POULTRY SUB-SECTOR SKILLS PLAN - 2018-2019 Prepared on behalf of the Sector by AgriSETA
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Prepared on behalf of the Sector by AgriSETA
POULTRY SUB-SECTOR SKILLS PLAN
2018-2019
April 2018
ABBREVIATIONS AND ACRONYMS ABBREVIATION/ACRONYM DESCRIPTION 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 ARC Agriculture Research Council ATI Agricultural Training Institute ATR Annual Training Report BMI Business Monitor International CFO Chief Financial Officer CoS Centres of Specialization DAFF Department of Agriculture, Fisheries and Forestry 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 HSRC Human Sciences Research Council HTFV Hard To Fill Vacancies IGDP Integrated Growth Development Plan IDP Integrated Development Plan IPAP Industrial Policy Action Plan IRR Institute of Race relations KZN KwaZulu-Natal KZNPI KwaZulu-Natal Poultry Institute 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 Students Financial Aid Scheme
QLFS Quarterly Labour Force Survey
QCTO Quality Council for Trade and Occupations
RPL Recognition of Prior Learning
SACAU Southern African Confederation of African Unions
SADC Southern African Development Community
SAIVCET South African Institute for Vocational Continuing Education and
Training
SAPA South African Poultry Association
SAQA South African Qualifications Authority
SARS South African Revenue Service
SDA Skills Development Act
SDL Skills development levy
SIC Standard Integrated Project
SIP Standard Industrial Classification
SSP Sector Skills Plan
SIZA Sustainability Initiative of South Africa
STATSSA Statistics South Africa
TLUSA Farmers Union
TVET Technical Vocational Education and Training
WSP Workplace Skills Plan
WTO World Trade Organization
ii
TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS ................................................................................................................. i TABLE OF CONTENTS.................................................................................................................................... iii EXECUTIVE SUMMARY .................................................................................................................................. v CHAPTER 1: SECTOR PROFILE........................................................................................................................ 1 1. INTRODUCTION ................................................................................................................................. 1 1.1 SCOPE OF COVERAGE .................................................................................................................... 1 1.2 KEY ROLE PLAYERS ........................................................................................................................ 3 1.3 ECONOMIC PERFORMANCE .......................................................................................................... 6 1.4 EMPLOYER PROFILE ...................................................................................................................... 7 1.5 LABOUR MARKET PROFILE ............................................................................................................ 8 1.6 CONCLUSION ............................................................................................................................... 11 CHAPTER 2: KEY SKILLS ISSUES .................................................................................................................... 12 2.2 ALIGNMENT OF SKILLS PLANNING TO NATIONAL STRATEGIES AND PLANS ............................... 12 2.3 PESTEL ......................................................................................................................................... 13 2.4 CHANGE DRIVERS ........................................................................................................................ 14 2.5 IMPLICATIONS FOR SKILLS PLANNING ........................................................................................ 16 2.6 CONCLUSIONS ............................................................................................................................. 16 CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS MISMATCHES .............................................. 17 3.2 EXTENT AND NATURE OF SKILLS DEMAND ................................................................................. 17 3.3 SCARCE AND TOP UP SKILLS ........................................................................................................ 20 3.4 EXTENT AND NATURE OF SUPPLY ............................................................................................... 21 3.5 CONCLUSIONS AND PIVOTAL LIST............................................................................................... 23 CHAPTER 4: PARTNERSHIPS ........................................................................................................................ 25 4.1 INTRODUCTION ........................................................................................................................... 25 4.3 CONCLUSION ............................................................................................................................... 26 CHAPTER 5: SKILLS PRIORITY ACTIONS ....................................................................................................... 27 5.1 INTRODUCTION ........................................................................................................................... 27 5.2 KEY FINDINGS FROM PREVIOUS CHAPTERS ................................................................................ 27 BIBLIOGRAPHY ............................................................................................................................................ 30
FIGURES
Figure 1: DISTRIBUTION OF AGRICULTURAL ENTITIES BY SUBSECTOR ......................................................... 3
Figure 2: PROVINCIAL DISTRIBUTION OF POULTRY ENTITIES ....................................................................... 7
Figure 3: RELATIVE SIZE DISTRIBUTION OF POULTRY ENTERPRISES ............................................................. 8
Figure 4: PROVINCIAL DISTRIBUTION OF EMPLOYEES .................................................................................. 9
Figure 5: DEMOGRAPHIC COMPOSITION OF EMPLOYEES .......................................................................... 10
TABLES
Table 1: RESEARCH PROCESS AND METHODS ............................................................................................. vi
Table 2: ACTIVITIES WITHIN THE POULTRY SUBSECTOR BY SIC CODE .......................................................... 2
Table 3: KEY AGRICULTURAL ROLE PLAYERS ................................................................................................. 4
Table 4: KEY POULTRY ROLE-PLAYERS .......................................................................................................... 5
Table 5: BROAD REMUNERATION CATEGORIES OF THE POULTRY INDUSTRY WORKFORCE........................ 9
Table 6: KEY OCCUATIONAL CATEGORIES IN THE POULTRY INDUSTRY...................................................... 10
Table 7: PESTEL FOR THE POULTRY INDUSTRY ........................................................................................... 13
Table 8: GENERAL PRIORITY SKILLS FOR THE POULTRY INDUSTRY ............................................................. 20
Table 9: PLANNED AND REPORTED TRAINING ............................................................................................ 21
Table 10: PIVOTAL LIST ............................................................................................................................... 23
Table 11: POULTRY SECTOR PARTNERSHIPS ............................................................................................... 25
iv
EXECUTIVE SUMMARY
1. INTRODUCTION AND OVERVIEW
The Poultry sub-sector, as demarcated to the AgriSETA, consists of three producer types, namely:
Commercial poultry producers, generally large corporates producing poultry (and eggs)
on a very large scale and controls the supply chain from production (breeding) to growing,
slaughtering (large abattoirs) and packaging.
