agbiz conference to transform or not to transform€¦ · onto a learnership for 2016 with our...

AGBIZ CONFERENCE

TO TRANSFORM OR NOT TO TRANSFORM

That’s’ the question

31 May 2016Lord Charles JS Isaacs

© Western Cape Government 2012 |

Content of presentation

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1. Introduction

2. Definition of transformation

3. Options and opportunities for transformation

4. What transformation means in agriculture….


Introduction


Many perceptions of transformation

Many options for transformation

Demands for transformation at different levels

Legislation is directing transformation…

The question is ‘ what to do, when and with whom’


Definition of transformation


The Concise Oxford Dictionary ..’ elaborate spectacular scene in

pantomime with scenery etc. changing in sight of audience’…

Roget’s Thesaurus presents alternatives for Transformation:

Change

Alteration

Modification, etc.


Definition of transformation (continues)


Agri-BEE

BBEE

Land Reform

EE

Labour laws, and

Others

Options and Opportunities

Human Capital Development


Growing young agricultural professionals for tomorrow:

Human Capital Development Initiatives


The Western Cape Department of Agriculture is committed to transforming the agricultural sector through youth development

Internship Programme

Premier’s Advancement of Youth Project

Bursary/Scholarship Programme

Young Professional Person’s Programme

Agricultural Partnership for Youth Development Project ( an external

partnership initiative)

Growing young agricultural professionals for tomorrow:

Human Capital Development Initiatives


Student Internship

Growing young agricultural professionals for tomorrow: Human Capital Development Initiatives

Graduate Internship

An integrated learning

experience for students to

attain a qualification in

agriculture

Mentorship and work

experience for Graduates in

agricultural related fields.

Integrated learning and

relationship building for bursary

holders to serve vacation

internships.

Vacation Interns


The Department offers PAY Interns an

opportunity of exposure and

experience in agriculture with a 12

month focus on career planning,

improving matric marks through matric

revision classes.

Career exhibitions and registration for

tertiary studies.

IT training, soft skills, learners licence

classes making them more

marketable.

169 Interns were appointed. One

hundred and twenty three (123) -

73% of PAY interns have progressed to

further studies, of which 59% are

females.




INTERNS


Full scholarship awarded to 13 High School learners studying mathematics and sciences who have been identified as potential candidates for further studies in the Agricultural fields.

174 external bursaries were awarded since 2009 – 47% were females.

Graduates included;

8 Veterinary graduates – 3 serving their Compulsory Community Service.

9 Civil Engineer graduates – 8 placed in candidate engineering programmes – 1 appointed onto the YPP Programme to complete his Masters degree.

Scholarship Programme


Bursary Programme



This is a flagship programme designed on 2 levels, developing young professionals through mentoring, work experience, financial assistance and personal development training modules.

Taking youth of the designated groups to honours, masters and now extended to doctorate level.

Three (3) Master’s students graduated in 2015-2016 and have been appointed in the Department.

Four (4) YPPs are completing their Masters and 3 are completing their Honours as Pre-YPP students.

The YPP Programme now includes international exposure through the Agricultural Professional Fellows Programme.


The Project was founded as a result of the high unemployment rate, the rural unrest, the low literacy rate and poor skills level amongst our youth.

In 2014/2015 15 External Host Employers, signing MOUs entering into partnership, offering WCDoA interns, bursary holders and YPPs an opportunity of valuable work exposure and experience with them.

39 bursaries and 13 scholarships were awarded.

Exhibition for 800 high school learners at Boschendal

19 of the 51 interns placed, including Children of Agri Workers, were accepted onto a Learnership for 2016 with our College.

The Project has since evolved to include all youth of the Province.




Statistics of 2015

One hundred and two (102) Interns appointed (46 PAY, 16

student/graduates, 40 Agricultural Partnership for Youth Development –

27 registered for further studies in agriculture

2 YPPs graduated with Masters and was appointed with the Department

Eighty five (85) External bursaries were awarded in 2015

Exhibition held at Boschendal for 800 learners

Agricultural Partnership for Youth Development – 14 Bill Boards erected at

External Host Employers to encourage more external partnerships

Farm worker development


Provincial-wide Farmworker Household Census

18

Database of farm workers

Profile of farmworkers and their needs

A

B

• Provincial wide

• Two districts per financial year

• Three-year cycle

• Hotspots-Cape Winelands and

Overberg

• Eden and West Coast also

completed in April 2016

• Central Karoo and Metro- Current

Scope of project

• Particulars of the household;

