only
2% of them are doing so successfully (Kane-Berman, 2016). Thus, many South African farms are
hand-to-mouth operations, regardless of their categorisation as ‘subsistence’ or ‘smallholder’, and
require significant support to become sustainable. Those farmers categorised as ‘emerging’ are
attempting to graduate from small-scale farming to commercial, but again require support in the
form of development finance, managerial mentoring and enterprise development. The reported
number of emerging farmers ranges from 50,000 to 120,000 (IRR, 2016), and some of the biggest
numbers of emerging farmers are in timber and sugar. These remarks point to the need for skills
development in the agricultural sector, to bolster existing farming concerns, as well as bringing
new skills into the industry. The effect of shifts in land reform for rural skills development will be
taken up in chapter 2.
The table below indicates the gross value of agricultural products from 2010 – 2015. A sharp
decline was observed from 2014 to 2015, a trend which is expected to continue into 2016, with
drought as one of the major contributing factors to this decrease in value.
FIGURE 3: GROSS VALUE OF AGRICULTURAL PRODUCTS, 2016
78,000
75,416
76,000
74,000
72,000 70,577 70,994
70,000 68,093
68,000 66,913
65,605
66,000
64,000
62,000
60,000
2010 2011 2012 2013 2014 2015
Rands (Millions)
Source: Stats SA 2016
The value of South African exports of agricultural vegetable products increased to R 44, 901
million in December from R 41. 151million in November 2015. Exports of vegetable products in
South Africa averaged at R 23, 181 million from 2014 until 2015, reaching an all-time high of R 44,
901 million in December of 2015 and a record low of R 2, 816 million in January of 2015 (Trading
Economics, 2016).
The agricultural sector is seen as a critical employer with larger scale farming operations not
only creating many jobs in rural communities, but also being a catalyst in creating downstream
business and employment opportunities within the agri-processing and manufacturing sectors
6AGRICULTURAL SECTOR SKILLS PLAN / August 2016
(FEM, 2015). The agriculture sector has strong linkages with many sectors including tourism,
manufacturing, wholesale and retail among others. Backward linkages in manufacturing are
created during the purchase of fertilisers, chemicals and implements, and forward linkages are
established through the supply of agricultural raw materials to the manufacturing industry.
Agricultural products such as vegetables, fruit, dairy products and meat are marketed through
retail shops straight from the farm. The agricultural sector therefore directly and indirectly creates
employment for a significant number of people.
Statistics South Africa (2014) reported that more than 75% of all national farm operation costs
were attributed to labour, reiterating the centrality of labour concerns to the sector. Such a labour
intensive industry with linkages to many other value chains offers shared benefits for skills
development in the sector. Partners up and down the value chain will benefit from improved
operations and efficiencies while employees will have improved quality of life with improved skills
levels. The South African food security will be enhanced through sustainable farming practices in
small-scale and commercial farming alike.
1.2.2. Economic outlook for the sector
Business Monitor International (July, 2016) holds a mixed outlook for the South African
agricultural market. This is due to the effects of the drought and El Niño on corn and wheat. The
weak rand, weather volatility and falling farm incomes are forecast to exert downward pressure
on the market. However, in the longer term it is predicted that revenue in the sector will be
boosted by a growth of about 40% from food consumption due to the growth of the middle class
and disposable incomes. BMI estimates that annual food consumption revenue will reach over
R609 billion in 2018.
In the 2015/2016 financial year corn production was expected to decline by 38.8% and sugar
production to decline by 20.2% due to the severe drought and El Niño. However, poultry
production will increase by 1.2% and pork production will rise by 2.1%. The effect of the drought
and climate change on skills development will be taken up in Chapter 2.
1.2.3. Employer Profile
The AgriSETA members’ data base includes some 19,834 employers. When one looks at this
data disaggregated by sector and province, the numbers do not add up exactly due to overlap of
provincial or sectoral boundaries. 17,139 employers are categorised as small, (1-49 employees),
1,611 are medium (50-149 employees) while only 653 members are categorised as large (more
than 149 employees). Among registered employers, there were 13,946 employers in the primary
sector, most of them small companies. The primary sector constitutes 70 % of all registered
employers, followed by fibre (11%) and red meat (6 %). The sugar, coffee/tea and tobacco
subsectors have the fewest registered employers, jointly accounting for about 1% of all registered
employers in the sector.
The provincial distribution of employers registered with AgriSETA is reflected in the pie chart
below, with provincial distribution by employer size in figure 4.