Out growers. Out growers are mainly small to medium-sized operations that enjoy
contracts to grow and deliver the live product to the abattoir (of mainly commercial
poultry producers).
Small scale farmers. Small scale poultry and egg farmers are normally classified into the
SMME category and frequently family operations.
Poultry is a large levy payer exceeding R46 million annually. It is also large in the context of
agriculture at large and contributes approximately 21% to the local agricultural economy. The
commercial poultry sector employs more than 100 000 workers of whom about 60 000 are
permanent employees. Poultry is the second largest consumer of maize and has a major impact
on upstream companies in the value chain, such as the animal feed industry. In short, the poultry
industry has a formidable place in the South African agricultural economy.
However, the industry experience economic strain. It is heavily affected by avian influenza and
more recently, Listeriosis as well as imports – dumping – mainly from the USA and South America.
As a large consumer of maize, the increase in the maize prize has a direct impact on the poultry
industry.
Amongst small scale farmers, poultry is a popular subsistence farming activity – it is relatively
easy to engage with, low unit cost and if free ranging, input costs are low. It is naturally one of
the most important sources of protein for impoverished rural people.
Key drivers of change in the industry are:
Growth of small-scale farmers.
Extension Advisors.
Recurring Avian Influenza and recently the outbreak of Listeriosis; and
The Green economy.
In turn, these change drivers impact on skills and especially three factors stand out:
1. Develop small-scale farmers’ business and broiler management skills.
2. Train small-scale farmers in better understanding of animal health, hygiene and medicine
and the application thereof in order to minimize the spreading of avian influenza and
other diseases such as Listeriosis.
v3. In the commercial sector emphasis should be placed on creating an optimal environment
for the breeding and growing of birds and layers. This relates to germ free environments,
hygiene and safety.
2. RESEARCH
A document review was conducted to establish the economic performance and trends of the
Poultry 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 Poultry subsector, and to identify key skills issues.
The following summarizes the research process and methods used to construct this sub-sector
skills plan:
Table 1: RESEARCH PROCESS AND METHODS
DATA TIMEFRAME RESEARCH
RESEARCH OBJECTIVES RESEARCH NATURE OF
SAMPLE SIZE COLLECTION OF THE OUTPUTS
TOPICS OF THE STUDY METHODS THE STUDY
TOOLS STUDY
Sector Profile Understanding Desktop Recent N/A Internet data October – Chapter 1:
the economy, research information research December Sector Profile
enterprises Key on the sector Unstructured 2017
and labour informant was analyzed interview
within the interviews with a focus
sector on Operation
Phakisa:
Oceans
Economy
Occupational Establish Qualitative Non- 100 Key informant September – Chapter 2:
shortages & occupational method probability registered interviews November Key Skills
emerging shortages & sampling Poultry (primary) & 2017 Issues
skills needs emerging skills method was industry desktop data
needs of the employed to stakeholders analysis Chapter 4:
Poultry identify (secondary) Sector
subsector stakeholders Partnerships
from whom
specific Chapter 5:
information Skills Priority
was required Actions
Skills issues & Identify key Quantitative Gathering 12% were The September – Chapter 2:
demands occupational method empirical cooperative quantitative November Key Skills
shortages, evidence farmers, 13% survey 2017 Issues
demands & using primary were small gathered data
supply with data sources, and emerging on the Chapter 3:
regard to as well as farmers and unskilled, Occupational
unskilled, undertaking 75% were skilled and Shortages
skilled, generic theoretical, commercial generic and Skills
Poultry desktop farmers occupational Gaps
visubsector research shortages &
occupations using skills gaps
and emerging secondary
skills needs in data sources
the
agricultural
sector
Sector Identify key Desktop New sub- N/A N/A October – Chapter 1:
Partnerships AgriSETA research sector – December Sector Profile
partnerships search for 2017
possible
partnerships
3. 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.
4. SUMMARY OF KEY FINDINGS
Priority skills in the Poultry industry are:
Business acumen such as identifying and starting a new business, basic business plan such
as setting targets, resource planning, financial and operational plans. The existing NVC
programmes can be considered as a basis for developing poultry specific programmes.
Technical skills focusing on practices relating to hatcheries, broilers and layers.
Artisan development as the current population artisans are generally old and needs to be
replaced.
Bio-security.
viiCHAPTER 1: SECTOR PROFILE
1. INTRODUCTION
Chapter 1 of this report provides an overview of the agricultural sector, paying particular
attention to the Poultry subsector in South Africa. The first section of this chapter looks at the
scope of the Poultry subsector’s coverage. Followed by the second section, which outlines
AgriSETA stakeholders and key role-players in the Poultry sector. The third section looks at the
economic performance of the overall agricultural sector, zooming into the contribution of Poultry
to the South African economy. The fourth section explores the employer profile, based on the
AgriSETA WSP/ATR data submitted for 2017. 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.
