National Agricultural Marketing Council NAMC Annual Report Presentation to the Portfolio Committee on Agriculture and Land Affairs by TR Ramabulana

National Agricultural Marketing Council Strategic orientation Take cognisance of the mandate of the NAMC as instituted in terms of the MAPA (1996) Most important in this respect are the following sections of the MAPA, (see App for detail): –Section 2(2); –Section 7; –Section 9(1) (to comply with Section 9(2)); –Sections 16 and 17.

National Agricultural Marketing Council Objectives of the MAP Act The increasing of market access for all market participants Promotion of efficiency of marketing of agricultural products Optimization of export earnings from agricultural products The enhancement of the viability of the agricultural sector

National Agricultural Marketing Council Functions of the Council Investigate the establishment, continuation, amendment or revocation of statutory measures and other regulatory measures Prepare and submit to Minister for consideration, statutory measures and changes to statutory measures which the Minister directs it to prepare When requested by Minister and at least annually, report on the activities Undertake investigations and advice the Minister regarding: –Agricultural marketing policy and the application thereof; –The coordination of agricultural marketing policy in relation to national economic, social and development policies, and international trends and development –The possibilities of promoting the objectives mention above –The effect that marketing of products has on the objectives mentioned in above Monitor the application of statutory Measures and report thereon to the Minister at least every two years.

National Agricultural Marketing Council Legislative Mandate Established in terms of section 3 and 4 of the MAPA, No.47 of 1996 “The NAMC shall, when requested by the Minister or of its own accord, investigate the establishment, continuation, amendment or revocation of statutory measures and other regulatory measures affecting the marketing of agricultural products, evaluating the desirability, necessity or efficiency of the measures and, it necessary, proposing alternatives to the establishment, continuation, amendment, or repeal of a statutory measure or other regulatory measures and reports to and advise the Minister accordingly”

National Agricultural Marketing Council Governance Structures Audit Committee Human Resources committee Risk committee Executive Committee Research committee Bargaining committee Management committee

National Agricultural Marketing Council Previous Council Members Dr. ASM Karaan (Chairperson) Mrs. D Ndaba (Vice-Chairperson) Mr. GP Dall Prof. JFK Kirsten Mrs. SE Moolman Mr. F Lawrence Mrs. L Keyter Mr. Z Duze Mrs. C Maku Mr. A Jefta

National Agricultural Marketing Council New Council Members Mrs. Ntombi Msimang (Chairperson) Dr. ASM Karaan (Vice-Chairperson) Prof. HD Van Schalkwyk Mr. AD Young Prof. JFK Kirsten Mrs. SE Moolman Mrs. C Molo Mr. DB Montshwe Mrs. M Mannya Mrs. M Gill

National Agricultural Marketing Council Corporate Governance Committee Audit committee –Mr. Victor Nondabula (Chairperson) –Mr. GP Dall –Ms. M Moja –Mr. F Lawrence –Mr. R Matlou Human Resources Committee –Mr. GP Dall (Chairperson) –Ms. D Ndaba –Ms. SE Moolman –Ms. C Maku –Ms. L Keyter –Mr. Z Duze –Mr. TR Ramabulana Risk Management Committee –Ms. J Sethu (Chairperson) –Mr. C Gladwin –Mr. TPN Siala

National Agricultural Marketing Council Outputs and Service Delivery Trends Sub-programme Outputs OutputsIndicatorsPerformance Council Meetings Agenda itemsExpected number Actual numbers Council sittings117 Submissions to the Minister2631 Ministerial enquiries314 Executive Committee meetings22 Management Committee meetings4644

National Agricultural Marketing Council Staff Representation as of 31 st March 2007 Job CategorySecretariat Historical background AdvantagedDisadvantagedTotal CEO and senior Manager448 Economists3710 Finance-22 Secretaries2-2 Administrative Assistance123 Support-22 Total101727

