Value Proposition

Value Proposition
Mission
Agri SA promotes the development, profitability, stability and sustainability of agriculture in South Africa by means of its
involvement and input on national and international policy and the implementation thereof.
Vision
Unity in agriculture
Home of the South African farmer | Ikhaya lomlimi waseNingizimu Africa
Tuiste van die Suid-Afrikaanse boer | Lehae la balimi ba Africa Borwa
ORGANISATIONAL STRUCTURE
Agri SA is a federation of agricultural organisations established in 1904 consisting of provincial and commodity organisations, representing a diverse
grouping of individual farmers regardless of gender, colour or creed.
Who we represent
Governance
Congress
General Council
Management Committee
Agri SA
Agri Securitas Trust Fund
9 Provincial Affiliations
New Services
24 Commodity Organisations
• Agri Eastern Cape
• Agri Gauteng
• Agri Limpopo
• Agri North West
• Agri Northern Cape
• Agri West Cape
• Free State Agriculture
• Kwanalu
• Mpumalanga Agriculture
Agronomy
• Cotton SA
• Dry Bean Producers’ Organisation
• Forestry South Africa Medium Growers Group
• Grain SA
• South Africa Cane Growers’ Association
• Tobacco Institute of Southern Africa
Animal Production
• Milk Producers’ Organisation
• National Wool Growers Association of South Africa
• Red Meat Producers’ Organisation
• South African Mohair Growers’ Association
• South African Ostrich Business Chamber
• South African Pork Producers’ Organisation
• Wildlife Ranching SA
• 1000 farmer associations
Horticulture
• Banana Growers’ Association of South Africa
• Canning Fruit Producers’ Association
• Citrus Growers’ Association of Southern Africa
• Deciduous Fruit Producers’ Trust
• Dried Fruit Technical Services
• South African Garlic Growers’ Association
• South African Nursery Association
• South African Subtropical Fruit Growers’ Association
• South African Table Grape Industry
• Tomato Producers’ Organisation Growers’
• Vinpro
OUR CORE BUSINESS
Agricultural
Development
Responsible to broaden Agri SA’s role and
involvement in the area of transformation
with a specific focus on land reform, farmer
development and broad based Black
Economic Empowerment, championing
the preservation and extension of private
ownership rights.
Rural Safety
Focus on policy areas that have an influence
on the safety of the farming community
and their property. Develop information
guidelines and procedures to improve rural
safety.
Commercial
To exercise a positive impact on the
financial position of farmers through aspects
impacting directly on the cost and income
structure of farming enterprises.
Natural
Resources
Communication
Labour and
Social Matters
The key work areas include labour legislation,
sectoral determination, occupational health
and safety on farms, migration policy, social
security for farm workers, employment equity
and human resource development.
Research and
Development
We partake in several research and
development (R&D) initiatives across
South Africa – and through our commodity
members we support multidisciplinary
initiatives across the whole value chain.
We focus much of our efforts in combining
science and human capacity development in
priority areas.
Global Marketing
We identify international market opportunities
and advise on the appropriate market mix
for various markets, investigate and advise
on the local conditions, including legal
environments taking into consideration
various free trade agreements in amongst
others SADC, COMESA and the East African
Community, SACU and AGOA. Through our
commodities we have several examples of
developing global markets – e.g. China, USA
and broader Europe to name a few.
Deals with water affairs, mineral rights,
climate change, genetically modified crops,
scale-gas development and renewable
energy.
Key focus areas include the maintaining and
promotion of network relationships, liaison
activities with key stakeholders, internal and
external communication and image building.
Employment
Creation
We strive to create a legal and policy
environment conducive for job creation
and economic growth. We work with
government, and the private sector to
develop skills, markets and production
nodes across South Africa.
