Hon House Chairperson, Ministers, members and esteemed guests in the gallery, the President stated in his state of the nation address that 2010 was the year of action, the year in which government would work harder and faster, prioritising education, health, rural development and land reform, creating decent jobs and fighting crime.
Agriculture affects the daily lives of each and every individual in our society and should be at the core of government's programme. Food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs. South Africa has 14 million people that are vulnerable to food insecurity.
Hon Minister, during your 2009 Budget Vote you stated that for the first time since the 1800s that the agriculture sector was bigger than the mining sector and had the potential to create the highest number of jobs per one million rand investment. However, in reality, instead of creating jobs, the sector has shed 57 000 jobs. This must impact on government's rural development programme.
Hon Minister, at the recently held Agri SA conference you stated that there had been a steady decline in agricultural productivity during the period 1994 and 2009, and that the area under agricultural production had in fact declined by 30%, leading to 40% more imports mostly of processed foods.
Hon Minister, you further indicated that R11,9 million was allocated to research and development in the department, and a further R573,1 million to the Agricultural Research Council in order to continue satisfying the research needs in agriculture.
Hon Minister, I want to ask you the question: When will the Agricultural Research Council board be appointed? Further, researchers are still leaving for ARC. What are we doing to keep them there? There is definitely not enough funding. I also want to ask: Why has the National Agricultural Research and Development Strategy not been implemented as yet? It's been a good couple of years now.
Hon Minister Nkwinti recently admitted that land redistribution had failed the agricultural sector, and that at least 90% of the 5,9 million hectares that the state had bought for emerging farmers was no longer productive. We need to ask ourselves the question why. In the modern farming world, farming is a business with more variables than most other businesses. It's a high-risk business.
Hon Minister, can we take a mechanic and ask him to do heart surgery? I would not. Besides practical skills, it is vital for emerging farmers to get the necessary technical and operational knowledge - with a sound product and environmental knowledge - and, very importantly, financial and business skills and access to resources and funding.
These emerging farmers don't hold title deeds. Most of them live and have lived far below the bread line. How do we expect them to source financial aid and be productive? It is not the emerging farmers that have failed in terms of food security in our country, but this very government.
A recent visit to the Eastern Cape by the portfolio committee, revealed that a PTO - permission to occupy - took eight months to be issued. And when it was eventually issued, it was valid for only one year.
It was also found that subsistence fishing communities that are totally reliant upon fishing for their livelihoods, were in dire straits because of the administrative bungling over the renewal of their concessions.
Government departments require an urgent shake-up. They need to have effective and skilled people in decision-making posts, and need to be devoid of political deployments and corruption.
Hon Minister, I must add that I appreciate your undertaking to appoint and fill positions, especially that of the department's director-general. Hon Minister Nkwinti stated that government has spent billions buying going concerns with the hope that production would continue, only to see them collapse. Once again, we need to ask the question why? Claims are not settled on time and, in some cases, they have taken years, putting the farmers into a bad situation. This affects not only the farmers, but, as we have also found, the people waiting to go to the farms in that they have a problem too because they are not getting what they were promised.
More recently, hon Minister Nkwinti's department created much unnecessary confusion regarding future land tenure rights. Now one wonders, given the ANC Youth League's recent visit to Zimbabwe, just what the ANC's standpoint is on this issue.
Cope asks that there be urgent intervention in respect of the electricity hikes. Milk production will cost an estimated R1,22 per litre more in 2011, and as much as R5,04 a litre more in 2014. Society cannot even afford it now. If we look at this year's maize demands, the country requires 9 million tons, but the National Crop Estimates Committee predicts that there are 13 to 15 million tons available.
We all know how supply and demand affects the prices. Currently, production costs per ton of maize amount to R1 500 a ton. The current market value is R900 per ton. This amounts to a loss of 40% of the actual investment cost.
Secondly, South African farmers are suffering from unfair competition from highly subsidised imports through dumping which undercuts local produce. Now, we need to ask ourselves a question: When did cotton production in our country stop? Could it be because of the 67% under-cost imports during the period 1996 to 2007?
Cope feels strongly that there is an urgent need to look at workable tariff policies, subsidies and alternative usages for excess production. There should be a production quota set for supply to the food market and, if that exceeds the quota, the excess should be put to other uses.
I think we should also consider looking into biofuels. This would ensure that production would continue and that farmers would not have to be concerned about overproduction and losses, which, in a year with unfavourable conditions, could lead to serious food security challenges. [Time expired.] [Applause.]