Date: 10/03/2004
Source: Ministry of Agriculture and Land Affairs
Title: T Didiza: Grain SA Congress
SPEECH BY THE MINISTER FOR AGRICULTURE AND LAND AFFAIRS, MS THOKO DIDIZA, AT THE GRAIN SA CONGRESS AT BOTHAVILLE, 10 March 2004
Programme director
Respected leadership of Grain SA and its esteemed members
Invited guests
Sector stakeholders
Members of the press.
It gives me a great pleasure, honour and indeed privilege to stand before you in my capacity as Agriculture and Land Affairs Minister on the eve of celebrating our first decade of democracy.
One of the greatest triumphs of the new South Africa is the collective acknowledgement by all of us, black and white, that South Africa belongs to us. But one of the clearer excitements about our transition in this fledgling democracy is the explicit commitment by organised agriculture to ensure that our entire nation is food secured. Above all, the country owes - to a large extent - its sustainable food security measures, among others, to none other than Grain SA itself.
Meneer die Voorsitter, baie dankie vir die geleentheid om by u kongres op te tree tydens die tien-jarige herdenking van Suid-Afrika se demokrasie.
Within these ten years of democracy, Government has implemented various policies and programmes in its drive to remedy the past ills.
Our guiding policy document is the "Strategic Plan for South African Agriculture". As part of the plan, we have embarked on an initiative to facilitate the development of plans for the different industries that reflect key pillars of the Sector Plan. These plans are meant to enhance equitable access and participation in the sector, to improve global competitiveness and profitability and to ensure sustainable management of resources.
The Strategic Plan for the Grain Industry, the development of which started in 2002, is in pole position. Building on the vision and mission of the Sector Plan this document provides an implementable set of long-term strategic initiatives at all levels of the value chain to bring about a united and prosperous grain industry. These strategic initiatives will be implemented through a partnership and I want to emphasise the word partnership between government and private sector from a market-orientated perspective.
This plan encompasses all stakeholders in the grain industry: from many producers of the major grain crops up to the processors of a wide range of end products and consumer as well as government, input suppliers, insurers, financiers, silo owners, grain traders, bakers and research organisations. There is a shared commitment to improve dialogue and to ensure greater collaboration in working towards establishing trustworthy and long standing relationships and partnerships between all stakeholders and to ensure that we move forward together in implementing the strategic tasks that have been jointly agreed upon.
The grain industry is one of the largest industries in South African agriculture and also a very strategic one. It is therefore fitting that it is the second industry with which we, as a Department, commenced collaboration to develop a strategic plan in terms of our Sector Plan commitment to a partnership for unity and prosperity. We have taking a commodity approach towards implementing the Sector Plan and other industries that have also progressed well with strategic plans are cotton, wine and livestock.
The Grain Strategy has some very interesting things to say about your industry. Your industry produces between 25 and 33% of the total gross value of agricultural production. The gross value of grain production was usually around R12 billion, but in the 2001/2002 season this skyrocketed to R22 billion as a result of higher prices, among other factors. Although the crop will not be as large this season and the prices are lower, the grain industry still remains a major player in the agricultural arena.
I am informed that Grain South Africa represents a total of 17 000 grain producers, of whom 11 000 are from disadvantaged communities. These farmers represent roughly 90% of all grains produced in South Africa. Other major role players include the silo industry, milling industry, baking industry and the animal feed industry, all of whom have undergone a number of changes following the deregulation of the industry.
I think you would recall that while there is a commitment and broad agreement to addressing the issue of food security in the region, the precise means to do so have yet not been fully agreed upon and the matter should be fully investigated sooner. While at the regional and continental levels we have agreed to the creation of a food reserve system, highlighted again last week at the FAO conference in Johannesburg, it should be well understood that the particular concerns and the most appropriate solutions at a domestic level are not the same for all countries in the region. What we are striving for is that a regional solution should form a coordinated and symbiotic system, taking into account the needs of all its members.
The supply and availability of food continues this year to be a concern for some Southern African Development Community (SADC) countries. However, while South Africa has a large food insecure population that places a responsibility on government and civil society, we do not have an overall shortage of grains, even with the reduced crop forecast this year. Another aspect of the food security challenge that is not always understood is the negative impact of food aid on South African commercial sales of grain in those markets. This element will have to be taken into account in considering a regional food security system.
In this respect and in accordance with the World Food Summit commitment to address hunger, SADC has agreed to investigate the establishment of a regional food security facility. The nature, viability and feasibility of such a facility is now being investigated by the World Bank and will be debated in detail once its report to SADC has been concluded. The keeping of limited strategic stocks might be one element of such a facility in the region. Other possible options should be investigated and these must be considered together in reaching a workable solution.