National Agricultural Marketing Council Section 7 Investigation Solutions for sustainable exports in the citrus industry Fresh produce section 7 Wildlife section 7 Sorghum section 7 Wine industry section 7

National Agricultural Marketing Council Food Price Monitoring One of the recommendations from the 2003 food price monitoring committee was that SA should have a food price monitoring desk for both urban and rural food prices. One annual Food Cost review –Section on rural food price monitoring Four quarterly food price trends

National Agricultural Marketing Council Research Programmes Sub-sector studies –Beef, Chicken meat, citrus, Viticulture, wool, Deciduous fruit, Potatoes, Goats, Rooibos, Honey bush) Opportunities in the Russian fruit market Impact of RSA class 1 exports to African, Indian Ocean Island countries SA Agricultural protection: How much policy space is there? Examining the India, Brazil and SA (IBSA) triangular trading relations Support for potato market development in North and West Africa Strategies to promote competitiveness and equity in SA agribusiness: the case of BEE in the SA wine industry BFAP: Annual baseline Impact of deregulation on agricultural efficiency and productivity in South Africa reports/ 2006 or 2007www.namc.co.za/publications/published reports/

National Agricultural Marketing Council Academic Support Programmes An enquiry into the potential for change management by selected wine producers cooperatives in the Robertson wine district. MSc programme Institutional analysis of SA’s new cooperative Act. MSc programme Factors influencing the sustainability of smallholder co-operatives in Kzn. MSc programme An economic analysis of Thohoyandou Town and Tshakhuma informal fruit and vegetable markets. MSc programme

National Agricultural Marketing Council Market Development Programmes Strategic Objective: –Increased market access by black farmers Grain and oilseed: –Approved by Council and submitted to Minister –Funding allocated by Maize Trust –Implementation through Trusts Citrus: –Approved by Council and submitted to Minister –Currently negotiating with donors Red Meat: –Approved by Council and submitted to Minister –Possible funding through the new red meat levy

National Agricultural Marketing Council Advice on marketing and trade Strategic goal was to address issues that negatively affect the export of agricultural products Facilitated two workshops on: –Comparative country experiences with agricultural trade –Application for exemption in terms of the competition Act

National Agricultural Marketing Council Export Promotions Netherlands –Five agribusinesses visited Netherlands. –Partnership with SA Agri Academy and Centre for the Promotion of imports from Developing Countries –Purpose was to expose agribusinesses to different markets in Netherlands United States –Black woman owned wine label, Sibeko wines launched in the US –In partnership with Delta Airlines –The following labels are now part of Delta’s menu Cape Concert African Whisper Pssst! Sibeko

National Agricultural Marketing Council Skills Development and Training Making Markets Matter Export readiness course with CDI and Agri Academy –Fair trade –Marketing and technical requirements –Finance, costing and farm management

National Agricultural Marketing Council Statutory Measures applicable during 2006/07 financial year IndustryAdministrative BodyStatutory Measure LevyRegistrationRecords & Returns Citrus (Exports only)Citrus Growers Association√√√ CottonCotton SA√√√ DairyMilk SA√√√ Deciduous FruitDFPT√√√ Dried fruitDFPT√√√ Grains (maize, oilseed and winter cereal) SAGIS√√√ LucerneLucerne Trust√√√ MilkMPO√√√ PotatoPotato SA√√√ Red MeatRed Meat industry Forum√√√ SorghumSorghum Trust√√√ WineSouth African Wine Industry Council √√√ Winter CerealsWinter Cereal trusts√√√ WoolCape wools SA√√

