Presented By; Mrs. N Msimang (Chairperson) Mr. TR Ramabulana (CEO) Mrs. S Muvhulawa (CFO) 2013/2014 NAMC ANNUAL OPERATIONAL PLAN

Key priorities for DAFF

National Development Plan (NDP)

Other realities

Our Targets

HR Objectives Organisation structure review Organisational performance system adhered to by line managers PMDS (number of times monitored) Recruitment Work place skills development budget utilised Labour relations support requested versus provided Wellness sessions conducted Compliance to human resource regulatory frameworks Employee satisfaction ratings conducted Employee satisfaction improvement plan facilitated

 The following risks were identified and mitigations strategies developed for each: -Appointment of unskilled, incompetent, inexperienced Ministerial Trustees. -Failure to effectively deliver strategic plan. -Non-Compliance (MAP Act) -Lack of Funding of Schemes/Project and Farmer Development -Little or no communication between the Farmers and the NAMC. -Inadequate information and communication technology ("ICT") support. -Inefficient Bid Process including selection of service providers. -Abuse of NAMC Resources Risks Identified

Statutory Measures The MAP Act provides for the following statutory measures: – Levies – Records and returns – Control of exports (currently not being used) – Registrations Register of Directly Affected Groups – section 20 Appointment of inspectors – section 21 17

 22 Industries Assisted  Over R1.4 billion was collected by industries  Levy Funds used for the following ;  Support for efforts in markets development and penetration  Export promotion research  Provision of reliable information  Transformation  Targeting two provinces, employment projection to 400 In this financial year, we will help industries collect cover R400 million

Functions Financed Through Statutory Levies - Past Four Years Total statutory levy expenditure – R1.2 billion Functions – Export market development – R142 million – Local consumer education – R134 million – Research – R354 million – Information – R131 million – Transformation – R259 million 19

Summary of statutory measures applicable in South Africa 2012 INDUSTRYAdministrating body Statutory Measures LevyRegistrationRecords & Returns Citrus (export only)Citrus Growers Association  CottonCotton SA  DairyMilk SA  Deciduous fruit (pome & stone) HORTGRO Services  Dried fruitDried Fruit Technical Services  Fynbos (proteas)HORTGRO Services  Grains (Maize, Oilseeds, Sorghum, and Winter Cereals) The South African Grains and Information Services (SAGIS)  LucerneLucerne Seed Organisation  MangoesSubtrop  MilkMilk Producers’ Organisation  MohairMohair SA  OlivesSA Olive  Pecan nutsSA Pecan Producers’ Association  PorkSA Pork Producers’ Organisation  PotatoesPotatoes SA 

INDUSTRYAdministrating bodyStatutory Measures LevyRegistrationRecords & Returns Poultry and eggsSouthern African Poultry Association  Red meatRed Meat Levy Admin  SorghumSorghum Trust  Table Grapes exportedSA Table Grape Industry  WineSAWIS, WIDA, Winetech and WOSA  Winter CerealsWinter Cereal Trust  WoolCape Wools SA  Summary of statutory measures applicable in South Africa (cont...)

22 Levies collected per commodity ProductTotal value at first point of sale R Levy income R Levy income as % of the value of the product % Levy collection rate % Citrus (exported) Cotton lint Dairy products Deciduous fruit Dried fruit Mangoes Pork Potatoes Poultry and eggs Red meat Sorghum Table grapes Wine Winter cereal TOTAL

Export promotion (market development) – expenditure in 2012 CommodityAmount Citrus Deciduous fruit Table grapes Wine Total Target markets Citrus Deciduous fruit Table grapes Wine UK, EU, USA, Russia, Middle East and Far East EU, Middle and Far East EU, USA, Japan, China UK, Germany, Sweden, Russia but also in USA, Canada, key African countries such as Angola and Nigeria, as well as China and Japan 23

Research – expenditure in CommodityAmount Citrus Cotton Dairy Deciduous fruit Dried fruit Mangoes Pork Potatoes Poultry Red meat Sorghum Table grapes Wine Winter cereals TOTAL

Information – expenditure in 2012 CommodityAmount Citrus Cotton Dairy Deciduous fruit Dried fruit Pork Potatoes Poultry Red meat Sorghum Table grapes Wine Winter cereals TOTAL

 Vinegar Scheme  Over the past 4 years, the scheme  180 ha of vine grapes planted  Additional 300 ha to be planted over next 2 years  Maize & Sunflower Scheme  Over the past 2 years, the scheme  Assisted 120 Farmers  Planted over 9000 ha in North West Province  Livestock Scheme  Over the past 4 years, the scheme  Assisted farmers so far to sell over 6640 animals in Eastern Cape generating over R42 million in income  Trained over 2200 livestock farmers in marketing of livestock  Scheme further procured over 48 tons of animal feed from small businesses in the Eastern Cape for a value of R16 million. Objectives of development schemes is to secure markets for small holder farmers.