Broadening participation in the grain industry is one of the key objectives of the Grain Strategy. This strategy should not be just about empowering black farmers. It should take place at all levels throughout the whole value chain. It is also important that this strategic focus aligns with the government's BEE strategy and the Department's Agri BEE strategy, which we will soon publish for public comment.
I take this opportunity to appreciate that there is a number of other initiatives developed in the spirit of partnerships and mentoring of farmers. Some of these by GrainSA, have been launched to assist black grain farmers across the country. These initiatives involve provision of farmer training programmes, supplying and inputs, financing sharing experience and machinery. All initiatives, albeit undertaken independently, are running concurrently. Frustration among some black farmers over poor access to finance, poor services and support mechanisms in general, is a cause for concern. However, we are confident that the grain strategy will provide guidance, impetus and synergy for resolving some of these pertinent challenges.
The implementation of the Strategy will result in number of actions such as support by Government for the formation of study groups to develop emerging farmers and assistance to the costs of mentorship by commercial farming members.
Government is also revitalising the LRAD programme by ensuring that funds are available to assist land purchases by aspirant farmers.
To further facilitate these farmers' entrance into the sector, Government will consider a programme of support for on-farm infrastructure on newly established and targeted black-owned farms. In the context of grain farming the most important aspects would include fencing, renovation of farm buildings and in some cases irrigation infrastructure. These are elements that Government is considering in terms of the design of the Comprehensive Agricultural Support Programme.
In an endeavour to improve market access of black farmers the stakeholders in the grain industry Government is also relying on its partners, including GrainSA to commit themselves to expand existing training programmes to improve production skills and knowledge.
Silo owners (and buyers of grain) should in turn accept their responsibility to ensure credible, transparent and non-discriminatory practices in grading, handling, storage and pricing in accordance with the existing code of ethics adopted by all grain silo owners. A comprehensive system of market information, tailor-made for the needs and circumstances of black farmers, will be introduced in a collaborative effort between Government and a number of partners. Although SAGIS provides a very good service, the information should be interpreted and disseminated to all farmers. We should know what the information needs for disadvantaged communities are and ensure that information is disseminated in a form they need.
The quality of key information, such as crop estimates, should be further improved. Government has accepted its major role in this respect and has already invested in a new system and funding to improve crop estimates. I would appeal to GrainSA members to participate in greater numbers in the crop estimate programme as you will surely agree that the role that uncertainty plays in propagating huge short term fluctuations in the price of grains is certainly not in the interest of farmers who need to plan their activities over a longer period. Substantial expansion by more farmers in the crop estimate panel would improve the quality and reliability of the crop estimate. As you will agree, without a reliable crop estimate the market will be at the mercy of the pronouncements of those who have a vested, ulterior interest.
The long term survival and financial viability of the grain industry depends on its ability to expand market opportunities in the local grain market for both current farmers and new entrants into the industry. Surplus grain production locally and internationally has a negative impact on the profitability and sustainability of grain industries worldwide. Expanding the market for grain milling products in SADC will be one avenue of increasing the market. In addition, alternative uses for oilseeds and maize such as bio diesel and bio-ethanol might provide other important opportunities to expand the domestic market for grains.
Government also acknowledges the critical importance of infrastructure, and specifically rail and harbour infrastructure, to the international trading position of the grain industry. To this effect the Department of Agriculture and the grain industry will continue to engage with Spoornet on its ability to serve the grain industry. I believe the intended recapitalisation of Transnet and Spoornet has already provided some indication of Government's commitment to this challenge. The Department is working with other Government bodies to ensure that the restructuring and upgrading of transport and logistics infrastructure takes into account the needs of the agriculture sector.
The long-term global competitiveness of South African grain industry depends on its ability to learn and innovative faster than its competitors. This requires a well-designed, well-financed and well-executed programme of research and technology development.
The critical role of grain crops in both commercial and food security considerations justifies a strong investment by government in research.
These are just some of the ideas contained within the Grain Industry Strategy. What now is needed is for the Strategy to be implemented and this is where I must again emphasise the partnership between the industry and the Department. You must now come together to take decisions on the allocation of responsibilities.
I understand that some of the issues are already being implemented. Government has an interest in ensuring that the grain industry remains competitive and viable in ensuring sustainable food supply. Jointly we must work together to find mutually benefiting solutions that address diverse needs of South Africans. I wish you well in your deliberations.
Thank you.
