The stakeholder engagement workshop headed by the North-West Department of Agriculture and Rural Development hosted representatives from the National Agricultural Marketing Council (NAMC), University of Pretoria (UP) and PepsiCo Inc at the Potchefstroom Agricultural College on the 10th of November 2023. Key to the conversation of these stakeholders was the agricultural value chain as well as funding opportunities within the sector.
The robust discussions on the “Rapid change in South African beef chains: A case study
of the North-West Province,” a research study currently being conducted by Dr Dani
Jordaan from the University of Pretoria included departmental economists and managers.
According to Dr Jordaan the evolution of the beef value chain over decades being driven
by the continuous increase of consumption as income rise. “This is attributed to the lower
calorie-dense starchy staples and relatively more nutrient-dense meats, oils, fruit and
vegetables diet. Thus the high demand of beef causing the triple increase in retailing
through supermarkets and food services footprint,” explained Jordaan.
The UP representative highlighted various opportunities within this farming sub-sector,
however large capital is required to ensure the sustainability and profitability of these
businesses, especially black farmers who often find themselves with limited funding orack of access to markets. NAMC also presented on the Cassava value chain and the
economic overview of strategic crops opportunities.
In order to address the access to markets and funding challenges, Mr Diale from PepsiCo
spoke on the Kgodiso Development Fund’s Agricultural Development which aims to
transform the South African agricultural landscape by developing a new generation of
sustainable farming enterprises and prioritises impacts across the full value chain through
increased access to education, finance and mentorship for women, youth, and black South
Africans. The Fund empowers black farmers through funding, business development,
increased access to market and is committed to building the professional capacity of
emerging black farmers while increasing the adoption of regenerative agriculture practices
to build farmer resilience.
PepsiCo’s contract farming opportunity is one of the opportunities that align with
department’s strategic objectives in terms of facilitating market access for small-holder
farmers.
This engagement is another step in the right direction as MEC Desbo Mohono has
committed the Department to ensure a collaborative effort in its service offerings. “We are
facing significant challenges of high unemployment, weak economic growth prospects,
rising poverty and inequality. Agriculture is one resilient sector and empowerment is key
for farmers and prospective ones. We therefore need to attract investment in the sector
so that our farmers can be not only be looking into government for support but from
partners as well, “ MEC concluded.
