SUGAR Sub-Sector Skills Plan 2020-2021 - AgriSeta

 
CONTINUE READING
SUGAR Sub-Sector Skills Plan 2020-2021 - AgriSeta
SUGAR
Sub-Sector Skills Plan
           2020-2021
SUGAR Sub-Sector Skills Plan 2020-2021 - AgriSeta
CONTENTS

ENABLING A SKILLED AND PROSPEROUS
      AGRICULTURAL SECTOR
SUGAR Sub-Sector Skills Plan 2020-2021 - AgriSeta
i

ABBREVIATIONS AND ACRONYMS.................................. ii           CHAPTER 5: SKILLS PRIORITY ACTIONS..........35
EXECUTIVE SUMMARY............................................... iii
RESEARCH PROCESS AND METHODS............................... iv            5.1 INTRODUCTION................................................. 36
SUMMARY OF KEY FINDINGS........................................ vi        5.2 KEY FINDINGS FROM OTHER CHAPTERS..................... 36
                                                                          5.2 RECOMMENDED ACTIONS...................................... 37
CHAPTER 1: SECTOR PROFILE.....................1                           5.3 CONCLUSION.................................................... 37

1.1 INTRODUCTION................................................. 2       LIST OF REFERENCES................................................ 38
1.2 SCOPE OF COVERAGE.......................................... 2
1.3 KEY ROLE-PLAYERS............................................. 4
1.4 ECONOMIC PERFORMANCE.................................... 6
1.5 EMPLOYER PROFILE............................................ 10
1.6 CONCLUSION.................................................... 13

CHAPTER 2: KEY SKILLS ISSUES...................15

2.1 INTRODUCTION................................................. 16
2.2 CHANGE DRIVERS............................................... 16
2.3 ALIGNMENT OF SKILLS PLANNING TO NATIONAL ...........
     STRATEGY AND PLANS.......................................... 18
2.4 IMPLICATIONS FOR SKILLS PLANNING........................ 18
2.5 CONCLUSION.................................................... 19

CHAPTER 3: OCCUPATIONAL SHORTAGES AND
SKILLS GAPS...........................................21

3.1 INTRODUCTION................................................. 22
3.2 EXTENT AND NATURE OF DEMAND............................ 22
3.3 EXTENT AND NATURE OF SUPPLY............................. 26
3.4 PIVOTAL LIST.................................................... 28
3.5 CONCLUSION.................................................... 30

CHAPTER 4: PARTNERSHIPS........................31

4.1 INTRODUCTION................................................. 32
4.2 EXISTING PARTNERSHIPS....................................... 32
4.3 EMERGING PARTNERSHIPS..................................... 34
4.4 CONCLUSION.................................................... 34

                                                               GENERAL INFORMATION
SUGAR Sub-Sector Skills Plan 2020-2021 - AgriSeta
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     ABBREVIATIONS AND ACRONYMS

      ABBREVIATION/ DESCRIPTION
      ACRONYM
      AFASA               African Farmers Association of South Africa
      AGRISETA            Agricultural Sector Education and Training Authority
      APAP                Agricultural Policy Action Plan
      ATR                 Annual Training Report
      BMI                 Business Monitor International
      *DAFF               *Department of Agriculture, Fisheries and Forestry
      [DALRRD]            [changed to Department of Agriculture, Land Reform and Rural Development in June 2019]
      *DHET               *Department of Higher Education and Training
      [DHEST]             [was merged with Department of Science and Technology and became Department of Higher
                          Education, Science and Technology in June 2019]
      *DRDLR              *Department of Rural Development and Land Reform
      [DALRRD]            [was merged into the Department of Agriculture, Land Reform and Rural Development in June 2019]
      GDP                 Gross Domestic Product
      HEMIS               Higher Education Management Information System
      HTFV                Hard-To-Fill Vacancies
      IDP                 Integrated Development Plan
      IPAP                Industrial Policy Action Plan
      KZN                 KwaZulu-Natal
      NAFU                National African Farmers Union
      NAMC                National Agricultural Marketing Council
      NDP                 National Development Plan
      NGP                 New Growth Path
      NSDS III            National Skills Development Strategy III
      NSDP                National Skills Development Plan
      QLFS                Quarterly Labour Force Survey
      SADC                Southern African Development Community
      SARS                South African Revenue Service
      SIP                 Standard Integrated Project
      SIC                 Standard Industrial Classification
      SSP                 Sector Skills Plan
      Stats SA            Statistics South Africa
      TVET                Technical Vocational Education and Training
      WSP                 Workplace Skills Plan

     * The references and information in the SSP was obtained before the merging and renaming of national government depart-
        ments in June 2019.

                                                            SUGAR       SUB-SECTOR SKILLS PLAN
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EXECUTIVE SUMMARY

The Sugar sub-sector is considered quite diverse, combining      There are general factors as well as specific sub-sector factors
agricultural activities of Sugarcane cultivation with the        driving change and influencing skills demand and supply in
manufacturing of raw and refined sugar, syrups, specialised      the Sugar sub-sector at present. The main factors are:
sugar by-products and co-products (SASA, 2017).                  •      Land and agrarian reform – as part of country’s
                                                                         transformation strategy
The South African sugar supply chain has two distinctive         •	     The youth bulge – youth’s lack of skills and lack of
activities, namely, the sugarcane production and the                     interest in agriculture
Sugar milling sections. It is a symbiotic relationship, since    •	     Technology and mechanisation – increasing
one depends on the other. The miller cannot exist without                mechanisation means more technical people/
a supply of sugarcane, while the cane producer needs                     artisans are needed)
a miller (NAMC, 2013). In 2018/19, there were 22 949             •       Brexit – possibly requiring the signing of new trade
registered sugarcane growers (SASA, 2019), predominantly                  agreements
situated in KwaZulu-Natal and Mpumalanga, with some              •        Gender representation – the imperative of increasing
farming in the Eastern Cape. Sugar is manufactured in six                  the number of females in the industry
milling companies, with 14 sugar mills operating in the cane     •	       Disease and pest – requiring specialised skills
growing regions (DAFF, 2016).                                    •         The sugar tax – formally called the Health Promotion
                                                                            Levy that reduces use of sugar
Given its agricultural and industrial investments, foreign       •	        Cheap imports – increasingly impacting negatively
exchange earnings, high employment rate, and linkages                       on revenue
with major suppliers, the South African Sugar sub-sector
makes an important contribution to the national economy.         According to the South African Sugar Association (SASA),
Approximately one million (2%) of South Africa’s population      the SA Sugar industry is at a critical tipping point, where
depend on the Sugar sub-sector for providing a living            the policy environment is not conducive for the survival and
(SASA, 2019).                                                    growth of the Sugar sub-sector. The industry needs a “game
                                                                 changer”.
South Africa is one of the world’s leading producers of
high quality sugar and the key component is its export           SASA believes that diversification into fuel ethanol
infrastructure. The raw sugar exports are handled at the sugar   production from sugarcane and other renewable products,
terminal in Durban, which provides storage and handling          procurement of sugarcane cogenerated electricity and
facilities (DAFF, 2016). Within the SADC region there are16      enabling legislative conditions will improve the sustainability
member states of which 11 produce sugar and South Africa         of the sub-sector as a whole (SA Sugar Directory 2019/20).
is the largest (SASA, 2016).

                                                     GENERAL INFORMATION
SUGAR Sub-Sector Skills Plan 2020-2021 - AgriSeta
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     RESEARCH PROCESS AND METHODS

     AgriSETA carried out various research projects to produce the Sugar sub-sector Skills Plan 2020-2021. The research was
     conducted through a mixed methodology of qualitative and quantitative techniques. The table below summarises the research
     process and methods used to construct this sub-sector skills plan.

