Founding of Agricultural Development Agency “A New Landmark in SA History”

The launch of the Agricultural Development Agency (AGDA) at the three-day Africa Agri Tech Conference and Expo in Pretoria this week has been heralded  as a landmark in the history of South Africa by bringing together the various role players in the agricultural environment to be part of a powerful initiative led by passionate people.

The new organisation will be a private business initiative that will work closely with government in all aspects of agriculture from skills transfer to the practical aspects of implementing land reform.

This is the opinion of Nick Serfontein, a prominent livestock farmer who wrote an open letter to President Ramaphosa in December 2017 asking him to involve commercial farmers in the land reform process. He was subsequently appointed to the President’s 10-person land reform advisory panel and is an enthusiastic founder member of AGDA after actively and successfully supporting new farmers for the past five years.

This positive attitude was a good example of the atmosphere that prevailed at this launch event which was led by Leona Archery, the newly-appointed CEO of AGDA who is also the head of the agriculture division at the Bigen Group and a former deputy Director-General of Rural Development and Land Reform

Thoko Didiza, the Minister of Agriculture, Rural Development and Land Reform,  was unable to attend the function due to an urgent  meeting with President Ramaphosa on public-private sector partnerships in Cape Town, but sent a very supportive message for the establishment of AGDA and its objectives in a recorded video address.

The Minister said the formation of AGDA is an excellent example of a positive response for business to work with government in the drive to uplift the economy that went out as a request from President Ramaphosa in 2018.

“The addition of the variety of businesses involved with the agricultural industry which are now or will become members of AGDA will be an important instrument in meeting the need for the responsible use of land in the reform process,” said Minister Didiza.

“Access to finance and insurance are big challenges for new farmers and this is where an organisation such as AGDA can play an important role too as it will include major roleplays in the financial world.”

The Minister also stressed the challenges facing farmers in terms of biosecurity that is being impacted by global climate change.

On the positive side the Minister said the Africa Free Trade Agreement, which comes into effect in July, will open the doors for increased export opportunities into Africa to the benefit of local farmers and associated businesses.

Rudi Dicks, the head of project management in the Presidency, said the President was given regular updates on progress with agricultural initiatives such as AGDA. He added that this sector of the economy was an important participant in the Jobs Summit, which was driven personally by the President. Dicks said that although there was no financial involvement with AGDA from the government at this stage there could be a possibility of a capital investment in this type of initiative in the future.

Roelf Meyer, a former cabinet minister and now a community and economic development activist, said the launch of AGDA marked a very proud moment for him personally as agriculture was one of the most important aspects of local business. It was one of 20 sectors that were identified to be part of public-private initiatives to boost the ailing economy.

Meyer is a major motivator and facilitator, along with Dr Johan van Zyl, a South African who is currently CEO of Toyota Europe and a member of the board of Toyota Motor Corporation, in setting up the Public-Private Growth Initiative (PPGI) which has full government support.

 Kallie Schoeman, the managing director of a 100-year-old faming business, was another prominent member of the agricultural community who gave his full backing to the AGDA initiative. He said that he saw the efficient use of agriculture as an excellent vehicle for reconciliation in South Africa as it was a practical way of improving the lives of millions by providing wider access to affordable food.

Malcolm Ferguson, an associate in the In Transformation Initiative, said the way forward for AGDA will be to continue with pilot projects, source funding from the private sector, set up a board of directors, establish operational committees and build on the initial list of 36 founding members. The target is for AGDA to be operational by September 2020.


Relevant pages in AgribookDigital include "Finance for new farmers and SMMEs", "Marketing" and "Providers of financial services".

Minister Thoko Didiza to deliver keynote address at the AGDA launch

The Minister of Agriculture, Land Reform and Rural Development Thoko Didiza will deliver the keynote address at the official launch of the much-anticipated Agriculture Development Agency. This take place on 18 February 2020 at the Africa Agri Tech Conference and Expo (AAT), to be held at the Maslow Hotel, Times Square, Menlyn Main in Pretoria.

The launch of the Agriculture Development Agency (AGDA) will also serve as the opening event of the AAT conference, which will run from 18 – 20 February and cover topics ranging from the local and international agricultural economy and access to capital, to mitigating drought conditions through sustainable climate sensitive agriculture as well as developing intra African trade in agricultural products.

