progress report on agri-parks presentation to the joint portfolio

1

Progress Report on Agri-Parks

Presentation to the Joint Portfolio Committee on Rural

Development and Land Reform and Agriculture Forestry and

Fisheries

24 June 2015

1. Introduction

2. Guiding Principles

3. Mega Agri-Park Concept

4. Strategic Objectives on Agri-parks

5. Agri-parks Definition

6. Agri-parks produce and information flow

7. Clarification of terms

8. Components of an Agri-parks in a District

9. Static representation of the Agri-Park Model

10.Farmer Production Support Unit

11.Agri-hub Unit

12.Agri-park network diagram (small scale)

13.Agri-park network diagram (large scale)

14.Rural Urban Linkages: Market Centres

15.Graphic representation of the National Mega

Agri-park Network

1. Catchment Norms and Standards for Agri-

parks.

2. High level Agri-park Programme

1. Sites Confirmed by Provincial HODs

Agriculture

2. Budget

3. Rollout Plan

4. Progress and next steps: Agri-park rollout

5. FPSU Readiness Plan

6. Example of how the Agri-parks Model Works

Spatially: Free State Example

Content

2

Introduction 1. The concept for Agri-Parks draws from existing models here and abroad, including

educational/experimental farms, collective farming, farmer-incubator projects, agri-

clusters, eco-villages, and urban-edge allotments and market gardens.

2. These models may exist on both public and private lands. Agri-parks can serve as

transition zones between urban and agricultural uses. The naming of the concept as a

“park” is intended to convey the role the Mega Agri-park will play in open space

preservation.

3. While the term suggests the permanent land conservation and recreational use

exemplified by the public park, it also evokes the traditional model of an agricultural

business park or hub, where multiple tenants and owners operate under a common

management structure.

3

Introduction (continued)

4. Agri-parks provide networks of contacts between producers, markets and processors, but

also provide the physical infrastructure required for the transforming industries.

5. The focus of the agri-park is primarily the processing of ‘agricultural products’ (and the mix

of ‘non-agricultural’ industries may be low or non-existent). Of prime importance will be

linkages between the parks and surrounding agricultural land for production;

6. The Agri-park approach will include the selection and training of smallholder farmers, as

well as selecting farms per province for the placement, incubation and training of

unemployed agricultural graduates and other agro-entrepreneurs

4

8. The Agri-parks will be farmer-controlled.

9. The Agri-Park Programme forms part of Government’s undertaking to review all land

reform policies as enunciated in the 2011 Green Paper on Land Reform and the

support that needs to be provided;

10. The model will have a strong social mobilisation component so that black farmers and

agri-business entrepreneurs are actively mobilised and organised to support this

initiative

11. The DRDLR’s strategic partnerships with key government departments such as the

Department of Agriculture, Forestry and Fisheries and the Departments of Cooperative

Governance and Traditional Affairs and other spheres of govt.

12. State land will be used for both production and processing (the 25 state farms per

Province, linked to the DRDLR’s Animal and Veld Management Programme).

Introduction (continued)

5

10 GUIDING PRINCIPLES FOR AGRI-PARK ESTABLISHMENT

1. One Agri-Park per District (44)

2. Agri-parks must be farmer controlled.

3. Agri-parks must be the catalyst around which rural industrialization will takes place.

4. Agri-parks must be supported by government (10 years) to ensure economic

sustainability.

5. Strengthen partnership between government and private sector stakeholders to

ensure increased access to services (water, energy, transport) and production on the

one hand, while developing existing and create new markets to strengthen and

expand value-chains on the other.

6

6. Maximise benefit to existing state land with agricultural potential in the provinces,

where possible.

7. Maximise access to markets to all farmers, with a bias to emerging farmers and

rural communities.

8. Maximise the use of high value agricultural land (high production capability).

9. Maximise use of existing agro-processing, bulk and logistics infrastructure, including

having availability of water, energy and roads.