AGRI SA Value Proposition
1
OUR CONTRIBUTION AND SUCCESSES AS A GROUP
Contribution of Commodity Organisations to Farmer Development and Transformation
Affiliates’ annual expenditure on projects
R21 897 084
R77 094
R700 000
R735 000
R7 800 000
R25 135 528
R20 000 000
R285 000
R96 000
R7 914 351
R2 424 204
R18 177 682
R71 384
R700 000
R756 000
R7 806 642
R17 289 500
R12 000 000
R498 300
R92 000
R7 353 770
R2 702 344
R17 463 938
R66 096
R400 000
R757 000
R7 649 409
R15 045 400
R7 000 000
R499 620
R89 000
R7 554 024
R2 332 344
R16 612 594
R61 200
R400 000
R1 245 000
R7 735 684
R15 928 485
R5 000 000
R498 225
-
R6 166 872
R2 358 845
R15 156 361
R56 000
R400 000
R1 648 000
R6 028 411
R18 545 410
-
-
-
R7 069 324
-
Grain SA
Karoo Meat
Dried Fruit
Cotton SA
Hortgro/
DFDC
NWGA
Ostrich
Chamber
RPO
Subtrop
Citrus
Growers
Milk
Producers
R3 669 981
R500 000
-
R875 000
R92 109 242
2013/2014
R2 868 351
-
R8 500
R875 000
R71 199 473
2012/2013
R7 955 422
-
-
R875 000
R67 687 253
2011/2012
R2 134 059
-
R9 000
R875 000
R59 024 964
2010/2011
R2 042 994
-
R10 000
R2 000
R32 403 090
SA Pork
Free State
Agriculture
Hartes (NW)
Witdraai
Med
Total
• Cape Wools SA farmer development in the emerging and communal sectors - R7.145
2013/2014
2012/2013
2011/2012
2010/2011
2009/2010
2009/2010
million (2015/16)
• Forestry SA developed land reform models for sustainable transformation:
- engaging United Nations’ Industrial Development Organisation to establish mobile forestry training facilities
- with KZN department of agriculture and rural development engaged in developing a training academy
• The Tobacco Institute of Southern Africa (TISA) - about
R2.5 million per annum
spent an amount of R275 000 through mentorship, guidance and related programmes
• Canning Fruit Producers’ Association (CFPA) during 2015
EXAMPLES OF SOME PROJECTS
Agricultural Development
Rural Safety
Commercial
• Developed a holistic framework for land reform and rural development
• Established important principles with regards to the prevention of illegal land occupation
• Developed information documents and guidelines on all land related laws
• Negotiated essential amendments to bills, i.e. expropriation and the Valuer General
• Assisted with the development and implementation of the official Rural Safety Strategy
• Assisted the police with the development and implementation of the Reservist Police Strategy, aimed at regulating and
establishing the service and to make it accessible for participation by the farming community
• Established a well-respected working relationship with the Joint Crime Prevention and Safety Cluster, at both national and
provincial level
• Address issues pertaining to the cost of doing business, i.e. inputs on the reviews of administrated prices such as electricity
and water
• Engage SARS on taxation issues such as capital gains and diesel refund dispensation
• Negotiated a specific property rates dispensation for farming enterprises
• Negotiated the disaster management dispensation for agriculture and facilitate support aimed at floods, droughts and
veld fires
• Inputs into bilateral and multilateral trade negotiations, i.e. SACU, EU-FTA and AGOA
Research and Development
• Cape Wools SA (CWSA) spend annually between R1m and R2m on wool sheep production and R10,582 million in 2015/16
on technical-, training- and mentorship support
• Forestry SA budgeted in 2015 for R23,2 million expenditure on research and forest protection, supplemented by a grant
research allocation of R33 million
• The Tobacco Institute of Southern Africa (TISA) R&D allocation amounts to approximately R2 million per annum
• Canning Fruit Producers’ Association (CFPA) fund research relevant to farmers to the value of approximately R1,2 million
per year
Natural
Resources
• Negotiated the capping of the annual water tariff dispensation far below the maximum increase of 50%
• Appeal Court case decision in favour of Agri SA pertaining to the transfer of water use rights
• Developed a guideline document for our constituency to empower landowners on their rights versus owners of mineral rights
• Legislation i.e. Spatial Planning and Land Use Management Act (SPLUMA), environmental and mineral rights
Communication
• A well respected hub of information for the media, maintaining an average of 4 articles daily in printed media
• Toyota SA/Agri SA Young Farmer competition to identify young role models to inspire new entrants to the sector
• The Agri magazine, Agri SA’s bi-monthly publication with a circulation of 27 000, is self-funding and received the PICA Highly
Commended Award
• Regular newsletters to affiliates and media
Labour and
Social Matters
• Developed and implement the entrepreneurial development training programme (mostly wives of farm workers) as part of a
rural social upliftment programme
• Developed the Agricultural Enterprise Management Training programme to equip new farmers entering the sector with
business management skills
• The classification of sheep shearers as a scares and critical skill which allow workers from Lesotho to work in South Africa
• The key work areas include labour legislation, sectoral determination, occupational health and safety on farms, migration
policy, social security for farm workers, employment equity and human resource development.
