Operation Phakisa: Agriculture, Rural Development and Land Reform - Avi Africa 2018 M D Motiang & R Joemat

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Operation Phakisa: Agriculture, Rural Development and Land Reform - Avi Africa 2018 M D Motiang & R Joemat
Operation Phakisa: Agriculture, Rural
  Development and Land Reform
             Avi Africa 2018
         M D Motiang & R Joemat
                13 June 2018
Operation Phakisa: Agriculture, Rural Development and Land Reform - Avi Africa 2018 M D Motiang & R Joemat
• 2013, President Jacob Zuma during his visit to Malaysia in was introduced to
      the Big Fast Results Methodology
    • Malaysian government achieved significant government and economic
      transformation through this methodology
    • With the support of the Malaysian government, the Big Fast Results approach
      was adapted to the South African context under the name Operation Phakisa
      (“Phakisa” meaning “hurry up” in Sesotho)

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Operation Phakisa: Agriculture, Rural Development and Land Reform - Avi Africa 2018 M D Motiang & R Joemat
• Operation Phakisa is a result-driven approach, involving setting clear plans and
    targets, on-going monitoring of progress and making these results public
• The process focuses on bringing key stakeholders from the public and private
    sectors, to collaborate in detailed problem analysis, priority setting, intervention
    planning and delivery
• These collaboration sessions are called laboratories (labs)
• The results of the labs are detailed plans with ambitious targets as well as public
    commitment on the implementation of the plans by all stakeholders

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Operation Phakisa: Agriculture, Rural Development and Land Reform - Avi Africa 2018 M D Motiang & R Joemat
What is Operation Phakisa Methodology?
                                Lab Report
       NDP and 9PP (RAAVC) compels                                                   launched by
        us to review the development                                                  President,
                                                                                                              6
    How agenda
        far are we
                 forinAgriculture
                      implementing& the methodology?
                                     Land                                           February 2017
                      Reform                                                                                      Monitoring
                            2                     3                  4                      5                                  8
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                                                                                                 Set-up                           External
     Strategic                  Lab                   Launch             Open Day             institutional
                                                                                                              7                account-ability
     Direction                                                                               arrangements

                                                                                                                   Delivery

                                 Processes of the lab phase
                                      Pre-lab
                 Proposal                                      Lab          Post lab
                                      Scoping
                                                                                       •
                                                                       Appointed Champions per initiative
                                                                       (finalised)
                                                                     • Cabinet submission of Lab report
                            Inputs and comments                        (Approved by ESEID,18 Jan 2018) it
      Proposal used in a 6               5- week Lab ran from 26 Sept –
                        received was used to develop                   will return in the form of APAP2 by
       month consultation                      28 Oct 2016. with 161
                        the scoping document for the                   order of Cabinet)
        process (7, 2-day                     registered participants
                                     Lab                             • Open Day (Presidency still to respond
      workshops were held)                   developing 27 initiatives
                                                                       via DPME).

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Operation Phakisa: Agriculture, Rural Development and Land Reform - Avi Africa 2018 M D Motiang & R Joemat
Composition of the Participants
One hundred and sixty one registered participants, engaged in the five week lab

                                  Business                                                Government                                    Civil Society

                                                                                                                BAWSI

                                                               Agratech
                                                                trade

Deciduous Fruit Industry      Enterprise Evolution   Makolobane Farmers   AFRIWU                                             NAFUSA
  Development Trust           Technology Holdings        Enterprise

                           The participants were allocated to various work streams namely: Grains, Horticulture, Livestock, Producer Support,
                                    Land Reform, Rural Development and Labour; aligning their competencies and areas of expertise
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Operation Phakisa: Agriculture, Rural Development and Land Reform - Avi Africa 2018 M D Motiang & R Joemat
PHAKISA WORKSTREAM LEAD AND INITIATIVE WORK STREAM HEADS
                     GRAINS                                             HORTICULTURE                                              LIVESTOCK

