Empowering SA’s emerging farmers: The story of Nceba Jakavula

JOHANNESBURG — It’s not often that one hears the stories of emerging farmers in South Africa and the challenges they go through. Amid noise around land reform and the politics that go with it, it’s these voices that get lost in the cacophony. So, it was an interesting opportunity to chat with Nceba Jakavula, a chicken farmer in King William’s Town, in the Eastern Cape. Jakavule recently benefited from financial training from Santam and is busy trying to acquire a farm in the region with the help of government. – Gareth van Zyl

It’s a pleasure to welcome Nceba Jakavula who is a farmer from King William’s Town who recently benefited from financial education training from Santam. Nceba, thank you for joining us?

Thank you, sir.

Can you tell us more about your farm in the Eastern Cape there? I believe that you started with six chickens but it’s now much more than that?

Yes, I’ve got a chicken farm there in the Hanover location. I just started with 6 chickens, but those chickens are growing. I did try them to make the nests to get them to lay the eggs and they hatched the eggs. At the moment I am still struggling with the feed but since I’m working, when I get paid, I buy a lot of food for the chickens. These chickens, I want to try to produce more. At the moment I’ve got 141 chickens. I bought a piece of land there, in Hanover. It’s about 3.5 hectares. So, now I want to build more structures there because at the moment I’m working and I’m doing this farm at home. But I want to go to agriculture to assist for support for the structures, for the feed, and for the incubators so that I can make those chickens quicker. No chicken can stay in a nest now so, I just use the machine now to hatch the chickens.

Can you tell us more about the type of chicken farming that you are doing because I believe that it’s free-range chickens that you are farming?

Yes, it is free-range chickens. But it’s a Xhosa chicken. I’m not using those red ones. It’s the red chicken, the black chicken, and that black and white chicken, and a little bit white chicken but it’s a Xhosa chicken.

So, with it being a Xhosa chicken is that different from the other chickens that are farmed across SA then? Is it different in any way?

Yes, because those chickens are very strong. They don’t eat too much. They are strong in each and every way. Whether it’s raining – they’re strong. No matter if it’s sunny and they don’t need that big structure, the structure that… Even when it’s cold they stand through the cold and even for the sun.

Who do you supply your chickens or your eggs to? Is it mainly eggs that you’re farming as well or are you selling the chickens too? Who do you supply and what do you supply them with exactly?

Well, at the moment because it’s a new farm, it’s a new coop. What I’m doing now is I’m selling in the community, the eggs, but I’m looking to sell to those people who are doing the bed and breakfasts. I want to go to the schools to sell those eggs. I even want to supply Spar, Checkers and all of them but at the moment I’m still selling these in the community. Even in the department because most of the time I’m taking these eggs, for instance, on the 15th I’m taking these eggs to those people in town to sell it.

What has business been like for you in town? Has there been a big demand for your chickens?

Yes, there’s a demand that’s why I want to have that incubator now because I’m not [inaudible 0:04:38.7] too much now because when the chickens hatch the chicks – I don’t have enough to supply so, that’s why I decided to apply to get support for the incubator. Then if I can get an incubator then I can produce more eggs.

Santam have also helped you with financial education so, can you tell us more about what they helped you with exactly?

Yes, Santam did a great job because they took me through a course to study financials so, I did attend the course. After that course I saw that this farming will make me too far.

What is your final goal with your business? I’ve read that you want to target a R5m revenue for the year so, how far away are you from achieving that and what is your ultimate goal with your business?

At the moment I don’t know because I didn’t buy these chickens because I’ve got to be at home. At the moment I’m still struggling because I’m feeding the chicks, they will grow up, then they lay those eggs. I’m taking those eggs and the money that I’m getting from the eggs and buy the feed for them and buy the medication for them. Most of the time I’ve got a challenge of rent, I’ve got a challenge of these sicknesses because at the moment I don’t have the experience in this farming quarter – I’m a start-up. So, I think if Santam can give me more education. For instance, if they can teach me about how to make this chicken farm.

Okay, and if there’s maybe any other people who are listening to this podcast? How can they get in touch with you to help you? Do you need any assistance from that point of view?

Yes, I did go to the Department of Agriculture to assist me with the structures and the fencing. I applied to give me the assistance for the equipment of the drinkers, the feeders, and other stuff, and the medication. I went to the Department of Land Reform too. At the moment now, I’m trying to buy a farm which is 19.7 hectares. I’m in the process of doing that. That farm is R1.6m so, Land Reform is going to help me but I need the documents. At the moment it’s only one document that I need, which is the water use license, so I’m busy at that the moment with the Department of Water Affairs.

Okay, so you’re getting quite a bit of assistance from government departments already?

Yes, even the officials of agriculture are trying to help me each and every day. When I phone them, they try to assist me with everything.

