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Department: Agriculture2.2 Key challenges The sector in the province continue to face challenges amongst others include the following: %uf0b7 Geopolitical tensions (Russia/Ukraine war and Israel-Palestine conflict) disrupt global markets, affecting South Africa with trade disruptions, higher commodity prices, and tighter financial conditions. %uf0b7 Shrinking government funding limits the department%u2019s ability to transform the agricultural sector and address disparities between commercial and emerging agriculture. %uf0b7 High production input costs, lack of secure land rights, and barriers to entry for small-scale farmers challenge sector growth. %uf0b7 Load shedding, land degradation, and climate change threaten agricultural productivity, particularly in the Eastern Cape. %uf0b7 Stock theft and poor infrastructure (roads, irrigation) hinder effective agricultural value chain implementation, with the department collaborating with Community Safety to address stock theft. 3 OUTLOOK FOR THE COMING FINANCIAL YEAR (2025/26) The outlook is aligned to key government priorities outlined in the National Development Plan (NDP) and the Provincial Development Plan (PDP). The plan aims to support the strategic priority of fostering innovation and economic growth through an effective infrastructure network. The department%u2019s APP, derived from the departmental Strategic Plan, is in line with the PDP's focus on developing high-value agriculture as a foundation for rural sector growth and livelihood enhancement. To position the department as a driver of radical socio-economic transformation, will prioritize delivering efficient and effective services to our constituents in 2025/26 financial year and throughout the term of the 7th administration. The Provincial AAMP seeks to increase productivity and competitiveness of the district commodity value chains to increase food security, inclusive growth and employment. The implementation of the Provincial AAMP will be anchored on developing key district value chains: Horticultural crops %u2013 fruit and vegetables; Grain and oilseeds %u2013 summer and winter grain crops; Red meat %u2013 beef and mutton; Industrial crops %u2013 cannabis, tea, bio-fuel stock; Irrigation schemes; dairy; poultry; forestry; aquaculture and fisheries. With regards to the import substitution, the department will monitor the implementation of this pilot project very closely to proactively adjust accordingly where necessary. In the coming financial year, the project will expand to egg producers, development of aggregation concept to achieve scale through partnerships with the established producers and the South African Poultry Association (SAPA). In 2025/26, the Department aims to boost the economy by increasing the participation of black agro-entrepreneurs in the agro-processing value chain in the province through commercialisation of agriculture. Other initiatives include enhancing agricultural entrepreneurship programs for youth, women, and people with disabilities, developing partnerships for aggregators in Red Hubs and fresh produce markets, promoting import substitution of agricultural commodities, and offering comprehensive farmer support services. The total area of land that will be rehabilitated will be 6 295 ha creating 546 green jobs. Furthermore, to mitigate the impact of disasters as a result of climate a total of 150 advisories will be issued regarding Early warning. 540