HORTICULTURE SUB-SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA
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HORTICULTURE SUB-SECTOR SKILLS PLAN
2018-2019
Prepared on behalf of the Sector by AgriSETA
April 2018
ABBREVIATIONS AND ACRONYMS ABBREVIATION/ACRONYM DESCRIPTION AFASA African Farmers’ Association of South Africa AFSTA African Horticulture Trade Association AGOA African Growth and Opportunity Act AgriSETA Agricultural Sector Education and Training Authority APAP Agricultural Policy Action Plan ARC Agriculture Research Council ATI Agricultural Training Institute ATR Annual Training Report BMI Business Monitor International CoS Centres of Specialization 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 GMO Genetically Modified Organisms HEMIS Higher Education Management Information System HTFVs Hard-to-fill vacancies HSRC Human Sciences Research Council ICAC International Cotton Advisory Committee IDGP Integrated Growth and Development Plan IDP Integrated Development Plan IPAP Industrial Policy Action Plan IRR Institute of Race Relations ISF International Horticulture Forum
KZN KwaZulu-Natal
LED Local Economic Development
MAFISA Micro Agricultural Financial Institution of South Africa
NAFU National African Farmers Union
NAMC National Agricultural Marketing Council
NDP National Development Plan
NGP New Growth Path
NEETS Not in Employment, Education or Training
NPO Non-Profit Organization
NQF National Qualifications Framework
NSDS III National Skills Development Strategy III
NSFAS National Student Financial Aid Scheme
NWGA National Wool Growers Association
OSTA Official Horticulture Testing Laboratory
QLFS Quarterly Labour Force Survey
QCTO Quality Council for Trades and Occupations
RPL Recognition of Prior Learning
SACAU Southern African Confederation of Agricultural Unions
SADC Southern African Development Community
SAIVCET South African Institute for Vocational and Continuing Education and
Training
SAQA South African Qualifications Authority
SARS South African Revenue Service
SASA South African Horticulture Association
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
TBC To be confirmed
TVET Technical Vocational Education and Training
ii
WSP Workplace Skills Plan
WTO World Trade Organization
iii
TABLE OF CONTENTS
ABBREVIATIONS AND ACRONYMS ................................................................................................................. i
TABLE OF CONTENTS.................................................................................................................................... iv
LIST OF TABLES AND FIGURES ...................................................................................................................... vi
EXECUTIVE SUMMARY ................................................................................................................................ vii
CHAPTER 1: SECTOR PROFILE........................................................................................................................ 1
INTRODUCTION ............................................................................................................................. 1
1.2 SCOPE OF COVERAGE .................................................................................................................... 1
1.3 KEY ROLE PLAYERS ........................................................................................................................ 4
1.4 ECONOMIC PERFORMANCE .......................................................................................................... 5
1.5 EMPLOYER PROFILE ...................................................................................................................... 7
1.6 LABOUR MARKET PROFILE ............................................................................................................ 8
1.7 CONCLUSION ............................................................................................................................... 13
CHAPTER 2: KEY SKILLS ISSUES .................................................................................................................... 14
INTRODUCTION ........................................................................................................................... 14
2.2 CHANGE DRIVERS ........................................................................................................................ 14
2.3 ALIGNMENT WITH NATIONAL STRATEGIES AND PLANS ............................................................. 17
2.4 IMPLICATIONS FOR SKILLS PLANNING ........................................................................................ 18
2.5 CONCLUSION ............................................................................................................................... 18
CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS ..................................................................... 19
INTRODUCTION ........................................................................................................................... 19
3.2 OCCUPATONAL SHORTAGES AND SKILLS GAPS .......................................................................... 19
3.3 EXTENT AND NATURE OF SUPPLY ............................................................................................... 25
3.4 PIVOTAL LIST ............................................................................................................................... 28
3.5 CONCLUSION ............................................................................................................................... 30
CHAPTER 4: SECTOR PARTNERSHIPS........................................................................................................... 31
INTRODUCTION ........................................................................................................................... 31
4.2 EXISTING PARTNERSHIPS ............................................................................................................ 31
4.3 EMERGING PARTNERSHIPS ......................................................................................................... 34