And they’ve been helpful to you?

Yes, very helpful to me. Even now after this call, I will speak to them because I need a tractor. I’ve got a piece of land and I want to plant cabbage, and spinach and other things to feed these chickens.

Nceba Jakavula, thank you so much for telling us more about your farming business. I wish you the best of luck with it.

Okay, thank you very much.


Empowering emerging farmers in SA

Press release from Santam:

In 2018, Nceba Jakavula – age 47 – got six chickens from his grandmother Mpafi and decided to be a chicken farmer. “I saw a need to sell free-range, organic eggs, with a ‘nest-to-mouth’ approach. That’s what differentiates me from my competitors.” Jakavula says the journey has been a challenging one, with his lack of experience making it a high-risk endeavour.

However, he believes there are big opportunities for young people in the agriculture sector. “In five to ten years’ time, I’d like to see my farm have a turnover of R5-million a year. I think farmers play a big role in our economy and could stand up together to fight poverty.” To help emerging farmers achieve their dreams, Jakavula says public-private partnerships should help provide education and support.

One company that is deeply committed to uplifting emerging farmers is Santam. South Africa’s largest short-term insurer focuses on providing consumer financial education (CFE) to help farmers manage the financial aspects of their business successfully. Tersia Mdunge, CSI Manager at Santam, says they aim to ensure farmers are equipped to grow flourishing business and take care of their own personal finances successfully. “This is a critical part of the development and upliftment of the agricultural sector in South Africa on many levels from food security to overcoming poverty.”

It is imperative to equip emerging farmers to handle the primary challenges they face through the effective transfer of skills. The agriculture sector was the strongest driver of South Africa’s GDP growth in 2017, it is vital that corporate companies invest in it. Part of this means assisting emerging farmers with risk mitigation – especially risk pertaining to climate change and the increase in catastrophes.

Some of the primary challenges young farmers face

Gerhard Diedericks, Head of Agriculture Unit at Santam says that a recent report that is yet to be published by the South African Insurance Association (SAIA) indicates close to 42% of farmers’ losses result from droughts, while 57% are the result of storms (29%) and floods (28%). About 20% of smallholder farmer risk is attributed to floods, fires and natural disasters.  These figures clearly demonstrate the need for strong skills training to deal with pests, diseases and damage resulting from erratic weather.

While disaster management is one part of this, another strong component is the transfer of business skills and financial education. In 2018, Santam’s CFE reached 575 black farmers in three different provinces, with the aim of assisting these individuals to successfully switch from subsistence to commercial farming. Santam contracted two service providers to offer consumer education to the targeted group of farmers: Farm for Africa in the Eastern Cape and Limpopo, and Buhle Farmers’ Academy in Gauteng. Jakavula was one of the young farmers who benefitted from the CFE programme in 2018.

In addition to skills development, crop insurance is also critical to mitigate weather-related risks. The subsidisation of small-scale farmers by governments, NGOs and other aggregators, makes crop insurance affordable and accessible to previously uninsured farmers.

Diedericks says, “As a member of SAIA, Santam’s Agricultural Unit participated in the creation of a public-private partnership to provide crop insurance solutions to emerging farmers. Our specialists support and work very closely with underwriting and claims teams in emerging markets. They jointly underwrite, monitor and conduct loss assessments. They also conduct training and capacity building programmes. This collaboration and practical knowledge exchange is intended to ensure that a pool of local experts is retained in these markets.”

In total, over the last four years, Santam has assisted 3 428 farmers. However, Mdunge says there’s far more to be done, “We want to help emerging farmers to develop the skills and confidence to become more aware of financial risks and opportunities, make informed choices, know where to go for help, and to take other effective actions to improve their financial well-being. This includes understanding the role of agricultural insurance in risk mitigation and assisting black farmers with access to production credit and multi-risk insurance. We believe South Africa needs more of this kind of initiative.

Today, Jakavula has 145 chickens (65 females, 10 males and 70 chicks) and dreams of expanding his egg farm dramatically in the next five years. With the right skills, ongoing support, access to multi-risk insurance and production credit, he has all the potential to make it happen. Jakavula recently added pigs to his farming business, starting with five pigs and planning to expand when time allows.

The success of Santam’s emerging farmers programme:

Tersia Mdunge, CSI Manager at Santam says public-private partnerships like Santam’s partnership with Buhle Farmers Academy are essential to upskill emerging farmers. The success of these kinds of programmes can be judged by:

  1. The sustainable production of profitable crops on every hectare
  2. Increased financial returns for farmers, plus reduced production costs
  3. Improved tillage practices
  4. Better commercial marketing of crops
  5. Improved knowledge of production practices, land use, resource utilisation, mechanisation and modern technology
  6. Improved business acumen
  7. The sustained transformation of the agriculture sector
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