RED MEAT SUB-SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA

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RED MEAT SUB-SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA
RED MEAT SUB-SECTOR SKILLS PLAN
          2018-2019
 Prepared on behalf of the Sector by AgriSETA

                   April 2018
RED MEAT SUB-SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA
ABBREVIATIONS AND ACRONYMS

  ABBREVIATION/ACRONYM                                 DESCRIPTION
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
CoS                      Centres of Specialization
DAFF                     Department of Agriculture, Fisheries and Forestry
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
HTFV                     Hard To Fill Vacancies
IGDP                     Integrated Growth Development Plan
IDP                      Integrated Development Plan
IPAP                     Industrial Policy Action Plan
IRR                      Institute of Race relations
KZN                      KwaZulu-Natal
NAFU                     National African Farmers Union
NAMC                     National Agricultural Marketing Council
NDP                      National Development Plan
NERPO                    National Emergent Red Meat Producers Organization
NGP                      New Growth Path

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RED MEAT SUB-SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA
NEETS      Not in Employment, Education or Training
NSDS III   National Skills Development Strategy III
NSFAS      National Students Financial Aid Scheme
QLFS       Quarterly Labour Force Survey
QCTO       Quality Council for Trade and Occupations
RMSA       Red Meat Association of South Africa
RPL        Recognition of Prior Learning
SARMA      South African Red Meat Association
SACAU      Southern African Confederation of African Unions
SADC       Southern African Development Community
SAIVCET    South African Institute for Vocational Continuing Education and
           Training
SAQA       South African Qualifications Authority
SARS       South African Revenue Service
SDA        Skills Development Act
SIC        Standard Integrated Project
SIP        Standard Industrial Classification
SSP        Sector Skills Plan
SIZA       Sustainability Initiative of South Africa
STATSSA    Statistics South Africa
TVET       Technical Vocational Education and Training
WCTA       Western Cape Trout Association
WSP        Workplace Skills Plan
WTO        World Trade Organization

                                                                             ii
RED MEAT SUB-SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA
TABLE OF CONTENTS
ABBREVIATIONS AND ACRONYMS ..................................................................................................................................................... i
TABLE OF CONTENTS ........................................................................................................................................................................ ii
LIST OF TABLES AND FIGURES .......................................................................................................................................................... iv
EXECUTIVE SUMMARY ...................................................................................................................................................................... v
1. DOCUMENT REVIEW ……………………………………………………………………………………………………………………………………………………………….vi

2. SCARCE AND PIVOTAL LIST FORMULATION ……………………………………………………………………………………………………………………………vii

3. SUMMARY OF KEY FINDINGS ………………………………………………………………………………………………………………………………………………..vii

CHAPTER 1: SECTOR PROFILE............................................................................................................................................................ 1
    1.1           INTRODUCTION ............................................................................................................................................................. 1
    1.2           SCOPE OF COVERAGE .................................................................................................................................................... 2
    1.3           KEY ROLE PLAYERS ......................................................................................................................................................... 4
    1.4           ECONOMIC PERFORMANCE........................................................................................................................................... 6
    1.5           EMPLOYER PROFILE ..................................................................................................................................................... 10
    1.6           LABOUR MARKET PROFILE........................................................................................................................................... 11
    1.7           CONCLUSION ............................................................................................................................................................... 15
CHAPTER 2: KEY SKILLS ISSUES ........................................................................................................................................................ 16
    2.1           INTRODUCTION ........................................................................................................................................................... 16
    2.2           CHANGE DRIVERS ........................................................................................................................................................ 16
    2.3           ALIGNMENT WITH NATIONAL STRATEGIES AND PLANS .............................................................................................. 17
    2.4           IMPLICATIONS FOR SKILLS PLANNING ......................................................................................................................... 18
    2.5           CONCLUSION ............................................................................................................................................................... 18
CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS .......................................................................................................... 19
    3.1           INTRODUCTION ........................................................................................................................................................... 19
    3.2           OCCUPATONAL SHORTAGES AND SKILLS GAPS ........................................................................................................... 20
    3.3           EXTENT AND NATURE OF SUPPLY ................................................................................................................................ 23
    3.4           PIVOTAL LIST................................................................................................................................................................ 25
    3.5           CONCLUSION ............................................................................................................................................................... 28
CHAPTER 4: SECTOR PARTNERSHIPS ............................................................................................................................................... 29
    4.1           INTRODUCTION ........................................................................................................................................................... 29
    4.2           EXISTING PARTNERSHIPS ............................................................................................................................................. 30
    4.3           EMERGING PARTNERSHIPS .......................................................................................................................................... 31
    4.4           CONCLUSIONS ............................................................................................................................................................. 32
CHAPTER 5: SKILLS PRIORITY ACTIONS ........................................................................................................................................... 33
    5.1           INTRODUCTION ........................................................................................................................................................... 33
    5.2           KEY FINDINGS .............................................................................................................................................................. 34
    5.3           CONCLUSION AND RECOMMENDED ACTIONS ............................................................................................................ 35
BIBLIOGRAPHY ................................................................................................................................................................................ 36

                                                                                                                                                                                              iii
RED MEAT SUB-SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA
LIST OF TABLES AND FIGURES

FIGURES

FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR ....................................................... 3
FIGURE 2: RED MEAT VALUE CHAIN ............................................................................................................. 3
FIGURE 3: SKILLS DEVELOPMENT LEVIES ...................................................................................................... 4
FIGURE 4: GROSS FARMING SECTOR INCOME .............................................................................................. 8
FIGURE 5: PROVINCIAL DISTRIBUTION OF RED MEAT EMPLOYERS REGISTERED WITH AGRISETA ............ 11
FIGURE 6: PROVINCIAL BREAKDOWN – RED MEAT EMPLOYEES ................................................................ 12
FIGURE 7: GENDER BREAKDOWN ............................................................................................................... 13
FIGURE 8: EMPLOYEES BY RACE .................................................................................................................. 13
FIGURE 9: EMPLOYMENT BREAKDOWN WITHIN THE RED MEAT SUBSECTOR .......................................... 14
FIGURE 10: UNIVERSITIES THROUGHPUT FOR AGRICULTURAL STUDENTS GRADUATING IN 2013-2014 .. 23
FIGURE 11: NUMBER OF POST-SCHOOL GRADUATES IN AGRICULTURAL SECTOR .................................... 24

