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Draft Status Quo Report for the Pixley Ka Seme ... - SRK Consulting

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<strong>SRK</strong> <strong>Consulting</strong> in association with BKS<br />

<strong>Pixley</strong> <strong>Ka</strong> <strong>Seme</strong> Local Municipality EMF – <strong>Draft</strong> <strong>Status</strong> <strong>Quo</strong> <strong>Report</strong> Page 60<br />

Asset Opportunity Constraint / Threat<br />

Land re<strong>for</strong>m<br />

International market<br />

trends<br />

Local businesses<br />

Mining<br />

Coordination and combined planning should<br />

be extended to <strong>the</strong> land re<strong>for</strong>m process. The<br />

use of mentorship programs to support new<br />

beneficiaries is under exploited. Personal<br />

conversations with farmers disclose <strong>the</strong>ir<br />

willingness to provide mentorship and<br />

assistance to new farmers. It is in <strong>the</strong><br />

interest of all that land re<strong>for</strong>m succeeds; a<br />

view also expressed by most farmers. The<br />

Department of Agriculture and <strong>the</strong><br />

municipalities should use this offer from<br />

experienced farmers to assist.<br />

The potential exists to exploit niche markets<br />

with export potential, <strong>for</strong> e.g. apple<br />

production and berry production. A few<br />

farmers have started with <strong>the</strong> production and<br />

export of apples. The climate, soil and<br />

positioning of <strong>the</strong> area from <strong>the</strong> main<br />

markets and transport systems open up<br />

opportunities <strong>for</strong> various products.<br />

The Amajuba berry project near Volksrust<br />

should be used as an example on how to<br />

manage large scale projects.<br />

Introduce mentorship programs <strong>for</strong> beginner<br />

farmers in conjunction with commercial<br />

farmers.<br />

Agri processing can create numerous job<br />

opportunities and significantly contribute to<br />

poverty alleviation in <strong>the</strong> area. Farmers can<br />

also rectify <strong>the</strong> BEE profile of <strong>the</strong>ir<br />

businesses. Currently most of <strong>the</strong> produce is<br />

exported to Gauteng and KZN <strong>for</strong><br />

processing. Afterwards, <strong>the</strong>y are imported<br />

back into <strong>the</strong> area <strong>for</strong> consumers to<br />

purchase from retailers owned by people or<br />

companies in Gauteng.<br />

The building and maintenance of new roads<br />

by <strong>the</strong> mines could create additional markets<br />

<strong>for</strong> agricultural products.<br />

Mines should be taxed additionally because<br />

of <strong>the</strong> damage <strong>the</strong>y incur on <strong>the</strong> road<br />

infrastructure.<br />

The slow pace and lack of support to land<br />

re<strong>for</strong>m is a threat to <strong>the</strong> agricultural sector. All<br />

role players in agriculture in <strong>the</strong> region<br />

(farmers, agri businesses and banks) agreed<br />

that land re<strong>for</strong>m should take place. They are<br />

concerned however with <strong>the</strong> poor service<br />

delivery of land re<strong>for</strong>m and <strong>the</strong> lack of support<br />

from <strong>the</strong> Department of Agriculture to new<br />

farmers. New farmers don’t produce optimally<br />

and in some cases not at all, which pose a<br />

severe threat on agricultural production in <strong>the</strong><br />

region.<br />

Previous land re<strong>for</strong>m projects failed dismally<br />

because of a myriad of reasons, well-known to<br />

<strong>the</strong> Dept of Agriculture.<br />

A weak rand has a negative impact on grain<br />

production as costs in fertilizer, chemicals,<br />

seed, diesel and machinery increases.<br />

Subsidies <strong>for</strong> agriculture in Europe and <strong>the</strong><br />

US, increased crop production in Brasilia,<br />

Argentina and China has a negative impact on<br />

agricultural produce in South Africa.<br />

Poor road condition has a negative effect on<br />

most businesses ( except <strong>the</strong> tyre industry<br />

who benefit from poor roads).<br />

Mining is not active at a large scale in <strong>the</strong><br />

district. Exploration however indicates that<br />

lower quality coal is available and that might<br />

compete with agriculture <strong>for</strong> land – trade-offs<br />

between industry, agriculture and <strong>the</strong><br />

environment is an inherent element of<br />

development.<br />

Mining in neighbouring regions, however<br />

impact negatively on <strong>the</strong> road system in <strong>the</strong><br />

region. Roads are seriously damaged by coal<br />

trucks.<br />

The mining sector seems to be ignorant of <strong>the</strong><br />

damage <strong>the</strong>y incur on <strong>the</strong> environment, and<br />

<strong>the</strong> agricultural and tourism industry.<br />

Source: Adapted from Jordaan and Jordaan (2010)<br />

Table 4-6: Assets, opportunities and constraints/threats associated with socio-economics<br />

Asset Opportunity Constraint / Threat<br />

Natural environment<br />

Improvement in local ecotourism.<br />

Conservation of biodiversity through <strong>for</strong>mally<br />

Minimal infrastructure development.<br />

Lack of services and maintenance.<br />

KILI/BEAT G:\404946_PIXLEY EMF\7REPORTS\<strong>Status</strong> <strong>Quo</strong> report\<strong>Draft</strong> report\<strong>Draft</strong> status quo report, July 2010.docx July 2010

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