AGDA is part of the Public Private Growth Initiative (PPGI), which was established in April 2018 under the leadership of Dr Johan van Zyl, CEO and President of Toyota in Europe. Van Zyl was inspired by President Cyril Ramaphosa’s famous Thuma Mina call in January 2018 and based the PPGI on the hugely successful Japanese economic model. The aim is to align strategic planning between government and the private sector, in the interest of improving economic growth and the manner in which government and business work together.

There are more than 20 sectors identified by the PPGI for specific focus. These include Agriculture; Tourism; Automotive; Chemicals; Manufacturing; Energy and Renewable Energy; Construction; Pharmaceutical; Mining; Retail; ICT; Health; and Insurance. These sectors are all developing comprehensive five-year growth plans, which aim at accelerating economic growth and job creation.

The specific aims of AGDA are intended to promote greater social justice by creating enablers that will help drive sustainable land reform programmes and contribute to changing land ownership patterns in our country.

AGDA, which is an entirely private sector initiative falling under the PPGI framework, will work together on an agreed project basis with government to achieve the common national goal of sustainable and accelerated land reform to the benefit of South Africa and all its people. 

In this regard, Mr Roelf Meyer of In Transformation Initiative, which is one of the main drivers of this project, drew attention to the main objectives of the Agency, which are to promote and support access to agricultural land by black/emerging farmers, and to support the use of agricultural land and infrastructure development so as to promote land reform and food security in the country. Meyer highlighted that AGDA has the specific purpose not only to pursue these noble objectives, but also to ensure the provision of appropriate training, as well as support and assistance to emerging farmers to improve capacity and access to agricultural markets in particular.

 

“It is only through the pursuit of such objectives in partnership with government, focusing on a more vigorous pursuit of the noble objectives the national land reform programme, that the market failures and imperfections in building an inclusive, dynamic and competitive agricultural sector, to enable all our people who have ambitions to work in agriculture can be achieved,” Meyer said.

Ms Gloria Serobe, CEO of WipCapital and also one of the leading inspirations and contributors to the creation of AGDA remarked that, “the Agricultural Development Agency must have a well-developed social conscience and it must be institutionalised in a manner that will ensure it is always dedicated to such imperatives.”

Relevant pages in AgribookDigital include "Finance for new farmers and SMMEs".

NEET and Chancellor Angela Merkel's visit

A young man came to us for help yesterday. His old, worn out ID book was missing the top corner (and the last digit of his identity number). We were impressed with his whole demeanour which spoke of cleanliness and enthusiasm. In the past it was not uncommon to find him bloodshot eyes and in low spirits. What had made the difference? The hope that a job might be his. He is one of the young, NEET (not in employment, education or training) South Africans.

The NEET category is of great concern to anyone who hears of it, especially if you are connected to and affected by someone unfortunate enough to finds herself/himself there. 

If something creative isn’t done about it, it has the potential to affect all of us!

NEET is covered in many quarters, not least a recent International Monetary Fund (IMF)’s Country Focus "Six Charts Explain South Africa's Inequality". The fifth of these identifies high unemployment as being a major factor sustaining the inequality levels. The country's unemployment is significantly higher than the average emerging markets, and spectacularly so when it comes to youth unemployment - 53% to their 16%!

The Country Focus urges: 

• the creation of more low-skilled jobs "to improve labour force participation, especially in the poorest provinces";
• improving the quality of education; and
• facilitating affordable transportation to job centers.

It is against this backdrop that we took great pleasure in reading about the prominence given to youth unemployment when South African President Cyril Ramaphosa hosted German Chancellor Angela Merkel on an official visit on Thursday, at the Union Buildings, in Tshwane. The two signed a joint initiative on the promotion of vocational training the aim of which is to tackle the high unemployment rate in South Africa. “We have to make sure that young people transition from learning to earning at a much faster rate,” President Ramaphosa said. He linked the joint initiative to government's Presidential Youth Employment Intervention.

The other area of co-operation is energy supply with particular focus on renewable energy. A grim smile for us as we face a weekend of load shedding.

Relevant pages on Agribook.Digital include "Careers and employment in agriculture" and "Renewable and alternative energy".

I would like to do animal production

I would like to do animal production where should I go or do pls help

As mentioned in previous blogs, we receive numerous questions from visitors to the website every day. What follows is the reply to a question. 

