By: Obert Mathivha CAYC MD

1. COMMERCIAL AGRICULTURAL YOUTH CHAMBERCREATING A BUSINESS PLATFORM FOR YOUNG ENTREPRENEURS IN THE AGRCULTURAL SECTOR21 September 2011, Manzini (Mpumalanga)“Inculcating an Entrepreneurial Life, Reaping the Fruits of Innovation” By: Obert Mathivha CAYC MD

2. PRESENTATION OUTLINE • About CAYC – Who are we & Why do we exist? • Context - Legal Framework - no haphazard operation • Overview of SA Agricultural Landscape • Challenges Facing young people • Opportunities available for youth • CAYC Programmes addressing Challenges & Exploiting Opportunities • CAYC Footprint on designing & Implementing Interventions Methods/Programmes • Our Partners • Success Factors emerging from our Programmes Implementation • Opportunities for Interested Parties Present here

3. 1. Who are we & Why do we exist? WHY DO WE EXIST? Our Understanding that Agr is Everything i.e. food, clothes, etc. • “To create enabling environment wherein passionate youth are encouraged to start & sustain viable farming & related Ventures through supplying the best BD Tools to grab ENTREPRENEURIAL opportunities across the value chain e.g. refer to Services • In order to alleviate poverty and Promote • Sustainable economic development through • Acceptable Exploitation of our Natural Resources” WHO ARE WE? S21 Agricultural Company (NGO) created for Public Good by Group of Youth Activists @ UP in 2005 • Officials & Member database • 10 Staff Officials • 20 Independent Consultans • - approximately 1200 Cooperatives with dominant youth participation, 294 from Gauteng Province, • -About 1900 aspirant Farmers/Enterpreneurs most of whom are studying towards tertiary agricultural qualifications while some are unemployed graduates and matriculants

4. 2. LEGAL FRAMEWORK ALIGNMENT WITH SECTORAL INTERNATIONAL, REGIONAL & NATIONAL DEVELOPMENT POLICIES & STRATEGIES Our Programmes are deliberately developed to impact positively onto: International Legal Framework • UNNEPAD – Africa Agricultural Development Programme (AADP) • FAO agricultural development programmes - UN Special Rapporteur Olivier De Schutter - UN independent expert National Legal Framework • Youth Empowerment Strategy of DOL 2007 • IYDS 2011 • Land Restitution and Agricultural Development (LRAD) • Comprehensive Agricultural Support Programme (CASP) • Proactive Land Acquisition Strategy (PLAS), • Broad Based Black Economic Empowerment (AGRIBEE) • The Strategic Plan for South African Agriculture • Agricultural Education and Training Strategy (AET) • National Skills Development Strategy

5. 3. Overview of SA Agricultural Sector • Knowledge base Economy • resource centred part of the economy - primary resources • direct correlation between the growth of agricultural sector & Economy - Contributing 4.9% for 2006/2007 to GDP • Apartheid Legacy of dualism – skewed economic growth • Subsistence vs. Commercial farming • Survivalist vs. Competitiveness • Significant changes since 1994 - policy and regulatory changes, participation in the internal market etc.

6. 4. Challenges Facing Youth Agree with a number of Identified Challenges in this Conference • Limited Access to information, opportunity identification • Limited information on Funding and Procurement • Limited Access to Start-Up Support • Limited Access to Business Dev Services • Lack of Financial History • Limited Access to Technology • Limited Access to Markets • Limited Access to Land • Limited Access to technical Skills, experience & Capacity Building • Lack of proper infrastructures

7. 5. OPPORTUNITIES • Legal Framework - NYDA Act 2008, Land Affairs YD Strategy 2007, IYDS 2011, NGP 2010 etc. • Along the value chain • Career Dev – scarce critical skills in Agrc Science & Engeneering • Entrepreneurship – BDS Providers i.e. T&D, input suppliers • As farmers • Logistic or transport service • Food processing e.g. agric scientists, engineers – 4more see our Gauteng Agro-P Strategy – 11 downstream agropro sub-sectors • Food storage • Food distribution / retailing – this is also part of Value Chain • AgriBEE provides for various possibilities • Targeted Public Funding • Land ownership • Equity ownership • Targeted Procurement • Training & Dev • Investor Friendly

8. 6. CAYC Programmes addressing Challenges & Exploiting Opportunities Programmes each linked 2 our objectives • Research and Development • Entrepreneurship Awareness • Youth Agricultural Cooperatives 4. Youth Leadership in Agriculture 5. Agro-processing and Skills Transfer 6. Youth Economic Literacy

