COMMERCIAL AGRICULTURAL YOUTH CHAMBERCOMMERCIAL AGRICULTURAL YOUTH CHAMBER

CREATING A BUSINESS PLATFORM FOR YOUNG CREATING A BUSINESS PLATFORM FOR YOUNG ENTREPRENEURS IN THE AGRCULTURAL SECTORENTREPRENEURS IN THE AGRCULTURAL SECTOR

2121 September 2011, Manzini (Mpumalanga) September 2011, Manzini (Mpumalanga)

“Inculcating an Entrepreneurial Life, Reaping the Fruits of “Inculcating an Entrepreneurial Life, Reaping the Fruits of Innovation”Innovation”

By: Obert Mathivha

CAYC MD

PRESENTATION OUTLINEPRESENTATION OUTLINE

1.1. About CAYC – Who are we & Why do we exist?About CAYC – Who are we & Why do we exist?

2.2. Context - Legal Framework - no haphazard operation Context - Legal Framework - no haphazard operation

3.3. Overview of SA Agricultural LandscapeOverview of SA Agricultural Landscape

4.4. Challenges Facing young peopleChallenges Facing young people

5.5. Opportunities available for youthOpportunities available for youth

6.6. CAYC Programmes addressing Challenges & Exploiting CAYC Programmes addressing Challenges & Exploiting Opportunities Opportunities

7.7. CAYC Footprint on designing & Implementing Interventions CAYC Footprint on designing & Implementing Interventions Methods/ProgrammesMethods/Programmes

8.8. Our PartnersOur Partners

9.9. Success Factors emerging from our Programmes Implementation Success Factors emerging from our Programmes Implementation

10.10. Opportunities for Interested Parties Present hereOpportunities for Interested Parties Present here

1. Who are we & Why do we exist?1. Who are we & Why do we exist?

WHY DO WE EXIST?WHY DO WE EXIST?

Our Understanding that Agr is Our Understanding that Agr is Everything i.e. food, clothes, etc.Everything i.e. food, clothes, etc.

““To create enabling environment To create enabling environment wherein passionate youth are wherein passionate youth are encouraged to start & sustain encouraged to start & sustain viable farming & related Ventures viable farming & related Ventures through supplying the best BD through supplying the best BD Tools to grab ENTREPRENEURIAL Tools to grab ENTREPRENEURIAL opportunities across the value opportunities across the value chain e.g. chain e.g. refer to Servicesrefer to Services

In order to alleviate poverty and In order to alleviate poverty and

Promote Promote Sustainable economic development Sustainable economic development

throughthrough Acceptable Exploitation of our Acceptable Exploitation of our

Natural Resources”Natural Resources”

WHO ARE WE?

S21 Agricultural Company (NGO) created for Public Good by Group of Youth Activists @ UP in 2005

1.Officials & Member database -10 Staff Officials-20 Independent Consultans- approximately 1200 Cooperatives with dominant youth participation, 294 from Gauteng Province, -About 1900 aspirant Farmers/Enterpreneurs most of whom are studying towards tertiary agricultural qualifications while some are unemployed graduates and matriculants

2. LEGAL FRAMEWORK2. LEGAL FRAMEWORK

ALIGNMENT WITH SECTORAL INTERNATIONAL, REGIONAL & NATIONAL DEVELOPMENT ALIGNMENT WITH SECTORAL INTERNATIONAL, REGIONAL & NATIONAL DEVELOPMENT POLICIES & STRATEGIESPOLICIES & STRATEGIES

Our Programmes are deliberately developed to impact positively onto:Our Programmes are deliberately developed to impact positively onto:

International Legal FrameworkInternational Legal Framework

UNNEPAD – Africa Agricultural Development Programme (AADP)UNNEPAD – Africa Agricultural Development Programme (AADP)