10. Support growing-towns and revitalisation of rural towns, in terms of high economic

growth, high population growth over past 10 years and promote rural urban linkages

10 GUIDING PRINCIPLES FOR AGRI-PARK ESTABLISHMENT (continued)

7

Village

Rural Town

Farm

Assessment of

opportunities

Assessment of

opportunities

Assessment of

opportunities

Assessment of

opportunities

Assessment of

opportunities

STEP 1:

Assessment

STEP 2:

Project Development

STEP 3:

Project Implementation /

Production

Village

Rural Town

Farm

Village

Rural Town

Farm

Village

Rural Town

Farm

Village

Rural Town

Farm

Warehouse

Municipality 1

Municipality 2

Municipality 3

Municipality 4

Municipality 5

Training

facilities

The makings of a rural

industrial hub, based on

relative economic advantage.

• Every rural municipality a CRDP site;

• Back to Basics Programme;

• Municipal IDP a planning tool.

9

Levers

Internal (DRDLR) • AVMP • RVCP • RECAP • Restitution • PLAS • Narysec • Revitalisation of Rural towns

External (other depts) • APAP • CASP • Ilema Letsema • MIG • IPAP • CWP • EPWP • Food banks Private Sector • Commodity groups • Cooperatives • Markets • Agri-Biz

10

Strategic objectives of Agriparks • Establish Agri-Parks in all of South Africa’s District Municipalities that will kick start the

Rural Economic Transformation for these rural regions;

• Promote growth of the smallholder sector by contrbuting to the 300 000 new small-scale

producers, as well as to the 145 000 new jobs in agro-processing by the year 2020 (as

set out in the NGP);

• Promote the skills of and support to small-holder farmers through the provision of

capacity building, mentorship, farm infrastructure, extension services, production inputs

and mechanization inputs;

• Strengthen existing and create new partnerships within all three spheres of government,

the private sector and civil society to develop critical economic infrastructure such as

roads, energy, water, ICT and transportation/logistics corridors that support the agri-park

value chain;

11

• Enable producer ownership of the majority of Agri-Parks equity (70%), with the state and

commercial interests holding minority shares (30%);

• Allow smallholder producers to take full control of Agri-Parks by steadily decreasing state

support over a period of ten years;

• Bring under-utilized land (especially in Communal Areas Land and land reform farms) into

full production over the next three years, and expand irrigated agriculture; and

• Contribute to achievement of the NDP’s “inclusive rural economy” and target of 1 million

jobs created in agriculture sector through creating higher demand for raw agricultural

produce, primary and ancillary inputs, as well as generating increased downstream

economic activities in the sector.

Strategic objectives of Agriparks (continued)

12

An Agripark (AP) is a networked innovation system of agro-production, processing,

logistics, marketing and training and extension services, located in District Municipalities.

As a network it enables a market-driven combination and integration of various agricultural

activities and rural transformation services. The AP will comprise of three basic units:

1. The Farmer Production Support Unit (FPSU). The FPSU is a rural outreach unit connected with

the Agri-hub. The FPSU does primary collection, some storage, some processing for the local

market, and extension services including mechanisation.

2. Agri-Hub Unit (AH). The AH is a production, equipment hire, processing, packaging, logistics and

training (demonstration) unit.

3. The Rural Urban Market Centre Unit (RUMC). The RUMC has three main purposes;

i. Linking and contracting rural, urban and international markets through contracts.

ii. Acts as a holding-facility, releasing produce to urban markets based on seasonal trends.

iii. Provides market intelligence and information feedback, to the AH and FPSU, using latest

Information and communication technologies.

Definition

13

Clarification of terms: FPSU

A Farmer Production Support Unit (FPSU): Are Centers (more than one per district) of:

a. Agricultural input supply control, in terms of quality, quantity and timeous deployment of

inputs.

b. Extension support and training, using Universities, agricultural graduates and Narysec

working in a symbiotic relationship to “hold-hands” with farmers over the next 10 years.

c. Mechanization support (tractor driving, ploughing, spraying, harvesting etc.)

d. Machinery, servicing workshop facilities.

e. Local logistics support, which could entail the delivery of farming inputs, transportation

post-harvest, transportation to local markets.

f. Primary produce collection.

