Hon House Chair, hon Deputy Chairperson, hon Ministers and Deputy Ministers, hon Members of the NCOP, MECs present, SA Local Government Association leadership, distinguished guests and government officials, hon Minister Zokwana has reminded us of the three national targets articulated in the National Development Plan, which were echoed in the state of the nation address in June this year. And these are to create 1 million new agricultural sector jobs by 2030; to expand a smallholder farming sector through land reform and other support measures and to eliminate insecurity through increased community-level food production through Fetsa Tlala.
We know that the achievement of these three targets will require close co- operation of the Department of Agriculture, Forestry and Fisheries and the Department of Rural Development and Land Reform and a whole range of other parties, including provincial and municipal counterparts and other national departments such as the Department of Water for crucial expansion of irrigation activity.
We also know that these three targets are specifically interrelated. The expansion of the smallholder sector will contribute to the job creation targets of Outcome 4, which is decent employment through inclusive economic growth. The achievement of the job creation target will be a major contributor to achieving the food security target, which is Outcome 7, vibrant, equitable and sustainable rural communities with food security for all.
Please allow me to make a few remarks about the 1 million jobs target for the agricultural sector. First, the target is applauded, Minister, and we believe it is achievable with the right approach and commitment by all stakeholders in the sector. In 1992, there were 1,1 million people who were employed in the commercial agricultural sector. According to the Quarterly Labour Force Survey of Quarter 4 in 2013, 713 000 people were employed in agriculture. Clearly, the sector has been shedding jobs over the past 20 years. We are, therefore, talking about complete reversal of this trend in the coming years. Indeed, the creation of 1 million new jobs in agriculture over the next 15 years implies doubling the agricultural sector employment.
We believe that this is possible because we have the commitment of government to support smallholders who feed the nation. The agricultural support provided to smallholders and land reform beneficiaries must be targeted and area-based. The Eastern Cape, for example, has vast tracts of land, communal land, but we also have topographical conditions that are not very conducive to large-scale commercial agriculture. We have smallholders who can be assisted to become more productive so that food security can be achieved at household and community levels. Access to markets for surplus needs to be prioritised for the rest of the country to benefit from this food surplus.
Our strategy to address and to meet the 1 million jobs target in the sector by 2030 will be multipronged. We addressed the needs of subsistence and smallholder producers and we capacitated the smallholder producers who were gearing up for semi-commercial and commercial production so that they can access export markets, but not at the expense of national food security.
There are many countries in the world that have succeeded in rapidly increasing employment in the semi-commercial and commercial agricultural sectors over the past few decades on the back of growing international trade in agricultural commodities and global value chains. China, which we usually associate with manufacturing jobs, is not the least. Remarkably, for example, China now supplies 60% of apple juice and 80% of garlic to the United States' market.
The second point I would like to make with regard to the 1 million jobs target is that the doubling of agricultural sector jobs implies double the output and capital employed in the sector, assuming that labour productivity and sector capital output ratios do not change. South Africa is fortunate to be facing positive trends in export markets. For example, the Citrus Growers Association estimates that if we could open up China, Eastern Europe and India to our full potential for citrus exports, we could create 30 000 new farm jobs and another 20 000 in the packing houses. Also, the expansion of South African supermarkets into sub-Saharan Africa is creating a growing market for our agricultural producers. A doubling of capital employed in the sector over the next 15 years implies that we must create enabling conditions for very large new investment flows into the agricultural sector. I will return to this point later.
The third point I wish to make about the 1 million jobs target relates to how this can be done. Minister Zokwana referred us to the NDP and the Agriculture Policy Action Plan for details. Here, I wish to add a few basic remarks. First, it is important to know that the different agricultural sub- sectors have vastly different employment intensities. The horticulture sector, which mainly irrigates and produces fruit and vegetables, accounts for about 400 000 jobs. This is more than half the jobs in the agricultural sector. Our major labour intensive horticultural industries are citrus, deciduous fruit, wine and table grapes and sub-tropical fruits. Our dairy industry is also quite labour intensive, employing about 60 000.
In contrast to these industries, mechanised grain farming and herding of sheep and cattle do not require that much labour. Secondly, we expect the expansion of the smallholder agricultural sector to contribute to achieving the 1 million jobs target. But, it is not realistic to think that smallholders can achieve the target alone, hence our multipronged strategy as ANC-led government. Thirdly, the new investment required for the agricultural sector to achieve the 1 million jobs target cannot be provided by public sector investment alone. Therefore, the private sector must invest in the agricultural sector.
Fourthly, following the NDP, we believe that solid long-term strategic partnerships should be established between our labour intensive agricultural industry and government to agree on measures to support growth and drive job creation. Minister Zokwana has also referred us to the 2003 Maputo Declaration to commit 10% of national budget to supporting the growth of the agricultural sector.
We know that the Department of Agriculture, Forestry and Fisheries' present allocation is less than 1% of the national budget, but we are confident that this percentage can be increased on the basis of demonstrated achievement towards realising the job targets.
The investment by government through Operation Phakisa to develop ocean economy is another area for collaboration between your department and the Department of Environmental Affairs. The opportunity to develop the aquaculture industry has been a key priority area for this government, even in the last term, when the Department of Agriculture was renamed to include the fisheries component.
Let me conclude by saying that I am very confident that the Department of Agriculture, Forestry and Fisheries and the Department of Rural Development and Land Reform, working together, seem to be on track progressively to achieve the state of the nation targets relating to farm employment, smallholder expansion and the elimination of food insecurity. We wish these departments every success. The ANC supports both Budget Votes. Thank you. [Applause.]