9. 7. CAYC Footprint on designing & Implementing Interventions Methods/Programmes • GEM Research 2004, then CAYC as a division in SAYCC – Eye Opener – R1,5M • Creation of a Database of Youth beneficiaries from LRAD (Land Redistribution of Agricultural Development) and CASP programme since inception 2006 • Proposed & got Contracted to Implement aligned GP Agricul Cooperate Support Program, Cooperative Database and its related Viable Commodity Association BD Model for EACH of 40 cooperatives selected in May 2010. – R340.000 • GDACE Agro-Processing Strategy in 2007 (Contracted Work) – R700.000 • Gauteng Agro-Processing Strategy 3 Year Implementation Plan 2008 – R200.000 • Agro-Processing Facilities Design & Bill of Quantities – R400.000 • Land Affairs Youth Empowerment Strategy 2007 (Contracted Work) – R500.000 • National Youth Enterprise Strategy (YES) of 2006 (Quality Assurance) • Through our Lobby & Advocacy, proposed Youth in Agriculture and Rural Development (YARD) – which was Launched by the then Minister in August 2007 • IYDS 2011 – flagship programmes on agro-processing • Customized Camps, Workshops, Seminars in all aspects of agriculture and Enter Dev

10. 8. Our Partners Our large network of entrepreneurship development professionals has established a proud tradition, built on scientific excellence, integrity and a passion for youth and women empowerment and development. By living these qualities, we have been able to develop healthy, robust relationships with our stakeholders based on bedrock of mutual respect, trust and appreciation for grounded theory proven practice and continuous innovation. Among Others, DoA DLA ARC, LeadAfrika - a multi-university initiative (internal) CSIR Biosciences, DTI Buhle Farmers Academy, (internal) University of Pretoria, TUT NYDA, SAYCC (Unitary Structure of which I’m the CEO)

11. 9. WHAT IS THE MOST CRITICAL SUCCESS FACTOR FOR NEW COMMERCIAL FARMERS? • Land • Credit • Market access • Water supply • Technical expertise • Government policy • Equipment • Producer price intervention • Government grants & subsidies • Export opportunities • Infrastructure & transport • Institutional development • Technical support

12. ALL ELEMENTS ARE NECESSARY TO SUCCEED • Every critical element must be in place “It does not matter which element is missing … the end result will be the same…” • Complex milieu of needs - Different elements will have different priorities with different individuals or groups in different areas under different circumstances • A Customised Approach must be applied to all the needs of new farmers • Effective access must be possible for each element

13. BALANCING THE EQUATION • Land + equipment + money  farming success THE MISSING FACTOR  HUMAN CAPITAL & MANAGEMENT SKILLS There has to be a corresponding investment in human capacity It is farmers who farm

14. ENTREPRENEURSHIP PROMOTION, DEVELOPMENT & TRAINING ENABLES ACCESS … • APPLIED TECHNICAL KNOWLEDGE • PRACTICAL FARMING SKILLS • FARM BUSINESS SKILLS • FUNDING • LAND • WATER • MARKETS • EQUIPMENT • INPUTS • SUPPORT INCREASED PRODUCTIVITY LEADING TO COMMERCIALISATION, JOBS CREATION & ECONOMIC GROWTH

15. THE CHALLENGE FOR SOUTH AFRICA • Target to be achieved over the next 7 years by 2014 … • Transfer of 30% of productive commercial land, only Less than 4% transferred so far • Over 20 million hectares of productive farmland is to change hands from white to black farmers • Escalating food prices & cost of living • Creation of an inclusive food system for South Africa – National Policy Goal • UN Rapporteurs on FS Dr. Olivier De Schutter, “In contrast to the large white commercial farmers, the newly established black farmers are small-scale farmers, with a poor access to markets, a lack of marketing skills, and a weaker bargaining position in the food chains,” THE QUESTION Where are the new farmers / entrepreneurs & skills coming from ? Are Young people interested enough into agriculture?

16. What then AM I saying? Over more than 10 Yrs of unbroken Youth Dev Activism, particularly our 6 yrs Exp in the Agric Sector, I can say without fear of contradiction that youth must be fearless, encouraged and innovative to increase their chances of success in life – Agriculture is a fulfilling Career but demanding With a combination of passion, skills & good network leading to emotional yet rational partnerships, anyone can succeed!!!

17. “Inculcating Entrepreneurial Spirit, Reaping the fruits of Innovation” I thank You. PLEASE Feel free to Comment or ask Questions?

18. Where to get Us? • CSIR Campus, Building 41, First Floor, Lynnwood Manor, Pretoria • Contact Person: Kediboni Contact Details • Tel: 012 349 2568 • Fax: 086 698 7663 • Email: agriyouth@gmail.com