Turning livestock owners into livestock farmers

“We wanted to take people from being livestock owners to being livestock farmers”.

My ears pricked up. The words were spoken by Nicky McLeod at the WWF SA Living Planet Conference in Menlyn, Pretoria. She and Sissie Matela had been awarded the WWF SA 2019 Living Planet Award [see separate blog].

The latest Profile of the South African Beef Market Value Chain (2018) speaks of there being some 240 000 small-scale farmers and 3 million subsistence farmers that own around 5.69 million cattle (DAFF, 2018). The challenge has always been to bring these people section into the value chain. There have been various studies and initiatives to this end (see “Beef cattle farming” page). 

The ideal of nature conservation is when it is linked with the wellbeing of people. This is what has happened since 2013 in the northern part of the Eastern Cape. The Umzimvubu Catchment Partnership – a grouping of Conservation SA and local NGOs like LIMA Rural Development Foundation, the Institute for Natural Resources, and Environmental and Rural Solutions – and the community have undertaken several projects, one of which is Meat Naturally.

Meat Naturally has gone hand-in-hand with rotational grazing and other Good Agricultural Practice – and seen 3 000 hectares of rangeland restored. Mobile livestock auctions have seen R30 million income and 900 resultant “jobs”.

Other projects involve beekeeping, river health, making charcoal and EcoFutures, the latter being a 12-month internship bringing youth into the green economy.

Read more at https://umzimvubu.org

Matatiele duo wins Living Planet Award 2019

Press release

Two women who are the powerhouse behind a non-profit, social enterprise organisation, Environmental and Rural Solutions, based in Matatiele in the Eastern Cape have been named the winners of WWF South Africa’s Living Planet Award for 2019.

Nicky McLeod and Sissie Matela, Living Planet Award winners 2019

Sissie Matela and Nicky McLeod were named the winners of this prestigious environmental award at WWF’s Annual Living Planet Conference which took place in Pretoria yesterday. The award recognises exceptional South Africans who inspire people to live in harmony with nature for the benefit of our country and the wellbeing of all.

This year’s conference delved into South Africa’s food system and the challenges that lie ahead as we grapple with under nutrition and the environmental degradation and climate impact of food production and consumption. Among the participants were celebrity chef Zola Nene, agricultural economist Wandile Sihlobe and the director of the Southern African Food Lab Scott Drimie.

Introducing the award winners, CEO of WWF South Africa Dr Morné du Plessis, said: “Today we honour two women who had a vision 10 years ago, for both people and nature; a vision to engage multiple partners and many local communities while addressing diverse yet inter-connected social and environmental needs.

“Over the last decade, the ERS has convened and led the Umzimvubu Catchment Partnership Programme which brings together 35 organisations to govern the landscape and the water resources in the area. It is here that the vision and passion of these two remarkable woman has created one of South Africa’s most innovative and collaborative approaches and catchment management models.”

The Umzimvubu River and its surrounds is home to some 20% of the Eastern Cape’s population (1.4 million people) and is one of South Africa’s few remaining near natural river systems. With 70% of the land under communal ownership, those who live along its course are highly dependent on the river system for water, grazing, household materials and local food security.

Upon hearing the news of the award, the duo responded: “This is such an honour for us and our little enterprise! We have been plodding along, hoping that we are changing lives and hopefully the grass is growing green and the water is getting clearer. Recognition like this is so motivating and we want to do more. Our progress has not been just due to our own work but also our entire team and the fantastic partners we work with. As the saying goes, a ship cannot sail without the crew!”


More about the winners:

Lipalesa Sissie Matela (Director, ERS): With more than 20 years of hands-on experience, Sissie Matela is a soil scientist by training with a Masters in Agronomy and Soil Science. She has worked as a field soil scientist, university lecturer, researcher, trainer and director of ERS.She co-ordinated a development project in Lesotho and has worked for organisations such as the CSIR, IUCN, the World Bank and the Food and Agricultural Organisation.

