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

2. 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.

3. 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

4. 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.

5. 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”

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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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 www.namc.co.za/publications/published reports/ 2006 or 2007www.namc.co.za/publications/published reports/

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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√√

21. National Agricultural Marketing Council STATUTORY LEVIES APPROVED INDUSTRYADMINISTRATING BODYLEVY INTRODUCEDLEVY LAPSESDURATION CitrusCitrus Growers Association of SA25 Aug 200425 Aug 20084 years CottonCotton SA1 Apr 200431 Mar 20084 years DairyMilk SA23 Dec 200523 Dec 20094 years Deciduous Fruit : -Pome fruit - Stone fruit - Table grapes Deciduous Fruit Producers Trust4 Nov 2003 12 Nov 2004 4 Nov 2007 30 Sept 2008 4 years Dried FruitDeciduous Fruit Producers Trust18 Apr 200531 Mar 20094 years PotatoPotato SA10 Sept 200430 Jun 20073 years Red MeatRed Meat Industry Forum5 Nov 20055 Nov 20072 years Sorghum*Sorghum Trust14 Feb 200328 Feb 20063 years Wine and GrapesWinetech WOSA SA Wine Information & Systems (SAWIS) 1 Nov 2005 31 Oct 2009 4 years Winter Cereals*Winter Cereal Trust1 Oct 200230 Sept 20064 years

22. National Agricultural Marketing Council TOTAL AMOUNT OF STATUTORY LEVIES COLLECTED Total value of production R’million Levies collected R’millionLevy collection success rate Citrus2 90019.878 % Cotton1243.7100 % Dairy4 01212.080 % Deciduous Fruit: -Pome fruit - Stone fruit - Table grapes 2 203 773 1 439 17.5 6.3 11.4 96 % 98 % 95 % Dried fruit1922.098 % Potato2 22113.399 % Red Meat (4 months)2 8671.076 % Sorghum1720.867 % Wine : -Winetech (grapes) -WOSA -SAWIS ) ) 2 626 ) ) 37.4 ) ) 99 % ) Winter Cereal : -Wheat -Barley -Oats -Durum 2 625 321 13 11 21.0 2.1 0.3 0.1 ) ) 96 % ) TOTAL22 499149.1

23. 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%

24. National Agricultural Marketing Council Function Financed through levies FunctionAmount Spent R% of Total Administration9 915 4447 Transformation24 024 25217 Export Promotion14 708 31910 Research60 089 08942 Information21 484 95815 Plant improvement2 484 9582 Local promotion1 083 0321 Market Access6 490 8745 Quality Control3 886 1793 Total143 929 703100

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

26. 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

27. 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

28. 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 19991 319 25515 370 234 Cotton TrustSeptember 19978 289 8807 455 520 Deciduous Fruit Industry TrustAugust 1998500 00010 958 742¹ Lucerne Seed Industry TrustAugust 19972 952 3981 870 044 Maize TrustAugust 2000264 128 772685 475 616 Meat Industry Trust Red Meat Research & Development Trust May 1998 44 363 570 15 000 000 28 950 936² 25 887 642 Mohair TrustSeptember 1997145 888 150177 126 107 Oil and Protein Seeds Development TrustOctober 199763 801 064146 200 000 Sorghum TrustFebruary 19996 554 1358 905 582 Winter Cereal TrustNovember 199711 239 71345 060 919 Wool Trust International Wool Trust August 1997 September 2003 64 276 853 IWS (Wool Trade Mark) 166 168 000 2 370 909 SA Wine Industry TrustDecember 1998112 955 750170 000 000 *Potato Trust Potato Industry Development Trust October 1993 September 2004 22 000 000 0 9 444 806 *Dry Bean TrustOctober 19936 145 000

29. 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

30. National Agricultural Marketing Council Irregular Expenditure IncidentStep takenAmount Existing finance leaseDue to changes in accounting procedures 2006: R442,000 2007: R497,000 New finance leaseAmending the photocopier contract to a period of 36 months 2006: R66,000 2007: R56,000

31. 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