PERISHABLE PRODUCTS EXPORT EXPORT CONTROL BOARD CONTROL BOARD(PPECB) Presentation to the Portfolio Committee for Agriculture, Forestry & Fisheries 09 October 2012

Annual Report on PPECB 2012

5 Divisions 1.Support Services 2.Statutory Operations 1.Human Resources 2.Finance 1.Value Added Services

1. VESSELSTOTALREASONS FOR REJECTIONS No of vessels surveyed 108 Glass (some inbound vessels carried motor vehicles), dirt, taint, faulty recording equipment, damaged cartons and pallets. No of preventions11 Percentage10,10% 2. COLD STORESTOTALREASONS FOR REJECTION No of cold stores inspected 452 Faulty temperature recording equipment, maintenance issues, damage panels, product at incorrect temp., damaged lights, water leakages, no pest control traps, gas forklifts without purifiers. no of preventions24 Percentage5,30% 3. CONTAINER DEPOTSTOTAL REASONS FOR REJECTION No of containers inspected Taint, oxidation, damaged panels, wet containers no of rejections Percentage10,30% Ms Mnqeta

5. RRMT’sTOTALREASONS FOR REJECTION No of RRMT’s inspected391 Faulty recording equipment, faulty probes, damaged panels no of preventions46 Percentage11,70% 4. TERMINALS TOTAL REASONS FOR REJECTION No of containers monitored Incorrect settings, faulty alarms, no power supply (or not connected to power supply), containers found in general purpose stack and not reefer stacks no of preventions993 Percentage1,00% No of terminals8 Savings: R 150 million +

Mr Makhaye

PPECB Board PPECB EXCO

Employment Equity (2012)

Demographic Profile % EE 2012 Actual EE 2011 Actual

Skills Development Agriculturalist Export TechnologistAgriculturalist Export Technologist Programme Programme o In partnership with DAFF o 2011= 35 o 2012= 14 Unemployed Graduate DevelopmentUnemployed Graduate Development Programme Programme o 2011= 33 o 2012= 45 Small Scale Farmers DevelopmentSmall Scale Farmers DevelopmentProgramme o SAPIP 2 o Kat River Valley Citrus Farmers * 21 Black Small Scale Citrus Farmers in the Eastern Cape * Partnership with the government and CGA

TargetF2012F2011 BBBEE Element AgriBEE CodesR'000 Total Procurement Spend R R BBBEE procurement spend from all suppliers50%71%77% R R BBBEE procurement spend from qualifying small enterprises (QSEs) or exempted micro- enterprises (EMEs)15%64%57% R R BBBEE procurement spend from black-owned suppliers15%26%22% R 9 226R Preferential Procurement

Ensured that development initiatives took place in at least 3 provinces o Training and development took place in all 9 provinces o Types of initiatives run were:  Private Certification Standards, Market Access, Cold Chain, Product Quality, Grading, Food Safety, Good Agricultural Practices, Responsible use of Pesticides, Quality Control in the pack house Trained 600 individuals across the various initiatives o For the period under review 1401 individuals were trained across all development initiatives across all 9 nine provinces Enterprise Development Development Mr Martin

Established a National Smallholder Farmer Working Group o Training and development took place in all 9 provinces o A National Smallholder Farmer Working Group was established through the SAPIP 2 initiative. A total of 3 meetings were held with representation from all 9 provinces Enhanced the Technological Knowledge of Smallholder Farmers o Collaboration with Provincial Departments o 24 Technology Transfer days held across all 9 provinces o A total of 1569 participants Enterprise Development

Financial Results Mr Schwiebus

Enterprise Risks 1. D elivering cost-effective services to the industry relative to derived benefits. Risk - The PPECB operates within a statutory mandate that is defined by government. The current statutory inspection methodologies are human- intensive and do not necessarily entail risk. 2. Giving internal and external stakeholders access to accurate information. Risk - Inaccurate information delivery may lead to industries (customers) making poor (marketing) decisions that may result in financial losses. 3. Executing strategic and operational plans and achieving organisational objectives with support from government and industry. Risk - The PPECB is a national public entity with government imperatives, yet its funds and customers are from the private sector. Therefore, the PPECB’s customer base may have misaligned expectations.

Enterprise Risks (continued) 4. Objective - Ensuring that external stakeholders understand and support the role and value of the PPECB in the export industry. Risk - Miscommunication of the PPECB’s role to its stakeholders and their consequent misunderstanding of it may lead to reputational damage of the organisation. 5. Making available sufficient human resource capacity and skills to effectively execute the PPECB’s mandate. Risk - Losing valuable institutional knowledge and skills due to inadequate upskilling of a dynamic workforce, and being dependent on a large percentage of seasonal workers due to unavoidable, seasonal peaks.

Financial Highlights Income R186 million, up by 4,8% on budget ExpenditureR202 million, up by 10% on budget Debtors’ collection36 days against a target of 59 days Bad debt as % of income0,3% Preferential Procurement71% in value from BEE scored entities Fruitless & wasteful expenditureR80k Irregular expenditureR80k Unauthorized expenditureR 0 External Audit ReportUnqualified

Financial Performance This Year R’000 Budget R’000 Prior Year R’000 IncomeR R R Interest receivedR6 835R6 273R5 771 ExpensesR R R Net result(R16 315)(R6 014)R12 316

Financial Performance Performance% change

Net Result Variance Analysis Budget Net Result 2012 (R 6,014) Income Volume varianceR 8,447 Expenditure Variance Personnel(R12,070) Operating expenses(R3,019) Administration expenses(R1,953) Office rental(R 2,255) OtherR 550 Actual Shortfall(R16,315)

Total Expenditure % This year R’000 Budget R’000 Prior year R’000 Ind Bud Ind PYr Personnel expenses68%R R R %122% Activity cost15%R30 623R27 603R %134% Computer expenses3%R5 227R4 373R %96% Rental & maintenance4%R8 424R6 169R %198% Training2%R4 613R4 295R %141% Corporate identity1%R2 092R3 180R %109% Depreciation1%R1 685R2 332R %77% Administrative expenses6%R12 014R10 061R %145% Finance cost0%R24R12R27200%89% Total expenditure100%R R R %125%

Income & Expenditure IncomeExpenses

Financial Position This year R’000 Prior year R’000 ReservesR93 489R Non-current assetsR15 966R ReceivablesR20 811R Investments held and cashR R LiabilitiesR45 221R46 192

Financial Position

Thank You