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AGRICULTURAL DEVELOPMENT STRATEGY

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					               AGRICULTURAL DEVELOPMENT STRATEGY
                                   WATERBERG MUNICIPALITY




                                        REPORT 1:

                          STATUS QUO, POLICY ANALYSIS
                                      AND
                           OPPORTUNITY IDENTIFICATION

                                  (DRAFT FOR DISCUSSION)

                                        August 2005




For:                                                        By:
Waterberg District Municipality                             WOMIWU     Rural Development
Harry Gwala Street                                          Box 3640
Modimolle                                                   Polokwane
0510                                                        0700
                                                            Tel: 015 297 2107
                 AGRICULTURAL DEVELOPMENT STRATEGY
                                                     REPORT 1
CONTENTS                                                                        Page
    1.         INTRODUCTION                                                        4
         1.1       Orientation                                                     4
         1.2       Methodology                                                     4
               1.2.1   Literature review                                           5
               1.2.2   Identification of relevant role players                     5
               1.2.3   Interviews and field verification                           6
               1.2.4   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
         2.1       Trends                                                        14
               2.1.1        Cropping                                             14
               2.1.2        Horticulture                                         14
               2.1.3        Livestock                                            15


    3.         POLICY ASSESSMENT                                                 16
         3.1       National micro-economic reform strategy                       16
         3.2       Limpopo growth and development strategy                       17
         3.3       Limpopo agriculture and forestry summit                       21
         3.4       Limpopo agricultural development plan                         24
         3.5       Waterberg district LED                                        25
               3.5.1   Bela-Bela                                                 27
               3.5.2   Mookgophong                                               28
               3.5.3   Modimolle                                                 29



Waterberg Agricultural Strategy                  2               Report 1: Discussion document
              3.5.4    Mokgalakwena                                                             30
              3.5.5    Thabazimbi                                                               31
              3.5.6    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




Waterberg Agricultural Strategy             3                                   Report 1: Discussion document
                 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.


Waterberg Agricultural Strategy                   4                                       Report 1: Discussion document
         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.




Waterberg Agricultural Strategy                  5                                       Report 1: Discussion document
         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.




Waterberg Agricultural Strategy                  6                                      Report 1: Discussion document
Table 1: Bela-Bela - Estimated agricultural production for 2004/5




                                                  Bela-Bela
                                                                                                Estimated    Estimated       Employment
                                                                    Total                       Production   Revenue         Full-time job
    Cash & Field Crops:           unit                              Area             Units        (2005)      R '000          equivalent
            Cotton                  ha                 0                     0           ton           7 089   15 597               0
            Sunflower               ha            15 000                15 000           ton          15 750   27 232             497
            Maize                   ha             4 625                 4 625           ton          15 401    9 241             438
            Wheat                   ha             1 400                 1 400           ton           4 270    6 806             111
            Sorghum                 ha            12 000                12 000           ton          30 960   27 864            1 136
            Watermelons             ha               160                   160        melons         400 000    2 000              24

    Horticulture:
             Grapes                  ha                        15          15          4.5kg         69 210     1 038             20
             Citrus                  ha                       200         200             mt          7 000    17 500             521
             Peaches                 ha                        92          92             mt          2 760     6 623             106
             Vegetables              ha                       850         850             mt         21 455     3 970             322

    Livestock:                                            Total
            Eggs                  layers          40 000 40 000                        doz.          973 333    4 623             10
            Chickens              doc/week       150 000 150 000                       DoC         7 800 000   19 500             46
            Broilers              birds/week      10 000 10 000                          ton         795 600    7 558             10
            Pork                   sows            3 600   3 600                         ton           5 040    5 796             180
            Dairy                  l/day           2 200   2 200                        litre        803 000    1 646             15
            Cattle                 head           31 000 31 000                          ton           3 100   27 900             186
            Game                   1000ha         120.52     121                          ha         120 520   400 000            482
            Crocodile                ♀               200     200                      ♀                  200    8 000             10

                  1
    Employment                                   3 234                   3 234                                                   4 114



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




Waterberg Agricultural Strategy                                     7                                              Report 1: Discussion document
Table 2: Mookgophong - Estimated agricultural production for 2004/5




