Fetsa tlala: integrated food production initiative 2013 Department of Agriculture, Forestry and Fisheries table of contents list of acronyms



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FETSA TLALA: INTEGRATED FOOD PRODUCTION INITIATIVE

2013

Department of Agriculture, Forestry and Fisheries

TABLE OF CONTENTS


LIST OF ACRONYMS




AgriSETA - Agricultural Sector Education and Training Authority
CARA - Conservation of Agricultural Resources Act; Act 43 of 1983
DAFF - Department of Agriculture, Forestry and Fisheries
DoBE - Department of Basic Education
DoCS - Department of Correctional Services
DoH - Department of Health
DRDLR -Department of Rural Development and Land Reform
DSD -Department of Social Development
ERP - Extension Recovery Programme
IFPI - Integrated Food Production Intervention
FIFPC - Fetsa Tlala Integrated Food Production Committee
GHS - General Household Survey
ha - hectare
IFSS - Integrated Food Security Strategy
MAFISA - Micro Agricultural Financing Institutions of South Africa
MTSF - Medium Term Strategic Framework
MDG’s - Millennium Development Goals
NAMC - National Agricultural Marketing Council
NDP - National Development Plan
NSNP - National School Nutrition Programme
RSA - Republic of South Africa

STATS SA - Statistics South Africa


SMME - Small Medium Micro Enterprises
SIP - Strategic Integrated Projects

  1. BACKGROUND AND CONTEXT OF FETSA TLALA

The Constitution of the Republic of South Africa, Section 27:1(b) states that every citizen “the right to have access to . . . sufficient food and water” and that “. . . the State must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of each of these rights.” (Constitution, 1996: 2)

Notwithstanding the development of Integrated Food Security Strategy (IFSS, 2002) to streamline, harmonize and integrate the diverse food security programmes, food insecurity still remains a challenge for the country especially at local household level.



The National Development Plan (NDP) sets out various methods and targets to eradicate poverty, reduce unemployment and eliminate inequality by 2030. It identifies Food and Nutrition Security as a key element of both poverty and inequality. As a result the NDP makes reference to a number of steps that will improve food security, including the expanded use of irrigation, security of land tenure, especially for women and youth, and the promotion of nutrition education.

Fetsa Tlala is an integrated government framework that seeks to promote food security and address structural causes of food insecurity, which continue to perpetuate inequality and social exclusion. Fetsa Tlala is aimed at more than just creating a food secure country for all South Africans, but to also to eradicate hunger. It is therefore an overarching framework to maximise synergy between the different strategies and programmes of government and civil society. In line with the framework, a set of targeted policy responses (policy instruments) will be implemented. These include but not limited to the following:

Table 1: Targeted policy responses

PROGRAMME RESPONSES

SPECIFIC INTERVENTION

LEAD DEPARTMENT

Social Relief of Distress

Restructuring to reach households that suffer from chronic under-nourishment.

Department of Social Development

National School Nutrition Programme (NSNP)

Expansion of NSNP to cover non-school days and holidays

Department of Basic Education

Food fortification and Nutrition education

Introduction of “micro-nutrient sprinkles” which can be added to food that is already prepared.

Department of Health


Early Childhood Development

To offer nutritious meals to children between the ages of 0-4 years.

Department of Social Development

Food distribution


The state should ensure that a larger and more robust network of ‘food distribution centers are established (i.e. Community Nutrition and Development Centers).

Department of Social Development

One Million Hectare Food Production Programme

Putting 1 000 000 hectares into crop production constituted by

550 000 ha from land reform beneficiaries and 450 000 ha from communal lands



Department of Agriculture, Forestry and Fisheries (DAFF) supported by the Department of Rural Development and Land Reform (DRDLR)

Government through these policy responses amongst others intends to guarantee the right of access to adequate food thus contributing towards the achievement of the Millennium Development Goals (MDG’s). The initiative will bring together all organs of states and non-state actors in implementing a plethora of policies related to food and nutrition security.

