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April 2018
Prepared on behalf of the Sector by AgriSETA
MILLING, PET FOOD AND ANIMAL FEED SUB-SECTOR SKILLS PLAN
2018-2019
ABBREVIATION/ACRONYM DESCRIPTION
AFASA African Farmers Association of South Africa
AFSTA African Milling, Pet Food and Animal Feed Trade Association
AGOA African Growth and Opportunity Act
AGRISETA Agricultural Sector Education and Training Authority
APAP Agricultural Policy Action Plan
ARC Agriculture Research Council
ATI Agricultural Training Institute
ATR Annual Training Report
BMI Business Monitor International
CoS Centres of Specialization
DAFF Department of Agriculture, Fisheries and Forestry
DHET Department of Higher Education and Training
DRDLR Department of Rural Development and Land Reform
DTI Department of Trade and Industry
FETMIS Further Education and Training Management Information System
GDP Gross Domestic Product
GMF Grain Milling Federation
GMO Genetically Modified Organisms
GTI Grain Training Institute
HEMIS Higher Education Management Information System
HSRC Human Sciences Research Council
HTFV Hard To Fill Vacancies
IGDP Integrated Growth Development Plan
IDP Integrated Development Plan
IPAP Industrial Policy Action Plan
IRR Institute of Race relations
ABBREVIATIONS AND ACRONYMS
ii
ISF International Milling, Pet Food and Animal Feed Forum
KZN KwaZulu-Natal
NAFU National African Farmers Union
NAMC National Agricultural Marketing Council
NDP National Development Plan
NERPO National Emergent Red Meat Producers Organization
NGP New Growth Path
NEETS Not in Employment, Education or Training
NPO Non-Profit Organization
NQF National Qualifications Framework
NSDS III National Skills Development Strategy III
NSFAS National Students Financial Aid Scheme
OSTL Official Milling, Pet Food and Animal Feed Testing Laboratory
QLFS Quarterly Labour Force Survey
QCTO Quality Council for Trade and Occupations
RPL Recognition of Prior Learning
SACAU Southern African Confederation of African Unions
SADC Southern African Development Community
SAIVCET South African Institute for Vocational Continuing Education and
Training
SAQA South African Qualifications Authority
SARS South African Revenue Service
SDA Skills Development Act
SDL Skills development levy
SIC Standard Integrated Project
SIP Standard Industrial Classification
SSP Sector Skills Plan
SIZA Sustainability Initiative of South Africa
STATSSA Statistics South Africa
TAUSA Transvaal Agricultural Union South Africa
TLUSA Farmers Union
iii
TVET Technical Vocational Education and Training
WSP Workplace Skills Plan
WTO World Trade Organization
ABBREVIATIONS AND ACRONYMS ..................................................................................................................................................... i
TABLE OF CONTENTS ....................................................................................................................................................................... iv
LIST OF TABLES AND FIGURES ........................................................................................................................................................... v
EXECUTIVE SUMMARY ..................................................................................................................................................................... vi
CHAPTER 1: SECTOR PROFILE ............................................................................................................................................................ 1
1.1 INTRODUCTION ............................................................................................................................................................. 1
1.2 SCOPE OF COVERAGE .................................................................................................................................................... 2
1.3 KEY ROLE PLAYERS ......................................................................................................................................................... 3
1.4 ECONOMIC PERFORMANCE........................................................................................................................................... 6
1.5 EMPLOYER PROFILE ....................................................................................................................................................... 7
1.6 LABOUR MARKET PROFILE ............................................................................................................................................. 8
1.7 CONCLUSIONS ............................................................................................................................................................. 11
CHAPTER 2: SKILLS ISSUES .............................................................................................................................................................. 12
2.1 INTORDUCTION ........................................................................................................................................................... 12
2.2 ALIGNMENT OF SKILLS PLANNING TO NATIONAL STRATEGIES AND PLANS ................................................................ 12
2.3 PESTEL ......................................................................................................................................................................... 13
2.4 CHANGE DRIVERS ........................................................................................................................................................ 14
2.5 IMPLICATIONS FOR SKILLS PLANNING ......................................................................................................................... 15
2.6 CONCLUSIONS ............................................................................................................................................................. 16
CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS .......................................................................................................... 17
3.1 INTRODUCTION ........................................................................................................................................................... 17
3.2 EXTENT AND NATURE OF SKILLS DEMAND .................................................................................................................. 18
3.3 SCARCE AND TOP UP SKILLS ........................................................................................................................................ 20
3.4 EXTENT AND NATURE OF SUPPLY ................................................................................................................................ 20
3.5 CONCLUSIONS AND PIVOTAL LIST ............................................................................................................................... 21
CHAPTER 4: PARTNERSHIPS ............................................................................................................................................................ 23
4.1 INTRODUCTION ........................................................................................................................................................... 23
4.2 LIST OF PARTNERSHIPS ................................................................................................................................................ 23
4.3 CONCLUSIONS ............................................................................................................................................................. 24
CHAPTER 5: SKILLS PRIORITY ACTIONS ........................................................................................................................................... 25
5.1 INTRODUCTION ........................................................................................................................................................... 25
5.2 KEY FINDINGS FROM PREVIOUS CHAPTERS ................................................................................................................. 26
5.3 KEY FINDINGS FROM PREVIOUS CHAPTERS ................................................................................................................. 27
BIBLIOGRAPHY ................................................................................................................................................................................ 28
TABLE OF CONTENTS
v
FIGURES
Figure 1: FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR ........................................ 3
Figure 2: PROVINCIAL DISTRIBUTION OF MILLING, PET FOOD AND ANIMAL FEED ENTITIES WSPs as a
proxy) ............................................................................................................................................................ 8
Figure 3: PROVINCIAL DISTRIBUTION OF EMPLOYEES .................................................................................. 9
Figure 4: DEMOGRAPHIC COMPOSITION OF EMPLOYEES .......................................................................... 10
TABLES
Table 1: RESEARCH PROCESS AND METHODS ............................................................................................ vii
Table 2: ACTIVITIES WITHIN THE MILLING, PET FOOD AND ANIMAL FEED SUBSECTOR BY SIC CODE ......... 2
Table 3: KEY AGRICULTURAL ROLE-PLAYERS ................................................................................................ 4
Table 4: KEY MILLING, PET FOOD AND ANIMAL FEED ROLE-PLAYERS .......................................................... 5
Table 5: KEY OCCUPATIONS ........................................................................................................................ 10
Table 6: PESTEL FOR THE MILLING, PET FOOD AND ANIMAL FEED INDUSTRY ........................................... 13
Table 7: GENERAL PRIORITY SKILLS FOR THE MILLING, PET FOOD AND ANIMAL FEED INDUSTRY ............ 19
Table 8: PIVOTAL LIST ................................................................................................................................. 22
Table 9: KEY PARTNERSHIPS IN THE MILLING, PET FOOD AND ANIMAL FEED INDUSTRY .......................... 23
LIST OF TABLES AND FIGURES
vi
1. INTRODUCTION AND OVERVIEW
The Milling, Pet Food and Animal Feed sub-sector is a key sector within the agricultural value chain in South Africa for a number of reasons:
It is the first line producer of staple food ingredients (e.g. processes maize, wheat, soy and sunflower).