TABLES

TABLE 1: RESEARCH PROCESS AND METHODS ............................................................................................ vi
TABLE 2: ACTIVITIES WITHIN THE RED MEAT SUBSECTOR BY SIC CODE ...................................................... 2
TABLE 3: KEY AGRICULTURAL ROLE-PLAYERS ............................................................................................... 4
TABLE 4: LIVESTOCK STATISTICS 2016 .......................................................................................................... 7
TABLE 5: MEAT AND EDIBLE OFFAL IMPORTED AND EXPORTED, 2012-2016 .............................................. 8
TABLE 6: LIVE ANIMALS IMPORTED AND EXPORTED, 2012-2016 ................................................................ 9
TABLE 7: DAIRY PRODUCTS IMPORTED AND EXPORTED, 2012-2016 ........................................................... 9
TABLE 8: DISTRIBUTION ON EMPLOYEES BY PROVINVE IN AGRICULTURE, 2016/2017 ............................. 11
TABLE 9: SMALL EMERGING FARMERS AND CO-OPERATIVES HTFVS......................................................... 20
TABLE 10: COMMERCIAL FARMERS HTFVs ................................................................................................. 20
TABLE 11: TOP HTFVs (STAKEHOLDER ENGAGEMENT)............................................................................... 21
TABLE 12: TOP EMERGING SUBSECTOR SKILLS AND FUTURE OCCUPATIONAL SHORTAGES ..................... 21
TABLE 13: SCARCE SKILLS AND SKILLS GAPS LIST ........................................................................................ 22
TABLE 14: EMPLOYEE TRAINED BY OCCUPATIONAL CATEGORY AND GENDER.......................................... 24
TABLE 15: THE AGRISETA 2018/19 PIVOTAL LIST ....................................................................................... 25
TABLE 16: AGRISETA PARTNERSHIPS .......................................................................................................... 30

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RED MEAT SUB-SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA
EXECUTIVE SUMMARY

The South African Red meat sub-sector is considered dualistic in nature; meaning that there is a clear
distinction between commercial and smallholder sectors (informal/communal) sector. The informal sector
is further divided into two sub-sectors, which includes, small scale subsistence producers and emerging
producers (Cloete, 2013). Something unique to the African continent is that typically small scale
subsistence producers tend to keep livestock for either as some form of social standing or as an
investment.

In 2016 South Africa produced approximately 20% of the total meat produced on the continent of Africa,
and accounted for 1% of global meat production. In addition, the livestock industry contributes 34% of
the total domestic agricultural production and provided 36% of the population’s protein needs in 2016
(RMD SA, 2016). While there is a lack of statistics that covers the scope of the South African Red Meat
subsector, the tables below outline the import and export statistics on Meat and Edible Meat Offal, Live
Animals (excluding Poultry), and Dairy Products between 2012 and 2016.

Owing to the International Animal Health Organization declaring South Africa free of foot and mouth,
there has been an overall increase in the Red Meat sub-sector export market since 2014. The declaration
has allowed South Africa access to a number of export markets to countries such as Vietnam, the United
Arab Emirates and Jordan from the second quarter of 2014 onwards (BFAP, 2016).

Similar to other agricultural sub-sectors the recent draught has affected areas involved in cattle, sheep
and goat farming significantly. Approximately 590 000km2 has been negatively affected, which has
resulted in pockets of livestock mortality in provinces such as the Eastern Cape, while poor livestock
conditions were also recorded in the Free State (DAFF, 2016).

In additional factor limiting the sub-sector is the lack of appropriate infrastructure, poor access to usable
technical market information and well-functioning marketing and credit systems for commercializing the
emerging Red Meat sub-sector. Commercializing the emerging Red Meat sector would address these
constraints and ensure that farmers produce efficiently (RMD SA, 2016).

With that said, the Red Meat sub-sector is one of the best growing components of the agricultural
economy. Overall, the sector contributes approximately 40% of global value of agricultural output and
supports the livelihoods and food security of almost a billion people globally (SAIIA, 2014). In addition to
this, growing income levels and continued urbanization in South Africa has increased meat consumption
over the past decade. Changing lifestyles and the diets of the emerging middle class have changed to
incorporate animal proteins. Therefore, the industry is well placed grow, and in the process contribute to
the wider economic development of South Africa, both in production and provision of employment in
more rural population of the country (RMD SA, 2016).

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TABLE 1: RESEARCH PROCESS AND METHODS

                    OBJECTIVES                                                         DATA         TIMEFRAME      RESEARCH
   RESEARCH                           RESEARCH      NATURE OF
                      OF THE                                        SAMPLE SIZE     COLLECTION        OF THE       OUTPUTS
    TOPICS                            METHODS       THE STUDY
                       STUDY                                                           TOOLS           STUDY
    Labour           Provide an      Qualitative      Analysis of        200       Desktop          September –   Chapter 1:
    Market          overview of         and         most recent      registered    research          November     Sector Profile
  Profile and      the subsector     quantitative    information      Red Meat     (secondary)          2017
  Economic         and economic        method       on the sector      industry
 Contribution       contribution                                    stakeholders   2016/17
                                                                                   WSP/ATR
                                                                                   data
                                                                                   (primary)