14

Clarification of terms: FPSU (continued)

g. Weighing of produce and stock.

h. Sorting of produce for local and other markets.

i. Packaging of produce for local markets

j. Local storage.

k. Processing for local markets (small scale mills etc.)

l. Auction facilities for local markets

m.Provide Market information on commodity prices (ICT).

n. Farmers wanting services and support from the FPSU will register with the FPSU of

their choice.

o. Small Business Development and Training center.

p. Banking

q. Fuel (energy center)

15

Clarification of terms: AH Agri-hub: Agri-hubs are located in central places with in a District Municipality, preferably

places both sufficient, physical and social infrastructure to accommodate:

a. Storage/warehousing facilities; cold storage, dehydrators, silos etc.

b. Weighing facilities

c. Agri-processing facilities;ginners, mills, abbitoirs,

d. Enterprise development areas that lease space to high intensity start-up industries that

can benefit from the inputs of outputs of the Agri-hub, i.e. piggeries, tunnel grow crops,

bio-gas production etc.

e. Large scale Nurseries to supply FPSUs.

f. Packaging facilities for national and international markets.

16

Clarification of terms: AH (continued)

g. Logistics hubs for collection of goods from the FPSUs.

h. Transport service workshops and spare parts for larger maintenance tasks of Agri-hub

and FPSU equipment.

i. Agri-cultural technology demonstration parks to to train farmers in the AP catchment area

on new technologies in terms of fertilizers, plants and seeds, irrigation, energy use and

farm implements

j. Soil testing laboratories.

k. Accommodation for extension training and capacity building programmes

l. Housing and recreational facilities for workers and Agri-hub staff.

m.Business, marketing and Banking facilities, (ICT)

17

Clarification of terms: RUMC

A Rural Urban Marketing Center (RUMC): RUMCs are located on the periphery of large

urban areas,these facilities provide:

a. Market intelligence

b. Assist farmers, processors in managing a nexus of contracts.

c. Large warehousing and cold storage facilities to enable market management.

d. Logistic and transport in collection of produce from FPSUs or Agri-hubs

e. Both FPSU’s and Agri-hubs provide inputs to the RUMC.

f. Agri-parks share RUMCs.

18

MARKET

Info

rmatio

n

Agripark produce and information flows

Farmer Production Support Unit (FPSU)

Agri-Hub (AH)

Rural Urban Market

Center (RUMC)

AGRIPARK (AP)

Info

rmation

Pro

du

ce

1. SHFs will be encouraged to use the Agripark

process established as depicted. It is within t

his process that SHF will be supported over t

he next ten years

2. SHF will be able to move produce from the

FPSU to the RUMC without going through th

e AH, if no further value-adding or packagin

g is required.

3. The efficiency of the system services of the A

gri-park process will determine its use by far

mers.

CF can use the Agri-park

process established as

depicted. However due to

their existing experience and

product volumes they may

choose to enter the AP

process at the AH, RUMC

or even go directly to

the Market.

Commercial Farmer (CF) Small Holder Farmer (SHF)

Co-operatives

19

Stakeholders and components of an AGRIPARK in a District

20

Co

mp

on

en

ts o

f a

n A

GR

IPA

RK

in

a D

istr

ict (c

on

tin

ue

d)

21

Static representation of the Agri-

park Model

22

Unpacking the model….

23

Farmer Production Support Unit

24

Agri-Hub facilities

25

Ag

ri-p

ark

Ne

two

rk

(sm

all

scale

)

26

FPSU

FPSU AH

FPSU

Ag

ri-p

ark

Netw

ork

(larg

e s

cale

)

27

Rural Urban Linkages: Market Center

28

Graphic representation of the National Mega Agri-park Network

29

GUIDELINES FOR ROLLOUT OF AGR-IPARK UNITS

COMPONENT Proposed catchment area in

areas of low farmer density

Proposed catchment area in

areas of high farmer density

FPSU 30km 10km

AGRI-HUB 120km 60km

RUMC 250km 150km

Catchment guidelines for Agri-parks

30

High Level Project Programme

31

Project Programme (cont)

32

Areas confirmed by Provinces

33

Process followed

Land Capability and commodities

1

44DMS & 27 Priority Districts +

2

EDD Function Regions (growing + declining areas) +

3

PROVINCE

DISTRICT

DISTRICTSIZE(Ha)

NUMBEROFHOUSEHOLDSINTHEDM

NUMBEROFVILLAGESINTHEDM

TOTALREGISTEREDSTATELANDINTHEDM(Ha)

TOTALNUMBEROFLANDPARCELSINTHEDM

VACANTSTATELANDINTHEDM(Ha)

NUMBEROFHIGHVALUE(APAP)COMODITIESIN

THEDM(outof12)