National Agricultural Marketing Council STATUTORY LEVIES APPROVED INDUSTRYADMINISTRATING BODYLEVY INTRODUCEDLEVY LAPSESDURATION CitrusCitrus Growers Association of SA25 Aug Aug years CottonCotton SA1 Apr Mar years DairyMilk SA23 Dec Dec years Deciduous Fruit : -Pome fruit - Stone fruit - Table grapes Deciduous Fruit Producers Trust4 Nov Nov Nov Sept years Dried FruitDeciduous Fruit Producers Trust18 Apr Mar years PotatoPotato SA10 Sept Jun years Red MeatRed Meat Industry Forum5 Nov Nov years Sorghum*Sorghum Trust14 Feb Feb years Wine and GrapesWinetech WOSA SA Wine Information & Systems (SAWIS) 1 Nov Oct years Winter Cereals*Winter Cereal Trust1 Oct Sept years

National Agricultural Marketing Council TOTAL AMOUNT OF STATUTORY LEVIES COLLECTED Total value of production R’million Levies collected R’millionLevy collection success rate Citrus % Cotton % Dairy % Deciduous Fruit: -Pome fruit - Stone fruit - Table grapes % 98 % 95 % Dried fruit % Potato % Red Meat (4 months) % Sorghum % Wine : -Winetech (grapes) -WOSA -SAWIS ) ) ) ) 37.4 ) ) 99 % ) Winter Cereal : -Wheat -Barley -Oats -Durum ) ) 96 % ) TOTAL

National Agricultural Marketing Council Overview of status of statutory measures 10 industries collected just over R149 million Spending –42% spend on research –17% spend on emerging farmers development projects –15% on information –10 on export promotion Collection rate: –The lowest rate was in sorghum at 67%

National Agricultural Marketing Council Function Financed through levies FunctionAmount Spent R% of Total Administration Transformation Export Promotion Research Information Plant improvement Local promotion Market Access Quality Control Total

National Agricultural Marketing Council Total levy expenditure for the period under review compared to the previous two surveys

National Agricultural Marketing Council Commodity Related Activities Dairy –Milk SA restructured following recommendations of the task team appointed by industry to ensure proper representation at the board Cotton –Industry still in distress –The recent increases in price pf cotton will bring relief to farmers, but the sustainability of cotton SA and cotton trusts still in question

National Agricultural Marketing Council CONTROL BOARDS STILL IN EXISTENCE AS AT 31 MARCH 2007 NAME OF ENTITY NUMBER OF EXTENSIONS GRANTED REASON FOR CONTINUED EXISTENCE Maize Board12Court cases relating to the collection of outstanding levies

National Agricultural Marketing Council SUMMARY OF THE FINANCIAL STATUS OF INDUSTRY TRUSTS TRUSTDATE ESTABLISHEDTOTAL INHERITED ASSETS (transferred from former Boards) R CURRENT VALUE OF ASSETS R Citrus TrustFebruary Cotton TrustSeptember Deciduous Fruit Industry TrustAugust ¹ Lucerne Seed Industry TrustAugust Maize TrustAugust Meat Industry Trust Red Meat Research & Development Trust May ² Mohair TrustSeptember Oil and Protein Seeds Development TrustOctober Sorghum TrustFebruary Winter Cereal TrustNovember Wool Trust International Wool Trust August 1997 September IWS (Wool Trade Mark) SA Wine Industry TrustDecember *Potato Trust Potato Industry Development Trust October 1993 September *Dry Bean TrustOctober

National Agricultural Marketing Council Budget Utilization INCOMER13,639,000 Made up of: Transfer from DoA R12,710,000 Other income (Interest earned and Sponsorships) R 929,000 EXPENDITURER18, 972,000 Made up of: Personnel expenditureR 8,243,000 Administration R 2,376,000 Professional servicesR 7,992,000 DepreciationR 305,000 Finance CostsR 56,000

National Agricultural Marketing Council Irregular Expenditure IncidentStep takenAmount Existing finance leaseDue to changes in accounting procedures 2006: R442, : R497,000 New finance leaseAmending the photocopier contract to a period of 36 months 2006: R66, : R56,000

National Agricultural Marketing Council Issues Funding –Ministerial approval for R30 million –Received R13,2 million New Marketing Act –Outline the proper positioning of the NAMC