1 NAMC STRATEGIC PLAN AND BUDGET PRESENTATION PORTFOLIO COMMITTEE ON AGRICULTURE; 09 March 2006 NAMC STRATEGIC PLAN AND BUDGET PRESENTATION PORTFOLIO COMMITTEE ON AGRICULTURE; 09 March 2006

2 STRUCTURE OF PRESENTATION  Questions from last Portfolio Committee briefing  Highlights for the 2005/06  The Strategic Plan for 2006/07  Budget 2006/07

3 QUESTIONS & ANSWERS  How much is expected from the Wool Trade Mark & when will the funds be transferred? –The financial statements will be published before end of March 2006; –Expect R15,4 million  Translate the NAMC booklet to other official languages –The Parliamentary Officer on Agriculture received copies of translated documents  We need copies of your research reports on competitiveness –The Parliamentary Officer Received copies of the Competitiveness report,, as well as copies of the Food Cost Review and the report on Statutory Measures  Employ someone with expertise on assisting black agribusiness in marketing –Restructured the administration and hired a Senior Person to Head the Enterprise Development Division  What is your capacity to undertake Economic Research –Created an Economic Research Division, with key staff, research strategy and funding.

4 GUIDING DOCUMENTS  Marketing of Agricultural Product Act  The Strategic Plan for South African Agriculture  Draft Transformation Charter for Agriculture  Accelerated and Shared Growth Initiative for South Africa

5 MANAGEMENT  Leadership: –Council headed M Karaan; 9 other Council Members; all part-time  Management: –Appointed CEO –CFO –MANCOM

6 HIGHLIGHTS HIGHLIGHTS

7 FOOD PRICE MONITORING  Collaboration with DoA, University of Pretoria & StatSA  Published Food Cost Review & Quarterly (4) Food Price Trends  Trained 80 Provincial Food Price Monitors (PDA Extension personnel)  Captured rural food price data from identified rural stores & Spazas  Working on an MOU between NAMC, StatSA, DoA and PDA  NB: See the latest copies of the Food Price Trend Press Release and Food Cost Review Report

8 STATUTORY MEASURES INVESTIGATIONS  Dairy- Recommended & Approved (Industry requested to submit a transformation plan)  Red Meat- Recommended & Approved (for only 2 yrs)  Sorghum- Recommended & Approved  Imported Cotton Lint-Recommended non-approval & immediate implementation of the Cotton Strategic Plan  Winter Cereal- On-going  Cotton- Registration, Records and Returns  Conditions on the use of levy funding: –20%- Transformation –10%- Administration –70%- Research, Development, Consumer Assurance, Communication  NB: See the 2005 Report on Statutory Measures.

9 USE OF STATUTORY LEVIES COLLECTED Total value of production R’ million Levies collected R’ million Levies available for PDIs R’ million Levy collection success rate Citrus % Cotton % Dairy % Deciduous Fruit  Pome Fruit  Stone Fruit  Table Grapes %98%95% Dried Fruit % Potato % Sorghum % Wine Winetech (Grapes) WOSASAWIS %100%100% Winter Cereal % Total 19,

10 SECTION 7 INVESTIGATIONS  Fresh Produce Markets  Competitiveness Study  Game Section 7 Investigation  Sorghum Section 7 Investigation  Citrus Exports Section 7 Investigation  Input Cost Monitoring Section 7 Investigation

11 MARKETING SCHEMES (On-going)  Red Meat (with MIT Structures) –Market based Incentives on livestock marketing (Auction, Feedlot, Direct to Abattoir, Local market) –AgriBEE ownership options –Infrastructure requirements –Stock improvement requirements –Training  Grains (Cooperatives) –Working through Co-operatives on Contract growing models (Input Finance, Machinery, Marketing, Skills Development ) –AgriBEE ownership options  Citrus –Marketing (Export incentives schemes, local markets through retailers) –Orchards Ownership Models –BEE options in logistics –AgriBEE ownership options in Fruit Exporting Companies

12 SRATEGIC PLAN FOR 2006/07 SRATEGIC PLAN FOR 2006/07

13 RESTRUCTURING  Changed administration from a Commodity base to Competency base  The Marketing Act Review Process will in future inform the structure and mandate of the Council  Four Key competencies are: –Marketing & Trade –Economic Research –Enterprise Development –Statutory Measures