4.4 CONCLUSION ............................................................................................................................... 34
CHAPTER 5: SKILLS PRIORITY ACTIONS ....................................................................................................... 35
iv
INTRODUCTION ........................................................................................................................... 35
5.2 KEY FINDINGS .............................................................................................................................. 35
5.3 CONCLUSION AND RECOMMENDED ACTIONS ........................................................................... 36
BIBLIOGRAPHY ............................................................................................................................................ 44
vLIST OF TABLES AND FIGURES
FIGURES
FIGURE 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR ....................................................... 3
FIGURE 2: SKILLS DEVELOPMENT LEVIES ...................................................................................................... 3
FIGURE 3: GROSS FARMING SECTOR INCOME .............................................................................................. 6
FIGURE 4: PROVINCIAL DISTRIBUTION OF HORTICULTURE EMPLOYERS REGISTERED WITH AGRISETA…….8
FIGURE 5: PROVINCIAL BREAKDOWN – HORTICULTURE EMPLOYEES ........................................................ 10
FIGURE 6: GENDER BREAKDOWN ............................................................................................................... 11
FIGURE 7: EMPLOYEES BY RACE .................................................................................................................. 11
FIGURE 8: EMPLOYMENT BREAKDOWN WITHIN THE HORTICULTURE SUBSECTOR .................................. 12
FIGURE 9: UNIVERSITIES THROUGHPUT FOR AGRICULTURAL STUDENTS GRADUATING IN 2013-2014 .... 26
FIGURE 10: NUMBER OF POST-SCHOOL GRADUATES IN AGRICULTURAL SECTOR .................................... 27
TABLES
TABLE 1: RESEARCH PROCESS AND METHODS .......................................................................................... viii
TABLE 2: ACTIVITIES WITHIN THE HORTICULTURE SUBSECTOR BY SIC CODE .............................................. 2
TABLE 3: KEY AGRICULTURAL ROLE-PLAYERS ............................................................................................... 4
TABLE 4: GROSS INCOME FROM MAJOR HORTICULTURE PRODUCTS.......................................................... 6
TABLE 5: DISTRIBUTION ON EMPLOYEES BY PROVINVE IN AGRICULTURE, 2016/2017 ............................... 8
TABLE 6: CHANGE DRIVERS ......................................................................................................................... 15
TABLE 7: SMALL EMERGING FARMERS AND CO-OPERATIVES HTFV .......................................................... 20
TABLE 8: COMMERCIAL FARMERS HTFVS ................................................................................................... 20
TABLE 9: TOP HTFVS (STAKEHOLDER ENGAGEMENT) ................................................................................ 21
Table 10: TOP EMERGING SUBSECTOR SKILLS AND FUTURE OCCUPATIONAL SHORTAGES ...................... 23
TABLE 11: SCARCE SKILLS AND SKILLS GAPS LIST ........................................................................................ 24
TABLE 12: EMPLOYEES TRAINED BY OCCUPATIONAL CATEGORY AND GENDER ........................................ 27
TABLE 13: THE AGRISETA 2018/19 PIVOTAL LIST ....................................................................................... 28
TABLE 14: AGRISETA PARTNERSHIPS .......................................................................................................... 31
TABLE 15: SKILLS PRIORITIES ....................................................................................................................... 37
viEXECUTIVE SUMMARY
In 2016/17, there was a total of 5263 Horticulture subsector entities registered with the South African
Revenue Services (SARS), contributing 25% of total entities in the agricultural sector. Of these 5263
entities the figure below illustrates that 44% of them contribute to the skills development levy. A total of
R142 million SDL was generated from the Horticulture subsector, accounting for 32% of total agricultural
revenue from SDL.
According to the Industrial Policy Action Plan (IPAP 2), fruits and vegetables are significant commodities
in the agro-processing sector; both are high-value crops and have large labour multipliers. The main fruits
produces in South Africa include grapes. Oranges, lemons, apples, avocados and mangoes. While major
vegetable markets include potatoes, tomatoes, onions and cabbages (National Agricultural Marketing
Council, 2012).
The gross farming income from all agricultural products increased by 12.7% in 2016, this was a result of
the increase in gross income from Horticulture products, which increased by 20.9%, from R65 374 million
in 2015 to R79 043 million in 2016. The graph below outlines the gross value contribution of agricultural
production from 2012 to 2016. Overall, Horticulture products contributed 30% to gross value of
agricultural production in 2016 (DAFF, 2016).
Overall the Horticulture subsector contributes significantly to the agricultural sector in South Africa.
Horticulture is produced throughout the country, with the main regions including the Western Cape,
KwaZulu-Natal and Limpopo. Of the total registered entities with AgriSETA, 25% are from the Horticulture
subsector. And 44% of these entities contribute to the Skills Development levy.
An analysis of data from the subsector shows that the majority of people employed in the subsector are
in Elementary occupations.
External stakeholder engagements identified changing Technology and Mechanization of the subsector;
Land Reform; Youth bulge and Skills Development; and Climate Change and Drought as the key change
drivers currently affecting the subsector.