                                                Mookgopong
                                                                                   Estimated Estimated              Employment
                                                                   Total           Production   Revenue             Full-time job
    Cash & Field Crops:           unit                             Area    Units     (2005)      R '000              equivalent
          Cotton                    ha           2 900               2 900    ton         7 089  15 597                  577
          Sunflower                 ha          13 000              13 000    ton        13 650  23 601                  431
          Maize                     ha           5 290               5 290    ton        17 616  10 569                  501
          Wheat                     ha           1 200               1 200    ton         3 660   5 834                   95
          Sorghum                   ha             200                 200    ton           516    464                    19
          Groundnuts                ha             750                 750    ton         1 208   3 467                  138
          Lucerne                   ha              50                  50    ton           728    909                     6
          Paprika                   ha              50                  50    ton           200   2 000                   25
          Tobacco                   ha             120                 120     kg       320 760   5 212                  129
          Potatoes                  ha             320                 320   10kg     1 192 800  17 296                  117
          Watermelons               ha             150                 150  melons      375 000   1 875                   22

    Horticulture:
           Grapes                    ha                       44         44    4.5kg         199 665    2 995             57
           Citrus                    ha                      280        280       mt           9 800    24 500            729
           Peaches                   ha                       93         93       mt           2 783    6 679             107
           Plums                     ha                       46         46       mt           1 154    5 191             53
           Vegetables                ha                      650        650       mt          16 392    30 343            246

    Livestock:                                                      Total
           Eggs                   layers       120 000             120 000      doz.        2 920 000    13 870           29
           Broilers               birds/week    93 000              93 000       ton        7 399 080    70 291           93
           Pork                    sows          1 700               1 700       ton            2 380    2 737            85
           Cattle                  head         42 000              42 000       ton            4 200    37 800           252
           Game                    1000ha        81.07                   81       ha       81 070       400 000           324
           Crocodile                 ♀             400                 400     ♀                  400    16 000           20

    Employment1                                     4 295              4 295                                             4 057

Restitution projects
*        Rooipan                         1 484ha                       smallholdings              restored
*        De Hoop                         678ha                         smallholdings              negotiations
*        Madisha                         1 671ha                       agriculture                negotiations
*        Ga Aphane                       1 239ha                       cattle & cropping          negotiations




Waterberg Agricultural Strategy                                    8                                         Report 1: Discussion document
Table 3: Modimolle - Estimated agricultural production for 2004/5




                                               Modimolle
                                                                                     Estimated     Estimated      Employment
                                                                                     Production    Revenue        Full-time job
    Cash & Field Crops:           unit                     Total Area Units            (2005)       R '000         equivalent
         Cotton                     ha              800            800    ton                7 089   15 597            159
         Sunflower                  ha            2 400          2 400    ton                2 520   4 357              80
         Maize                      ha            3 200          3 200    ton               10 656   6 394             303
         Wheat                      ha            1 500          1 500    ton                4 575   7 293             119
         Soya Beans                 ha            1 500          1 500    ton                3 300   5 082             109
         Groundnuts                 ha              700            700    ton                1 127   3 236             129
         Lucerne                    ha               50             50    ton                  728     909               6
         Paprika                    ha               50             50    ton                  200   2 000              25
         Tobacco                    ha            1 190          1 190     kg            3 180 870   51 689           1 281
         Potatoes                   ha               90             90  10kg               335 475   4 864              33
         Watermelons                ha              150            150 melons              375 000   1 875              22

    Horticulture:
          Grapes                     ha              51               51    4.5kg         230 130     3 452             66
          Citrus                     ha             190              190       mt           6 650     16 625           495
          Peaches                    ha              79               79       mt           2 367     5 682             91
          Plums                      ha              21               21       mt             529     2 382             24
          Vegetables                 ha           1 450            4 500       mt          36 590     67 690          1 705

    Livestock:                                                  Total
          Eggs                    layers       50 000             50 000     doz.        1 216 667    5 779             12
          Broilers                birds/week   10 000             10 000      ton          795 600    7 558             10
          Pork                     sows         1 500              1 500      ton            2 100    2 415             75
          Dairy                    l/day        6 400              6 400     litre       2 336 000    4 789             43
          Cattle                   head        58 000             58 000      ton            5 800    52 200           348
          Game                     1000ha      131.21                 131      ha      131 210       400 000           525
          Crocodile                  ♀           1200              1 200    ♀                1 200    48 000            60