• Particulars of the occupants of the household;

• Access to education;

• Access to health services;

• Skills, employment and small business services;

• Access to social services;

• Access to vital documentation;

• Social participation

• Dwelling infrastructure and access to basic

services

• Land tenure, access and restitution

• Food security;

• Communication services


Methodology employed

19PG MTEC 1 Engagement

All farms approached via farm associations

All farm workers, living on and off farm, interviewed of respondent farms

All farm workers, permanent and seasonal were interviewed (employment and citizenship status captured)

More than 1000 variables, hence extensive depth to data set

Local Municipality Number of Farms Number of Households Number of People

Stellenbosch 70 811 3 351

Drakenstein 54 645 2 839

Witzenberg 110 2 482 8 181

Langeberg 93 802 3 261

Breede Valley 88 1 005 4 222

Total 415 5 745 21 854

Household


12,57%

13,96%

9,54%

30,09%

21,34%

10,75%

1,74%

0 - 6 years

6 - 13 years

14 - 18

19 - 34

35 - 50

50 - 65

65 and older

Age Bands

8,37%10,26%

10,12%9,10%

10,06%9,44%

8,84%7,20%

7,90%6,23%

5,31%3,51%

1,94%0,74%

0,51%0,26%

0,12%0,06%0,04%0,01%

0

10

20

30

40

50

60

70

80

90

Age Distribution

• Average age of 27.37 years• 66% of individuals were below the age of

35 • While only just over 1% of the individuals

were above 65 years of age• 30.09% were regarded as youth i.e.

between the ages of 19 and 35 years old

Cape Winelands: Rural Youth- future employment?


Cape Winelands: Education and Employment Status

Education


11.92% of the population had obtained their matric qualification with less than 1% having some type of tertiary qualification

• Highest Stellenbosch: 15.54%• Lowest Langeberg: 8.76%

43.6% have some high schooling while 9.6% have no education

Employment

62.63% of individuals living in farmworker households have permanent jobs

both on and off the farm they live on

18.1% are unemployed, while

19.27% have either temporary or seasonal work


25%

21%

20%

15%

17%

Stellenbosch

Drakenstein

Witzenberg

Langeberg

Breede Valley

Matriculation

0,8%

0,7%

0,6%

0,5%

0,9%

0,6%

0,2%

0,2%

0,1%

0,7%

Stellenbosch

Drakenstein

Witzenberg

Langeberg

Breede Valley

Post Matriculation

ABET Tertiary

Cape Winelands: Education status


62%58%

57%

70%68%

12%16%

10%7% 7%

1%3%

17%

6%9%

25%23%

17% 16% 16%

Stellenbosch Drakenstein Witzenberg Langeberg Breede Valley

Employment vs. Unemployment

Permanent Temporary Seasonal Unemployed

Cape Winelands: Employment and Unemployment


WCDoA- Farm Worker Development Interventions

A unique agri worker focussed programme


Offering life skills training and development opportunities in partnership with NGO’s

Facilitating a referral System for agri workers to relevant programmes within government departments to

access services

Provision of pertinent intelligence to government for strategic planning on agri worker needs as a result of the

census

Facilitation of unique initiatives to improve the image and perceptions of work on farms, within the agricultural

industry, as menial and not requiring technical ability. Western Cape Prestige Agri Wards- 15 regions, 1 274

participants.

Year Number of Projects Beneficiaries Budget

Allocation

2014/2015 15 28 091 (many school

projects)

R2 070 200.00

2015/2016 17 8 878 R2 000 000.00

2016/ 017 12 7 252 R2 000 000.00

TOTAL 44 44 221 R6 070 200.00


Financial Literacy Skill Development

Partnerships make the difference


Avovision- an established company experienced in training 250 000 South Africans (Urban and Rural)

Using a Train the Trainer model

Western Cape agri workers’ needs identified- financial literacy life skills

Partners’ contribution:

WCDoA and Avovision Sharing networks

Identified geographic areas based on experience and needs identified- strike hotspot areas

Recruited 3 Trainers for Training Bootcamp facilitated by Avovision

Shared costs to cover training

Boschendal Farm made facilities available for training

Agri- worker training costs covered by ABSA and SANLAM


Financial Literacy Skill Development

Results


Trainers established training enterprises

Trainers engaged within the shared networks to establish relationships (including farms)

