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AGRICULTURAL SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA for submission to the Department of Higher Education and ...
AGRICULTURAL SECTOR SKILLS PLAN
          2018-2019
Prepared on behalf of the Sector by AgriSETA for submission
    to the Department of Higher Education and Training

                       August 2017
AGRICULTURAL SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA for submission to the Department of Higher Education and ...
AUTHORISATION AND OFFICIAL SIGN-OFF
We, the undersigned, hereby certify that this Final Draft Sector Skills Plan:
     •   Was developed by the management of AgriSETA under the guidance of the AgriSETA
         Accounting Authority and in consultation with the Department of Higher Education and
         Training
     •   Was informed by extensive literature reviews, data analysis and research
     •   Takes into account all the relevant policies, legislation and other mandates for which
         AgriSETA is responsible
     •   Involved representative stakeholder consultations
     •   Accurately reflects the findings in terms of scarce skills and skills gaps within
         documented limitations to inform strategy planning and performance priorities.

Date:
Mr J S Madiba
Chief Executive Officer: AgriSETA

Date
Mr T KaPlaatjie
Acting Chairperson: AgriSETA Accounting Authority

For more information, please contact:
AgriSETA
Address:      529 Belvedere St, Arcadia, Pretoria, 0002
Phone:        012 325 165
Fax:          012 325 1677
Email:        info@agriseta.co.za

                                                 i
AGRICULTURAL SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA for submission to the Department of Higher Education and ...
FOREWORD
S   outh Africa has a dual agricultural economy spanning subsistence and commercial interests.
    These two constituencies have differing skills requirements and AgriSETA is required to serve
    both. In order to accurately serve the skills needs of the Agricultural sector, AgriSETA requires
an updated Sector Skills Plan (SSP) for 2018/2019, including a scarce skills and skills gaps list which
is aligned to government priorities and strategic frameworks. This document lays out these
priorities and identifies the skills needs of the sector.
   It was found that commercial farmers require high level technical skills for managerial
positions, and improved Adult Education and Training and Recognition of Prior Learning (RPL) for
their unskilled workforce. Co-operatives require partnerships (with big business, government
departments, other SETAs and industry bodies) that are targeted at helping co-operatives develop
into proper businesses with access to finance, corporate governance and business management
skills.
   The skills mismatch identified in this SSP points out that neither of these constituents outlined
above currently fully benefits from existing AgriSETA learnerships. Unskilled workers are, on the
whole, not eligible for lower level NQF AgriSETA learnerships because they do not have the
requisite basic literacy and numeracy skills, or require RPL to be launched onto a career
development path. This unskilled workforce spans commercial and subsistence farming. AgriSETA
provides sufficient lower level NQF interventions, but commercial enterprises require technical
skill for managerial and scientific positions, which should be catered for in the form of mentorships
and bursaries. The research supporting these findings is contained in the following document.

Date
Mr T KaPlaatjie
Acting Chairperson: AgriSETA Accounting Authority

                                                    ii
AGRICULTURAL SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA for submission to the Department of Higher Education and ...
ABBREVIATIONS AND ACRONYMS
AFASA      African Farmers’ Association of South Africa
AGOA       African Growth and Opportunity Act
AgriSETA   Agricultural Sector Education and Training Authority
APAP       Agricultural Policy Action Plan
ATR        Annual Training Report
BMI        Business Monitor International
DAFF       Department of Agriculture, Forestry and Fisheries
DHET       Department of Higher Education and Training
DRDLR      Department of Rural Development and Land Reform
DTI        Department of Trade and Industry
FETMIS     Further Education and Training Management Information System
GDP        Gross Domestic Product
HEMIS      Higher Education Management Information System
HTFVs      Hard-to-fill vacancies
HSRC       Human Sciences Research Council
IDGP       Integrated Growth and Development Plan
IDP        Integrated Development Plan
IPAP       Industrial Policy Action Plan
IRR        Institute of Race Relations
KZN        KwaZulu-Natal
LED        Local Economic Development
MAFISA     Micro Agricultural Financial Institution of South Africa
NAFU       National African Farmers Union
NDP        National Development Plan
NERPO      National Emergent Red Meat Producers Organisation
NGP        New Growth Path
NEETS      Not in Employment, Education or Training
NSDS III   National Skills Development Strategy III
NSFAS      National Student Financial Aid Scheme
QLFS       Quarterly Labour Force Survey
QCTO       Quality Council for Trades and Occupations
RPL        Recognition of Prior Learning
SACAU      Southern African Confederation of Agricultural Unions

                                     iii
AGRICULTURAL SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA for submission to the Department of Higher Education and ...
SADC       Southern African Development Community
           South African Institute for Vocational and Continuing Education and
SAIVCET
          Training
SAQA       South African Qualifications Authority
SDA       Skills Development Act
SIP       Strategic Integrated Project
SIC       Standard Industrial Classification
SSP       Sector Skills Plan
SIZA      Sustainability Initiative of South Africa
StatsSA   Statistics South Africa
TAUSA     Transvaal Agricultural Union South Africa
TVET      Technical Vocational Education and Training
WSP       Workplace Skills Plan
WTO       World Trade Organisation