viiTABLE 1: RESEARCH PROCESS AND METHODS
RESEARCH OBJECTIVES RESEARCH NATURE OF SAMPLE SIZE DATA TIMEFRAME OF RESEARCH
TOPICS OF THE STUDY METHODS THE STUDY COLLECTION THE STUDY OUTPUTS
TOOLS
Labour Provide an Qualitative Analysis of 350 Desktop September – Chapter 1:
Market Profile overview of and most recent registered research November 2017 Sector Profile
and Economic the subsector quantitative information Horticulture (secondary)
Contribution and economic method on the sector industry
contribution stakeholders 2016/17
WSP/ATR
data
(primary)
2016/17
Huge file data
(primary)
Occupational Establish Qualitative Non- 350 Key informant September – Chapter 2: Key
shortages & occupational method probability registered interviews November 2017 Skills Issues
emerging shortages & sampling Horticulture (primary)
skills needs emerging skills method was industry Chapter 4:
needs of the employed to stakeholders Desktop data Sector
Horticulture identify analysis Partnerships
subsector stakeholders (secondary)
from whom Chapter 5: Skills
specific 2016/17 Priority Actions
information WSP/ATR Data
was required (primary
Skills issues & Identify the Quantitative Gathering 5% were The September – Chapter 2: Key
demands key method empirical cooperative quantitative November 2017 Skills Issues
occupational evidence farmers, 11% survey
shortages, using primary were small gathered data Chapter 3:
demands & data sources, and emerging on the Occupational
supply with as well as farmers and unskilled, Shortages and
regard to undertaking 84% were skilled and Skills Gaps
unskilled, theoretical, commercial generic
skilled, desktop farmers occupational
generic research shortages &
Horticulture using 350 skills gaps
subsector secondary registered
occupations data sources Horticulture 2016/17
and emerging industry WSP/ATR Data
skills needs in stakeholders (primary)
the
agricultural Key informant
sector interviews
(primary)
Desktop data
analysis
(secondary)
viii1. DOCUMENT REVIEW
A document review was conducted to establish the economic performance and trends of the
Horticulture 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 synthesize the key economic,
policy and training issues affecting the Horticulture subsector, and to identify key skills issues.
2. SCARCE AND PIVOTAL LIST FORMULATION
The scarce skills, skills gaps and pivotal skills lists were arrived at through both secondary data analysis
and the numbers made available in previous Sector Skills Plans, large and small workplace skills plans
(WSPs), large and small annual training reports, (ATRs), and primary data analysis obtained at the
two-day AgriSETA stakeholder conference (30-31 August 2017), interviews and data collection.
3. SUMMARY OF KEY FINDINGS
In summary, the economic outlook of the sectors dependent on Horticulture supply is stable and for some
produce there is a marginal growing trend (ARC, September 2017). Overall the Horticulture subsector
contributes significantly to the agricultural sector in South Africa. Horticulture is produced throughout the
country, with the main regions including the Western Cape, KwaZulu-Natal and Limpopo. Of the total
registered entities with AgriSETA, 25% are from the Horticulture subsector. And 44% of these entities
contribute to the Skills Development levy.
An analysis of data from the subsector shows that the majority of people employed in the subsector are
in Elementary occupations.
ixCHAPTER 1: SECTOR PROFILE
INTRODUCTION
Chapter 1 of this report provides an overview of the agricultural sector, paying particular attention to the
Horticulture subsector in South Africa. The first section of this chapter looks at the scope of the Horticulture
subsector’s coverage. Followed by the second section, which outlines AgriSETA stakeholders and key role-
players in the sector. The third section looks at the economic performance of the overall agricultural sector,
zooming into the contribution of the Horticulture industry to the South African economy. The fourth section
explores the employer profile, based on the AgriSETA WSP/ATR data submitted for 2016/17. Finally, the last
section provides a labour market profile where the number and demographics of people employed in the
sector is explored. Essentially, chapter one of this document is intended to set the scene for the skills issues
delved into in the subsequent chapters.
1.2 SCOPE OF COVERAGE
The scope of AgriSETA covers the agricultural sector, from input services to the farm, activities on the farm
and first level processing activities from the farm. The Horticulture subsector is classified into nine (9)
agricultural and economic focuses, namely, the growing of vegetables, horticulture specialties and nursery
products; Ornamental Horticulture; growing of fruit, nuts, beverage and spice crops; growing of coffee and
tea including coconuts, cocoa, nuts, olives, dates etc.; growing of trees as second crop farmers; fruit packed
in cartons, fruit juice concentrate drummed and fruit juice in container ready for consumption; fruit exporters
and importers; processing and marketing of coconuts, cocoa, nuts, olives, dates, etc.; and service to nut
1farmers and companies. The table below outlines the various agricultural and economic focus areas in the
Horticulture subsector, including the Standard Industrial Classification (SIC) codes and descriptions.
TABLE 2: ACTIVITIES WITHIN THE HORTICULTURE SUBSECTOR BY SIC CODE
SUBSECTOR SIC CODE SIC DESCRIPTION
11120 Growing of Vegetables, Horticultural specialties and nursery products
Growing of Vegetables, Horticultural specialties (Including
11121 Ornamental Horticulture)
and nursery products.
11130 Growing of fruit, nuts, beverage, and spice crops.
Growing of coffee and tea including coconuts, cocoa, nuts, olives,
11301
dates, etc.