Issued by: Ministry of Agriculture and Land Affairs
10 March 2004
Source: Department of Agriculture (http://www.nda.agric.za)
Source: Ministry of Agriculture and Land Affairs
Title: T Didiza: Grain SA Congress
SPEECH BY THE MINISTER FOR AGRICULTURE AND LAND AFFAIRS, MS THOKO DIDIZA, AT THE GRAIN SA CONGRESS AT BOTHAVILLE, 10 March 2004
Programme director
Respected leadership of Grain SA and its esteemed members
Invited guests
Sector stakeholders
Members of the press.
It gives me a great pleasure, honour and indeed privilege to stand before you in my capacity as Agriculture and Land Affairs Minister on the eve of celebrating our first decade of democracy.
One of the greatest triumphs of the new South Africa is the collective acknowledgement by all of us, black and white, that South Africa belongs to us. But one of the clearer excitements about our transition in this fledgling democracy is the explicit commitment by organised agriculture to ensure that our entire nation is food secured. Above all, the country owes - to a large extent - its sustainable food security measures, among others, to none other than Grain SA itself.
Meneer die Voorsitter, baie dankie vir die geleentheid om by u kongres op te tree tydens die tien-jarige herdenking van Suid-Afrika se demokrasie.
Within these ten years of democracy, Government has implemented various policies and programmes in its drive to remedy the past ills.
Our guiding policy document is the "Strategic Plan for South African Agriculture". As part of the plan, we have embarked on an initiative to facilitate the development of plans for the different industries that reflect key pillars of the Sector Plan. These plans are meant to enhance equitable access and participation in the sector, to improve global competitiveness and profitability and to ensure sustainable management of resources.
The Strategic Plan for the Grain Industry, the development of which started in 2002, is in pole position. Building on the vision and mission of the Sector Plan this document provides an implementable set of long-term strategic initiatives at all levels of the value chain to bring about a united and prosperous grain industry. These strategic initiatives will be implemented through a partnership and I want to emphasise the word partnership between government and private sector from a market-orientated perspective.
This plan encompasses all stakeholders in the grain industry: from many producers of the major grain crops up to the processors of a wide range of end products and consumer as well as government, input suppliers, insurers, financiers, silo owners, grain traders, bakers and research organisations. There is a shared commitment to improve dialogue and to ensure greater collaboration in working towards establishing trustworthy and long standing relationships and partnerships between all stakeholders and to ensure that we move forward together in implementing the strategic tasks that have been jointly agreed upon.
The grain industry is one of the largest industries in South African agriculture and also a very strategic one. It is therefore fitting that it is the second industry with which we, as a Department, commenced collaboration to develop a strategic plan in terms of our Sector Plan commitment to a partnership for unity and prosperity. We have taking a commodity approach towards implementing the Sector Plan and other industries that have also progressed well with strategic plans are cotton, wine and livestock.
The Grain Strategy has some very interesting things to say about your industry. Your industry produces between 25 and 33% of the total gross value of agricultural production. The gross value of grain production was usually around R12 billion, but in the 2001/2002 season this skyrocketed to R22 billion as a result of higher prices, among other factors. Although the crop will not be as large this season and the prices are lower, the grain industry still remains a major player in the agricultural arena.
I am informed that Grain South Africa represents a total of 17 000 grain producers, of whom 11 000 are from disadvantaged communities. These farmers represent roughly 90% of all grains produced in South Africa. Other major role players include the silo industry, milling industry, baking industry and the animal feed industry, all of whom have undergone a number of changes following the deregulation of the industry.
I think you would recall that while there is a commitment and broad agreement to addressing the issue of food security in the region, the precise means to do so have yet not been fully agreed upon and the matter should be fully investigated sooner. While at the regional and continental levels we have agreed to the creation of a food reserve system, highlighted again last week at the FAO conference in Johannesburg, it should be well understood that the particular concerns and the most appropriate solutions at a domestic level are not the same for all countries in the region. What we are striving for is that a regional solution should form a coordinated and symbiotic system, taking into account the needs of all its members.
The supply and availability of food continues this year to be a concern for some Southern African Development Community (SADC) countries. However, while South Africa has a large food insecure population that places a responsibility on government and civil society, we do not have an overall shortage of grains, even with the reduced crop forecast this year. Another aspect of the food security challenge that is not always understood is the negative impact of food aid on South African commercial sales of grain in those markets. This element will have to be taken into account in considering a regional food security system.
In this respect and in accordance with the World Food Summit commitment to address hunger, SADC has agreed to investigate the establishment of a regional food security facility. The nature, viability and feasibility of such a facility is now being investigated by the World Bank and will be debated in detail once its report to SADC has been concluded. The keeping of limited strategic stocks might be one element of such a facility in the region. Other possible options should be investigated and these must be considered together in reaching a workable solution.