                                     iv
AGRICULTURAL SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA for submission to the Department of Higher Education and ...
TABLE OF CONTENTS
Authorisation and official sign-off ......................................................................................... i
Foreword .......................................................................................................................... ii
Abbreviations and acronyms .............................................................................................. iii
TABLE OF CONTENTS .......................................................................................................... v
LIST OF TABLES AND FIGURES ............................................................................................. vi
Executive Summary.......................................................................................................... vii
  1. RESEARCH PROCESS AND METHODS ................................................................................................ VIII
  2. DOCUMENT REVIEW ......................................................................................................................... VIII
  3. SCARCE AND PIVOTAL LIST FORMULATION ........................................................................................ IX
  4. SUMMARY OF KEY FINDINGS .............................................................................................................. IX
Chapter 1: Sector Profile ..................................................................................................... 1
  1. INTRODUCTION .....................................................................................................................................1
  1.1. SCOPE OF COVERAGE .........................................................................................................................1
  1.3. ECONOMIC PERFORMANCE ...............................................................................................................5
  1.5. LABOUR MARKET PROFILE .................................................................................................................8
  1.6. CONCLUSION ................................................................................................................................... 12
Chapter 2: Key Skills Issues ............................................................................................... 13
  2. INTRODUCTION .................................................................................................................................. 13
  2.1. CHANGE DRIVERS ............................................................................................................................ 13
  2.2. ALIGNMENT WITH NATIONAL STRATEGIES AND PLANS ................................................................. 16
  2.3. IMPLICATIONS FOR SKILLS PLANNING IN THE AGRICULTURAL SECTOR ......................................... 17
  2.4. CONCLUSION ................................................................................................................................... 17
Chapter 3: Occupational Shortages and Skills Gaps ............................................................. 19
  3. INTRODUCTION .................................................................................................................................. 19
  3.1. OCCUPATIONAL SHORTAGES AND SKILLS GAPS ............................................................................. 20
  3.2. EXTENT AND NATURE OF SUPPLY ................................................................................................... 30
  3.2.2. SUPPLY CHALLENGES EXPERIENCED BY FIRMS ............................................................................ 36
  3.3. PIVOTAL LIST ................................................................................................................................... 37
  3.4. CONCLUSION ................................................................................................................................... 39
Chapter 4: Sector Partnerships .......................................................................................... 41
  4. INTRODUCTION .................................................................................................................................. 41
  4.1. EXISTING PARTNERSHIPS ................................................................................................................ 41
  4.2. NEW PARTNERSHIPS ....................................................................................................................... 45
  4.3. CONCLUSION ................................................................................................................................... 46
Chapter 5: Skills Priority Actions ....................................................................................... 47
  5. INTRODUCTION .................................................................................................................................. 47
  5. 1. FINDINGS FROM PREVIOUS CHAPTERS ......................................................................................... 47
  5.2. RECOMMENDED ACTIONS .............................................................................................................. 48
  5.3. CONCLUSION ................................................................................................................................... 51
Bibliography .................................................................................................................... 52
                                                                            v
LIST OF TABLES AND FIGURES
TABLES
TABLE 1: RESEARCH PROCESS AND METHODOLOGY                                              VIII
TABLE 2: ACTIVITIES WITHIN THE AGRICULTURAL SECTOR BY SIC CODE                           2
TABLE 3: KEY AGRICULTURAL ROLE-PLAYERS                                                   4
TABLE 4: DISTRIBUTION OF EMPLOYEES BY PROVINCE IN AGRICULTURE, FISHERIES AND FRESTRY     9
TABLE 5: SMALL-EMERGING FARMERS AND CO- OPERATIVES HTFVS                                20
TABLE 6: COMMERCIAL FARMERS’ HTFVS                                                      21
TABLE 7: TOP EMERGING SUBSECTOR SKILLS GAPS AND FUTURE OCCUPATIONAL SHORTAGES           23
TABLE 8: GENERAL PRIORITY SKILLS FOR UNSKILLED LABOUR                                   25
TABLE 9: GENERAL PRIORITY SKILLS FOR SKILLED LABOUR                                     25
TABLE 10: SCARCE SKILLS AND SKILLS GAPS LIST                                            29
TABLE 11: EMPLOYEE TRAINED BY OCCUPATIONAL CATEGORY AND GENDER                          32
TABLE 12: COLLEGES OF AGRICULTURE                                                       35
TABLE 13: THE AGRISETA 2018/19 PIVOTAL LIST                                             37
TABLE 14: POLICY PROVISIONS SKILLS PRIORITY ACTIONS                                     49
TABLE 15: CO-OPERATIVE SKILLS PRIORITY ACTIONS                                          49
TABLE 16: MENTORSHIP AND CAREER PATHWAY SKILLS PRIORITY ACTIONS                         50
TABLE 17: QUALITY OF SKILLS SUPPLY SKILL PRIORITY ACTIONS                               50
TABLE 18: GREEN KNOWLEDGE SKILLS PRIORIT ACTIONS                                        50

FIGURES
FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR                            3
FIGURE 2: CONTRIBUTION TO GDP BY SECTOR, Q1 2016                                        5
FIGURE 3: GROSS VALUE OF AGRICULTURAL PRODUCTS, 2016                                    6
FIGURE 4: PROVINCIAL DISTRIBUTION OF EMPLOYERS REGISTERED WITH AGRISETA                 8
FIGURE 5: SUBSITENCE AGRICULTURAL ACTIVITY PER HOUSEHOLD, %                            10
FIGURE 6: GENDER DISTRIBUTION OF LABOUR IN THE AGRICULTURAL SECTOR                     10
FIGURE 7: EMPLOYEES BY RACE                                                            11
FIGURE 8: EMPLOYMENT CATEGORIES WITHIN LARGE ORGANISATIONS
FIGURE 9: UNIVERSITIES THROUGHPUT FOR AGRICULTURAL STUDENTS GRADUATING IN 2013-2014    31
FIGURE 10: NUMBER OF POST-SCHOOL GRADUATES IN AGRICULTURAL SECTOR                      31
FIGURE 11: SKILLS DEVELOPMENT INTERVENTION                                             32
FIGURE 12: DISTRIBUTION OF AGRISETA LEARNERSHIPS                                       34
FIGURE 13: DISTRIBUTION OF SAQA REGISTERED AGRICULTURE QUALIFICATIONS                  35

                                               vi
EXECUTIVE SUMMARY
A   griSETA requires an updated scarce skills and skills gaps list, aligned to government priorities
    and strategic frameworks, in response to needs identified by the Agricultural sector. There is a
    need to understand how the current scarce skills and skills gaps list matches the needs of the
Agricultural sector and how AgriSETA might facilitate relevant skills and educational opportunities
to address skills gaps identified.
   This 2018 - 2019 Sector Skills Plan (SSP) aims to address five key objectives:
   1. Provide a profile of the Agricultural sector which outlines economic indicators and trends in
        the sector, including employer and employee trends.
   2. Identify key skills issues in the agricultural sector by highlighting the macro socio-economic
        factors that impact on the demand for skills. In this regard, change drivers were identified
        and their articulations with national policy and strategy elaborated upon.
   3. Analyse the occupational shortages and skills gaps trends in the agricultural sector to
        identify potential skills mismatches. This analysis resulted in the formulation of the scarce
        and pivotal skills lists.
   4. Agricultural sector partnerships were analysed to determine show they can be improved,
        as well as demonstrate ‘best practice’ with regard to partnering.
   5. Synthesis of all the above mentioned objectives to establish skills priority actions.

                                                  vii
1. RESEARCH PROCESS AND METHODS
   Mixed research design and methods were adopted, including qualitative and quantitative methods.
 TABLE 1: RESEARCH PROCESS AND METHODOLOGY
Research         Objectives of    Research       Nature of the Sample           Data          Time frame
topics           the studies      method         studies       size             collection    of the study
                                                                                tool
Occupational      Establish the   Qualitative    Non-             5,878         Key            Two
Shortages and     occupational    research       probability      AgriSETA      informant      months
Emerging          shortages                      sampling         stakeholde    interviews     (June-July
Skills Needs      and                            method was       rs            and desk       2016)
                  emerging                       used to                        research
                  skills needs                   identify                       The
                  in the 11                      stakeholder                    qualitative
                  subsectors of                  from whom                      interviews
                  the                            specific                       (primary
                  agricultural                   information is                 data) and
                  sector                         required.                      document
                                                                                analysis
                                                                                (secondary
                                                                                data).
 Skills Issues    Identify the    Quantitative    Gathering        12% were     Survey        Three
 and              key             research        empirical        cooperati    The           months
 Demands          occupational                    evidence         ve           quantitativ   (August-
                  shortages                       using            farmers,     e survey      October
                  and                             primary data     13% were     gathered      2016).
                  demands                         sources, as      small and    data on       Data
                  with regard                     well as          emerging     the           analysis,
                  to unskilled,                   undertaking      farmers      unskilled,    synthesis
                  skilled,                        theoretical,     and 75%      skilled and   and
                  generic                         desktop          were         generic       triangulatio
                  subsector                       research         commerci     occupation    n followed
                  occupations                     using            al farmers   al            over a
                  and                             secondary                     shortages     period of
                  emerging                        data                          and skills    three
                  skills needs                    sources.                      gaps          months
                  in the                                                                      (November -
                  agricultural                                                                January
                  sector.                                                                     2017)

