AGRICULTURAL DEVELOPMENT STRATEGY



AGRICULTURAL DEVELOPMENT STRATEGY

WATERBERG MUNICIPALITY

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REPORT 1:

STATUS QUO, POLICY ANALYSIS

AND

OPPORTUNITY IDENTIFICATION

(DRAFT FOR DISCUSSION)

August 2005

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AGRICULTURAL DEVELOPMENT STRATEGY

REPORT 1

CONTENTS Page

1. INTRODUCTION 4

1. Orientation 4

2. Methodology 4

1. Literature review 5

2. Identification of relevant role players 5

3. Interviews and field verification 6

4. Telephonic interviews 6

2. STATUS QUO: PRIMARY PRODUCTION IN WATERBERG 6

Table 1: Bela-Bela 7

Table 2: Mookgophong 8

Table 3: Modimolle 9

Table 4: Mokgalakwena 10

Table 5: Thabazimbi 11

Table 6: Lephalale 12

Table 7: Waterberg 13

1. Trends 14

2.1.1 Cropping 14

2.1.2 Horticulture 14

2.1.3 Livestock 15

3. POLICY ASSESSMENT 16

1. National micro-economic reform strategy 16

2. Limpopo growth and development strategy 17

3. Limpopo agriculture and forestry summit 21

4. Limpopo agricultural development plan 24

5. Waterberg district LED 25

1. Bela-Bela 27

2. Mookgophong 28

3. Modimolle 29

4. Mokgalakwena 30

5. Thabazimbi 31

6. Lephalale 32

4. OPPORTUNITY IDENTIFICATION 34

Figure 1 : Meat Cluster - Meat production and processing 36

Figure 2 : Regional/Zone Cluster - regional production and marketing 37

5. RECOMMENDATIONS 38

BIBLIOGRAPHY

ANNEXURE 1 : Proposed business planning approach

AGRICULTURAL DEVELOPMENT STRATEGY

WATERBERG MUNICIPALITY

REPORT 1: STATUS QUO, POLICY ANALYSIS AND OPPORTUNITY IDENTIFICATION

DISCUSSION DOCUMENT

1. INTRODUCTION

Following the identification of a need to formulate a coherent strategy for agriculture in the district, the Waterberg District Municipality appointed Womiwu Rural Development, assisted by Glen Steyn and Associates, to help compile a logical plan to lead agricultural development for commercial and emerging farmers, “further contributing to economic growth, job creation and improved quality of life of our citizens.” (PGDS, 2005).

1.1 Orientation

Waterberg is the largest of six district, and cross border councils making up the Limpopo province. It has over a third of the provinces land area (14 million hectares), and responsible for almost 30% of the provinces agricultural activity, including 15% of the provinces animal production. The Waterberg is made up of six local municipalities and is classified as 90% rural. Compared with the rest of the province Waterberg is unique as it is encompasses little former homeland area, has an internationally acclaimed biosphere making up 15% of its total area. This creates its own set of challenges and opportunities.

1.2 Methodology

It is proposed that the Agricultural Development Strategy be prepared in five steps:

i. Status quo;

ii. Policy assessment;

iii. Opportunity identification;

iv. Scoping reports; and

v. Implementation strategy.

This report covers steps one to three – Status Quo, Policy Assessment and Opportunity Identification.

Establishing the status quo lays the foundation on which to build the strategic plan. The integrity of this data is important and a double pronged approach was adopted to build a ‘solid data foundation’. Data was collected from a variety of studies, reports and other data bases. Considerable information exists on the agricultural sector in the province. Numerous studies have been conducted in the primary sectors, especially by academic institutions and as part of the Provincial Governments planning process. Most of the major commodities have some capacity for reporting on producer performance and useful primary production data is regularly generated by the Crop Estimates Committee.

The second prong, as explained below, was to verify data and fill any gaps by direct contact with industry roleplayers and representatives.

1.2.1 Literature review

Appropriate data were sourced and collected either by means of electronic data scanning on the internet or data basis of institutions like NDA, StatsSA, SAMIC, Citrus Growers’ Association SA, Cotton SA, Potatoes SA, SA Groundnut, Sunflower, Wheat and Soya Bean Forums. Specific information was collected from the Crop Estimates Committee and the South African Grain Information Service (SAGIS) with regard to historical and projected information related to plantings of various crops, yields and price estimates. Data is usually more readily available on a Provincial basis. Where necessary some information was extrapolated from existing data and wherever possible this was tested and verified tested by personal interaction with industry roleplayers, sector leaders and organization representatives. Travel and site visits to the area to conduct ground-truthing exercises etc. A list of sources and personal interviews is included in the annexure.