7AGRICULTURAL SECTOR SKILLS PLAN / August 2016
FIGURE 4: PROVINCIAL DISTRIBUTION OF EMPLOYERS REGISTERED WITH AGRISETA
Western Cape, Eastern Cape, 9%
29%
Freestate, 7%
Gauteng, 17%
Northern Cape,
8%
North West, 3%
KwaZulu-Natal,
Mpumalanga,
14%
12% Limpopo, 1%
Source: AgriSETA members’ database, 2016
What we see in the figure above is that the Western Cape is the most represented province in
the AgriSETA membership database, followed by Gauteng, KwaZulu-Natal and Mpumalanga all
with membership numbers in the 2000s, and the Eastern Cape, Northern Cape and the Free State
having memberships totalling the mid to high 1000s. Northwest and Limpopo have the lowest
number of AgriSETA members. We know that the AgriSETA database does not represent all
farming enterprises in the country, and thus must be treated with a fair degree of caution when
applying it to a national context. For instance, Limpopo is a known farming province, but is
underrepresented in AgriSETA numbers. Nevertheless, there are significant number of
stakeholders expressing an interest in skills development in the agricultural sector.
If representation of farms in the sector on the AgriSETA database must be taken into account,
then even more so the size of the employers. 88% of members are categorised as small employers,
with less than 50 employees. The size of farming units is important in determining what training
interventions should be provided.
What these figures reveal is that AgriSETA needs to meet the needs of two distinct
constituencies: top levy payers and small-scale farmers. The needs of a large commercial farm
differ from those of a subsistence farmer. There is a need to work towards supporting the skills
development needs of top levy payers because of their large contributions and ability to absorb
labour, but there is also a democratic responsibility towards ensuring that the large majority of
small-scale farmers attain skills that make them sustainable for the sake of the food security of
their communities. These issues are further taken up in chapter 2.
1.3. LABOUR MARKET PROFILE
Turning from the employer profile, we will now look at the employee profile of the agricultural
sector. The labour market trends presented here have largely been drawn from Quarterly Labour
Force Survey (QLFS) data from StatsSA, supplemented with data from the AgriSETA WSP and
8AGRICULTURAL SECTOR SKILLS PLAN / August 2016
membership databases. It is important to recognise the limitations of both these datasets so that
unfounded extrapolations are not made.
The QLFS data does not distinguish between employment figures for agriculture, fisheries and
forestry or between the informal and formal sectors. Data for domestic workers is aggregated with
agricultural data and the data only reflects the economically active population between the ages
of 15 and 64. Where possible, this data will be compared to the AgriSETA WSP data, which is also
limited in its scope in that it only represents about 10% of employers affiliated with the SETA.
South Africa recorded an unemployment rate of 24.5 % in the fourth quarter of 2015 (narrow
definition) (StatsSA, QLFS, Q4, 2015). If people who are no longer actively seeking work are
included, the broad unemployment rate rises to 35.22% (StatsSA, QLFS, Q4, 2015). South Africa
now has a NEET (not in employment, education or training) youth population of approximately 3,4
million people. The sheer scale of the crisis demands each and every sector’s involvement and the
particular impact of this youth bulge is addressed in chapter 2.
Over the twelve-month period from January 2015 to January 2016, employment in the
agricultural sector decreased from 891 000 to 877 000. Departing from this downward trend, the
QLFS conducted by StatsSA in the first quarter of 2016 put the agricultural sector amongst the few
industries that experienced a quarterly increase in employment levels (16,000 employment
opportunities were observed). BMI has attributed some of this growth to huge sums being
invested in the “Proudly South African” food campaign to encourage consumers to buy
domestically grown and produced goods.
1.3.1. Provincial distribution of employees
The table below indicates that the Western Cape has the highest number of agricultural
employees at 228 000, this is followed by KwaZulu-Natal at 136 000 employees and Limpopo at
120 000 employees (StatsSA, 2016).