1. Unlocking finance for grains through PPP (Dr      9. Unlocking water to expand horticultural production     20. Fortified veld management for sustainable
   Julian Jaftha)                                        (Ms Mary-Jean Gabriel)                                    livestock production (Ms Lydia Bosoga)
2. Integrated grain value chain (Dr Julian Jaftha)   10. Inclusive horticulture value chain participation      21. Enhanced animal health through revolutionary
3. Grain Know How (Ms Msaserame Macucwa)                 model Trade Promotion, Retention and Optimisation         veterinary services (Dr Modisane)
                                                         (Ms Phindiwe Dingile)                                 22. National livestock census, animal ID, &
                                                                                                                   traceability (Dr Modisane)
                                                                                                               23. Access to commercial and alternative livestock
                 LAND REFORM                                                                                       value chains (Mr M D Motiang)
                                                                    RURAL DEVELOPMENT
4. Financial partnerships for accelerated and
   sustainable Land Reform (Dr Swartz leads, Mr      12. Strategic leadership & coordination for structural
   Mbongwa)                                              transformation (Dr Sharmla leads, Mr S Mbambo, Mr
5. Fast tracking the settlement of outstanding           T Gwanya)                                                                 LABOUR
   restitution claims in a sustainable manner (Ms    13. Basic Services (Mr P Maluleka leads, Ms T Manzi, Mr
   C Benyane and Ms Z Phakedi)                           K Naidoo)                                             25. National Agricultural Decent Work Programme
6. Accelerated Land Development and                  14. Rural enterprise development (Dr Van Staden leads,        (Mr Bongani Mbali - CCMA)
   Redistribution Initiative (ALDRI) (Mr B Zulu          Mr Zantsi)                                            26. Strengthening legal compliance mechanisms
   leads, Mr Toolo)                                                                                                (Mr Richmond Ntuli - DoL)
7. Promoting and protecting rights of persons                                                                  27. Farm worker house and land ownership
   living under insecure tenure (Ms V Nxasana                        PRODUCER SUPPORT
                                                                                                                   programme (Mr Christo van der Rheede -
   leads, Mr Maanda Lukoto)                                                                                        AgriSA)
                                                     15. Re-engineering agricultural development finance
8. District Land Reform Delivery Centre (Mr Zulu
                                                         (Ms Elder Mtshiza)
   leads, Mr V Mngwengwe)
                                                     16. Dynamic Business Model for Producer Support (Ms
                                                         Elder Mtshiza)
                                                     17. Harmonization of legislation affecting the
                                                         agricultural value chain Mr Dipepenene Serage)
                                                     18. Ndimo Desk (Mr Bonga Msomi)
                                                     19. Demand led public/ private agri-skills unit (Mr
                                                         Mdupi Shabangu - AgriSETA)
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Operation Phakisa: Agriculture, Rural Development and Land Reform - Avi Africa 2018 M D Motiang & R Joemat
Access to Commercial and Alternative Livestock Value Chains (1 of 5)
                   Initiative Summary                                                      Solution Design
  Develop new customized business models                •   Unlock blockage in the current conventional integrated value chains that prohibit
                         &.                                 entry of new and small players
 Use preferential shelf space to improve access         •   Integrated value chain is needed where the value added margins in terms of
                       while                                both fresh produce sold into the formal market as well as fast-food restaurants
    Reducing feed and related input costs by                needs to be pulled back to small / farmers / agrarian small and medium
      establishing Black-owned companies                    enterprises.
                    Including                           •   Strengthening farmer organisations using cooperatives as catalyst
Agro-logistics access to land, water, infrastructure    •   Ensure true transformation aligning with priority programmes Agri-Parks, RAAVC
   and mechanization, research and innovation
                 support services                                                             Solution 1:
                                                        • Develop a new, enticing brand of fresh, healthy "RURAL FRESH"
                    Issues Addressed                    • Expand services by selling the fresh produce and prepared meals
                                                        • Integrated production, processing and retail businesses including feed mill, feedlots,
•    Low productivity of herd and flock due to low        abattoirs and processing; retail shops; container and mobile kitchen shops.
     livestock reproductive rates and high mortality
     limits competitive participation in value chains                                        Solution 2:
•    Inadequate participation and ownership of          •   Robust legislative review and enforcement
     Black entrepreneurs of input, production,               • Preferential shelf space in major retail chains for supplier development
     processing, logistics and retail value chains.          • State institutions compliance to procure from BBBEE SMME’s.
•    Dualistic livestock industry with commercial            • Small independent shops in rural areas and towns will receive incentives to
     sector supplying 75%-80% through vertically               stock from local small farmer livestock produce.
     integrated feedlots and small scale sector              • Accommodate technological enhancements to utilise waste products in
     mostly supplying informal sector                          animal feed production and manage treatment and recycling of water.
                                                             • Inclusive dialogue increase competitiveness.
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Operation Phakisa: Agriculture, Rural Development and Land Reform - Avi Africa 2018 M D Motiang & R Joemat
Advancing the NDP through poultry industry
TARGETS
                                                        Production     Production      Income
                              Per Cap.      Consumption
              S.A. Pop'n                                (%) by SHF's   (kg) by SHF's   by SHF's                Direct Jobs     Indirect Jobs
                              Cons. (kg)    kg('000)
                                                        ('000)         ('000)          ('000)
Redmeat
2016               54,900,000 19                 1,043,100 5%                  52,155 R            4,015,935          70,000            43,800
2021               56,600,000 21                 1,188,600 20%                237,720 R           18,304,440         101,500            88,600
2030               60,034,000 23                 1,380,782 30%                414,235 R           41,423,460         184,500           113,800
Poultry
2016               54,900,000 42                 2,305,800 7%                 161,406 R           12,428,262          48,000            63,000
2021               56,600,000 45                 2,547,000 20%                509,400 R           22,413,600          66,700            80,000
2030               60,034,000 50                 3,001,700 30%                900,510 R           46,826,520         104,400           120,000
Pork
2016               54,900,000 4.6                  254,736 5%                  12,737 R              980,734           4,000             6,000
2021               56,600,000 5.7                  322,620 20%                 64,524 R            2,839,056           5,200             7,800
2030               60,034,000 7                    420,238 30%                126,071 R            6,555,713           6,760            10,140
Game meat
2016          Very limited exports                                            150,000 R            5,700,000         135,000             5,000
2021          Volume & Export development!                                    168,500 R           19,040,500         140,500             7,590
2030          Volume & Export development!                                    206,000 R           23,690,000         146,000            10,180
Wool
2016          Volume & Export development!                                      4,000 R              233,000          24,000             3,000
2021          Volume & Export development!                                      8,700 R              662,496          27,000             5,400
2030          Volume & Export development!                                     15,000 R            1,236,000          28,000            11,000