     TABLE 1: RESEARCH PROCESS AND METHODS

                                Nature (Design)
         Research Topic                                  Purpose           Data Collection       Sample Size        Timeframe
                                 of the study
                                                        Chapter 1: Sector Profile
                                                                                              All AgriSETA
      Scope of coverage of                        Gives an overview of     AgriSETA
                           Quantitative                                                       employer data       May–July 2019
      the sector                                  the sector               employer data
                                                                                              for 2018/19
                                                                                              All WSPs received
      Key role-players in                         Investigate key          WSPs/ATRs
                                Quantitative                                                  for 2019          May–July 2019
      the sector                                  role-players             data

                                                  Examine economic                            All WSPs received
      Economic                                                             WSPs/ATRs
                                Quantitative      performance in the                          for 2019          May–July 2019
      performance                                                          data
                                                  sector
                                                                                              All WSPs received
                                                  Examine employment       WSPs/ATRs
      Employer profile          Quantitative                                                  for 2019          May–July 2019
                                                  trends                   data

                                                                           WSPs/ATRs          All WSPs received
                                                  Examine employment
      Labour market profile Quantitative                                   data, Statistics   for 2019          May–July 2019
                                                  trends
                                                                           SA
                                                          Chapter 2: Key Skills
                                                  Identify skills priorities
      Drivers of change for                                                  Interviews and   60 SSC members,
                                Qualitative       and change drivers in                                       August 2019
      the agricultural sector                                                focus groups     4 focus groups
                                                  the agricultural sector
      Policy frameworks
                                                  Analyse sectorial        Interviews and     60 SSC members,
      affecting skills          Qualitative                                                                   August 2019
                                                  policy frameworks        focus groups       4 focus groups
      demand and supply
                                          Chapter 3: Occupational Shortages and Skills Gaps
      Critically evaluate the                                                                 All WSPs/ATRs
                                                  To provide the
      AgriSETA critical and                                                Focus groups       data received for
                                                  sectoral occupational
      scarce skills list and  Qualitative                                  WSPs/ATRs          2019, 60 SSC        August 2019
                                                  demand, extent and
      provide an overview                                                  data               members, 4 focus
                                                  nature of supply
      of the skills gap                                                                       groups

                                                            SUGAR       SUB-SECTOR SKILLS PLAN
SUGAR Sub-Sector Skills Plan 2020-2021 - AgriSeta
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                         Nature (Design)
    Research Topic                                 Purpose            Data Collection      Sample Size          Timeframe
                          of the study
                                                                                        All WSPs/ATRs
 Identification of
                                            Formulate Sectoral                          data received
 Sectoral Priority                                                    WSPs/ATRs
                         Qualitative        Priority Occupations                        for 2019, 11      August 2019
 Occupations                                                          interviews
                                            (PIVOTAL)                                   employer surveys,
 (PIVOTAL)
                                                                                        60 SSC members
                                                   Chapter 4: Partnerships
 Analysis of planned                        Ascertain the                               All AgriSETA
 and existing SETA       Qualitative        AgriSETA                  Interviews        departments          May–July 2019
 partnerships                               partnerships
                                              Chapter 5: Skills Priority Actions
                                            Provide synthesis of
 Key skills findings                        previous chapters
 from previous           Quantitative       in the SSP and            NONE              NONE                 On-going
 chapters                                   recommendations of
                                            priority actions

DOCUMENT REVIEW                                                    SCARCE KILLS AND SECTORAL
                                                                   PRIORITY OCCUPATIONS
A document review was conducted to establish the
economic performance and trends of the Sugar sub-sector,           (PIVOTAL) LIST FORMULATION
geographic concentration and employers. Government
policy and strategy documents, as well as key statistical and      The scarce skills, skills gaps and PIVOTAL skills lists were
industry publications were reviewed and these are included         arrived at through both secondary data analysis and the
in the bibliography. A thematic analysis was conducted to          numbers made available in previous sector skills plans, large
synthesise the key economic, policy and training issues            and small workplace skills plans (WSPs), large and small
affecting the Sugar sub-sector, and to identify key skills         annual training reports, (ATRs), and primary data analysis
issues.                                                            obtained at the two-day AgriSETA stakeholder conference
                                                                   (28 February – 1 March 2019), interviews and data
                                                                   collection.

                                                    GENERAL INFORMATION
SUGAR Sub-Sector Skills Plan 2020-2021 - AgriSeta
vi          AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

     SUMMARY OF KEY FINDINGS

     In addressing scarce skills gaps needs in the Sugar sub-          2.	The need for occupationally oriented skills training
     sector, there are various skills development interventions that       that offers in-the-field experience and mentorship.
     AgriSETA and employers in the sector can undertake.               3.	Environmental concerns related to food security and
                                                                           ecological sustainability.
     According to the hard-to-fill vacancies (HTFVs) identified for    4.	Improved quality of agricultural extension services
     small emerging farmers and co-operatives, and commercial              qualifications.
     farmers, the AgriSETA should direct funding towards               5.  Gender empowerment & development
     developing skills in:                                             6.	Development of governance skills focusing on co-
     –      Manufacturing technical maintenance                            operatives and small agricultural enterprises.
     –      Agricultural machinery technician
     –      Farming                                                    In 2019/20, employers that submitted training reports
     –      Plant production                                           indicated that a total of 5 505 training interventions were
     –      Agri sales and service management                          attended by employees in the Sugar sub-sector, and the
                                                                       majority of employees that received this training were
     The legislative and policy frameworks established by              male. Consistent to the finding that the majority of people
     government coupled with the contextual change drivers and         employed in the sub-sector occupy elementary positions,
     industry specific perspectives on skills development, point to    the majority of employees that received training were in
     the following skills implications that need to be addressed in    elementary occupations.
     the Sugar sub-sector:
     1.	Partnerships with Higher Education Institutions (HEIs)
             for research and development into the sub-sector.

                                                             SUGAR     SUB-SECTOR SKILLS PLAN
SUGAR Sub-Sector Skills Plan 2020-2021 - AgriSeta
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LIST OF FIGURES

Figure 1:    DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUB-SECTOR                           3
Figure 2:    SKILLS DEVELOPMENT LEVIES                                                     4
Figure 3:    IMPORTED VALUE OF SUGAR AND SUGAR CONFECTIONERY                               8
Figure 4:    EXPORTED VALUE OF SUGAR AND SUGAR CONFECTIONERY                               8
Figure 5:    PROVINCIAL DISTRIBUTION OF SUGAR EMPLOYERS REGISTERED WITH AGRISETA           9
Figure 6:    PROVINCIAL BREAKDOWN – SUGAR EMPLOYEES                                       11
Figure 7:    EMPLOYEES BREAKDOWN BY GENDER                                                11
Figure 8:    EMPLOYEES BY RACE                                                            12
Figure 9:    EMPLOYEES BY RACE                                                            12
Figure 10: Occupational Categories in the Sugar Sub-sector                                13
Figure 11: UNIVERSITIES GRADUATES BY MAJOR FIELD OF STUDY IN PUBLIC UNIVERSITIES          26
Figure 12: 	NUMBER OF ENROLMENT AND GRADUATES FROM PUBLIC UNIVERSITIES AND
             TECHNIKONS by Classification of Educational Subject Matter (CESM) 2000–2016) 27