TABLE 5: DISTRIBUTION OF EMPLOYEES BY PROVINCE IN AGRICULTURE, FISHERIES AND
FORESTRY
Province 2010 2011 2012 2013 2014 2015 2016
Western Cape 135 000 107 000 142 000 162 000 131 000 214 000 228 000
Eastern Cape 66 000 63 000 58 000 67 000 88 000 89 000 95 000
Northern Cape 54 000 57 000 48 000 45 000 60 000 43 000 40 000
Free State 63 000 62 000 62 000 70 000 54 000 64 000 72 000
KwaZulu Natal 114 000 95 000 98 000 96 000 102 000 141 000 136 000
North West 35 000 33 000 32 000 42 000 42 000 57 000 54 000
Gauteng 31 000 74 000 51 000 53 000 55 000 34 000 37 000
Mpumalanga 81 000 84 000 106 000 77 000 89 000 92 000 95 000
Limpopo 70 000 94 000 121 000 102 000 121 000 126 000 120 000
Total 649 000 671 000 718 000 713 000 742 000 860 000 877 000
st
Source: Statistics South Africa, 2016. Quarterly Labour Force Survey.1 Quarter 2016
These employment statistics reveal a bias in AgriSETA WSP data, where Limpopo was shown to
have a minimal employer profile. What this QLFS data indicates is there is room for substantial
engagement with Limpopo, to up their provincial contribution towards skills levies, thereby increasing
the skills resources pool across the board.
This QLFS data is further broken down in the bar graph below, to examine the household levels
of agricultural activity by province.
9AGRICULTURAL SECTOR SKILLS PLAN / August 2016
FIGURE 5: SUBSITENCE AGRICULTURAL ACTIVITY PER HOUSEHOLD, %
35
30
25
20
15
10
5
0
Livestock Poultry Vegetables Crops Other
st
Source: Statistics South Africa, 2016. Quarterly Labour Force Survey.1 Quarter 2016
1.3.2. Gender
Figure 6 below gives the breakdown of the agricultural sector by gender as reported in the first
quarter of 2016 (StatsSA, QLFS, Q1, 2016).
FIGURE 6: GENDER DISTRIBUTION OF LABOUR IN THE AGRICULTURAL SECTOR
120
100
80
60
40
20
0
Jan-Mar 2015 Apr-Jun 2016 Jul-Sep 2015 Oct-Dec 2015 Jan-Mar 2015
Female Male
The male to female ratio for agricultural labour is fairly consistently found to be 2:1, as
indicated above. This StatsSA data is corroborated by WSP data submitted by employers in 2016
10AGRICULTURAL SECTOR SKILLS PLAN / August 2016
which shows that 62.8% of employees engaged in various occupations within the sector are male.
The data further shows that across all the sub-sectors, with the exception of Coffee / Tea, more
males are employed than females. There are no current AgriSETA initiatives focused on
encouraging more women to enter the agricultural industry.
1.3.3. Race
WSP (2016) data reveals that black Africans comprise the majority of employees in the sector at
64%, followed by Coloured employees at 23% and whites representing 12% of the agricultural
workforce. Asians only represent 1% of workers in the agricultural sector.
FIGURE 7: EMPLOYEES BY RACE
White, 12% Africans, 64%
Indian, 1%
Coloured, 23%
Source: AgriSETA WSP Submissions, 2016
WSP data from all the sub-sectors shows only 601 employees with disabilities out of 244,224
employees within large Agricultural enterprises were selected for training.
1.3.4. Age
Half of the people employed in the agricultural sector by employers submitting WSP, are
between the ages of 35 and 55. Young people below the age of 35 constitute 42% of people
employed whilst 8% are above the age of 55. In total, 92% of the workers are below the age of 55.
These demographic realities were validated in interviews with stakeholders, who all
commented on the need for skills transfer from those exiting the workforce to those coming up
the ranks. The issue of unskilled youth presents a difficulty for skills transfer, because some base
level qualification is needed to enter the skilled workforce in the first place. This presents
challenges for skills development, because of the double hurdle of experienced employees exiting
at a rate not able to be matched by the numerous youth demographic. Analysis of WSP
submissions by employers in 2016 shows that the majority of employees are in the primary sub-
sector (48%) followed by the grain sub-sector (11%) and poultry at 19% each. Coffee & Tea, sugar
and fibre sub-sector has the least representivity of workers.
1.3.5. Occupational categories
This chapter concludes by looking at the reported existing skills levels in agricultural enterprises
as reported WSPs for 2016. The necessary skills vary from highly skilled managerial and
professional occupations to fairly low level skills for elementary occupations. The majority of the
workforce comprises elementary occupations, while managers comprise 6% of the workforce.