 2. DOCUMENT REVIEW
 A document review was conducted to establish the economic performance and trends by subsector,
 geographic concentration and employers. Government policy and strategy documents, as well as the
 key statistical and industry publications, were reviewed and these are included in the bibliography. A
 thematic analysis was conducted to synthesise the key economic, policy and training issues affecting
 the agricultural sector, to identify key skills issues.
                                                    viii
3. SCARCE AND PIVOTAL LIST FORMULATION
The scarce skills, skills gaps and pivotal skills lists were arrived at through secondary data analysis
and the numbers made available in previous Sector Skills Plans.
3.1. Scarce skills and skills gaps list was generated through:
      Identifying hard-to-fill vacancies based on the results of previous Sector Skills Plans,
       triangulated with 2015/16 and 2016/17 WSP data, as well as surveys sent to all the
       AgriSETA levy payers and agricultural sub-subsector committee members. Further
       information was obtained through interviews with the top levy payers and key industry
       stakeholders to corroborate these findings.
      An analysis of graduate completion rates compared against hard-to-fill vacancies identified
       through our stakeholder engagements.
3.2. Pivotal list was generated through:
      An analysis of employer commitment to train in specific occupational areas as per the WSP
       submissions, in comparison with the hard-to-fill vacancies, thus determining where
       additional training is needed that industry has not yet, or is unable to, respond to.
      These analyses corroborated the existing top ten scarce skills list and are discussed in
       chapter 3. They provide an indication of the imbalances in the sector at national
       qualification and occupational level. They also provide an indication of the volume of skills
       formation in the workplace and through training providers (Powell & Reddy, 2015).

4. SUMMARY OF KEY FINDINGS
      South Africa has a dual agricultural economy spanning subsistence and commercial
       interests. AgriSETA is required to fairly serve both these constituencies despite deriving the
       bulk of its income from top levy players who are a minor proportion of the sector as a
       whole. The top levy payers’ contributions justifies their skills needs be catered for, but there
       is also an equal democratic imperative to support subsistence farmers and rural
       development for the sake of improved livelihoods and food security.
      These two constituencies have differing skills requirements. Commercial farmers require
       high level technical skill for managerial positions, and improved AET and RPL for their
       unskilled workforce. While co-operatives require partnerships (with big business,
       government departments, other SETAs and industry bodies) that are targeted at helping co-
       operatives develop into proper businesses with access to finance, corporate governance
       and business management skills. These should be provided in the form of mentorships
       which fall beyond traditional SETA learnerships.
      It appears that the skills mismatch in the agricultural sector is that neither of these
       constituents currently fully benefits from existing AgriSETA learnerships. There are a group
       of unskilled workers who are not eligible for lower level NQF AgriSETA learnerships because
       they do not have the requisite basic literacy and numeracy skills, or require RPL to be
       launched onto a career development path. This unskilled workforce spans commercial and
       subsistence farming. AgriSETA provides sufficient low to medium level NQF interventions,
       while agricultural colleges and higher education institutions provide medium to high level
       skills required by commercial enterprises.

                                                    ix
CHAPTER 1: SECTOR PROFILE

1. INTRODUCTION

C    hapter 1 provides an overview of the agricultural sector in South Africa by describing the five
     broad sections. The first section deals with the scope of the agricultural sector’s coverage. The
second section describes the AgriSETA stakeholders and key role-players in the sector. The third
section expands on the economic performance of the agricultural sector and details how the sector
contributes to the broader South African economy. The fourth section explores the employer profile
which is based on the submitted 2016 WSP/ATR data, supplemented with data from Statistics South
Africa’s Quarterly Labour Force Surveys. Finally, the fifth section provides a labour market profile,
where the number and demographics of people employed in the sector are provided. This chapter is
intended to set the scene for the skills issues delved into in subsequent chapters.

1.1. SCOPE OF COVERAGE
   Agriculture, in relation to skills development in the sector, only includes agricultural activities
concerned with resource production (primary) and some primary processing of food, aquaculture and
growing of trees as a secondary crop by farmers (secondary). The sector is divided into 41 subsectors
that are classified according to their agricultural and economic focus. Table 2 below highlights the 41
subsectors and their Standard Industrial Classification (SIC) codes, as well as their focus areas.

                                                    1
TABLE 2: ACTIVITIES WITHIN THE AGRICULTURAL SECTOR BY SIC CODE
Subsector      SIC Code   SIC Description
SEED           11140      Seed production and marketing
PEST CONTROL   99003      Pest Control
FIBRE          30118      Grading, ginning and packing of wool and cotton raw material
               11142      Manufacture of tobacco products
TOBACCO
               62208      Processing and dispatching of tobacco
               11220      Other animal farming, production of animal products (not elsewhere classified)
POULTRY        11221      Ostrich farming
               30114      Poultry and egg production including the slaughtering, dressing and packing of poultry
AQUACULTURE    13000      Fishing, operation of fish hatcheries and fish farm
                          Manufacture of flour and grain mill products, including rice and vegetable milling,
               30311
MILLING,                  grain mill residues
PET FOOD &     30330      Manufacture of prepared animal feeds
ANIMAL FEED    30331      Manufacture of pet foods
               30332      Manufacture of starches and starch products
               11122      Sugar plantation including sugar cane and sugar beet etc.
SUGAR
               30420      Manufacture of sugar including golden syrup and castor sugar
               11120      Growing of Vegetables, Horticultural specialties and nursery products
                          Growing of Vegetables, Horticultural specialties (Including Ornamental Horticulture)
               11121
                          and nursery products.
               11130      Growing of fruit, nuts, beverage, and spice crops.
               11301      Growing of coffee and tea including coconuts, cocoa, nuts, olives, dates, etc.
HORTICULTURE   12109      Growing of trees as second crop by farmers
                          Fruit packed in cartons, fruit juice concentrate drummed and fruit juice in container
               30132
                          ready for consumption
               30133      Fruit exporters and importers
               30493      Processing and marketing of coffee and tea including coconuts, cocoa, nuts, olives, dates, etc.
               62112      Service to nut farmers and companies
               11110      Growing of Cereals and other crops (not elsewhere classified)
               30300      Manufacture of grain mill products and starches
GRAINS &
               30313      Handling and storage of grain
CEREALS
               61502      Wholesale & retail trade in Agricultural machinery
               62111      Sale and distribution of Agricultural raw materials and other farming inputs
               11141      Production and animal products (not elsewhere classified)
               11210      Farming of cattle, sheep, goats, horses, asses, mules, and hinnies; Dairy farming.
               11222      Game farming
               11300      Growing of crops combined with farming of animals (Mixed farming)
               11400      Agricultural and animal husbandry services, except veterinary activities
               11402      Other animal farming (not elsewhere classified)
RED MEAT       30111      Slaughtering, dressing and packing of livestock, including poultry and small game for meat.
               30115      Production, sale & marketing of Agricultural by products (e.g. bones, hides)
                          Slaughtering, dressing and packing of livestock, including small game for meat and
               30117
                          processing of ostrich products
               61210      Wholesale trade in Agricultural raw materials and livestock
               74136      Transport of livestock as supporting activity
               87120      Agricultural and livestock research
                                                                                              Source: AgriSETA, 2016.