 R16 Million of roll over funds from the dairy industry statutory levies was Ring-fenced to support small diary farmers in the Free State Province  Support being provided includes; supply of diary animals, diary equipment, market access  Target is to reach 10 black owned diaries and ensure that they are in a position to compete

 Past 2 Years  Implemented the programme with ITC  Assisted stone and fruit farmers in Ceres and Grabouw to comply with food safety requirements & increase linkages with exporters as well local supermarkets  2012  Agreement signed with Western Cape Agriculture in order to increase the project in the province  Engagement with other provincial departments with a view of expansion Objective is to integrate small agro-businesses into regional supply chains, increase market access and income earnings

 Agricultural Colleges  Collaborate with FET colleges and Agricultural colleges in rendering these services to the small holder producers  Target: 200 farmers to capacitate during this financial year & 4 training programmes facilitated  Management Training for Women Entrepreneurs  Marketing & financial managerial training course for women entrepreneurs involved in agriculture  Max of 40 women entrepreneurs from all the province will participate  Making Market Matters Workshop  Intensive multi-day business development training workshop for African agribusinesses,  Max of 70 agribusinesses from the African continent will participate in this programme  Facilitates by Making Market Matter Inc from Cornell University.

Strategic Integrated Projects 11 NAMC was tasked with the responsibility of coordinating SIP 11 (agriculture) on behalf of the DAFF. DAFF initiated and managed Infrastructure Investment projects are clearly captured and managed through the SIP process Currently engaging with Private Sector identify and priority investment projects that should be implemented in partnership with government Criteria used for selection & prioritization of projects includes: – Sector Growth & Job Creation – Food Security – Broad Based Black Economic Empowerment – Private Sector Investment

AgriBEE Threshold Study The NAMC is assisting DAFF to conduct the AgriBEE Threshold Study to review the appropriate threshold for the Exempted Micro Enterprises (EME) and Qualifying Small Enterprises (QSE) in the Sector. The report will assist the AgriBEE charter Council in deciding how the implement the AgriBEE Charter. Charter Council is due at the end of May 2013.

Section 7 Committee on contract farming The objectives: Investigate the scope and nature of typical supplier contracts and remedial actions used to address instances where contracts are dishonored; To determine whether a new approach is required to improve the relationship between contracting parties. What are the issues Some contracts do not state clearly how disputes are handled and in most cases big agri-business have prerogative to terminate the contract – unequal contracting power. Weak organisational and government support in negotiating contracts. Consultation process and project status Various stakeholders including farmers, retailers and processors were consulted. Currently two workshops have been arranged, one in the Western Cape (16 th April 2013) and the other in Limpopo province (23 rd April 2013)

Supply & Demand Estimates Committee To provide official Supply and Demand Estimate figures on the following grains: Yellow maize, White maize, Sorghum, Soybeans, Wheat. The information will assist the country by – Improving transparency and efficiency in the market The NAMC act as custodian for this committee and will release the figures on estimates which will include import, export consumption and production figures of the above grains. The committee consist of experts on the above field and need to be objective and have no conflict of interest. Expect the first official figures to be released in June 2013.

Agro Food Chain Agro food chain focus area analyses various chains in order to We are investigating the following value chains in the current reporting period: Wheat value chain, Food system study (value chain studies) with emphasize on the poultry meat (Broilers & culls), poultry feed, soybeans & yellow maize. Animal feeds AFC plays an prominent role in global Agri-benchmark initiative. – Member of the international grains, livestock and fruit agri-benchmark networks – Roll-out local networks on grains and livestock (small and large livestock)

Knowledge management The NAMC is responsible for the following publication: – Food Cost Review (Annual), – Food Price Monitors (4 x Quarterly), – Input Cost Monitors (4 x Quarterly), – TradeProbe (6 per annum), – Fruit Trade Flow Reports (4 per annum). The reports helps industry, government and general public: – Understand the impact o food inflation on different population groups in both urban and rural areas – Understand the effect of fertilizers and other costs drivers on various chain – Highlight export market opportunities for South African products – Understand the flow of South African fruit and therefore identify opportunities for increased market penetration

 MTEF Budget 2013/ /16 39 The NAMC has received MTEF budget allocation letter for the period 2013/ /16 from DAFF. The budget allocations are as follows: 2013/14:R /15:R /16:R This resulted in the following percentage fluctuation for the period: From 2012/13 – 2013/14:5.3% increase From 2013/14 – 2014/15:6.5% increase From 2014/15 – 2015/16:5.3% increase. Additional funding of R724, R972, and R1,267, for the MTEF period 2013/ /16, has been received for improvement in the conditions of service, this amount was allocated to the personnel budget.

40 INCOME2012/132013/142014/152015/16 R’000 Grant & transfers (MTEF) Interest Earned TOTAL INCOME BUDGET: SUMMARY OF INCOME

Budget Allocation per Programme for MTEF period 2013/14 – 2015/16 and Previous year 2012/ /132013/142014/152015/16 R’000 Division: Finance & Administration Human Resources Statutory Measures Agribusiness Development Agricultural Trusts National Red Meat Development Project MERC Office of the CEO Council & Audit & Risk Committee Total

2012/13 BUDGET vs 2013/14 PER STANDARD ITEMS Expenditure categories MTEF Budget 2012/13 R’000 MTEF budget 2013/14 R’000 Increase/(Decrease) R’000 % ChangeCOMMENTS Personnel % Administration % Professional services % Assets % Total %