1.2.2 Identification of relevant role players

The two major role players in Organized Agriculture in the Limpopo, Agri SA (Limpopo) and the Limpopo District Agricultural Union were contacted with the purpose of identifying prominent commercial farmers or leaders in the various farming communities to assist with the verification process. Individuals were identified in the Waterberg District, representing the total spectrum of primary production activities. Commercial farming activities conducted outside the framework of Organised Agriculture were identified on an operational basis.

1.2.3 Interviews and field verification

A range of farmers, commodity traders, production managers (NTK & MGK), and other relevant role players in all the areas of primary production were interviewed to verify crops, areas under cultivation, marketing strategies, trends and opportunities in the agricultural sector in the Waterberg District. Interviews were, where possible, conducted in a one-on-one basis and related to the specific area of operation. Where insufficient information existed, extrapolation of planted areas for various crops and yields pertaining to the specific district had to be done. This was done in a circumspect manner.

1.2.4 Telephonic interviews

Often readily available information was either insufficient or incomplete to provide an accurate picture of the industry or farming activity. Individuals were then identified and telephone interviews conducted to source or validate particular information.

2. STATUS QUO: PRIMARY PRODUCTION IN WATERBERG DISTRICT

Using the methodology described above data was collected for the major agricultural enterprises in the Waterberg area. This has been presented in a format which estimates the anticipated size of activities (eg hectares), expected production levels, associated values and employment. Linked to each enterprise are a statement on recent trends and an opinion regarding a likely future scenario. Information regarding land claims, and LRAD projects is also included. As mentioned earlier, Waterberg District comprises little former homeland area. As such by far the majority of agricultural production taking place at present is by commercial farmers, with little contribution from the emerging agricultural sector.

Data is presented in tabular format on a local municipality basis, and aggregated on a district basis.

Table 1: Bela-Bela - Estimated agricultural production for 2004/5

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Restitution projects

* Letlhakaneng 64ha smallholdings restored

* Moretele 1 966ha Cattle project restored

* Maureen 62ha Residential negotiations

* Bela-Bela 1 475ha ? Negotiatons

* Ramorula Community ? ? Further research

Table 2: Mookgophong - Estimated agricultural production for 2004/5

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Restitution projects

* Rooipan 1 484ha smallholdings restored

* De Hoop 678ha smallholdings negotiations

* Madisha 1 671ha agriculture negotiations

* Ga Aphane 1 239ha cattle & cropping negotiations

Table 3: Modimolle - Estimated agricultural production for 2004/5

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Restitution projects

* Modimolle 12 491ha agriculture, game and tourism partnership proposals

Table 4: Mokgalakwena - Estimated agricultural production for 2004/5

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Restitution projects

* Mabjaneng 3 706ha reserve business plan being compiled

* Legata 1 671ha reserve strategic partner secure

* Lebelo 3 600ha agriculture discussion with CSIR

* Koka Matlou 2 955ha cattle proposal from Strategic Partner

* Seema 1 848 cattle resolution of boundary dispute

* Lehutjo 838ha negotiations

* Molekwa further research

* Sindane 3 984ha negotiations

Table 5: Thabazimbi - Estimated agricultural production for 2004/5

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Restitution projects

* Baphalane 1 884ha cattle and lodge business plan being compiled

* Sebilong further research

* Motihabatse Community further research

* Mabula Mosima further research

Table 6: Lephalale - Estimated agricultural production for 2004/5

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Restitution projects

* Mosima 9 607ha reserve proposals invited

* Tale Ga Morudu 8 628ha reserve, cattle planning

* Morongwa 3 752ha game partially settled

* Motse further research

* Mokoena Community further research

* Majadibodu further research

* Matabane Community further research

* Mathole family further research

* Mokitlane further research

Table 7: PRODUCTION STATISTICS - WATERBERG DISTRICT, 2005

[pic](Compiled from various sources. See references.)