LOCALMUNICIPALITY Matatiele Mbizana Ntabankulu Umzimvubu Amahlathi GreatKei Mbhashe Mnquma Ngqushwa Nkonkobe Nxuba

# of Villages 424 601 286 368 285 78 631 580 323 311 16

Total Households (2011) 65900 57623 31972 57999 39603 18237 63744 78887 20746 48871 7682

#ofgatewaytowns 1 1 1

#ofvacantregisteredstatelandparcels 2 3 1 3 4 7

VacantRegisteredStateLandAvailable(ha) 640,86 708,16 179,77 179,65 2001,86 681,24

TotalareaofRegisteredStatelandper

municipality(ha) 51735,1 17374,52 14,61 3716,54 42567,65 2997,75 5,33 1695 42823,65 99374,46 630,31

Totalareaofmunicipality(ha) 435230,96 241671,93 138495,78 257723,2 482022,66 173599,03 316945,49 327024,09 224090,59 362617,54 273192,18

#ofagricextensionoffices 1

#offisheryoffices 1 1 1

#offorestryoffices 2 5 7 5 9 13 1 8 1

#ofSAGISAgri-Processors 2

#ofSAGISAgri-Firms/Co-ops

#ofwinecooperatives

#ofcommercialcooperatives(other)

#offreshproducemarkets

WHEAT 1 1 1 1 1 1

SOYA 1 1 1 1 1 1 1 1

POULTRY 1 1 1 1 1 1 1 1

FRUIT&VEG

WINEINDUSTRY

MAIZE 1 1 1 1 1 1 1

BIOFUELS 1 1 1 1 1 1 1 1 1 1

REDMEAT 1 1 1 1 1 1 1 1 1 1 1

SORGHUM 1 1 1 1 1 1 1 1 1 1

FORESTRY 1 1 1 1 1 1 1 1 1 1 1

FISHERIES&AQUACULTURE

COTTON 1 1 1

5

9

2159492

277770

2224

190094

15

9

1349 3043

Amathole

1073122

213494

1679

COMOD

ITYA

REA-ABO

VE2,5T

ONSP

ER

HECT

ARE

STAT

USQUO

AlfredNzo

72841

EasternCape

APAP Commodity analysis per Local Municipality

4

Proposed Agri-park sites per District

5 PROVINCE DISTRICTMUNICIPALITYNAME 27DMs

ProposedSitedbasedonGatewayTown

ProposedAlternateSites ProvincialSelectedAgriparkSites

EasternCape(8DMs) AlfredNzo AlfredNzo Matatiele MountFrere/Umzimvubu Matatiele

Amathole Amathole Butterworth Butterworth

BuffaloCityCacadu Cacadu GraafReneit/GrahamstownChrisHani ChrisHani Queenstown Whittlesea/Craddock Ncora

JoeGqabi JoeGqabi AliwalNorth Sterkspruit GreyTown/Sterkspruit

NelsonMandelaBayMetroO.R.Tambo O.R.Tambo Mtata Flagstaff/Lusikisiki Mtata

FreeState(5DMs) FezileDabi Kroonstad Sasolburg Parys

Lejweleputswa None None VirginaMangaung Thabanchu

ThaboMofutsanyane Phuthadithaba

Harrishith/Bethlehem/Ficksb

urg/Ladybrand Tshame(Harrishith)

Xhariep Xhariep Trompsburg Redderburg/Zastron Springfontein

Gauteng(5DMs) CityofJohannesburg EikenhofCityofTshwane

Ekurhuleni

Sedibeng SebokengArea

WestRand WestRand MogaleCity Brandvlei(Randfontein)

KwaZuluNatal(11DMs) Amajuba Amajuba NewCastle DanhausereThekwiniiLembe iLembe Stanger Mandeni Kwadakuza

HarryGwala HarryGwale Kokstad UmzimkuluLM(EbuthaFarm)

Ugu Ugu PortEdward IzinqoleniArea(HorseShoeFarm)UMgungundlovu UMgungundlovu Petermaritzburg UmgeniLMUmkhanyakude Umkhanyakude Mkhuze StLucia Mkhuze