                                                                                   2016/17
                                                                                   Huge file data
                                                                                      (primary)
 Occupational      Establish         Qualitative    Non-            200            Key informant    September –   Chapter 2:
 shortages &       occupational      method         probability     registered     interviews       November      Key Skills
 emerging          shortages &                      sampling        Red Meat       (primary) &      2017          Issues
 skills needs      emerging                         method was      industry       desktop data
                   skills needs of                  employed to     stakeholders   analysis                       Chapter 4:
                   the Red Meat                     identify                       (secondary)                    Sector
                   subsector                        stakeholders                                                  Partnerships
                                                    from whom
                                                    specific                                                      Chapter 5:
                                                    information                                                   Skills Priority
                                                    was required                                                  Actions
 Skills issues &   Identify key      Quantitative   Gathering       20% were       The              September –   Chapter 2:
 demands           occupational      method         empirical       small and      quantitative     November      Key Skills
                   shortages,                       evidence        emerging       survey           2017          Issues
                   demands &                        using primary   farmers and    gathered data
                   supply with                      data sources,   80% were       on the                         Chapter 3:
                   regard to                        as well as      commercial     unskilled,                     Occupational
                   unskilled,                       undertaking     farmers        skilled and                    Shortages
                   skilled,                         theoretical,                   generic                        and Skills
                   generic Red                      desktop                        occupational                   Gaps
                   Meat                             research                       shortages &
                   subsector                        using                          skills gaps
                   occupations                      secondary
                   and emerging                     data sources
                   skills needs in
                   the
                   agricultural
                   sector

    1. DOCUMENT REVIEW

A document review was conducted to establish the economic performance and trends of the Red
Meat subsector, geographic concentration and employers. Government policy and strategy
documents, as well as the key statistical and industry publications were reviewed and these are

                                                                                                             vi
included in the bibliography. A thematic analysis was conducted to synthesize the key economic,
policy and training issues affecting the Red Meat subsector, and to identify key skills issues.
    2. SCARCE AND PIVOTAL LIST FORMULATION

The scarce skills, skills gaps and pivotal skills lists were arrived at through both secondary data analysis
and the numbers made available in previous Sector Skills Plans, large and small workplace skills plans
(WSPs), large and small annual training reports, (ATRs), and primary data analysis obtained at the
two-day AgriSETA stakeholder conference (30-31 August 2017), interviews and data collection.

    3. SUMMARY OF KEY FINDINGS

Overall the Red Meat subsector supply chain has become increasingly vertically integrated. The
integration is mainly fuelled by the feedlot industry, where most of the large feedlots own their own
abattoirs, or at least have some business interest in certain abattoirs. The South African Red Meat sub-
sector is considered dualistic in nature; meaning that there is a clear distinction between commercial and
smallholder (informal/communal) sectors. The informal sector is further divided into two sub-sectors,
which include, small-scale subsistence producers and emerging producers (Cloete, 2013). There is a total
of 8990 Red Meat subsector entities registered with the South African Revenue Services (SARS),
contributing 42% of total entities in the agricultural sector.

The AgriSETA members’ data base includes some 21 429 employers, 8990 (42%) of which are from the
Red Meat subsector. The data shows that the vast majority of registered Red Meat entities (92%) are small
(1-49 employees, followed by 6% medium (50-149) and 2% large entities (more than 149 employees).

                                                                                                         vii
CHAPTER 1: SECTOR PROFILE

    1.1 INTRODUCTION
Chapter 1 of this report provides an overview of the agricultural sector, paying particular attention to the
Red Meat subsector in South Africa. The first section of this chapter looks at the scope of the Red Meat
subsector’s coverage. Followed by the second section, which outlines AgriSETA stakeholders and key role-
players in the sector. The third section looks at the economic performance of the overall agricultural
sector, zooming into the contribution of the Red Meat industry to the South African economy. The fourth
section explores the employer profile, based on the AgriSETA WSP/ATR data submitted for 2016. Finally,
the last section provides a labour market profile where the number and demographics of people
employed in the sector is explored. Essentially, chapter one of this document is intended to set the scene
for the skills issues delved into in the subsequent chapters.

                                                                                                          1
1.2 SCOPE OF COVERAGE
The scope of AgriSETA covers the agricultural sector, from input services to the farm, activities on the farm
and first level processing activities from the farm. The Red Meat subsector is classified into twelve (12)
agricultural and economic focuses, namely: production and animal products; farming of cattle, sheep,
goats, horses, asses, mules, and hinnies; dairy farming; game farming; growing of crops combined with
farming animals; agricultural and animal husbandry services; other animal farming; slaughtering, dressing
and packing of livestock; production, sale and marketing of agricultural by products; slaughtering, dressing
and packing of livestock, including small game for meat and processing of ostrich products; wholesale
trade in agricultural raw materials and livestock; transport of livestock as supporting activity; and
agricultural livestock research. The table below outlines the various agricultural and economic focus areas
in the Red Meat subsector, including the Standard Industrial Classification (SIC) codes and descriptions:
TABLE 2: ACTIVITIES WITHIN THE RED MEAT SUBSECTOR BY SIC CODE

     SUBSECTOR             SIC CODE                                SIC DESCRIPTION
                             11141      Production and animal products (not elsewhere classified)
                                        Farming of cattle, sheep, goats, horses, asses, mules, and hinnies;
                            11210
                                        Dairy farming.
                            11222       Game farming
                                        Growing of crops combined with farming of animals (Mixed
                            11300
                                        farming)
                                        Agricultural and animal husbandry services, except veterinary
                            11400
                                        activities
     RED MEAT
                            11402       Other animal farming (not elsewhere classified)
                                        Slaughtering, dressing and packing of livestock, including poultry and small
                            30111
                                        game for meat.
                                        Production, sale & marketing of Agricultural by products (e.g.
                            30115
                                        bones, hides)
                                        Slaughtering, dressing and packing of livestock, including small
                            30117       game for meat and
                                        processing of ostrich products
                                                                                                 Source: AgriSETA, 2016

Overall, the agricultural sector comprises of 11 subsector committees, which represent their industry
interest to AgriSETA. These include: 1) Aquaculture; 2) Horticulture; 3) Red Meats and Cereals; 4) Fibre; 5)
Red Meat; 6) Poultry; 7) Milling, Pet food, and Animal feed; 8) Pest control; 9) Seed; 10) Sugar; 11)
Tobacco. The Red Meat subsector constitutes 45% of the overall distribution of entities represented by
AgriSETA. The graph below outlines the relative size of membership number by subsectors, as captured
in the AgriSETA member database of 2016.

