As Minister for Agriculture in the Western Cape, I want to extend a very warm word of welcome to you all. I do this on behalf of the Government of the Western Cape and specifically on behalf of the Department of Agriculture. Welcome in Ikapa Elihlumayo where it is our vision to create a home for all our people and where Agriculture provides the food for the table in this home.
In looking at your agenda and the wide scope of very interesting and relevant topics I am convinced that we could all benefit from the deliberations that will take place at this conference especially with the emphasis on food security and the introduction of Triticale in the development of strategies for bio-fuels.
As always I cannot pass up a good opportunity like this, to introduce you to this growing Cape, where agriculture is the main contributor to the economy and our fight against poverty.
It is apparent that agriculture plays an important role in the economy and it is clear that this sector has grown consistently since the political transformation of 1994.
I am a firm believer in research and the development of technology to face up to the challenges that we encounter in Agriculture on a daily basis. The Provincial Department of Agriculture is committed to Crop Research. This year we have allocated R45 926 000 for Technology, Research and Development from our annual budget, which totals just over R254 million.
One of our major challenges is the change in weather patterns and the cyclical drought spells that we encounter. This has compelled us to embark on programs on sustainable crop rotation and alternative farming systems that could contribute to the management of water scarcity on the long run.
Among the many research projects being conducted by the Plant Production Institute of the Western Cape Department of Agriculture are two large-scale, long-term crop rotation experiments. One is located in the Swartland at the Langgewens Research Farm and the other at three locations in the Southern Cape. Both these experiments are strongly supported by the private sector that sponsors the annual working capital requirements.
These projects are an excellent example of "demand-driven research", the research need having been identified in collaboration with the Department, Agri-business and producers. Both emerging and established commercial farmers are benefiting from the continuous flow of production and financial information generated by the experiments.
The projects are designed to run for at least 20 years. Long-term trials of this nature yield data of increasing value, the longer they continue and provide real-time production data that indicate economic sustainability of grain production systems in the Province.
The need for the introduction of new / alternative crops in the farming systems of the Western Cape were underlined by the severe drought situation that we experienced from 2003 to 2005 as well as by the constant downward pressures on the profitability of traditional crops, like wheat.
A research programme was launched to evaluate the potential of various new crops for the Western Cape. A good example is canola, where since the starting of trials 10 years ago, it is now a fully-fledged crop that fulfils an important role in sustainable crop rotation systems. We are currently investigating honeybush tea, flax, Triticale and various vegetables under irrigation.
A main focus of the programme is also to evaluate alternative farming systems for marginal wheat production areas such as the "Rooi Karoo" north of Piketberg. Examples are in place in the Southern Cape, where farmers have switched from wheat production to low input crops like Triticale to be incorporated with their small stock enterprise. In the marginal areas, this proved to be more sustainable than traditional wheat production; therefore the investigation to implement such systems for the Swartland is justified.
I must admit though that for a long time Triticale has been a somewhat neglected crop in the Western Cape Province. Due to established market players and consumers preferences this has been a market driven occurrence. With profitability of cereal growers in the Western Cape coming under increased pressure due to external market factors such as globalization and increased costs due to biotic and abiotic stresses being on the increase, this would however need to be reassessed and current crop and market choices revisited.
Together with this is also the need for national, provincial and local government in South Africa to develop the rural economies and our effort to address poverty. This can be made possible by enhancing the profitability of current commercial farmers, creating opportunities for new emerging farmers and by putting the people back into ailing rural communities.
One of the most exciting prospects from a Provincial Government point of view at the moment is the exciting development in the field of renewable energy. Currently a global drive is made for the utilization of more green sources and cereals are a very exciting prospect in the Western Cape Province. Currently a Western Cape Task Team has been establish and is exploring possible crop options. Triticale is one of the most promising cereals for this in the Western Cape.
The development of our rural economy and our effort to address poverty is two main priorities for government. Therefore, the basic and applied research on Triticale promise to directly benefit these two priorities.