It is the single largest consumer of primary produced grain products.
It is critical to the production of animal foods which in turn impacts on food security.
Globally the Milling, Pet Food and Animal Feed sector is performing well – although the economic meltdown has, as with most other economic sectors, also had a negative impact. The world population will still grow from 7, 6 billion people in 2015 to an estimated 9, 7 billion in 2050 – equally this economic sub-sector will have to grow in order for the required food for humans and animals to be produced.
In South Africa the sector is affected by the state of primary production. During 2014 to 2016 South Africa experienced one of its most severe droughts with resulted in the country, over that time, becoming a net importer of maize. Given the equally poor value of the local currency, this placed strong upward pressure on the sectors input costs.
However, the 2017 maize harvest has been of record proportions and there is a strong downward trend in maize prices. A crop of 13, 9 million tons was realized and resulted in the ability to export 1, 2 million tons. In this scenario the weak Rand will support export prices.
The other important commodity is wheat. South Africa remains a net importer of wheat. Domestic stocks will be fully used and South Africa will become increasingly reliant on imports and be exposed fully to any unfortunate factors that may impact international prices to increase. The weak Rand will add to the cost of imported wheat.
South Africa is by far the largest pet food manufacturer in the middle-East and Africa and has a similarly large animal feed sub-sector with an annual growth forecast of 7%.
The Milling, Pet Food and Animal Feed sub-sector’s employee demographics reflect that:
Males outnumber females by 4:1. Blacks represent 86% of employees. Employees above the age of 35 are 56% of the workforce.
Some of the key occupations in the sector are:
Scientists and research specialists working mainly on food and nutrition.
EXECUTIVE SUMMARY
vii
Food technologists. Millers – a key occupation within the sector. Tradesmen ranging from welders, to fitters and turners, millwrights, electricians and
boilermakers. Transportation and logistics.
2. RESEARCH
A document review was conducted to establish the economic performance and trends of the Milling, Pet Food and Animal Feed subsector, geographic concentration and employers. Government policy and strategy documents, as well as the key statistical and industry publications were reviewed and these are included in the bibliography. A thematic analysis was conducted to synthesize the key economic, policy and training issues affecting the Milling, Pet Food and Animal Feed subsector, and to identify key skills issues.
The following summarizes the research process and methods used to construct this sub-sector skills plan:
Table 1: RESEARCH PROCESS AND METHODS
RESEARCH TOPICS
OBJECTIVES OF THE STUDY
RESEARCH METHODS
NATURE OF THE STUDY
SAMPLE SIZE
DATA COLLECTION
TOOLS
TIMEFRAME OF THE STUDY
RESEARCH OUTPUTS
Sector Profile
Understanding the economy, enterprises and labour within the sector
Desktop research Key informant interviews
Recent information on the sector was analyzed with a focus on Operation Phakisa: Oceans Economy
N/A Internet data research
October – December 2017
Chapter 1: Sector Profile
Occupational shortages & emerging skills needs
Establish occupational shortages & emerging skills needs of the Milling, Pet food and Animal feed subsector
Qualitative method
Non-probability sampling method was employed to identify stakeholders from whom specific information was required
395 registered Milling, Pet food and Animal feed industry stakeholders
Key informant interviews (primary) & desktop data analysis (secondary)
September – November 2017
Chapter 2: Key Skills Issues Chapter 4: Sector Partnerships Chapter 5: Skills Priority Actions
Skills issues & demands
Identify key occupational shortages, demands &
Quantitative method
Gathering empirical evidence using
12% were cooperative farmers, 13% were
The quantitative survey gathered
September – November 2017
Chapter 2: Key Skills Issues
viii
supply with regard to unskilled, skilled, generic Aquaculture subsector occupations and emerging skills needs in the agricultural sector
primary data sources, as well as undertaking theoretical, desktop research using secondary data sources
small and emerging farmers and 75% were commercial farmers
data on the unskilled, skilled and generic occupational shortages & skills gaps
Chapter 3: Occupational Shortages and Skills Gaps
Sector Partnerships
Identify key AgriSETA partnerships
Desktop research
New sub-sector – search for possible partnerships
N/A N/A October – December 2017
Chapter 1: Sector Profile
3. SCARCE AND PIVOTAL LIST FORMULATION
The scarce skills, skills gaps and pivotal skills lists were arrived at through both secondary data analysis and the numbers made available in previous Sector Skills Plans, large and small workplace skills plans (WSPs), large and small annual training reports, (ATRs), and primary data analysis obtained at the two-day AgriSETA stakeholder conference (30-31 August 2017), interviews and data collection.
4. SUMMARY OF KEY FINDINGS
Skills are needed at three distinct levels:
Firstly, the need for high level scientist in researching matters such as nutrition and food safety. To address this need requires funding at post graduate study level.
Secondly, the need for technical skills such as millers, artisans and technologists. Thirdly, the need to develop new (small scale and collective) farmers
Priority skills in the Milling, Pet Food and Animal Feed industry are;
Professional Researchers. The scientific nature of the sub-sector and food safety requirements calls for skilled researchers and scientists such as plant breeders and technicians (thus working closely with the Seed industry).
Technical Skills which include a range of artisanal skills, food technologists and millers.
Business Acumen. o It is firstly proposed that the sector work closely with AgriSETA and interrogate
the NVC 2 and NVC 4 curricula. If relevant, these qualifications must be tailored
ix
to meet the needs of the small scale farmer and miller contingent and become a foundation programme to develop new entrants covering aspects such as identifying and starting a new business, basic business plan such as setting targets, resource planning, financial and operational plans. Consideration should be given to the need to implement the full NCV programme or only elements thereof as a part qualification.
o Tailored short skills programmes focusing on financial planning, production planning, etc. These are foreseen as one to three-day programmes.
Agricultural Extension Officers and Mentors. The relatively new qualifications for
agricultural extension officers should be implemented more widely and should be a core component of their CPD. The above need to develop business acumen will only realize results if it is coupled with intensive mentoring (as is being done by Grain SA and other agribusinesses).
Labour Market Information is lacking for the sub-sector due to the fact that many of the sector’s members are registered under incorrect SIC codes and are resorting under other sub-sectors. This will require dedicated attention and it is recommended that this matter be prioritized on the AgriSETA research agenda.
