BRIEFING NOTE TO THE PORTFOLIO COMMITTEE ON NCERA FARMS

DDG:PRM

BACKGROUND

State purchased the farms in 1983 /84 in order to implement the Ciskei

Independence agreement 1991 former Department of Development Aid through its Development Agent South African

Development Trust Corporation (SADT / STK) undertook a planning investigation of Whittlesea Farms better known as Released Area 60 (RA 60) with 14 153.0952ha SADT land.

Area Breakdown: 9599.2709ha transferred to Imidushane Tribe under Chief Jongilanga. 1707.0811ha utilised by the Needs Camp Community no longer suitable for agricultural purposes; 136.4545ha settling Lillyvale farm dwellers; 856.9142ha additional for Imidushane Tribe 1844.9663ha making portions from Silverdale, Springvale, Wellcome Home, Flintham, hilltop and

Liilyvale as well as the farms Rocklands and Yellowoods were de-proclaimed as SADT land and were transferred to DPW

State purchased the farms in 1983 /84 in order to implement the Ciskei Independence agreement

BACKGROUND

Department of Development Aid and SADTC were disbanded during 1992

SADTC/STK phased out during 1994 through proclamation 111,1994

Area suitable for farmer settlement was 2214.2805ha The then National Department of Agriculture took over the

Shareholding of Whittlesea Farms (PTY) LTD The National Department of Agriculture appointed an

implementation agent ( Agreement signed in1997) State owned farms are: Rocklands, Silverdale, Springvale, Hilltop,

Flintham, Welcome Home , Lillyvale and Yellowwood known as Ncera Farms

DAFF is the sole shareholder in Ncera Farms (PTY) LTD 3

Background Public entity established in 1990’s SADT (South African Development Trust Corporation managed Ncera from 1984 until

1993 Classified as Schedule B in PFMA (Act of 1999) Managed by Ncera Development Corporation (NADC) until March 2008 on consultation

basis Setup to manage land purchased by government from commercial farmers Total area 14000 ha Appointment of Board of Directors for Ncera Farms in 1996 Staff of NADC absorbed by Ncera on April 2008 Board consisted of 5 representative plus farmer representative (6)

(3) National,(1) Provincial (1) local and (1) farmers All government representatives resigned in January 2009

In 2009 Mr. Andile Hawes and Mr. Moshe Swart appointed as caretakers

4

5

ACTIVITIES AT NCERA

NCERA CENTRE: Used as a service centre The following services are offered to the farmers who have been settled on Ncera land

as well as to the neighbouring communities:Agricultural extension services

• Land preparation, layout and contract ploughing

• Training and advice on fresh produce production and marketing

• Preparation of business plans and financial record keeping

• Cost effective repairs to and maintenance of agricultural machinery and equipment

• Postal services and administrative advice

• Animal husbandry and animal improvement schemes

• The centre also sells fresh milk to the local communities at a minimum price of R3.50 per litre.

• The workshop also provides a repair and maintenance service to the community tractors and tractors that belong to the centre.

6

ACTIVITIES AT NCERA

DAIRY

At the end of March 2010: 225 dairy animals. (See page 11 paragraph 2)

milk production for the year was 215 726 liters: 161 840 Liters were sold and 53 886 liters was fed to calfs. Three bull calves and thirteen cows re sold. The total income for the dairy was R 806 716 (ref. page 26)

At present the heard consist of 207 animals of which 167 are females and 40 males at various ages. Thirty-two males and eight old cows were sold during the

Last six month. An average of 49 cows was in milk over the past six months producing 77152 liters. Selling price of milk was 1 to 99 liters – R6.00

and 100 liters and more R 3.50 per later. BEEF

At the end of March 2010: 110 head of cattle. (ref.page 11 paragraph 1) nothing was sold during the year (ref.page 25)

During the past 6 month 5 old cows and 4 tollies were sold at an auction yielding an Income of R22 690. The heard at present consist 99 animals, 74 female

7

ACTIVITIES AT NCERA

Contract services Mechanization was done at rates acceptable by the local

Department

of Agriculture and are as follows:• Plough - R610 per ha• Disc - R400 per ha• Plant - R420 per ha• Spray - R300 per ha

The total income for the year was R30 545. (See page 24)

8

ACTIVITIES AT NCERA

In 2005 Ncera farms were disposed of to land reform beneficiaries.