1 STATSSA, Census 2001.

2.1 Trends

Since the general deregulation of the agricultural industry in the nineties commercial agriculture has had to undergo significant transformation. This has affected virtually every facet of agriculture. Not only have farmers had to re-assess their traditional enterprises, make better use of their resources and become involved in value adding and marketing to a much greater degree. The poor producer prices, over the last few years, have also but the sector under financial pressure.

1. Cropping

Although named the Waterberg the district is actually classified as a semi-arid area with poor water resources. For crop farmers there have been dramatic changes in many commodity prices leading to changes in cropping patterns. Crops such as cotton, tobacco, maize and sorghum have been badly affected by low international prices and over production and plantings have been reduced significantly, often with negative financial and employment implications. Alternative crops like sunflower, wheat, soya beans, groundnuts and paprika are all internationally traded commodities and thus sensitive to the rand/dollar exchange rate. These crops therefore are limited substitutes. Lucerne appears to have some potential, especially with the movement towards game ranching, although demand is sensitive to seasonal conditions. Potato production also has some potential although entry is constrained by high input costs. In general there is little cropping that takes place without some form of irrigation. With demand on water resources increasing consistently crop farmers are going to have to examine their returns on the use of water in future.

2.1.2 Horticulture

The horticulture enterprises appear to fair slightly better. Although table grape planting have declined and exports are highly competitive, citrus and the stone fruit production is expanding. Carefully selected micro climates in the district are highly suited to quality production allowing for high export percentages and carefully managed marketing windows overseas. Citrus, for example is a large consumer of water, but has an equally large return, especially on exports. Indications are that this expansion will continue.

Vegetable production is widespread and vibrant. Producers range in size but tend to operate around urban areas on smallholdings and plots. Markets vary just as widely – from end users to the Fresh Produce Markets of Johannesburg and Pretoria. Due to the scattered nature of production, markets and ease of entry and exit, it is difficult to obtain accurate production estimates. There do appear to be some characteristics of the industry. There is little co-ordination of supply and marketing, and with the exception of packaging, little value adding or processing.

2.1.3 Livestock

Intensive livestock production has increased in the area over the last few years. In Bela Bela a day-old broiler chick facility has been established, supplying day-olds to Mpumalanga and Limpopo. The broiler rearing facility, also in Bela Bela has expanded. This industry is highly competitive and subject to small margins, making opportunities for small-scale producers limited. Egg production is fairly stable with a couple of larger producers and several smaller producers. Although there is one large producers who dominates production in the province there is some opportunity for smaller producers who can supply local markets without incurring significant transport costs.

Pork production remains stable with little opportunity for expansion, especially for exports. Margins are also small and therefore not well suited to small scale production. There are several small dairies in the district that supply to local consumers and distributors in Polokwane. Although the area is regarded as too warm for milk production the variable geography of the district may allow for a number of smaller-scale dairies.

The crocodile industry has become well established in recent years. There are several producers but information on production and profitability is difficult to access. It appears that this may be an area of expansion in the future, especially for existing producers.

The cattle and game industry is undergoing significant transformation. Lead by water constraints, areas previously under dryland and irrigation are being consolidated and converted for extensive livestock production. Similarly other former cultivated land and livestock grazing is being converted to game ranching and eco-tourism. Even within the game ranching industry owners are diversifying into lodges and eco-tourism. This general trend has been encouraged by the establishment and development of the Waterberg Biosphere. This trend is expected to continue.

3. POLICY ASSESSMENT

Development is about introducing changes to improve the local economy, and through this, the well-being and quality of life of our communities. These changes come about from specific activities that have been carefully considered as part of an overall strategy to influence change in a certain way. This strategy should, in no small way, be guided by broader guidelines and plans. These broader guidelines ad plans come in a number of forms, but can be referred to aggregately, as policy. It is generally regarded that government, in its different forms, sets policy through a variety of means, much of it by participative and consultative means. A number of policies have the potential to influence agricultural strategy at the District Municipality level, especially as donor, public and ratepayer resources will be applied to achieve the strategy objectives. The following policies and strategies have been identified as having potential influence on the agricultural strategy of the Municipality.

3.1 National micro-economic reform strategy

At the present economic growth rates, government will not be able to achieve its job-creation and poverty reduction objectives. The sound macro-economic policy that is in place will therefore, have to be augmented with a micro-economic reform strategy. For this purpose, government has selected the following five focus areas:

• Agriculture:

Government and the organised agriculture sector, including established and emerging farmers have jointly developed a strategic plan for agriculture. It gives priority to high value-added and export-orientated commodities and also promotes competitive supply chains.