HORTICULTURE 12109 Growing of trees as second crop by farmers
Fruit packed in cartons, fruit juice concentrate drummed and fruit
30132 juice in container
ready for consumption
30133 Fruit exporters and importers
Processing and marketing of coffee and tea including coconuts, cocoa, nuts,
30493
olives, dates, etc.
62112 Service to nut farmers and companies
Source: AgriSETA, 2016
Overall, the agricultural sector comprises of 11 subsector committees, which represent their industry interest
to AgriSETA. These include: 1) Red meat; 2) Horticulture; 3) Grains and Cereals; 4) Fibre; 5) Aquaculture; 6)
Poultry; 7) Milling, Pet food, and Animal feed; 8) Pest control; 9) Seed; 10) Sugar; and 11) Tobacco. The
Horticulture subsector constitutes 24% of the overall distribution of entities represented by AgriSETA. The
graph below outlines the relative size of membership number by subsectors, as captured in the AgriSETA
member database of 2016.
2FIGURE 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%)
Source: AgriSETA member database, 2016
1.2.1 Revenue from Skills Development Levies
In 2016/17, there was a total of 5263 Horticulture subsector entities registered with the South African
Revenue Services (SARS), contributing 25% of total entities in the agricultural sector. Of these 5263 entities
the figure below illustrates that 44% of them contribute to the skills development levy. A total of R142 million
SDL was generated from the Horticulture subsector, accounting for 32% of total agricultural revenue from
SDL.
FIGURE 2: SKILLS DEVELOPMENT LEVIES
3500
3000
2500
NUMBER
2000
1500
1000
500
0
Levy-paying Non-levy paying
Number 2296 2967
Percentage 44% 56%
Source: AgriSETA members’ database, 2016
31.3 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.
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 and Department of Higher colleges and skills development. Sets the
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 and Reform
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
4Department or Relevance to agricultural skills
Strategic contribution
organisation development
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
Development Bank of South
sector, agribusiness, and emerging farmers.
Africa
Credit and assistance
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 favorable agribusiness
Agricultural Business Chamber
environment
Agribusiness Conglomerate organization providing
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
1.4 ECONOMIC PERFORMANCE
1.4.1 Overview
Overall, Agriculture contributes 2.4% to South Africa’s gross domestic product (GDP) and 4.4% of total
employment (IRR, 2016). Notwithstanding the relatively small share of the total GDP, primary agriculture is
an important sector in the South African economy; the value of primary agricultural production in South
Africa was R263 billion in 2016, while its contribution to the GDP was estimated at 72.2 billion in 2015 (DAFF,
2016). In addition, the sector plays an important role in job creation, especially in the more rural parts of the
country.
According to the Industrial Policy Action Plan (IPAP 2), fruits and vegetables are significant commodities in
the agro-processing sector; both are high-value crops and have large labour multipliers. The main fruits
produced in South Africa include grapes, oranges, lemons, apples, avocados and mangoes. While major
vegetable markets include potatoes, tomatoes, onions and cabbages (National Agricultural Marketing
Council, 2012).
The gross farming income from all agricultural products increased by 12.7% in 2016, this was a result of the
increase in gross income from Horticulture products, which increased by 20.9%, from R65 374 million in 2015
5to R79 043 million in 2016. The graph below outlines the gross value contribution of agricultural production
from 2012 to 2016. Overall, Horticulture products contributed 30% to gross value of agricultural production
in 2016 (DAFF, 2016).
FIGURE 3: GROSS FARMING SECTOR INCOME
Source: Economic Review of the South African Agriculture, DAFF, 2016
The table below illustrates the gross income from major Horticulture products in 2015 and 2016. As
mentioned above, the gross income from Horticulture products increased by 20.9% in 2016. The data
outlined below shows that income from vegetables increased by 33.5% from R18 527 million in 2015 to R24
726 million in 2016; deciduous fruit increased by 21.6% from R17 400 million to R21 159 million; citrus fruit
increased by 19.8% from R14 815 million to R17 749 million in 2016; and subtropical fruit increased by 13.3%
from R3 915 million to R4 434 million in 2016.
TABLE 4: GROSS INCOME FROM MAJOR HORTICULTURE PRODUCTS
2015 2016
HORTICULTURE
R million
Vegetables (including potatoes) 18 527 24 726
Deciduous and other fruit 17 400 21 159
Citrus Fruit 14 815 17 749
Viticulture 4 793 4 563
Subtropical fruit 3 915 4 434
TOTAL 65 374 79 043
Source: Crops and Markets, DAFF, 2016
With regards to Horticulture exports, in particular the fruit industry (owing to limitations in export data on
vegetables industry), export produce generated R43.6 billion in 2016. The United Kingdom and Northern
Europe remain the largest consumers of fruit produce, with the EU region accounting for 35% of South
6Africa’s total deciduous fruit exports, while the markets in the Middle East and Asia are increasingly becoming
important contributors in more recent years (Bekker, 2017).
