Creating a Local Creating a Local Competitive Advantage for Competitive Advantage for Ilembe: AgricultureIlembe: Agriculture

Results of the PACA Exercise20 - 28 October 2003

Part 1: IntroductionPart 1: Introduction

What is Participatory Appraisal of What is Participatory Appraisal of Competitive Advantage (PACACompetitive Advantage (PACA®®

)?)?

Participatory

Appraisal of

Competitive Advantage

Involve local stakeholders Motivate local stakeholders to take an

active role in an LED initiative Transfer know-how to local stakeholders

and businesses

Do a quick scan of the local economy Assess and refocus ongoing local

economic development activities

Identify strengths, skills, talents and opportunities

Identify business and LED opportunities

What is the objective of PACA?What is the objective of PACA?

Identify, with a rapid appraisal, the main strengths and weaknesses of the local economy and its main sectors (duration: 1 - 2 weeks)

Identify options for practical activities to strengthen the competitiveness of firms -- Criteria:– feasible with local resources– quickly implimentable (starting next week)– quick, visible results (with 3 months)

What have we been doing? What have we been doing?

Kick-off workshop on 20 October 2003 From 21 to 28 October 2003:– Six mini-workshops with about 100

participants– A dozen interviews – Workshops in the coastal and hinterland

regions

Part 2: DiagnosisPart 2: Diagnosis

Main findings in AgricultureMain findings in Agriculture

Looming crisis of the sugar market Communication breakdown between large

commercial farmers and the Ilembe District Municipality

Large vs. Small farmers is not the most relevant typology (categorising)

Huge opportunities for emerging farmers in the sector

Solutions are already there - like high quality diversified vegetables and value adding processing

Looming crisis of sugar caneLooming crisis of sugar cane

Stability of cane market resulted in poor creativity

Millers monopolize the market Quota and cane supply agreements are

hand-cuffing emerging sugar farmers Failure to acknowledge and recognise non-

sugar cane farmers

Communication breakdownCommunication breakdown

There is a lack of communication of farmer needs and government expectations between the large commercial farmers, government in general and IDM

Large vs. Small farmers is not the Large vs. Small farmers is not the most relevant typology most relevant typology (categorising)(categorising) Such categorisation leads to channeling

support where it is not needed Categorising in terms of small and large is

debilitating - especially for “small” yet well established farmer

e.g. a farmer may be “small” but highly effective and successful

Need to categorize farmers according to level of establishment, their being commercial and non-commercial and being included in the value-chain

Huge opportunities for emerging Huge opportunities for emerging farmers in the sectorfarmers in the sector

Very good opportunities for sectoral growth through:– value-adding– strategic partnerships between emerging

and commercial farmers for purposes like skills transfer, optimized production, gain easy access to markets etc.

Solutions already thereSolutions already there

There are farmers producing high value vegetable crops in Ilembe

There are farmers who are processing their crops on their farms

Such farmers are very willing to share information and to do mentoring

Part 3: ProposalsPart 3: Proposals

Key Proposals for the Ilembe Key Proposals for the Ilembe DistrictDistrict

Learnership to upgrade level of skills Mentorship Developing Markets Organic Farming Uses of Marginal Land Communication Support Institutions Promote Diversification

Learnership as a skills- transfer Learnership as a skills- transfer methodmethod

Commercial farmers:– Development of workplace skills plans

(learnerships) • in order to take advantage of Skills

Levy• in order to develop potential skilled

employees or subcontractors

Embedded MentorshipEmbedded Mentorship

Mentorship to be an integral part of the partnerships between commercial and emerging farmers– e.g.• Apprenticeship• Mentorship based on a partnership

agreement

Technical support should be embedded in the value chain

Quantify and confirm marketsQuantify and confirm markets

Create linkages based on confirmed markets, e.g.– Romac Farms– African Farms– Bloemendaal– Rolon Sugar Estate– And many more…..

Organic FarmingOrganic Farming

Pursue an organic traditional grower approach

Organic products has a higher premium than normal products

Uses of marginal landUses of marginal land

Marginal land can be used for hydroponic farming (tunnels)

Aquaculture (fish farming) by-product (nitrate rich water) can be used in hydroponic farming

Create a platform for Create a platform for communicationcommunication

Regular business breakfast of commercial farmers with Ilembe District Municipality

Support and participate in shows of the Dept. of Agriculture

Create formal linkage between SASA and Ilembe

Dissemination of Information and Dissemination of Information and communicationcommunication

Produce a Newsletter for emerging farmers Broadcast via radio stations (talkshows)– Ilembe FM launch pending

Establishment of an Ilembe Agricultural desk

Supporting InstitutionsSupporting Institutions

Workshop with supporting institutions and associations– Guiding question: How to move to more

adequate segmentation? – How to cater for the specific support

needs of dynamic emerging farmers?

Promoting diversificationPromoting diversification

Arranging a monthly event (e.g. topical inputs) for dynamic emerging farmers– This will also encourage and promote

newcomers to the market Promote sharing of information and best

practices

So what next….?So what next….?

Way forward workshop Integration into Ilembe LED strategy Submit comprehensive report to Ilembe

District Municipality (IDM) IDM to place results into 2004 IDP Monthly follow-up activities until April 2004

Thank you for your attention!

The PACA AgricultureTeamThe PACA AgricultureTeam

Conrad Jardine (GTZ)

Madumelana Mhlongo (XD consultants)

Rehana Pilodia (mesopartner Africa)