Umzinyathi Umzinyathi Nqutu Dundee/Greytown Dundee

Uthukela Uthukela Estcourt Ladysmith OkhalambaLM(Bergvileletc)Uthungulu Uthungulu Eshowe Nkandla EshoweZululand Zululand Vryheid Pongola Vryheid

Limpopo(5DMs) Capricorn Capricorn Blouberg AganangLocalMunicipality

GreaterSekhukhune GreaterSekhukhune JaneFurse Grobersdal GroblersdalMopani Mopani Tzaneen Giyani Tzaneen

Vhembe Vhembe Thoyoyando Musina/Mhakado Nwanedi40kmFromMusinaproposedSEZWaterberg Waterberg Lephalale Bellabella/Thabazimbi Modimolle

Mpumalanga(3DMs) Ehlanzeni Ehlanzeni Bushbuckridge Hazyview BushbuckridgeGertSibande Mkhondo

Nkangala KameelPoortA(DrJSMoroka)

NorthWest(4DMs) Bojanala Bojanala Brits Ledig Makapanstad

DrKennethKaunda

DrRuthSegomotsiMompati DrRuthSegomotsiMompati Vryburg Taung VryburgNgakaModiriMolema NgakaModiriMolema Licthenburg Springbokpan

NorthernCape(5DMs) FrancesBaard Kimberely WarrentonJohnTaoloGaetsewe JohnTaoloGaetsewe Kuruman Kuruman

Namakwa SpringbokPixleykaSeme PetrusvilleZFMgcawu ZFMcgawu

WesternCape(6DMs) CapeWinelandsCentralKaroo

CityofCapeTown

Eden

Overberg

34

35

Pro

vin

cial

se

lect

ed

Agr

ipar

k Si

tes

36

44 Districts (27 Priority DMs) and Proposed Agri-parks Sites

Proposed Agripark Site

36

Budget Allocation

• DRDLR committed R2b for 2015/16 financial year;

• This money is to be utilised in all 44 District Municipalities to support Agri Parks rollout;

• Budget commitments from other sector departments to be confirmed in the next 14 days (DAFF, COGTA, Provincial Agriculture, DTI, DST, DWA&S, Municipalities, Private Sector).

37

Indicative District Municipalities Budgets: R2b 1. PRODUCTION R20m

AVMP: Infrastructure budget Soil-rehab Enterprise (re-greening) Community capacity building RVCP: Infrastructure Enterprises Recap and Development

2. AGRI-PARK R25m

Value chain enterprises Infrastructure **An additional R 1 million for Technical support to the 27DMs if required.

Total – R 45 million

38

Planning Progress per Province……

41

Free State Province

42

43

Milestone Outputs ByWho Targetdates Progress Challenges XhariepDM(Springfontein)

MangaungMM(ThabaNchu)

ThaboMofutsanyaneDM(Tshiame)

FezileDabiDM(Parys)

LejweleputswaDM

Step1:SiteIdentificationandstateofreadiness SiteIdentified

· Provincial

Consultationscompleted

· District

consultationscompleted

· Signoffsbyrelevantdelegatedauthority

NB:ifsitediffersfromoriginalsiteidentifiedprocessofverificationwillbeconductedagainstoriginalvariablesusedforanalysis

HOD;DDGsDAFF;DRDLR;MMsandPSSCHeadNationalOperationsTaskTeam

31May2015 Almostallsitesareidentified.

Sign-offsbyrelevantauthorityoutstanding

ProvincialConsultationsCompletedDistrictConsultationsCompletedLetterandPowerofAttorneysignedandreceivedfromExecutiveMayor.SiteidentifiedinSpringfontein(KopanongLM)

ProvincialConsultationsCompletedDistrictConsultationsCompletedLetterandPowerofAttorneysenttoFDC.HoDofDARDtofinalise.SiteidentifiedinThabaNchu.

ProvincialConsultationsCompletedDistrictConsultationsCompletedLetterandPowerofAttorneysenttoFDC.HoDofDARDtofinalise.SiteidentifiedinTshiame(MalutiAPhofungLM)

ProvincialConsultationsCompletedSiteidentifiedinParys(NgwatheLM)

ProvincialConsultationsCompletedSiteundecidedbyProvince.(WesselsbronorVirginiaproposed)

Businessplancompleted

IfBusinessplaninplace:· Assesscurrentplans

orproposalsinlinewithcriteria(checkifallnecessaryprocesseshavebeencompletedincludingcompliancewithregulatoryframeworkegEIA;designs;cashflows;etc)/checklistwillbesent

· SendtoNational

Operationsteamforverification

· PresenttoNationalMulti-DisciplinaryTaskTeam;

· Approveor

recommendrealignmentoradditionalwork

HOD;DDGsDAFF;DRDLR;MMsandPSSCHead

7June2015 DraftBusinessPlansareavailable.Verificationtobedone.

