Agro-Processing and Agriculture value chain – Industry Development Goals and industry development strategies Pulses and Food Security Discussion Forum – NSTF 3 June 2016 Ms. U.Speirs HEAD: Agro-industry IDC
Agro-Processing and Agriculture Value Chain and Industry Development Goals Promote value adding expansionary agro processing activities to Value chain primary agricultural production that fosters economic goal transformation and inclusivity Industry A competitive processed food, beverage, and other derived product industry development that optimally utilises and develops local resources and/or regional resources goal to supply domestic demand and increase participation in international trade 2
Industry impact A globally competitive processed food, beverage, and other derived products Industry industry that optimally utilises and develops local resources and/or regional development resources to supply domestic demand and increase participation in goal international trade Measured through Increase GDP for agro- Improved trade balance for Increased levels of processing and agriculture agro-processing and employment for agro- above baseline forecasts agriculture above baseline processing and agriculture forecasts above baseline forecasts GDP Growth: Agriculture, food and beverages Trade: Agriculture, food and beverages Employment: Agriculture, food and beverages 5.0% 500 000 1 800 000 Imports 4.5% 400 000 1 600 000 Exports 4.0% R'm - Total over 5 years 300 000 1 400 000 Avg. Annual Growth (%) Balance 3.5% 200 000 1 200 000 3.0% Number 100 000 1 000 000 2.5% 0 800 000 2.0% -100 000 600 000 1.5% -200 000 400 000 1.0% -300 000 200 000 0.5% 0.0% -400 000 0 2000 to 2004 2005 to 2009 2010 to 2014 2000 to 2004 2005 to 2009 2010 to 2014 End-2004 End-2009 End-2014 3
Planned industry mpact on GDP A globally competitive processed food, beverage, and other derived products Industry industry that optimally utilises and develops local resources and/or regional development resources to supply domestic demand and increase participation in international trade goal Measured through Increase GDP for agro- Improved trade balance for Increased levels of processing and agriculture agro-processing and employment for agro- above baseline forecasts agriculture above baseline processing and agriculture forecasts above baseline forecasts GDP Growth: Agriculture, food and beverages 5.0% 5.0% 4.5% History 4.5% 4.5% 4.0% 4.0% Avg. Annual Growth (%) Avg. Annual Growth (%) 3.5% 3.5% 3.0% 3.0% 2.6% 2.6% 2.3% 2.5% 2.5% 2.0% 2.0% 1.5% 1.5% 1.1% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% 2000 to 2004 2005 to 2009 2010 to 2014 2015 to 2025 4
Planned industry impact on GDP-Cont GDP Growth: Food & Beverages GDP Growth: Agriculture 6.0% 5.0% History 5.0% 5.0% Baseline History 4.0% Baseline Target 3.3% 4.0% Target 3.0% 2.6% 2.4% 2.6% 3.0% 2.5% 2.0% 2.0% 2.0% 2.0% 1.6% 0.8% 1.0% 1.0% 0.0% 0.0% 2000 to 2004 2005 to 2009 2010 to 2014 2015 to 2025 2000 to 2004 2005 to 2009 2010 to 2014 2015 to 2025 5 5
Planned impact on Trade A globally competitive processed food, beverage, and other derived products Industry industry that optimally utilises and develops local resources and/or regional development resources to supply domestic demand and increase participation in goal international trade Measured through Improved trade balance for Increased levels of Increase GDP for agro- agro-processing and employment for agro- processing and agriculture agriculture above baseline processing and agriculture above baseline forecasts forecasts above baseline forecasts Trade balance: Agriculture, food and beverages (average per year) 80 000 80 000 67 062 70 000 70 000 59 199 60 000 60 000 50 000 50 000 R'm R'm 40 000 40 000 30 000 30 000 20 000 20 000 10 000 10 000 0 0 2000 to 2004 2005 to 2009 2010 to 2014 2025 6
Planned impact on Trade-Cont Trade Balance: Food & Bev Trade Balance: Agriculture 14 000 12 737 60 000 52 101 54 325 History History Baseline 50 000 9 000 Target 7 098 Target Target 40 000 R'm 4 322 4 000 R'm 30 000 26 060 20 000 -1 000 11 526 10 204 -1 517 10 000 -3 853 -6 000 0 2000 to 2004 2005 to 2009 2010 to 2014 2025 2000 to 2004 2005 to 2009 2010 to 2014 2025 7 7