1
1.1 INTRODUCTION
Chapter 1 of this report provides an overview of the agricultural sector, paying particular attention to the Milling, Pet Food and Animal Feed subsector in South Africa. The first section of this chapter looks at the scope of the Milling, Pet Food and Animal Feed subsector’s coverage. Followed by the second section, which outlines AgriSETA stakeholders and key role-players in the Milling, Pet Food and Animal Feed subsector. The third section looks at the economic performance of the overall agricultural sector, zooming into the contribution of Milling, Pet Food and Animal Feed to the South African economy. The fourth section explores the employer profile, based on WSP/ATRs. Finally, the last section provides a labour market profile where the number and demographics of people employed in the sector is explored. Essentially, chapter one of this document is intended to set the scene for the skills issues delved into in the subsequent chapters.
CHAPTER 1: SECTOR PROFILE
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1.2 SCOPE OF COVERAGE
The scope of AgriSETA covers the agricultural sector, from input services to the farm, activities on the farm and first level processing activities beyond the farm. The Milling, Pet Food and Animal Feed subsector forms part of the processing activities beyond the farm and covers four economic activities mainly of a milling nature which is supplied to the food manufacturers (Foodbev SETA) but the bulk is then used for the production of non-human food and feed. The table below outlines the formal demarcation of the Milling, Pet Food and Animal Feed sub-sector.
Table 2: ACTIVITIES WITHIN THE MILLING, PET FOOD AND ANIMAL FEED SUBSECTOR BY SIC CODE
SUBSECTOR SIC CODE SIC DESCRIPTION
Milling, Pet Food and Animal Feed
30311 Manufacture of flour and grain mill products, including rice and vegetable milling, and grain mill residues
30330 Manufacture of prepared animal feeds
30331 Manufacture of pet foods
30332 Manufacture of starches and starch products
Source: AgriSETA, 2017
The Milling, Pet Food and Animal Feed subsector is further described as follows;
The main input product to the milling industry is wheat, sunflower, soybeans, sorghum, oats, groundnuts, canola and barley.
Pet foods are categorized as either dry pet food or wet pet food and treats. The Animal feeds sector manufactures feed for the livestock industry. In broad terms it
supplies feed to the dairy, red meat, poultry, aquaculture, ostrich and wild animal industries. South Africa is the 23rd largest feed producer in the world (DAFF, 2015)
Overall, the agricultural sector comprises of 11 sub-sectors, each organized into a Sub-sector committee tasked to represent their industry’s interest to AgriSETA. These are: Red meat; Horticulture; Milling, Pet Food and Animal Feed; Grain & Cereals; Aquaculture; Pest control; Seed; Poultry; Sugar; Tobacco and Fibre. The Milling, Pet Food and Animal Feed subsector constitutes 2% of the overall number of levy paying entities to the AgriSETA. The graph below outlines the relative size of membership number by subsectors, as captured in the AgriSETA member database of 2016.
3
Figure 1: FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR
Source: AgriSETA member database, 2017
Note: Tobacco is not reflected as it reflects “0%” (although large, the total sector consist only of a very
few enterprises)
1.2.1 Revenue derived from Skills Development Levies
In 2017, the value of SDL paid by the Milling, Pet Food and Animal Feed sub-sector was R15 625 150 of which (80%) R13 745 733 flowed to the AgriSETA. This levy was collected from 133 levy payers of whom 53 submitted the WSP/ATR. According to SARS data there are 395 Milling, Pet Food and Animal Feed enterprises in South Africa (the SARS data cannot be relied upon and will not be used in this sub-sector skills plan).
In summary, the Milling, Pet Food and Animal Feed industry represents 2% of levy paying enterprises in AgriSETA and contributes 4% of levy income. It is clear that whilst the Milling, Pet Food and Animal Feed sub-sector is small it consist of a number of relatively large enterprises (therefore a levy percentage double of the number of enterprises).
1.3 KEY ROLE PLAYERS
There are a number of public and private key role-players in the agricultural sector which contribute towards its functioning, including: national government departments, sector representatives and industry bodies. For the sake of brevity, the table below groups these role-players according to their strategic contribution to the sector. Please note that while as comprehensive as possible, this list is not exhaustive.
Red meat (45%)
Horticulture (24%)
Grains and Cereals(10%)Fibre (9%)
Aquaculture (5%)
Poultry (2%)
Milling, Petfood,Animal Feed (2%)Pest control (1%)
Seed (1%)
Sugar (1%)
4
Table 3: KEY AGRICULTURAL ROLE-PLAYERS
Strategic contribution Department or organisation
Relevance to agricultural skills development
Skills Development and Research
Department of Basic Education
Quality of education of entrants to labour market, career awareness programmes to expose agriculture as a possible career choice
Department of Higher Education and Training
Responsible for TVETs, HETs, agricultural colleges and skills development. Sets the national skills development agenda through regulation of SETAs.
Statistics SA Provision of updated statistics on agricultural sector economics & labour force.
Agricultural Research Council Scientific research on agricultural production issues.
Strategy and Policy
Department of Trade and Industry & Provincial Departments of Economic Development
Industrial strategy, international trade agreements, agricultural sector strategy and policy implementation desk.
Department of Agriculture Forestry and Fisheries
Sector regulatory framework, strategy and leadership, provision of extension services, Broad Economic Empowerment funding of development interventions including provision of bursaries for scarce skills.
National Treasury & SARS Financial planning, incentives, accountability of Land Bank, skills levies.
Planning
Department of Labour Labour legislation, wage determinations, employment equity
Department of Economic Development
Sector economic strategies
National Planning Commission Identification of inter-departmental overlaps and gaps
Department of Environmental Affairs
Policy and guidelines on environment protection and natural resource management, partner in environmental education
Department of Transport Planning for transport needs in rural areas
Rural Development and Land Reform
Department of Rural Development and Land Reform
Partnering with AgriSETA in mobilising funds for capacity building of claimants.
Department of Cooperative Governance and Traditional Affairs & Municipalities
Linking agricultural and rural development to IDPs and LED, infrastructure and services to agricultural enterprises
Services
Department of Water Affairs Water Boards manage local irrigation schemes
Department of Energy Strategy to supply electricity to rural areas
South African Police Service Collaboration with agricultural community to address issues of farm security, including attacks, stock and property theft
Credit and assistance Land and Agricultural Financial services to commercial farming
5
Strategic contribution Department or organisation
Relevance to agricultural skills development
Development Bank of South Africa
sector, agribusiness, and emerging farmers.
Micro-Agricultural Financial Institutions of South Africa (MAFISA)
Production loans to smallholder operators
Union and Sector representatives
Agri South Africa (AgriSA) Agricultural Union serving some 32 000 large and small commercial farmers.
National African Farmers’ Union of South Africa (NAFU)
Represents black farmers to level the field in all agricultural matters.
The African Farmers’ Association of South Africa (AFASA)
Represents commercial African farmers to bring black commercial farmers into mainstream agribusiness.