1.4.2 Economic Outlook of the Sub-sector
Overall the agribusiness sector in South Africa is vitally important to national wellbeing, employing about
30% of the working population in the country. The weak Rand, weather volatility and falling farm incomes
are predicted to exert downward pressure on the market. However, in the longer term it is predicted that
revenue in the sector will be boosted by growth of about 40% from food consumption due to the growth of
the middle class and disposable income. Business Monitor International (BMI) estimates that annual food
consumption revenue will reach over R609 billion in 2018.
According to the Industrial Policy Action Plan (IPAP), South Africa possesses a competitive advantage in a
number of fruit and beverage subsectors. Products from subsectors such as wines, indigenous Rooibos and
Honeybush tea, and certain fruits are highly sought after in export markets.
Additionally, while traditional fruit crops such as citrus, grapes and deciduous fruit account for the majority
of value and volume of fruit exports, it is reported that new categories in the subsector are growing fast.
Exports of subtropical fruit and tree nuts are increasing at a rapid rate, as middle-income consumers in
developed markets are demanding more variety. An analysis of the fruit and vegetable market also revealed
that over a five-year period up to 2019, the highest expected growth for the fruit and vegetable market will
take place in Asia Pacific, with 6.4% year-on-year growth, followed by Europe with 4.4% and the US with 2.2%
(Farmers Weekly, 2016).
1.2 EMPLOYER PROFILE
The AgriSETA members’ data base includes some 21 429 employers, 5 263 (25%) of which are from the
Horticulture subsector. The data shows that the majority of registered Horticulture entities (79%) are small
(1-49 employees), followed by 13% medium (50-149 employees) and 8% large entities (more than 149
employees).
The provincial distribution of Horticulture employers registered with AgriSETA is reflected in the pie chart
below, with provincial distribution by employer size in figure 4.
7FIGURE 4: PROVINCIAL DISTRIBUTION OF HORTICULTURE EMPLOYERS REGISTERED WITH AGRISETA
Eastern Cape
8% Free State
2%
Eastern Cape
Gauteng
10% Free State
Gauteng
KwaZulu-Natal
KwaZulu-Natal
Limpopo
Western Cape 8%
50% Mpumalanga
Limpopo North West
4%
Northern Cape
Mpumalanga Western Cape
10%
North West
Northern Cape 1%
7%
Source: AgriSETA members’ database, 2016
The figure above shows that the majority of Horticulture employers registered with AgriSETA are in the
Western Cape (50%), followed by Gauteng (10%), and Mpumalanga (10%). The provinces with the least
number of registered employers in the Horticulture subsector include: North West (1%) and Free State
(2%). It is important to note that 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.
1.3 LABOUR MARKET PROFILE
1.6.1 Provincial Distribution of Employees
The South African Agricultural sector is one of the biggest employers in the country. In the first quarter of
2017, STATSSA reported that a total of 875 000 people were employed in the sector, with the Western
Cape (25%) accounting for the majority of employees in the sector, followed by Limpopo and Kwazulu-
Natal, respectively accounting for 16% of employees.
TABLE 5: DISTRIBUTION ON EMPLOYEES BY PROVINVE IN AGRICULTURE, 2016/2017
PROVINCE 2015/2016 2016/2017
Western Cape 228 000 26% 215 000 25%
Eastern Cape 95 000 11% 87 000 10%
8Northern Cape 40 000 5% 47 000 5%
Free State 72 000 8% 70 000 8%
KwaZulu-Natal 131 000 15% 141 000 16%
North West 54 000 6% 50 000 6%
Gauteng 37 000 4% 36 000 4%
Mpumalanga 95 000 11% 89 000 10%
Limpopo 118 000 14% 140 000 16%
TOTAL 870 000 100% 875 000 100%
st
Source: Statistics South Africa, 2017. Quarterly Labour Force Survey. 1 Quarter 2017
With regards to Horticulture farming, the subsector products are produced throughout the country,
however the three main regions include the Western Cape, Kwa-Zulu Natal and Limpopo. This is largely
related to the characteristics of the regions which includes climate and type of products (Visser, 2012).
These findings are consistent with the data received from the AgriSETA WSP (2016) depicted below.
The figure below outlines the Horticulture employment distribution by provincial breakdown. Similar to
the table above, data from the AgriSETA WSP submissions (2016) shows that the province with the highest
proportion of both permanent and seasonal/temporary employees in the Horticulture subsector is
concentrated in the Western Cape, which accounts for approximately 51% of employees in the subsector.
This is followed by employees in Limpopo (14%) and Gauteng (9.7%). The provinces with least number of
employees reported includes the North West and Free State which both account for 2% of permanent and
temporary/seasonal employees in the subsector.
