MAY 2015

1. DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIESAGRICULTURAL POLICY ACTION PLAN (APAP)Progress and Budget MAY 2015

2. Acronyms • Agricultural Policy Action Plan (APAP) • Industrial Policy Action Plan (IPAP) • National Development Plan (NDP) • New Growth Path (NGP) • Broad Based Black Economic Empowerment (BBBEE) • Gross Domestic Product (GDP) • Small Micro Medium Enterprises (SMMEs) • Environmental Impact Assessments (EIAs) • Department of Agriculture, Forestry and Fisheries (DAFF) • Department of Rural Development and Land Reform (DRDLR) • Department of Social Development (DSD) • Key Action Programme (KAP) • National Agricultural Marketing Council (NAMC) • International Trade Administration Commission (ITAC) • Department of Water and Sanitation (DWS) • Department of Environmental Affairs (DEA) • Economic Development Department (EDD) • Department of Science and Technology (DST) • Department of Trade and Industry (DTI) • Agricultural Research Council (ARC) • Industrial Development Corporation (IDC)

3. Background • 4 March 2015: Cabinet approved the Agricultural Policy Action Plan (APAP) and the Agriculture, Forestry and Fisheries Strategic Framework with recommendations for amendments: • Replace import substitution with import replacement; • Greater alignment with Bio-economy Strategy. • Agriculture, Forestry and Fisheries Strategic Framework is the strategic response to the National Development Plan and a cabinet directive; and the Agricultural Policy Action Plan is the programmatic response.

4. Background • APAP: • Is modelled on the Industrial Policy Action Plan (IPAP) • Comprises of Sectorial Key Action Programmes (commodities) and Transversal Key Action Programmes (e.g. research and innovation) • Introduces an export-led and import replacement agriculture strategy • Provides a long-term vision and focused interventions in a 5-year rolling schedule, to be updated annually. • 2014: State of the National Address identified nine priorities for economic growth one of which is the “Revitalization of the Agriculture and Agro-processing value chain.” (identified as priority 1).

5. Linking our Plans, APAP and SONA SONA focus areas include APAP Transversal Key Action Programmes APAP programmes Agri parks Land reform Producer support Technology & innovators Spatial Planning Market access Production Red meat Poultry Sugar Wine Fruit & vegetables Wheat Forestry Aquaculture Biofuels 5

6. National Development Plan (NDP) Argument Vision 2030 of the National Development Plan calls for an inclusive rural economy wherein: • The National Development Plan and Medium Term Strategic Framework sets out clear targets and actions. • Create 1 million jobs: 600 000 potential jobs in communal areas and 300 000 jobs through commercial agriculture; • Acquire 2 million hectares of strategically located land by 2019; • Develop 1 million hectares of under-utilised land in communal areas and among land reform projects for production; • Provide support to smallholder producers in order to ensure production efficiencies – 80 000 new smallholders by 2019; • Food Security: By 2030, every household is able to say “We HAVE food on the table.”

7. National Development Plan (NDP) Winners

8. Sectoral and Transversal Key Action Programme (KAP) of the Agricultural Policy Action Plan Criteria for selection: contribution to food security, job creation, growth potential, and potential contribution to trade balance (increasing production with the view of ensuring import substitution) • Red Meat • Poultry • Fruit and Vegetables • Wine • Wheat • Sugar • Forestry • Fisheries: aquaculture and small-scale fisheries schemes • Biofuels (sorghum; sugar beet and sugar cane etc.) Purpose: To begin to address growing concentration within the market which impacts job creation, transversal action programmes seeks to localise food networks, through infrastructure development, incentivising support for SMMEs and small-scale producers across agriculture, forestry and fisheries value chains. • Fetsa Tlala • Climate Smart Agriculture • Trade, Agri-business Development and Support • Biosecurity • Strategic Integrated Projects 11 • Research and Innovation

9. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019 9

10. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019 10

11. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019 11

12. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019 12

13. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019 13

14. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019 14

15. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019 15

16. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019 16

17. SUMMARY OF Key Action Programmes’ (KAP) FUNDING STATUS - 2015-2019 17

18. UPDATE ON AGRICULTURAL POLICY ACTION PLAN (APAP) • Finalised APAP and Agriculture, Forestry and Fisheries Strategic Framework was approved by Cabinet; • DAFF and DRDLR as the co-drivers of the technical team is devoting the last quarter (Jan-March 2015) to fast tract readiness to implement on the 1st April . Focus areas: • Spatial Planning –mapped out each commodity at a district and local municipal level, including available state land and land acquired for redistribution. The purpose is to guide provinces and all relevant stakeholders with project planning. • Robust stakeholder and communications strategy: The success of APAP is in advocating a paradigm shift in agriculture. New entrants and a long term perspective must be advocated for. A communication strategy is currently in draft form. • Institutional Arrangements – design and finalise an integrated planning, M&E approach between DAFF and DRDLR, through which DLACs will form the basis for project planning. Further publishing quarterly and annual reports, and to test the assumptions and unintended consequences of APAP decisions.

19. UPDATE ON AGRICULTURAL POLICY ACTION PLAN (APAP) • Production – listed all projects by commodity to ensure production and job creation targets per commodity are met. This currently excludes Department of Rural Development and Land Reform projects who will be providing the information within the next week. • Land Acquisition – ensuring that the land acquired speaks to the spaces and commodities identified in APAP. 360 0000 hectares allocated. • SIP11 - Infrastructure development (off-farm infrastructure) toward the development of localised value chains for rural economic development. Further alignment to APAP commodities are underway. • Training – orientating extension support to become specialists in specific commodities, and designing training programmes towards priority commodities in APAP. Further developing creative models for attracting new entrants into the sector. The National Training Programme will include a list of projects by commodity (underway). • Research and Development – gearing our R&D programmes and projects towards meeting APAP objectives. R15 billion of R&D project applications and approval are underway.

20. UPDATE ON AGRICULTURAL POLICY ACTION PLAN (APAP) • Market Access and Trade Development – Improve market access and trade. • Expanding the issuing of Good Agricultural Practices (GAP) Certificates of compliance. • Cabinet approved preferential procurement framework and set-asides targeted for smallholder producers and SMMEs in the Agro-processing sector is underway, and in partnership with the Department of Trade and Industry and National Treasury. • Review of terms and conditions of Manufacturing Competitiveness Enhancement Programme (MCEP) in support of smallholders and SMMEs in the sector. • Implementation of the Agriculture Trade and Competitiveness Strategy. • 7 Value Chain Round Tables established – sector organisations still to confirm by letter to the Director General.

21. UPDATE ON AGRICULTURAL POLICY ACTION PLAN (APAP) • Funding Model • More effective application of annual available budget ±R 34 bill (DAFF, DRDLR and LandBank). • Integrated Funding Model being development • Create a common database to reduce duplications and ensure synergy in the implementation of our various programmes and projects • Secondary funding • Establish the available budget extent and influence targeting of agriculture investments by other departments (DST, DWS, EDD, DTI and DSD) and public entities. • External funding: Massmart Supplier Development Fund; AFGRI Development Fund; funds to be mobilised through the CAADP Investment Plan • Partnerships: Off take agreements e.g., Tiger Brands • Public Sector Procurement: 75% Local Procurement

22. Aspiration: By 2019 APAP will With all conditions favourable, APAP could potentially: • Increase in number of smallholders from 164 000 in 2012 to 400 500; • Increase value add of Agriculture, Forestry and Fisheries (AFF) from R42,5 billion in 2012 to R48,9 billion in 2019 (or 2% real growth per year); • Real increase in value of AFF net exports from an annual average of R5,1 billion in 2012 to R5,8 billion in 2019 (or 2% real growth per year); • Decrease in value of fertiliser and machinery imports at an annual average of R9,6 billion in 2012 to R7,4 billion (or 3% real decline per year); • Reduction in the share of households experiencing hunger ‘sometimes’, ‘often’ or ‘always’ from 10,8% of households in 2012 to 8,0% of households in 2019; • Increase in number of jobs in Agriculture, Forestry and Fisheries from 660 000 average for 2012 to 822 500 (an additional 162 500 jobs) and a potential 1millon jobs by 2030.