Transvaal Agricultural Union South Africa (TAU SA)
A national agricultural union serving commercial farmers
Food and Allied Workers Union
Representing unionized agricultural and food processing workers
Agribusiness
Agricultural Business Chamber Fosters a favorable agribusiness environment
Grain SA
Conglomerate organization providing commodity strategic support and services to South African grain producers to support sustainability.
Source: 2015 GCIS Handbook, Agriculture and AgriSETA SSP 2011-2016
Whilst the above is relevant to the agricultural sector at large, certain key role players needs special mentioning when considering the Milling, Pet Food and Animal Feed sub-sector:
Table 4: KEY MILLING, PET FOOD AND ANIMAL FEED ROLE-PLAYERS
Strategic contribution Department or organisation
Relevance to agricultural skills development
Quality assurance DAFF, DTI and DED
Act 36 of 1947, requiring nutritional adequacy and proper labelling of pet foods. Other food related regulations and it appears from time to time.
Lobbying, communication and
relations
AGBIZ Business representation
NAMC Marketing matters, assistance with exports
AFSTA African Milling, Pet Food and Animal Feed trade lobbying
ISF Matters pertaining to international trade in Milling, Pet Food and Animal Feed.
Sector bodies National Chamber of Milling (NCM)
The employer’s body representing the milling industry in South Africa. It represents 20 large millers directly, but also have associate members (who are generally business partners with the milling industry)
6
Strategic contribution Department or organisation
Relevance to agricultural skills development
Pet Food Industry of South Africa (PFI SA)
PFI represents 78 pet food manufacturers, 24 affiliate members (companies that own their own branded pet food products) and 3 associate members (media, university and research institution)
Animal Feed Manufacturers Association (AFMA)
AFMA represents 73 manufacturers of animal feed in South Africa (each manufacturing unit is a separate member even though it may be the same company) and 78 associate members
NCM, PFI SA and AFMA membership lists, 2017
1.4 ECONOMIC PERFORMANCE
1.4.1 Overview
Overall, agriculture contributes 2, 4% to South Africa’s gross domestic product (GDP) and 4, 4% of total employment (IRR, 2016). Notwithstanding the relatively small share of the total GDP, primary agriculture is an important sector in the South African economy; the value of primary agricultural production in South Africa was R263,2 billion in 2016, while its contribution to the GDP was estimated at R72.2 billion in 2015 (DAFF, 2016). In addition, the sector plays an important role in job creation, especially in the more rural parts of the country.
The milling industry can indirectly be measured against the production of grains. The world production of maize exceed the demand. The exceptional droughts of 2015/16 depleted stock in South Africa to the level that certain types of maize had to be imported. However, following very good rains, early 2017 this situation turned around and a record harvest was achieved which resulted in an overproduction – this, however, creates the opportunity to build up reserves. Most of the production of the milling industry is channeled to the animal feed industry and human food manufacturers.
Given the highest unemployment levels since the 2008–09 recession (in excess of 27 percent in the second quarter of 2017), a weak rand and the worst drought in 23 years, and weaker commodity prices have converged to decrease overall consumer spending, including in the pet food market. The value of the pet food market is roughly R4 billion per annum of which 89% is spent on dry pet food and the balance on wet pet food and treats.
The feed industry supplies to the dairy, red meat, poultry, aquaculture, ostrich and wild animal industries, the bulk is supplied to the broiler industry (42%), followed by dairy (15%) and beef & sheep (15%) and finally layers (13%). The vast majority of its input volume is maize (white and yellow) representing 51%% of raw material followed by oil cake and full fat (21%)
1.4.2 Economic Outlook of the Milling, Pet Food and Animal Feed Sub-sector
For the milling industry the following is recorded (SAGIS, 2014):
7
It is forecasted that whilst human consumption of summer grains (mainly maize)will remain stable at just below 4 000 tons, there is a strong growth in feed consumption forecasted for the period up to 2022, resulting therein that the overall consumption of maize will grow to an estimated 7 million tons by 2022.
In terms of South African production winter grains (wheat and barley) will reduce progressively from in excess of 300 000 hectares under cultivation in 2014 to less than 250 000 hectares by 2022. Since 2015, imports are exceeding local production and the gap will become significantly larger by 2022.
Whilst sunflower production is projected to remain stable, soya beans will increase drastically from 500 000 tons in 2014 to nearly 900 000 tons by 2022.
South African is by far the largest pet food manufacturer in the Middle East and Africa, accounting for more than half of the sales of the region (Global Pets, 2016). Euromonitor International forecasts that value sales of pet food in South Africa will expand by 12% (CAGR of 2%) at constant 2015 prices, between 2015 and 2020.
Animal feed is an important component in the overall food production process, particularly for livestock based food products industry. Normally, production occurs in industrial mills or in simple on-farm mixes. It is projected that poultry production (the largest consumer of animal feed) will grow by 24% over the next decade reaching 131.5 tons in 2025. On a macro scale the OECD-FAO agricultural outlook up to 2026 project “unprecedented growth in demand for agricultural products. In South Africa the annual growth forecast in agribusiness market value is 7% from 2017 to 2021 (ARC, September 2017). These figures bode well for the future of the animal feed industry.
1.5 EMPLOYER PROFILE
According to SARS there are 395 registered Milling, Pet Food and Animal Feed industry employers in South Africa. Of them, 133 are paying the skills levy and 53 are submitting the WSP/ATR. Some Milling, Pet Food and Animal Feed producers may have registered themselves under other activities such as grains and cereals.
8
Figure 2: PROVINCIAL DISTRIBUTION OF MILLING, PET FOOD AND ANIMAL FEED ENTITIES WSPs as a proxy)
AgriSETA WSP, 2017
The majority of Milling, Pet Food and Animal Feed producers are located in Gauteng (24%) followed by the Free State (18%) and 16% each for KZN and Western Cape.
1.5.1 Small Scale Milling, Pet Food and Animal Feed enterprises
There are very few successful small scale millers in South Africa and even less pet food and animal feed producers (except those that do on-farm mixes but that is mainly for own use). However, from an input perspective, South Africa’s small-scale farmers are producing significant quantities of maize. The increase of agricultural development support in the Eastern Cape helped farmers to increase production from 75 000t in 2004 to 400 000t in 2014. (Farmer’s Weekly, September 2016).
There is one known fully Black owned milling company situated in Ventersburg in the Free State province and it has a capacity of 36 000 tons per annum.
1.6 LABOUR MARKET PROFILE
Labour market information is based essentially on WSP/ATR information. The Information is based on Large, Medium and Small enterprises submitting the WSP. The information is expressed in relative terms as the data available to AgriSETA does not represent the full population.
23%
18%
15%
15%
8%
8%
5%5%
3%
Gau
FS
KZN
WC
Lim
EC
MP
NW
NC
9
1.6.1 Provincial distribution of employees
Figure 3: PROVINCIAL DISTRIBUTION OF EMPLOYEES
AgriSETA WSP, 2017
The provincial distribution of employees follows a different pattern as for employers: Gauteng remains the largest, but whilst Mpumalanga only represents 5% of employers, it employs 14% of workers and whilst the Western Cape represents 15% of employers it only employs 10% of workers.