1.1 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 Poultry subsector is classified
into a single economic activity. The table below outlines the formal demarcation of the Poultry
sub-sector.
1Table 2: ACTIVITIES WITHIN THE POULTRY SUBSECTOR BY SIC CODE
SUBSECTOR SIC CODE SIC DESCRIPTION
Other animal farming, production of animal products (not elsewhere
11220
classified)
Poultry 11221 Ostrich farming
Poultry and egg production including the slaughtering, dressing and
30114
packing of poultry
Source: AgriSETA, 2017
The Poultry subsector is comprised of three 3 major sections:
Commercial poultry producers. These are large entities and some are large corporates
producing poultry (and eggs) on a very large scale and controls the supply chain from
production (breeding) to growing, slaughtering (large abattoirs) and packaging.
Out growers. Out growers are mainly small to medium-sized operations that enjoy
contracts to grow and deliver the live product to the abattoir (of mainly commercial
poultry producers). They are generally supplied by growing stock (chicks), feed and other
inputs and once delivered to the abattoir the cost of production is deducted and then
paid a pre-agreed amount per bird.
Small scale farmers Small scale poultry and egg farmers are normally classified into the
SMME category and are frequently family operations. Live birds and eggs are generally
sold on a daily basis at the gate or through hawkers. Generally, these are survivalist
businesses.
Overall, the agricultural sector comprises of 11 sub-sectors, each organized into a Sub-sector
committee tasked to represent their industry’s interest to AgriSETA. These are: Red meat;
Horticulture; Poultry; Fibre; Pest control; ; Milling, Pet food, and Animal feed; Aquaculture; Seed;
Sugar; Grain and Cereals and Tobacco. The Poultry subsector constitutes 2% of the overall
number of levy paying entities to the AgriSETA. The graph below outlines the relative size of
membership number by subsectors, as captured in the AgriSETA member database of 2017.
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%)
Sugar (1%)
Source: AgriSETA member database, 2017
Note: Tobacco is not reflected as it reflects “0%” (although large, the total sector consist only of a very few
enterprises)
1.1.1 Revenue from Skills Development Levies
In 2017, the value of SDL paid by the Poultry sub-sector was R46 449 986 of which (80%) R37 159
989 flowed to the AgriSETA. This levy was collected from 402 levy payers of whom only 100
submitted the WSP/ATR.
In summary, the Poultry industry represents less than 6% of levy paying enterprises in AgriSETA
but contributes approximately 11% of levy income and contributes 20.9% to the South African
agricultural economy in general. It is clear that the Poultry sub-sector is one of the key sub-
sectors demarcated to the AgriSETA. If one is to simultaneously take into account the myriad of
micro and survivalist producers who survive from poultry and egg production (just about every
rural household own chickens either for own consumption or aimed at the informal – hawker –
market), one realizes that this sub-sector needs focused attention from the AgriSETA.
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.
3Table 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
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
4Department or Relevance to agricultural skills
Strategic contribution
organisation development
Land and Agricultural
Financial services to commercial farming
Development Bank of South
sector, agribusiness, and emerging farmers.
Africa
Credit and assistance
Micro-Agricultural Financial
Institutions of South Africa Production loans 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 field in
Union of South Africa (NAFU) all agricultural matters.
The African Farmers’ Represents commercial African farmers to
Union and Sector
Association of South Africa bring black commercial farmers into
representatives (AFASA) mainstream agribusiness.
Transvaal Agricultural Union A national agricultural union serving
South Africa (TAU SA) commercial farmers
Food and Allied Workers Representing unionized workers in the
Union (FAwy farming and food processing industries
Agricultural Business Chamber Fosters a favorable agribusiness environment
Conglomerate organization 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
Whilst the above is relevant to the agricultural sector at large certain key role players needs
special mentioning when considering the Poultry sub-sector:
Table 4: KEY POULTRY ROLE-PLAYERS
Department or Relevance to agricultural skills
Strategic contribution
organisation development
SAPA serves as the industry’s collective voice
Representation,
South African Poultry to the public and to government
research, advocacy and
Association (SAPA) Active role in protecting the industry from
lobbying foreign “dumping” of poultry products
Onderstepoort Veterinarian
Advanced veterinary training
Human development School, UP
KZN Poultry Institute (KZNPI) Short courses and information sharing
Caters for the needs of smallholder and
emerging farmers by addressing issues
affecting this growing sector of the poultry
Developing Poultry Farmers industry. The organization has also fulfilled a
Transformation
Organization (DPFO) dynamic capacity building and advocacy role,
empowering provincial structures and
developing partnerships with the state over
time
51.3 ECONOMIC PERFORMANCE
1.3.1 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 R263,2 billion in 2016, while its contribution to the
GDP was estimated at R72.2 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.
The Poultry Sub-sector, although only representing 6% of levy payers is critical to the agricultural
sector at large. The poultry industry remains the largest single contributor to the agricultural
sector in South Africa. Some 20.9% of the total agricultural gross value in 2015 stemmed from
poultry production and over 42.8% of animal product gross value. The industry provides direct
employment for over 56 000 people and indirect employment to a further 63 000 people; is the
second largest consumer of maize; and supports many peripheral businesses as well as those
downstream in the value chain. The poultry industry’s influence on the success of the South
African feed industry is considerable. (SAPA, 2015).
