1 PRESENTATION OF THE ANNUAL REPORT OF THE NATIONAL AGRICULTURAL MARKETING COUNCIL TO THE PORTFOLIO COMMITTEE 25 OCTOBER 2005 BY Ms D Ndaba – Vice-Chairperson Mr P Dall – Council member Mr NP Siala – Chief Financial Officer

2 LEGISLATIVE MANDATE The NAMC was established in terms of sections 3 and 4 of the Marketing of Agricultural Products Act, No. 47 of 1996 (hereinafter referred to as the Act) as amended by Act No. 59 of 1997 and Act No. 52 of The mandate of the NAMC is spelled out in section 9(1)(a) of the Act, which reads as follows: 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, if necessary, proposing alternatives to the establishment, continuation, amendment or repeal of a statutory measure or other regulatory measure and report to and advise the Minister accordingly.

3 Furthermore, section 9(1)(e) of the Act stipulates that the NAMC may undertake investigations and advise the Minister regarding: agricultural marketing policy and its application; the coordination of agricultural marketing policy in relation to national economic, social and development policies and international trends and developments; the possibilities for promoting the objectives of the Act, mentioned in section 2(2) of the Act; and the effect that marketing of products has on the objectives mentioned in section 2(2) of the Act.

4 In addition, in terms of section 9(1)(f) of the Act, the NAMC shall monitor the application of statutory measures and report thereon to the Minister and shall review such measures at least every two years.

5 RELEVANCE OF THE NAMC IN THE DEREGULATED MARKETING ENVIRONMENT: 1. Globalization is taking place at a faster pace and this demands provision of timeous, accurate and relevant information to participants. 2. The second economy needs more support, more especially in marketing information, which is the key to business operations. 3. Demand for government intervention in terms of statutory levies is increasing. This needs a dedicated institution to investigate application and monitor implementation. 4. In a sector such as agriculture you need an institution, which has the necessary capacity and experience to advise government on various policies and strategies. This is provided for in the Act in terms of categories in which members of the Council are appointed.

6 NAMC ACTIVITIES FOR 2005/06 IN SUPPORT OF THE OBJECTIVES OF THE DEPARTMENT OF AGRICULTURE Encouraging the growth and development of the first economy and increasing its possibility to create jobs The NAMC investigates, advises and monitors the implementation of statutory measures in the agricultural sector. These measures relate to the registration of role-players, rendering of records and returns and collection of levies. These actions support gathering and distribution of information, and provide resources for agricultural research and development. These are fundamental to agricultural sustainability for both commercial and emerging sectors of the two economies. In addition, the NAMC ensures that over and above research and information, 10% of the funds collected from role-players is used for specific emerging sector development projects.

7 Increase support to agricultural activities The NAMC conducts investigations together with role- players in order to address problems in agricultural marketing and also to identify opportunities. The information coming out of these investigations is useful for both commercial and emerging sectors for devising strategies to take advantage of opportunities and sort out bottlenecks.

8 Increase support to agricultural activities in emerging sector NAMC will provide marketing information to emerging farmers by holding 36 workshops nationally. The target is to reach 3600 farmers and distribute information booklets. In this way emerging farmers will be: - more market oriented in their farming activities; - connected with organized agriculture and will thus be more informed about agricultural marketing issues; - assisted to identify potential markets and how to access them.

9 MISSION STATEMENT To provide strategic advice to the Minister of Agriculture and directly affected groups (DAGs) on all agricultural marketing issues in the agriculture and food industries, taking into account the needs of stakeholders.

10 To be the most efficient and effective marketing advisor in the marketing of agricultural products in South Africa. VISION CORE BUSINESS CORE VALUES Provide accurate, relevant, independent and timely information. To be accountable, to act with integrity, to value individual performance, to value personal respect and equal treatment, to act in partnership with directly affected groups.

11 Organisational structure of the NAMC Economists (2) Communication Officer Audit Committee Finance Clerk Chairperson Chief Financial Officer Section Head Field Crops Economists (3) Cleaner PA Registry Clerk Personnel Officer (Vacant) Finance Officer Economists (2) Section Head Livestock Section Head Horticulture Bookkeeper (Vacant) Section Head Administration Messenger/Driver Secretary Council

12 The activities of the NAMC were drawn from: - The Marketing of Agricultural Products Act, No 47 of The Agricultural Sector Strategic Plan. - State of the Nation Address - Minister’s Budget Speech 2004/05 BUDGET UTILIZATION Council Meetings (including Executive Committee meetings) Committee Meetings of Council

13 UTILISATION OF 2004/05 NAMC BUDGET INCOMER Made up of:  Transfer from DoAR  Interest and otherR

14 ACTUAL EXPENDITURER Made up of:  Personnel expenditureR  AdministrationR  Professional servicesR  Provision for audit feesR ( )  SurplusR

15 OUTPUTS AND SERVICE DELIVERY TRENDS – COUNCIL Sub- programmes OutputsIndicatorPerformance Council Agenda itemsExpected number Actual number Council sittings 11 Presentations by delegates 13 Submissions to the Minister 26 Ministerial enquiries 31 Executive Committee meetings 33 Management Committee meetings 49

16 WORKSHOPS HELD WITH BLACK FARMERS PROVINCENUMBER OF WORKSHOPS FARMER ATTENDANCE AVERAGE ATTENDANCE Eastern Cape Free State Gauteng Kwazulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape TOTAL

17 FORMER CONTROL BOARDS AND DATES OF DISBANDMENT NAME OF CONTROL BOARDDATE SCHEME REPEALED Canning Fruit Board Cotton Board Dried Fruit Board Lucerne Seed Board Milk Board Mohair Board Oilseeds Board Sorghum Board Cirtus Board Deciduous Fruit Board Wheat Board Meat Board Wool Board 30 September January December August January December March September October July 2003

18 CONTROL BOARDS STILL IN EXISTENCE AS AT 31 MARCH 2004 Name of entityNumber of extensions granted Reasons for continued existence Maize Board6 months to Jun 98 6 months to Dec 98 7 months to Jul months to Jul months to Jul months to Jul months to Jul months to Jul 04 Outstanding issues include the transfer of trademarks to the Maize Trust and court cases relating to the collection of outstanding levies.

