AGRIPARKS - TOWARDS AN INCLUSIVE AGRICULTURE ECONOMY - DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
AGRIPARKS – TOWARDS AN INCLUSIVE
AGRICULTURE ECONOMY
DEPARTMENT OF AGRICULTURE AND RURAL
DEVELOPMENT
PRESENTATION TO THE CPSI
Presenter: Mr Motlatjo Makaepea
29 JUNE 2017
KEMPTON PARK
1
Contents • An introduction to Gauteng • Overview of Gauteng Agriculture Economy • Focus on Agriparks as a mechanism for inclusive participation of all farmers in the agriculture economy • Conclusion
An introduction to Gauteng Province: Location
• Gauteng is the
smallest
province in
South Africa
with 1.7m ha of
land surface
area
• It occupies only
1.4% of RSA
land surface
area
• Population:
12.3m (23.7% -
Largest %
share of RSA
population –
Census 2011)
• Gauteng has 3
of the 8 Metro
Municipalities
in the Country
Broader economic overview of Gauteng
• Gauteng is the economic
powerhouse of South Africa
• The province contributes 33.9% to
national GDP
• It furthermore contributes 10% to
Africa GDP
• Major cities such as Johannesburg
and Pretoria are in Gauteng
Province.
• Built-Development pressure high
• The province has 4 largest fresh
produce markets in the country
– Johannesburg Fresh Produce Market
– Tshwane Fresh Produce Market
– Springs Fresh Produce Market
– Vereeniging Fresh Produce Market
Contribution of agriculture to Gauteng economy
• Contribution of primary agriculture to Gauteng GDP is 0.5%
• Contribution of total agricultural value chain including secondary and tertiary agric tiers to
GDP is 2.3%
• The province is 18% built-up with 17.3% of High Potential Agricultural Land
• Vacant land in the province is 946 710ha (52% of the total surface area)
• Vegetation: 2 biomes which are Grassland and Savanna
• Agriculture households in Gauteng
Gauteng Agricultural sub-sectors gross farming income
Animal/Livestock
Other products Field crops
• Livestock production is the lead
products
10% 2% 8%
agricultural sector with 59% of
Horticulture
21% gross farming income
• Horticulture sector with specific
reference to Vegetables and
flowers is the 2nd biggest income
Animals/Livestock
59% earner with 21% of the gross farm
income
Agriparks: National Context
• State of the Nation Address (SONA): Declared 2015 year of
Freedom Charter
• Agriparks becomes a focal point for Agriculture
development
• A sum of R2b was reprioritized for the program
• Department of Rural Development and Land Reform
(DRDLR) becomes the National Custodian of the Program
• State of Province Address (SOPA)
• Township Economic Revitilization (TER) linked to Agri-Parks
• Agro-Processing as a viable tools to re-industrialise Gauteng
(WRDM & Sedibeng)
• Gauteng becomes a leading province for development of
Agriparks nationally by allocating its own resources
7 R60M
Agri-Parks - Formulation of the problem • Low contribution of agriculture to the economy (0.4%) • Lack of adequate land parcels for production • Low productivity levels of smallholder farming sector • Lack of infrastructure for value-adding and agro-processing targeted at smallholder farmers • Inadequate clustering of smallholder agricultural produce for ensuring adequate volumes, access to markets and value- added infrastructure • Funding constraints impeding development of processing infrastructure at individual farm level
AGRI-PARKS: CONCEPT
• Agri-Parks which is a network comprised of clustered agricultural
infrastructure for production and value-adding developed in the peri-
urban areas
• Agri-parks based on Agriculture Policy Action Plan (APAP) and
Industrial Policy Action Plan (IPAP) with priority given to “Horticulture
Value Chain” and “Grain-Poultry Integrated Value Chain”.
9
AGRI-PARKS: CONCEPT
• The Agri-parks provides for:
• Secured, intensive bulk production of a specific agricultural
commodity for economies of scale
• Agro-processing within a shared infrastructure (incubation),
• Marketing avenues of agri-infrastructure,
• Value adding and marketing within the boundaries of a single
geographical farm or an agricultural holding.
• Model different from existing farming model (Based on - One
locality)
10AGRI-PARKS GOALS • Agri-parks emphasise competitiveness • Production of High-value commodity (Focus) • Branding (Logo) & Visibility • Localiztion • Volumes & Quality of produce • Retail presence • Export capability
PRIORITY COMMODITIES FOR GAUTENG (AGRIPARKS PROGRAM)
Horticulture Value Chain Grains – Poultry Integrated Red Meat Value Chain
Value Chain
(4th largest producer of Grains)
Horticulture Value Chain 59% of Gauteng Gross farm
(21% of Gauteng GVA) income comes from Livestock
• Vegetables predominantly in Feedlots
• Cut Flowers Opportunity: Processing
• Herbs & Essential oils infrastructure for smallholder
Opportunity: Proximity to farmers and their integration.
large population and - Linkage to mobile abattoirs
growing middle class – program
Bulking up, quality
assurance and brandingAgriparks / Agrihubs – Protect Areas of High Potential Agricultural Land
• 7 Agricultural Hubs
are Agricultural
Development Zones
delineated to protect
High Potential
Agricultural Land and
focus agric
development.
