AN OVERVIEW OF THE AGRICULTURE, FORESTRY & FISHERIES SECTORS 01 JULY 2014

1. AN OVERVIEW OF THE AGRICULTURE, FORESTRY & FISHERIES SECTORS 01 JULY 2014

2. Presentation Outline • Contextual Background • Sectoral Background & Challenges • The Dept of Agriculture, Forestry & Fisheries • Legislative & Policy Mandates • Sector Performance • Outcomes-based Focus Areas • National Priorities • Challenges/Threats • Opportunities • Conclusion • Implications for Oversight

3. CONTEXTUAL BACKGROUND • 2009/10: Department of Agriculture, Forestry & Fisheries establishment initiated - amalgamation of Forestry from former DWAF & Fisheries from former DEAT. • Challenges: Personnel alignment; budget adjustment due to OSD (finalised in Forestry & partial in Fisheries, which led to loss of some Fisheries personnel); additional vacancies. • Response: restructuring - creation of a new organogram & programmes – finalised in 2012. • DG appointed in Sept 2010 & left in mid-2012 – new DG appointed in October 2013.

4. SECTORAL BACKGROUND

5. Sectoral challenges

6. DEPT OF AGRIC, FORESTRY & FISHERIES

7. LEGISLATIVE MANDATE Overview • Mandate: to address production & consumption in the agriculture, forestry & fisheries sectors. • Section 27(1)(b) of the Constitution: “Everyone has the right to have access to sufficient food.” • Further: Sections 27(2) & 24(b)(iii) – obligation for realisation of the right above & sustainable natural resource use. • 33 Acts of Parliament (Annexure 1).

8. POLICY MANDATE Overview • Strategic Plan for Agriculture (2001): key driving force for agriculture & its vision was a “united and prosperous agricultural sector”. It focused on: (a) Equitable access & participation (b) Global competitiveness & profitability (c) Sustainable resource management • Evaluation of Plan (2007/08) – progress on (c) but (a) required urgent attention.

9. POLICY MANDATE cont... Overview • Since 2009, no overarching & integrated policy. Short-term interventions: IGDP in 2012 & APAP in 2013 – both not presented in Parliament. • National Gov Priority Outcomes: 4 - Decent employment 7 - Rural development & food security 10 - Natural resource protection & management • National policy frameworks incl. the MTSF (being developed), IPAP, NGP & NDP; as well as SONA

10. SECTOR PERFORMANCE Overview • Agriculture: approx3% to GDP – however, if forward & backward linkages to economy of agribusiness value chain considered, ~12%. - approx 5% employment (640 000 people). • Forestry: approx 1.2% to GDP - approx 7 000 workers (+30 000 indirectly). • Fisheries: approx 0.5% to GDP - approx 27 000 workers (+100 000 indirectly)

11. Outcomes-based FOCUS AREAS Overview • Food Security (Outcome 7): Nationally, IFSS (2002). Dept had no specific policy but addressed by providing support through conditional grants such as CASP (smallholder producers), Ilima/letsema (subsistence producers) & various other programmes. Food & Nutrition Security Policy (Sept 2013) – DAFF & Social Development - Fetsa Tlala Initiative. M & E of conditional grants & implementation of new Policy essential (role of each Dept). • Job creation (Outcome 4): Agric labour-intensive & ability to absorb unskilled & semi-skilled labour, identified as a key job driver in the NGP. In addition to private sector jobs, DAFF contributes to job creation mostly through EPWP programmes, viz. LandCare (rehabilitation in agric + forestry), Million Trees Project, Working for Fisheries. Sustainability of jobs (M & E).

12. O-b FOCUS AREAS cont... Overview • Rural Development (Outcome 7):Agric considered backbone of rural economy & driver of rural economic development. Lead Agrarian Transformation pillar of the CRDP (DRDLR) – focus on post-settlement support for land reform beneficiaries & dev agric, forestry & fisheries rural enterprises. - No collaboration between 2 depts – variation amongst provinces. - Role of mentorships & strategic partnerships on land reform projects (sustainability & benefit to beneficiaries). • Sustainable use of natural resources (Outcome 10): LandCare - Rehabilitation of degraded agric land & woodlands, alien & invasive species clearing; Greening Prog.