• Cultural Industries:

Government is taking action to promote music, film and television, audio-visual services, publishing and crafts.

• Exports:

Government is promoting the key drivers of export performance, including improved supply chain management and logistics. The priority sectors in this focus area that are relevant to Limpopo are agro processing, chemicals, crafts and mining, metals and mineral beneficiation.

• Information and Communication Technology:

This focus area includes implementation of the e-commerce legislation and development opportunities in on-line processing and call-centres.

• Tourism:

Government is prioritising joint marketing strategies to six major tourism markets, new trans-frontier parks and new non-traditional tourism markets in Africa, China and the Middle East.

Strategic development guidelines and resources with regard to the national micro-economic reform strategy of the Department of Trade and Industry need to be incorporated into the Limpopo Growth and Development Strategy. Links between the national micro-economic reform strategy and the LGDS are yet to be forged.

3.2 Limpopo growth and development strategy

The Limpopo Growth and Development Strategy (LGDS) is to adopt the development cluster value-chain approach, as a vehicle to raise the international competitiveness and investment rating of the Province, to combine public and private sector contributions to development and to align the interventions of various public development institutions for greater impact.

Clusters are critical masses, spatially concentrated and of unusual competitive success in a particular field. They encompass an array of linked industries, from suppliers and providers of infrastructure to down-stream activities and service organisations. They also include training, research and governmental institutions. Competitive advantage within these clusters is driven not so much by the source and cost of inputs as by the productive use of inputs, which requires continuous innovation.

Middle and low-income countries have traditionally competed in the world market with cheap labour and natural resources. In order to move beyond this stage, the development of well-functioning clusters is essential.

Promoting cluster formation will require policy attention to issues such as:

➢ Improving education and skills;

➢ Provision of essential infrastructure;

➢ Building capacity in technology;

➢ Opening access to capital markets, and

➢ Improving institutions / institutional efficiency.

Once a cluster begins to form, a self-reinforcing cycle promotes its growth. Clusters improve competitiveness by increasing productivity, by driving the direction and pace of innovation and by stimulating the formation of new business. It is therefore, the perfect context, within which to develop a strategy to promote economic growth, to create sustainable opportunities for local economic development and SMMEs; and to offer acceptable returns for investments in development.

In practical terms, it means that the value-chains of the following two emerging agricultural development clusters have to be analysed. The five non-agricultural clusters that are proposed in the LGDS are not included in this analysis. It should be noted, that these are by no means the only potential clusters within the various Districts. Other development clusters should also be identified and promoted over time, but it is important to start with a manageable number in order to achieve the momentum required to extend the value-chains of each cluster.

Fruit and Vegetable (Horticulture) Cluster.

Expansion of current production and the Memoranda of Understanding for new fruit and vegetable processing facilities that were signed at the Investor Conference (August 2003) should form the anchor projects for this cluster. The cluster value-chain should be extended up-stream to include the local production of inputs for the growing of selected fruit and vegetable commodities, such as plant material production, nurseries, pesticides and fertilisers (including organic fertilizers). The value-chain down-stream includes processing, packaging and exporting.

Public sector interventions include the commercialisation of state farms, rehabilitation of community irrigation schemes, skills development among emerging farmers and the encouragement of public-private partnerships with established commercial farmers. Improvements to logistical capacity and investment in plant biotechnology will also contribute significantly to increased competitiveness of this cluster.

Red and White Meat Cluster on all the corridors

This cluster should build on current and emergent cattle and poultry production, as well as animal-feed production, and should be expanded to incorporate under-utilised facilities such as state farms. Up-stream development opportunities include sorghum production by emergent farmers (a major substitute for maize), as a strategy to raise the competitiveness of animal-feed and meat production in Limpopo.

Down-stream activities should include improved efficiencies at abattoirs, as well as the packaging and distribution supply chain. The growing trend towards game farming in the Province could lead to the lucrative venison market being incorporated into this proposed cluster. Business plans that have recently been compiled for increased goat production in Limpopo also form part of this cluster.

Public sector interventions should include the commercialisation of state farms, skills development among emerging livestock farmers and the encouragement of Public-Private-Partnerships with established commercial farmers.

The following methodology was adopted for the analysis of the cluster value-chains since April 2004.