    Employment1                                   7 040            7 040                                              5 720

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




Waterberg Agricultural Strategy                             9                                          Report 1: Discussion document
Table 4: Mokgalakwena - Estimated agricultural production for 2004/5




                                              Mogalakwena
                                                                                Estimated    Estimated               Employment
                                                                  Total         Production   Revenue                 Full-time job
    Cash & Field Crops:       unit                                Area Units      (2005)      R '000                  equivalent
          Cotton                ha                    800            800   ton         7 089   15 597                     159
          Sunflower             ha                  1 200          1 200   ton         1 260    2 179                      40
          Maize                 ha                  2 850          2 850   ton         9 491    5 694                     270
          Wheat                 ha                    800            800   ton         2 440    3 889                      64
          Soya Beans            ha                  1 500          1 500   ton         3 300    5 082                     109
          Lucerne               ha                     50             50   ton           728     909                        6
          Paprika               ha                    100            100   ton           400    4 000                      50
          Tobacco               ha                    490            490    kg     1 309 770   21 284                     528
          Potatoes              ha                     40             40 10kg        149 100    2 162                      15
          Watermelons           ha                    140            140 melons      350 000    1 750                      21

    Horticulture:
           Grapes                  ha                       149        149   4.5kg        670 230      10 053             193
           Citrus                  ha                       420        420      mt         14 700      36 750            1 094
           Peaches                 ha                        38         38      mt          1 130       2 711              43
           Plums                   ha                        13         13      mt            317       1 425              15
           Vegetables              ha                       650        650      mt         16 402      30 343             246

    Livestock:                                                    Total
           Eggs               layers           40 000             40 000        doz.      973 333       4 623              10
           Broilers           birds/week       27 000             27 000         ton    2 148 120      20 407              27
           Pork                   sows            500                500         ton          700        805               25
           Cattle                 head         54 000             54 000         ton        5 400      48 600             324
           Game                   1000ha       110.42                110          ha   110 420         400 000            442

    Employment1                                     3 670          3 670                                                 3 679

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




Waterberg Agricultural Strategy                                   10                                             Report 1: Discussion document
Table 5: Thabazimbi - Estimated agricultural production for 2004/5




                                               Thabazimbi
                                                                          Estimated Estimated                Employment
                                                            Total         Production Revenue                 Full-time job
    Cash & Field Crops:           unit                      Area Units      (2005)     R '000                 equivalent
          Cotton                   ha               800        800   ton         7 089 15 597                     159
          Sunflower                ha             2 000      2 000   ton         2 100  3 631                      66
          Maize                    ha             3 200      3 200   ton        10 656  6 394                     303
          Wheat                    ha             5 500      5 500   ton        16 775 26 739                     438
          Sorghum                  ha             2 000      2 000   ton         5 160  4 644                     189
          Soya Beans               ha             1 500      1 500   ton         3 300  5 082                     109
          Lucerne                  ha               250        250   ton         3 638  4 547                      29
          Tobacco                  ha                40         40    kg       106 920  1 737                      43
          Watermelons              ha               400        400 melons    1 000 000  5 000                      59

    Horticulture:
           Citrus                    ha             160        160         mt         5 600      14 000           417
           Vegetables                ha           1 100      1 100         mt        27 757      51 351           417

    Livestock:                                              Total
           Broilers               birds/week    5 000        5 000         ton      397 800      3 779             5
           Pork                    sows           500          500         ton          700       805              25
           Cattle                  head        90 000       90 000         ton        9 000      81 000           540
           Game                    1000ha      318.31          318          ha   318 310        400 000          1 273
           Crocodile                 ♀            300          300     ♀                300      12 000            15

    Employment1                                   5 550      5 550                                               4 087

Restitution projects
*        Baphalane                        1 884ha                 cattle and lodge            business plan being compiled
*        Sebilong                                                                             further research
*        Motihabatse Community                                                                further research
*        Mabula Mosima                                                                        further research