                                                       2
These subsectors are classified into 11 subsector committees, which represent their industry
interests to AgriSETA. They include: 1) Milling, pet food and animal feeds; 2) Seed; 3) Sugar; 4) Pest
control; 5) Tobacco; 6) Aquaculture; 7) Grain and cereals; 8) Fibre; 9) Poultry; 10) Red Meat; 11)
Horticulture subsector. The graph below indicates the relative size of membership numbers by
subsectors, as captured in the AgriSETA member database for 2016.

FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR

                                                                               Red meat (45%)

                                                                               Horticulture (24%)

                                                                               Grains and Cereals (10%)

                                                                               Fibre (9%)

                                                                               Aquaculture (5%)

                                                                               Poultry (2%)

                                                                               Milling, Petfood, Animal
                                                                               Feed (2%)
                                                                               Pest control (1%)

                                                                               Seed (1%)

                                                                               Sugar (1%)

                                                                               Tobacco (0%)

                                                                  Source: AgriSETA member database, 2016

1.1.1. Revenue from Skills Development Levies
   AgriSETA generates its revenue from Skills Development levies. Currently, there are only 19,834
employers registered with AgriSETA, while there are reportedly over 40,000 commercial farmers
registered for Value Added Tax (VAT) in the sector. This means that just under half of commercial
farming units are contributing towards skills development in the sector, placing a fair degree of
strain on available resources. In order for skills development interventions to reach a broader
base, multiple resources need to be channelled into skills development interventions.
1.2. KEY ROLE-PLAYERS
   There are a number of public and private key role-players in the agricultural sector which
contribute towards its functioning, including: national government departments, sector
representatives and industry bodies. For the sake of brevity, the table below groups these role-
players according to their strategic contribution to the sector. Please note that while as
comprehensive as possible, this list is not exhaustive.

                                                   3
TABLE 3: KEY AGRICULTURAL ROLE-PLAYERS
                         Department or                      Relevance to agricultural skills
Strategic contribution
                         organisation                       development
                                                            Quality of education of entrants to labour
                         Department of Basic                market,
                         Education                          career awareness programmes to expose
                                                            agriculture as a possible career choice
                                                            Responsible for TVETs, HETs, agricultural
Skills Development       Department of Higher               colleges and skills development. Sets the
and Research             Education and Training             national skills development agenda through
                                                            regulation of SETAs.
                                                            Provision of updated statistics on agricultural
                         Statistics SA
                                                            sector economics & labour force.
                                                            Scientific research on agricultural production
                         Agricultural Research Council
                                                            issues.
                         Department of Trade and
                                                            Industrial strategy, international trade
                         Industry & Provincial
                                                            agreements, agricultural sector strategy and
                         Departments of Economic
                                                            policy implementation desk.
                         Development
                                                            Sector regulatory framework, strategy and
Strategy and
                                                            leadership, provision of extension services,
Policy                   Department of Agriculture
                                                            Broad Economic Empowerment funding of
                         Forestry and Fisheries
                                                            development interventions including
                                                            provision of bursaries for scarce skills.
                                                            Financial planning, incentives, accountability
                         National Treasury & SARS
                                                            of Land Bank, skills levies.
                                                            Labour legislation, wage determinations,
                         Department of Labour
                                                            employment equity
                         Department of Economic
                                                            Sector economic strategies
                         Development
                                                            Identification of inter-departmental overlaps
Planning                 National Planning Commission
                                                            and gaps
                                                            Policy and guidelines on environment
                         Department of Environmental
                                                            protection and natural resource management,
                         Affairs
                                                            partner in environmental education
                         Department of Transport            Planning for transport needs in rural areas
                         Department of Rural
                                                            Partnering with AgriSETA in mobilising funds
                         Development and Land
                                                            for capacity building of claimants.
Rural Development        Reform
and Land Reform          Department of Cooperative          Linking agricultural and rural development to
                         Governance and Traditional         IDPs and LED, infrastructure and services to
                         Affairs & Municipalities           agricultural enterprises
                         Department of Water Affairs        Water Boards manage local irrigation schemes
                         Department of Energy               Strategy to supply electricity to rural areas
Services                                                    Collaboration with agricultural community to
                         South African Police Service       address issues of farm security, including
                                                            attacks, stock and property theft
                         Land and Agricultural
                                                            Financial services to commercial farming
Credit and assistance    Development Bank of South
                                                            sector, agribusiness, and emerging farmers.
                         Africa

                                                        4
Department or                      Relevance to agricultural skills
Strategic contribution
                           organisation                       development
                           Micro-Agricultural Financial
                                                              Production loans
                           Institutions of South Africa
                                                              to smallholder operators
                           (Mafisa)
                                                              Agricultural Union serving some 32 000 large
                           Agri South Africa (AgriSA)
                                                              and small commercial farmers.
                           National African Farmers’          Represents black farmers to level the
                           Union of South Africa (Nafu)       field in all agricultural matters.
Union and Sector
                           The African Farmers’               Represents commercial African farmers to
representatives            Association of South Africa        bring black commercial farmers into
                           (Afasa)                            mainstream agribusiness.
                           Transvaal Agricultural Union       A national agricultural
                           South Africa (TAU SA)              union serving commercial farmers
                                                              Fosters a favourable agribusiness
                           Agricultural Business Chamber
                                                              environment
                                                              Conglomerate organisation providing
Agribusiness
                                                              commodity strategic support and services to
                           Grain SA
                                                              South African grain producers to support
                                                              sustainability.
                                            Source: 2015 GCIS Handbook, Agriculture and AgriSETA SSP 2011-2016

1.3. ECONOMIC PERFORMANCE
1.3.1. Overview
   Agriculture on its own accounts for 2.4% of gross domestic product (GDP) and 4.4% of total
employment (IRR, 2016).If the entire value chain of agriculture is taken into account, its
contribution to GDP reportedly reaches about 12% of formal employment (GCIS, 2014/15). The pie
chart and table below indicate the contribution of Agriculture, Fisheries and Forestry to the GDP
relative to other sectors for the first quarter of 2016. Agriculture is not disaggregated as a separate
sector in these figures.

