changing subsistence farmers into commercial farmers and creating the new Middle Class

1. MacadamiasMacadamias
Creating the new agriculture middle class

2. MacadamiasMacadamias
ESTABLISH AESTABLISH A
PROFITABLE ANDPROFITABLE AND
SUCCESSFULSUCCESSFUL
MACADAMIA INDUSTRYMACADAMIA INDUSTRY

3. INTRODUCTIONINTRODUCTION
 Agriculture is the most important driver for broadAgriculture is the most important driver for broad
based economic developmentbased economic development
 Macadamia is a high value crop with meduim toMacadamia is a high value crop with meduim to
long term production yieldlong term production yield
 Macadamia nut sales presently represent lessMacadamia nut sales presently represent less
than 2% of the global nut basket increase inthan 2% of the global nut basket increase in
production sites are still lagging the globalproduction sites are still lagging the global
population increase.population increase.

4. MacadamiasMacadamias
AdvantagesAdvantages
 Easier crop to farm with, if the following 5Easier crop to farm with, if the following 5
principles are adhered to:principles are adhered to:
 Select best genetics and cultivarSelect best genetics and cultivar
 TrainingTraining
 Co-Operative assistanceCo-Operative assistance
 Central researchCentral research
 Central processing marketing systemCentral processing marketing system

5. Macadamia advantagesMacadamia advantages
Offers the Possibility of Inter CroppingOffers the Possibility of Inter Cropping
 Sugar CaneSugar Cane
 BambooBamboo
 PineapplePineapple
 CattleCattle
 PapayaPapaya

6. Macadamia PotentialMacadamia Potential
 AustraliaAustralia -- 8 200(2011)/40 000(Currently)8 200(2011)/40 000(Currently)
 South AfricaSouth Africa -- 8 514(2011)/48 000(Currently)8 514(2011)/48 000(Currently)
 HawaiiHawaii -- 6800 (2011)/7500 (currently )6800 (2011)/7500 (currently )
 Hawaii production started in 1950 – 870 haHawaii production started in 1950 – 870 ha
 Currently have 1.3 million trees in production producing 3.2Currently have 1.3 million trees in production producing 3.2
tons per hectare with 180 trees per hectare 20.9 Million tonstons per hectare with 180 trees per hectare 20.9 Million tons
 Farm value production is valued R 1.5 billion based on AfricanFarm value production is valued R 1.5 billion based on African
union price structure.(Dept. AGRI state of Hawaii 17/06/15)union price structure.(Dept. AGRI state of Hawaii 17/06/15)
 Present proposal is for 225 trees per hectare- 6000ha (15-Present proposal is for 225 trees per hectare- 6000ha (15-
20yrs)20yrs)

7. Project implementationProject implementation
 System based technology usingSystem based technology using
 Incubation trainingIncubation training
 Geo-tagging and GIS system data captureGeo-tagging and GIS system data capture
 Remote sensingRemote sensing
 Recommendation and action technologyRecommendation and action technology
 Technology packagingTechnology packaging
 Superior genetic planting materialSuperior genetic planting material
 Advanced irrigation and fertigation systemsAdvanced irrigation and fertigation systems
 Remote sensingRemote sensing

8. Project implementationProject implementation
 Operational centre of excellenceOperational centre of excellence
 Scientific and biological supportScientific and biological support
 Extension officerExtension officer
 Operation managementOperation management
 Processing and manufacturingProcessing and manufacturing
 DryingDrying
 CrackingCracking
 Separating and gradingSeparating and grading
 Roasting & GradingRoasting & Grading
 Salting and Packaging StorageSalting and Packaging Storage
 MarketingMarketing

9. Two Fold StrategyTwo Fold Strategy
Commercial agricultural unit 1000ha (5-10yr)Commercial agricultural unit 1000ha (5-10yr)
Small scale Farmer development 30ha (1-2yr)Small scale Farmer development 30ha (1-2yr)
Build the industry to 6000 ha (10-20yr)Build the industry to 6000 ha (10-20yr)

10. DevelopmentDevelopment System ObjectiveSystem Objective
 Rapid transformation from subsistence farming intoRapid transformation from subsistence farming into
commercial producercommercial producer
 Systems that facilitate semi-skilled Extension officer inSystems that facilitate semi-skilled Extension officer in
provision of high level applied agriculture expertise.provision of high level applied agriculture expertise.
 System implementation with rapid upscale capacity forSystem implementation with rapid upscale capacity for
range of crops and locationrange of crops and location