LIST OF TABLES

Table 1:    RESEARCH PROCESS AND METHODS                                                     iv
Table 2:    ACTIVITIES IN THE SUGAR SUB-SECTOR BY STANDARD INDUSTRIAL CLASSIFICATION CODE    3
Table 3:    KEY AGRICULTURAL ROLE-PLAYERS                                                    4
Table 4:    TOTAL SUGAR PRODUCTION IN TONS                                                   7
Table 5:    SA SUGAR SUPPLIES INTO SACU MARKET IN TONS                                       7
Table 6:    DISTRIBUTION OF EMPLOYEES BY PROVINCE IN AGRICULTURE, 2019                      10
Table 7:    SMALL EMERGING FARMERS AND CO-OPERATIVES HARD-TO-FILL VACANCIES                 22
Table 8:    COMMERCIAL FARMERS HARD-TO-FILL VACANCIES                                       22
Table 9:    TOP HARD-TO-FILL VACANCIES (STAKEHOLDER ENGAGEMENT)                             23
Table 10:   SCARCE SKILLS AND SKILLS GAPS LIST                                              24
Table 11:   EMPLOYEES TRAINED BY OCCUPATIONAL CATEGORY AND GENDER                           27
Table 12:   THE AGRISETA PIVOTAL LIST 2018/19                                               29
Table 13:   AGRISETA PARTNERSHIPS                                                           32

                                          GENERAL INFORMATION
SUGAR Sub-Sector Skills Plan 2020-2021 - AgriSeta
1   AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

                            CHAPTER 1
                            SECTOR PROFILE

                                               SUGAR     SUB-SECTOR SKILLS PLAN
2

1.1. INTRODUCTION                                                  1.2. SCOPE OF
                                                                         COVERAGE
Chapter 1 of this sub-sector skills plan provides an overview
of the agricultural sector, paying particular attention to the
Sugar sub-sector in South Africa. The first section looks at the   The scope of AgriSETA covers the agricultural sector from
scope of the Sugar sub-sector’s coverage.                          input services to a farm to activities on a farm and first level
                                                                   processing activities on a farm. The Sugar sub-sector is
The second section outlines AgriSETA stakeholders and              classified into two (2) agricultural and economic focuses,
key role-players in the sector. The third section looks at the     namely: the plantation of sugar (including sugarcane and
economic performance of the overall agricultural sector,           Sugar beet) and the manufacturing of sugar (including golden
zooming into the contribution of the Sugar industry to the         syrup and castor sugar). The table below outlines the various
South African economy.                                             agricultural and economic focus areas in the Sugar sub-
                                                                   sector, including the Standard Industrial Classification (SIC)
The fourth section explores the employer profile, based on         codes and descriptions.
the AgriSETA WSP/ATR data submitted for 2019. The last
section provides a labour market profile where the number
and demographics of people employed in the sector is
explored. Essentially, the chapter is intended to set the scene
for the skills issues that are examined in the subsequent
chapters.

                                                     CHAPTER 1     SECTOR PROFILE
3          AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

    Table 2: ACTIVITIES IN THE SUGAR SUB-SECTOR BY STANDARD INDUSTRIAL CLASSIFICATION CODE

      SUB-SECTOR         SIC CODE                                            SIC Description
                            11122       Sugar plantation including sugarcane and sugar beet etc.
     SUGAR
                         30420       Manufacture of sugar including golden syrup and castor sugar
    Source: AgriSETA employer data, 2019/20

    These sub-sectors are classified into 11 sub-sector committees, which represent their industry interests to AgriSETA. The figure
    below indicates the relative size of employers by sub-sectors, as captured in the AgriSETA employer data for 2019/20. The
    AgriSETA employer data comprises all the sub-sector data for both levy and non-levy payers.

    Figure 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUB-SECTOR

                                                                         Red Meat                             (44.3%)
                                                                         Horticulture                         (23.1%)
                                                                         Grains and Cereals                   (9.6%)
                                                                         Fibre                                (8.6%)
                                                                         Poultry                              (5.0%)
                                                                         Aquaculture                          (4.2%)
                                                                         Blanks                               (2.8%)
                                                                         Milling, Pet Food and Animal Feed    (2.0%)
                                                                         Pest Control                         (1.0%)
                                                                         Seed                                 (1.0%)
                                                                         Sugar                                (0.9%)
                                                                         Tobacco                              (0.3%)

    Source: AgriSETA Employer Data, 2019/20

    The total number of employers registered in the employer          REVENUE FROM SKILLS
    database for 2019/20 is 26 181. The Red Meat (44.3%) sub-
    sector remains the biggest on the AgriSETA employer data,         DEVELOPMENT LEVIES
    followed by the Horticulture sub-sector (23,1%) , Grain and
    cereal(9,6%), and Fibre (8,6%). The lowest percentages are        In 2019/20 there was a total of 229 Sugar sub-sector
    found in Milling, pet food & animal feed (2,0 %), and Pest        entities on the AgriSETA employer database, contributing
    control, Seed, Sugar (0,9%) and Tobacco (0,3%).                   0,9% of total entities in the agricultural sector. Of these 229
                                                                      entities, 58% contribute to the Skills Development Levies, as
                                                                      illustrated in the figure below. A total of R39 million SDL was
                                                                      generated from the Sugar sub-sector.

                                                           SUGAR      SUB-SECTOR SKILLS PLAN
4

Figure 2: SKILLS DEVELOPMENT LEVIES

100%
  90%
  80%
  70%
  60%
  50%
  40%
  30%
  20%
  10%
   0%
                                    levy paying                                     Non-levy paying
     Percentage                          58%                                                 42%

Source: AgriSETA employer data, 2019/20

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.
These include national government departments, sector representatives and industry bodies. The table below groups these role-
players according to their strategic contribution to the sector. Please note that while it is comprehensive, this list is not exhaustive.

Table 3: KEY AGRICULTURAL ROLE-PLAYERS

  Strategic contribution          Department or organisation                    Relevance to agricultural skills development
                                                                         Quality of education of entrants to labour market,career
                             Department of Basic Education               awareness programmes to expose agriculture as a
                                                                         possible career choice
                        Department of Higher Education and
                        Training                             Responsible for TVETs, HETs, agricultural colleges and
 Skills Development and
                        [changed to Department of Higher     skills development. Sets the national skills development
 Research
                        Education, Science and Technology in agenda through regulation of SETAs.
                        June 2019]
                                                                         Provision of updated statistics on agricultural sector
                             Statistics SA
                                                                         economics & labour force
                             Agricultural Research Council               Scientific research on agricultural production issues

                                                      CHAPTER 1       SECTOR PROFILE
5        AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

    Strategic contribution        Department or organisation                  Relevance to agricultural skills development
                             Department of Trade and Industry &
                             Provincial Departments of Economic
                                                                        Industrial strategy, international trade agreements,
                             Development
                                                                        agricultural sector strategy and policy implementation
                             [changed to Department of Trade
                                                                        desk
                             Industry and Competition in June
                             2019]
    Strategy and
                             Department of Agriculture Forestry
    Policy                                                              Sector regulatory framework, strategy and leadership,
                             and Fisheries
                                                                        provision of extension services, Broad Economic
                             [changed to Department of
                                                                        Empowerment funding of development interventions
                             Agriculture, Land Reform and Rural
                                                                        including provision of bursaries for scarce skills
                             Development in June 2019]
                                                                        Financial planning, incentives, accountability of Land
                             National Treasury & SARS
                                                                        Bank, skills levies
                                                                        Labour legislation, wage determinations, employment
                             Department of Labour
                                                                        equity
                             Department of Economic
                             Development
                                                                        Sector economic strategies
                             [changed to Department of Economic
                             Development and Tourism]
    Planning
                             National Planning Commission               Identify inter-departmental overlaps and gaps
                             Department of Environmental Affairs
                                                                        Policy and guidelines on environment protection and
                             [changed to Department of
                                                                        natural resource management, partner in environmental
                             Environment, Forestry and Fisheries in
                                                                        education
                             June 2019]
                             Department of Transport                    Planning for transport needs in rural areas.
                          Department of Rural Development and
                          Land Reform
                                                              Partnering with AgriSETA in mobilising funds for capacity
                          [changed to Department of
                                                              building of claimants
    Rural Development and Agriculture, Land Reform and Rural
    Land Reform           Development in June 2019]
                             Department of Co-operative
                                                                        Linking agricultural and rural development to IDPs and
                             Governance and Traditional Affairs
                                                                        LED, infrastructure and services to agricultural enterprises
                             plus municipalities
                             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 address
                             South African Police Service               issues of farm security, including attacks, stock and
                                                                        property theft
                             Land and Agricultural Development          Financial services to commercial farming sector,
                             Bank of South Africa                       agribusiness, and emerging farmers
    Credit and assistance
                             Micro-Agricultural Financial
                                                                        Production loans to smallholder operators.
                             Institutions of South Africa (MAFISA)