                                                                                                                     2
FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR

                                                                                   Red meat (45%)

                                                                                   Horticulture (24%)

                                                                                   Grains and Cereals
                                                                                   (10%)
                                                                                   Fibre (9%)

                                                                                   Aquaculture (5%)

                                                                                   Poultry (2%)

                                                                                   Milling, Petfood,
                                                                                   Animal Feed (2%)
                                                                                   Pest control (1%)

                                                                                   Seed (1%)

                                                                    Source: AgriSETA member database, 2016

The figure below depicts the Red Meat value chain. The main components of the value chain include
primary producers, feedlots, abattoirs, wholesalers and retailers. The Red Meat supply chain has become
increasingly vertically integrated. The integration is mainly fuelled by the feedlot industry, where most of
the large feedlots own their own abattoirs, or at least have some business interest in certain abattoirs. In
addition to this, some feedlots have integrated further down the value chain and sell directly to consumers
through their own retail outlets (FPM Report, 2004).
FIGURE 2: RED MEAT VALUE CHAIN

                                                                                 Source: FPM Report, 2004

                                                                                                          3
1.2.1 Revenue from Skills Development Levies
In 2016/17, there was a total of 8990 Red Meat subsector entities registered with the South African
Revenue Services (SARS), contributing 42% of total entities in the agricultural sector. Of these 8990 entities
the figure below illustrates that 29% of them contribute to the skills development levy. A total of R87
million SDL was generated from the Red Meat subsector, accounting for 20% of total agricultural revenue
from SDL.
 FIGURE 3: SKILLS DEVELOPMENT LEVIES

                      7000

                      6000

                      5000
          NUMBER

                      4000

                      3000

                      2000

                      1000

                          0
                                       Levy-paying                           Non-levy paying
                   Number                 2601                                    6389
                   Percentage             29%                                     71%

                                                                      Source: AgriSETA members’ database, 2016

     1.3 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.
 TABLE 3: 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 and        Department of Higher            colleges and skills development. Sets the
   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.

                                                                                                                   4
Department or                  Relevance to agricultural skills
Strategic contribution
                         organisation                   development
                         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 and    Reform
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
                         Development Bank of South
                                                        sector, agribusiness, and emerging farmers.
                         Africa
Credit and assistance
                         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 and Sector
                         Union of South Africa (NAFU)   field in all agricultural matters.
representatives
                         The African Farmers’           Represents commercial African farmers to
                         Association of South Africa    bring black commercial farmers into
                         (AFASA)                        mainstream agribusiness.

                                                                                                           5
Department or                   Relevance to agricultural skills
 Strategic contribution
                               organisation                    development
                               Transvaal Agricultural Union    A             national            agricultural
                               South Africa (TAU SA)           union serving commercial farmers.
                               Food and Allied Workers         Organize all workers engaged in Food Industry
                               Union (FAWU)                    in South Africa.
                                                               Fosters    a       favorable       agribusiness
                               Agricultural Business Chamber
                                                               environment.
                                                             Conglomerate       organization     providing
 Agribusiness
                                                             commodity strategic support and services to
                               Red Meat SA
                                                             South African Red Meat producers to support
                                                             sustainability.
                                         Source: 2015 GCIS Handbook, Agriculture and AgriSETA SSP 2011-2016

    1.4 ECONOMIC PERFORMANCE
1.4.1 Overview
The South African Red Meat subsector is considered dualistic in nature; meaning that there is a clear
distinction between commercial and smallholder sectors (informal/communal) sector. The informal sector
is further divided into two subsectors, which includes, small scale subsistence producers and emerging
producers (Cloete, 2013). Something unique to the African continent is that typically small scale
subsistence producers tend to keep livestock for either as some form of social standing or as an
investment.

Nonetheless, approximately 59 million hectares of South Africa has been reported as suitable for
extensive livestock farming. On account of this, the Integrated Sustainable Rural Development Strategy
(IRSDS, 2004) has identified livestock farming as the agricultural enterprise with the most likely chance of
improving household food security and addressing poverty alleviation in the small-scale communal
farming areas of South Africa (RMRD SA, 2016).

The table below outlines the livestock statistics across all nine provinces in South Africa. DAFF reported a
total of 43 259 million cattle, sheep, pigs and goats across the country. Overall, the province with the
highest proportion of livestock was the Eastern Cape (28%), followed by the Northern Cape and Free State
respectively accounting for 16% of total livestock in the country. An in-depth look at the data shows that,
the Eastern Cape accounts for 25% of cattle livestock, followed by KwaZulu-Natal (19%). Likewise, the
Eastern Cape accounts for 29% of sheep and the Northern Cape (35%); Limpopo makes up 24% of pig
livestock, followed by North West (21%); and the Eastern Cape has the highest proportion of goats (38%),
followed by Limpopo (18%).

                                                                                                                 6
TABLE 4: LIVESTOCK STATISTICS 2016

                                                            CATTLE
         WESTERN     NORTHERN      FREE       EASTERN    KWAZULU-                                            NORTH
                                                                   MPUMALANGA        LIMPOPO    GAUTENG                        RSA
          CAPE         CAPE       STATE         CAPE      NATAL                                              WEST
  %        4%           4%         17%        25%100       19%        10%               7%         2%         12%             100%
NUMBER    528,074     501,407    2,220,133   3,221,505   2,517,724     1,313,321     979,596     246,135    1,618,238       13,146,133
                                                            SHEEP
         WESTERN     NORTHERN      FREE       EASTERN    KWAZULU-                                            NORTH
                                                                     MPUMALANGA      LIMPOPO    GAUTENG                        RSA
          CAPE         CAPE       STATE         CAPE      NATAL                                              WEST
  %        12%         25%         20%          29%        3%             7%            1%         0%         3%              100%
NUMBER   2,709,305   5,716,352   4,536,177   6,815,132    720,664      1,675,296     226,681     89,783     618,950         23,108,340
                                                             PIGS
         WESTERN     NORTHERN      FREE       EASTERN    KWAZULU-                                            NORTH
                                                                     MPUMALANGA      LIMPOPO    GAUTENG                        RSA
          CAPE         CAPE       STATE         CAPE      NATAL                                              WEST
  %        11%          2%          8%           6%        10%            8%           24%         10%        21%             100%
NUMBER    164,384     23,873     119,063      88,743      150,368      117,908       356,122     154,099    315,792         1,490,352
                                                            GOATS
         WESTERN     NORTHERN      FREE       EASTERN    KWAZULU-                                            NORTH
                                                                     MPUMALANGA      LIMPOPO    GAUTENG                        RSA
          CAPE         CAPE       STATE         CAPE      NATAL                                              WEST
  %        4%           9%          4%          38%        13%            1%           18%         1%         12%             100%
NUMBER    209,936     489,044    229,741     2,121,771    705,169       65,771       983,864     29,826     679,811         5,514,933
                                                                                                 Source: DAFF, 2017