14 MARKETING & TRADE MARKETING & TRADE

15 MARKETING  Marketing Schemes on Citrus, Grains & Red Meat (Incentives, viable empowerment models, etc)  Produce a series of Annual Industry Specific Growth Perspectives  Collaborate with Table Grape Industry to undertake Market Research on Russia & China  Collaborative market research with other sectors will be undertaken  Address marketing issues coming from the CEO’s Forum and the Presidential Working Group on Commercial Agriculture (competition, business costs, exports, food safely, etc

16 ECONOMIC RESEARCH ECONOMIC RESEARCH

17 ECONOMIC RESEARCH  Create a Research Fund - NAMC to contribute an amount to start the Fund –Other donor encouraged to contribute –Fund ring-fenced for Economic Research purpose only –Research committee to come-up with research themes –Call for proposals from Universities & other research associates

18 RESEARCH FOCUS AREAS  Competitiveness –FPM, Input Cost Monitoring, Trade Data  Price Analysis –Consumer Markets, Emerging Markets, Competitor Analysis  Markets –Sector Studies, Repositioning, Trade Strategy, Generic Marketing of SA Products  Supply Chains –Transaction Costs, Benchmarking, Logistics, Cross Border Supply Chains  Policy –Levy, Transformation, Marketing Schemes, AgriBEE  Research Interns

19 ECONOMIC RESEARCH  Undertake Section 7 Investigations on: –Input Cost Monitoring –Goats –Citrus  Food Price Monitoring –Food Cost Review –Quarterly Food Price Trends  Forge closer links with the AEASA (Present Fresh Produce Investigation Report at AEASA conference)  Partnerships with international research orgs eg. IFPRI

20 ENTERPRISE DEVELOPMENT

21 KEY ACTIVITIES  Develop & implement models for Agribusiness Support  Models: –Business Linkages as an empowerment model –Cooperatives/ agribusiness as key points of leverage –Work with structures currently receiving levies (eg, citrus, livestock, dairy and potato) to address AgriBEE targets eg, procurement, ownership, training, etc –Engage Fresh Produce Markets to develop strategy for increased black farmers/wholesaler/transporters/processors participation  NB: Target CASP and MAFISA as a key incentive

22 DATABASE  Supplier database with profiles of Commercial Black Agribusinesses  Develop supplier relations with major buyers of Ag. Products in RSA  Link agribusiness in supplier database to identified buyers  Use ATAF to support Agribusinesses technical requirements

23 AGRIBUSINESS TECHNICAL ASSISTANCE FUND  Create an Agribusiness Technical Assistance Fund to support Agribusinesses in database - NAMC to contribute an amount to start the Fund –Trusts and Forums encouraged to contribute –Fund ring-fenced for Black Agribusiness Technical Support only –A policy on the use of the fund will be developed –The fund will be used on a cost sharing basis with agribusiness contributing a certain amount –Agribusiness will be encouraged to apply for specific technical assistance, eg. Appointment of technical advisors on AgriBEE transactions, Business Plan, Certification such as EuroGap, etc

24 EXPORT EXPOSURE VISITS  Develop policies on export exposure visits  Identify agribusiness in Supplier Database ready for export  Identify Exports & Training opportunities  Partner with other organizations to facilitate visits

25 STATUTORY MEASURS STATUTORY MEASURS

26 KEY ACTIVITIES  Investigations  Monitoring and review  Reports to Department of Agriculture  Registration of Directly Affected Groups  Crop Estimate Liaison Committee oversight

27 PLANNED WORKSHOPS  Planning four workshops –Industry Specific Competitiveness meetings –Trade strategy workshop in collaboration with DoA & OECD –Marketing incentives for the emerging sector –Report of the Fresh Produce Investigation (at AEASA conference)  Planning Breakfast Meetings –Launch of Quarterly Food Price Trends –Presentation of Annual Food Cost Review

28 BUDGET Council and Administration Marketing & Trade Enterprise Development Statutory measures Economic Research TotalSalariesR4,100,113.00R830,000.00R830,000.00R830,000.00R1,287,700R7,877, AdministrationR3,097,520.00R575,600.00R365,000.00R231,000.00R608,000.00R4,877, Professional Services R1,140,000.00R160,000.00R855,000.00R120,000.00R3,860,000.00R6,135, StoresR140, R10,000.00R10,000.00R15,000.00R175, TotalR9,115,673.00R1,565,600.00R2,060,000.00R1,191,000.00R5,770,700.00R19,702,973.00

29 THANK YOU