FIGURE 2: CONTRIBUTION TO GDP BY SECTOR, Q1 2016

                                                                                         Trade, catering and
                                                                                         accommodation (34%)

                                                                                         Manufacturing (30%)

                                                                                         Mining & Quarrying (17%)

                                                                                         Construction (9%)

                                                                                         Agriculture, Forestry and
                                                                                         Fishing (5%)

                                                                                         Electricity, gas and water
                                                                                         (5%)

                                                                     Source: StatsSA, 2016, Gross Domestic Product

                                                          5
The reported number of commercial farmers in South Africa varies. AgriSETA (2016) reports
that there are over 40,000 commercial farms registered for VAT with SARS. Of this number fewer
than 2,500 reportedly produced more than half of gross farm income (Kane-Berman, 2016). This
means as a sector, most agricultural enterprises are small in size, with a few large players making
up the lion’s share of GDP contributions. Most commercial farms have an annual turnover of less
than R1 million, which is borne out in the WSP data, which this year reports that of the 19 834
AgriSETA members, 17,475 are categorised as small, (1-49 employees) while only 698 members
are categorised as large (more than 149 employees).
   The number of commercial farmers by racial breakdown is not readily available, but according
AgriSA 700 of its black members are commercial farmers. Afasa says a third of its 10 000 members,
spread across livestock, field crops, and horticulture, are “farming for the market,” but that only
2% of them are doing so successfully (Kane-Berman, 2016). Thus, many South African farms are
hand-to-mouth operations, regardless of their categorisation as ‘subsistence’ or ‘smallholder’, and
require significant support to become sustainable. Those farmers categorised as ‘emerging’ are
attempting to graduate from small-scale farming to commercial, but again require support in the
form of development finance, managerial mentoring and enterprise development. The reported
number of emerging farmers ranges from 50,000 to 120,000 (IRR, 2016), and some of the biggest
numbers of emerging farmers are in timber and sugar. These remarks point to the need for skills
development in the agricultural sector, to bolster existing farming concerns, as well as bringing
new skills into the industry. The effect of shifts in land reform for rural skills development will be
taken up in chapter 2.
   The figure below indicates the gross value of agricultural products from 2010 – 2015. A sharp
decline was observed from 2014 to 2015, a trend which is expected to continue into 2016, with
drought as one of the major contributing factors to this decrease in value.

FIGURE 3: GROSS VALUE OF AGRICULTURAL PRODUCTS, 2016
 78 000
                                                                          75 416
 76 000
 74 000
 72 000                                                          70 577                 70 994
 70 000                                    68 093
 68 000                     66 913
             65 605
 66 000
 64 000
 62 000
 60 000
              2010           2011           2012                 2013     2014            2015
                                              Rands (Millions)

                                                                                   Source: Stats SA 2016
   The value of South African exports of agricultural products increased on a steady pace between
2010 to 2013. A major increase in exports was in 2014 and a sharp decline in 2015.
   The agricultural sector is seen as a critical employer with larger scale farming operations not
only creating many jobs in rural communities, but also being a catalyst in creating downstream
business and employment opportunities within the agri-processing and manufacturing sectors
(FEM, 2015). The agriculture sector has strong linkages with many sectors including tourism,
manufacturing, wholesale and retail among others. Backward linkages in manufacturing are
created during the purchase of fertilisers, chemicals and implements, and forward linkages are

                                                      6
established through the supply of agricultural raw materials to the manufacturing industry.
Agricultural products such as vegetables, fruit, dairy products and meat are marketed through
retail shops straight from the farm. The agricultural sector therefore directly and indirectly creates
employment for a significant number of people.
   Statistics South Africa (2014) reported that more than 75% of all national farm operation costs
were attributed to labour, reiterating the centrality of labour concerns to the sector. Such a labour
intensive industry with linkages to many other value chains offers shared benefits for skills
development in the sector. Partners up and down the value chain will benefit from improved
operations and efficiencies while employees will have improved quality of life with improved skills
levels. The South African food security will be enhanced through sustainable farming practices in
small-scale and commercial farming alike.
1.3.2. Economic outlook for the sector
   Business Monitor International (July, 2016) holds a mixed outlook for the South African
agricultural market. This is due to the effects of the drought and El Niño on corn and wheat. The
weak rand, weather volatility and falling farm incomes are forecast to exert downward pressure
on the market. However, in the longer term it is predicted that revenue in the sector will be
boosted by a growth of about 40% from food consumption due to the growth of the middle class
and disposable incomes. BMI estimates that annual food consumption revenue will reach over
R609 billion in 2018.
   In the 2015/2016 financial year corn production was expected to decline by 38.8% and sugar
production to decline by 20.2% due to the severe drought and El Niño. However, poultry
production will increase by 1.2% and pork production will rise by 2.1%. The effect of the drought
and climate change on skills development will be taken up in Chapter 2.

1.4. EMPLOYER PROFILE
   The AgriSETA members’ data base includes some 19,834 employers. When one looks at this
data disaggregated by sector and province, the numbers do not add up exactly due to overlap of
provincial or sectoral boundaries. 17,139 employers are categorised as small, (1-49 employees),
1,611 are medium (50-149 employees) while only 653 members are categorised as large (more
than 149 employees). Among registered employers, there were 13,946 employers in the primary
sector, most of them small companies. The primary sector constitutes 70 % of all registered
employers, followed by fibre (11%) and red meat (6 %). The sugar, coffee/tea and tobacco
subsectors have the fewest registered employers, jointly accounting for about 1% of all registered
employers in the sector.
   The provincial distribution of employers registered with AgriSETA is reflected in the pie chart
below, with provincial distribution by employer size in figure 4.