Nicky McLeod (Director and Manager, ERS) has worked extensively in rural areas on development initiatives including soil conservation, low-input vegetable production as well as water supply and sanitation. With an Honours in Environmental Science and a diploma in environmental education and permaculture, she has 14 years of hands-on experience. Her skills range from conducting feasibility assessments and drawing up business plans to managing projects and facilitating community workshops. Nicky has also made inputs into policy debates that have led to the formalising of environmental laws in SA.

An account of a morning with the Masisizane Fund

We received (and accepted) the invitation from Nontobeko Vilakati for the 2019 MasisizaneFund Annual Client Market Day (#MasisizaneCMD19). The Masisizane Fund is “a non-profit funding entity established by Old Mutual in consultation with the National Treasury of South Africa following the closure of Old Mutual’s Unclaimed Share Schemes Trust”. It provides crucial support to SMMEs in the agribusiness, manufacturing and franchising sectors. 

I arrived at 107 Rivonia Road, and was shown where the event was taking place: the Old Mutual Retail Space. People milled around and I wandered to the showcased entrepreneur stands.

 The first was from the franchise sector. Masisizane had put up 50% of the capital required to acquire and operate the Caltex service station in 2018. At the far end was a co-funded 100% black-owned and operated legal business, and CTU Manufacturing Primary Co-operative. This co-op manufactures hospital linen and apparel/attire and uniforms. Another Masisizane client offers voice analysis technology (see www.lexforensica.co.za), but it was Bamboo Innovations Africa (BIA), obviously an agribusiness, that caught my attention and I wandered closer. 

BIA was begun in 2012 by Peloyotlhe Gabaraane, initially to manage projects aimed at growing and processing bamboo. For reasons including funding which did not arrive, Gabaraane switched to the fresh produce sector. While Gabaraane is engaged in a discussion with two others, I talk to Clement Mawele (Masisizane Fund) about the Masisizane funding model. Although, like banks, Masisizane takes into account things like assets and turnover, it is more interested in the business plan, the suppliers, market and partners. It was through its provincial offices that Gabaraane approached the Fund.

The opportunity arises to speak to Gabaraane, and excusing myself I step forward and greet him. He explains why he left bamboo after he had picked up an interest in cash crops. He accessed CASP funds offered by the Department of Agriculture which enabled him to become visible, he says. It was the loan from the Masisizane Fund though which enabled him to acquire and construct the closed-circuit hydroponic system in 2018 in the Klupmuts farming area in the Western Cape.  

BIA has 2 hectares under shade tunnels, and since it began operations in September 2018, has sold more than 400 000 heads of lettuce. He speaks of challenges posed by pests and diseases, and how he uses integrated pest management (including biocontrol) to manage these. Among his customers are Shoprite, Spar, Pick n Pay. A packhouse is planned in the future as doors are opening for the business. But proceedings have begun, we must leave it there and I make my way to a chair.

We hear from personnel like Zizipho Nyanga (CEO) and Tabby Tsengiwe how access to funding and markets are the problems for entrepreneurs, and how Masisizane has funded 400 enterprises (29% in agriculture).

A panel discussion takes place, with four clients of the Masisizane Fund answering and discussing questions put to them, and then fielding questions from the floor.

 What is Gabaraane favourite South African brand? The South African flag, he says. There is a South Africa out there that is “real”, he says; that is not trying to hide anything. We should stand behind it. He is very positive of the area and people where he farms, and says the most unlikely characters greet him.

How has Masisizane Fund helped him? He speaks of how Black farmers struggle to become visible; how many opportunities lie just out of reach. He needed infrastructure to grow lettuce, to switch to a better way of farming. Hydroponics is the ideal for him: it is environmentally-friendly; saves water; because the crop isn’t grown in soil it is easier to prepare for market. The assistance provided him means he can compete on a global level now. It is “a complete transformation!”

He describes further the expertise that he has picked up – being able to identify pests and diseases, recognising what nutrients are lacking in the crop and how to address this. Previously he had to depend on another’s expertise. It is “priceless” what he has gained.