11. Development System ObjectiveDevelopment System Objective
 Monitoring toolsMonitoring tools
 YieldYield
 Risk managementRisk management
 Client farmer evaluation and profile developmentClient farmer evaluation and profile development
 Production estimatesProduction estimates
 Quantification of interventionsQuantification of interventions
 Across the board evaluation of implementationAcross the board evaluation of implementation
agenciesagencies
 Traceability of agriculture productionTraceability of agriculture production
Continuous capture of crop production and trainingContinuous capture of crop production and training
systems to improve project implementationsystems to improve project implementation

12. Assumptions & ChallengesAssumptions & Challenges
 Require aRequire a Stable and non–corrupt governanceStable and non–corrupt governance
systemsystem
 Income share of middle class is the key for a stableIncome share of middle class is the key for a stable
democracydemocracy
 Increase in income share of middle class ensuresIncrease in income share of middle class ensures
equilibrium of taxes – potential of corruption andequilibrium of taxes – potential of corruption and
revolution decreases (Debs&Morrison 2015)revolution decreases (Debs&Morrison 2015)
 Agricultural sector is a sector that accelerates broad-Agricultural sector is a sector that accelerates broad-
based economic development rapidly.based economic development rapidly.

13. Assumptions & ChallengesAssumptions & Challenges
 If Assumptions are correct?If Assumptions are correct?
 Main challenge is :-Main challenge is :-
 How to effectively utilise agriculture toHow to effectively utilise agriculture to
a create middle class?a create middle class?

14. ChallengesChallenges
 Small scale farmers developed need to compete withSmall scale farmers developed need to compete with
commercial farmers and global market in short space ofcommercial farmers and global market in short space of
time.time.
 Key role of incubator is to protect the farmer until theyKey role of incubator is to protect the farmer until they
are ready to take on global and commercial sector.are ready to take on global and commercial sector.

15. Key challengesKey challenges
 Scale – General trend is to scale up largerScale – General trend is to scale up larger
farming unitsfarming units
 Steady production increase - High value cropsSteady production increase - High value crops
need to increase yearly to maintain profitneed to increase yearly to maintain profit
 Technical – Farming is Hi-tech business requiresTechnical – Farming is Hi-tech business requires
access to sophisticated technical expertiseaccess to sophisticated technical expertise
 Literacy/numeracy –Poor literacy numeracy skillsLiteracy/numeracy –Poor literacy numeracy skills
 Subsidies -Small scale farming compete againstSubsidies -Small scale farming compete against
11stst
world subsidized farmersworld subsidized farmers

16. AddressingAddressing
Assumptions & ChallengesAssumptions & Challenges
 Focus on crops production systems capable ofFocus on crops production systems capable of
generating middle class income ($5000 -$20 000)/ unit ofgenerating middle class income ($5000 -$20 000)/ unit of
land in terms labour and management by a family unitland in terms labour and management by a family unit
 Incorporating Smaller unit of lands within same locationIncorporating Smaller unit of lands within same location
into larger farming unit (30ha)into larger farming unit (30ha)

17. StrategyStrategy
 Large number of people can empowered in a relativelyLarge number of people can empowered in a relatively
small area. Reduction in bulk infrastructure, logisticalsmall area. Reduction in bulk infrastructure, logistical
and program management challengesand program management challenges
 If farm worked by family unit Reduce management loadIf farm worked by family unit Reduce management load
on extension officer focus on aspects to increase growthon extension officer focus on aspects to increase growth
and yieldand yield
 Increase social financial return per unit and blockIncrease social financial return per unit and block
developmentdevelopment
 Optimise agricultural resources for target blockOptimise agricultural resources for target block

18. StrategyStrategy
 Strategy is dictated that focus is on high value crops withStrategy is dictated that focus is on high value crops with
significant profit marginsignificant profit margin
 No simple answer to ensure small farms are competitiveNo simple answer to ensure small farms are competitive
against first world marketsagainst first world markets
 Challenges areChallenges are
 Advantage of scaleAdvantage of scale
 SubsidiesSubsidies
 Technical expertiseTechnical expertise
 educationeducation
 InfrastructureInfrastructure

19. Two Key StrategyTwo Key Strategy
 Identify climate and agriculture recourse zones thatIdentify climate and agriculture recourse zones that
provide farmer with significant advantages overprovide farmer with significant advantages over
competitorscompetitors
 Climate that permit supply of product at a differentClimate that permit supply of product at a different
peak windowpeak window
 Climate optimal for productionClimate optimal for production
 Environment where input cost can be significantlyEnvironment where input cost can be significantly
reducedreduced
 gravitational water over pumpinggravitational water over pumping
 Correct soils -drainage ability to sustain long termCorrect soils -drainage ability to sustain long term
crop.crop.