                                                   7
FIGURE 4: PROVINCIAL DISTRIBUTION OF EMPLOYERS REGISTERED WITH AGRISETA

                                                                                                   Eastern Cape
                                                  Eastern Cape, 9%

                                                                                                   Freestate
                                                                     Freestate, 7%
        Western Cape, 29%
                                                                                                   Gauteng

                                                                                                   KwaZulu-Natal

                                                                                 Gauteng, 17%
                                                                                                   Limpopo

                                                                                                   Mpumalanga
    Northern Cape, 8%
                                                                                                   North West

              North West, 3%                                                                       Northern Cape
                                                               KwaZulu-Natal, 14%
                        Mpumalanga, 12%
                                          Limpopo, 1%                                              Western Cape

                                                                          Source: AgriSETA members’ database, 2016
   What we see in the figure above is that the Western Cape at 29% is the most represented
province in the AgriSETA membership database, followed by Gauteng (17%), KwaZulu-Natal (14%)
and Mpumalanga (12%), and the Eastern Cape, Northern Cape and the Free State 9%, 8% and 7%
respectively. The lowest number of AgriSETA members ranged between 3 % for Northwest and 1%
for Limpopo province. The AgriSETA database does not represent all farming enterprises in the
country, and thus must be treated with a fair degree of caution when applying it to a national
context. For instance, Limpopo is a known farming province, but is underrepresented in AgriSETA
numbers. Nevertheless, there is significant number of stakeholders expressing an interest in skills
development in the agricultural sector.
   What these figures reveal is that AgriSETA needs to meet the needs of two distinct
constituencies: top levy payers and small-scale farmers. The needs of a large commercial farm
differ from those of a subsistence farmer. There is a need to work towards supporting the skills
development needs of top levy payers because of their large contributions and ability to absorb
labour, but there is also a democratic responsibility towards ensuring that the large majority of
small-scale farmers attain skills that make them sustainable for the sake of the food security of
their communities. These issues are further taken up in chapter 2.

1.5. LABOUR MARKET PROFILE
   Turning from the employer profile, we will now look at the employee profile of the agricultural
sector. The labour market trends presented here have largely been drawn from Quarterly Labour
Force Survey (QLFS) data from StatsSA, supplemented with data from the AgriSETA WSP and
membership databases. It is important to recognise the limitations of both these datasets so that
unfounded extrapolations are not made.
   The QLFS data does not distinguish between employment figures for agriculture, fisheries and
forestry or between the informal and formal sectors. Data for domestic workers is aggregated with

                                                         8
agricultural data and the data only reflects the economically active population between the ages
of 15 and 64. Where possible, this data will be compared to the AgriSETA WSP data, which is also
limited in its scope in that it only represents about 10% of employers affiliated with the SETA.
   South Africa recorded an unemployment rate of 24.5 %in the fourth quarter of 2015 (narrow
definition) (StatsSA, QLFS, Q4, 2015). If people who are no longer actively seeking work are
included, the broad unemployment rate rises to 35.22% (StatsSA, QLFS, Q4, 2015). South Africa
now has a NEET (not in employment, education or training) youth population of approximately 3, 4
million people. The sheer scale of the crisis demands each and every sector’s involvement and the
particular impact of this youth bulge is addressed in chapter 2.
   Over the twelve-month period from January 2015 to January 2016, employment in the
agricultural sector decreased from 891 000 to 877 000. Departing from this downward trend, the
QLFS conducted by StatsSA in the first quarter of 2016 put the agricultural sector amongst the few
industries that experienced a quarterly increase in employment levels (16,000 employment
opportunities were observed). BMI has attributed some of this growth to huge sums being
invested in the “Proudly South African” food campaign to encourage consumers to buy
domestically grown and produced goods.
1.5.1. Provincial distribution of employees
  The table below indicates that the Western Cape has the highest number of agricultural
employees at 228 000, this is followed by KwaZulu-Natal at 136 000 employees and Limpopo at
120 000 employees (StatsSA, 2016).

TABLE 4: DISTRIBUTION OF EMPLOYEES BY PROVINCE IN AGRICULTURE, FISHERIES AND FORESTRY
Province                2010        2011          2012         2013         2014         2015          2016
Western Cape           135 000    107 000       142 000      162 000      131 000      214 000        228 000
Eastern Cape            66 000     63 000        58 000       67 000       88 000       89 000         95 000
Northern Cape           54 000     57 000        48 000       45 000       60 000       43 000         40 000
Free State              63 000     62 000        62 000       70 000       54 000       64 000         72 000
KwaZulu Natal          114 000     95 000        98 000       96 000      102 000      141 000        136 000
North West              35 000     33 000        32 000       42 000       42 000       57 000         54 000
Gauteng                 31 000     74 000        51 000       53 000       55 000       34 000         37 000
Mpumalanga              81 000     84 000       106 000       77 000       89 000       92 000         95 000
Limpopo                 70 000     94 000       121 000      102 000      121 000      126 000        120 000
Total                  649 000    671 000       718 000      713 000      742 000      860 000        877 000
                                                                                                 st
                             Source: Statistics South Africa, 2016. Quarterly Labour Force Survey.1 Quarter 2016
   These employment statistics reveal a bias in AgriSETA WSP data, where Limpopo was shown to
have a minimal employer profile. What this QLFS data indicates is there is room for substantial
engagement with Limpopo, to up their provincial contribution towards skills levies, thereby increasing
the skills resources pool across the board.
   This QLFS data is further broken down in the bar graph below, to examine the household levels
of agricultural activity by province.

                                                      9
FIGURE 5: SUBSITENCE AGRICULTURAL ACTIVITY PER HOUSEHOLD, %

 35

 30

 25

 20

  15

  10

  5

  0
       Eastern Cape Free State    Gauteng      KZN            Limpopo      Mpumalanga North West   Northern Western Cape
                                                                                                     Cape

                                   Livestock   Poultry        Vegetables       Crops     Other

                                                                                                           st
                                  Source: Statistics South Africa, 2016. Quarterly Labour Force Survey.1 Quarter 2016

1.5.2. Gender
  Figure 6 below gives the breakdown of the agricultural sector by gender as reported in the first
quarter of 2016 (StatsSA, QLFS, Q1, 2016).

   Figure 6: GENDER DISTRIBUTION OF LABOUR IN THE AGRICULTURAL SECTOR

       80
       70
       60
       50
       40
       30
       20
       10
       0
                   Jan-Mar 2015                Jul-Sep 2015                       Oct-Dec 2015            Jan-Mar 2015
                                                              Female    Male

                                                               10
The male to female percentage for agricultural labour was found to be 33.5% for females and
67.5% for males, as indicated above.
1.5.3. Race
  WSP (2016) data reveals that black Africans comprise the majority of employees in the sector at
64%, followed by Coloured employees at 23%and whites representing 12% of the agricultural
workforce. Asians only represent 1% of workers in the agricultural sector.