  1. PROBLEM STATEMENT

It is expected that the world’s population of approximately 7 billion will increase to 9 billion by 2050, resulting in the need to annually produce another 1 billion tonnes of cereals and moreover, it is estimated that by 2030, an additional 120 million ha of land will be required in order to support the growth in global food requirements. Currently, almost 1 billion people are undernourished (of which 239 million are in Sub-Saharan Africa), and even if agricultural production doubles by 2050, one person in twenty (5%) still risks being undernourished in developing countries. It is therefore clear that “future agricultural production will have to rise faster than population growth”, most notably on existing and dwindling agricultural land (RSA has 30% decline in land under production during the period between 1994/95 and 2008/09). The effective use and preservation of agricultural land is therefore of utmost importance. . Studies have shown

Since government introduced intervention programmes, household access to food have improved even though 12 million people are still vulnerable to food insecurity (GHS, 2012). Using the Household Food Insecurity Access Scale which is aimed at determining households’ access to food, the percentage of South African households with inadequate or severely inadequate access to food decreased from 23, 9% in 2010 to 21, 5% in 2012. Between 2002 and 2012, the percentage of households that experienced hunger decreased from 29,3% to 12,6% while the percentage of individuals who experienced hunger decreased from 23,8% to 10,8% (GHS, 2012)



Investing in agriculture is one of the most effective strategies for reducing poverty and hunger whilst promoting sustainability. The recent Labour Force Survey conducted by Statistics South Africa (Stats SA) shows that the unemployment rate rose to 25.6% in the second quarter of 2013. The report also shows that agriculture was the lead industry that contributed positively to the net gain of 44 000 jobs observed in the first quarter on a quarter to quarter basis (Statistics South Africa, Labour Force Survey, Quarter 1, 2013). This is a clear indication that investment in agriculture continues to play a significant role in the livelihoods of many households. Government has however, realised that eradicating hunger sustainably will require a significant increase in agricultural investment and more equitable distribution of resources.



  1. FETSA TLALA INTEGRATED FOOD PRODUCTION INITIATIVE

Urbanisation and declining agrarian activities in significant parts of the country, including the subsistence sector, have transformed the South African economy into a wage economy. Most households are net consumers of purchased food, rather than producers thereof. Access to food has thus become a function of household cash income and thus cash deficit households are more likely to experience inadequate access to food. Government through Fetsa Tlala Framework intends to support subsistence and smallholder farmers to put one million hectares under production by 2018/19.

Table 2: One million hectares trajectory

Financial Year

Year 0

2013/14

Year 1

2014/15

Year 2

2015/16

Year 3

2016/17

Year 4

2017/18

Year 5

2018/19

Cumulative targets (ha)

350 000

470 000

590 000

710 000

850 000

1000 000

It is expected that beneficiation of One Million Hectares programme will in the main accrue to the indigent and vulnerable sections of our society. In the implementation of the One Million Hectare Intergrated Food Production Initiative, government seeks to reclaim fallow and unproductive arable land in communal areas including Land Reform farms, as part of policy and programme crafted to realize the Millennium Development Goals.

In contemplation of appropriate government interventions, especially in a country with resource limitations like South Africa, it is considered prudent to select the most cost effective policy responses. In this regard the primary focus, although not exclusive, will be to cultivate maize, beans and potatoes as the staple commodities which inform the basic dietary needs of the indigent. In the first four years of implementation the focus will be on the stabilisation of production and productivity of maize and beans. This will be attained through provision of mechanisation, production inputs and advisory services. Commercialization will incrementally be included in the programme, parallel with the implementation of Strategic Integrated Project (SIP 11) to complete the agricultural value chain.

The response is further necessitated by the fact that agricultural land is under threat from other competing sectors and these could ultimately threaten food security of the country in the long term. Furthermore, climatic fluctuations and variability are increasingly more pronounced, thus requiring appropriate agricultural interventions to mitigate against these risks.