Waterberg Agricultural Strategy                              11                                           Report 1: Discussion document
Table 6: Lephalale - Estimated agricultural production for 2004/5




                                               Lephalale
                                                                        Estimated Estimated                Employment
                                                           Total        Production Revenue                 Full-time job
    Cash & Field Crops:            unit                    Area Units     (2005)     R '000                 equivalent
          Cotton                    ha             500        500   ton        7 089 15 597                      99
          Sunflower                 ha           1 400      1 400   ton        1 470  2 542                      46
          Maize                     ha           3 000      3 000   ton        9 990  5 994                     284
          Wheat                     ha           1 600      1 600   ton        4 880  7 779                     127
          Lucerne                   ha             200        200   ton        2 910  3 638                      23
          Paprika                   ha             100        100   ton          400  4 000                      50
          Tobacco                   ha             640        640    kg    1 710 720 27 799                     689
          Potatoes                  ha             750        750  10kg    2 795 625 40 537                     274
          Watermelons               ha             500        500 melon    1 250 000  6 250                      74

    Horticulture:
           Grapes                    ha             56         56    4.5kg         254 070     3 811              73
           Citrus                    ha            180        180       mt           6 300     15 750            469
           Vegetables                ha          1 100      1 100       mt          27 757     51 351            417

    Livestock:                                        Total
           Eggs                   layers       80 000 80 000          doz.     1 946 667       9 247              80
           Broilers               birds/week    5 000 5 000            ton       397 800       3 779               5
           Pork                     sows        1 000 1 000            ton         1 400       1 610              50
           Dairy                    l/day       1 000 1 000           litre      365 000        748                7
           Cattle                   head        1 750 1 750            ton        17 500      157 500            1 050
           Game                    1000ha         564    564            ha       564 320      400 000            2 257
           Crocodile                  ♀           300    300         ♀               300       12 000             15

         Employment                              9 368                                                           6 090

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




Waterberg Agricultural Strategy                             12                                           Report 1: Discussion document
Table 7: PRODUCTION STATISTICS - WATERBERG DISTRICT, 2005




                                                                             Mogalakwena
                                                  Mookgopong




                                                                                           Thabazimbi
                                                                 Modimolle
                                    Bela-Bela




                                                                                                        Lephalale
                                                                                                                                   Estimated Estimated Employment
                                                                                                                    Total          Production Revenue Full-time job
  Cash & Field Crops: unit                                                                                          Area Units       (2005)     R '000  equivalent                           Notes / Trends
    Cotton              ha              0          2 900            800         800          800           500        5 800   ton         7 089  15 597   1 153              Projected production for 2006 30% lower. *R/$ sens.
    Sunflower           ha         15 000         13 000          2 400       1 200        2 000         1 400       35 000   ton        36 750  63 541   1 160            Plantings to increase, depending on Maize price.R/$ sens
    Maize               ha          4 625          5 290          3 200       2 850        3 200         3 000       22 165   ton        73 809  44 286   2 099             Currently oversupplied & uneconomical to produce. R/$.
    Wheat               ha          1 400          1 200          1 500         800        5 500         1 600       12 000   ton        36 600  58 340    955              Nett import commodity (Limpopo = 14000ha). R/$ sens.
    Sorghum             ha         12 000            200              0           0        2 000             0       14 200   ton        36 636  32 972   1 345             Producer price decreased by 38% from R 1450 in 02/03
    Soya Beans          ha              0              0          1 500       1 500        1 500             0        4 500   ton         9 900  15 246    326                    Produced mainly under irrigation. R/$ sens.
    Groundnuts          ha              0            750            700           0            0             0        1 450   ton         2 335  6 702     268                Moderate increase in plantings predicted. R/$ sens.
    Lucerne             ha              0             50             50          50          250           200          600   ton         8 730  10 913     70                Supply & demand dominated by weather conditions
    Paprika             ha              0             50             50         100            0           100          300   ton         1 200  12 000    151                                Market unpredictable
    Tobacco             ha              0            120          1 190         490           40           640        2 480    kg     6 629 040 107 722   2 670           Production reduced by 70% (2003). ExtremelyR/$ sensitive
    Potatoes            ha              0            320             90          40            0           750        1 200 10kg      4 473 000  64 859    438               High risk, high potential commodity. Markets volatile.
    Watermelons         ha            160            150            150         140          400           500        1 500 melons    3 750 000  18 750    223                     More attention to marketing and water use