         Overall, Agriculture contributes 2. 4% to South Africa’s gross domestic product (GDP) and 4.4% of total
         employment (IRR, 2016). Notwithstanding the relatively small share of the total GDP, primary agriculture
         is an important sector in the South African economy; the value of primary agricultural production in South
         Africa was R263 billion in 2016, while its contribution to the GDP was estimated at 72 billion in 2015 (DAFF,
         2016). In addition, the sector plays an important role in job creation, especially in the more rural parts of
         the country.

         One of the key factors underlying consumer trends has been the growth of disposable income in South
         Africa. This is reflected in the increase of Red Meat product consumption over the last couple of years.
         The gross farming income from all agricultural products increased by 12.7% in 2016 from R230 million in
         2015 to R260 million. This is on account of the increase in gross income from horticulture products by
         21%, field crops by 11% and animal products by 9% (from R113 705 million to R123 559 million). Prices of
         animal products increased by 6% due to the increase in prices of pastoral products by 25%, slaughtered
         stock by 9% and milk by 8%. The graph below outlines the gross value contribution of agricultural
         production from 2012 to 2016. Overall, animal products contributed 47% to the total gross value of
         agricultural production in 2016. The gross income from animal products was 9% higher in 2016 and
         amounted to R123 559 million compared to R113 705 million in the previous year (DAFF, 2016).

                                                                                                                        7
FIGURE 4: GROSS FARMING SECTOR INCOME

                                               Source: Economic Review of the South African Agriculture, DAFF, 2016

    In 2016 South Africa produced approximately 20% of the total meat produced on the continent of Africa,
    and accounted for 1% of global meat production. In addition, the livestock industry contributes 34% of
    the total domestic agricultural production and provided 36% of the population’s protein needs in 2016
    (RMD SA, 2016). While there is a lack of statistics that covers the scope of the South African Red Meat
    subsector, the tables below outline the import and export statistics on Meat and Edible Meat Offal, Live
    Animals (excluding Poultry), and Dairy Products between 2012 and 2016.

    TABLE 5: MEAT AND EDIBLE OFFAL IMPORTED AND EXPORTED, 2012-2016

                        MEAT AND EDIBLE MEAT OFFAL IMPORTED BY SOUTH AFRICA
                     IMPORTED           IMPORTED               IMPORTED             IMPORTED             IMPORTED
  EXPORTERS
                    VALUE IN 2012      VALUE IN 2013          VALUE IN 2014        VALUE IN 2015        VALUE IN 2016

WORLD                 R6 090 848            R6 134 429          R6 102 101           R5 699 945           R7 781 336

                        MEAT AND EDIBLE MEAT OFFAL EXPORTED BY SOUTH AFRICA

                     EXPORTED           EXPORTED               EXPORTED             EXPORTED             EXPORTED
  IMPORTERS
                    VALUE IN 2012      VALUE IN 2013          VALUE IN 2014        VALUE IN 2015        VALUE IN 2016

WORLD                 R1 488 179            R1 763 330          R2 759 383           R3 209 127           R4 116 848

                                                                                        Source: Trade Map, 2017

    The table above illustrates the Meat and Edible Meat Offal imported and exported by South Africa in the
    last five years. The data shows that imports increased by R2 081 million in 2016, from R5 699 million in
    2015 to R7 781 million in 2016. While exports have increased significantly from 2012 (R1 488 million) to
    R4 116 million in 2016, with an aggregate increase of R2 628 million.

                                                                                                                 8
TABLE 6: LIVE ANIMALS IMPORTED AND EXPORTED, 2012-2016

                                   LIVE ANIMALS EXPORTED BY SOUTH AFRICA
                        IMPORTED          IMPORTED        IMPORTED        IMPORTED                        IMPORTED
  EXPORTERS
                       VALUE IN 2012     VALUE IN 2013  VALUE IN 2014    VALUE IN 2015                   VALUE IN 2016
WORLD                    R862 419         R1 124 402       R822 298       R1 284 120                      R1 372 586

                                       LIVE ANIMALS IMPORTED BY SOUTH AFRICA

                        EXPORTED             EXPORTED            EXPORTED            EXPORTED             EXPORTED
  IMPORTERS
                       VALUE IN 2012        VALUE IN 2013       VALUE IN 2014       VALUE IN 2015        VALUE IN 2016

WORLD                     R346 556            R377 076             R510 720            R712 055             R807 597

                                                                                        Source: Trade Map, 2017

        Similarly, the table above outlines the import and export value of Live Animals (excluding poultry) market
        in South Africa. The data shows that there has been not been much of an increase in numbers between
        2015 and 2016. However exports have increased by R461 041 from 2012 to 2016. Meanwhile, the table
        below outlines the import and export value of Dairy products. Data shows that there has been a slight
        increase in both imports and exports of Dairy products from 2016 to 2016, with imports accounted for R1
        572 million in 2016 and exports R2 627 million in the same year.

