PRESENTATION TO AGRICULTURE AND LAND AFFAIRS PORTFOLIO COMMITTEE

07 November 2006

PROFILE OF EMPLOYERS

SIZE 2006/-07

> 150 320

50 – 149 658

1 – 49 2 533

TOTAL 3 511

SECTORPRIMARY:

COMMERCIAL:

50 000 E’PRISES

1, M EMPLOYEES

SMALL SCALE:

650 000 + DEPENDANTS

SECONDARY:

ALL ENTERPRISES

250 000 EMPLOYERSDropped

from 9364

R36,7 m

Deficit

Cash at bank

R68,8 m

FUNDING FOR AGRISETA

TOTAL REVENUE

(all sources)

R135,4 MILLION

20% - R21,2 m

NSF

R11,5 m Admin.

R117,6 m Employer Grant & Project Exp.

R21.8 m NSF & other Special Proj. Exp.

SLA and Discretionary Fund allocation

• 5 Objectives with various success indicators

• All within context of Scarce and Critical Skills

• Overall Equity to be attained: 85% Black, 54% Women and 4% disabled

12 success indicators – underperformed on three.

Overall rating by DoL: 114% achievement

S&C skills well specified in new SSP – will focus more directly.

Most critical – Farm Management and Literacy & Numeracy – vast majority of AgriSETA funds invested in these two areas

Black – over perform, female – close to target (48%), disabled – under perform, have to engage in special projects to attract disabled.

LARGE SCALE PROJECTS

• ABET

Valued at R30 million

15 000 learners computer aided and 5 000 face to face

• LEARNERSHIPS

10 000+ learners4 000+ young people in learnerships (18.2)

• SKILLS PROGRAMMES15 000 – 20 000 learners

• FUTUREApprentices

Internships

Workplace experience grants

SCARCE AND CRITICAL SKILLS

•Align to national priorities – ASGISA and JIPSA

•Primary Agric – focus on objective 3: SUSTAINABLE LIVELIHOODS, supporting specifically LAND REFORM PROCESSES

•Focus on development of suitable black candidates for managerial positions, supporting AgriBEE strategy

•Focus on engaging YOUTH in agriculture

•Invest in PROVIDER QUALITY to also deliver effectively in deep rural areas

FUTURE - REOMMENDATIONS

Funding formula not ideal for Agri Sector – only R40 million / annum discretionary funding – whilst sector is vast.

Need long-term agreed stable funding from NSF of approx. R30 million / annum.

Discretionary funds – mainly to benefit of employers and

employed workers and supporting AgriBEE NSF funds – mainly to benefit

of un-employed and national imperatives – specially agric.

land reform beneficiaries

Developing farmers long-term process because of long production cycles

BETTER PENETRATION, LARGER IMPACT

SCARCE AND CRITICAL SKILLS(continued)

PRIORITY FOCUS AREAS

SPECIFIC LEARNING AREAS

DEVELOPMENT OF HUMAN CAPACITY

•ABET

•Problem solving

•Numeracy & literacy

•Initiative, flexability

•Diversification

MANAGEMENT AND AGRI-BUSINESS SKILLS

•Farm management

•Business and financial management

•Marketing Environmental management

•Information Technology

SCARCE AND CRITICAL SKILLS(continued)

PRIORITY FOCUS AREAS

SPECIFIC LEARNING AREAS

READINESS AND RESPONSIVENESS TO GLOBAL MARKETS

•Food safety standards

•Traceability

•Information technology

•Phytosafety

•Food quality assurars

CAPACITY OF PROVIDERS TO DELIVER ON:

•Technical skills – ARTISANS

•Agric. Engineers and economists

•Production and process engineers

•Technicians and maintenance staff

In essence: SECTOR SPECIALISTS

e.g.. TECHNICAL

e.g.. MANAGERIAL

SCARCE AND CRITICAL SKILLS

•CURRENT SKILLS PLANNING IS ELEMENTAL

•CONSIDER SKILLS NEEDS IN ISOLATION

NEED TO

MOVE TOWARDS WHAT IS BEST FOR THE AGRI SECTOR

SKILL C

SKILL A

SKILL B

SKILL etc.

•SUPPLY OF SKILLS ARE “SCATTERED”

MILLING

SILO’s

GRAIN

FARMING

ABATT-OIRS

FEED-LOTS

CATTLE FARMING

SUB-SECTOR SPECIFIC

OC

CU

PA

TIO

N

SP

EC

IFIC