The Contribution Of Emerging Farmers To Rural Development ... · 2 National Roads Growth Centres Deep 2 nd Rural Economy Corridors N14 N10 N10 N10 N1 N1 N1 N1 N1 N2 N2 N2 N2 N3 N3

The Contribution Of Emerging Farmers To Rural Development

Models Linking Producers To Markets

Rev. Otto MbangulaPresident Of The National Farmers ’ Union

Ombangula @Gmail.Com

2

National Roads

Growth Centres

Deep 2nd Rural Economy Corridors

N14

N10

N10

N10

N1

N1

N1

N1

N1

N2

N2

N2

N2

N3

N3

N9

N7

N4 N4

N12

N11

N17

N17

N11

N11

N11

N12

N12 N6

N14 N8

N3

Deep rural second-economy environments

““““Missing linksMissing linksMissing linksMissing links””””

Development Corridors

Comprehensive Rural Development

Agriculture in a changing environment

• Agriculture is dynamic – it is continually changing�It is a cut throat Business & the survival of the

fittest�It is a global village, Markets and Consumers

are merciless �Conventions & treaties influence policies of

countries �Farmer’s decisions are influenced by

international factors�Impact by exchange rates, currency & interest

rates• The “New Agriculture” demands for a changed

way in which we conduct our business. • It calls for us to think of the unthinkable.• Thinking outside the Box and limitations of

Beurocratic trappings• Like all transitions, change is tough, costly &

painful

‘

•Limited institutional capacity among smallholders farmers

•Limited access to finance and lucrative markets.

•Production by smallholders tends to be small and

unattractive for long- term market contracts.

•Lobbying for land, finance and water by emerging farmers is

difficult.

•Financial houses are looking at their balance sheets, &

highly suspicious of Rural Economies in general &

emerging farmers in particular

LACK OF CAPACITY IN MANY EMERGING FARMERS

MOVE FROM PERPETUATING POVERTY TO SUSTAINABLE DEVELOPMENT

A Need For

A New Vision & A New Way Of Doing Business. To Unlock The Economic Potential Of The Rural Communities

OPTIONS

� Meaningful Research to be conducted establishing re al

needs

� Creating opportunities from the currently available

resource existing in Rural Communities i.e..

� The Land

� Vast Experience (Commercial Agriculture)

� Water ( to sustain our produce)

� Markets ( People who consume products)

Device a Clear Targeted Development Programme

� How many Villagers must be on a developmental

Programme Nationally, Provincially & Locally

� By when should they be Commercially viable

� Clear number targeted number per Province/ Village

over the next 5 years

POTENTIAL COMMODITIES

POTENTIAL COMMODITIES

COMMODITYCOMMODITY COMMODITYCOMMODITY

Horticulture Horticulture (Veggies, flowers, (Veggies, flowers, mushrooms etc.)mushrooms etc.)

Red meatRed meat

PoultryPoultry Essential oilsEssential oils

Dairy productsDairy products BiofuelsBiofuels

PiggeryPiggery FeedsFeeds

GrainsGrains Fish farmingFish farming

Strategic Model For Emerging Producers -Supply Chain

Strategic Model For Emerging Producers -Supply Chain

Farmers Farmers FarmersFarmers Farmers Farmers

Village Integrated Products &

Processing Marketing Co op

Integrated Livestock& Feeds Co op

Horticulture &Wool Wash

Integrated Foods & Wine Co op

Village /Small Holder Farmers

Products

Markets(Poultry)

Abattoir

Poultry Farmers Company PoultryFarm

Day old chicks Poultry Feed

Company Feed mills

Supply contract

Supply contract

Oil Market

Inputs

Opportunities

Commodity Associations

Soya BeansCassavaJatropha

SunflowerGrains

Supply contract

Production Unit 1

(PU1)

Production Unit 2

(PU2)

Production Unit 3

(PU3)

Production Unit 4

(PU4)

Production Unit 5

(PU5)

Production Unit 6

(PU6)

Production Unit 7

(PU7)

Production Unit 8

(PU8)

Production Unit 9

(PU9)

ABATTOIR

Retail Outlet 1

(RO1)

Retail Outlet 2

(RO2)

Retail Outlet 3

(RO3)

Retail Outlet 4

(RO4)

Retail Outlet 5

(RO5)

Long-term Expansion Opportunities

Feed mill(70% of Input Cost)

Hatchery(20% of Input Cost)

Tweeling

Reitz

Warden

Lindley

Senekal

Bethlehem

Fouriesburg

Clarens

Harrismith

KestellPpt0000003 SA.LNK

• At Each of the Towns • One or more Broiler House• Municipal or Private land• Serves as Centre of that Municipal area