9FIGURE 5: PROVINCIAL BREAKDOWN – HORTICULTURE EMPLOYEES
4 500
4 000
3 500
3 000
2 500
NUMBER
2 000
1 500
1 000
500
0
Kwa-Zulu Northern Western
Eastern Cape Free State Gauteng Limpopo Mpumalanga North West
Natal Cape Cape
Percentage 8.4% 1.0% 9.7% 4.2% 14.4% 7.2% 1.3% 3.0% 50.7%
Number 668 79 769 332 1145 571 104 236 4020
Source: AgriSETA WSP Submissions, 2016
1.6.2 Gender
The graph below gives a breakdown of the Horticulture subsector by gender as reported in the WSP
submissions (2016). It is pleasing to note that contrary to the national agricultural statistics, the data
shows that there seems to be a relatively equal split between the genders, with males accounting for 53%
of overall employment in the subsector, while females make up the other 47%.
10FIGURE 6: GENDER BREAKDOWN
Female Male
47% Male
53% Female
Source: AgriSETA WSP Submissions, 2016
1.6.3 Race
The WSP (2016) shows that the majority of employees in the subsector are African (71%), followed by
Coloured employees (25%), and White employees (4%). Indian/Asian employees only represent less than
1% of people employed in the subsector.
FIGURE 7: EMPLOYEES BY RACE
White
Indian/Asian 4%
0%
Coloured African
25%
Coloured
Indian/Asian
White
African
71%
Source: AgriSETA WSP Submissions, 2016
111.6.4 Age
The majority of people employed in the Horticulture subsector by employers submitting WSP are
considered youth (less than 35 years old) which accounts for 49% of employees. This is followed by
employees between 35 and 55 (46%), whilst 5% are above the age of 55. Thus, 95% of people employed
in the subsector in 2016 are below the age of 55.
1.6.5 Occupational Categories
The last section of chapter one looks at the existing skills levels in Horticulture enterprises as reported in
the WSPs submitted for 2016. Skills vary from highly skilled managerial and professional occupations to
relatively low level skilled elementary occupations. The figure below illustrates that the vast majority of
people employed in the subsector occupy Elementary positions (64%), followed by Managers, who
account for 10% of employees in the subsector. The lowest number of employees occupy Clerical Support
Worker positions (1%), and Technicians and Professionals each make up 4% employees in the respective
occupational categories in the subsector.
FIGURE 8: EMPLOYMENT BREAKDOWN WITHIN THE HORTICULTURE SUBSECTOR
Elementary Occupations
Plant and Machine Operators
Skilled Agricultural and related Trade workers
Service and Sales Workers
Clerical Support Workers
Technicians and Associate Professionals
Professionals
Managers
0 20 000 40 000 60 000 80 000 100 000 120 000
Skilled
Technicians and Plant and
Clerical Support Service and Agricultural and Elementary
Managers Professionals Associate Machine
Workers Sales Workers related Trade Occupations
Professionals Operators
workers
NUMBER 16232 6312 6048 2443 8188 10501 10555 105641
PERCENTAGE 10% 4% 4% 1% 5% 6% 6% 64%
Source: AgriSETA WSP Submissions, 2016
121.4 CONCLUSION
Having a firm sense of the Horticulture subsector 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
subsequent chapters identify key skills issues as framed by government legislation, policies and
frameworks; and further identifies key macro socio-economic and environmental factors that function as
key change drivers in addressing skills development in the agricultural sector.
13CHAPTER 2: KEY SKILLS ISSUES
INTRODUCTION
Having outlined the Horticulture subsector profile in chapter one, this chapter is concerned with two specific
areas that shape the key skills issues in the subsector. Firstly. The alignment of sector skills planning to national
strategies, and plans will be analyzed to provide a snapshot of the key policy and planning documents that
shape skills planning in the Horticulture subsector. Secondly, the bulk of this chapter will be concerned with
identifying factors that are driving change in the sector, which are influencing the skills needs for particular
occupations or rendering them irrelevant in an ever changing world.
2.2 CHANGE DRIVERS
This section of the report identifies the key themes and issues driving change and influencing skills demand
and supply in the Horticulture subsector. These change drivers were identified though thematic synthesis and
triangulated through internal and external stakeholder engagement, desktop research and relevant policy
documents.