13. National PRIORITIES Overview • Develop & expand agroprocessing (entire value chain) – agric (food processing), forestry (paper, timber, furniture)& aquaculture (IPAP) – aquaculture: collaboration between DAFF, dti & Proudly SA to develop campaign on kabeljou (dusky kob) by Q3 of 2014/15. • 300 000 HH in smallholder schemes by 2015 & 500 000 jobs from agric & specifically, 145 000 jobs from agroprocessing (wine & fruit exports) by 2020 (NGP). • 1M new jobs by 2030 in agriculture, agroprocessing & related sectors by 2030 (NDP) – infrastructure investment (irrigation). 33% surplus from smallscale sector.

14. CHALLENGES/THREATS • Internal: • Technical & financial support: accessibility & state of extension service (lack skills) – ERP (qualification upgrades & further training) - National Policy on Extension & Advisory Services – in progress; lack of infrastructure (usually on-farm & limited); accessibility & limited finance instruments (CASP, Mafisa); general shortage of critical skills. • Lack of info on smallholder sector: absence of baseline data (database) – (numbers, spatial location, land access, productive potential, resource needs, categories). Most agric info & stats based on commercial sector. Hard to evaluate progress & assess impact of intervention without a baseline. • IGR:Lack of coordination amongst Depts – slow/little progress - duplication with limited resources. On CRDP, DAFF & DRDLR competing instead of complementing each other. • Poor investment on R & D: ARC commercially-oriented; limited research on smallholders by academic institutions

15. CHALLENGES/THREATS CONT... Overview • External • Climate change: huge impact on the 3 sectors & changes in production areas inevitable – risk & vulnerability maps (ARC & CSIR) – adaptation;natural disasters & disease outbreaks • Encroachment on agric land: impact of mining, fracking, urban development on productivity, water & grazing land – Protection & Development of Agricultural Land Bill being developed. • International trade policies – impact of subsidies, SPS measures & commodity prices on exports & competition, particularly for newcomers – Marketing Bills.

16. OPPORTUNITIES: SHORT-TERM • 2014: AU African Year of Agriculture & Food Security (CAADP 10-yr commemoration); UN International Year of Family Farming. • NGP/NDP: Agroprocessing - prioritise value-addition across entire chain. • Increase area under production: use spatial mapping & analysis (ARC-ISCW) – comparative advantage or productive potential (agric); afforestation / reforestation (forestry). • Infrastructure: irrigation, on- & off-farm, agroprocessing (all 3 sectors) – security against vandalism, ensure regular maintenance. • Comprehensive producer support: IGR & PPP (commodity groups) - technical, finance, capacity building, markets

17. OPPORTUNITIES: LONG-TERM Overview • CAADP - NDP: SA not yet signed CAADP Compact - investment opportunities; private sector involvement; capacity building; increase commercial agric; regional export markets. • Agric:identify opportunities for new & niche markets e.g. olive oil production small in SA; diversion of blocked exports (citrus) to new markets; smallholder livestock dev; established commercial sector - PPP (e.g. NWGA communal sheep in EC); organic farming. • Forestry:Processing (sawmilling, furniture-making); rehabilitation of old plantations; non-forest products enterprises. • Fisheries:Aquaculture expansion; new fisheries.

18. IMPLICATIONS FOR OVERSIGHT • Focused leadership & institutional capability: - development of long-term & integrated sector policy based on experience & evidence to ensure it straddles changes in administration (use NDP as roadmap). Full Integration of Forestry & Fisheries into Agriculture. - address skills shortages across all 3 sectors including extension capacity (essential for smallholder sector). • Committee M & E of policy, legislation & programmes wrt development, processing, tabling, implementation (plans essential), budgeting & financial resource use – realisation of national priorities. Utilise DPME reports, AG & other tools.

19. IMPLICATIONS CONT... Overview • IGR: Coordination on crosscutting mandates – PCs on RDLR, Social Development, Trade & Industry, Public Works, Finance, inter alia as well as relevant SCs to seek clarity on responsibilities, ensure resource mobilisation & efficient use of state resources against competing priorities amongst government departments & agencies.

20. CONCLUSION Overview • Unless agriculture reaches some degree of commercialisation, the impact of agricultural growth on food insecurity and poverty alleviation is likely to be limited – promote PPP to leverage on the established commercial sector. (NDP, CAADP) • Oversee policy-mandated development and comprehensive support of the smallholder sector to address transformation objectives not only in agriculture, but in forestry and fisheries.

21. Thank you