52 / 138
48
Support to advanced black commercial producers
There is still a gap between the more advanced developing producers and the commercial producers,
although progress is being made in this regard. Through the study groups, the producers are
supported with information and training – this to get them into production and to cultivate a basic
understanding of the maize industry. However, there are producers who are now beyond the type of
support that they get through the study group structures. These producers are already farming on
a semi-commercial scale, but they are not in a position to be left entirely to their own devices in the
commercial world. These are mostly the smallholder producers (10 ha to 250 tons). The purpose of
this programme is to support the outstanding candidates who have emerged from the study group
system. These producers need one-on-one support in terms of production planning, management,
support in terms of financial applications and reporting, etc.
In line with the interest to grow, advanced producers (smallholder to potential new-era
commercial) are faced by some of the following challenges:
High cost of equipment and capital goods.
Economies of scale and expansion barriers.
Most of these producers do not qualify for multi-peril insurance and where they do, the guarantee
is not enough to secure the loan.
Many producers do not meet the security requirements of the lending institutions to access
operational and capital finance.
In many areas, mechanisation is not available. In cases where there is mechanisation, the
conditions and implementation are often very poor. The government
has provided some areas with shared equipment and the man-
agement of this leads to poor productivity. Contractors using
this equipment are spread across a wide area and there
are huge challenges relating to this, which include the
timing of operations, the quality of the work being done
and the high costs involved (only the contractor ends
up making money).
Development interventions targeted at the advanced pro-
ducers are aimed at supporting the outstanding candidates
who have emerged from the study group system. These
producers need one-on-one support in terms of production
planning, management, support in terms of financial ap-
plications and reporting, etc. One of the main challenges
faced by developing producers is the access to production
credit. Every effort is being made to assist these producers to
access production loans from various institutions.
At the advanced producers’ level the needs are different, and
the programme objectives are structured to respond to this:
To identify and give on-farm service to individual producers.
To give these identified producers intensive training and support.
To access all the relevant information on these producers to assist them with applications for
funding, and to draw up a business plan for each producer.
To access recapitalisation opportunities where possible through the Department of Rural Devel-
opment and Land Reform in order to fast-track their development.
To assist producers to access production loans wherever possible so that these producers can
use the land available as well as possible.
To assist the producers with access to mechanisation in cases where this is a challenge.
The purpose of this programme is to support the outstanding candidates who have emerged
from the study group system as potential commercial and new-era commercial producers.
These are producers who may still need some level of mentorship or training in terms of their
business development, for example, production planning, business management, support in
terms of financial applications, drawing up business plans and reporting, etc. The main aim
FARMER DEVELOPMENT
TO
TO ACCESS
FROM
EVERY EFFORT
assist these
production loans
VARIOUS
INSTITUTIONS
PRODUCERS
IS BEING MADE