14TABLE 6: CHANGE DRIVERS
CHANGE DRIVER SKILLS ISSUE DEMAND & SUPPLY
Land reform & industry transformation Financial management skills Demand: emergent growers,
(learnerships, bursaries) employees, new entrants, land
Supply chain skills (technical, reform beneficiaries, extension
marketing, etc.) officers
Mentorship funding, identification Supply: training service providers,
and training of mentors (sufficient Agri colleges, universities,
mentors) universities of technology, TVETs,
Extension officer training commodity organisations
programmes
Skills retention Bursary funding for targeted skills, Demand: scholars, matriculants,
with work-back requirement university students, young graduates
Career advice (wrong field of study
places learners on unwanted career Supply: schools, universities, Agri
path) colleges, universities of technology,
TVETs, commodity organisations
Increase in production (citrus, table Demand for all supply chain skills Demand: export growers, new
grapes, avocados, macadamias, other (technical, etc.) at all levels (worker, entrants, growers changing
nuts, new fruit types) all management levels) plantings, training service providers,
Demand re-skilling of workers government departments and
Flexible qualifications allowing job agencies
mobility
Increased demand for skilled Supply: training service providers,
workers in government and universities, colleges, Agri colleges,
government agencies (DAFF, universities of technology, TVETs,
PPECB) QCTO, commodity organisations
Climate change (production area is Migration of workers, new skills Demand: growers, workers
shifting eastwards) required
Incorporation of latest technology Supply: training service providers,
and research outcomes in universities, universities of
qualifications, curriculums and technology, TVETs, Agri colleges,
course content commodity organisations, research
organisations
Youth bulge Demand for skills development at Demand: scholars, students, rural
younger age (high school level), youth, junior / middle / upper
employable youths management
Supply rural skills development
Management skills to manage Supply: training service providers,
young workforce universities, universities of
technology, TVETs, Agri colleges,
QCTO
15CHANGE DRIVER SKILLS ISSUE DEMAND & SUPPLY
Logistics and infrastructure Widening of skills range Demand: export growers, other
(engineering, logistics, commercial, employers in value chain
etc.) requires new qualifications,
broader scope Supply: training service providers,
universities, universities of
technology, TVETs, Agri colleges,
QCTO, commodity organisations
Increasingly strict export requirements Qualifications and training for Demand: export growers, other
quality control staff employers in value chain,
Qualification and training for ethical government, government agencies
auditors
Supply: training service providers,
universities, universities of
technology, TVETs, Agri colleges,
QCTO, commodity organisations
2.2.1 Technology and Mechanization
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”. With that said, 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.
2.2.2 Climate Change and Drought
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). 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 “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.
162.2.3 Land 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).
2.2.4 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). This presents a huge challenge for skills development generally, and specifically
for the agricultural sector, with a waning interest in agriculture and rapid urbanisation. 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 up-skilling 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.
2.3 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 (1999) 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.
17The 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 recognize 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 meeting the needs of all South African communities, both
rural and urban, in terms of food provision and sustainable livelihoods.
2.4 IMPLICATIONS FOR SKILLS PLANNING
In this chapter we have seen that the legislative and policy frameworks established by government, coupled
with the contextual change drivers and industry specific perspectives on skills development point to the
following 5 skills implications that need to be addressed in the Horticulture subsector Sector Skills Plan:
1. Practical skills transfer through mentoring and on-the-job training to address the youth bulge;
2. Human resource development strategies and career advice and expos to attract scholars and graduates
towards agricultural occupations;
3. The growing demand in export markets means more initiatives need to be geared towards quality
control staff and export assessor;
4. Partnerships with Higher Education Institutions (HEIs) for research and development into the subsector;
and
5. The development of sustainable farming qualifications and incorporation of latest technology and
research outcomes in qualifications, curriculum and course content.
2.5 CONCLUSION
In this chapter we have seen that the legislative and policy frameworks established by government, coupled
with the contextual change drivers and industry specific perspectives on skills development, point to 5 skills
implications that need to be addressed in the Horticulture subsector. Chapter 3 will elaborate on the specific
demand and supply of skills in the subsector to identify gaps and mismatches in skills provision, providing
evidence that the skills issues identified in this chapter articulate with what is happening on the ground.
18CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS
INTRODUCTION
Chapter 3 reflects the research completed on skills demand and supply in the Horticulture subsector. The
outcome is the result of an analysis of previous Sector Skills Plans, 2014/15 and 2015/16 WSP data, as well as
engagement with AgriSETA stakeholders. Engagements included interviews, surveys and limited focus groups
with external partners, stakeholders and AgriSETA member companies, as well as consultation with internal
stakeholders, conducted between 2015 and 2017. Effort was taken to ensure cross sectoral inputs were
obtained by reaching out to large levy payers, industry bodies, government departments as well as emerging
small scale entrants in the sector.
3.2 OCCUPATONAL SHORTAGES AND SKILLS GAPS
3.2.1 Hard-To-Fill Vacancies (HTFVs)
The analysis conducted has identified the hard-to-fill vacancies (HTFVs) and skills issues as they pertain to the
Horticulture subsector. The skills issues, gaps, as well as the emerging skills needs as identified through the
survey and WSP submissions analyses are outlined in the tables below. Firstly, the needs of small-emerging
farmers and co-operatives are addressed, followed by the needs of commercial farmers and HTFVs identified
through stakeholder engagements.