2 438 agri workers were trained in financial literacy in 2015

1622 sponsored by ABSA

816 sponsored by SANLAM

Land Reform


164 projects sampled. Representative of:

District Municipality Size (number of beneficiaries)

163 projects evaluated:

10 of which closed down

Sampling

Size of project farms No. of projects Oversample Evaluated Representation

1-3 beneficiaries 47 29 30 64%



51-100 beneficiaries 26 16 19 73%

101-200 beneficiaries 22 15 15 68%

201 + beneficiaries 15 12 11 73%

Unknown 11 7 6 55%

TOTAL 246 164 153 67%

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&docid=kqbul0dbQeJ7iM&tbnid=L8gNh8pcNv7f7M:&ved=0CAUQjRw&url=http://www.roomsforafrica.com/dest/south-africa/western-cape.jsp&ei=x08LU8CAHun40gWCtYGoBg&psig=AFQjCNHiTsNQUpxpahDuDXuH5lteirJeMA&ust=1393336538348392

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&docid=kqbul0dbQeJ7iM&tbnid=L8gNh8pcNv7f7M:&ved=0CAUQjRw&url=http://www.roomsforafrica.com/dest/south-africa/western-cape.jsp&ei=x08LU8CAHun40gWCtYGoBg&psig=AFQjCNHiTsNQUpxpahDuDXuH5lteirJeMA&ust=1393336538348392


Evaluation framework

Key categories for measuring success: Economic productivity: Type, infrastructure, expertise and management, support,

production, market access, business planning, income, debt & expenditure Socio-economic: Beneficiaries and workforce, shares & dividends, quality of life,

physical & living environment, household asset ownership, expenditure & income Environmental: Energy, Water, Sanitation, Solid Waste, Land and soil

Evaluation framework: Elements Indicators Evaluation

questions

Tools: Project questionnaire, beneficiary questionnaire, site visits


Analysis of project success

New projects (11) too little time for production to enable analysis of success

Commonage/food security/subsistence projects (17) rated separately

Developed a project rating system: based on the evaluation frame

Indicators identified per dimensions:

Economic productivity: 22 indicators (56%) Socio-economic: 12 indicators (31%) Environmental: 5 indicators (13%)

TOTAL: 39 indicators (100%)

Rating method:

Equal interval and Standard score percentile rank compared

Standard score percentile rank used

Project success classification utilised:

73% -100% Highly successful

53% - 72% Moderately successful

33% - 52% Challenged

0% - 32% Failed

http://www.google.co.za/url?sa=i&rct=j&q=door+to+door+surveys+cartoon&source=images&cd=&cad=rja&docid=Q4bZhXhsoLND3M&tbnid=TVOSjj-GA97ihM:&ved=0CAUQjRw&url=http://2509.cupe.ca/&ei=a-3fUdnIIO6o0AWu8ICIDw&psig=AFQjCNGhCtKCISwyZYShpyL2g60LFWaJmQ&ust=1373716200006735

http://www.google.co.za/url?sa=i&rct=j&q=door+to+door+surveys+cartoon&source=images&cd=&cad=rja&docid=Q4bZhXhsoLND3M&tbnid=TVOSjj-GA97ihM:&ved=0CAUQjRw&url=http://2509.cupe.ca/&ei=a-3fUdnIIO6o0AWu8ICIDw&psig=AFQjCNGhCtKCISwyZYShpyL2g60LFWaJmQ&ust=1373716200006735


ALL FAILED PROJECTS:• No market access contracts in

place

• No operational loans

• No skills development plan in place

• No mentorship

• No commodity committee support

• No production records in place

• Limited market access support received but for those that received support, support not sufficient

• No beneficiaries experienced very/good change in access to food to feed family

• No beneficiaries experienced very/good change in standard of physical living

• No beneficiaries experienced very/good change in satisfaction with availability of money

• No beneficiaries anticipate improvements in regularity and consistency of household income

Summary of findings

ALL SUCCESSFUL PROJECTS:

• Registered farm business, VAT registered, Tax registered, Bank account holders

• Compliant with labour law in terms of minimum wage and registration for UIF

• Market access of all produce

• Very/good rated non-financial support obtained for: training courses, mentors, FSD advice, market access

• Water from a reliable source

• Marketing rated as very good/good

• Business plan exists for current farming practices at start-up

• Sound financial management record keeping systems exist

• Cash flow exists

• Record keeping of:

