I ndustries Derek Donkin Subtrop Transformation Summit 17 May 2016 DEFININTION OF TRANSFORMATION Broadly speaking Transformation is increasing the participation of black people throughout the value chain in the Subtropical industries ID: 561992
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Slide1
Status of Transformation in the Subtropical Industries
Derek Donkin
Subtrop Transformation Summit 17 May 2016Slide2
DEFININTION OF TRANSFORMATION
Broadly speaking:
Transformation is increasing the participation of black people throughout the value chain in the Subtropical industries.Slide3
What are the “Subtropical Industries”?Slide4
NAMC’S ACTIVITIES REGARDED AS TRANSFORMATION
Pillar
Activities (examples)
Percentage
1. Enterprise
development
Production material/inputs
Extension services
Mentorship
Soil preparations
Accreditation (certification for accessing export markets)
Market facilitation (Assist smallholder farmers to access the markets)
Business plan development
Industries to assist black farmers to gain access to finance
More than 50%
2. Skills
development
Bursaries
Farmers and other role players in value chain
Farm workers (if motivated properly due to AgriSETA cuts)
Approximately 20%Slide5
NAMC’S ACTIVITIES REGARDED AS TRANSFORMATION ctd…
3. Employment
equity
To promote equity in the workplace
Approximately
30%
4. Management
control
Salaries for transformation managers
5. Preferential
procurement
Procuring from Black owned enterprises/businesses
(QSE’s/EME’s)
6. Socio
Economic Development
Provision of good housing, clean water, sanitation, electricity, recreation facilities and health care programmes
7. Ownership
Increase level of entitlement of Black People to participate in the Economic Interest
Slide6
Headline stats
Subtrop
industry headline stats
Avocado
Litchi
Macadamia
Mango
Total
Area under production (ha)
15 500
1 730
20 000
7 000
44 230
Annual production (t)
115 000
5000
40 000
75 000
235 000
Annual value
R1.3 bil.
R120 mil.
R3.5 bil.
R320 mil.
R5.24 bil.
Employment
±5 100
±2 400
± 8 000
±3 000
±18 500
Commercial growers
±340
±100
±500
±120
±1060
Emerging growers
±60
±30
±110
±70
±270Slide7
Black owned land under Subtrop crops
Analysis of black owned land
Commercial (ha)
Restituted (ha)
% Restituted
Communal (ha)
% Communal
Total % black owned
Avocado
15 500
984
6.3%
1 883
12.1%
18.5%
Litchi
1 730
415
24.0%
180
10.4%
34.4%
Macadamia
20 000
881
4.4%
1 036
5.2%
9.6%
Mango
7 000
2 068
29.5%
1 254
17.9%
47.5%
TOTAL
44 230
4 348
9.8%
4 353
9.8%
19.7%Slide8
Aim in transformation
Commercially viable black participation in the value chain
SAMAC’s medium term transformation
goal
:
To have 2000 ha of commercially viable, black owned macadamia orchards in the South Africa by 2025. A commercially viable black farmer is defined as one that produces 40 tons or more or at least 3 t/ha of nut in
shell.Slide9
Thank you