In the long term, the demand for ethanol-based fuel will likely continue to increase. Research aiming to further knowledge regarding the ethanol output and ethanol yield from the available Triticale varieties in South Africa should be encouraged and is opportune. The basic and applied research on Triticale, as done for instance by our own Stellenbosch University, promise to directly benefit these two priorities.
Currently the Western Cape Province produces just more than 1 million tons of grain annually. Of these, Triticale amounts only to 4,3 % of the total tonnage produced. With the envisaged Bio-ethanol developments in our Province we expect a dramatic increase in the production of Triticale.
Producers will benefit from the promising developments on bio-ethanol production from Triticale. Triticale varieties are suitable for use in the processing of ethanol and offer high crop yield potential at a potentially lower production cost when compared to wheat. The ethanol yield from a hectare of Triticale competes favourable with that of other winter grains on a production cost basis.
As a grain for industrial energy use we believe Triticale may offer the following;
- Higher ethanol yield per hectare and price competitiveness with other grains
- Higher starch content and conversion rates to ethanol
- A market for co-products
However, a grain for industrial use also needs support in a form of a regularized grain supply chain to ensure Triticale production Also incentives are needed for the ethanol to be competitive with petroleum in the market. The Central Energy Fund and Industrial Development Corporation are currently looking at projects which will aid in the commercialization of Biofuels and it is envisaged that challenges identified in pilot projects which will be initiated in the first quarter of next the year will aid the Cabinet to make more informed decisions.
In parallel with this process on national level, the Provincial Department of Agriculture already investigated the feasibility of bio-ethanol production in the Western Cape Province based on winter grains as feedstock. It is found that bio-ethanol plants might be financial viable with a return of 23 % on total capital invested. This return on total capital invested increase to 35 % mainly due the increase (+27%) of the wholesale petroleum price at the coast from R4.99 per liter to R6.36 per liter between Jan 2006 and August 2006.
As a Department we would like to encourage the contribution research efforts will make to increase the ethanol yield per hectare of our future ethanol producers. This will directly make a contribution to our rural economy and to reduce poverty among rural communities that are dependent from Triticale production. Triticale research will also open up new opportunities together with the support of the MAFISA program and local Biofuels initiatives in the province to expand current Triticale production and to support new entrants to the production of Triticale as well as their dependants.
Many Communities may benefit directly from Triticale research. For each entrepreneur that enters Triticale production a number of 15 dependants may directly benefit by ventures like these. We need to support research on Triticale in order to make a positive contribution to the lives of individuals.
It is common knowledge that the prosperity of the agricultural sector is linked to the extent to which primary production is aligned to the needs of the economy, both in terms of direct consumption of primary commodities and the demand for agricultural raw materials at the manufacturing level. It is important therefore that the vision for agriculture is seen in a broader view of the larger economy rather than a narrow focus on primary agricultural production.
The expansion of the industrial sector will lead to new job opportunities for which the agricultural sector is supposed to release labour. Due to the unique income elasticity of demand in developing countries, this in turn will again lead to increased demand for agricultural products, and therefore the start of a new cycle or, in other words, an upwards spiral of economic growth. It is therefore clear that productivity in the agricultural sector can play an important catalytic role. I want to believe that Triticale can become a major contributor to this process.
Program Director, I understand that this congress was awarded to South Africa as recognition of the outstanding work that the Stellenbosch University Plant Breeding Laboratory is doing. We are extremely proud of this and trust that you will not regret this decision. On behalf of the Government of the Western Cape and especially the Department of Agriculture, I trust that you will not only have a very fruitful congress, but that you will also have time to experience our good weather and good wine while you are here.
Enquiries:
Alie van Jaarsveld
Spokesperson
Ministry of Agriculture: Western Cape
Tel: 021 483 4930
Fax: 021 483 3890
Email: avjaarsv@pgwc.gov.za