        TABLE 7: DAIRY PRODUCTS IMPORTED AND EXPORTED, 2012-2016

                                     DAIRY PRODUCTS IMPORTED BY SOUTH AFRICA
                         IMPORTED            IMPORTED            IMPORTED            IMPORTED            IMPORTED
   EXPORTERS
                        VALUE IN 2012       VALUE IN 2013       VALUE IN 2014       VALUE IN 2015       VALUE IN 2016
 WORLD                   R1 213 384           R896 603           R1 271 762          R1 279 491          R1 572 548

                                     DAIRY PRODUCTS EXPORTED BY SOUTH AFRICA

                         EXPORTED            EXPORTED            EXPORTED            EXPORTED            EXPORTED
   IMPORTERS
                        VALUE IN 2012       VALUE IN 2013       VALUE IN 2014       VALUE IN 2015       VALUE IN 2016

 WORLD                    R1 903 272          R2 367 610          R2 720 213          R2 366 770          R2 627 824

                                                                                        Source: Trade Map, 2017

        Owing to the International Animal Health Organization declaring South Africa free of foot and mouth,
        there has been an overall increase in the Red Meat subsector export market since 2014. The declaration
        has allowed South Africa access to a number of export markets to countries such as Vietnam, the United
        Arab Emirates and Jordan from the second quarter of 2014 onwards (BFAP, 2016).

                                                                                                                9
1.4.2 Economic Outlook of the Sub-sector
Similar to other agricultural subsectors the recent draught has affected areas involved in cattle, sheep and
goat farming significantly. Approximately 590 000km2 has been negatively affected, which has resulted
in pockets of livestock mortality in provinces such as the Eastern Cape, while poor livestock conditions
were also recorded in the Free State (DAFF, 2016).

An additional factor limiting the subsector is the lack of appropriate infrastructure, poor access to usable
technical market information and well-functioning marketing and credit systems for commercializing the
emerging Red Meat subsector. Commercializing the emerging Red Meat subsector would address these
constraints and ensure that farmers produce efficiently (RMD SA, 2016).

With that said, the Red Meat subsector is one of the best growing components of the agricultural
economy. Overall, the subsector contributes approximately 40% of global value of agricultural output and
supports the livelihoods and food security of almost a billion people globally (SAIIA, 2014). In addition to
this, growing income levels and continued urbanization in South Africa has increased meat consumption
over the past decade. Changing lifestyles and the diets of the emerging middle class have changed to
incorporate animal proteins. Therefore, the industry is well placed grow, and in the process contribute to
the wider economic development of South Africa, both in production and provision of employment in
more rural population of the country (RMD SA, 2016).

    1.5 EMPLOYER PROFILE
The AgriSETA members’ database includes some 21 429 employers, 8990 (42%) of which are from the Red
Meat subsector. The data shows that the vast majority of registered Red Meat entities (92%) are small (1-
49 employees), followed by 6% medium (50-149 employees) and 2% large entities (more than 149
employees).

The provincial distribution of Red Meat employers registered with AgriSETA is reflected in the pie chart
below, with provincial distribution by employer size in figure 5.

                                                                                                         10
FIGURE 5: PROVINCIAL DISTRIBUTION OF RED MEAT EMPLOYERS REGISTERED WITH AGRISETA

                                                      Eastern Cape
                                                          10%
                    Western Cape
                        22%                                                                Eastern Cape
                                                                                           Free State
                                                                     Free State
                                                                        11%                Gauteng
                                                                                           KwaZulu-Natal
                                                                                           Limpopo
            Northern Cape
                 10%                                                   Gauteng             Mpumalanga
                                                                        11%                North West
                  North West                                                               Northern Cape
                      5%
                                                              KwaZulu-Natal                Western Cape
                                                                  13%
                               Mpumalanga
                                  15%          Limpopo
                                                  3%

                                                                         Source: AgriSETA members’ database, 2016

The figure above shows that the majority of Red Meat employers registered with AgriSETA are in the
Western Cape (22%), followed by Mpumalanga (15%) and KwaZulu-Natal (13%). The provinces with the
least number of registered employers in the Red Meat subsector include: Limpopo (3%) and North West
(5%). It is important to note 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 is significant number of stakeholders expressing an interest in skills development in
the agricultural sector.

    1.6 LABOUR MARKET PROFILE
1.6.1 Provincial distribution of employees
The South African Agricultural sector is one of the biggest employers in the country. In the first quarter of
2017, STATSSA reported that a total of 875 000 people were employed in the sector, with the Western
Cape (25%) accounting for the majority of employees in the sector, followed by Limpopo and Kwazulu-
Natal, respectively accounting for 16% of employees.
TABLE 8: DISTRIBUTION ON EMPLOYEES BY PROVINVE IN AGRICULTURE, 2016/2017

          PROVINCE                            2015/2016                                   2016/2017
 Western Cape                               228 000                   26%               215 000              25%
 Eastern Cape                                95 000                   11%                87 000              10%
 Northern Cape                               40 000                    5%                47 000               5%

                                                                                                              11
PROVINCE                                2015/2016                                   2016/2017
             Free State                                       72 000                   8%                  70 000                 8%
             KwaZulu-Natal                                   131 000                   15%                141 000                16%
             North West                                       54 000                   6%                  50 000                 6%
             Gauteng                                          37 000                   4%                  36 000                 4%
             Mpumalanga                                       95 000                   11%                 89 000                10%
             Limpopo                                         118 000                   14%                140 000                16%
             TOTAL                                           870 000                  100%                875 000               100%
                                              Source: Statistics South Africa, 2017. Quarterly Labour Force Survey. 1 st Quarter 2017

            The figure below outlines the Red Meat employment distribution by provincial breakdown. Contrary to
            the livestock statistics mentioned earlier which saw the concentration of livestock in the Eastern Cape
            (28%), data from the AgriSETA WSP submissions (2016) shows that the provinces with the highest
            proportion of both permanent and seasonal/temporary employees in the Red Meat subsector is Gauteng
            and Kwazulu-Natal, with each accounting for 19% of total employees in the subsector; while the Eastern
            Cape only accounts for 6% of employees. The vast difference in numbers is possibly a result of the fact
            that not all employers submit WSPs to AgriSETA; only a total of 174 Large and Medium employers
            submitted WSPs in 2016.
            FIGURE 6: PROVINCIAL BREAKDOWN – RED MEAT EMPLOYEES