His encouragement to budding entrepreneurs is that opportunity will come from someone, somewhere. Diligence right from the beginning is important. The diligence begins with the forms you have to fill in when applying for loans. He speaks about how his lead began with a phone number on the Department of Agriculture website; how after his first unsuccessful interview for CASP funding he refined his business plan and how he applied again because the vetting staff “hadn’t heard him”.

You don’t need “fancy words” to get there. You need vision. And to ASK.

The CTU Manufacturing Primary Co-operative was asked “why the co-operative model?” Her answer was another takeaway. Co-ops teach responsibility and self-reliance. People are partners, not employees. There is accountability on a daily basis. At the end of the day each person knows what their contribution has been because there are agreed measurables to be complied with.

 The keynote speaker, Andile Khumalo, referred to the observation that there are more people in the welfare system than there are in employment. South Africa is a rich country filled with poor people – 55% of the population lives on less than R1 000 a month.

Tambo and Mandela met the challenges of their time. (1)The challenge of today is income inequality. (2) Entrepreneurship is the answer. (3) Creating economic opportunities in townships and in the rural areas – where people live – is where entrepreneurs should focus. Khumalo tells us that Ga-Rankuwa, an area some 40 kilometres north of Pretoria, is the most expensive area in the country to live in – because of the proportion of income that must be spent on travelling to the urban areas.

After a short address by Iain Williamson, Chief Operating Officer. He cuts the Masisizane Fund's birthday cake (it's the 12th anniversary of its founding) and we break for a light lunch.

Relevant pages on AgribookDigital include "Finance for new farmers & SMMEs", "Hydroponics & undercover growing", "Co-operatives", "Vegetables" and "The urban question".

Commercial farmers: brainstorming solutions

The hall fills up for the summit

Last week the media was invited to the TLU SA Economic Sustainability Summit. The issues are serious and the same, no matter which national farmer body represents you. State support for commercial agriculture is minimal. Farmers carry production risk completely on their own, even if the whole value chain is dependent on them for its existence.

The day saw presentations by three TLU personnel/members: Gawie van Rensburg and Prof Koos de la Rey of the Economic Sustainability Committee, and Bennie van Zyl, general manager of the TLU SA. A fourth speaker, Dr Gawie du Toit, is an agronomist in the private sector. These talks listed the financial, logistical, environmental, legislative and other challenges facing farmers. The last speaker used case studies to show that maximum returns do not always equate to maximum profit.

Gawie du Toit addresses the gathering. To the left is Bennie van Zyl; Gawie van Rensburg is on the right.

An hour plus saw contributions from the floor, followed by a summation from the TLU president, Louis Meintjies, along with the drawing up of a plan of action.

Is there a way to finance the farm outside of banks and agricultural businesses (the old co-ops)? What other models exist? How can we spread the risk more fairly and sustainably across the whole value chain? Gerrie Strydom, a business consultant, offered his services to source funds and to help with business plans and red tape.

There is encouragement for farmers themselves to become part of the wider value chain.

Finding alternative revenue streams was suggested. These included agritourism, medicinal plants, game meat, cheese and other value add activities, with an emphasis on product quality.

The value of export markets, Europe in particular, was emphasised. Skills and other assistance could be sought from there, and elsewhere. The TLU SA recently sent van Zyl to Israel to look at technology there.

Bennie van Zyl is a big advantage for the TLU SA, as anyone in commercial agricultural circles will confirm. No one who has experienced his smile and big handshake more than once forgets him. He is passionate about what he believes in, and makes solutions to problems seem simple. On this day - whatever your views are - there is much to agree on.

He champions the idea of having mega farms, not mega farmers. A group of farmers combining resources and buying power holds many advantages over farming on your own. These include:

• Securing finance and markets
• Gaining economies of scale
• Labour/access to mechanisation
• Greater access to expertise
• Safety and a sense of community
• Better bridges with consumers

These collective ventures would be contracts, with entrant and exit clauses, which translates into no-one having to carry dead wood, individuals who are not really contributing to the greater good.

Van Zyl also champions negotiations along the value chain to spread the risk. It is after all in the interests of the entire value chain (and rural communities and beyond) that commercial farmers stay in business.

Volunteers are called for to draw up a plan of action, after which lunch is served.