Saving in stock losses if robust schemes are implemented to curb:
Stock theft: R1.25Bn p.a. by 2021 and R2,5Bn p.a. by 2030
Predation: R1Bn p.a. by 2021 and R2Bn p.a. by 2030
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Inclusive growth path

      • Integration of smallholder farmers in value
        chain
      • 30% of egg industry grandparent = 2 670
      • 30% of layer breeding hens = 98 100
      • 30% of broiler grandparent = 72 600
      • 30% of broiler breeding hens = 2 137 800

                                                                  Broiler industryle
                Egg industry
                                                      Breeding hens
    Breeding hens

     Grandparent                                       Grandparent

                    0     100 200 300 400
                                                                      0     2000 4000 6000 8000
                    30%    Industry
                                                                          30%   Industry
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Inclusive growth path

    • Integration of smallholder farmers in value chain
        • 30% laying hens = 720 000
        • 30% of 21 million egg cases = 7 million cases
        • 30% of feed used by egg industry = 352 000 tons
        • 30% of broiler production = 300 million birds
        • 30% of feed used by broiler industry = 900 000 tons
    • How much land will be required to support this expansion?
        • 56 000-126 000ha of yellow for broiler?
        • 70 000-164 000ha of yellow maze for egg production?

                Broiler industry                                       Egg industry

    30% Share                                         30% Share

     Industry                                           Industry

                0      2000000     4000000                         0       1000   2000       3000

        Feed requirements    Broiler prod                    Feed requirements        Layer prod
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Where are we?
 • Poultry products make significant contribution to GDP from
   animal products
    • Poultry meat is the highest contributor
    • Egg industry is the fourth contributor after beef and milk
 • What is the contribution of smallholder producers?
    • Smallholder broiler producers contribution = 3.8%/ 64k
      tons out of 935 million birds = 35.5 million birds

                                  Broiler production

                Smallholder

               Commercial

10
                              0    500 000 1 000 000 1 500 000 2 000 000
Initiatives to facilitate transformation in livestock sector

     1. Livestock Skills and Knowledge Upgrading
        Programme

     2. Access to Commercial and Alternative Livestock
        Value Chains

     3. National Livestock Census and an Animal
        Identification and Traceability Programme

     4. Enhanced Animal Health through Revolutionary
        Veterinary Services

     5. Fortified Veld Management for Sustainable Livestock
        Production

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Improving access to poultry value chains?

•    Smallholder producers incur high input costs
•    Options to improve economies of scale
      •   Strengthening farmer organisations
      •   Establish local input distribution centres
      •   How to collaborate with private sector
      •   How to use available resources to leverage more support

                                                       Finisher

                                                       Grower

                                                        Starter

                                                                  0   2000     4000    6000      8000
                                                              Bulk    Wholesale bags   Retail bags
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Improving access to poultry value chains?
     • Targeted access to value chains
        • Feed manufacture and distribution
        • Establishment of new parent stock producers

     • Integrating all production systems into value chain
         • Access to agro-processing facilities
         • Improved market access
         • Improved bio-security, product traceability, animal health and quality standards

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Thank you
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