FAO agricultural development programmes - FAO agricultural development programmes - UN Special Rapporteur Olivier De Schutter - UN UN Special Rapporteur Olivier De Schutter - UN

independent expert independent expert

National Legal FrameworkNational Legal Framework

Youth Empowerment Strategy of DOL 2007Youth Empowerment Strategy of DOL 2007

IYDS 2011IYDS 2011

Land Restitution and Agricultural Development (LRAD)Land Restitution and Agricultural Development (LRAD)

Comprehensive Agricultural Support Programme (CASP)Comprehensive Agricultural Support Programme (CASP)

Proactive Land Acquisition Strategy (PLAS),Proactive Land Acquisition Strategy (PLAS),

Broad Based Black Economic Empowerment (AGRIBEE)Broad Based Black Economic Empowerment (AGRIBEE)

The Strategic Plan for South African AgricultureThe Strategic Plan for South African Agriculture

Agricultural Education and Training Strategy (AET)Agricultural Education and Training Strategy (AET)

National Skills Development StrategyNational Skills Development Strategy

3. Overview of SA Agricultural 3. Overview of SA Agricultural SectorSector

Knowledge base EconomyKnowledge base Economy resource centred part of the economy - resource centred part of the economy -

primary resourcesprimary resources direct correlation between the growth of direct correlation between the growth of

agricultural sector & Economy - Contributing agricultural sector & Economy - Contributing 4.9% for 2006/2007 to GDP4.9% for 2006/2007 to GDP

Apartheid Legacy of dualism – skewed Apartheid Legacy of dualism – skewed economic growtheconomic growth

Subsistence vs. Commercial farmingSubsistence vs. Commercial farming Survivalist vs. Competitiveness Survivalist vs. Competitiveness Significant changes since 1994 - Significant changes since 1994 - policy and policy and

regulatory changes, participation in the regulatory changes, participation in the internal marketinternal market etc. etc.

4. Challenges Facing Youth4. Challenges Facing Youth

Agree with a number of Identified Challenges in this ConferenceAgree with a number of Identified Challenges in this Conference Limited Access to information, opportunity Limited Access to information, opportunity

identificationidentification Limited information on Funding and Procurement Limited information on Funding and Procurement Limited Access to Start-Up SupportLimited Access to Start-Up Support Limited Access to Business Dev Services Limited Access to Business Dev Services Lack of Financial HistoryLack of Financial History Limited Access to TechnologyLimited Access to Technology Limited Access to MarketsLimited Access to Markets Limited Access to LandLimited Access to Land Limited Access to technical Skills, experience & Limited Access to technical Skills, experience &

Capacity BuildingCapacity Building Lack of proper infrastructuresLack of proper infrastructures

5. OPPORTUNITIES5. OPPORTUNITIES

Legal FrameworkLegal Framework- NYDA Act 2008, Land Affairs YD Strategy 2007, IYDS 2011, NGP 2010 - NYDA Act 2008, Land Affairs YD Strategy 2007, IYDS 2011, NGP 2010 etc.etc.

Along the value chainAlong the value chain Career Dev – scarce critical skills in Agrc Science & Engeneering Career Dev – scarce critical skills in Agrc Science & Engeneering Entrepreneurship – BDS Providers i.e. T&D, input suppliersEntrepreneurship – BDS Providers i.e. T&D, input suppliers As farmersAs farmers Logistic or transport serviceLogistic or transport service Food processing e.g. agric scientists, Food processing e.g. agric scientists, engineersengineers – 4more see our – 4more see our

Gauteng Agro-P Strategy – 11 downstream agropro sub-sectorsGauteng Agro-P Strategy – 11 downstream agropro sub-sectors Food storageFood storage Food distribution / retailing – this is also part of Value ChainFood distribution / retailing – this is also part of Value Chain

AgriBEE provides for various possibilitiesAgriBEE provides for various possibilities Targeted Public FundingTargeted Public Funding Land ownershipLand ownership Equity ownershipEquity ownership Targeted ProcurementTargeted Procurement Training & DevTraining & Dev Investor FriendlyInvestor Friendly