            8 000

            7 000

            6 000

            5 000
NUMBER

            4 000

            3 000

            2 000

            1 000

                  0
                                                                KwaZulu-                                             Northern
                      Eastern Cape   Freestate     Gauteng                   Limpopo     Mpumalanga     North West              Western Cape
                                                                 Natal                                                Cape
         PERCENTAGE       6%            9%           19%          19%           7%             8%          9%           5%          17%
         NUMBER          2335          3175          7083         7088         2513           2903        3293         1904         6189

                                                                                             Source: AgriSETA WSP Submissions, 2016

                                                                                                                                  12
1.6.2 Gender
The graph below gives a breakdown of the Red Meat subsector by gender as reported in the WSP
submissions (2016). Data shows that the highest proportion of employees are male, accounting for
approximately 70% of total employment, while females make up the other 30%.
FIGURE 7: GENDER BREAKDOWN

                                                           Female
                                                            33%
                                                                          Female
                                                                          Male

                              Male
                              67%

                                                                   Source: AgriSETA WSP Submissions, 2016

1.6.3 Race
The WSP (2016) shows that the majority of employees in the subsector are African (76%), followed by
Coloured employees (14%), and White employees (10%). Indian/Asian employees only represent less than
1% of people employed in the subsector.
FIGURE 8: EMPLOYEES BY RACE

                                     White
                                     10%
                    Indian/Asian
                         0%

              Coloured
                14%                                                              African
                                                                                 Coloured
                                                                                 Indian/Asian
                                                                                 White

                                                         African
                                                          76%

                                                                   Source: AgriSETA WSP Submissions, 2016
                                                                                                      13
1.6.4 Age
         There is a relatively equal number of employees between the age group “less than 35” people between
         the ages 35 to 55. People employed in the Red Meat sub-sector by employers submitting WSP are
         considered youth (less than 35 years old) which accounts for 46% of employees; while age group 35 to 55
         accounts for 44% of employees. Employees over the age of 55 only account for 10%.

         1.6.5 Occupational categories
         The last section of chapter one looks at the existing skills levels in the Red Meat subsector as reported in
         the WSPs submitted for 2016. Skills vary from highly skilled managerial and professional occupations to
         relatively low level skilled elementary occupations. The figure below illustrates that the majority of people
         employed in the subsector occupy Elementary positions (30%), followed by Managers, who account for
         24% of employees in the subsector. The lowest number of employees occupy Services and Sales positions
         (2%), and Technicians and Clerical Support Workers each make up 4% employees in the respective
         occupational categories in the subsector.

         FIGURE 9: EMPLOYMENT BREAKDOWN WITHIN THE RED MEAT SUBSECTOR

                     Elementary Occupations

                 Plant and Machine Operators

Skilled Agricultural and related Trade workers

                   Service and Sales Workers

                     Clerical Support Workers

     Technicians and Associate Professionals

                                Professionals

                                   Managers

                                                  0               2 000            4 000            6 000            8 000         10 000          12 000
                                                                                                              Skilled
                                                      Technicians and                                                        Plant and
                                                                      Clerical Support Service and Sales Agricultural and                   Elementary
                   Managers       Professionals          Associate                                                           Machine
                                                                          Workers          Workers        related Trade                     Occupations
                                                       Professionals                                                         Operators
                                                                                                             workers
   Number            8649             1540                 2979             3768              727              3743            4045           11142
   Percentgage        24%              4%                   8%              10%               2%               10%             11%             30%

                                                                                                   Source: AgriSETA WSP Submissions, 2016

                                                                                                                                              14
1.7 CONCLUSION
Having a firm sense of the Red Meat subsector 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
subsequent chapters identify key skills issues as framed by government legislation, policies and
frameworks; and further identifies key macro socio-economic and environmental factors that function as
key change drivers in addressing skills development in the agricultural sector

                                                                                                    15
CHAPTER 2: KEY SKILLS ISSUES

    2.1 INTRODUCTION
Having outlined the Red Meat subsector profile in chapter one, this chapter is concerned with two specific
areas that shape the key skills issues in the subsector. Firstly, the alignment of sector skills planning to national
strategies, and plans will be analyzed to provide a snapshot of the key policy and planning documents that
shape skills planning in the Red Meat subsector. 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 skills
sets or rendering them irrelevant in an ever changing world.

    2.2 CHANGE DRIVERS
This section of the report identifies the key themes and issues driving change and influencing skills demand
and supply in the Red Meat subsector. These change drivers were identified through thematic synthesis and
triangulated through internal and external stakeholder engagement, desktop research and relevant policy
documents.

2.2.1 Climate Change and Draught
The 2015/2016 drought, a result of the worldwide El Niño effect, already only 46% of South Africans are food
secure (HSRC, 2014), and the drought could have further deleterious effects on food security. The drought,
along with other challenging environmental factors, could act as a disincentive from pursuing an agricultural
career. National food security depends on a “capital-intensive agricultural sector based on economies of scale”
(Kane-Berman, 2016), and thus smaller producers are even more at risk during the drought – a difficult
economic and environmental climate in which to take risks. Subsistence and smaller commercial farms should
be offered support, but equally commercial farms need to attract those with sustainable farming skills to
ensure food security for South Africans generally.

                                                                                                                  16
2.2.2 The Youth Bulge and Skills Development
Youth, people aged 15 – 35, comprise 36% of the South African population, and 70% of the unemployed
(StatsSA, 2016). This presents a huge challenge for skills development generally, and specifically for the
agricultural sector, with a waning interest in agriculture and rapid urbanisation. The South African
Confederation of Agricultural Unions (SACAU) has called on stakeholders to recognise agriculture as a “high
skilled business with great opportunities for the youth” (AgriSA, 2016). But when youth are largely unskilled or
undereducated, there needs to be major up-skilling across the board before they can take advantage of
available employment opportunities. Demographically, there is a generalised mismatch between the demand
for skilled labour, and the supply of unskilled labour.

2.2.3 Brexit & EU trade agreements
While the effects of Brexit on South African agribusiness are yet to become clear, what is clear is that South
Africa would have to renegotiate its trade agreements with the UK. Senior agricultural economist in Agricultural
Business Chamber, Mr Wandile Sihlobo, commented that, “market access benefits that existed through the
agreement would no longer apply” (Mchunu, 2016). Agricultural subsidies are one of the key issues related to
Brexit. The UK is a critic of current European subsidies which have historically had an impact on African farmers’
export capacity (Sow & Sy, 2016). The outcome of renegotiated trade agreements will have to be monitored.