FIGURE 7: EMPLOYEES BY RACE

                                                                                              Africans
                                                                    Africans, 64%

                     White, 12%
                                                                                              Coloured

                      Indian, 1%
                                                                                              Indian

                      Coloured, 23%
                                                                                              White

                                                                   Source: AgriSETA WSP Submissions, 2016
  WSP data from all the sub-sectors shows only 601 employees with disabilities out of 244,224
employees within large Agricultural enterprises were selected for training.
1.5.4. Age
   Half of the people employed in the agricultural sector by employers submitting WSP, are
between the ages of 35 and 55. Young people below the age of 35 constitute 42% of people
employed whilst 8% are above the age of 55. In total, 92% of the workers are below the age of 55.
   These demographic realities were validated in interviews with stakeholders, who all
commented on the need for skills transfer from those exiting the workforce to those coming up
the ranks. The issue of unskilled youth presents a difficulty for skills transfer, because some base
level qualification is needed to enter the skilled workforce in the first place. This presents
challenges for skills development, because of the double hurdle of experienced employees exiting
at a rate not able to be matched by the numerous youth demographic. Analysis of WSP
submissions by employers in 2016 shows that the majority of employees are in the primary sub-
sector (48%) followed by the grain sub-sector (11%) and poultry at 19% each. Coffee & Tea, sugar
and fibre sub-sector has the least representivity of workers.
1.5.5. Occupational categories
   This chapter concludes by looking at the reported existing skills levels in agricultural enterprises
as reported WSPs for 2016. The necessary skills vary from highly skilled managerial and
professional occupations to fairly low level skills for elementary occupations. The majority of the
workforce comprises elementary occupations, while managers comprise 6% of the workforce.

                                                   11
FIGURE 8: EMPLOYMENT CATEGORIES WITHIN LARGE ORGANISATIONS

                                                                         Managers
                                    6%       3%
                                                   6%                    Professionals

      51%                                                5%
                                                                         Technicians and Associate
                                                              4%         Professionals
                                                                         Clerical support workers
                                                               12%
                                                                         Service and Salesworkers

                                                                         Skilled Agricultural and related
                                                                         Trade workers
                                                  13%                    Plant and Machine Operations

                                                                         Elementary Occupations

                                                                     Source: AgriSETA WSP Submissions, 2016

1.6. CONCLUSION
   Having a firm sense of the agricultural sector’s contribution to the economy in terms of
production and employment, we can now more readily identify key skills issues that speak to this
economic reality. The remainder of this document covers the following issues that speak to Sector
Skills Planning. Chapter 2 identifies key skills issues as framed by government legislation, policies
and frameworks, and identifies key macro socio-economic and environmental factors that function
as key change drivers in addressing skills development in the agricultural sector.

   Where Chapter 2 offers a high-level overview and Chapter 3 becomes much more granular. In
chapter 3, the mismatches between the demand and supply of skills in the sector are examined by
drawing on the views of industry stakeholders and validating these views through secondary data
analysis. Chapter 4 points to key partnerships in the sector, examines existing partnerships and
asks what future partnerships might be necessary to address the skills gaps identified in Chapter 3.
The final chapter draws together these macro and granular skills issues and asks what the key skills
priorities should be for AgriSETA over the next five years. These priorities will act as a guiding set
of objectives that will inform the planning processes of the AgriSETA’s annual performance and
strategic plans, where they will be quantified and operationalised.

                                                   12
CHAPTER 2: KEY SKILLS ISSUES

2. INTRODUCTION

H    aving outlined the agricultural sector profile in chapter one, this chapter is concerned with
     two specific areas that shape the key skills issues in the agricultural sector Firstly, this chapter
identifies factors that drive change in the sector, influencing the need for the particular skills.
Secondly, the agricultural sector is aligned with national strategies and plans providing a snapshot
of the key policy and planning documents that shape skills planning in this sector.

2.1. CHANGE DRIVERS
   In this section key themes and issues driving change and influencing skills demand and supply in
the agricultural sector are addressed. These change drivers were identified through a thematic
synthesis of internal stakeholders’ views, policy documents, existing research and stakeholder
engagement, and pertinent current affairs issues reported in the media over time.
2.1.1. Legislative loopholes affecting skills development
   Wiltshire (2016) has drawn attention to a legislative loophole with regards to skills
development in the agricultural sectors. She notes that employers receive no subsidies for training
temporary farmworkers, which comprise a large part of the agricultural workforce. This is because
“the Skills Development Act defines learners dichotomously as either (fully) employed learners
(18.1) or (fully) unemployed learners (18.2). This means that temporary (partially) employed
learners are not specifically catered for”. This has a detrimental effect on temporary farmworkers
who will not receive any skills development while they are employed or unemployed, because
“skills development legislation is premised on the assumption of labour market security and does
not recognise the growing numbers of casualised workers in South Africa (52%)” (ibid). This
                                                    13
research points to the need to support temporary workers with skills especially needed for crop
production, livestock farm workers and harvesters. These required skills are supported by data
obtained from the 2017 WSP/ATR submissions.
2.1.2. Land and agrarian reform
   The government places high value on the need for land reform as a form of redress for
historical issues of dispossession. There is a target of transferring 30% of agricultural land to black
ownership by 2025 (Xingwana, 2008). However, the success of land reform to date has been
limited with no increase in production or economic growth. This is because many beneficiaries lack
the necessary production skills and business acumen to farm effectively. The DRDLR’s 2012
Midterm Review highlighted the need for mentors and strategic partners to help emerging
farmers succeed. However, it was reported in July 2016 that land reform had the potential to
“deter investment in agribusiness activities” and that the “growing exodus of South African
farmers” could have a “detrimental impact on the agribusiness sector, depriving it of knowledge
and skills” (BMI, 2016). The 2014 APAP noted that small commercial farmers, of which land reform
beneficiaries are a subset, are disappearing “at an alarming rate”, with smaller farms being taken
out of the market by bigger producers who survive because of economies of scale. These findings,
supported by research and already existing programme interventions, point to the urgent need to
retain existing skills in the sector, to mentor emerging farmers in management skills and
enterprise development in the field (Kane-Berman, 2016, stakeholder interviews, 2014, CDE,
2008).
2.1.3. Agricultural co-operatives
    It was reported by BMI that 80% of farmers in sub-Saharan Africa are smallholders. It is argued
that, in the long term, African farming will have to move away from subsistence agriculture to be
competitive and profitable in the genetically modified farming sector (BMI, 2016). For this reason,
“partnerships with food companies, the development of co-operatives and greater access to
credit” are needed to develop the sector more generally (BMI, 2016). Agricultural co-operatives
are explicitly mentioned in the policy documents outlined above as requiring support to ensure
their sustainability. Indeed, there have been calls for a new rural development subsector to be
established to cater specifically for the needs of co-operatives, in response to both stakeholder
needs and the policy directive contained in the NSDS III (Internal Consultation, Internal
Stakeholder, 2015-16). These co-operatives face the dual challenge of needing technical
production skills as well as corporate governance skills. Smaller agricultural co-operatives do not
stand a competitive chance in the market, with major retailers buying directly from commercial
farms in both urban and rural areas (Kane-Berman, 2016). Furthermore, collective ownership
often entails disputes and conflict which works against efficient management of business concerns
(ibid; Internal Stakeholder, 2015-16). Supporting these observations, in stakeholder engagements
with primary agricultural co-operatives in Katlehong in Johannesburg’s East Rand in 2014, it was
noted that technical skills training was badly needed, as well as corporate governance and
financial management skills.
2.1.4. Climate change, drought and food security
   The 2015/2016 drought, a result of the worldwide El Niño effect, is said to be the worst to hit
the country since 1992, and has shifted the domestic maize market into a net important situation
(BMI, 2016, GrainSA, 2015, AgriSA). Maize production is expected to decline by 38.8% year-on-
year, while sugar production will decline by 20.2% 2015/16 (BMI, 2016). Already only 45.6 % of
South Africans are food secure (HSRC, 2014), and the drought could have further deleterious
effects on food security. The drought, along with other challenging environmental factors, could
act as a disincentive from pursuing an agricultural career. National food security depends on a
                                                   14
“capital-intensive agricultural sector based on economies of scale” (Kane-Berman, 2016), and thus
smaller producers are even more at risk during the drought – a difficult economic and
environmental climate in which to take risks. Subsistence and smaller commercial farms should be
offered support, but equally commercial farms need to attract those with “green” knowledge skills
to ensure food security for South Africans generally.
2.1.5. The Green Economy
   There is an increasing emphasis on the “green economy” in government policy documents (see,
NDP, NGP). In the agricultural sector, this refers to the use of environmentally sustainable farming
practices. These sustainable practices require new knowledge and skills that cuts across farming
enterprises of all sizes. The need for green knowledge is conveyed through industry-specific
training interventions across different subsectors. Green knowledge, at this stage, is largely a
higher NQF level skill. Research and development on the role of green knowledge in the
agricultural skills sector should be conducted. For instance, there is need for the up-skilling of farm
workers in energy-efficient methods, resource sustainability, agro-processing and other green
technologies. This should also be done through coordination with other sectors, given the cross-
cutting nature of environmental concerns (Environmental Sector Skills Plan, No date).
2.1.6. The youth bulge and skills development
   Youth, people aged 15 – 35, comprise 36% of the South African population, and 70% of the
unemployed (StatsSA, 2016; Merten, 2016). It was reported that black Africans today, aged
between 25 and 35, are less skilled than their parents would have been. This presents a huge
challenge for skills development generally, and specifically for the agricultural sector, with a
waning interest in agriculture and rapid urbanisation. Confirming this, Mr Jerry Madiba, CEO of
AgriSETA, has commented that “young people do not find agricultural careers attractive” (Kane-
Berman, 2016, p.6). The South African Confederation of Agricultural Unions (SACAU) has called on
stakeholders to recognise agriculture as a “high skilled business with great opportunities for the
youth” (AgriSA, 2016). But when youth are largely unskilled or undereducated, there needs to be
major upskilling across the board before they can take advantage of available employment
opportunities. Demographically, there is a generalised mismatch between the demand for skilled
labour, and the supply of unskilled labour.
2.1.7. Technology and mechanisation
   Development and production concerns in agriculture place an emphasis on technological
advancement, to increase productivity to keep up with increasing demands for food; however
there has not been a concomitant focus on technological skills advancement in the sector. The
threatening maxim of the sector is that “as agriculture becomes more mechanised, the unskilled
labour force is replaced by a significantly smaller skilled labour force” (Employment Conditions
Commission, 2013). However, BMI (2016) reported that, “the agricultural mechanisation rate in
Africa is the lowest in the world”. Nevertheless, South Africa’s situation is somewhat different to
the rest of Africa. For instance, South Africa, Morocco and Tunisia comprise the majority Africa's
new tractor sales (BMI, 2016). Thus, to remain competitive globally, skills training in agriculture
needs to keep up with technological progress. Internal consultation with AgriSETA staff reveals
that there is an increasing demand for artisans and technically qualified workers in response to
increased mechanisation in the sector.

