Chairperson, hon Minister and Deputy Minister, hon members and esteemed guests, agriculture in Africa can become the backbone of economic development. A mere 10 years ago, the extent of agricultural production in South Africa was a high and significant portion of GDP. Given the booming economic times, one would have expected this trend to grow. But it did not.
Linked directly to the sloppy manner in which agricultural support was rolled out, it became clear that there was no plan to maintain the high productivity levels despite the change of ownership of agricultural land. This is a sad and sorry state of affairs, given the levels of poverty in our country.
Sadly, our country is not the only one. The collapse of agriculture is the weak spot in many African economies. At a summit in Maputo in 2006, African countries committed themselves to ensuring that at least 10% of their national budgets were allocated to agriculture, given agriculture's multiplier effect on the economy and its undergirding significance in ensuring food security - matters that stand between the perpetual hunger of our people and a more prosperous and healthy life.
Needless to say, years later many countries, including our country, don't even exceed 4% on average of their national budget, with a shocking 1% allocated to agriculture, including land affairs. With this kind of undercapitalisation of agriculture, the chances of elevating its intervention in the economy to its full potential are very slim. Hon Minister, this has to change if we are serious about using agriculture to fight poverty.
At the same meeting it was acknowledged that Africa's agricultural challenges could be summed up as follows: undercapitalisation of agriculture, as already referred to; inadequate use of mechanical and agro chemicals; and inadequate investment in irrigation schemes and technology, as well as low land and labour productivity. Where is the master plan to make sure that South Africa tackles all these challenges?
Cope believes that there is a need for an emergency plan to ensure that agricultural interventions become the pillar of how this government shields ordinary people from the effects of the recession and makes them part of a sustainable development plan to use agriculture to get out of poverty and hunger.
Hon Minister, for years South Africans have been hearing phrases such as "agrarian reform" and "agrarian revolution". As South Africans, we are yet to taste the fruits despite many seasons of wait.
We have noted some of the initiatives to give our people a head start with household-based agricultural interventions, especially in rural areas. While this is obviously commendable, it is highly inadequate in the absence of increased agricultural officers to handle the increased load of people who will now be needing assistance at household level to start their own household-based subsistence farming.
Parliament must interrogate this aspect more when the department implements the idea further. Investment in community-shared irrigation systems must become part of this plan. It is no longer viable just to introduce miniscule initiatives that speak to individual food gardens. Initiatives that get communities to maintain and produce surplus for sale could create jobs and increase the potential of viable agricultural enterprises.
One of the most immediate impacts of the recession on our people is the high food prices. The matter goes to the heart of the fight against hunger. Cope supports a full investigation by the SA Competition Commission into any collusion by the big four retailers to inflate food prices. In the face of a recession we believe that this would be most immoral and that these businesses should be brought to book and made to be part of a solution to fight hunger and not to exacerbate it.
There must be a way that government, through its procurement muscle, is able to force the hand of business to come to the party on the issue of lowering food prices. Interventions in the past to revise the tax regime for food need to be urgently examined to see how to lighten the weight for ordinary people who rely on certain staple foods to keep healthy.
If we link this to the high number of people on HIV and Aids medication who require proper nutrition for their medication to be effective, you would realise that, once again, the neglect in this area could militate against our intervention on combating diseases that are opportunistic when it comes to HIV and Aids, let alone stem the pandemic itself.
There is no doubt that there is a race against time in making agricultural reform part of the plan to fight poverty. Commercial farming, in which individuals and their families produce a surplus and sell or barter it for cash or other goods, whether on a small or large scale, is critical for rural development. The type of farming practised depends hugely on rainfall, soil type and local microclimates, and no commercial farming can take place without access to a market. The key to the development of country towns is the existence of commercial farming where the farmer, the farmworker and their families can source supplies and services and contribute to the life of the community. There is a need to examine very closely some form of agricultural processing to be part of the development.
The wood-processing plant in Ugie has brought about great development and created many jobs over a very short period. Small initiatives, such as weaving and brick-making, all help. A huge factor for development is if there is some form of tourist potential. This way, there is a link to possible exports in the future given the potential international exposure of such initiatives.
Recently, a huge amount of publicity was given to the fact that thousands of South African farmers would be seeking greener pastures in countries like the DRC. There is a reality that we have to face, given the uncertainty relating to land reform, that many farmers are looking at other options. We have to stem that tide. Even in the face of many black emerging farmers, it is important that we keep the skills of white farmers in our country from migrating.
Creative partnerships between established commercial farmers and emerging black farmers cannot be overemphasised. This process requires the speeding up of land reform and policy stability to enable proper planning and encourage more, and not less, investment. An important factor in this regard is the challenge to take stock of broad- based black economic empowerment in this sector. Simply allocating more funds to the programme is not the way to go. We need to assess what is in place since the adoption of the charter and how businesses in this industry are partnering with small and medium enterprises, how they are changing their procurement patterns given the recession and, more crucially, how enterprise development is taking root to ensure the transformation of the sector.
Cope strongly believes that only through a consistent enterprise development programme can the support given to emerging farmers be truly meaningful. This is the eye through which we have to assess the impact of BBBEE on agriculture. Issues of ownership and management control are crucial but become meaningless if farms are handed to people ... [Time expired.] [Applause.]