Therefore, for 1 000 000ha programme to succeed, it needs to find greater expression within the Governments Medium Term Strategic Framework (MTSF) and budgetary processes. Accordingly, this will enable the State to prioritize and mobilise resources required for the successful implementation.



3.1 GOALS AND OBJECTIVES

3.1.1 The goal of the initiative

The overarching goal of the initiative is to ensure food availability thus contribute towards the NDP goal of ending hunger by 2030.



3.1.2 Specific objectives

The one million hectare Integrated Food Production Initiative espouses the following objectives:



  • Increase food production capacity of subsistence and smallholder producers.

  • Increase availability and access to locally produced fresh food products.

  • Create opportunities for agricultural value chain development at local level

  • Create opportunities for SMME development at local level.

  • Create job opportunities within the agricultural sector.

3.2 PROGRAMME PRINCIPLES

The following principles will guide the programme:



  • One Million Hectare initiative is targeted for production.

  • The primary focus of the intervention is the production of staple commodities (maize and beans including potatoes)

  • Beneficiaries will primarily be subsistence and small holder farmers

  • Mechanisation will be sourced from SMMEs to ensure attainment of local economic development. In this case SMME’s will be contracted to undertake ploughing, planting, etc.

  • The Provincial Departments in partnership with local authorities will ensure that participants are fully informed of the intention and implementation

  • The Government will provide the necessary production inputs, as well as facilitate off-take agreements.

  • The provincial departments will provide first-line support to farmers and collect information on the fields prepared, the extent and to verify that work has been undertaken.

  • This programme will be complimented by provincial poverty packages such as the One-Home-One-Garden, Masibuyele emasimini, Mohoma mobung, Urban agriculture, Suitcase Programme, etc.

  • Skills development and transfer of knowledge will be undertaken in conjunction with the Agri-SETA.

  • The initiative will embrace Public-Private Partnership.

3.3 RISKS AND CONSTRAINTS

The following constraints/risks have been identified and the mitigation thereof presented in the table below:



Table 3: Risks and possible mitigation measures

Risk

Mitigation

Funding

Undertake budget repriorisation and prepare business case for additional allocation of resources. Apart from additional funding that will be required for mechanisation and production inputs, provincial departments should commit reasonable budgets to ensure support for the implementation of the Integrated Food Production Initiative.

Adverse climatic conditions

Advocate for the adoption of climate smart agricultural methodologies, including conservation tillage

Commodity price volatility

Policy review on agricultural commodities and promotion of local food production,

Storage and processing facilities

Technologies should be procured for storage and arrangements for processing should be entered into before the harvesting season commences.

Skills / technology

Training and capacity building for smallholder farmers and local co-operatives will be provided on a continuous basis.

3.4 PROGRAMME PILLARS

The programme pillars mentioned hereunder are fundamental prerequisites for the Food Production Initiative to achieve its intended objectives. These pillars are based on current socio-economic and environmental considerations to ensure sustainable food and nutrition security. Each of the pillars is explored in detail below:



3.4.1 Pillar 1 - Land capability

Land capability includes the climatic and physiological considerations for the identified crops and determines the location of what can be produced. South Africa consists of 122 million ha of land, of which approximately 13% is potentially arable (land capability classes I, II & III). Approximately 100 million ha (82.3% of land in South Africa) is classified as “farm land” (arable and grazing land), with around 12.75 million ha currently being used for arable agricultural purposes.