Photo by Magda Ehlers from Pexels

Dear Nkutlwe

 

There are a lot of things to consider, the first being: (1) Do you have an affinity to a certain type of livestock? You may have a heart for poultry, for example, or goats. Success in life often comes with a type of inspiration when you feel drawn towards a certain path, career or, in this case, what you want to farm with. (2) Is there a market for the animals or animal product near you? Who will buy them?

Our website gives overviews on the different types of animals. See https://agribook.co.za/livestock/. Another page worth looking at is the marketing one, see https://agribook.co.za/marketing-finance/marketing/. The DAFF Agricultural Marketing Extension papers (there are 9) listed under the Websites & publications heading will be important reading. The papers give ideas of how to sustain your animal production business by making it profitable.

You will need training and/or a mentor, someone who already farms with livestock, or who has experience with them. The agricultural colleges/provincial departments of agriculture provide short courses on a number of topics, as does the ARC. There are many AgriSETA accredited courses too. You can browse the page at https://agribook.co.za/agricultural-training-and-careers/agricultural-education-and-training/. It is usually an idea to talk to farmers in the area about their experience. They may alert you to issues, challenges but also point the way to answers that you would not pick up in a book or website.

 

Best wishes.

Agbiz comments on the compulsory installation of water metres and monthly reporting of water used for commercial irrigation

Photo by Süleyman Şahan from Pexels

On Friday the 17th of January, the Acting Director General of the Department of Human Settlements, Water and Sanitation published a notice in the Government Gazette requiring all irrigators to install water meters and report their monthly consumption. This notice specifically relates to those water users who do not form part of a Water User Association nor an Irrigation Board. Water users were given 30 working days to comply.

Section 22 (2), 26 (1) read with Item 4 of Schedule 3 to the National Water Act permits the authority, by declaration, to impose compulsory metering and reporting requirements on any lawful water user. Whilst other sectors have been required to measure and report on their consumption in the past, it is a relatively new requirement for water users in the primary agricultural sector who make use of water for commercial irrigation purposes. In 2017, a notice was published that required only those irrigators that formed part of a Water User Association or Irrigation Board to install meters and the obligation was imposed on the Association or Board itself to report the consumption of its members to the Department. Following Friday's publication however, this requirement will now extend to all commercial irrigators. These water users will be required to submit information directly to the Department using the email address applicable to the Water Management Area in which they operate.

The publication will certainly have a substantial impact on the sector. Aside from the administrative burden involved, water users are required to install the meters at their own cost and need to comply with the prescribed specifications. Those directly involved in irrigation will certainly be affected by this notice. Since the requirement is imposed on water users who are not part of an association, agribusinesses and financiers who finance clients that may be affected by the notice are encouraged to make the requirement known to their clients.

Since the notice was published in its final format and not as a draft for public comments, water users will be required to comply with the requirements within 30 working days calculated from the 17thof January. It has been mooted that the time frame may not be realistic for 30 days is not a great deal of time. The notice is aimed at water users who are not part of associations so there may be a delay in communicating the notice to all affected parties. Furthermore, it remains to be seen whether sufficient meters that meet the requirements are available in this short time. For these reasons, Agbiz will be raising the issue of the time frame with the Department through the various platforms available for engagement.

The original Agbiz statement can be read here.

Relevant pages on Agribook.Digital include "Irrigation" and the general "Water".

Used oil on South African farms can pollute the environment

Press release

Commercial farming relies heavily on technology and mechanisation – which in turn relies on the use of motor lubricant oils. It is estimated that South Africa generates an average of 120 million litres of used lubricant oil in a year with about 10 million litres of this being generated by the Agricultural sector.

Considering that one litre of used oil can contaminate one million litres of water this is a potentially devastating amount of used oil that, if not collected and recycled responsibly, could make its way into our environment.

“Conversion to more sustainable agricultural practice is necessary, both to preserve South Africa's biodiversity and to ensure a future resource base,” says Bubele Nyiba, CEO of the ROSE Foundation (Recycling Oil Saves the Environment) - a national non-profit organization funded by the major producers of lubricants to promote and encourage the environmentally responsible collection and recycling of used oils and related waste in Southern Africa.

The ROSE Foundation provides some practical tips on used oil management:

    Proper collection of used oil for storage

• Used oil must be drained into a clean container with a tight fitting lid, such as a re-usable combination drain pan/storage container. Used oil generators can also use a specially designed plastic ROSE Sumpy to collect used oil. Sumpy containers are available from most spares shops, garages and supermarkets.