DraftBusinessPlanisavailable.ImplementingAgentofDARDtoverifyandincludeallpre-constructionanalysisreportse.g.feasibility,IA.PresentedattheProvincialMulti-DisciplinaryTaskTeamMeeting.

DraftBusinessPlanisavailable.ImplementingAgentofDARDtoverifyandincludeallpre-constructionanalysisreportse.g.feasibility,IA..PresentedattheProvincialMulti-DisciplinaryTaskTeamMeeting.

DraftBusinessPlanisavailable.ImplementingAgentofDARDtoverifyandincludeallpre-constructionanalysisreportse.g.feasibility,IA..PresentedattheProvincialMulti-DisciplinaryTaskTeamMeeting.

DraftBusinessPlanisavailable.ImplementingAgentstilltobeappointedbyDRDLR,finalizingTORPresentedattheProvincialMulti-DisciplinaryTaskTeamMeeting.

DraftBusinessPlanisavailable.ImplementingAgentstilltobeappointedbyDRDLR,finalizingTORPresentedattheProvincialMulti-DisciplinaryTaskTeamMeeting.

Example of how the Agri-parks Model works Spatially in the Free State Province…..

47

Free State Province: Map showing Agri-hubs and FPSU

49

Fezile Dabi DM: Map shows Agri-hub and FPSUs

50

Lejweleputswa DM: Map showing the Agri-hub and FPSUs

51

Thaba Nchu Traditional Area: Map showing Agri-hub and FPSUs

52

Thabo Mofutsanyane DM: Map showing Agri-hubs and FPSUs

53

Xhariep DM: Map showing Agri-hubs and FPSUs

Free State Province: Large Stock Units

Xhariep Dm: Large Stock Units

Free State Province: Cultivated Ha

Xhariep DM: Cultivated Ha

INPUT PRODUCTION HARVEST TRANSPORT STORAGE PROCESSING RETAIL

Commodity Value Chains

59

Ostrich

Egg Hatchery

Growers

Slaughter

Processing

Meat Feathers

Skin

Tannery

Sheep

Wool

Shearing

Washing

Comb

Dye

Net Weave

Spin

Mutton

Slaughter

Skin

Tannery

Leather Products

Meat

Pigs

Slaughter

Meat

Commodity Value Chains

60

Fish

Breeding

Grower

Slaughter

Processing

Meat Cooking & Pickling

Process and Packaging

Vegetables

Community Gardens

Processing Packaging House

Storage

Wholesale/Retail Outlet

Beef

Slaughter

Skin

Tannery

Leather Products

Meat

Inputs Production Harvest Transport Storage Process Retail

Xhariep District Municipality (Springfontein) Mega Agri-park

Xhariep DM Mega Agri-park

Springfontein Mega Agri-park

North West Province 2014 2020

67

NEWLY RENOVATED SPRINGBOKPAN SILO

1 • HOSPITALS

2 • SCHOOLS

3

• CORRECTIONAL

SERVICES

4 •AGRIC COLLEGE

5 • WHOLESALE AND RETAIL

STAGE 1

PRODUCTION

STAGE 2

PROCESSING

STAGE 3

MARKET

1) Profile projects 2) Survey V/A Infrastructure 3) Zone / Map Proj / infrastructure 4) Data Collation 5) Analyze product volume /comm. 6) Cluster Projects/commodity 7) Synchronize Projects/production 8) Justify (Processing Facility) 9) (BUSINESS MODEL) (AV. PRODUCTION INPUTS)

Silo rehab Milling (starch and animal) Mechanizatio Warehouse Input warehouse Foodbank (BUSINESS MODEL) (AGRO-LOGISTICS)

1) Identify Gov. Led markets 2) Zone / Map Proj / infrastr. 3) Status - contract terms 4) Curr. Procurement system 5) Adherence – Pref. Proc