Thirteen (13) properties with 2214.2205ha were disposed of for the settlement of farmers

One property known as Rocklands with 611.9192ha was reserved to be allocated to farm dwellers.

The farms are allocated to 10 beneficiaries, 3 females and 7 males.

The allocation is in the form of a permission to occupy the properties.

A submission has been made to the Department of Public Works for approval to lease these properties.

9

DISPOSAL PROCESS FOLLOWED

The Ncera farms are administered by the Directorate: Land Settlement,

Department of Agriculture, Forestry and Fisheries, Pretoria, in terms of the State Land

Disposal Act, Act 48 of 1961. This act makes provision for the disposal of certain State

Land and for matters incidental thereto, and to prohibit the acquisition of State Land by

prescription.

A total of thirteen (13) properties, consisting of nine (9) economic units were advertised on the Daily Dispatch and the Eastern Province Herald on the 4th and 11th of March 2005 respectively.

A total of thirteen (13) properties, consisting of nine (9) economic units were advertised on the Daily Dispatch and the Eastern Province Herald on the 4th and 11th of March 2005 respectively. The interview panel consisted of officials from the Department of Agriculture Forestry and Fisheries (DAFF), Eastern Cape Provincial Department of Agriculture, Eastern Cape Provincial Land Reform Office, National Department of Public Works and Food Allied Workers Union (FAWU).

10

Farm sizes & farmers

11

Name Property description Extent

1.Silverdale farming Co-operation

Portion 2 Farm 865, Silverdale & Portion 12 Farm 1025 Silverdale

88,6364

2.Ms M A De Bees Portion 2 Farm 1045 Silverdale

219,1094

3.Mr N Maqokolo Portion 1Farm 1297 Hilltop

332,6848

4.Mr Jongile Mlota Portion 1 Farm 1021 Rocklands Cash Store

0,5968

5.Mr Z Lucas Matinise Portion 1 Farm 866 Silverdale

379,4980

6.Miss P N Zungula Portion 7 Farm 1025 Silverdale

51,3767

Farm sizes & farmers

12

Name Property description Extent

7.Mr L.V Ntikinca Portion 2 Farm 1023 Springvale

172,0399

8.Mr M E Qwabe Portion 3 Farm 1036 Flintham & Portion 8 & 9 Farm 1037 Flintham

171,3107

9. Mr E Makisi Portion R 867 642,8340

10. Mrs Tsweli Portion 1 Farm 1240 156,1938

JOBS CREATED

Employment The Company employed 35 people in the following positions CEO(Passed on - September 2010 and buried on 28th September 2010) CFO; Accounting officer; Farm Manager; Trainer; Agric. Trainer; Technical

Trainer; Supervisor;

• Milkers - 4• Herdsman - 3• Labours - 11 • Workshop ass.- 2 , Clerks - 2 Watchmen - 5

  At present the total employees are a complement of 30.• Three laborers retired and one passed away

Grant 2,800,000 (current), 2,550,000 (09/10) 2,395,000 (08/09) % increase 6.47%

6.47

  13

1414

agriculture:

DEPARTMENT: AGRICULTUREREPUBLIC OF SOUTH AFRICA

14

Financials

Budget 2010/11

2009/10

R

2008/09

R

%

Change

Own Revenue

1 338,000 914,000 1,174,000 (22.14)

Grant 2,800,000 2,550,000 2,395,000 6.47

Total Income

4,138,000 3,464,000 3,569,000 (2.94)

Actual Expenditure

4,138,000 3,673,000 3,430,000 7.08

Net profit - 209,000 139,000

CONCLUSSION

Land capability report will assist the process going forward DAFF is in discussion with DRDLR for possible additional land to ensure that

farms becomes profitable The economic viability of the farm already within DAFF will be done The farmers currently occupying land have permission to occupy the land

however engagements with Public works are currently undergoing. Future :

Recommend the Minister to appoint board members by end of November Future is to consider permanently transferring the farms to lessee. Look into the future role of the centre in terms of its impact to the community

and the surrounding farmers

15