11AGRICULTURAL SECTOR SKILLS PLAN / August 2016
FIGURE 8: EMPLOYMENT CATEGORIES WITHIN LARGE ORGANISATIONS
Managers, 6%
Professionals, 3%
Technicians and
Associate
Professionals, 6%
Elementary Clerical support
Occupations, 51% workers, 5%
Service and
Salesworkers, 4%
Skilled Agricultural
and related Trade
workers, 12%
Plant and Machine
Operations, 13%
Source: AgriSETA WSP Submissions, 2016
1.4. CONCLUSION
Having a firm sense of the agricultural sector’s contribution to the economy in terms of
production and employment, we can now more readily identify key skills issues that speak to this
economic reality. The remainder of this document covers the following issues that speak to Sector
Skills Planning. Chapter 2 identifies key skills issues as framed by government legislation, policies
and frameworks, and identifies key macro socio-economic and environmental factors that function
as key change drivers in addressing skills development in the agricultural sector.
Where Chapter 2 offers a high-level overview and Chapter 3 becomes much more granular. In
chapter 3, the mismatches between the demand and supply of skills in the sector are examined by
drawing on the views of industry stakeholders and validating these views through secondary data
analysis. Chapter 4 points to key partnerships in the sector, examines existing partnerships and
asks what future partnerships might be necessary to address the skills gaps identified in Chapter 3.
The final chapter draws together these macro and granular skills issues and asks what the key skills
priorities should be for AgriSETA over the next five years. These priorities will act as a guiding set
of objectives that will inform the planning processes of the AgriSETA’s annual performance and
strategic plans, where they will be quantified and operationalised.
12AGRICULTURAL SECTOR SKILLS PLAN / August 2016
CHAPTER 2: KEY SKILLS ISSUES
H aving outlined the agricultural sector profile in chapter one, this chapter is concerned with
two specific areas that shape the key skills issues in the agricultural sector. Firstly, the
alignment of sector skills planning to national strategies and plans will be analysed to provide a
snapshot of the key policy and planning documents that shape skills planning in the agricultural
sector. Secondly, the bulk of this chapter will be concerned with identifying factors that are driving
change in the sector, which are influencing the need for a particular skill set or rendering them
irrelevant in an ever-changing world.
2.1. ALIGNMENT OF SECTOR SKILLS PLANNING TO NATIONAL STRATEGIES AND PLANS
The following section draws attention to the national strategy and planning documents that
frame AgriSETA’s mandate for skills development. All of these legislative and policy frameworks
speak to AgriSETA’s Constitutional mandate, as a Public Institution governed by the Public Finance
Management Act, to develop skills programmes in accordance with the Skills Development Act,
13AGRICULTURAL SECTOR SKILLS PLAN / August 2016
(1998), the Skills Development Levies Act (1999), and the National Qualifications Framework Act
(2008).
There are two seminal strategic documents that underpin AgriSETA’s mandate for skills
planning, namely: the White Paper on Post School Education & Training (2013) and the National
Skills Development Strategy III (NSDS III) (2011 – 2016). Both of these documents highlight the
SETAs roles in developing clear, sector-specific linkages between education and the workplace
through an analysis of the demand and supply of skills in their sector. These documents call for
credible institutional mechanisms for skills planning, programmes that are occupationally
oriented, and responsive higher and further education and training institutions. Furthermore,
attention should be given to the needs of local, community enterprises, co-operatives and the like,
with a focus on developing their skills capacities to meet the needs of their particular
environments, thereby closing the gap between the rural and urban South African economies.
The NSDS III is informed and guided by the following overarching government plans: The
National Skills Accord as one of the first outcomes of the New Growth Path, the Industrial Policy
Action Plan, 2013/14 – 2015/16 (IPAP), the Comprehensive Rural Development Programme, the
Human Resources Development Strategy for South Africa 2030, the National Development Plan
2030 (NDP), and the Integrated Sustainable Rural Development Strategy (ISRDS). Collectively,
these government plans and programmes recognise the need for correcting structural imbalances
in the economy through “decent employment through inclusive growth”, “a skilled and capable
workforce to support an inclusive growth path”, “vibrant equitable and sustainable rural
communities contributing towards food security for all”, to “protect and enhance our
environmental assets and natural resources”, with the support of “an efficient, effective and
development-oriented public service” (NDP). All these priorities speak to the need for relevant and
targeted skills provision that promotes economic sustainability in the agricultural sector, as well as
meeting the needs of all South African communities, both rural and urban, in terms of food
provision and sustainable livelihoods.