Planned impact on employment A globally competitive processed food, beverage, and other derived products Industry industry that optimally utilises and develops local resources and/or regional development resources to supply domestic demand and increase participation in goal international trade Measured through Increase GDP for agro- Increased levels of Improved trade balance for processing and agriculture agro-processing and employment for agro- above baseline forecasts processing and agriculture agriculture above baseline above baseline forecasts forecasts Employment: Agriculture, food and beverages 1 800 1 800 History Baseline forecast Target forecast 1 592 1 600 1 600 1 400 1 400 1 296 Number (thousands) 1 161 Number (thousands) 1 200 1 200 1 080 1 068 1 000 1 000 800 800 600 600 400 400 200 200 0 0 End-2004 End-2009 End-2014 End-2025 8
Planned impact on employment - cont Employment: Agriculture Employment : Food & Bev 400 000 368 223 History 1 600 000 History 350 000 Baseline 313 676 1 352 972 1 400 000 Baseline 300 000 Target 1 200 000 Target 249 374 246 115 239 005 250 000 928 026 1 000 000 847 190 834 240 818 898 200 000 800 000 150 000 600 000 100 000 400 000 50 000 200 000 0 0 End-2004 End-2009 End-2014 End-2025 End-2004 End-2009 End-2014 End-2025 9 9
Field Crop Processing Value Chain Valued at R54bn 10
National Objectives related to the Field Crop Processing Value Chain 1. Increase the primary production of soy beans, sorghum and barley largely to: • Encourage further local production of soy beans to reduce importation soy bean and soy meal; • Stimulate local production of sorghum in support of the emerging Bio-fuels industry; and • Stimulate local production of barley in support of the malting industry. 2. IDC to partner with processors to support emerging farmers to grow into commercial scale. 3. Support the development of storage facilities in suitable rural areas. 4. Support the development of new, disease resistant and adaptable varieties of seed. 11
Field Crop Processing Overview • Description The industry includes the following sectors: maize, wheat, sugar, sunflower seeds, soya beans, tobacco, barley, sorghum and others • Encouraging the primary field crop production for processing in South Africa. • Support and Develop Emerging Farmers • SA only self-sufficient with regards to maize and net importer of others. • Contribution to industry Still to be determined development goals • Constraints and challenges in High Input Costs • the industry Dominated by large scale commercial farmers • Cheap Imports • No subsidies to support the primary production • No finance and skills development for emerging black farmers • Uncertainty on land policy • Access to water rights • External requirements for Clarity / finalisation of agricultural and policy • success Lower inputs costs or provision of subsidies • Lowering the cost of financing • Promulgation of the National Bio-Fuels Implementation Strategy • Requirements for industry Lower cost of financing / Special Schemes • interventions from within IDC Influence government to provide subsidies and incentives. • Lobby for and/or provide grant funding • Influence national policy • Support and funding industries that lower the cost of farming inputs Investment required from IDC R 2-5 billion 12 over 10 year period
Game changing opportunities – Field Crop Processing VC1 Critical Industry Outcomes Outcome Measured by Baseline • • Reduce the cost of inputs Tracking of fertilizer, fuel and To be determined electricity costs. • • Increase production hectares Increase in hectares Soy 680 000 ha • Sorghum 70 500 ha • Barley 85 125 ha • • Improve market access Less reliance on large Co-Operatives To be determined to purchase produce. • • Reduction of Imports of Soy Cake Tons imported 600 000 tons • • Support research and development Increase yield See above • • Development and Support of Investment To be determined emerging black farmers • • Building of Storage Facilities Growth in Storage Capacities To be determined 13
Value chain mapping – Field Crop Processing 14
Soyabean as example • Financial intervention in production will improve operating capacity at processing level, in turn putting downward pressure on the prices of both final product and that of the by-product for the benefit of consumers and related industries such as poultry. 15 15
Soyabean complex 16 16
Game Changing Opportunities • Investment to increase primary soya beans production; • Policy intervention with a view to increase domestic wheat production (SA a net importer); • Finalisation of the biofuel industry direction to unlock value within sorghum value chain • Partnerships with the beer companies operating in SA with regards to barley productions 17 17
Horticulture Value Chain Valued at R59bn 18
Recommend
More recommend
