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