1.3.2 Economic outlook of the sub-sector
The period 2004 to 2008 the industry experienced substantial growth with broilers growing on
average by 7%. Thereafter it slowed drastically down to 1% for the period 2009 to 2014. During
the past seven years, production costs have increased, disposable income of consumers has
declined and the importation of poultry meat products at low prices has eroded the demand for
locally produced broiler products. (SAPA, 2015).
The total gross value of animal products was R113, 7 billion and the total gross value of
agricultural products was R233, 3 billion in 2015. Total animal products contributed 48. 7% to the
gross value of total agricultural products, with poultry meat contributing 16. 6% and eggs 4. 2 %.
(SAPA, 2015).
The outbreak of avian influenza in the Western Cape has resulted in the culling of vast numbers
of birds (in August 2017 this already totaled in excess of 300 000). The epidemic combined with
a slowdown in consumer demand and the large scale import of poultry products (South Africa
imported 273 745 tons of chicken in the first half of 2017 (Agri Handbook, 2017) has placed the
industry under severe pressure. At this stage it is not clear what the eventual impact of Liseriosis
will be on the industry (the largest poultry producer in South Africa is affected and had to remove
its product from the shelves of retailers). All indications are that the industry will remain under
pressure for the next number of years and it is expected that it will shed some of its labour in
order to survive commercially.
61.4 EMPLOYER PROFILE
According to SARS there are 1 134 registered poultry industry employers in South Africa. Of them,
403 are paying the skills levy and 100 are submitting the WSP/ATR. Using the levy paying
companies as a proxy, it is clear from the following graph that approximately 50% of all poultry
enterprises are to be found in Gauteng and Kwazulu-Natal. The third largest province is
Mpumalanga with 15% of all poultry enterprises. All the other provinces have less than 10%
representation.
Figure 2: PROVINCIAL DISTRIBUTION OF POULTRY ENTITIES
EC
8% 9%
5% FS
5%
Gau
8%
KZN
Lim
25%
15% MP
NW
NC
2% 23% WC
AgriSETA “Huge File”, 2017
For planning purposes, it is important for the SETA to have a clear understanding of the
distribution of enterprises by size as it helps in decisions regarding grants and special grants
aimed at certain categories (such as SMME’s).
However data sources are limited. SAPA’s membership is not reflective of the total industry as it
is a voluntary organization. The quality of employer data provided by SARS and DHET remains
poor and is only used to indicate relative size rather than absolute numbers per size category.
The following figure distributes those that that are registered with AgriSETA. 1
1
It should be noted that in the context of skills planning, size is determined by number of employees and not
turnover. Small = ≤49 employees, Medium 50 – 149 and Large ≥150 and above.
7Figure 3: RELATIVE SIZE DISTRIBUTION OF POULTRY ENTERPRISES
90% 85%
80%
70%
60%
50%
40%
30%
20%
9%
10% 6%
0%
Small Medium Large
AgriSETA “Huge File”, 2017
Whilst the sector has many small enterprises, it is known that only about 100 submit WSP/ATRs
(of the estimated 1 000 enterprises). It is also a known fact that the poultry industry is one of
the largest contributors of the skills levy to AgriSETA (11%). It thus implies that the vast majority
of the levy income is generated by a few large corporates. An analysis of levy income confirms
this.
The indication is that poultry together with livestock and vegetables are the most popular farming
activities in South Africa. It is also important to note that it is very popular in the poorest
provinces - Eastern Cape and Kwazulu-Natal followed by Limpopo and Mpumalanga.
1.4.1 Subsistence Farming
Poultry is one of the most popular subsistence farming activities – it is relatively easy to engage
with, low unit cost and if free ranging, input costs are low. It is naturally one of the most
important sources of protein for impoverished rural people.
This is one of the reasons why the graph above also reflects that poultry is one of the most
popular commodities in rural provinces (Eastern Cape, KZN, Limpopo and Mpumalanga).
1.5 LABOUR MARKET PROFILE
It is estimated that the Poultry industry directly employs 56 000 workers and indirectly 63 000.
The broiler industry is the largest employing approximately 48 000 people and the egg industry
a further 8 000 people.
The table below illustrates that the vast majority of workers in the broiler industry are employed
at lower levels (89%) whilst in the egg industry a slightly higher percentage of workers are
employed at higher level.
8Table 5: BROAD REMUNERATION CATEGORIES OF THE POULTRY INDUSTRY WORKFORCE
Supervisory and
Industry Junior Staff Total
Senior Staff
Broiler, hatchery and rearing 12 880 1 591 14 471
Broiler processing 25 515 2 029 27 544
Broiler distribution 4 465 1 604 6 069
Total 42 860 5 224 48 084
Percentage distribution 89% 11% 100%
Egg industry 6 827 1 198 8 025
Percentage distribution 85% 15% 100%
SAPA, 2017
1.5.1 Provincial distribution of employees
The following figure summarizes the provincial distribution of employees – this includes
employees form large, medium and small firms. It should however be noted that very few small
firms (only 36) submit the WSP/ATR and therefore the picture is not fully representative.