  Horticulture:
    Grapes                  ha               15             44       51              149       0            56          316 4.5kg      1 423 305    21 350       409     Decline in new plantings. Supply @optimum level. Exp=56%
    Citrus                  ha              200            280      190              420     160           180        1 430    mt         50 050   125 125      3 724     Increase in new plantings consistant. R/$ sens. Exp>60%
    Peaches                 ha               92             93       79               38       0             0          301    mt          9 040    21 695       347       Strategic situation. Easy excess to markets. Exp >50%
    Plums                   ha                0             46       21               13       0             0           80    mt          2 000    8 998        92                Exports > 76%. Market growth potential.
    Vegetables              ha              850            650    1 450              650   1 100         1 100        5 800    mt        146 450    27 093      2 197         Actual district fugures. Prices & yields extrapolated

  Livestock:                                                                                                        Total
     Eggs                 layers     40 000 120 000              50 000      40 000      0 80 000                   330 000   doz.    8 030 000     38 143       80
     Chickens              doc/week 150 000       0                   0           0      0       0                  150 000   DoC     7 800 000     19 500       46                         Midway & Mikon Chicks
     Broilers             birds/week 10 000 93 000               10 000      27 000 5 000 5 000                     150 000     ton 11 934 000     113 373       150                     Including informal producers
     Pork                    sows     3 600   1 700               1 500         500    500 1 000                      8 800     ton      12 320     14 168       440     Stable production - not expected to change much in the future
     Dairy                  l/day     2 200       0               6 400           0      0 1 000                      9 600    litre  3 504 000     7 183        64
     Cattle                 head 31 000 42 000                   58 000      54 000 90 000 175 000                  450 000     ton      45 000    405 000      2 700                     Approx distribution of cattle
     Game                   1000ha   120.52   81.07              131.21      110.42 318.31 564.32                     1 326      ha 1 325 850      400 000      5 303                        Total est rev for area.
     Crocodile                ♀         200     400                1200           0    300     300                    2 400   ♀           2 400     96 000       120                     Est breeding females in area.

  Employment1                      3 234            4 295         7 040       3 670        5 550         9 368       33 157                                     26 531
(Compiled from various sources. See references.)
1 STATSSA,    Census 2001.


Waterberg Agricultural Strategy                                     13                                                              Report 1: Discussion document
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.


         2.1.1     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


Waterberg Agricultural Strategy                   14                                       Report 1: Discussion document
                   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.




Waterberg Agricultural Strategy                   15                                        Report 1: Discussion document
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.




Waterberg Agricultural Strategy                  16                                       Report 1: Discussion document
                   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.



Waterberg Agricultural Strategy                     17                                  Report 1: Discussion document
         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.


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         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.




Waterberg Agricultural Strategy                   19                                        Report 1: Discussion document
         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;



Waterberg Agricultural Strategy                    20                                        Report 1: Discussion document
               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



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         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.




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         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.




Waterberg Agricultural Strategy                   23                                       Report 1: Discussion document
3.4      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


Waterberg Agricultural Strategy                    24                                    Report 1: Discussion document
                      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.


Waterberg Agricultural Strategy                  25                                       Report 1: Discussion document
         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.




Waterberg Agricultural Strategy                   26                                        Report 1: Discussion document
         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




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              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




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         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




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              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




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                   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




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                   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.




Waterberg Agricultural Strategy                    32                                      Report 1: Discussion document
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


Waterberg Agricultural Strategy                   33                                       Report 1: Discussion document
         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.




Waterberg Agricultural Strategy                  34                                        Report 1: Discussion document
Figure 1: Cluster1 – Meat production and processing




Figure 2: Cluster 2 – Regional production and marketing




Waterberg Agricultural Strategy           35              Report 1: Discussion document
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.




Waterberg Agricultural Strategy                  36                                       Report 1: Discussion document

				
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