                                                   15
2.1.8. Trade agreements
   Poultry Imports
   The African Growth and Opportunity Act (AGOA) is a US Trade Act that enhances market access
to the US for qualifying Sub-Saharan African countries based on certain conditions (AGOA, 2016).
To gain access to these markets, South Africa is currently negotiating a large US poultry import
deal which would lead to the import of over 65 000 tonnes of US poultry a year (BMI, 2016),
putting the South African poultry industry under severe pressure. The outcomes of this deal are
being monitored by agribusiness experts, but the knock-on effect of this type of deal could have
implications for skills development in the sector.
   Brexit& EU trade agreements
   While the effects of Brexit on South African agribusiness are yet to become clear, what is clear
is that South Africa would have to renegotiate its trade agreements with the UK. Senior
agricultural economist in Agricultural Business Chamber, Mr Wandile Sihlobo, commented that,
“market access benefits that existed through the agreement would no longer apply” (Mchunu,
2016). Agricultural subsidies are one of the key issues related to Brexit. The UK is a critic of current
European subsidies which have historically had an impact on African farmers’ export capacity (Sow
&Sy, 2016). The outcome of renegotiated trade agreements will have to be monitored.

2.2. ALIGNMENT WITH NATIONAL STRATEGIES AND PLANS
   The following section draws attention to the national strategy and planning documents that
frame AgriSETA’s mandate for skills development. The legislative and policy frameworks speak to
AgriSETA’s constitutional mandate as a public institution governed by the Public Finance
Management Act to develop skills programmes in accordance with the Skills Development Act,
(1998), the Skills Development Levies Act (1999), and the National Qualifications Framework Act
(2008).
   There are two seminal strategic documents that underpin AgriSETA’s mandate for skills
planning, namely: the White Paper on Post School Education & Training (2013) and the National
Skills Development Strategy III (NSDS III) (2011 – 2016). Both of these documents highlight the
SETAs roles in developing clear, sector-specific linkages between education and the workplace
through an analysis of the demand and supply of skills in their sector. These documents call for
credible institutional mechanisms for skills planning, programmes that are occupationally
oriented, and responsive higher and further education and training institutions. Furthermore,
attention should be given to the needs of local, community enterprises, co-operatives and the like,
with a focus on developing their skills capacities to meet the needs of their particular
environments, thereby closing the gap between the rural and urban South African economies.
   The NSDS III is informed and guided by the following overarching government plans: The
National Skills Accord as one of the first outcomes of the New Growth Path, the Industrial Policy
Action Plan, 2013/14 – 2015/16 (IPAP), the Comprehensive Rural Development Programme, the
Human Resources Development Strategy for South Africa 2030, the National Development Plan
2030 (NDP), and the Integrated Sustainable Rural Development Strategy (ISRDS). Collectively,
these government plans and programmes recognise the need for correcting structural imbalances
in the economy through “decent employment through inclusive growth”, “a skilled and capable
workforce to support an inclusive growth path”, “vibrant equitable and sustainable rural
communities contributing towards food security for all”, to “protect and enhance our
environmental assets and natural resources”, with the support of “an efficient, effective and
development-oriented public service” (NDP). All these priorities speak to the need for relevant and
targeted skills provision that promotes economic sustainability in the agricultural sector, as well as

                                                    16
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