                                                        SUGAR         SUB-SECTOR SKILLS PLAN
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  Strategic contribution         Department or organisation               Relevance to agricultural skills development
                                                                    Agricultural Union serving some 32 000 large and small
                            Agri South Africa (AgriSA)
                                                                    commercial farmers
                            National African Farmers’ Union of      Represents black farmers to level the field in all
 Union and Sector           South Africa (NAFU)                     agricultural matters
 representatives            The African Farmers’ Association of     Represents commercial African farmers to bring black
                            South Africa (AFASA)                    commercial farmers into mainstream agribusiness
                            Transvaal Agricultural Union South
                                                                    A national agriculturalunion serving commercial farmers
                            Africa (TAU SA)
                            Agricultural Business Chamber           Fosters a favorable agribusiness environment
                                                            Conglomerate organisation providing commodity
 Agribusiness
                       Grain SA                             strategic support and services to South African grain
                                                            producers to support sustainability
Source: 2015 GCIS Handbook, Agriculture and AgriSETA SSP 2011-2016

1.4. ECONOMIC PERFORMANCE

OVERVIEW                                                          percentage point in the second quarter of 2019. The Sugar
                                                                  industry is a R14 billion industry which plays a huge role in
The South African sugar supply chain has two distinctive          the South African agricultural sector (SASA, 2019).
activities, namely, sugarcane production and sugar milling
whereby manufacturing of raw and refined sugar, syrups,           Given its agricultural and industrial investments, foreign
specialised sugars by-products and co-products takes              exchange earnings, high employment rate, and linkages
place (SASA, 2017). It is a symbiotic relationship, since         with major suppliers, the South African Sugar sub-sector
one depends on the other. The miller cannot exist without a       makes an important contribution to the national economy.
supply of sugarcane, while the cane producer needs a miller       Approximately one million (2%) of South Africa’s population
(NAMC, 2013). The figure below outlines the structure of          depends on the Sugar sub-sector for a living (SASA, 2019).
the South African Sugar sub-sector. The Sugar sub-sector
consists of approximately 22 949 registered sugarcane             Table 4 outlines total Sugar production (tons) from the
growers that are predominantly situated in KwaZulu-Natal          2012/13-2018/19 seasons. Consistent with the findings
and Mpumalanga (SASA, 2019). Sugar is manufactured in             above, there has been a drastic increase in cane crushed
six milling companies, with 14 sugar mills operating in the       since 2017/18. Cane crushed increased from 17 388 177
cane growing regions (DAFF, 2016).                                tons in 2017/18 to 19 031 688 tons in 2018/19, which
                                                                  invariably affected the total saleable Sugar produced. A
The gross domestic product (GDP) forecast for South               total of 2 181 161 tons of saleable Sugar was produced by
African’s total annual growth rate showed an increase             South Africa for the national and international market during
of 1% from 2018 to 2019 (OECD, 2019). According to                2018/19 season; an increase from the 1 985 715 tons in
the Statistics South Africa (2019), the agricultural sector       2017/18 (SASA).
contracted by 13.2% in the first quarter of 2019, following
a growth of 7.9% in the last quarter of 2018. It contributed      Sugarcane farmers in South Africa have been remunerated
-0.3 of a percentage point to the contraction of the economy      for their sugarcane according to the Recoverable Value
during the first quarter of this year and contributed -0.1 of a   (RV) Cane Payments system since 2000. This was agreed
                                                                  following the decision by the industry to seek an alternative

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    to the sucrose-based payment system, which had been in              the amount of sugar that can be extracted from cane during
    place since 1926.                                                   the milling process does not depend only on the amount of
                                                                        sucrose in the cane, but also on the amount of non-sucrose
    The RV Payment System recognises that not all the sucrose in        and fibre present.
    cane delivered to the mill can be recovered as sugar since

    Table 4: TOTAL SUGAR PRODUCTION IN TONS

                                                                              SALEABLE SUGAR PRODUCED
            SEASON                CANE CRUSHED                                       INTERNATIONAL
                                                         NATIONAL MARKET                                           TOTAL
                                                                                         MARKET
     2012/13                              17 278 020                   1 701 731                 249 785                1 951 518
     2013/14                             20 032 969                   1 543 264                  800 386                2 343 650
     2014/15                             17 755 537                   1 649 056                  458 617                2 107 673
     2015/16                              14 861 401                  1 573 504                   46 826                1 620 330
     2016/17                              15 074 610                   1 524741                    4 998                1 539 739
     2017/18                              173 88 177                   1 190 281                 795 434                1 985 715
     2018/19                              19 031688                    1 241 479                 939 682                2 181 161
    Source: SASA, 2019

    The table below illustrates the South African sugar supplies into South African Customs Union (SACU) market from 2012/13
    to 2018/19 seasons. Overall, there seems to have been a shift in direct sales and industrial sales across the years. Between
    2012/13 and 2018/19, direct sales accounted for the proportion of sales with an average of 46%, while in the preceding
    years industrial sales made up average of 54%. Evidently, the white sugar market has the highest amount of industry supply
    across all years, with an estimated 71% of total sugar supply in 2017.

    Table 5: SA SUGAR SUPPLIES INTO SACU MARKET IN TONS

        SEASON           WHITE SUGAR        BROWN SUGAR              DIRECT SALES       %        INDUSTRIAL SALES           %
     2012/2013               1 200 970                 409 712            877 563           54               733 128            46
     2013/2014               1 156 505                393 409             788 553           51               761 361            49
     2014/2015               1 169 842                384 349             567 401           41                810 015           59
     2015/2016               1 205 069                386 077             538 977           40                812 414           60
     2016/2017               1 180 432                462 568             625 517           43               834 679            57
     2017/2018                 844 037                334 262             461 647           43               606 275            57
     2018/2019                 864 255                447 228             575 745           49               588 666            51
    Source: SASA, 2019

    The total world of sugar imports into South Africa dropped          above 500 000 tonnes while exports will significantly
    from about 800 000 tonnes in 2017 to approximately 500              drop to approximately 200 000 tonnes by 2024 (BFAP,
    000 tonnes in 2019 (BFAP, 2019). The total sugar exports            2019). These predictions are assumed to likely take place
    also decreased from approximately 800 000 tonnes in 2017            as the climate change, sugar tax, pests and diseases issue
    to approximately 480 000 tonnes in 2019 (BFAP, 2019). It            continue to affect the Sugar sector. The total world export
    has been projected that the sugar imports will remain slightly      value of sugar supplied by South Africa was R6 321 million