Broiler Production Unit (Base Unit)• Private Owned• Capacity of 40 000 Broilers• Also serves as Training Facility for Small

Scale Farmers

+• Additional 12 Small Scale Units (SU) for

each Base Unit• Private owned by small scale farmer• Produce 3500 bird per cycle each• Same placement and slaughter week as

base unit• Secured by base unit•

EACH TOWN

2 BU + 12 SU = Production Unit (PU)

(PU1)

(PU2)

(PU3)

(PU4)

(PU5)

(PU6)

(PU7)

(PU8)

(PU9)

ABATTOIR

Retail Outlet 1(RO1)





Create 700 JOBS Create 350 JOBS Create 180 JOBS

Create Rm 12 PBIT pa Create Rm 16 PBIT pa Create Rm 17 PBIT

Create 117 Stabile FarmingOwnerships Opportunities

Create a CombinedOwnerships in termsof shareholding

Create 5 LargeJoint OwnershipOpportunities

Create SustainableIncome for more than4000 Family members



Ppt0000003 SA.LNK

MARKETS

PRIVATE SECTORPRIVATE SECTOR

PARTNERSHIPPARTNERSHIP

FINANCIAL INSTITUTIONS

INPUT SUPPLIERS

GOVERNMENT GOVERNMENT

PARTNERSHIPPARTNERSHIPTECHNICAL SUPPORT

CONDUCIVE POLICY

ENVIRONMENT

INFRASTRUCTURE

DEVELOPMENT

FINANCIAL SUPPORT

PUBLIC COMPANY /CO-OP

Marketing

Production (to augment smallholder production)

Training & Mentorship

Integrated Market- Driven Partnerships

COMMODITY COMMODITY

ASSOCIATIONASSOCIATION

PRODUCTION CAPACITY

DEVELOPMENT

SUPPLY MARKET CONTRACTS

SAVINGS CLUBS

Loans and Grants from Different Financial Houses

Budget R5B to Transform Emerging Farmers from Subsistence to Commercial Farming

• Implementation Priorities•Dev of New Micro-Enterprises• Identify scarce skills & prioritise skills needed • Accelerate Emerging Farmer training• Focus skills development to promote employability & livelihoods based on agricultural • Develop critical skills for new entrants• Improve quality and relevance of training provision

Project: AGRICULTURAL TRANSFORMATION 2017: Role Players’Contributions?

Project: AGRICULTURAL TRANSFORMATION 2017: Role Players’Contributions? National Government

Contribute:• Budget: __________ • Activity: __________

Provincial GovernmentContribute:• Budget: __________ • Activity: __________

District CommitmentContribute:• Budget: __________ • Activity: __________

NepadContribute:• Budget: __________ • Activity: __________

Intern. Donor AgenciesContribute:• Budget: __________ • Activity: __________

Agri Coop EnterprisesContribute:• Budget: __________ • Activity: __________

Dept Lnd/ Rura DevContribute:• Budget: __________ • Activity: __________

S A Dev AgenciesContribute:• Budget: __________ • Activity: __________

Dept Trade &IndustryContribute:• Budget: __________ • Activity: __________

Development Bank S AContribute:• Budget: __________ • Activity: __________

Dept Agr-Fishery & Fortry


Co operative Bank

Control/ Accountability• Budget: __________ • Activity: __________

Commercial Banks


PROJECT

MANAGEMENT

SKILLS Seta

Seta

Nafu STRATEGIC GOALS

FOR THE AGRICULTURAL SECTOR

ATTAIN FOOD

SECURITY

IMPROVED MARKET

ACCESS FOR SMALL AND

LARGE SCALE FARMERS

IMPROVE PRODUCTIVITY TO ATTAIN ANNUAL

AGRIC.GROWTHRATE

HARNESS THE ROLE OF

SCIENCE AND TECHNOLOGY

FOR AGRIC. AND FOOD

PRODUCTION

ACHIEVE EQUITABLE

DISTRIBUTION OF

WEALTH

PARTICIPATION OF

BLACK FARMERS IN

ERADICATING

POVERTY

TARGETED OUT COMES FOR

A SUSTAINABLE

AGRICULTURE SECTOR IN MOHOKARE

YES IT IS TRUE

“TOGETHER

WE CAN

DO MORE”

Documents

The Contribution Of Emerging Farmers To Rural Development ... · 2 National Roads Growth Centres Deep 2 nd Rural Economy Corridors N14 N10 N10 N10 N1 N1 N1 N1 N1 N2 N2 N2 N2 N3 N3