20. Two Key StrategyTwo Key Strategy
 Integrated incubation and technologyIntegrated incubation and technology
packaging methodologypackaging methodology
 Eliminates challenges related to poor literacyEliminates challenges related to poor literacy
and no exposure to commercial agricultureand no exposure to commercial agriculture
 Produce a farmer better than commercialProduce a farmer better than commercial
counter partscounter parts

21. Incubation & TechnologyIncubation & Technology
PackagingPackaging
 Incubation and mentoring is a familiar conceptIncubation and mentoring is a familiar concept
 Technology Packaging is the game changerTechnology Packaging is the game changer
 Developing and maintaining high value crop basedDeveloping and maintaining high value crop based
farms yield needs to increase by 2-7 % per annumfarms yield needs to increase by 2-7 % per annum
maintain constant profitsmaintain constant profits
 Simply training farmers to produce crop in staticSimply training farmers to produce crop in static
procedure will set the unit for failureprocedure will set the unit for failure
 Sugar subsidy or favourable pricing is removed challenges toSugar subsidy or favourable pricing is removed challenges to
sustainability.sustainability.
 Not been able to adapt to higher yield required toNot been able to adapt to higher yield required to
ensure profitability.ensure profitability.

22. System integrationSystem integration
Software principleSoftware principle
 Designed on Cloud Based Wizards and Data capture.Designed on Cloud Based Wizards and Data capture.
 Similar to process found in software eg Microsoft.Similar to process found in software eg Microsoft.
 A wizard guides you through the complex processA wizard guides you through the complex process
producing a product following simple wizard generatedproducing a product following simple wizard generated
instructions and recommendations.instructions and recommendations.
 Enable Extension Officer and Farmers to make complexEnable Extension Officer and Farmers to make complex
business and Production decisionsbusiness and Production decisions

23. System integrationSystem integration
 Approach has a number of implicationsApproach has a number of implications
 Farmers are empowered, no longer a restriction on education orFarmers are empowered, no longer a restriction on education or
numeracynumeracy
 Training environmentTraining environment
 Used in training farmer provides the input Software showsUsed in training farmer provides the input Software shows
impact and effect of actions on farmer inputsimpact and effect of actions on farmer inputs
 Facilitation ensures the farmer come to logical conclusionsFacilitation ensures the farmer come to logical conclusions
by themselvesby themselves
 half fertiliser = reduce cost but reduce in yieldhalf fertiliser = reduce cost but reduce in yield
=reduction in profit=reduction in profit
 Result = greater buy inResult = greater buy in

24. System integrationSystem integration
 Training environment cont.Training environment cont.
 Prevents development of top down situationPrevents development of top down situation
developing -Farmer is required to take responsibilitydeveloping -Farmer is required to take responsibility
 Ensures farmer and trainer focus on critical conceptsEnsures farmer and trainer focus on critical concepts
and not calculation the resultand not calculation the result
 General farmers have difficulty converting theory intoGeneral farmers have difficulty converting theory into
practice.practice.
 Wizard adapts theory to the specific situation returnsWizard adapts theory to the specific situation returns
practical quantified easy to follow instructionspractical quantified easy to follow instructions
 All data entered is captured in the cloud utilized toAll data entered is captured in the cloud utilized to
improve farmers productionimprove farmers production

25. AdvantagesAdvantages
 Applicable to most crops rapid roll out in wide range ofApplicable to most crops rapid roll out in wide range of
scenarios and locationscenarios and location
 Each project adds more information to cloud base result inEach project adds more information to cloud base result in
automatic improvementsautomatic improvements
 Decisions recommendations are data based fundamentalDecisions recommendations are data based fundamental
logic is the same algorithm baselogic is the same algorithm base
 Technical expertise are captured by the system reductionTechnical expertise are captured by the system reduction
of the technical expertise required by extension officer andof the technical expertise required by extension officer and
farmer to manage programfarmer to manage program
 Day to day interaction conducted by the communityDay to day interaction conducted by the community
reduction in costreduction in cost
 Salaries are based on local norms not foreign based tariffsSalaries are based on local norms not foreign based tariffs