                                                           SUGAR        SUB-SECTOR SKILLS PLAN
8

in 2018 while the total value of the world sugar imports by   remaining percentage is covered by the other countries
South Africa was also approximately R5 million in 2018. The   which are not on the top 5. The top five countries that South
figures below outline the South African Sugar and Sugar       Africa exported to include Mozambique (16%), Namibia
Confectionery top five import and export markets for 2018.    (14%), Malaysia (12%),Botswana (10%) and China (8%).
The highest proportion of imports coming from Swaziland       The remaining percentage is covered by the other countries
(7,40%), followed by Brazil (6,90%), Thailand (4,30%),        that are not listed on the top5.
China (4,20%) and United Arab Emirated (4,10%).The

Figure 3: IMPORTED VALUE OF SUGAR AND SUGAR CONFECTIONERY

                                                                           Swaziland           (57,4%)
                                                                           Brazil               (6,9%)
                                                                           Thailand             (4,3%)
                                                                           China                (4,2%)
                                                                           United Arab Emirates (4,1%)

Source: Trade Map, 2018

Figure 4: EXPORTED VALUE OF SUGAR AND SUGAR CONFECTIONERY

                                                                           Mozambique              (16%)
                                                                           Namibia                 (14%)
                                                                           Malaysia                (12%)
                                                                           Botswana                (10%)
                                                                           China                    (8%)

Source: Trade Map, 2018

                                                 CHAPTER 1    SECTOR PROFILE
9           AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

    South Africa is one of the world’s leading competitive              in particular of 2015-2016 which is considered the worst
    producers of high quality sugar and the key component is its        drought in 30 years.
    exports infrastructure. The raw sugar exports are handled at
    the sugar terminal in Durban. The terminal provides storage         Additionally, for the past decade the South African Sugar sub-
    and handling facilities. In addition, it also houses a unique       sector has been faced with tighter profit margins due to the
    molasses mixing plant which coats bulk raw sugar at the             stagnant and in some areas declining yields and rising input
    time of loading to produce variable levels of quality as per        costs. Other factors such as imports and the implementation
    international buyer specifications (DAFF, 2016).                    of the so-called sugar tax (the Health Promotion Levy on
                                                                        sugary drinks) have had a negative impact on the sub-sector
    Within the SADC region there are16 member states of which           to the extent that cane farmers have appealed to President
    11 produce sugar and South Africa is the largest producer.          Ramaphosa to intervene.
    To enhance the Regional Sugar Strategy, an action plan has
    been developed. The main objectives of the Action Plan is           According to the South African Sugar Association (SASA),
    (1) to promote the production and consumption of sugar              the SA Sugar industry is at a critical tipping point, where
    and sugar-containing products according to fair trading             the policy environment is not conducive for the survival and
    conditions and (2) to promote an orderly SADC market                growth of the Sugar sub-sector. The industry needs a “game
    (SASA, 2016).                                                       changer”.

                                                                        SASA believes that diversification into fuel ethanol
    ECONOMIC OUTLOOK OF THE                                             production from Sugarcane and other renewable products,
    SUB-SECTOR                                                          procurement of Sugarcane cogenerated electricity and
                                                                        enabling legislative conditions will improve the sustainability
    Similar to other agricultural sub-sectors, the Sugar sub-sector     of the sub-sector as a whole (SA Sugar Directory 2019/20).
    was affected by the drought conditions of the past few years,

    Figure 5: PROVINCIAL DISTRIBUTION OF SUGAR EMPLOYERS REGISTERED WITH AGRISETA

      90%
                     79,8%
      80%

      70%

      60%

      50%

      40%

      30%

      20%
                                  13,5%
      10%                                     3,1%        0,9%        0,9%       0,9%        0,4%        0,4%        0,4%
       0%
                      KwaZulu-   Mpumalanga   Gauteng    Limpopo      Eastern    Blanks      Western    Northern    Free State
                       Natal                                           Cape                   Cape       Cape

    Source: AgriSETA employer data, 2019/20

                                                            SUGAR       SUB-SECTOR SKILLS PLAN
10

The figure above shows that the vast majority of Sugar          which represents over 11% of the total agricultural workforce
employers registered with AgriSETA are in KwaZulu-Natal         in South Africa. Indirect employment is estimated at 350
(79,8%), followed by Mpumalanga (13,5%) and Gauteng             000 jobs. Approximately one million people or 2% of South
(3,1%). The provinces with the least number of employers        Africa’s population depend on the Sugar industry for a
registered on AgriSETA database in the Sugar sub-sector         living. An important feature of the Sugar sub-sector is that
are the Northern Cape and Limpopo (0,4%). It is important       it provides employment in rural and deep rural areas in job
to note that the AgriSETA database does not represent all       starved regions (mostly in KwaZulu-Natal and Mpumalanga)
farming enterprises in the country, and thus must be treated    where there is often little other economic opportunity.
with a fair degree of caution when applying it to a national
context.                                                        A major setback is that Tongaat Hulett, the largest employer
                                                                on the KZN North Coast, has retrenched 5 000 people as
                                                                part of stringent cutbacks to avoid financial disaster (North
1.5 L ABOUR MARKET                                             Coast Courier 11 September 2019).

     PROFILE                                                    The broader South African agricultural sector is one of the
                                                                biggest employers in the country. In the first quarter of 2019,
                                                                Stats SA reported that a total of 837 000 people were
PROVINCIAL DISTRIBUTION OF                                      employed in the sector. The table below illustrates that 27%
                                                                of employment is in the Western Cape Province for Q1:2019
EMPLOYEES                                                       accounting for the majority of employees in the sector,
                                                                followed by Limpopo and KwaZulu-Natal.
According to the South African Sugar Association (SASA,
2019), the Sugar sub-sector provides 85 000 direct jobs,

Table 6: DISTRIBUTION OF EMPLOYEES BY PROVINCE IN AGRICULTURE, 2019

                             Province                                Q4 (2018) (Thousands)         Q1 (2019) (Thousands)
 Western Cape                                                                               213                          225
 Eastern Cape                                                                               78                            84
 Northern Cape                                                                              39                             41
 Free State                                                                                 57                            60
 KwaZulu-Natal                                                                             136                            134
 North West                                                                                 62                             62
 Gauteng                                                                                     31                            31
 Mpumalanga                                                                                 96                             76
 Limpopo                                                                                   138                           124
Source: Statistics South Africa, 2019. Quarterly Labour Force Survey. 1st Quarter 2019

According to the 2019/20 WSP submissions, the Sugar sub-        sub-sector’s employees are concentrated in KwaZulu-Natal
sector has a total of 13 678 employees. The figure below        (75%), while the remaining 25% of employees work in
outlines the Sugar employees’ distribution by provincial        Mpumalanga. It has to be put into consideration that the data
breakdown. Consistent with the data presented earlier, data     only represents entities who submitted 2019/2020 WSPs.
from the AgriSETA WSP submissions shows that the Sugar

                                                  CHAPTER 1    SECTOR PROFILE
11           AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

     Figure 6: PROVINCIAL BREAKDOWN – SUGAR EMPLOYEES

     100%
      90%
       80%
       70%
       60%
       50%
       40%
       30%
       20%
       10%
        0%
                                   KwaZulu-Natal                                  Mpumalanga
         Percentage                       75%                                           25%

     Source: Cape Wools SA, 2019

     GENDER
     The graph below gives a breakdown of the Sugar sub-sector by gender as reported in the WSP submissions (2019/20). Data
     shows that the highest proportion of employees are male, accounting for 72% of total employment, while females make up the
     other 28%.

     FIGURE 5: EMPLOYEES BY GENDER

                                                                                  Male              (72%)
                                                                                  Female            (28%)

     Source: AgriSETA WSP Submissions, 2019/20

                                                         SUGAR      SUB-SECTOR SKILLS PLAN
12

RACE
The WSP (2019/20) shows that the vast majority of employees in the sub-sector are black Africans (86%), followed by Indian
employees (8%), and White employees (5%). Coloured employees only represent 1% of people employed in the Sugar sub-
sector.

