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

9. Key priorities for DAFF

10. National Development Plan (NDP)

11. Other realities

12. Our Targets

13. 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

15.  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

17. 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

18.  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

19. 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

20. 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 

21. 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. 22 Levies collected per commodity - 2012 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)5 000 000 00043 724 9110.8799 Cotton lint92 000 0001 683 4111.83114 Dairy products8 378 627 22229 292 8930.3596 Deciduous fruit1 476 879 89149 709 5743.3796 Dried fruit478 842 0001 891 3420.3997 Mangoes65 589 0601 093 1511.6785 Pork3 063 400 00016 774 6580.55104 Potatoes5 746 720 81724 557 9280.43103 Poultry and eggs3 596 000 00026 797 8200.7599 Red meat18 946 000 00021 592 5220.11113 Sorghum215 000 0001 672 2870.7869 Table grapes2 945 298 98417 462 5040.6097 Wine3 619 400 00065 840 2381.8298 Winter cereal3 733 929 00039 587 9391.0687 TOTAL57 357 686 974341 681 1780.60

23. Export promotion (market development) – expenditure in 2012 CommodityAmount Citrus2 823 336 Deciduous fruit19 992 156 Table grapes1 957 254 Wine26 140 411 Total50 913 157 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

24. Research – expenditure in 2012 24 CommodityAmount Citrus19 305 822 Cotton50 000 Dairy1 484 728 Deciduous fruit17 707 986 Dried fruit1 967 465 Mangoes408 000 Pork488 515 Potatoes6 225 277 Poultry911 306 Red meat1 445 926 Sorghum963 643 Table grapes9 077 108 Wine4 924 403 Winter cereals26 851 129 TOTAL91 811 308

25. Information – expenditure in 2012 CommodityAmount Citrus2 371 685 Cotton3 137 680 Dairy1 964 690 Deciduous fruit2 979 830 Dried fruit471 581 Pork1 614 033 Potatoes5 633 035 Poultry2 839 750 Red meat927 439 Sorghum262 921 Table grapes2 119 820 Wine7 470 482 Winter cereals2 427 213 TOTAL34 220 159 25

27.  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.

28.  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

29.  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

30.  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.

32. 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

33. 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.

34. 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)

35. 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.

36. 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)

37. 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

39.  MTEF Budget 2013/14 -2015/16 39 The NAMC has received MTEF budget allocation letter for the period 2013/14 -2015/16 from DAFF. The budget allocations are as follows: 2013/14:R 33 819 000 2014/15:R 36 005 000 2015/16:R 37 912 000 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 R724,000.00 R972,000.00 and R1,267,000.00 for the MTEF period 2013/14- 2015/16, has been received for improvement in the conditions of service, this amount was allocated to the personnel budget.

40. 40 INCOME2012/132013/142014/152015/16 R’000 Grant & transfers (MTEF)31 40933 81936 00537 912 Interest Earned700850900954 TOTAL INCOME32 10934 66936 90538 866 BUDGET: SUMMARY OF INCOME

41. Budget Allocation per Programme for MTEF period 2013/14 – 2015/16 and Previous year 2012/13 2012/132013/142014/152015/16 R’000 Division: Finance & Administration 7 049 8 496 8 976 9 075 Human Resources 3 130 3 343 3 543 3 751 Statutory Measures 1 877 2 027 2 148 2 275 Agribusiness Development 2 921 3 114 3 301 3 490 Agricultural Trusts 1 624 1 447 1 534 1 625 National Red Meat Development Project 1 6957249721 267 MERC 9 231 9 941 10 538 11 153 Office of the CEO 3 298 3 366 3 550 3 757 Council & Audit & Risk Committee 1 284 1 361 1 443 1 519 Total32 10933 81936 00537 912

42. 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 Personnel19 436 20 721 1 2857% Administration6 8357 68084512% Professional services 5 5165 076-440-8% Assets 322 341196% Total32 10933 8191 7095%