1. Illustrate the cluster value-chain graphically with the main production activity in the centre. Quantify the economic value and impact of the current main activity. Illustrate and quantify the existing links up-stream, in terms of inputs and services to the main production activity, and down-stream, in terms of value-adding activities.

2. Identify opportunities for new production, expansion of existing production and for efficiency improvements along the value-chain. Illustrate links with neighbouring provinces and countries.

3. Ring fence opportunities for SMME and for poverty reduction within the cluster development opportunities identified in step two above.

4. Identify infrastructure and logistical improvements that could increase the competitiveness of the cluster value-chain.

5. Identify skills development and institutional improvements that could increase the competitiveness of the cluster value-chain.

6. Illustrate the entire cluster value-chain in GIS format.

7. Incorporate the cluster value-chain and its development opportunities (investment, SMME, poverty reduction, infrastructure, as well as skills and institutional development) in the district and municipal IDPs.

8. Reflect the role of national and provincial departments regarding each cluster value-chain in the departmental strategic plans and budgets.

9. Prepare and implement business plans for each opportunity as part of the district and municipal LED processes. (See Annexure 2 for a proposed business planning approach)

10. Establish a mechanism to monitor the progress and development impact of each cluster value-chain.

(A process of integrated planning involving planners from local, provincial and national government, as well as outside stakeholders, was applied in developing the various cluster value-chains).

Cluster value-chain analyses were at an advanced stage by August 2004 and were discussed with provincial departments, districts and municipalities. These analyses also formed the basis for Sector Summits that were held between August – September 2004, involving private sector participants in the agriculture, mining and tourism sectors. The competitive cluster value-chain approach has been adopted and is supported by all stakeholders. The following resolutions were taken to inform the way forward:

General resolutions

➢ Working groups comprising government, labour and business should be established for each of the proposed cluster value-chains, in order to accelerate the cluster development process. Relevant districts and municipalities should be represented on the cluster working groups. These cluster working groups should have access to project management capacity and should be co-ordinated by an executive provincial cluster working group;

➢ Infrastructure, including water, transport, electricity and ICT should be upgraded to improve integration, productivity and competitiveness within and across each cluster;

➢ Education and training institutions should provide skills development programmes that contribute to improved productivity and competitiveness within each cluster;

➢ Research and development should be increased to promote new product (opportunity) development and to improve competitiveness of the proposed clusters;

➢ Investment promotion, LED project identification and provincial marketing should reflect the cluster priorities;

➢ Business plans are required for each new development opportunity within every cluster and these business plans should reflect the issues raised above, as well as the proposed project contribution to job-creation, to SMME promotion, to gender issues and to Black Economic Empowerment;

➢ These business plans should be incorporated into departmental strategic plans and IDPs at the district and municipal levels, and

➢ In anticipation of the financing strategies that will have to be part of the business plans, a workshop is required to identify and deal with the issues that constrain access to finance in all sectors and across the entire spectrum of business activity from SMME to major corporate projects. The entire spectrum of financing institutions would therefore, need to participate in the workshop and in its resolutions.

3.3 Limpopo Agriculture and Forestry Summit

SUMMIT OBJECTIVES

• Commitment from the broader stakeholders towards Provincial Growth and Development Strategy

• Buy-in for building economies through the industrial cluster approach

• Ensure commitment by industry towards relocation to Limpopo in support of (input/output) opportunities pertaining to the clusters

• Ensure appropriate support by Government

• Facilitate continued stakeholder co-operation towards implementation of various projects

Strategic Objectives

- Creation of sustainable employment

- Ring fencing SMME opportunities

- Enhance economic growth

- Poverty reduction

- Increased investment and exports

- Identification of infrastructure/ logistics needs and improvements

SUMMIT RESOLUTION FOR LIVESTOCK:

• There must be Improvement of training and skills transfer through extension programmes, structured training and mentoring

• There must be Improvement of resource conservation especially water.

• There must be improvement of market access mechanisms

• AGRI-BEE must be promoted

• Infrastructure development mainly by government, should be fast tracked

• Farmer Organisations must be strengthened

• There must be more focus on the business side of Agriculture

• Developing farmers need programs to ensure they can participate all along the value chain.