Figure 8: EMPLOYEES BY RACE

                                                                             African                (86%)
                                                                             Indian                  (8%)
                                                                             White                   (5%)
                                                                             Coloured                (1%)

Source: AgriSETA WSP Submissions, 2019/20

AGE
The majority of people employed in the Sugar sub-sector (by employers that submit WSPs) are between the age of 35 and 55
(55%); followed by employees considered as youth (less than 35) at 32%. Employees older than 55 years account for 13% of
all employees in the sub-sector. Overall, approximately 87% of employees in the sector are less than 55-years old.

Figure 9: EMPLOYEES BY AGE

                                                                             35 to 55               (55%)
                                                                             55                    (13%)

Source: AgriSETA WSP Submissions, 2019/20

                                                CHAPTER 1      SECTOR PROFILE
13           AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

     OCCUPATIONAL CATEGORIES
     Looking at the existing skills levels in the Sugar sub-sector as reported in the 2019/20 WSPs, it is clear that skills vary from
     highly skilled managerial and professional occupations to relatively low level skilled elementary occupations with majority
     of employees (37%) on elementary occupations followed by Plant and Machine Operators and Assemblers(26,1%). The
     occupation with the least number of employees is Services and Sales Workers (1, 4%).

     Figure 10: Occupational Categories in the Sugar Sub-sector

       45%

       40%           37,0%

       35%

       30%
                                   26,1%
       25%

       20%

       15%
                                                  11,4%
                                                                     8,1%
       10%
                                                                                         6,3%          5,4%
        5%                                                                                                              4,3%
                                                                                                                                          1,4%
        0%
                    Elementary     Plant and   Technicians and       Skilled            Managers   Clerical Support   Professionals   Service and Sales
                    Occupations    Machine        Associate        Agricultural,                       Workers                            Workers
                                   Operators                        Forestry

     Source: AgriSETA WSP Submissions, 2019/20

     1.6. CONCLUSION

     The current chapter has indicated that the Sugar subsector
     has 229 employers registered with AgriSETA, contributes
     R39 million to the SDL and has a total of 13 687 employees.
     It has also been indicated that the employees are dominantly
     males and the dominating race is black Africans. Having
     a firm sense of the Sugar sub-sector 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 identify key macro socio-economic
     and environmental factors that function as key change drivers
     in addressing skills development in the agricultural sector.

                                                                 SUGAR             SUB-SECTOR SKILLS PLAN
14

CHAPTER 1   SECTOR PROFILE
15   AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

                             CHAPTER 2
                                                     KEY SKILLS ISSUES

                                                SUGAR     SUB-SECTOR SKILLS PLAN
16

2.1. INTRODUCTION                                                     transfers of their properties to black growers. This led to 18
                                                                      789 hectares being transferred to 170 black growers. Today
                                                                      there are more than 74 600 hectares of freehold land that
                                                                      have been transferred. Currently, approximately 130 000
This chapter is concerned with two specific areas that shape
                                                                      hectares are under land claim (SA Sugar Industry Directory
the key skills issues in the Sugar sub-sector. Firstly, the bulk of
                                                                      2019/20).
this chapter will be concerned with identifying factors that are
driving change in the sub-sector; factors that are influencing
the need for a particular skill set or rendering them irrelevant      THE YOUTH BULGE AND SKILLS
in an ever changing world.                                            DEVELOPMENT
Secondly, the alignment of sector skills planning to national         Youth, people aged 15 – 35, comprise 36% of the South
strategies and plans will be analysed to provide a snapshot           African population and 70% of the unemployed (Stats SA,
of the key policy and planning documents that shape skills            2016). It was reported that black Africans today, aged
planning in the Sugar sub-sector.                                     between 25 and 35, are less skilled than their parents
                                                                      would have been. This presents a huge challenge for skills

2.2. CHANGE DRIVERS                                                   development generally and specifically for the agricultural
                                                                      sector, with a waning interest in agriculture and rapid
                                                                      urbanisation. This lack of interest in agriculture by the youth
                                                                      of South Africa is in line with Kane-Berman (2016) who
There are general factors (land & agrarian reform, the youth
                                                                      reported that young people do not find agricultural careers
bulge, technology and mechanisation, and Brexit) and
                                                                      attractive. The South African Confederation of Agricultural
specific sub-sector issues (gender representation, disease
                                                                      Unions (SACAU) has called on stakeholders to recognise
and pest, sugar tax, competition and cheap imports) that
                                                                      agriculture as a “high skilled business with great opportunities
presently influence skills demand and supply in the Sugar
                                                                      for the youth” (AgriSA, 2016). But when youth are largely
sub-sector. These were identified through thematic synthesis
                                                                      unskilled or undereducated, there needs to be major up-
and triangulated through internal and external stakeholder
                                                                      skilling across the board before they can take advantage
engagement, desktop research and policy documents.
                                                                      of available employment opportunities. Demographically,
                                                                      there is a generalised mismatch between the demand for
LAND AND AGRARIAN REFORM                                              skilled labour and the supply of unskilled labour.

Government targets transferring 30% of agricultural land to
black ownership by 2025 as a form of redress for historical
                                                                      BREXIT & EU TRADE AGREEMENTS
issues of dispossession (Xingwana, 2008). However, the
                                                                      While the effects of Brexit on South African agribusiness are
success of land reform to date has been limited with no
                                                                      yet to become clear, what is clear is that South Africa would
increase in production or economic growth. This is because
                                                                      have to renegotiate its trade agreements with the UK. Senior
many beneficiaries lack the necessary production skills and
                                                                      agricultural economist in the Agricultural Business Chamber,
business acumen to farm effectively. It was reported in July
                                                                      Mr Wandile Sihlobo, commented that market access benefits
2016 that land reform has the potential to “deter investment
                                                                      that existed through the agreement would no longer apply
in agribusiness activities” and that the “growing exodus of
                                                                      (Mchunu, 2016). Agricultural subsidies are one of the key
South African farmers” could have a “detrimental impact on
                                                                      issues related to Brexit. The UK is a critic of current European
the agribusiness sector, depriving it of knowledge and skills”
                                                                      subsidies which have historically had an impact on African
(BMI, 2016).
                                                                      farmers’ export capacity (Sow &Sy, 2016). The outcome of
                                                                      renegotiated trade agreements will have to be monitored.
Land reform in the Sugar sub-sector commenced in 1996
when Illovo Sugar and Tongaat Hulett Sugar initiated land

                                                        CHAPTER 2     KEY SKILLS ISSUES
17          AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

     TECHNOLOGY AND                                                    The South African government protects the Sugar industry
                                                                       from imports by using an import tariff, based on a dollar-
     MECHANISATION                                                     based reference price (DBRP). In view of the cheap imports
                                                                       – reportedly 417 959 tons between April 2017 and March
     Development and production enterprises in agriculture             2018 – the South African Sugar industry requires enhanced
     place an emphasis on technological advancement to                 import protection (for example, through an increase in the
     increase productivity and keep up with increasing demands         DBRP or capping import volumes) to survive in the long-term.
     for food. However, there has not been a concomitant focus         With support from the Department of Trade and Industry and
     on advancing technological skills in the sector. BMI (2016)       the Department of Economic Development, SASA made an
     reported that the agricultural mechanisation rate in Africa is    urgent application to the International Trade Administration
     the lowest in the world.                                          Commission to review the dollar-Based reference price to
                                                                       stop the flood of imports. Over 2 000 industry stakeholders,
     The threatening maxim of the sector is that “as agriculture       mainly small-scale black farmers, marched to Pretoria in
     becomes more mechanised, the unskilled labour force is            support of the application. In August 2018, a new DBRP of
     replaced by a significantly smaller skilled labour force”         $680 was gazetted.
     (Employment Conditions Commission, 2013). Nevertheless,
     South Africa’s situation is somewhat different to the rest of
     Africa. For instance, South Africa, Morocco and Tunisia           SUGAR TAX
     comprise the majority Africa’s new tractor sales (BMI,
     2016). Thus, to remain competitive globally, skills training      Another factor driving change is the sugar tax, formally
     in agriculture needs to keep up with technological progress.      called Health Promotion Levy (HPL) which came into effect
     Internal consultation with AgriSETA staff reveals that there is   on 1 April 2018. It has reduced local demand for sugar due
     an increasing demand for artisans and technically qualified       to the reformulation initiatives by beverage manufacturers,
     workers in response to increased mechanisation in the sector.     such as substituting sugar with non-nutritive sweeteners.