Figure 4: PROVINCIAL DISTRIBUTION OF EMPLOYEES
4% EC
9%
21% FS
Gau
0% 15% KZN
Lim
17% MP
14% NW
NC
16% 4% WC
AgriSETA WSP data, 2017
In general employees are distributed fairly evenly between the Western Cape, North West,
Gauteng, Mpumalanga and KZN with 9% in the Free State. As the figures reflect mainly large and
medium firms one can deduct that these firms are geographically well spread. It furthermore
illustrates that most large corporates have activities in many provinces
1.5.2 Gender, Race and Age
The following table summarizes the demographics of the sector:
9Figure 5: DEMOGRAPHIC COMPOSITION OF EMPLOYEES
90%
81%
80%
70%
60% 57%
51%
50% 43% 44%
40%
30%
20%
10% 7%
10% 5%
1%
0%
AgriSETA WSP data, 2017
The majority of employees are male although there is a healthy representation of female workers
in the Poultry industry and Black workers (including Coloured and Asians) represent 92% of all
workers. There are much older workers than youth in employment in the industry.
1.5.5 Occupational Categories
The following table list the top occupations within each main category on the OFO (those
occupations with the highest number of workers in the WSP are included):
Table 6: KEY OCCUATIONAL CATEGORIES IN THE POULTRY INDUSTRY
Broad Occupational
Occupational code Detailed description
Category
2017-112101,121101, Director, Finance Manager, Personnel/HR manager,
121201, 121901, Corporate general manager, Quality systems manager,
212908, 122101/2, Sales and marketing manager, Agricultural farm manager,
MANAGERS
131101, 132102, Production/operations manager, Engineering manager,
132104, 132401/2, Supply, distribution and logistics manager, Operations
134915 manager
Accountant, Management accountant, Financial
PROFESSIONALS 2017-241101/2, 241107
accountant
TECHNICIANS AND 2017-312201, 312202, Production/operations supervisor, Maintenance planner,
ASSOCIATE 314201, 325703, Agricultural technician, Agricultural/Horticultural Produce
PROFESSIONALS 331301, 334102 Inspector, Bookkeeper, Office administrator
10Broad Occupational
Occupational code Detailed description
Category
2017-411101, 422601,
CLERICAL SUPPORT General clerk, Receptionist, Accounts clerk, Payroll clerk,
431101, 431301,
WORKERS Stock clerk, Production coordinator
432101, 432201
SERVICE AND SALES 2017-522301, 523102,
Sales assistant, Cashier, Sales clerk/officer, security officer
WORKERS 524903, 541401
2017-611302, 611401,
SKILLED
612101, 612201, Landscape gardener, Mixed crop farm manager/foreman,
AGRICULTUEAL,
641201, 642601, Livestock farmer, Poultry farmer, Bricklayer, Plumber, Air-
FORESTRY, FISHERY,
642701, 651202, conditioning and refrigeration technician, Welder, Boiler
CRAFT AND RELATED
651302, 653303, maker, Mechanical fitter, Electrician, Poultry slaughterer
TRADES WORKERS
671101, 681105
PLANT AND MACHINE 2017-716109, 718201, Milling process machine operator, Boiler/engine operator,
OPERATORS AND 732101, 733201, Delivery driver, Truck driver, Agricultural mobile plant
ASSEMBLERS 734101, 734206, 734402 operator, Loader operator, Forklift operator
2017-811101, 811201, Domestic cleaner, Commercial cleaner, Crop production
821101, 821201, farm worker, Livestock farm worker, Poultry, ratites or
ELEMENTARY
821204, 821301, avian farm worker, Mixed crop and livestock farm worker,
OCCUPATIONS
821401, 832904, Garden workers, Food and beverage factory worker, Store
833402, 862203, 862916 person, Handyman. Farm maintenance worker
1.6 CONCLUSION
In terms of levy contribution Poultry industry is one of the largest demarcated to AgriSETA using
levies paid as a measure. This is acceptable because it is also one of the largest industries in
agriculture in terms of it contribution to the agricultural GDP. From a skills development
perspective it needs to be noted that it is a large employer which employers (directly and
indirectly) in excess of 100 000 workers.
This sector requires focused attention from the AgriSETA, not only because it is large but also
because it has a large and growing small scale farming population that requires development.
Similarly, AgriSETA must contribute to the control of avian influenza and other health risks such
as Listeriosis with sector specific training programmes.
11CHAPTER 2: KEY SKILLS ISSUES
2.1 INTRODUCTION
This chapter focuses on the alignment of skills planning to national strategies insofar as it has
relevance to Poultry and it will also focus on factors driving change in the sector, thus influencing
particular skills needs.
2.2 ALIGNMENT OF SKILLS PLANNING TO NATIONAL STRATEGIES AND PLANS
The following section draws attention to the national strategy and planning documents that
frame AgriSETA’s mandate for skills development. All of these legislative and policy frameworks
speak to AgriSETA’s Constitutional mandate, as a Public Institution governed by the Public
Finance Management Act, to develop learning programmes and facilitate the implementation
thereof 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
12an 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 Poultry industry has specific challenges that need to be taken into consideration during any
skills planning process:
There is huge pressure from foreign companies to export cheap poultry products to South
Africa. Imports happen from the US (AGOA), Brazil and Europe and by now has exceeded
250 000 tons. This has a very limiting effect on growth potential of the industry.