    2.3 ALIGNMENT WITH NATIONAL STRATEGIES AND PLANS
The following section draws attention to the national strategy and planning documents that frame AgriSETA’s
mandate for skills development. The 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, (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 recognize 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
                                                                                                               17
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.

    2.4 IMPLICATIONS FOR SKILLS PLANNING
In this chapter we have seen that the legislative and policy frameworks established by government, coupled
with the contextual change drivers and industry specific perspectives on skills development point to the
following 4 skills implications that need to be addressed in the Red Meat Subsector Skills Plan.

   1.   Improved quality of agricultural extension services qualifications.
   2.   Partnerships with Higher Education Institutions (HEIs) for research and development into the subsector.
   3.   The need for occupationally oriented skills training that offers in-the-field experience and mentorship.
   4.   Environmental concerns related to food security and ecological sustainability.

    2.5 CONCLUSION
In this chapter we have seen that the legislative and policy frameworks established by government, coupled
with the contextual change drivers and industry specific perspectives on skills development point to 4 skills
implications that need to be addressed in the Red Meat subsector Skills Plan. Chapter 3 will elaborate on the
specific demand and supply of skills in the agricultural sector to identify gaps and mismatches in skills provision,
providing evidence that the skills issues identified in this chapter articulate with what is happening on the
ground.

                                                                                                                 18
CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS

    3.1 INTRODUCTION

Chapter 3 reflects the research completed on skills demand and supply in the Red Meat subsector. The
outcome is the result of an analysis of previous Sector Skills Plans, 2014/15 and 2015/16 WSP data, as well as
engagement with AgriSETA stakeholders. Engagements included interviews, surveys and limited focus groups
with external partners, stakeholders and AgriSETA member companies, as well as consultation with internal
stakeholders, conducted between 2015 and 2017. Effort was taken to ensure cross sectoral inputs were
obtained by reaching out to large levy payers, industry bodies, government departments as well as emerging
small scale entrants in the sector.

                                                                                                           19
3.2 OCCUPATONAL SHORTAGES AND SKILLS GAPS

    3.2.1 Hard-To-Fill Vacancies (HTFVs)
The analysis conducted has identified the hard-to-fill vacancies (HTFVs) and skills issues as they pertain to the
Red Meat subsector. The skills issues, gaps, as well as the emerging skills needs as identified through the survey
and WSP submissions analyses are outlined in the tables below. Firstly, the needs of small-emerging farmers
and co-operatives are addressed, followed by the needs of commercial farmers.
TABLE 9: SMALL EMERGING FARMERS AND CO-OPERATIVES HTFVS

 Subsector        Skills and/or Qualifications Gaps                                          OFO Code
                  “Blokman”/Butcher                                                          2017-681103

 Red meat         Meat Inspector                                                             2017-325703

                  Livestock Mixed Crop and Livestock skills                                  2017-841601

TABLE 10: COMMERCIAL FARMERS HTFVs

  Subsector        Skills and/or Qualifications Gaps                                         OFO Code
                   National Certificate: Animal Production                                   2017-613101

                   National Certificate: Farming                                             2017-613101
  Red meat         National Certificate: Mixed Farming Systems                               2017-613101

                   National Diploma: Animal Production                                       2017-613101

                   Dairy specific training                                                   2017-325703

                   National Certificate: Abattoir Slaughtering Processes                     2017-134915

                   National Certificate: Abattoir Supervision                                2017-134915

                   National Certificate: Agri Sales and Services                             2017-122101

                   National Certificate: General Abattoir Processes                          2017-134915

                   National Certificate: Perishable Produce Export Technology                2017-325703

                   National Diploma: Agri Sales and Service Management                       2017-122101

                                                                                                               20
The following table outlines the top HTFVs as identified by external stakeholders in the Red Meat subsector.
TABLE 11: TOP HTFVs (STAKEHOLDER ENGAGEMENT)

     Hard-to-fill Vacancies (HTFVs)         REASON
     Abattoir managers/supervisors          Manage safety & health issues, control over staff, meat inspection

     Disease controllers/inspectors         Training – management of serious outbreak of sector related
                                            diseases (Avian flu, brucellosis)

     Animal welfare officials               Skills on local & international legislation & welfare at abattoirs

The following table presents the top emerging skills and future demand needs in the Red Meat subsector drawn
from the results of the external stakeholders’ survey (2016).
TABLE 12: TOP EMERGING SUBSECTOR SKILLS AND FUTURE OCCUPATIONAL SHORTAGES

 Subsector           Top Emerging Skills and Future Demand Needs
                     Veterinarians
                     Auctioneers
 RED MEAT
                     Marketing
                     Business management

A series of key-informant interviews were conducted with top levy payers and top industry players. The findings
emerging from these interviews corroborate the skills needs outlined above. Overall, similar to other
agricultural subsectors, stakeholders across occupations in the Red Meat subsector expressed having
challenges with recruiting and retaining skilled staff in rural areas. Furthermore, they highlighted the need for
technical and specialized skills that were being lost when experienced professionals exited the workforce.
There are eleven occupations that are HTFVs identified for both small emerging farmers and cooperatives, and
commercial farmers:

          1.    “Blokman”
          2.    Meat Inspector
          3.    Livestock Mixed Crop and Livestock skills
          4.    National Certificate: Animal Production
          5.    National Certificate: Farming
          6.    National Certificate: Mixed Farming Systems
          7.    National Diploma: Animal Production
          8.    Dairy specific training
          9.    National Certificate: Abattoir Slaughtering Processes
          10.   National Certificate: Abattoir Supervision
          11.   National Certificate: Agri Sales and Services
          12.   National Certificate: Farming
          13.   National Certificate: General Abattoir Processes
          14.   National Certificate: Perishable Produce Export Technology
          15.   National Diploma: Agri Sales and Service Management

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