• The formation of a Poultry Association in Limpopo

AND THAT

• Co-ordination between all levels and departments in government is needed and a cluster working group around Livestock and another around grains, should be created. The tasks of these groups in the short term will be as follows:

o To evaluate, plan and implement essential water, fencing, electrical and other necessary infrastructure.

o To review commodity pricing linked to trade protection for commodity products

o To set in place a program for all livestock to improve the genetic stock of the stock

o To set in place Joint Ventures between commercial farmers and small farmers

o To re-introduce the system of extension services support for small farmers

o To educate rural and communal farmers around the shift from viewing livestock as wealth, to viewing livestock as productive assets

o To optimise the goat industry in Limpopo

o To facilitate improved pig production in the province so that imports can be stopped.

o To assist in the fast tracking of the Land Reform process.

o To develop and support the implementation of skills development all along the value chain for emerging and new farmers.

o To support the set up of an Advice Call Centre for developing farmers.

SUMMIT RESOLUTION FOR FIELD CROPS:

Same as that resolved for livestock, with the addition of:

o Specific plans for access to Water

o Specific pro active plans with deadlines and targets for access for women to agriculture since in Limpopo most of the agriculture is undertaken by women.

o Champions are needed for all the initiatives.

SUMMIT RESOLUTION FOR STREAMLINING THE SUPPLY OF AGRICULTURAL INPUTS

• There must be linkages between supply issues and funding mechanisms for resource poor farmers. This will require financial engineering to develop case studies on 2 or 3 existing projects such as LRAD, Greenfields, Land Restitution.

• These case studies should be discussed with all parties with the aim of addressing market integration issues in a round table discussion with business and government.

• As the outcome of this process a Financial Summit should be held before July 2005 to present the outcomes of the case work as well as input from financiers on how to tackle the issues.

SUMMIT RESOLUTION FOR HORTICULTURE:

• There needs to be a plan and a mechanism for continuous information sharing between established and developing farmers.

• Extension officers must be made available again to assist developing farmers.

• Other types of partnership models must be explored to advance the agricultural sector, for example, Management buy outs. The model must review the entire value chain.

• A comprehensive analysis of the various value chains must be undertaken so that access to markets can be addressed.

• Government must seek mechanisms for facilitate market access for developing farmers.

• Agricultural processing done outside the province must be relocated inside the province and a specific plan of action must be developed for this and presented at the Provincial summit.

• Government must fast track the privatisation of tribal land and set itself tough targets in this regard.

4. Limpopo Agricultural Development Plan

STRATEGIC PLAN FOR 2005/6

Key strategic programme areas:

i. Restructuring of state assets through RESIS and ARDC

ii. Promotion and implementation of AgriBEE

iii. Succession planning based on youth infusion in the agricultural sector

iv. Development of appropriate research based agricultural technologies

v. Redistribution of agricultural land, capacitating beneficiaries and promoting sustainable enterprises

vi. Poverty alleviation through food security and nutrition

vii. Establishment of reliable communication technology

viii. Formation of farmer based commodity associations

ix. Provision of advisory support

x. Promotion of sustainable land use management

xi. Animal production, health improvement and eradication of animal disease

xii. Human resource development

Support government objectives of:

• Growing the economy

• Job creation

• Economic empowerment

• Poverty alleviation

Through the following participatory demand driven/led approaches:

• Municipality focused

• Commodity based

• Value chain analysis

• Project based

Which will lead to the following key outcomes:

• Revitalisation of smallholder irrigation schemes (RESIS)

• Preparation of integrated agricultural plans

• Preparation of an appropriate mechanization support policy

• Management of agriculturally related risk

• Establishment of appropriate marketing information and statistics

• Improved food security and income generation

• Farmer support services that are accessible to clients

• Funding support that is mobilized and coordinated

• Properly managed animal health

• Land accessibility

• Tenure security for farmers on communal land

• Post transfer production support to land beneficiaries

• Efficient management and administration of state land

• Economic growth through sustainable land reform

3.5 Waterberg District LED

The Waterberg Municipality has, through a comprehensive and integrated process, developed an LED Plan for the district. The process began with the compilation of the Waterberg Socio economic Status Quo Report to provide a basis for planning. An inclusive workshop forum was held n November 2003 involving all stakeholders. This led to the establishment of various institutional structures including a LED Forum Co-ordinating Committee consisting of the Local Municipality Mayors and the District Mayor, and an LED Technical Team. Through these structures individuals and organizations were encouraged to provide inputs towards the LED Plan. Local Municipalities went through similar processes of developing their own LED strategies towards an integrated district LED strategy.