6. CAYC Programmes addressing Challenges & 6. CAYC Programmes addressing Challenges & Exploiting Opportunities Exploiting Opportunities

Programmes each linked 2 our objectives Programmes each linked 2 our objectives

1.1. Research and Research and DevelopmentDevelopment

2.2. Entrepreneurship Entrepreneurship AwarenessAwareness

3.3. Youth Agricultural Youth Agricultural CooperativesCooperatives

4. Youth Leadership in Agriculture4. Youth Leadership in Agriculture

5. Agro-processing and Skills 5. Agro-processing and Skills TransferTransfer

6. Youth Economic Literacy 6. Youth Economic Literacy

7. CAYC Footprint on designing & Implementing 7. CAYC Footprint on designing & Implementing Interventions Methods/ProgrammesInterventions Methods/Programmes

1.1. GEM Research 2004, then CAYC as a division in SAYCC – Eye Opener – GEM Research 2004, then CAYC as a division in SAYCC – Eye Opener – R1,5MR1,5M2.2. Creation of a Database of Youth beneficiaries from LRAD (Creation of a Database of Youth beneficiaries from LRAD (Land Redistribution of Agricultural Land Redistribution of Agricultural

Development) Development) and CASP programme since inception 2006 and CASP programme since inception 2006

3.3. Proposed & got Contracted to Implement aligned GP Agricul Cooperate Support Program, Proposed & got Contracted to Implement aligned GP Agricul Cooperate Support Program, Cooperative Database and its related Viable Commodity Association BD Model for EACH of 40 Cooperative Database and its related Viable Commodity Association BD Model for EACH of 40 cooperatives selected in May 2010. – cooperatives selected in May 2010. – R340.000R340.000

4.4. GDACE Agro-Processing Strategy in 2007 (Contracted Work) – GDACE Agro-Processing Strategy in 2007 (Contracted Work) – R700.000R700.000

5.5. Gauteng Agro-Processing Strategy 3 Year Implementation Plan 2008 – Gauteng Agro-Processing Strategy 3 Year Implementation Plan 2008 – R200.000R200.000

6.6. Agro-Processing Facilities Design & Bill of Quantities Agro-Processing Facilities Design & Bill of Quantities – R400.000– R400.000

7.7. Land Affairs Youth Empowerment Strategy 2007 (Contracted Work) – Land Affairs Youth Empowerment Strategy 2007 (Contracted Work) – R500.000R500.0008.8. National Youth Enterprise Strategy (YES) of 2006 (Quality Assurance) National Youth Enterprise Strategy (YES) of 2006 (Quality Assurance)

9.9. Through our Lobby & Advocacy, proposed Youth in Agriculture and Rural Development Through our Lobby & Advocacy, proposed Youth in Agriculture and Rural Development (YARD) – which was Launched by the then Minister in August 2007(YARD) – which was Launched by the then Minister in August 2007

IYDS 2011 – flagship programmes on agro-processing IYDS 2011 – flagship programmes on agro-processing Customized Camps, Workshops, Seminars in all aspects of agriculture and Enter Dev Customized Camps, Workshops, Seminars in all aspects of agriculture and Enter Dev

8. Our Partners8. Our PartnersOur large network Our large network of entrepreneurship development professionals has established a proud tradition, built on of entrepreneurship development professionals has established a proud tradition, built on

scientific excellence, integrity and a passion for youth and women empowerment and development. By scientific excellence, integrity and a passion for youth and women empowerment and development. By living these qualities, we have been able to develop healthy, robust relationships with our stakeholders living these qualities, we have been able to develop healthy, robust relationships with our stakeholders based on bedrock of mutual respect, trust and appreciation for grounded theory proven practice and based on bedrock of mutual respect, trust and appreciation for grounded theory proven practice and continuous innovation.continuous innovation.