Diseases such as Avian Influenza and Listeriosis has a devastating effect on the industry –
more than 300 000 birds had to be culled to date during 2017. Recently one of the largest
producers had to remove all its product from retailers’ shelves. These diseases has the
potential to render broiler production and processing plants unproductive and in some
cases it is even possible that it will temporarily be closed down impacting on employment
stability and profitability.
Small-scale growers and subsistence farmers are numerous. No official figures on the
number of under resourced poultry farmers exist. It is however recognized that virtually
every rural family will own chickens for own consumption or for the hawker market. It is
very difficult to engage with these households to control the spread of diseases such as
avian influenza. Large scale awareness, information dissemination and basic training is
required.
2.3 PESTEL
The macro-environmental framework within which the South African poultry industry has to
operate and for the SSC to advise the AgriSETA reflect the following factors that needs to be taken
into account for any strategic planning purposes.
Table 7: PESTEL FOR THE POULTRY INDUSTRY
FACTOR POSSIBLE IMPACT
There is a need to restrict imports to protect the industry. Uncontrolled “dumping”
has the potential to kill the industry. International arrangements such as AGOA is one
such arrangement. Its relevance to the poultry industry need to be revisited.
Whilst agricultural colleges are being repositioned as Agricultural Training Institutes,
their stability, efficiency and effectiveness remains a challenge. Since the formation
Political of DHET there was an issue of where these colleges must be allocated. The lack of
political will to stabilize agricultural colleges had a major impact on their
performance.
After 17 years, RPL policy prescripts and the implementation in South Africa remains
a contentious matter influencing the ability of certifying highly experienced people
lacking required theoretical education.
13FACTOR POSSIBLE IMPACT
Land expropriation without compensation which is now an adopted policy can have
a negative impact on the industry.
Growing imports of poultry products not only from the US but also from South
America and Europe, impacts negatively on the economy of the industry.
Economic There is a growing demand for poultry as a source of protein.
Price increases are strongly driven by the price of seeds and grain, fuel price hikes
and the volatility of the ZAR.
Poultry farming is very popular amongst poor rural people. 1. There is a need to
systematically capacitate small scale and survivalist farmers to grow into sustainable
businesses. 2. Animal health is of paramount importance as free ranging chickens
can easily spread diseases such as avian influenza and they share food sources with
wild birds.
Social
The ageing Artisan workforce is a worrying factor.
Floods and droughts have a direct effect on the industry and impact negatively on
food prices.
Animal health and food security is increasingly important to the poultry industry as
the sector is plagued by the recurrence of avian influenza and diseases such as
Listeriosis. Technological advances have to be made to pre-empt such diseases.
Technological
Food quality inspectors is not a popular field of study for young people and needs
addressing
Employers regard labour legislation as restrictive and one of the effects is that more
Legal contracted workers are engaged in processing plants.
These PESTEL factors need to be taken into consideration when prioritizing skills development
initiatives in the sector.
2.4 CHANGE DRIVERS
In this section key themes and issues driving change and influencing skills demand and supply in
the Poultry sector are addressed. These change drivers were identified through a thematic
synthesis of internal stakeholders’ views, policy documents, existing research and stakeholder
engagement. It was ensured that sufficient engagement, via SSC sessions, were placed on the
needs of the under-resourced sector.
2.4.1 Growth of Small Scale Farmers
Small-scale farmers do not have the knowhow to properly manage neither their businesses nor
the technical skills to withstand external influences such as:
Avian influenza/Listeriosis.
Imports (dumping).
14 Droughts.
Floods.
Currently avian influenza has the most notable effect on the poultry sector and small-scale
farmers are not prepared to manage the disease.
Major skills issues:
Build entrepreneurial skills.
Technically focus on animal health skills.
2.4.2 Extension Advisors
Well capacitated extension advisors can be a major driver of change in the Poultry sector,
especially insofar as they can support small-scale farmers and Outgrowers.
Major skills issues:
Retraining of extension officers on the modern qualifications developed jointly by
AgriSETA and DAFF.
Focus specifically on animal health issues and ensure that bird related health is a
recognized component of such training.
CPD aiming at regular updating of extension officers with regards to new diseases and
how to protest animals against it and how to treat such diseases.
2.4.3 Recurring Avian Influenza
Avian influenza is very difficult to control as it is mainly spread by wild birds. It is a phenomenon
that is here to stay and the poultry industry needs to find ways to manage and cope with it.
Major skills issues:
Animal health programmes.
Germ free environments – hygiene in areas where large numbers of birds are kept in
confined space.
Vaccinations and medicine.
2.4.4 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. Whilst there is a tendency to limit
discussion on the Green economy to renewable and efficient energy, the Green economy is also
embracing the progression to environmentally friendly pesticides and feeds which are less
15harmful to man and its environment. This is even more important as poultry production is one of
the largest consumers of grain.
2.5 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 3 skills implications that need to be addressed in the
Poultry Sub-Sector Skills Plan.
3 Skills Implications:
Develop small-scale farmers’ business and broiler management skills.
Train small-scale farmers in better understanding of animal health, hygiene and medicine
and the application thereof in order to minimize the spreading of avian influenza.
In the commercial sector emphasis should be placed on creating an optimal environment
for the breeding and growing of birds and layers. This relates to germ-free environments,
hygiene and safety.