Relevant pages on Agribook.Digital include “Organised agriculture”, “Indigenous medicinal plants”, “Wildlife ranching”, “Exporting” and the whole "Adding value" section (which includes agritourism and dairy processing).

More readers write: a sample of recent requests

Dear Sir/ madam

I want to know what requirement needed if you need a loan to start a cows farming business. I have land the problem is start up capital of R80 000 and the big problem I am not in employment I'm age of 24.  
Thank you

Hi Fikakahle

If you already have land you should speak to your provincial department of agriculture and the IDC about their Nguni Cattle project. They give you ten cows (or whatever) and after a few years you give ten cows back, but by that time those cows have had calves and given you a chance to start your own herd.

You should also speak to NERPO, an organisation that helps people like you with their cattle operations. See http://nerpo.org.za/.

Most other groups will only help you if you have a mentor i.e. someone who is already a cattle farmer and who can show you the way, or if you have some training/qualification.

After that, I can only refer you to the "Beef cattle farming" and "Finance for new farmers and SMMEs" pages and hope with you that you get some assistance there. See https://agribook.co.za/livestock/beef-cattle/ and https://agribook.co.za/marketing-finance/finance-for-new-farmers-and-smmes/.

Best wishes,

 *******************************************************************

I am interested in starting a chicken farming business dealing with Specifically Layer Hens and Broiler Chickens so I need to get suppliers of chickens and info of chicken farming kind regards

Hi Lerato

There is a lot of information on the poultry and chicken farming page, see https://agribook.co.za/livestock/poultry/.

Suppliers of chicken are listed under the companies involved heading, see specifically the Some suppliers of chicks and breeding stock subheading at https://agribook.co.za/livestock/poultry/#companies.

There is help for interested new farmers. Find details of associations, people who do training and some very useful sources of information (brochures, articles and books), all on this web page.

Best wishes,

*******************************************************************

I'm interested in farming with emphasis on crop farming. Could you please assist me with more information on where I can get assistance on drawing up a professional agri-business plan. people that can also assist with soil profiling and suitability tests for my crops, fertilizer requirements and suitable irrigation methods for my crops.
Thank you in advance.

Hi Nathi

The main source of help will probably be your nearest provincial department of agriculture. They have laboratories, for example, to help with soil tests and advice for crops. They run short courses as well to impart the crucial skills that you will need. The Agricultural Research Council also does a lot of work in assisting people get their enterprises off the ground. There are many other sources of help which we run through on the emerging farmer support page. See https://agribook.co.za/issues-here-and-beyond-our-borders/emerging-farmer-support/.

The Department of Agriculture designed many publications, including one on business plans, which are available on its website. See https://www.daff.gov.za/daffweb3/Portals/0/General%20Publications/Training%20manuals%20Cooperatives%20BOOK%2007.pdf.

The different crops are listed under the agronomy, forestry & industrial crops and horticulture sections on our website. Find these under "Contents" on the landing page of the Agribook website. You will find the notes helpful whether you already know what you wish to grow or not.

Best wishes,

*******************************************************************

We have sunflower seeds around bloemfontein and we  would like you to link us with the buyers

Hi Graff

Marketing the crop can be as much work as growing it, unless you have this tied down before growing it. I'm trusting you aren't expecting the name and phone number of an individual who will accept the seeds and pay you today. I can't help you with that, but let's look at options.

• The South African Cereals and Oilseeds Trade Association (SACOTA) will be your first bet. See https://sacota.co.za/. 
• The nearest commercial silo owners are another. You will know the big silos near Bloem and be aware of which companies operate there. These will probably be Senwes or VKB. 
• You also have the option of seed sellers. The companies that sell sunflower seeds are listed at http://sansor.org/sunflower/ 
• You also have the option of selling them to supermarkets or pet shops as bird seed. There are probably health shops in Bloemfontein too who might be interested, particularly if your seeds are organically grown. 
• Finally, you could crush the seeds and sell the oil. There is usually more profit when you process the crop which will be true in your case too. Role players like the Agricultural Research Council (ARC) Agricultural Engineering could help you with equipment like this. The ARC has a presence at Glen, just outside Bloemfontein. There will be other role players there to give you advice.
  