In March 2004 an LED Stategy Workshop was held to formulate the districts economic vision, mission, objectives and strategies. Sectoral workshops and meetings were conducted by LED Task Team to consult with and receive feedback from stakeholders. A final LED Plan was presented to stakeholders in May 2004 and this has since been adopted by the Waterberg Council for implementation.

The LED Plan covers a range of development aspects within a broad strategic framework. Although there are numerous specific objectives the general result of successful implementation will be the following:

• increase the district economic growth;

• reduce the level of poverty and unemployment;

• increase participation of previously disadvantaged individuals and communities in the mainstream economy; and

• develop a well established human resource capital.

Although agriculture is one of the priority sectors in the district, making up almost 30% of the province’s agricultural activity and over 4% of the GGP of the district, employing around 21% of the labour force of the district, little attention is given to the sector in the LED Plan. This is one of the reasons the Waterberg Municipality has initiated a separate exercise to develop an agricultural strategy. Each local Municipality has gone through a comprehensive exercise of compiling an Integrated Development Plan (IDP). These have been aggregated to form the District LED strategy. Although agriculture does not feature prominently some useful priorities and projects have been identified. Most are modest with little potential impact on the economy; it is, however, worthwhile identifying these as a basis for identifying some problem areas.

3.5.1 Bela-Bela

Bela-Bela makes up just 7% of the Waterberg District and in 2001 contributed less than 1% to the District GGP. With some agricultural projects like day-old chick production, broilers and crocodiles having been established in the last few years it is likely that the area now contributes considerably more to the GGP. Bela-Bela influence on the district economy, however, remains limited. This is reflected in the IDP of the local municipality. No specific agricultural projects have been identified although emphasis has been placed on job creation projects. From the map above it is clear that there are several land claims in the area which would require the attention and involvement of the Municipality.

3.5.2 Mookgophong

Mookgophong makes up 9% of the district area. It contributes over 18% to the districts GGP and 23% of the local economic activity comes from agriculture. Agricultural activity is, in no small part, responsible for this economic activity. A number of opportunities have been identified in the agricultural sector although the LED refers to only four agriculturally related activities:

a. Verifying the status of land claims and land reform projects ;

b. Improve agricultural perceptions and training to improvement employment of local labour;

c. Establish an agricultural training centre at Crecy; and

d. Dipudi (goat) project.

Various agricultural opportunities have been referred to in the IDP. These are:

i. Paprika production under irrigation;

ii. Expansion of citrus production (Nyl/Mokgalakwena);

iii. Spices (Nyl/Mokgalakwena);

iv. Granadillas (Nyl/Mokgalakwena);

v. Meat processing (Naboom);

vi. Hydroponics (Springbok flats); and

vii. Tambotie Floodlands – Game

3.5.3 Modimolle

Modimolle makes up 13% of the District area and contributes almost 7% to the district GGP. Of the economic activity around 18% results from agriculture. From the map it is clear that there are few land claims and fewer LRAD projects. Several projects and priorities have been identified for the area. These include:

i. Alma Hydroponics;

ii. Meropa vegetables;

iii. Waterberg Agricultural Training Project;

iv. Limpopo Dipudi Project (Goat abattoir);

v. LDA Leseding Poultry Project (Vaalwater);

vi. Various poverty alleviation projects – Busy Bee (aquaculture), Bokamoso (poultry) and Metsematala (vegetables);

vii. Organic vegetables and beef;

viii. Community game farm projects; and

ix. Processing of venison.

3.5.4 Mokgalakwena

Mokgalakwena makes up 12% of the district area. The area contributes 11% to the district GGP with 10,4% of the local economy attributed to agriculture. The municipality IDP identified a number of local issues needing attention. Of these the following had an agricultural bias:

i. agricultural development;

ii. tourism strategy; and

iii. labour intensive projects.

In particular two projects were identified in the LED strategy:

1. Chicken abattoir;

2. Mokamole Agricultural Farm.

3.5.5 Thabazimbi

Thabazimbi makes up 20% of the area district. It is an important contributor to the economy. In terms of agriculture almost 40% of the districts agricultural activity is generated in Thabazimbi and the sector employs 22% of the labour in the area. Although mining and agriculture are the dominant sectors, cultivation (cash crops and horticulture) is generally on the decline. The exception to this trend is hunting and eco-tourism.