• Monthly income & expenditure statements

• Production records

• Annual financial statements

• Projections of income & expenditure

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&docid=morcsYQPlRRWIM&tbnid=I57JXaJbeFAxyM:&ved=0CAUQjRw&url=http://www.bubblews.com/news/1719494-key-to-success-series-step-one&ei=iFELU_3iOeSg0QWkuoEY&bvm=bv.61725948,d.ZGU&psig=AFQjCNGEyIXy6PpAQ0Jt9iKQTKeOoS54Yw&ust=1393337084167837

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INDUSTRY SUPPORT (PARTNERSHIPS)


Commodity approach

33

“An institutional arrangement that draws in

multiple spheres of government and the

private sector, each understanding their

unique roles, working from the same plan,

towards achieving the same outcomes”

INSTITUTIONAL ARRANGEMENT

MOA

COMMODITIES

FRUIT DAIRY GRAINWOOL

+SHEEP

COMMODITY COMMITTEES –CPAC’s

•Industry standards•Crop type•Viability•Markets•Cash flow

CommitteeMembers

Department of

Agriculture

Casidra

BEE group

Commodity group

CASIDRA

BUSINESSPLAN

TERMS OF REFERENC

E

SELECTION OF

PROJECTSMOA

UNIT FOR TECHNICAL ASSISTANCE (UTA)

External Expert

Internal Expert

ViabilitySustainabilityGovernance

Training

Industry

RED MEAT


Boompie Project

35

The Western Cape Department of Agriculture is actively promoting the establishment of Partnerships as part of its Comprehensive Agricultural Support Programme (CASP) intervention.• This has became known as the “Commodity Approach”• The “Boompie Project” is part of the partnership with the Deciduous

Fruit Industry.Purpose of the Boompie Project• Expanding the area under fruit production of previously

disadvantaged farmers.– Both new and established.

• Link them to markets– Participate in existing value chains.–Hence, quality, cultivar and technical efficiency important.

Roles:• Industry provide trees and technical advice• Department paid for land preparation, irrigation, drainage, trellising• CPAC evaluated the viability of all projects.


Year 2009 2010 2011 2012Total/

Average

Ha established 52.9 108.2 93.3 58.2 312.6

Jobs created 79 162 140 87 469

Investment value (R mil) 9.4 19.3 16.7 10.4 55.8

Hortgro Spending (R mil) 2.03 5.32 3.20 2.60 13.14

CASP Spending (R milj) 1.5 3.83 3.43 1.90 10.66

Total support (R mil) 3.53 9.15 6.63 4.50 23.80

CASP Cost per ha (R) 28 371 35 427 36 727 32 645 34 103

CASP Cost of a job (R) 18 914 23 618 24 484 21 763 22 736

The “Boompie” Project

36

Source: BFAP (2013), Hortgro (2013) & own records & calculations (2013)

Industry av.: Establishment cost/ha: R178 622; Investment / job: R119 082


“Boompie” projectIf only own funds

were usedTimes more

Ha established 312.6 39.8 7.86

Jobs created 469 89 5.24

Net Present Value / Yr R25 987 321 R4 961 693 19%

Efficacy considerations: The “Boompie” Project

37

Source: BFAP (2013), Hortgro (2013) & own records & calculations (2013)

The value of working together…


Annual output

(R 1000)

Employment

(Number)

Export earnings

(R 1000)

Boompie project R 25 987 469 R 11 215

Agriculture R 19 082 112 R 2 345

Manufacturing R 12 046 32 R 1 386

Construction R 8 635 27 R 1 173

Wholesale & Retail R 7 676 35 R 959

Mining R 6 396 5 R 746

Finance R 5 224 11 R 746

Transport & Comm. R 320 1 R 1 599

Electricity R 320 1 R 107

Efficacy considerations: The “Boompie” Project

38

Source: Own calculations based on Pan-African Investment and Research Services (2011)

If the R10,66 million was invested in:


Value of partnerships

39

Through the partnership we could establish 7,86 times more fruit

and create 5,24 more jobs than without it.

Without the partnership only 19% of the economic activity would

have been created.

Investing money in the partnership created hundreds more jobs

than investment in manufacturing, construction, mining or retail.

With the partnership previously disadvantaged farmers could get

access to markets and appropriate technical support.


What transformation means in agriculture….


T = Team

R = Reality

A = Attitude

N = New / Novel

S = Specific / Special

F = Finance

O = Opportunities


What transformation means in agriculture….


R = Recognition

M = Management (shared)

A = Agriculture

T = Testing

I = Innovative

O = Organisation

N = Nurture

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