Global
Marketing
• Involved in reviewing all trade agreements
• Facilitate participation in trade forums and with dti
• The Wool Industry spend annually approximately R5m on international wool promotion and R1m on local market development
Employment
Creation
• New entrants to wool farming, increased by 2000 during the past two seasons
• Cape Wools SA estimates that 25 000 potential jobs could be created
• Forestry employs 67 000 people directly and 171 000 indirectly
• Canning Fruit Producers’ Association (CFPA) estimates that the sub-sector employs approximately 10 500 farm workers and
13 500 factory workers
AGRI SA Value Proposition
2
STRUCTURAL CHARACTERISTICS OF THE AGRICULTURAL SECTOR
Land-cover category
Area (hectares - millions)
Percentage (%)
Bare and degraded areas
5.45
4.47
Cultivated areas
12.76
10.46
Grasslands
24.30
19.92
Indigenous forests
0.52
0.43
Mines
0.20
0.17
Forest plantations
1.72
1.41
Scrublands and herblands
42.27
34.66
Urban areas
1.85
1.51
Waterbodies
0.68
0.55
Wetlands
0.87
0.72
Woodlands and bushlands
31.34
25.70
121.96
100.00
Total
±2.4%
Primary contribution
to GDP
±20%
Contribution to GDP, if the entire value
chain of agriculture is taken into account
• 12% surface area can be used for crop production of which only 22% is high potential
• Labour in agriculture
- 869 000 farm workers
- Accounts for between 4 - 5% of total employment
- Supplementing household income and/or contribution towards food supply for more than 2,5 million
rural households
• Earner of Foreign Exchange
- In terms of agricultural exports and imports the sector displays a positive trade balance.
Approximate number of commercial
farming units in South Africa
Agri SA
represent
27 000
farmers
Database of members of
affiliated organisations
Well-developed national, provincial
and local structures
R75 188
South Africa Agricultural Export and Imports
1990 - 2014
Source: DAFF
Million in net farm income at the end of 2014
85 000
80 000
75 000
70 000
65 000
60 000
million ha
under irrigation
50 000
45 000
40 000
35 000
30 000
25 000
20 000
Production
of total
meat in
Africa
15 000
10 000
5 000
Agricultural Exports
Agricultural Imports
Agricultural Trade Balance
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1993
1992
1991
0
1990
Rmillion
55 000
17%
17%
8%
Production of
wheat in
Africa
Production
of maize
in Africa
South Africa largest producer of sugar, milk and
fresh fruit in Southern Africa
AGRI SA Value Proposition
3
OUR NETWORKS
Official Structures
Private Structures
AgriBEE Charter Council
Department of Rural Development and Land Reform
AfricaBio
AgriSETA
•
Steering Committee for Land Use Suitability Assessment
Criteria and Corridor Development
Business Unity South Africa (BUSA)
•
Working group on the Strengthening of Relative Rights
•
Working group on the Regulation of Landholdings
Occupational Health and Safety Advisory Council
(ACOHS)
•
Working group on Agri Parks
•
Working group on District Land Reform Committees
Towards Elimination of Child Labour (TECL)
Working Group on the Review of Agricultural Legislation
Department of Labour
•
•
•
Child Labour Action Programme Implementation
Committee (CLAPIC)
Department in the Presidency
•
Performance Monitoring and Evaluation – Work group on
Rural Development (Outcome 7)
International Erosion Control Association South Africa
(IECA-SA)
•
Board – Alternative Director
•
Economic and Trade Policy
•
Social Policy Committee
•
Environmental Working Group
Eskom
•
Agricultural Technical Working Group
Provident Fund for the Agricultural Sector
Agri-Sector Unity Forum (ASUF)
The Department of Agriculture, Forestry and Fisheries (DAFF)
National Economic, Development and Labour Council
(NEDLAC)
•