1.6.2 Gender, Race and Age
The following table summarizes the demographics of the sector.
31%
14%
12%
12%
10%
8%
5%6%
2%
Gau
MP
Lim
FS
WC
NW
EC
KZN
NC
10
Figure 4: DEMOGRAPHIC COMPOSITION OF EMPLOYEES
AgriSETA WSP data, 2017
According to this table in the Milling, Pet Food and Animal Feed sub-sector:
Males outnumber females by 4:1. Blacks represent 86% of employees (inclusive of Africans, Coloureds and Asians) Employees above the age of 35 are 56% of the workforce.
The gender equality in the Milling, Pet food and Animal Feeds sub-sector is very poor and is a matter for concern.
1.6.3 Occupational Categories
The following table summarizes the top ten occupations in the Milling, Pet Food and Animal Feed industry based on number of employees per category (grouped in larger OFO categories).
Table 5: KEY OCCUPATIONS
OCCPATION CODE OCCUPATION
2017-112101/121101/121201/121901/121908/ 122101/122102/122103/122102
Managers – directors, general, sales, etc.
2017-132101/132102/132104/132401/ 132402/ 132403/132404/132405
Managers - production, operations, distribution, engineering, logistics, transport, warehouse
2017-241101/241104/241107 Accountant, auditor, financial accountant
2017-311101/311102/311903 Chemistry technician, physical science engineer, food & beverages technician
2017-312201/312202/313909/314201 Production/operations supervisor, maintenance planner, miller, agricultural technician
2017-651202/652302/653109/653301/ 653303/653306/671101/671202
Tradesmen: Welder, Fitter & turner, boiler maker, automotive engine mechanic, diesel mechanic, electrician, millwright
80%
20%
76%
9%
1%
14%
44% 47%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
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OCCPATION CODE OCCUPATION
2017-716109/716113/718201/718302/718304
Milling process machine operator, grain handling operator, engine operator, packing machine operator, packing machine setter
2017-732101/733201/734101/734402 Delivery driver, truck driver, agricultural mobile plant operator, forklift driver
2017-821104/832101/832904 Harvester/picker, packer, food and beverage factory worker
2017-833401/862202 Store person, handyman
1.7 CONCLUSIONS
The Milling, Pet Food and Animal Feed subsector is an important sector. It is central to the production of staple foods – bread, white and yellow maize, samp, sunflower oil as well as the production of animal feeds (one of the largest consumers of grain products) and pet foods (an estimated 6 million cats and dogs alone).
The sector is economically stable and will grow in the long term (in line with world population). The most disturbing fact about the sector is that male employees outstrip female employees by four to one. This unequal gender distribution deserve priority attention from industry leaders.
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2.1 INTORDUCTION
This chapter focuses on the alignment of skills planning to national strategies insofar as it has relevance to Milling, Pet Food and Animal Feed, and it will also focus on factors driving change in the sector, thus influencing particular skills needs.
2.2 ALIGNMENT OF SKILLS PLANNING TO NATIONAL STRATEGIES AND PLANS
The following section draws attention to the national strategy and planning documents that frame AgriSETA’s mandate for skills development. All of these legislative and policy frameworks speak to AgriSETA’s Constitutional mandate, as a Public Institution governed by the Public Finance Management Act, to develop learning programmes and facilitate the implementation thereof in accordance with the Skills Development Act, (1998), the Skills Development Levies Act (1999), and the National Qualifications Framework Act (2008).
CHAPTER 2: SKILLS ISSUES
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There are two seminal strategic documents that underpin AgriSETA’s mandate for skills planning, namely: the White Paper on Post School Education & Training (2013) and the National Skills Development Strategy III (NSDS III) (2011 – 2016). Both of these documents highlight the SETAs roles in developing clear, sector specific linkages between education and the workplace through an analysis of the demand and supply of skills in their sector. These documents call for credible institutional mechanisms for skills planning, programmes that are occupationally oriented, and responsive higher and further education and training institutions. Furthermore, attention should be given to the needs of local, community enterprises, co-operatives and the like, with a focus on developing their skills capacities to meet the needs of their particular environments, thereby closing the gap between the rural and urban South African economies.
2.3 PESTEL
The macro-environmental framework within which the South African Milling, Pet Food and Animal Feed industry has to operate and for the SSC to advise the AgriSETA, reflect the following factors that needs to be taken into account for any strategic planning purposes
Table 6: PESTEL FOR THE MILLING, PET FOOD AND ANIMAL FEED INDUSTRY
FACTOR POSSIBLE IMPACT
Political
The proposed national minimum wage will impact negatively on employment Proper legislation re. Transfer of land must be put in place as it affects the ability of small scale farmers to have access to financing. Land expropriation without compensation can have a negative impact on the producers of this industry.
Economic
World growth in population and resultant growth in demand for food holds positive implications for this industry. This sector is central to staple food and all other food supply – indispensable industry as grains is the basis of many food products. Instability of the local currency has a negative effect on the ability to plan and manage imports and exports.
Social Equity not well balanced in that the sector is male dominated. Coal mining creates excessive pollution and needs to be addressed.
Technological
Mechanization leads to job losses Water crisis – proper management of water, testing and licensing must be in place. Drought leads to the need for new technology, research and development.
Legal
Legislation that address the registration of products takes long, delays entry to the market and hinder innovation. Legislation and new laws for inspection of maize, soya, wheat, etc. brings additional cost to the producer and eventually the consumer.
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These PESTEL factors need to be taken into consideration when prioritizing skills development initiatives in the sector.
2.4 CHANGE DRIVERS
In this section key themes and issues driving change and influencing skills demand and supply in the Milling, Pet Food and Animal Feed sector, are addressed. These change drivers were identified through a thematic synthesis of internal stakeholders’ views, policy documents, existing research and stakeholder engagement. It was ensured that sufficient engagement, via SSC sessions, were placed on the needs of the under resourced sector.
2.4.1 Climate Change
Climate change has a direct impact on the production of Milling, Pet Food and Animal Feed – natural disasters can cause Milling, Pet Food and Animal Feed production to be hampered as the sector is dependent on a stable supply of maize. Drought and flash floods with resultant diseases affect the supply of maize and other grains which is central to this sub-sector.
Similarly, the water crisis in South Africa impacts on the stability of food supply.
2.4.2 Mechanization
Mechanization in the agricultural industry (primary producers and processers) is becoming more prominent and will lead to job losses. On the other hand new occupations will emerge and existing employees will have to be re-skilled to be able to work with new technology.
2.4.3 Political Uncertainty
It is becoming clear that the looming national elections in 2019 are already finding its way into decision-making in government departments. Although still nearly two years into the future, departments are seemingly already holding back on agreements which will have long term implications (that will run over the election time frame).