2.6 CONCLUSIONS
From the analysis of skills issues in the Poultry industry, two matters stand out:
Firstly, there are many small-scale farmers and they appear to be growing. They need to be
assisted to participate effectively in the economy, and whilst it implies training it also places a
responsibility on government to ensure its extension officers can play the supporting role they
are supposed to.
Secondly, Avian influenza as well as Green economy requirements are forcing the industry to
ensure even higher levels of animal health and hygiene – this applies to the commercial sector
and small-scale farmers. The AgriSETA’s role in support of this should be clear and well defined;
the Poultry SSC must take the lead in defining that role.
16CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS
MISMATCHES
3.1 INTRODUCTION
Chapter 3 reflects skills demand and supply in the Poultry Industry. WSP and ATR information is
key to the findings of this chapter. As a very large sector, the wealth of information available
should enable AgriSETA to accurately define skills mismatches.
The key themes emerging from this chapter corroborate the skills implications identified at the
end of Chapter 2.
The Poultry industry is relatively easy to enter and unfortunately there are quite a number of
operators whose actions and practices are not conducive to a healthy and disease free industry.
3.2 EXTENT AND NATURE OF SKILLS DEMAND
Many factors impact on the demand for skills in the sector – some of which are external, such as
large scale importation of poultry products and avian influenza which puts a damper on sectoral
economic growth and which in turn negatively affect labour demand. However there are other
17less obvious reasons. In a PESTEL and SWOT analysis of the sector the following were raised as
important factors impacting on the poultry sector.
Ageing Artisan Workforce
It is a well-known fact that South Africa’s artisan population in the workplace are on average
older than 50 years. The current system of NCV whereby thousands of young people with poor
quality technical qualifications are produced with no workplace experience, is not helping to
solve the problem of an aging artisan population. Over time a breakdown developed between
employers and TVET Colleges with the former not trusting the quality produced by the latter.
Colleges also started to develop the disposition that it has to provide theory and some simulated
workshop training but has nothing to do with the workplace.
A further challenge is that RPL is lacking in South Africa. This is especially the case with older
workers who, over the years accumulated the necessary skills but do not have the required
theoretical acumen to become artisans. Many attempts are under way to advance RPL
especially amongst artisanal trades but a single well integrated policy does not exist.
There are two positive developments with regards to artisan development. Firstly, the post
school education and training strategy set a target to train 30 000 artisans annually. This led to
the A21 initiative aiming to focus on work integrated learning during the development phase of
an artisan. Secondly, DHET has recently commenced with the establishment of Centres of
Specialization (CoS) which will initially focus on 13 priority trades and most importantly, these
CoS will implement the new Occupationally-driven qualifications using the dual system (high level
of rotation between the classroom and workplace) of training. The most popular trade in the
poultry industry is that of electricians – this trade is part of the CoS initiative.
Veterinarian Related Skills
There is a lack of political will to train sufficient veterinarians. All training is still limited to one
veterinarian school, located at Onderstepoort and linked to the University of Pretoria.
Similarly there is a lack of political will to resuscitate the 11 agricultural colleges. At this stage
only Tsolo Agricultural College is producing some Animal Health Technicians.
There is a dire need, across the agricultural industry (cattle, small stock, and bird stock) for more
animal health specialists – this is an area that needs to be prioritized by the Poultry SSC.
Food Quality Inspectors and Food Technologists
There are insufficient inspectors as there is a lack of interest to study in this field. This has a
serious impact on the industry and is a threat to global competitiveness.
Hard-To-Fill Vacancies
Hard-To-Fill Vacancies (HTFV) are those vacancies which can take six months or more to fill. The
industry identified the following six occupations as HTFVs:
1819
Table 8: GENERAL PRIORITY SKILLS FOR THE POULTRY INDUSTRY
Demand and
HTFV Reason SETA intervention
Supply
1. Artisans Lack of capable TVET Not sufficient Allocation of
colleges. suppliers of quality resources.
Lack of holistic programmes education. Accreditation for
Lack of funding. service providers.
Lack of integrated theory, Industry processing Resuscitate the
practical and workplace plants need current
learning artisans agricultural
colleges.
2. Veterinarians Discrepancies in quality of Lack of practicality Resuscitate the
education supply. skills supply. current
Poor intake criteria agricultural
colleges.
3. Food Quality Discrepancies in quality of Demand exceeds Research and
Inspectors education supply. supply because of programme
Lack of interest by a lack of development in
prospective students. prospective line with food
students. technology
inspector
Advocacy.
4. Food Discrepancies in quality of Demand problem Research and
Technologist education supply. because of a lack programme
Lack of interest by of prospective development in
prospective students. students. line with food
technology
inspector.
5. Engineers Lack of focus on Maths and Demand problem- Allocation of
science in secondary lack of quality bursaries.
schooling. students.
6. Charted Lack of focus on Maths and Demand problem- Allocation of
Accountants science in secondary Lack of quality bursaries.
schooling. students.
Affordability. Best students get
absorbed by big
companies
3.3 SCARCE AND TOP UP SKILLS
Scarce and top-up skills are determined by considering the HTFV and what is reported by
employers in the WSP/ATRs.