26. IncubationIncubation
 Key aspect provide a safe environment where farmersKey aspect provide a safe environment where farmers
have time to develop skills to compete with commercialhave time to develop skills to compete with commercial
farmersfarmers
 As number increase it becomes an impossible task toAs number increase it becomes an impossible task to
managemanage
 The systems monitor farmer progress againstThe systems monitor farmer progress against
recommendations made by systemrecommendations made by system
 Any deviation beyond set limits automatically red flagsAny deviation beyond set limits automatically red flags
 Permits rapid focused intervention before seriousPermits rapid focused intervention before serious
financial loss can be incurredfinancial loss can be incurred

27. Additional BenefitsAdditional Benefits
 Can objectively rate score farmersCan objectively rate score farmers
 Automatically generate reports to funders financialAutomatically generate reports to funders financial
institutions at any level of detailinstitutions at any level of detail
 Evaluate social & economic impact of project againstEvaluate social & economic impact of project against
resources spentresources spent
 Evaluate project implementation agencies based onEvaluate project implementation agencies based on
impact on ground and is transparent unbiased criteriaimpact on ground and is transparent unbiased criteria

28. Technology packagingTechnology packaging
 Superior plant geneticsSuperior plant genetics
 Through a centralised nursery based in South Africa.Through a centralised nursery based in South Africa.
 Micro-grafted plants are supplied to be grown on inMicro-grafted plants are supplied to be grown on in
satellite nursery environmentsatellite nursery environment
 Only basic knowledge of nursery managementOnly basic knowledge of nursery management
requiredrequired
 Ensures prime genetic selection for area an locationEnsures prime genetic selection for area an location
 Reducing technical knowledge and limited geneticReducing technical knowledge and limited genetic
material requirementsmaterial requirements
 Ensures rapid scalability of planting stock in a shortEnsures rapid scalability of planting stock in a short
time period 100 000 micro-grafts in 6 monthstime period 100 000 micro-grafts in 6 months

29. Technology packagingTechnology packaging
 Conventional nursery enterprise will delay project implementation byConventional nursery enterprise will delay project implementation by
4 years related to4 years related to
 seed sourceseed source
 grafting material in large scalegrafting material in large scale
 technical expertisetechnical expertise
 LogisticsLogistics

30. ROOT STOCK
MICRO
Grafted
Seedling
Mature tree
seedling ready for
planting 18mnths

32. Technology packagingTechnology packaging
 Highly advanced irrigation and fertigation systemHighly advanced irrigation and fertigation system
 Utilising water resource optimally low flow drip systemsUtilising water resource optimally low flow drip systems
incorporatedincorporated
 Open hydroponic fertigation system based onOpen hydroponic fertigation system based on
 Wizard recommendation determine byWizard recommendation determine by
 growth phasegrowth phase
 soils characteristicssoils characteristics
 leaf samplesleaf samples
 data capturing requirementsdata capturing requirements
 Remote sensingRemote sensing
 data acquisition and monitoringdata acquisition and monitoring
 Geotaging and GIS for plant health scouting trainingGeotaging and GIS for plant health scouting training

33. ConclusionConclusion
 Our system has been tried and tested in commercialOur system has been tried and tested in commercial
agriculture and small scale sectoragriculture and small scale sector
 The work has demonstrated that middle class can rapidlyThe work has demonstrated that middle class can rapidly
evolve from subsistence to middle classevolve from subsistence to middle class
 Commercial agriculture can rapidly improve yield andCommercial agriculture can rapidly improve yield and
reduce production cost and increase profit with areduce production cost and increase profit with a
reduced skills basereduced skills base
 Ensures rapid cost effective implementation ofEnsures rapid cost effective implementation of
incubation projects for commercial and small scaleincubation projects for commercial and small scale
projectsprojects

34. ConclusionConclusion
 Provides support to ensureProvides support to ensure
 Logical frame work for implementationLogical frame work for implementation
 optimal farmer developmentoptimal farmer development
 crop productioncrop production
 evaluationevaluation
 The increases in production blocks ensures that theThe increases in production blocks ensures that the
same key fundamental and data acquisition is usedsame key fundamental and data acquisition is used
effectively for all production units in the future.effectively for all production units in the future.