Among Others, Among Others,

DoA DoA

DLADLA

ARC, ARC,

LeadAfrika - a multi-university initiative (internal)LeadAfrika - a multi-university initiative (internal)

CSIR Biosciences, CSIR Biosciences,

DTIDTI

Buhle Farmers Academy, (internal)Buhle Farmers Academy, (internal)

University of Pretoria, TUT University of Pretoria, TUT

NYDA, NYDA,

SAYCC (Unitary Structure of which I’m the CEO)SAYCC (Unitary Structure of which I’m the CEO)

9. WHAT IS THE MOST CRITICAL SUCCESS FACTOR FOR NEW COMMERCIAL FARMERS?

Land Credit Market access Water supply Technical expertise Government policy Equipment Producer price intervention Government grants & subsidies Export opportunities Infrastructure & transport Institutional development Technical support

ALL ELEMENTS ARE NECESSARY TO SUCCEED

Every critical element must be in place

“It does not matter which element is missing … the end result will be the same…”

Complex milieu of needs - Different elements will have different priorities with different individuals or groups in different areas under different circumstances

A Customised Approach must be applied to all the needs of new farmers

Effective access must be possible for each element

BALANCING THE EQUATION

Land + equipment + money farming success

THE MISSING FACTOR

HUMAN CAPITAL &

MANAGEMENT SKILLS

There has to be a corresponding investment in human capacity

It is farmers who farm

ENTREPRENEURSHIP PROMOTION, DEVELOPMENT & TRAINING ENABLES ACCESS

… APPLIED

TECHNICAL KNOWLEDGE

PRACTICAL FARMING SKILLS

FARM BUSINESS SKILLS

• FUNDING• LAND• WATER• MARKETS• EQUIPMENT• INPUTS• SUPPORT

INCREASED PRODUCTIVITY LEADING TO COMMERCIALISATION, JOBS CREATION &

ECONOMIC GROWTH

THE CHALLENGE FOR SOUTH AFRICA

Target to be achieved over the next 7 years by 2014 … Transfer of 30% of productive commercial land, only Less than 4% transferred

so far Over 20 million hectares of productive farmland is to change hands from white

to black farmers Escalating food prices & cost of living Creation of an inclusive food system for South Africa – National Policy GoalCreation of an inclusive food system for South Africa – National Policy Goal UN Rapporteurs on FS UN Rapporteurs on FS Dr. Olivier De Schutter, Dr. Olivier De Schutter, “In contrast to the large white “In contrast to the large white

commercial farmers, the newly established black farmers are small-scale farmers, commercial farmers, the newly established black farmers are small-scale farmers, with a poor access to markets, a lack of marketing skills, and a weaker bargaining with a poor access to markets, a lack of marketing skills, and a weaker bargaining position in the food chains,” position in the food chains,”

THE QUESTION

Where are the new farmers / entrepreneurs & skills coming

from ?

Are Young people interested enough into agriculture?

THE QUESTION

Where are the new farmers / entrepreneurs & skills coming

from ?

Are Young people interested enough into agriculture?

What then AM I saying? What then AM I saying?

Over more than 10 Yrs of unbroken Youth Dev Activism, particularly our 6 yrs Exp in the Agric Sector, I can say without fear of contradiction that youth must be fearless, encouraged and innovative to increase their chances of success in life – Agriculture is a fulfilling Career but demanding

With a combination of passion, skills & good network leading to emotional yet rational partnerships, anyone can succeed!!!

““Inculcating Entrepreneurial Inculcating Entrepreneurial Spirit, Reaping the fruits of Spirit, Reaping the fruits of

Innovation”Innovation”

I thank You.I thank You.

PLEASE Feel free to PLEASE Feel free to Comment or ask Comment or ask

Questions?Questions?

Where to get Us?Where to get Us?

CSIR Campus, Building 41, First Floor, CSIR Campus, Building 41, First Floor, Lynnwood Manor, PretoriaLynnwood Manor, Pretoria

Contact Person: KediboniContact Person: Kediboni

Contact DetailsContact Details Tel: 012 349 2568Tel: 012 349 2568 Fax: 086 698 7663Fax: 086 698 7663

Email: Email: agriyouth@gmail.com