Political uncertainty also has a direct impact on the value of the Rand, making it more volatile and difficult to plan (imports and exports) when operating in the international markets.
Finally, there seems to be a lack of political will to get to finality on the transfer of land – it is an issue that has created uncertainty for the past 20 years and continues to do so. It has a negative effect on investment and economic expansion (most importantly, it limits access to capital).
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2.4.4 The Green Economy
There is an increasing emphasis on the “green economy” in government policy documents (see, NDP, NGP) and with consumer bodies (such as Waitrose and the drivers of the GAP initiative). In the agricultural sector, this refers to the use of environmentally sustainable farming practices and proper utilization of resources (including human).
Consumers’ demands evolved over the years. The modern consumer is more aware of conservation and wants to know that the produce in Milling, Pet Food and Animal Feed used originate from a sustainable industry. They are much more informed about the industry and are more discerning, demanding only the best. There is a need to apply Good Agricultural Practices (GAP) which satisfies consumers that ethical practices were adhered to.
Coal mining, which is competing with grazing land, is becoming a real challenge in that agricultural land is being taken over by mining and the negative effect coal mining pollution has on adjacent crops.
2.4.5 Weakening of the Local Currency
The investment downgrades, political uncertainty, regress in tax collections and a budget shortfall of R50 billion all contribute to a poor economic outlook for the country. These impact negatively on the local currency and the Rand will remain weak and will most likely weaken even more over time as there is no indication of any real short term improvement in the country’s economy. This results in higher cost to imports of which wheat is an important product (South Africa is already a net importer of wheat).
The weak Rand, however, creates the ideal platform to expand on exports and to find new foreign markets.
2.5 IMPLICATIONS FOR SKILLS PLANNING
In this chapter we have seen that the legislative and policy frameworks established by government, coupled with the contextual change drivers and industry specific perspectives on skills development point to the following 5 skills implications that need to be addressed in the Milling, Pet Food and Animal Feed Sub-Sector Skills Plan.
5 Skills Implications
1. The grain industry and related agribusinesses are progressing very well with the establishment of small scale farming. This momentum needs to be maintained and intensified to ensure that small scale and new farmers contribute in increasing volumes to the Milling, Pet off and Animal feeds industry. This has training and mentoring implications.
2. Mills and food production factories require technical skills – there is a need to focus on artisanal skills and other technical, industry specific skills such as milling quality controllers, laboratory technicians and food production line technicians.
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3. Scientists who are able to analyze and formulate nutritious food over the spectrum of human, pet food and animal feeds.
4. Millers – the milling tradesmen are older and there is a need to have them replaced by a new generation of millers.
5. Funding of research into new technology and food sciences.
2.6 CONCLUSIONS
The Milling, Pet Food and Animal Feed sub-sector is well established and sophisticated. It is geared towards the needs of the commercial sector and with the weak currency, well positioned to participate in the export market.
It is, however, challenged by the fact that insufficient scientists are produced by the tertiary sector and that there are not sufficient support for small scale and emerging farmers. Particularly, the consistent supply of inputs to the Milling, Pet food and Animal feed industry such as maize, soybeans and wheat is crucial – small scale and new farmers need to contribute in a measurable manner to the supply of inputs to the industry.
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3.1 INTRODUCTION
Chapter 3 reflects skills demand and supply in the Milling, Pet Food and Animal Feed industry. WSP and ATR information is key to the findings of this chapter.
The key themes emerging from this chapter corroborate the skills implications identified at the end of Chapter 2.
CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS
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3.2 EXTENT AND NATURE OF SKILLS DEMAND
A number of factors impact on the demand for skills in the sector – such as the slow, but positive growth in the market internationally and the weak local currency which should advance sectoral economic growth, which in turn, should have a positive effect labour demand. However there are other less obvious reasons. In a PESTEL and SWOT analysis of the sector the following were raised as important factors impacting on the Milling, Pet Food and Animal Feed sector.
Labour Demographic Matters It is of great concern that the sector’s workforce is dominated by males – 80% of employees are male. The AgriSETA and the Milling, Pet Food and Animal Feed SSC need to interrogate this phenomenon and find ways to address it with SETA support. The industry is estimated to employ in excess of 20 000 workers – using this as a basis, the need to develop female workers into all occupations in the industry is large and needs to be planned and addressed systematically. Commercial Enterprises The focus with commercial enterprises in the Milling, Pet Food and Animal Feed sub-sector is on high-level technical and scientific/research matters such as:
o Animal Feed Scientists. o Laboratory Technicians. o Quality Controllers. o Millers.
Extension Officers The Milling, Pet Food and Animal Feed industry is very actively pursuing transformation. It has a dedicated team focusing solely on the development of small scale farmers. It has in excess of 4 000 emerging farmers organized into 109 study groups and about 100 farmers belong to the 250 tons club (producing 250 tons or more per annum). More than 150 farmers are directly being mentored and trained on-farm. However, there is an absence of government extension officers. Whilst there are about 3 000 extension officers employed by DAFF and provincial departments of agriculture, they are not able or willing to become involved. Ideally these extension officers should work shoulder to shoulder with private sector support initiatives. Labour Market Information Comprehensive and accurate labour market information on the Milling, Pet Food and Animal Feed sub-sector is lacking. Whilst SARS lists in excess of 300 businesses only 133 are paying the
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levy and detailed information is only available from 53. This matter requires urgent attention from AgriSETA. Hard-To-Fill Vacancies
Hard to fill vacancies (HTFV) are those vacancies which can take six months or more to fill. The industry identified the following four categorized of occupations which can be regarded as HTFV.
Table 7: GENERAL HTFVs FOR THE MILLING, PET FOOD AND ANIMAL FEED INDUSTRY
HTFV Reason Demand and
Supply SETA intervention
1. Scientists
(especially
those
specializing in
food nutrition)
Not sufficiently and
appropriately qualified at
tertiary level
Equity reasons
Sector demands
very specific
scientists but from a
supply side it is
generic and
numbers are low
Engage with
industry and
institutions of
higher learning on
the development
of or adjustment
of current
curricula
Bursaries
Internships.
2. Millers (all
categories
Ageing milling population Very few providers
have the knowhow
to train millers to
the level of an
artisan
Bursaries
Learnerships
3. Silo Managers Ageing silo management
population
No integrated silo
manager
development
strategy
AgriSETA to work
with the industry
on silo
management
programme
Learnerships
4. Artisans (across
various trades
such as
welder, fitter & turner, boiler maker, automotive engine mech., diesel mech., electrician, millwright
Ageing artisanal population
Poor throughput
TVET Colleges focus
on NC(V) which is
not a programme
of choice with
employers
Employers forced
to use expensive
private training
providers
AgriSETA to work
with DHET on 13
priority trades to
be applied in the
context of the
dual system
AgriSETA initiate,
with other SETAs,
development of
occupational
qualifications for
trades not part of
the 13 priority
trades
Apprenticeship
grants
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3.3 SCARCE AND TOP UP SKILLS
Scarce and top-up skills are determined by considering the HTFV and what is reported by commodity organisations. Unfortunately the number of WSP/ATRs for the Milling, Pet Food and Animal Feed sub-sector provide only limited information.