                                                                       The HPL increases from 2.1 cents to 2.21 cents for every
     GENDER REPRESENTATION                                             gram of sugar per 100ml, with the first four grams of sugar,
                                                                       about one teaspoon of granulated sugar, being exempt from
     Data shows that the highest proportion of employees in            taxation. For example, the first three teaspoons of a 330ml
     the Sugar sub-sector is male, accounting for 72% of total         can of Coke (which contains just above eight teaspoons of
     employment, while females make up the other 28%. This             sugar) are not taxed. The remaining five teaspoons are taxed
     is a challenge for gender equality and must be addressed          at a rate of 2.21 cents per gram.
     with intensive gender programs focusing on gender
     empowerment and skills development.                               The South African Cane Growers Association say that the
                                                                       sugar tax cost the industry R925-million during the 2018-19
     COMPETITION AND CHEAP                                             financial year (Health-e, 1 April 2019). The South African
                                                                       Sugar Association said that estimated revenue loss would
     IMPORTS                                                           almost certainly translate into more job losses which could
                                                                       put up to 10 000 jobs at risk in the cane growing sector
     South Africa is generally a net exporter of sugar. This is due
                                                                       alone (SASA, 2019). National Treasury’s Mpho Legote told
     to local production, on average, being greater than the local
                                                                       Health-e that current estimates on job losses are guesswork
     demand for sugar. The industry price realised for export
                                                                       and that the government will assess HPL’s impact on jobs.
     sugar is typically lower than local prices due to a distorted
     world market, which can partly be attributed to many sugar
     producing countries benefitting from production subsidies
     and other government interventions.

                                                             SUGAR     SUB-SECTOR SKILLS PLAN
18

DISEASE AND PEST IN THE SECTOR                                    and the like, with a focus on developing their skills capacities
                                                                  to meet the needs of their particular environments, thereby
The disease and pests affecting the industry are:                 closing the gap between the rural and urban South African
•      Eldana saccharina                                          economies.
•      Yellow sugarcane Aphid
•      Longhorn Beetle                                            NSDP is informed and guided by the following overarching
                                                                  government plans:
These diseases and pests have increased in some regions           •	The National Skills Accord as one of the first outcomes
and it is critical to continually research and manage the               of the New Growth Path, the Industrial Policy Action
situation so as to minimise the impact on crop yield. Projects          Plan, 2013/14 – 2015/16 (IPAP).
and initiatives are constantly implemented by the industry to     •	The Comprehensive Rural Development Programme,
attempt to find cost effective solutions to protect crops from          the Human Resources Development Strategy for South
the entry and spread of pests and disease. This requires the            Africa 2030.
availability of a specialised team with extensive entomology      •     The National Development Plan 2030 (NDP).
and plant pathology expertise.                                    •	   The Integrated Sustainable Rural Development
                                                                        Strategy (ISRDS).

2.3 ALIGNMENT                                                    Collectively, these government plans and programmes
                                                                  recognise the need for correcting structural imbalances in
     WITH NATIONAL                                                the economy through “decent employment through inclusive

     STRATEGIES AND                                               growth”, “a skilled and capable workforce to support an
                                                                  inclusive growth path”, “vibrant equitable and sustainable

     PLANS                                                        rural communities contributing towards food security for
                                                                  all”, to “protect and enhance our environmental assets
                                                                  and natural resources”, with the support of “an efficient,
                                                                  effective and development-oriented public service” (NDP).
There are national strategy and planning documents that
                                                                  These priorities speak to the need for relevant and targeted
frame AgriSETA’s mandate for skills development. The
                                                                  skills provision that promotes economic sustainability in
legislative and policy frameworks speak to AgriSETA’s
                                                                  the agricultural sector, as well as meeting the needs of all
constitutional mandate as a public institution governed by
                                                                  South African communities (rural and urban) in terms of food
the Public Finance Management Act (PFMA) to develop
                                                                  provision and sustainable livelihoods.
skills programmes in accordance with the Skills Development
Act (1998), the Skills Development Levies Act (1999) and
the National Qualifications Framework Act (2008).                 2.4 IMPLICATIONS FOR
There are two seminal strategic documents that underpin                SKILLS PLANNING
AgriSETA’s mandate for skills planning, namely: The White
Paper on Post School Education & Training (2013) and the
National Skills Development Plan. Both these documents            The legislative and policy frameworks established by
highlight the SETAs’ roles in developing clear, sector-specific   government coupled with the contextual change drivers and
linkages between education and the workplace through an           industry specific perspectives on skills development, point to
analysis of the demand and supply of skills in their sector.      the following skills implications that need to be addressed in
These documents call for credible institutional mechanisms        the Sugar Sub-sector Skills Plan.
for skills planning, programmes that are occupationally
oriented, and responsive higher and further education and         1.	Partnerships with Higher Education Institutions (HEIs)
training institutions. Furthermore, attention should be given         for research and development into the sub-sector.
to the needs of local, community enterprises, co-operatives

                                                    CHAPTER 2     KEY SKILLS ISSUES
19          AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

     2.	The need for occupationally oriented skills training
         that offers in-the-field experience and mentorship.
     3.	Environmental concerns related to food security and
         ecological sustainability.
     4.	Improved quality of agricultural extension services
         qualifications.
     5.  Gender empowerment & development
     6.	Development of governance skills focusing on co-
         operatives and small agricultural enterprises.

     2.5 CONCLUSION

     There are general and specific sub-sector factors driving
     change and influencing skills demand and supply in the
     Sugar sub-sector. The main factors are: land and agrarian
     reform (as part of country’s transformation strategy); the
     youth bulge (youth’s lack of skills and lack of interest in
     agriculture); technology and mechanisation (increasing
     mechanisation means more technical people/ artisans
     are needed); Brexit (possibly requiring the signing of new
     trade agreements); gender representation (the imperative
     of increasing the number of females in the industry); disease
     and pest (requiring specialised skills); the sugar tax (formally
     called the Health Promotion Levy that reduces use of Sugar);
     and cheap imports (increasingly impacting negatively on
     revenue).

     Legislative and policy frameworks established by government
     coupled with the contextual change drivers and industry
     specific issues, point to six skills implications that need to be
     addressed in the Sugar sub-sector.

     Chapter 3 will elaborate on the specific demand and
     supply of skills in the Sugar sub-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.

                                                               SUGAR     SUB-SECTOR SKILLS PLAN
20

CHAPTER 2   KEY SKILLS ISSUES
21   AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

                             CHAPTER 3
                OCCUPATIONAL SHORTAGES
                AND SKILLS GAPS

                                                SUGAR     SUB-SECTOR SKILLS PLAN
22

3.1. INTRODUCTION                                                3.2. E XTENT AND
                                                                       NATURE OF
Chapter 3 reflects the research completed on skills demand
and supply in the Sugar sub-sector. Information was
                                                                       DEMAND
gathered from previous sector skills plans and data from
workplace skills plans (2019/2020 submissions), as well as
                                                                 In general, it is not difficult to fill vacancies in the Sugar sub-
engagement with AgriSETA stakeholders.
                                                                 sector.