Broadening participation in the grain industry is one of the key objectives of the Grain Strategy. This strategy should not be just about empowering black farmers. It should take place at all levels throughout the whole value chain. It is also important that this strategic focus aligns with the government's BEE strategy and the Department's Agri BEE strategy, which we will soon publish for public comment.
I take this opportunity to appreciate that there is a number of other initiatives developed in the spirit of partnerships and mentoring of farmers. Some of these by GrainSA, have been launched to assist black grain farmers across the country. These initiatives involve provision of farmer training programmes, supplying and inputs, financing sharing experience and machinery. All initiatives, albeit undertaken independently, are running concurrently. Frustration among some black farmers over poor access to finance, poor services and support mechanisms in general, is a cause for concern. However, we are confident that the grain strategy will provide guidance, impetus and synergy for resolving some of these pertinent challenges.
The implementation of the Strategy will result in number of actions such as support by Government for the formation of study groups to develop emerging farmers and assistance to the costs of mentorship by commercial farming members.
Government is also revitalising the LRAD programme by ensuring that funds are available to assist land purchases by aspirant farmers.
To further facilitate these farmers' entrance into the sector, Government will consider a programme of support for on-farm infrastructure on newly established and targeted black-owned farms. In the context of grain farming the most important aspects would include fencing, renovation of farm buildings and in some cases irrigation infrastructure. These are elements that Government is considering in terms of the design of the Comprehensive Agricultural Support Programme.
In an endeavour to improve market access of black farmers the stakeholders in the grain industry Government is also relying on its partners, including GrainSA to commit themselves to expand existing training programmes to improve production skills and knowledge.
Silo owners (and buyers of grain) should in turn accept their responsibility to ensure credible, transparent and non-discriminatory practices in grading, handling, storage and pricing in accordance with the existing code of ethics adopted by all grain silo owners. A comprehensive system of market information, tailor-made for the needs and circumstances of black farmers, will be introduced in a collaborative effort between Government and a number of partners. Although SAGIS provides a very good service, the information should be interpreted and disseminated to all farmers. We should know what the information needs for disadvantaged communities are and ensure that information is disseminated in a form they need.
The quality of key information, such as crop estimates, should be further improved. Government has accepted its major role in this respect and has already invested in a new system and funding to improve crop estimates. I would appeal to GrainSA members to participate in greater numbers in the crop estimate programme as you will surely agree that the role that uncertainty plays in propagating huge short term fluctuations in the price of grains is certainly not in the interest of farmers who need to plan their activities over a longer period. Substantial expansion by more farmers in the crop estimate panel would improve the quality and reliability of the crop estimate. As you will agree, without a reliable crop estimate the market will be at the mercy of the pronouncements of those who have a vested, ulterior interest.
The long term survival and financial viability of the grain industry depends on its ability to expand market opportunities in the local grain market for both current farmers and new entrants into the industry. Surplus grain production locally and internationally has a negative impact on the profitability and sustainability of grain industries worldwide. Expanding the market for grain milling products in SADC will be one avenue of increasing the market. In addition, alternative uses for oilseeds and maize such as bio diesel and bio-ethanol might provide other important opportunities to expand the domestic market for grains.
Government also acknowledges the critical importance of infrastructure, and specifically rail and harbour infrastructure, to the international trading position of the grain industry. To this effect the Department of Agriculture and the grain industry will continue to engage with Spoornet on its ability to serve the grain industry. I believe the intended recapitalisation of Transnet and Spoornet has already provided some indication of Government's commitment to this challenge. The Department is working with other Government bodies to ensure that the restructuring and upgrading of transport and logistics infrastructure takes into account the needs of the agriculture sector.
The long-term global competitiveness of South African grain industry depends on its ability to learn and innovative faster than its competitors. This requires a well-designed, well-financed and well-executed programme of research and technology development.
The critical role of grain crops in both commercial and food security considerations justifies a strong investment by government in research.
These are just some of the ideas contained within the Grain Industry Strategy. What now is needed is for the Strategy to be implemented and this is where I must again emphasise the partnership between the industry and the Department. You must now come together to take decisions on the allocation of responsibilities.
I understand that some of the issues are already being implemented. Government has an interest in ensuring that the grain industry remains competitive and viable in ensuring sustainable food supply. Jointly we must work together to find mutually benefiting solutions that address diverse needs of South Africans. I wish you well in your deliberations.
Thank you.
Issued by: Ministry of Agriculture and Land Affairs
10 March 2004
Source: Department of Agriculture (http://www.nda.agric.za)
Advertisement
EMAIL THIS ARTICLE SAVE THIS ARTICLE FEEDBACK
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