• The Agric Hubs
encompass the Maize
growing belt of
Gauteng also known
as Maize TraingleMajor Crop Commodities – Spatial Distribution
• A total of 314 992ha is
under cultivation with the
following crops
– Grains (Maize &
Sunflower) covers a
large area of 107 259ha
– Vegetables
– Orchards (Peaches &
Citrus)
– Flowers
– Essential oils and herbs
• Gauteng is the Number 1
producer of cut flowers with
the exception of Proteas
• 4th Maize producer in South
AfricaAGRIPARKS CATCHMENT
AGRIPARKS LINKAGE TO NEIGHBOURING FARMERS
AGRIPARKS OPERATING MODEL
• Each Agripark will be a critical link
between the formal markets and FORMAL MARKETS
the smallholder farmers.
Off-take
• The Agripark will serve as an Agreements
intermediary and a distribution
facility whereby the smallholder AGRIPARK
Shared packaging & coldroom facilities
farmers `s produce will be •
•
Out-grower Model & On-site production
aggregated and graded in
accordance with formal markets
requirements
• Management of each Agripark is
to be undertaken on a private-
public partnership to ensure a Smallholder
farmer Smallholde
balance between with economic Smallholder
farmer
Community
gardens
r farmer
and development goals.Generic Project Plan for all Agripark Sites
KEY ACTIVITIES TIME
2014/15 2015/16 2016/17 2017/18
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1. Planning Agri-parks
2. Infrastructure Development
3. Entrepreneur
Selection
4. Contract Markets Negotiations
5. Production (Scaled and
Synchronised per commodity)
6. Logistic (Aligned to Contract
Markets)
7. Maintenance
7.1. Servicing markets
7.2. Infrastructure
7.3. RelationshipsRANDWEST AGRI-PARK FACILITIES Westonaria Agripark: Hydroponics, Packhouse and Administration Block and Training room Westonaria Agripark: Lettuce production Training room
Westonaria Agripark Hydroponics Vertical chamber
Investment in New Technology onsite • As part of Re-industrialization the department has introduced the latest farming technology in the form of Vertical Growth Chamber farming system. • The facility is also established at Rand West Agri-park facility. This is also in line with adaptation mitigation of climate change. • The chamber is an intensive growth chamber for vegetable production; high yield is attained within short period of time. • This technology has the potential to solve many problems associated with access to land and attain economic viability within a small space
Production of baby spinach on vertical chamber
AGRIPARKS TER LINKED - SEBOKENG ZONE 10
Size 3.16ha
Perimeter 816M
24Sebokeng Zone 10 Agri park
COJ Eikenhof Agripark - Fence, training and office building
MERAFONG AGRIPARK (EXPANSION)
• The Project includes:
• Construction of 16 x 300
m2 hydroponics tunnels
(100% complete)
• Construction of a 5000
m2 shade net (100%
Complete)
• Repairing of pump
station (96% complete)Eikenhof FPSU - 20 Tunnels and 4 10000l water tanks
Fence, training and office building at the Eikenhof Agri-park
MERAFONG AGRIPARK (EXPANSION)
• The Project includes:
• Construction of 16 x 300
m2 hydroponics tunnels
(100% complete)
• Construction of a 5000
m2 shade net (100%
Complete)
• Repairing of pump
station (96% complete)Merafong Agripark Vegetable production
ONVERWACHT AGRIPARK FARMER PRODUCTION SUPPORT UNIT (FPSU)
Commodities to be produced:
Vegetables, Flowers and Herbs
32The Innovation Hub Agri park - Food innovation
CONSTRUCTION STATUS
Greenhouse construction
• 90 % completed
– Entrance cabins, electrical
installations tested and functional
(extractor & circulation fans)
– wettable wall installed
– Water reticulation layered (Main
line, drainage pipe, internal gutter
down pipes, underground pipes and
irrigation pipes)
– Thermal screens installedCONSTRUCTION STATUS …. continue
• 10 % remaining (plastic covering)
– Side walls to be covered upon
completion of automated system to
be housed in the pack house
– Complete covering without
automated climate control will
accelerate destruction of the plasticRisks and challenges
RISKS AND CHALLENGES MITIGATION
Acts of vandalism and theft Full-time on site security
Disruption by non-project participants Legal binding agreements for
all the project participants
Group dynamics affecting operational Continuous Cooperative
capabilities capacitation
Water and electricity costs and interruptions On-site back-up generators
Poor market uptake or inability to service off- Support of agri-entrepreneurs
take agreements (Need at least guarantee off- with inputs and logistics
take from state institutions) support
Poor commitment from agro-entrepreneurs Legal binding agreements for
operating in the Agripark all the project participantsSuccess factors
• Crowding of agricultural and rural development investment in the
Agri-Park model including land reform programmes
• Management Institution of the Agri-parks (Subject to land tenure
system)
• Availability of state land to develop the identified agri-parks
(DRDLR to list its properties)
• Funding availability and project management support (DRDLR is
working on the financing model)
• Committed beneficiaries (Agri-entrepreneurs)
• Dedicated technical and management support
• Formidable partnerships with industry and DRDLR, DAFF and
Municipalities (Site Approval)Spin offs • Each Agri-park is expected to contribute a minimum of 30 jobs onsite with emphasis on youth, it is anticipated that 150 jobs per agri-park when each Agri-park is operating at full capacity. • Agri-parks will contribute to increased productivity, competitiveness and agro-industrialisation. • Consolidation and aggregation of interventions is critical. • Critical skills - Farmer Entrepreneurial capacity to be enhanced. Local and international partnerships to be undertaken.
GDARD strategies supporting Agriparks • Gauteng Agricultural Development Strategy (GADS) • Extension Services • Agri-input support program (Letsema) • West Rand Agriculture Training Institute* • Biotechnology Strategy • Agro-processing Strategy • Household Food Security Program • Floriculture program
Thank you
40You can also read