    Proper storage of used oil

• Ensure that used oil is stored in a container with a secure lid so that it cannot spill out. Empty oil containers and drums make effective makeshift storage vessels for used oil, however, containers that previously held chemicals, such as cleaners, solvents, fuels, paint or bleach CANNOT be used.
• Containers must always be clearly labelled “Used Motor Oil” and kept in a place that can be accessed by a used oil collection vehicle. A bund wall should be built around bulk used oil storage tanks so that in the event of a spill or leak, the used oil will be contained.
• Containers holding used oil should ideally be stored under cover and away from heat or sources of ignition and they must be tightly sealed to protect them from rain water.
• It is important to not mix used oil with other fluids such as antifreeze, transmission fluid, petrol, diesel etc. Mixing them may make them non-recyclable as well as very hazardous and flammable.

    Proper removal of used oil

• Contact a ROSE registered used oil collector who will come and take away your used oil for responsible recycling. Visit the ROSE Foundation website on www.rosefoundation.org.za, email info@rosefoundation.org.za or call 021 448 7492 to find out who your nearest collector is.

“Recycling used oil allows us to continue to enjoy what many of us take for granted every day – clean, potable water,” concludes Nyiba.

Relevant pages on Agribook.Digital include "Waste management" and "Fuels and lubricants".

Public Private Growth Initiative (PPGI) signals progress despite difficult conditions

Press release

Representatives from the private sector, corporate CEOs, leaders from over 20 economic sectors and from government met in Sandton this week to discuss the progress made on various Public Private Growth Initiative (PPGI) projects and action plans.

At the meeting, economic sectors as diverse as manufacturing, forestry, tourism, agriculture and chemical manufacturing reported a closer working relationship with the South African government. These improved relationships have led to shared projects and the resolution of several bottlenecks to doing better business.

Says Michael Peter, Executive Director of Forestry SA: “Water use licences are finally being sorted out, we have made progress with Transnet on freight and for the first time in six years we are seeing movement on the recapitalisation of state forestry.”

Representatives at the PPGI meeting discussed several areas of progress. The Business Process Services Sector reported that as a result of an agreement between the sector, the Department of Trade, Industry and Competition and the Harambee Youth Accelerator, over 20 000 net new jobs have been created since January 2018.

The sector has attracted investment and has grown revenue and employment year-on-year, with ambitious plans to grow the sector by 100 000 net new jobs by 2023. The Automotive Sector, in turn, reported on the establishment of the Automotive Industry Transformation Fund, which has already received R6bn in investment commitments to apply towards the development of an inclusive supply chain.

In the same vein, the representatives from the Agricultural Sector signalled that they would launch an Agricultural Development Agency on 18 February 2020. This Agency will manage a development fund of R12bn for the development and support of emerging black farmers.

Dr Johan van Zyl

“I am very pleased to hear from so many different sectors that they are making positive connections with various people in government,” says Dr Johan van Zyl, one of the founders of the PPGI. “These new connections will help unblock constraints and support economic
growth.”

A number of sectors reported that they were organising themselves in response to the PPGI’s approach. For instance, the Water Supply Sector is in the process of establishing the Water Chamber SA. In another, the Creative Industries Sector and the Information Communication Technologies (ICT) Sector indicated that they would be working closely together to create a strategy for South Africa in the Digital Age.

The meeting also highlighted a number of ongoing inhibitors, ranging from policy incoherence, congestion at the ports, rising crime and skills constraints.

In a specific example, Simphiwe Hamilton from the Defence Sector spoke about the potential growth in export revenue and employment if government improved its process for product certifications and contract approval.

In another example, representatives from the Construction Sector appealed for fit-forpurpose procurement frameworks within government, while the Tourism Sector indicated that while some progress had been made on visas, the proposed e-visa was a key requirement to enable tourism.

A number of sectors also pointed to the constrained state of the economy and its impact on sales and business growth. In closing the meeting, Roelf Meyer spoke about the importance of systematically addressing inhibitors and challenges.

“We will address ongoing challenges identified in certain sectors and assist where possible through our key points of contact with Minister Ebrahim Patel and his team, as well as with the Presidency.”

Meyer indicated that the PPGI would report on sector progress and new catalytic projects to the Presidency.