3.3.1 Scarce Skills
Scarce skills in the Milling, Pet Food and Animal Feed sub-sector are of a scientific nature. The requirement is for qualified scientists as mentioned above:
o Animal and Human Food Scientists. o Laboratory Technicians. o Millers. o Artisans – Welder, fitter & turner, boiler maker, automotive engine mechanic, diesel
mechanic, electrician, millwright. o Silo Managers. o Financial Specialists.
Because tertiary qualifications tend to be generic in nature, addressing this shortfall will require a two-pronged approach by the AgriSETA: the provision of bursaries to study towards becoming a scientist/ laboratory technician/miller but it should be coupled with an intensive internship programme which allows the scientist to work specifically within the context of the Milling, Pet Food and Animal Feed industry.
3.3.2 Top-Up Skills
Top-up skills are required for extension officers and out-growers:
o Extension officers need to attend specifically designed and dedicated skills programmes to expand their knowledge on grains production.
o Small scale farmers or co-operatives who are identified as to have the potential to grow as Milling, Pet Food and Animal Feed farmers under the guidance of structures such as GrainSA and agribusinesses. Skills required relate to business skills, entrepreneurship, finances and logistics and the obvious technical farming skills.
3.4 EXTENT AND NATURE OF SUPPLY
3.4.1 Tertiary Institutions
Milling, Pet Food and Animal Feed production is not treated as a specific field of study at tertiary institutions. Post graduate training is however being done at tertiary institutions where research can be done into a specific aspect of the sub-sector. Much training/research needs to focus on GMQs and the improvement of plant material and nutritional value of processed products.
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Laboratory technicians, and food and beverage technicians are supplied as generalists – there is a need to partner with a University or University of Technology to provide specific Milling, Pet food and Animal feeds qualifications and specialization areas. The students need to be exposed throughout their study programme to internship programmes which will make them suitable and immediately employable to this industry.
3.4.2 Agricultural Training Institutes (formerly Agricultural Colleges)
Agricultural training institutes provide learning opportunities to the primary sector – farming practices and management. This is important to ensure sufficient grain supply to the Milling, Pet Food and Animal Feed industry, but they do not focus on processing activities. 3.4.3 AgriSETA Under the auspices of AgriSETA are five relevant qualifications registered at SAQA. These are:
GETC in Grain Handling Processes, NQF 1 and 2 (relevant in silos and similar storage facilities).
National Certificate in Grain Handling Processes, NQF3. FETC in Grain Milling, NQF 4. FETC in Dry Pet Food Advanced Technology, NQF4. National Diploma in Grain Handling Management, NQF5.
Some private providers accredited with AgriSETA can deliver on some of these qualifications, but the most prominent are:
Grain Milling Federation (GMF) o The GMF administer the renowned programme in Wheat and Maize Milling
Technology (international standard programme). It also administers a Trade Test for Millers. This is the most accepted programme by industry and is well supported by industry.
Grain Training Institute (GTI). GTI focuses on the grading of grains (dry beans, wheat, maize, sorghum soya and sunflower seed) as well as grain storage hygiene and combating contamination in grain.
3.4.3 Mentoring and Extension Services Extension services are poor and do very little to contribute to any form of small scale or collective farming. Mentoring activities are undertaken by grain production structures (such as Grain SA) and agribusinesses who support and develop small scale farmers and transformation in general; and government employed extension officers are largely absent.
3.5 CONCLUSIONS AND PIVOTAL LIST Section 3.2 above list the occupations that were identified as scarce and the need for to-up skills. The following table summarizes the occupations and the PIVOTAL programmes.
This pivotal list is essentially based on the AgriSETA WSPs for the Milling, Pet Food and Animal Feed sub-sector. It has been moderated by SSC members.
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Table 8: PIVOTAL LIST
OFO
Code1 Occupation
Specialisation/ Alternative Title
Intervention
Planned
NQF
Level
NQF
Aligned
#
needed # to be
trained
2017-
213202
Agricultural
Scientist
Animal nutritionist Bursary 7 to 10 Yes 6 6
2017-
213205
Food and
Beverage
Scientist
Milling nutritionist 7 to 10 Yes 2 2
2017-
311101
Chemistry
technician
Food chemical
technician
Bursary 5 to 6 Yes 4 4
2017-
311903
Food and
Beverage
Technician
Milling Laboratory
Technician
Food Laboratory
Technician
Food science
technician
Bursary 5 to 6 Yes 6 6
2017-
313909
Millers Bursaries 5 to 6 Yes 28 28
2017-
651202
Welder Apprentice-
ship
4 Yes 4 4
2017-
652302
Boilermaker Apprentice-
ship t
4 Yes 4 4
2017-
653109
Automotive
Engine
Mechanic
Apprentice-
ship
4 Yes 4 4
2017-
653303
Mechanical
Fitter
Apprentice-
ship
4 Yes 4 4
2017-
653306
Diesel
Mechanic
Apprentice-
ship
4 Yes 2 2
2017-
671202
Millwright Apprentice-
ship
5 Yes 12 12
2017-
132408
Grain Depot
Manager
Silo manager Learnership
grant
5 Yes 4 4
The information contained in this table is tentative. The WSP/ATR information is not conclusive and the SSC did not provide any
inputs. This table should be used as a basis to engage further with the SSC
1 Some of these occupations may be areas of specialization within the listed OFO codes
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4.1 INTRODUCTION
This chapter highlights the partnerships which exist between the Milling, Pet Food and Animal Feed industry and other institutions benefitting the industry.
4.2 LIST OF PARTNERSHIPS
Three partnership categories are listed:
Table 9: KEY PARTNERSHIPS IN THE MILLING, PET FOOD AND ANIMAL FEED INDUSTRY
Strategic Partnership Department or
organisation Relevance of partnership
Skills development
AgriSETA
Funding the Milling, Pet Food and Animal Feed industry as a commodity organization where the industry select the type of intervention which must be industry-wide.
CHAPTER 4: PARTNERSHIPS
24
Strategic Partnership Department or
organisation Relevance of partnership
Funding of learning interventions of individual industry enterprises based on applications put forward to AgriSETA. Support the industry to create a partnership with an appropriate tertiary education institution.