National Agriculture Disaster Risk Management
Committee (NADRMCO)
•
Labour Market Chamber
•
Trade and Industry Chamber
•
National Drought Task Team
•
Technical Sectoral Liaison Committee
•
Task Team for the development of drought indicators
National Priority Committee on Rural Safety (JOINTS)
•
Fire Working Group
South African National Committee for Irrigation and
Drainage (SANCID)
•
Steering committee on integrated agricultural
development finance policy framework
Department of Co-operative Governance and Traditional
Affairs (CoGTA)
South African National Committee on Large Dams
(SANCOLD)
•
Working group on agricultural insurance
•
National Disaster Management Advisory Forum (NDMAF)
Strategic Water Partners Network (SWPN)
•
Forum for Chief Executive Officers in Agriculture (CEO
Forum)
•
Early warnings working group
•
Review of the Disaster Management Act, 2002 and
regulations pertaining to the Act Working Group
•
Agricultural Trade Forum (ATF)
•
National Agricultural Research Forum (NARF)
•
National Animal Health Forum
•
National Agricultural Education and Training Forum
Statistics South Africa
•
South African National Accreditation System (SANAS)
•
Deputy President’s Office
•
Sectoral Working Group: Millennium Development Goal
Advisory Committee
Water Research Commission (WRC)
Vulnerable Workers’ Forum
The South African Chamber of Commerce & Industry
(SACCI)
•
Copper Theft Working Group
National Stock Theft Forum
International Structures
CAIRNS Group Farmer Leaders
South African branch of the International Chamber of
Commerce & Industry
Southern African Confederation of Agricultural Unions
(SACAU)
World Farmers’ Organisation (WFO)
PLAYERS IN THE AGRICULTURAL POLICY AND COMMERCIAL SPACE
Input
Funders
•
•
•
•
Commercial Banks
•
Development Banks
Seed com
Crop protection
•
Private Equity Investors
•
Fertilizer
Animal Health
Commodity Companies
Primary producers and processors
•
Traders
•
Storage
Research & Development
•
AGRI SA
Chemical
•
•
Seed
Mechanisation
Biotech
Insurance
Training and Development
•
•
Tertiary
Secondary
•
Farm
•
Crop
•
Agri Co-ops
•
•
National
International
Life
Precision Farming
•
Technology
•
Gis
AGRI SA Value Proposition
4
Agri Securitas Trust Fund
New Services
Established in 1999 after the Rural Safety Summit to provide financial
resources to farming communities enabling them to improve their
own safety as well as that of other communities living in the area.
• Training and Development
• Conferences and ThinkTanks
• Development projects:
The most abhorrent element of the culture of violence in rural farming areas
is the unnecessary loss of life.
- Africa/South Africa
To contribute to a secure farming environment the Trust Fund has funded
more than 100 rural safety projects including the following:
• Innovation:
• Provision of radio communication and repeaters systems
- Market creation
• Installation of boom gates to monitor vehicle movement
- Industry research
- Technology
• Commercial advisory services
• Provision of number plate recognition camera systems
• Funding of rural safety equipment i.e. bullet proof vests, road block
equipment etc.
• Funding of research on the motives behind farm attacks
• Funding of provincial security desks
• Funding of rural safety information pamphlets
• Funding of trauma counselling services
• Funding of Agri SA’s rural safety committee activities
• Funding of Agri SA’s transformation communication initiative
Omri van Zyl
Chief Executive Officer
Landline: +27 (0)12 643 3400
Fax:
+27 (0)12 663 3178
Email:[email protected]
Inkwazi Building
Block A
1249 Embankment Road
Zwartkop X7
Private Bag X180
Centurion
0046
South Africa
Website:
www.agrisa.co.za
AGRI SA Value Proposition
5