19 OUTPUTS AND SERVICE DELIVERY TRENDS - ADMINISTRATION Sub-programmes Outputs Service delivery indicators Actual performance PFMA requirements Internal auditing The PFMA requires for internal auditing to be done. Internal auditing was done during the 2004/05 financial year. Audit Committee Committee has to convene twice in a financial year. The Committee met four times during the year under review. Obtaining 2004/05 budget approval The NAMC’s business plan and budget had to be submitted for approval by February Business plan and budget were submitted as required by the PFMA. Human resources Review of service conditions The NAMC set itself the target of finalising and adopting the reviewed service conditions. Final draft of the reviewed service conditions was available but not adopted at year end Staff evaluations The target was to evaluate staff three times during the financial year. Staff were evaluated once in the year under review.

20 OUTPUTS AND SERVICE DELIVERY TRENDS - HORTICULTURE Sub-programmesOutputsService delivery indicators Actual performance Application for the implementation of new four-year period of statutory measures in the Citrus Industry. Investigation regarding the application for implementation of new four-year period of statutory measures in the Citrus Industry was completed and report compiled. Delivery of report to the Minister. Submission sent to the Minister. Application for the implementation of new four-year period of statutory measures for the Deciduous Fruit (table grapes). Investigation regarding the application for implementation of new four-year period of statutory measures for Deciduous Fruit (table grapes) was completed and report compiled. Delivery of report to the Minister. Submission sent to the Minister.

21 Application for the implementation of new four-year period of statutory measures for Dried Fruit. Investigation regarding the application for implementation of new four-year period of statutory measures for Dried Fruit was completed and report compiled. Delivery of report to the Minister. Submission sent to the Minister. Deciduous Fruit Industry Trust (DFIT) A submission on the proposed amendment of the DFIT deed and the appointment of Ministerial Trustees to the proposed newly constituted Trust was compiled. It was proposed amongst other things that the trust be given a more developmental focus and the name be changed to the Deciduous Fruit Industry Development Trust (DFIDT). Reports (submissions) on the appointment of Ministerial Trustees were delivered to the Minister. Submission on appointment of trustees forwarded to the Minister.

22 OUTPUTS AND SERVICE DELIVERY TRENDS - FIELD CROPS SAGIS InspectorsA submission on the appointment of inspectors was compiled. Delivery of submission to the Minister. The Minister approved submission on 15 July National Lucerne Organisation Inspectors A submission on the appointment of inspectors was compiled. Delivery of submission to the Minister. The Minister approved submission on 23 February Deregulation: Extension of the Maize Marketing Scheme A submission on the extension of the validity of the Scheme and Notices were compiled. Delivery of submission to the Minister. The Minister approved the submission on 8 July 2004 and it was published in the Government Gazette.

23 Monitoring of statutory levies: Cotton SA Budget for 2004/05 A submission on the budget for levies income and expenditure was compiled. Delivery of submission to the Minister. The Minister approved the submission on 29 September Directly affected groups: Notices to invite any group of persons to register as a Directly Affected Group A submission and Notices were compiled. Delivery of submission and Notices to the Minister. Minister signed and Notices was published in government Gazette. Trust Issues: Appointment of ministerial trustees on the Maize Trust A submission was compiled and persons nominated by the NAMC. Delivery of submission to the Minister. Forward to the Minister.

24 Food Price Monitoring -Six monitoring points in each Province -Monitors work in collaboration with Provincial Departments of Agriculture -Collect food price data and forward to NAMC for processing and analysis

25 OUTPUTS AND SERVICE DELIVERY TRENDS - LIVESTOCK Sub-programmesOutputsService delivery indicators Actual performance Application for new statutory measures in the red meat industry A Working Group was appointing to investigate the proposed statutory measures (levies, registration of secondary role-players and the submission of records and returns) in the red meat industry. Completion of the NAMC investigation into the application for statutory measures within 60 days (or longer period as may be approved by the Minister) after the Minister referred it to the NAMC. The investigation was completed within the period that was approved by the Minister. Application for new statutory measures in the wool industry A Working Group was appointed to investigate the proposed statutory measures (registration and records & returns) in the wool industry. Completion of the NAMC investigation into the application for statutory measures within 60 days after the Minister referred it to the Council. The investigation was completed within the period that was approved by the Minister.

26 Meat Industry TrustReport (submission) was compiled advising the Minister on the expiry of the term of Ministerial trustees. Submission of a request for the appointment of Ministerial trustees to the Minister. On 15 December 2004 the Minister appointed three new Ministerial representatives on the Red Meat Industry Trust. Mohair TrustReport (submission) was compiled advising the Minister on the expiry of the term of Ministerial trustee. Submission of a request for the appointment of a Ministerial trustee to the Minister. On 23 September 2004 the Minister appointed a new Ministerial representative on the Mohair Trust. Wool TrustReport (submission) was compiled advising the Minister on the expiry of the term of Ministerial trustee. Submission of a request for the appointment of a Ministerial trustee to the Minister. On 5 August 2004 the Minister appointed a new Ministerial representative on the Wool Trust.