The following table gives an overview of the distribution of agricultural land capability classes I – VIII in South Africa; class I is the best available land for purposes of agricultural production while class VIII is not suitable for commercial farming. Classes I-III are regarded as high value agricultural land with a very high to moderate suitability for rain-fed crop production:
Table 4: Land capability

Land Capability Class

Total (ha)

Unavailable (ha)

Remainder (ha)

I

2 733

99

2 634

II

1 878 597

158 091

1 720 506

III

14 003 339

1 031 922

12 971 417

IV

16 447 446

788 505

15 658 941

V

13 609 335

254 809

13 354 526

VI

18 114 793

538 692

17 576 101

VII

45 343 216

281 774

45 061 442

VIII

12 279 370

85 398

12 193 972

Water

246 052

-

-

TOTAL

121 924 881

3 385 343

118 539 538

In an attempt to explore the feasibility of the One Million Hectare Food Production Initiative, an assessment to determine areas suitable for dry land maize and beans production was conducted by the department. The initial land targets per province, to be included in this initiative are indicated in the table below:

Table 5: Targeted Food Production Initiative hectorage per province [with GP and WC prioritising urban agriculture].

Province

Communal land (Ha)

Commercial land (Ha)

Total /Province (Ha)

Eastern Cape

150 000

150 000

300 000

Limpopo

100 000

100 000

200 000

KwaZulu Natal

80 000

120 000

200 000

Mpumalanga

30 000

30 000

60 000

Northern Cape

1 500

1 500

3 000

North West

80 000

120 000

200 000

Free State

-

27 000

27000

Western Cape

-

5 000

5 000

Gauteng

-

5 000

5 000

Grand Total

441 500

558 500

1 000 000

3.4.2 Pillar 2 – Mechanisation support services

Generally, subsistence and small-holder farmers’ ownership of mechanisation is not cost – effective due to the scale of their operations. The aim of government is to provide the traction required to ensure underutilised land is productive. The mechanization value chain must be functional at local level to ensure sustainability of the initiative.

Government will create an enabling environment for the provision of mechanisation service to be exploited by SMMEs.

3.4.3 Pillar 3 – Production inputs and infrastructure

Through Food Production Initiative, the State will support subsistence and smallholder producers with production inputs which include seeds, fertilizer, pesticides, herbicides and seedlings for crop production. The initiative endeavours to secure such inputs in advance given that most of these consumables are imported and are also in demand at the same period.

Production inputs will be provided up to a 100% for the subsistence farmers. These categories of farmers are not able to access production loans due to the scale of their production. Support for the smallholder farmers will be provided on a sliding scale over five years, with beneficiaries receiving 100% production input in the first year. In the second, third, fourth and fifth year of production, producers (smallholder) will receive about 70%, 50%, 30% and 10% of the production input support and the remaining 30%, 50%, 70 and 90% will be respectively financed through a production loan offered by MAFISA, Land Bank’s Retail Emerging Market unit or any other Development Financial Institution including own contribution.

In line with the NDP on the expansion and rehabilitation of irrigation schemes, the State will make reasonable means to provide wherever possible related infrastructure to enhance production efficiency. Provision of irrigation, storage and fencing infrastructure especially the latter will be critical in ensuring successful delivery of the initiative.




NDP: Targets on Rural Development and Agriculture

The irrigation infrastructure investment plans for the agricultural sector will contribute to the stimulation and growth of the rural economy. Optimum utilisation of the infrastructure implemented through SIP 11 would require that rural communities have sufficient productive capacities to effectively produce the required quantities. This will therefore enable the development of the local agricultural value chain.



3.4.4 Pillar 4 – Market access

South Africa contributes significantly to food procurement. Government procures food products and food related services worth over R7 billion each year. The food industry which is dependent mainly on the agricultural sector stimulates major income and employment linkages throughout the economy. Through this programme Government will re-prioritise its procurement on food to create market for the subsistence and small holder farmers in rural, urban and peri-urban areas. Fair prices from what the market provides will be an integral component of this programme to consciously empower the emerging agricultural sector.

The National Agricultural Marketing Council (NAMC) will determine fair prices per commodity supply in each of the food programmes of Government. The Preferential Procurement Policy of 2005 will allow the enforcement of preferential procurement position which will be supported by Government Departments such as DBE (National School Nutrition Programmes), DoH (health centres), DoCS (correctional facilities), DSD (food distribution) and the Department of Defence and Military Veterans.