In the LED various opportunities have been identified and translated into priority areas to be given attention. These are some of those identified areas:

i. Lack of erven and land for community projects (training in agriculture);

ii. Stimulate the production of horticultural products (training in agriculture);

iii. Marketing of the Waterberg Biosphere (malaria free, proximity & accessibility, safety) ;

iv. Stimulating exports to Botswana;

v. Improving the utilization of game ranches out of season (including de-bushing and feed manufacture);

vi. Game processing plant/industries (spin-off of hunting); and

vii. Encouraging the mines to buy locally.

3.5.6 Lephalale

Lephalale is the largest municipality in the district and accounts for 39% of the district. The area contributes to 26% of the district GGP while in the area, the agricultural sector makes up 30% of the local economy. This is a large area with a lot of potential. The Waterberg Biosphere plays a major role in the area and with extensive livestock and hunting, there is identified scope in the eco-tourism industry. There are a number of envisaged LED projects. Of these there are number linked to agriculture:

1. Land restitution project;

2. Tourism project; and

3. Agricultural programme

Within these projects and programmes there are a number of Limpopo Department of Agriculture, LRAD, and community projects. Those identified include:

i. De-bushing project at Shongoane;

ii. Commercialisation of D’Nyala;

iii. Marula project at Steenbokpan;

iv. Marapong Paprika project at Marapong;

v. Rooigrond commonage at Refilwe (cattle and goats); and

vi. Seed nursery at Madibaneng.

4. OPPORTUNITY IDENTIFICATION

From the data that has been gathered, and discussion with roleplayers and stakeholders in the industry, the following possible opportunities have been mentioned or may have merit for further investigation.

1. Feedlot and abattoir - Thabazimbi/Lephalale for processing (pork?), beef and venison for exports

2. Feed mill – Mokgalakwena

3. Maize and sorghum for ethanol

4. Eco-tourism – all local municipalities

5. Game lodge development for all categories – movement from cattle to hunting and eco-tourism

6. Upgrading of existing reserves

7. Game trails – horse and walking

8. Cultural eco-tourism in the Waterberg escarpment

9. Bio-sphere – involved in all eco-tourism initiatives. Expansion in the future.

10. Specialized horticulture – essential oils, organic farming, herbs and spices, wild flower production/harvesting (wide variety of micro-climates in and around Waterberg)

11. Wild and cultivated nuts and nut oils

12. Bee-keeping – small farmer development

13. Foodplot development in relevant areas to supply game lodges

14. Poultry production – eggs and meat to game lodges

15. Game/cattle operations on LRAD and Settlement projects – no interest on debt

16. Guar beans – replacement field crop

17. Cassava – starch and animal feed

18. Dairy goats or small specialized cattle dairy – milk and other dairy products

19. Goat meat – young meat for export

20. Soya beans – replacement field crop and animal feed

21. Absent Farmer Syndrome – partnership with local inhabitants/communities to use under utilized land

22. Breeding of rare game species

Most, if not all, of these opportunities are in line with the guidelines as set out by the various provincial and departmental development strategies. At first glance, few of these opportunities are directly associated with rural development or in support of small-scale farmer development. Most have linkages with, or are focused on, commercial farming activities. Put in a cluster perspective, however, opportunities for small-scale farmers, LRAD and Restitution projects, and rural community initiatives become more apparent. These are presented in figures 1 and 2.

Figure 1: Cluster1 – Meat production and processing

Figure 2: Cluster 2 – Regional production and marketing

5. RECOMMENDATIONS

Based on the policy analysis and identified potential opportunities, it is recommended that focused attention be given to identifying opportunities in the following value chains:

• The horticulture value chain;

• The meat production value chain; and

• Agri-tourism value chain

These opportunities will have particular relevance to BEE opportunities and will therefore need to focus on incorporating LRAD and Restitution projects, and adjacent disadvantaged local communities.

Having identified relevant opportunities four to five scoping reports will be compiled to help identify flagship projects for the district which will have the largest economic and development impact, allowing for further expansion. [pic]

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For:

Waterberg District Municipality

Harry Gwala Street

Modimolle

0510

By:

WOMIWU Rural Development

Box 3640

Polokwane

0700

Tel: 015 297 2107

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