19TABLE 7: SMALL EMERGING FARMERS AND CO-OPERATIVES HTFV
Subsector Skills and/or Qualifications Gaps OFO Code
National Certificate: Agricultural Machinery Technician 2017-653301
General Education and Training Certificate: Horticulture 2017-611304
Further Education and Training Certificate: Manufacturing Technical
2017-653301
Maintenance
Horticulture National Certificate: Horticulture 2017-611304
National Certificate: Agricultural Extension 2017-213201
National Certificate: Farming 2017-613101
National Certificate: Fruit Packing and Grading Processes 2017-832904
National Certificate: Plant Production 2017-613101
TABLE 8: COMMERCIAL FARMERS HTFVS
Subsector Skills and/or Qualifications Gaps OFO Code
Certificate: Gardening and Horticulture 2017-611304
National Certificate: Farming 2017-613101
National Certificate: Agricultural Machinery Technician 2017-653301
General Education and Training Certificate: Horticulture 2017-611304
Horticulture
National Certificate: Perishable Produce Export Technology 2017-325703
National Certificate: Horticulture 2017-611304
National Certificate: Plant Production 2017-611304
National Certificate: Fruit Packing and Grading Processes 2017-832904
The following table outlines the top HTFVs as identified by external stakeholders in the Horticulture sub-sector:
20TABLE 9: TOP HTFVS (STAKEHOLDER ENGAGEMENT)
Hard to Fill Vacancies (HTFVs) Reason Demand & Supply SETA Interventions
Not traditionally part Demand: processing facilities Bursaries
of sector, not seen as (incl. wine cellars), growers Apprenticeships
career path in (systems engineers), logistics Career advice
agriculture service providers, cold stores,
ENGINEER
fresh produce terminals
Supply: universities,
universities of technology,
QCTO (qualifications)
Not enough Demand: research institutions, Bursaries
matriculants with growers, employers in trade Internships / graduate
necessary Maths and chain, cultivar managers placements
science grades and Supply: universities, Career advice
HORTICULTURIST/ VITICULTURIST
interest is entering universities of technology,
post-school education workplaces
in this field, graduates
need more experience
Not enough Demand: research institutions, Bursaries
matriculants with growers, employers in trade Internships /graduate
necessary Maths and chain placements
science grades and Supply: universities, Career advice
ENTOMOLOGIST
interest is entering workplaces
post-school education
in this field, graduates
need more experience
Not enough Demand: research institutions, Bursaries
matriculants with growers, employers in trade Internships / graduate
necessary Maths and chain placements
science grades and Supply: universities, Career advice
SOIL SCIENTIST
interest is entering workplaces
post-school education
in this field, graduates
need more experience
Not enough Demand: research institutions, Bursaries
matriculants with growers, employers in trade Internships / graduate
necessary Maths and chain placements
science grades and Supply: universities, Career advice
PLANT NUTRITIONIST
interest is entering workplaces
post-school education
in this field, graduates
need more experience
Not enough Demand: research institutions, Bursaries
matriculants with growers, pack houses, cultivar Internships / graduate
necessary Maths and managers placements
science grades and Supply: universities, Career advice
RESEARCH TECHNOLOGISTS
interest is entering universities of technology,
post-school education workplaces
in this field, graduates
need more experience
21Hard to Fill Vacancies (HTFVs) Reason Demand & Supply SETA Interventions
Attracted by other Demand: export growers, pack Bursaries
industries, not houses, exporters Internships / graduate
sufficient bursary Supply: universities, placements
MARKET RESEARCHER support, graduates universities of technology, Career advice
require experience, workplaces
not seen as career path
in agriculture
Increase in demand Demand: logistics companies, Bursaries
due to export growth, growers, exporters, pack Career advice
not seen as career path houses, cold stores, fruit
LOGISTIC MANAGER in agriculture terminals
Supply: universities,
universities of technology,
TVETs
Increase in demand Demand: growers, nurseries Learnerships
due to growth in Supply: universities, Bursaries
production and universities of technology, Career advice
PRODUCTION MANAGER expanding TVETs, training service Occupational
commodities, lack of providers, QCTO qualification
occupational development
qualifications Mentorship funding
Increase in demand Demand: growers, nurseries Learnerships
due to growth in Supply: training service Skills programmes
production and providers Occupational
expanding qualification
commodities, lack of development
SKILLED PRODUCTION WORKER literacy and numeracy
skills form barrier to
accessing skills
development, lack of
occupational
qualifications
Increase in demand Demand: pack houses, Learnerships
due to growth in growers Bursaries
production and Supply: universities, Career advice
expanding universities of technology, Occupational
PACKHOUSE MANAGER
commodities, new TVETs, training service qualification
technologies, lack of providers, QCTO development
occupational Mentorship funding
qualifications
Increase in demand Demand: pack houses, Learnerships
due to growth in growers Skills programmes
production and Supply: training service Occupational
expanding providers, QCTO qualification
commodities, lack of development
SKILLED PACKHOUSE WORKERS literacy and numeracy
skills form barrier to
accessing skills
development, lack of
occupational
qualifications
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