Other agricultural sector-specific policy frameworks that buttress skills planning vis-à-vis job
creation include the 2014 Agricultural Policy Action Plan (APAP), the DAFF Integrated Growth and
Development Plan (IGDP) (2012), and the 2012 Midterm Review for the Department of Rural
Development & Land Reform. The IGDP names its four sector strategic objectives as addressing
issues of (1) equity and transformation, (2) growth and competitiveness, (3) environmental
sustainability and (4) governance. The DRDLR Review pays particular attention to the role of
mentorship in ensuring the success of emerging farmers.
As part of the National Infrastructure Plan, the Strategic Integrated Projects (SIPs) take their
mandate from the Presidential Infrastructure Coordinating Commission (PICC) and encompass a
combination of 18 projects which are intended to address the infrastructure needs of specific
sectors or geographical areas. The agricultural skills sector’s contribution to the SIPs is concerned
with developing trades which can be taken up in the agricultural sector.
Cutting across all these policies, strategies and plans, we see a focus on:
1. The need for occupationally oriented skills training that offers in-the-field experience and
mentorship
2. The need for high quality, up-to-date industry relevant training to ensure competitiveness
3. The imperative to include rural areas in economic development, job creation and food
security
4. Environmental concerns related to food security and ecological sustainability.
These focus areas are also borne out with regards to the contextual factors driving change in
the agricultural skills sector, to which we now turn.
14AGRICULTURAL SECTOR SKILLS PLAN / August 2016
2.2. CHANGE DRIVERS
In this section key themes and issues driving change and influencing skills demand and supply in
the agricultural sector are addressed. These change drivers were identified through a thematic
synthesis of internal stakeholders’ views, policy documents, existing research and stakeholder
engagement, and pertinent current affairs issues reported in the media over time.
2.2.1. Legislative loopholes affecting skills development
Wiltshire (2016) has drawn attention to a legislative loophole with regards to skills
development in the agricultural sectors. She notes that employers receive no subsidies for training
temporary farmworkers, which comprise a large part of the agricultural workforce. This is because
“the Skills Development Act defines learners dichotomously as either (fully) employed learners
(18.1) or (fully) unemployed learners (18.2). This means that temporary (partially) employed
learners are not specifically catered for”. This has a detrimental effect on temporary farmworkers
who will not receive any skills development while they are employed or unemployed, because
“skills development legislation is premised on the assumption of labour market security and does
not recognise the growing numbers of casualised workers in South Africa (52%)” (ibid).
2.2.2. Land and agrarian reform
The government places high value on the need for land reform as a form of redress for
historical issues of dispossession. There is a target of transferring 30% of agricultural land to black
ownership by 2025 (Xingwana, 2008). However, the success of land reform to date has been
limited with no increase in production or economic growth. This is because many beneficiaries lack
the necessary production skills and business acumen to farm effectively. The DRDLR’s 2012
Midterm Review highlighted the need for mentors and strategic partners to help emerging
farmers succeed. However, it was reported in July 2016 that land reform had the potential to
“deter investment in agribusiness activities” and that the “growing exodus of South African
farmers” could have a “detrimental impact on the agribusiness sector, depriving it of knowledge
and skills” (BMI, 2016). The 2014 APAP noted that small commercial farmers, of which land reform
beneficiaries are a subset, are disappearing “at an alarming rate”, with smaller farms being taken
out of the market by bigger producers who survive because of economies of scale. These findings,
supported by research and already existing programme interventions, point to the urgent need to
retain existing skills in the sector, to mentor emerging farmers in management skills and
enterprise development in the field (Kane-Berman, 2016, stakeholder interviews, 2014, CDE,
2008).
2.2.3. Agricultural co-operatives
It was reported by BMI that 80% of farmers in sub-Saharan Africa are smallholders. It is argued
that, in the long term, African farming will have to move away from subsistence agriculture to be
competitive and profitable in the genetically modified farming sector (BMI, 2016). For this reason,
“partnerships with food companies, the development of co-operatives and greater access to
credit” are needed to develop the sector more generally (BMI, 2016). Agricultural co-operatives
are explicitly mentioned in the policy documents outlined above as requiring support to ensure
their sustainability. Indeed, there have been calls for a new rural development subsector to be
established to cater specifically for the needs of co-operatives, in response to both stakeholder
needs and the policy directive contained in the NSDS III (Internal Consultation, Internal
Stakeholder, 2015-16). These co-operatives face the dual challenge of needing technical
production skills as well as corporate governance skills. Smaller agricultural co-operatives do not
stand a competitive chance in the market, with major retailers buying directly from commercial
farms in both urban and rural areas (Kane-Berman, 2016). Furthermore, collective ownership
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