Enterprises plan for and engage with training because there is a need to develop or top-up
specific skills. The following table summarizes the most needed training interventions (in order
of priority as determined by the number of interventions):
20Table 9: PLANNED AND REPORTED TRAINING
PLANNED TRAINING TRAINING COMPLETED
1. Occupational health and safety skills Occupational health and safety skills
2. Management and supervisory skills HR and labour relations skills
3. Animal production skills Driver and operator skills
4. HR and labour relations skills Animal production skills
5. Food safety and security skills Management and supervisory skills
6. Driver and operator skills Financial skills
7. Admin and computer related skills Food safety and security skills
8. Life skills Admin and computer related skills
9. Financial skills Agricultural Maintenance Skills
10. Artisan and technical skills General Agricultural Skills
AgriSETA WSP & ATR data, 2017
The above reflects the top ten most number of interventions from high to low. Whilst it is a good
indication of scarcity or need for top-up, alone it does not satisfy as it should be considered in
relation to the number of posts in the industry. However, it is important to note that there is a
high correlation between planned and executed training. This confirms the authenticity of the
needs.
3.4 EXTENT AND NATURE OF SUPPLY
3.4.1 Tertiary Institutions
Most tertiary institutions offer bachelor’s degrees in Agriculture and/or Animal Science,
Agricultural Management and Agricultural Extension. Specific poultry related qualifications are:
University of KwaZulu-Natal: Bachelor of Science in Animal and Poultry Science, NQF 7.
Tshwane University of Technology: National Diploma in Animal Production, of which poultry
production is one of the subjects in both the second and third years.
3.4.2 Agricultural Training Institutes (formerly Agricultural Colleges)
Cedara Short course on Broiler production (on request).
Madzivhandila Short course in Poultry production.
Potchefstroom Poultry production is a compulsory part of the Diploma in Mixed
Agriculture.
3.4.3 Qualifications registered with SAQA and available to any duly accredited training
providers
Legacy poultry related qualifications with SAQA;
GET Certificate: Poultry Processing, NQF1, NQF2 andNQF3
GET Certificate: Poultry Production, NQF1, NQF2and NQF3
21 National Certificate: N1 Poultry Meat Examiner, NQF1 and NQF3
New occupational qualifications
The following is registered with SAQA:
Occupational Certificate: Poultry Farmer, NQF5
These programmes above can be presented by any of AgriSETA’s accredited providers (of whom
most of the 800 are accredited to provide in animal production NQF levels 1 – 4.
3.4.4 KZN Poultry Institute
The KZN Poultry Institute deserves special attention. This is the only provider known in South
Africa to focus solely on poultry related training. It is a non-profit institution sponsored mainly by
large poultry enterprises and enterprises related to the sector (such as input suppliers) and has
the necessary accreditation with AgriSETA and delivers on unit standard based programmes.
Learnership
National Certificate in Poultry Production, NQF 1 and NQF 3
Short courses
General Poultry Production
Hatchery Management
Commercial Layer Production
Broiler Breeder Production
Biosecurity
Indigenous Chicken Production
Poultry Business Skills
The Poultry Advisor
Poultry Team Leader
Mentoring
Mentoring is an addition to formal training especially for new-entrant and smaller-scale
farmers. Mentors travel both within and outside South Africa to assist producers on their
farms to achieve their goals.
This mentoring allows the farmer to adapt the sound production practices that they learn on
course to their own resources and farm environment and work systematically towards
achieving good results. This is invaluable support to new farmers.
223.5 CONCLUSIONS AND PIVOTAL LIST
Section 3.2 above list the occupations were identified as scarce and the need for to-up skills. The
following table summarizes the occupations and the PIVOTAL programmes.
This pivotal list is essentially based on the AgriSETA WSPs for the Poultry sub-sector. It has been
moderated by SSC members.
Table 10: PIVOTAL LIST
Specialization Planned NQF NQF #
OFO # to be
Occupation / Alternative Intervention Level Aligne neede
Code supported
Title d d
2017- Agricultural Livestock farm Learnerships 4 Yes Not 132
13110 Farm manager quantifi
1 Manager able
2017- Finance CFO, Chief Bursaries 6 to 7 Yes 44 44
12110 Manager accountant
1
2017- Poultry Poultry Farm Learnerships 2 to 4 Yes Not 84
61220 Farmer Production and skills quantifi
1 Supervisor programmes able
Poultry Farm
Foreman
2017- Electrician Electrical fitter Apprentice- 4 Yes 100 20
67110 ship
1
2017- Millwright Apprentice- 5 Yes 100 60
67120 ship
2
2017- Poultry Halaal Skills 2 Yes 200 96
68110 Slaughterer slaughterer, programme
5 Chicken
processor,
Poultry worker
abattoir
freezing works,
Poultry factory
worker,
Poultry spotter,
Poultry boner,
Poultry
processing
worker
2017- Poultry, Egg collector, Skills 1 to 2 No (on- 500 362
82120 Ratites/Avian Bird sexer, programme job
4 Farm Worker Hatchery training)
assistant
2017- Food & Food and Apprentice- 3 to 4 Yes 200 96
31390 Beverage Beverage ship and
7 Process Process learnership
Controller Technician/
Artisan
2017- Food & Perishable Skills 1 to 2 Yes but 200 96
83290 Beverage Produce Programme also
4 Worker/ Packhouse non-
Worker aligned
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