3.4.5 Pillar 5 - Capacity building

In order to realise full potential the appropriate training and capacity building will be provided. The State will provide the required resources for training and capacity building. All farmers participating will be subjected to some capacity building; either training or mentorship which will be based on needs assessment per farmer category. The Colleges of Agriculture will be used to offer training on production, post-harvest technologies, product quality requirements, packaging and marketing aspects. This will also include joint initiatives with the private sector, universities and SOE’s.

On-farm and demonstrations will form part of farmer training and will ensure that training is provided to farmer groups rather than individual farmers for the efficient delivery and cost effectiveness. The success of the initiative will also depend on the advisory services rendered by Extension Officers. The initiative is therefore inextricably linked to the current Extension Recovery Programme (ERP) championed by Department of Agriculture, Forestry and Fisheries.

3.5 GOVERNANCE / INSTITUTIONAL ARRANGEMENTS

Nationally, the Integrated Food Production Initiative will be coordinated and led by the Department of Agriculture, Forestry and Fisheries (DAFF) supported by relevant national and provincial departments. These supporting departments will accordingly form part of a Steering Committee to be referred to as Fetsa Tlala Integrated Food Production Committee. Although run by Government, the committee will encourage the participation of the Private sector.


3.5.1 Role of the Integrated Food Production Committee:

  • Strategically guide the spatial implementation of the initiative in line with national priority focal areas

  • Provide expert advice on food and nutrition security matters within agriculture, forestry and fisheries sector, including food security early warning system.

  • Advice the Sector in terms of decisions in relation to food production.

  • Ensure Monitoring and Evaluation of the initiative

3.6 BUDGET

The initiative is premised from the position that South Africa has limited financial resources, hence the choice of strategic responses is based on staple food production for immediate impact. The proposal below does not discount the important role played by other agricultural commodities, however it is merely focused on maize and bean production. This strategy will be reviewed at the end of the Medium Term Strategic Framework ending 2018/19 financial year. The tables below therefore provide an indication of the financial resources required for production inputs, inclusive of mechanisation, focussing on maize and beans as staple commodities.



Table 6: Estimated production costs per hectare.

Commodity

Production cost /ha

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

1. Maize

R 8 000

R 8 480

R 8 988

R 9 527

R10 098

R 10 703

2. Beans

R 10 000

R 10 600

R 11 236

R 11 910

R 12 624

R 13 381

Table 7: Cropping plan for 1,000,000 hectares.

Crop

Land Allocation

Province ( ‘000 ha)

Total Land Allocation

EC

KZN

LP

MP

NC

FS

NW

Maize (80%)

240

160

160

56

2.4

21.6

160

800 000

Beans (20%)

60

40

40

14

0.6

5.4

40

200 000

Total

300

200

200

70

3

27

200

1  000 000

Table 8: Implementation plan/Action Plan


Commodity

Budget requirement (Rand=Billion)

Year 0

2013/14


Year 1

2014/15


Year 2

2015/16


Year 3

2016/17


Year 4

2017/18


Year 5

2018/19


Maize (ha)

280 000

376 000

472 000

568 000

680 000

800 000

Beans (ha)

70 000

94 000

118 000

142 000

170 000

200 000

Total (ha)

350 000

470 000

590 000

710 000

850 000

1000 000

Budget (R-’000 000)

R 2940

R 4180

R 5570

R 7100

R 9010

R 11240


3.7 MONITORING AND EVALUATION

Monitoring and evaluation (M&E) is a critical component of the initiative. An integrated M&E system will generate timely reports on progress made towards achieving the objectives, Financial and performance indicators will be used to monitor the effective and efficient use of resources.



  1. CONCLUSION

In accordance with NDP vision 2030 statement “we have food on the table”, the Fetsa Tlala Integrated Food Production Initiative endeavours to contribute towards food and nutrition security for all.


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