GMF and GTI Two specialist training providers serving the need to produce millers and silo management
Government
DAFF Various laws applicable to the production of food and feed
DTI, DED, NAMC Matters pertaining to the import and export of food and feed
Commercial matters GrainSA and various agribusinesses
Supply of grains in a sustainable and stable manner
4.3 CONCLUSIONS
The above partnerships are important to the Milling, Pet food and Animal feeds industry to ensure that it can continue to provide in South Africa’s basic food such as maize and wheat products. It is also important as the feeds industry and specifically poultry is the largest single consumer of maize.
It is, however, recommended that the industry consider the formation of a partnership with a Higher Education Institution (University or University of Technology) with the purpose to establish a set of integrated qualifications (within which the important current recognized Millers will play a central role) to ensure that there is sufficient technical and scientific skills supply to the industry.
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5.1 INTRODUCTION
This chapter aims to synthesize the findings of the previous chapters and establish a set of skills priority actions for the sub-sector. The intention of these recommended skills priority actions is that they articulate the micro concerns of the Milling, Pet Food and Animal Feed sector.
These recommendations are founded in national policy and sectoral change drivers (chapter 2), as well as the skills concerns identified by employers and training providers in terms of their skills needs (chapter 3). This chapter is not a strategic or operational plan, but rather serves to identify priorities that should be taken forward and further developed in the AgriSETA Strategic Plan and Annual Performance Plan and to reflect the needs of the Milling, Pet Food and Animal Feed industry in those documents.
CHAPTER 5: SKILLS PRIORITY ACTIONS
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5.2 KEY FINDINGS FROM PREVIOUS CHAPTERS
From Chapter 1: The Milling, Pet Food and Animal Feed sub-sector is a substantial sub-sector demarcated to AgriSETA, and has two important characteristics: it is a high level of technical expertise and it is absolutely crucial to food security for the country. Secondly, it is the largest consumer of grain products in the country – a sustainable and stable supply of grains is crucial to the ability of the industry in supplying animal feeds and milled maize and wheat used in basic foods. The sector consists of three further sub-sectors namely:
Milling Pet foods and Animal feeds
In all three categories, the immediate economic outlook is positive and coupled to the weak local currency, creates opportunities for export and growth of the industry. However, the contrary is also true: should South Africa not be able to produce sufficient grain products and have to import large quantities, the weak currency will have the opposite effect. This is also visible with regards to the high volumes of wheat that needs to be imported due to insufficient production.
The fact that the industry is male dominated and that key workers (millers and artisans) are generally older requires attention and needs to be addressed by the SETA and the SSC on how best to intervene and change this profile over time.
Key skills issues (Chapter 2) relate to climate change (which impact on the supply of grains to the industry), extension advisors (holding back the establishment of small scale and collective farmers producing larger tonnage of grains and as such contributing to the supply in a meaningful manner), political uncertainty (reluctance to take long term decisions due to the looming elections) and the green economy (in this case referring to resistance to GMOs and coal mining invading farm land and the pollution caused by coal mining). The weakening of the local currency, if it continues over time will benefit the industry in that it boosts its ability to be competitive, also in the export market.
From a supply perspective the biggest challenges are that there are insufficient supply of millers, artisans and food and beverage technologists as well the ability of extension officers to contribute to the well-being and growth of the sub-sector (especially of small scale and new farmers).
Skills are needed at three distinct levels (Chapter 3):
Firstly, the need for high level scientist in researching matters such as nutrition and food safety. To address this need requires funding at post graduate study level.
Secondly, the need to for technical skills such as millers, artisans and technologists. Thirdly, the need to develop new (small scale and collective) farmers.
27
Chapter 4 summarizes the key partnerships in the industry categorized in skills development related partnerships, partnerships with Government and partnerships of a commercial nature.
5.3 KEY FINDINGS FROM PREVIOUS CHAPTERS
Priority skills in the Milling, Pet Food and Animal Feed industry are:
Professional researchers. The scientific nature of the sub-sector and food safety requirements call for skilled researchers and scientists such as plant breeders, molecular biologists and technicians.
Technical skills which include a range of artisanal skills, food technologists and millers.
Business acumen. o It is firstly proposed that the sector work closely with AgriSETA and interrogate
the NVC 2 and NVC 4 curricula. If relevant, these qualifications must be tailored to meet the needs of the small scale farmer contingent and become a foundation programme to develop new entrants covering aspects such as identifying and starting a new business, basic business plan such as setting targets, resource planning, financial and operational plans. Consideration should be given to the need to implement the full NCV programme or only elements thereof as a part qualification.
o Tailored short skills programmes focusing on financial planning, production planning, etc. These are foreseen as one to three day programmes.
Agricultural Extension Officers and Mentors. The relatively new qualifications for
agricultural extension officers should be implemented more widely and should be a core component of their CPD. The above need to develop business acumen will only realize results if it is coupled with intensive mentoring (as is being done by Grain SA and other agribusinesses).
Labour Market Information is lacking for the sub-sector due to the fact that many of the sector’s members are registered under incorrect SIC codes and are resorting under other sub-sectors. This will require dedicated attention and it is recommended that this matter be prioritized on the AgriSETA research agenda.
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FAO/WHO. 2004. Code of Practice on Good Animal Feeding (CAC/RCP 54–2004). Rome. (Available at http://www.codexalimentarius.net/download/standards/10080/CXC_054_2004e.pdf). FAO/WHO. 2007. Codex Alimentarius principles for risk analysis, (Procedural Manual of the Codex Alimentarius Commission), Seventeenth Edition. Joint FAO/WHO Food Standards Programme. Rome. (Available at ¬http://www.codexalimentarius.net/web/procedural_manual.jsp). http://www.nda.agric.za/doaDev/sideMenu/Marketing/Annual Publications/Commodity Profiles/field
crops/SOUTH AFRICAN ANIMAL FEEDS MARKET ANALYSIS REPORT 2016.pdf
https://www.farmersweekly.co.za/agri-news/south-africa/five-facts-about-south-africas-maize industry/
https://globalpets.community/article/south-african-pet-food-trends
http://www.arc.agric.za/Economic Outlook Reports/Economic Outlook Report, Issue XXII, Sept 2017.pdf
http://www.sagis.org.za/BFAP_2014.pdf
NRC. 2005. Mineral tolerance of animals. Washington DC, National Research Council.
REFERENCE OF PICTURES USED IN THIS DOCUMENT
Cover page: Selian Holdings, Flour milling, not dated.
Petfood Industry.com, Feed and pet food extrusion short course at Texas A&M,
September 2017.
Exporters India.com, Cattle feed supplements, not dated.
Chapter 1: Radical Survivalism Webzine, The prepper’s kitchen: Choosing a hand grain mill,
January 2013.
Chapter 2: Eat Out, From acorn flour to spelt: unusual grains trending in restaurant
kitchens, October 2015.
Chapter 3: Triumph Pet Food website, not dated.
Chapter 4: Entertainment News Access, Animal feed protein sales market innovations
report 2018 to 2025, January 2018.
Chapter 5: Market Data Forecast Blog, Pet food market trends and analysis, June 2017.
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