(DAFF FUNDING/PAYMENTS)

COM LAND

CROP

PROCESSING

FACILITY

PROJECTS O O O O O

O

PROJECTS O O O O O

O

SPRINGBOKPAN AGRIPARK MODEL

FINANCIAL IMPLICATIONS

• Public Sector Fund

READ R140m

DRDLR 45m

FEED R45m

• Private Sector Fund & Partnerships

69

Yr 1 (2015/16)

Description Required Budget

AGRIPARK 464 117 500,00R

FINANCIAL IMPLICATIONS

Project Implementation Plan – Ngaka Modiri Molema

District – Springbokpan on Grain Value Chain

Activity May June July August September Oct

1 2 3 4 1 2 3 4 1 2 3 4 5 1 2 3 4 1 2 3 4 1 2 3 4 5 1 2

Planning

Coordinates

Soil Analysis

Maps

Layout of designs

Springbokpan Agripark - Project Implementation Plan

April

70


District – Springbokpan on Grain Value Chain ….cont 71

Activity May June July August September Oct Nov Dec

1 2 3 4 1 2 3 4 1 2 3 4 5 1 2 3 4 1 2 3 4 1 2 3 4 5 1 2 1 2 3 1 2

Planting

1 Input supply

2 Chemical application

3 Lime Application

4 Disc

5 Rip

6 Seedbed

7 Plant and fertil ize

8 Spray

9 Harvest


April


District – Springbokpan on Grain Value Chain 72

Activity May June July August September Oct Nov Dec

1 2 3 4 1 2 3 4 1 2 3 4 5 1 2 3 4 1 2 3 4 1 2 3 4 5 1 2 1 2 3 1 2

Infrastructure and mechanization

Mechanization Warehouse

Inputs Warehouse

Foodbank

Irrigation systems

Steel works and fencing

Mooifontein (infrastructure repairs)

Mill ing Plant

Rehabilitation of Springbokpan Silos

Rehabilitation of Vryhof Silos

Rehabilitation of Kraaipan Silos

Wholesale Facility - grain products

Oil processing

Groundnut processing

Mechanization and equipment

On-site Office Park

Diesel depots and trucks

April


Progress to date and Next steps 1. Provincial consultations concluded except in 3 of the Western Cape Districts

2. Governance structures established

o Multi-disciplinary special task team, chaired by DG DRDLR and comprising DGs DAFF, DTI, DWA&S, DST, HOD of Provincial Agriculture and Municipal Managers and nominated DDGs

o Provincial Multi Disciplinary Special Task Team, chaired by the HOD Provincial Agriculture and comprising of DRDLR other relevant provincial departments and MMs. Supported by DDGs DAFF and DRDLR.

3. Operations management structures established at National and Province.

o District project teams to be established.

4. Current Activities

– Assessing state of readiness of each district – readiness assessment tool has been developed to guide the process – over past 2 weeks it has become evident that most DMs will requires support to develop Business Plans

– Only Chris Hani and Ngaka Modiri Molema DMs have business plans in place.

– Prototypical Agri-park design has been completed.

– Consultation with DMs and farmers to be held by end of June 2015

– Survey farms and finalise production plans (areas, inputs, mechanization) for current land that is under-utilized, mobilize stakeholders to fund infrastructure shortfalls.

– Start to discuss and develop an Agripark Site Master Plan per District Municipality and get sign-off from HOD Rural Development in the Provinces. i.e. identifying the FPSUs, the Agri-hub and Rural Urban Market Center for every District Municipality, draft plans available by mid-July 2015

– Determine and get sign-off on Agriparks governance structures at the level of FPSUs, Agri-hubs and Rural Urban Market Centers – end July 2015

– Infrastructure Assessment (on and off-farm), mobilise stakeholders to fund infrastructure shortfalls for FPSUs , Agri-hubs and Rural Urban Market Centers.

– Determine new build requirements (green-fields and brown-fields) for Farmer Production Support Units , Agri-hubs and Rural Urban Market Centers.

– Determine lifecycle cost of the Agri-park infrastructure (operations and maintenance)

– Identify AVMP; RVCP; Recap and all agriculture projects in the vicinity of the agri park; full costing to ensure that production cycle is met

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• Thank you

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progress report on agri-parks presentation to the joint portfolio

Documents