My best wishes,

Jobs Fund assists Sekororo farmers to find markets for their produce

A programme supported by the Jobs Fund’s is benefitting black small-scale farmers in Sekororo, a rural community in Limpopo province that produces food that is sold all over South Africa.

The Sekororo farmers, who are participating in the Lima Smallholder Farmer Support Programme, have seen their farming enterprises being transformed overnight, thanks to the comprehensive assistance they are getting from the programme, which has helped them access markets and generate employment in an area where jobs are scarce.

The National Treasury’s Jobs Fund has partnered with the Lima Rural Development Foundation to support smallholder farmers in 22 sites across Limpopo, Eastern Cape, KwaZulu-Natal, Mpumalanga, and Free State. Sekororo, situated 69 kilometres from Limpopo’s farming town of Tzaneen, is one of the 22 sites benefitting from the Lima programme.

“The Jobs Fund’s objective is to catalyse innovative thinking about how the country can create more jobs and support a more inclusive economy. We have invested grant funding of R60 million to the Lima programme and we are confident that it will enhance job creation and provide tangible benefits to farmers across all 22 sites including Sekororo”, says Najwah Allie-Edries, Deputy Director General for Employment Facilitation.

The Lima Smallholder Farmer Support Programme is designed to deliver integrated support services to beneficiary farmers in the form of loans, agricultural inputs (fertilisers, feeds, seedlings), mechanisation, and technical advice. It also assists farmers to access markets for their produce through off-take contracts negotiated with food retailers and wholesalers. 

The programme aims to create 4, 700 jobs and equip 12, 800 farmers nationally with training in business management, annual crop production, and livestock production.  It has so far created just over 3,800 of these jobs.

One of the Sekororo farmers who is benefitting from the programme is poultry farmer and retired school principal, Khensani Mboweni, who joined the programme in August 2017. She employs seven people, of whom three are permanent, and supplies chickens to a reliable market that includes local residents and tshisa nyamas. The demand is so high she often needs to convince her customers to not take the chickens before they reach maturity. 

“I started poultry farming as a backyard project in 2009, producing between 200 and 250 chickens. As time went on, the community needed more chickens, so I built two extra houses for broilers and egg layers. I am currently producing about 3,100 chickens.  

“When I retired in 2017 after 40 years as a teacher, I joined the Lima programme. I have received two production loans from Lima, which I have paid off. I am now busy repaying my third loan of R64,000”, explains Mboweni, whose husband is an agricultural technician and cattle farmer.

Business is picking up for this former educator, who has since managed to buy a bakkie with the proceeds from the farm. 

A few kilometres from Mboweni’s farm is another female farmer, Lucy Hutamo, who is also a retired teacher. Hutamo practices irrigated crop farming on 7 hectares of land and was first assisted by Lima in April 2017 to access fertilisers and chemicals to spray her crops. 

She employs five permanent workers and supplies baby marrows, green pepper, brinjals, watermelons, and tomatoes to food markets in Cape Town, Pretoria, Johannesburg, and Durban. 

“I went to Lima to ask for assistance because I was not successful at farming due to lack of expertise and funding. They gave me technical advice and extended two loans that helped me buy chemicals and seeds.  Since then, we have developed a relationship with Lima that has led to a huge improvement in our business. We used to produce 100 crates of vegetables, but now we produce between 300 and 400 crates,” says Hutamo.

She employs five people on her farm and sells her produce via agents to fresh produce markets and to the agri-hub set up by Lima in Sekororo.  The agri-hub was implemented to assist farmers that seek to access Lima’s integrated support services.

“In the Sekororo site, we have created about 200 jobs through the production of cabbages and butternuts. The Sekororo agri-hub is crucial to supplying farmers with feeds, fertilisers, seeds, and medication, which we supply in partnership with input suppliers. We have about 800 farmers that are serviced by this agri-hub,” explains Lynette Parsons, Lima’s national programme manager.