Engagements included interviews, surveys and limited focus
groups with external partners, stakeholders and AgriSETA         OCCUPATIONAL SHORTAGES
member companies, as well as consultation with internal
                                                                 AND SKILLS GAPS
stakeholders, conducted between 2018 and 2019. Effort
was taken to ensure cross sectoral inputs were obtained
                                                                 Hard-To-Fill Vacancies (HTFVs)
by reaching out to large levy payers, industry bodies,
                                                                 The analysis conducted has identified the hard-to-fill vacancies
government departments as well as emerging small scale
                                                                 (HTFVs) and skills issues as they pertain to the Sugar sub-sector.
entrants in the sector.
                                                                 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. The needs of small-emerging
                                                                 farmers and co-operatives are addressed first, followed by the
                                                                 needs of commercial farmers.

Table 7: SMALL EMERGING FARMERS AND CO-OPERATIVES HARD-TO-FILL VACANCIES

      Sub-sector                            Skills and/or Qualifications Gaps                                   OFO Code
                        Further Education and Training Certificate: Manufacturing Technical
                                                                                                               2017-653301
                        Maintenance
 Sugar                  General Education and Training Certificate: Horticulture National
                                                                                                               2017-653301
                        Certificate: Agricultural Machinery Technician
                        National Certificate: Plant Production                                                 2017-613101

Table 8: COMMERCIAL FARMERS HARD-TO-FILL VACANCIES

      Sub-sector                            Skills and/or Qualifications Gaps                                   OFO Code
                        National Certificate: Plant Production                                                 2017-611304
                        National Certificate: Fruit Packing and Grading Processes                              2017-134916
 Sugar
                        National Certificate: Farming                                                          2017-613101
                        National Certificate: Agricultural Machinery Technician                                2017-653301
                        National Diploma: Agri Sales and Service Management                                    2017-122101
                        Further Education and Training Certificate: Manufacturing Technical
                                                                                                               2017-653301
                        Maintenance

                                                CHAPTER 3        OCCUPATIONAL SHORTAGES AND SKILLS GAPS
23          AGRICULTURE SECTOR EDUCATION TRAINING AUTHORITY SUB-SECTOR SKILLS PLAN

     The following table outlines the top HTFVs as identified by external stakeholders in the Sugar sub-sector.

     Table 9: TOP HARD-TO-FILL VACANCIES (STAKEHOLDER ENGAGEMENT)

                 HTFVs                          Reason                     Demand and Supply                SETA intervention
                                                                                                       Mentoring programmes
                                                                                                       Graduate programmes
                                  Limited skills and experience
      Artisans                                                         Mentoring in high demand.       Internships
                                  Salary expectation too high
                                                                                                       Work Integrated Learning
                                                                                                       Increase grants/funding
                                                                                                       Mentoring programmes
                                                                                                       Graduate programmes
                                  Limited skills and experience
      Engineering Resources                                            Mentoring in high demand.       Internships
                                  Salary expectation too high
                                                                                                       Work Integrated Learning
                                                                                                       Increase grants/funding
                                                                                                       Mentoring programmes
                                                                                                       Graduate programmes
                                  Limited skills and experience
      General Managers                                                 Mentoring in high demand.       Internships
                                  Salary expectation too high
                                                                                                       Work Integrated Learning
                                                                                                       Increase grants/funding
                                                                                                       Mentoring programmes
                                                                                                       Graduate programmes
      Economists/ Research        Limited skills and experience
                                                                       Mentoring in high demand.       Internships
      Economists                  Salary expectation too high
                                                                                                       Work Integrated Learning
                                                                                                       Increase grants/funding
                                                                                                       Mentoring programmes
                                                                                                       Graduate programmes
      Pan Boilers                 Limited skills and experience        Mentoring in high demand.       Internships
                                                                                                       Work Integrated Learning
                                                                                                       Increase grants/funding
                                                                                                       Mentoring programmes
      Panel Operations                                                                                 Graduate programmes
      Boilers                     Limited skills and experience        Mentoring in high demand.       Internships
      Process                                                                                          Work Integrated Learning
                                                                                                       Increase grants/funding
                                                                                                       Mentoring programmes
      Researchers/
                                                                                                       Graduate programmes
      Scientists Knowledge
                                                                       Mentoring in high demand.       Internships
      Management, Innovation
                                                                                                       Work Integrated Learning
      Specialist
                                                                                                       Increase grants/funding
                                                                                                       Mentoring programmes
                                                                                                       Graduate programmes
      Specialist Technicians                                           Mentoring in high demand.       Internships
                                                                                                       Work Integrated Learning
                                                                                                       Increase grants/funding

                                                            SUGAR      SUB-SECTOR SKILLS PLAN
24

A series of key-informant interviews were conducted with           3. National Certificate: Plant Production
large levy payers and industry players. The findings emerging      4.	
                                                                      National Diploma: Agri Sales and Service
from these interviews corroborate the skills needs outlined           Management
above. Overall, similar to other agricultural sub-sectors,         5.	
                                                                      National Certificate: Perishable Produce Export
stakeholders across occupations in the Sugar sub-sector               Technology
expressed having challenges with recruiting and retaining
skilled staff in rural areas. Furthermore, they highlighted the    Major skills gaps at a major occupational level in the
need for technical and specialised skills that were being lost     agricultural sector
when experienced professionals exit the workforce.
                                                                   Given the preceding evidence of stakeholder engagement
To solve the HTFV problem, more people need to enrol and           and analysis, the following scarce skills and skills gaps list has
complete the following five qualifications:                        been compiled to guide AgriSETA in its skills development
1.	   Further Education and Training Certificate:                 priorities going forward. Table 10 gives a list of occupations
       Manufacturing Technical Maintenance                         of scarce skills and skills gaps relevant to the Sugar sub-
2.     National Certificate: Farming                               sector at a major occupational level.

Table 10: SCARCE SKILLS AND SKILLS GAPS LIST

 OCCUPATION         MAJOR OFO
                                        OCCUPATION                      SPECIALISATION/ ALTERNATIVE TITLE
    CODE             GROUP
                                                             Dairy farm manager, Arboriculture Farm Manager, Field
                                                             Vegetable Farm Manager, Mixed Crop and Livestock Farm
                                      Agricultural Farm
 2017-131101       Managers                                  Manager, Ornamental Horticultural Farm Manager Livestock Farm
                                      Manager
                                                             Manager, Sugar Farm Manager, Horticultural Farm Manager,
                                                             Mixed Crop Farm Manager, Vegetable Farm Manager
                   Skilled
                   Agricultural,      Mixed Crop
                   Forestry,          Farm Production
 2017-611401                                                 Mixed Crop Production Supervisor, Mixed Crop Farm Foreman
                   Fishery, Craft     Manager /
                   and Related        Foreman
                   Trades worker
                                                             Harvester Operator
                                                             Agricultural Machine and Equipment Operator
                                                             Cotton Picking Machine Operator
                   Plant and          Agricultural
                                                             Tractor Driver
                   Machine            Mobile Plant
 2017-734101                                                 Rotary Hoe Operator
                   Operators and      (Equipment)
                                                             Agrichemical Spraying / Dusting Operator
                   Assemblers         Operator
                                                             Farm Equipment / Machinery Operator
                                                             Chemical Applicator
                                                             Agricultural Mobile Equipment Operator

                                                     CHAPTER 3     OCCUPATIONAL SHORTAGES AND SKILLS GAPS
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