So far the Sekororo agri-hub has off-take agreements with retailers such as Spar, Boxer Stores, and Fruit and Veg.  About 80% of fresh produce in South Africa is sold through informal markets, with street traders and hawkers being the main distributors.

Lima is in the process of identifying 10 Sekororo beneficiary farmers, who will be trained to take over ownership of the agri-hub. The plan is to have Lima officials gradually hand over responsibilities of managing the agri-hub to the 10 farmers. This will require that they transfer skills to the farmers. 

“The commercial partners (off-takers and input suppliers) are key to the future of the agri-hub. For instance, input suppliers do not only provide technical support to farmers, they also provide bulk discounts since the agri-hub buys in bulk for the farmers. These financial benefits are crucial for a place that used to battle with input supply as it is in a remote part of the country,” explains Parsons.

Lima is adding a pack house to the Sekororo project, where fresh produce from all farmers participating in the project will be aggregated, packaged, and delivered to customers. 

Crop farmer and former lecturer, Linda Ngatsane, has offered to share a pack house on her 21-hectare farm with other emerging farmers in the area.

“We have a pack house that we use to package our products such as green beans, cucumber, and sweet potatoes. Our aim is to brand and sell our products in shops and export markets,” says Ngatsane, who sells her produce to Johannesburg’s fresh produce market in City Deep and informal traders. 

The partnership between the Jobs Fund and Lima has laid a solid foundation for the future sustainability of the Sekororo smallholder farmers and more farmers in the area could end up joining the project to grow their farm ventures.

Read the "Emerging farmer support", "Finance for new farmers and SMMEs", "Poultry" and other pages on Agribook.Digital.

Exporting: 8 lessons from tiny Holland

One can understand the United States of America being the world’s biggest agricultural exporter, straddling a continent from Pacific to Atlantic Ocean. Its 9,834 million km2 dwarfs the 42 508 km2 of the Netherlands. So how does a country 273 times smaller than the USA come in at position 2 when we look closer at top agricultural exporters?

• The land given to agriculture has to prove itself. Holland is densely populated (1,300 inhabitants per square mile). This means that land for agriculture really has to prove itself!
• It supplements its (perfect) geography with greenhouses. This means controlled growing conditions with enormous savings of water (as much as 90% in some cases) and nearly no chemical pesticides needed.
• The country invests in its agricultural economy and in the future workforce with training. Fully funded scholarships are offered to prospective students. Institutions like Wageningen University are world famous in agricultural circles and students from across the globe come here to study.The university has an international leaning: 40% of students and research staff are not Dutch.
• Relevant research: The University is also 25% funded by the private sector which keeps research outputs relevant.
• Effective extension services: the Agricultural Council Offices - bridges the gap between the university and the farmer.
• The Dutch are innovators of agricultural technology (AgriTech) e.g. robots, drones, automated fruit separators and processors. The Netherlands maintains and exports its agri knowledge.
• Infrastructure facilitates exports: the ports of Amsterdam and Rotterdam, airports like Schiphol and Rotterdam, and its railway and roads system all facilitate the fast movement of goods.
• It is close to its major markets: Holland’s location – centre of Europe – one of the richest areas of the world. Neighbours like Germany, Belgium and France are her top markets.

How would these points translate to South Africa? Already agriculture maintains a healthy trade surplus (if we rule out inputs like machinery, fuel and fertiliser), thanks to sectors like citrus, table grapes, the other fruit sectors, macadamia nuts, wine and wool.How can we do better?

Readers will have their own ideas, but the imperative of investing in the future agri workforce, the country’s extension and infrastructure is an obvious takeaway!

Relevant pages on Agribook.Digital include Exporting, Hydroponics and uncover growing, Agricultural education and training and Digital agriculture.

References:

1. ThingExplainer. 2018, December 10. "How The Netherlands Became The World's Second Largest Agricultural Exporter". Available at https://www.youtube.com/watch?v=kPPG98yw7-k 
2. VisualPolitik EN. 2018, June 27. "Why The NETHERLANDS is the World's AGRICULTURE leader?" Available at https://www.youtube.com/watch?v=vUmP8Tli-Mc