1. portfolio committee on agriculture and land affairs: 5 april 2005 strategy and budget 2005/6 PPECB creating confidence in southern african fresh produce

2. agenda “ppecb in transformation” introduction 2005/6 strategy objectives/outcomes strategic directions and business plan alignment with DOA programmes black economic empowerment budget questions

3. ppecb 2005-2006 “transforming for sustainability” creating confidence, closing the gap with stakeholder expectations, implementing risk based assessment, through an integrated food safety and quality management system, whilst transferring skills.

4. transforming means … organisation renewal and people diversity legislative renewal systemic risk assessment systems and process redesign sustainability means … growth in international market access creating employment, equity and wealth international competitiveness long-term profitability confidence means … sustained access to difficult markets by guaranteeing people competency process efficiency and product safety and quality capacity to deliver on requirements sa perishable products export industry

5. ppecb’s role - legislative mandate act 9 of 1983 – ppecb act (outdated) provides for control and management of south african perishable products export processes act 119 of 1990 – designated assignee i.t.o. agricultural products standards act ensures export food safety and quality standards of agricultural products are complied with. act 1 of 1999 – pfma act regulates financial management and good governance in government and public entities

6. ppecb strategy : 2004-2006 (present board) …ppecb transforming, repositioning as sa food safety agency… “building with confidence” purpose statement ppecb instills confidence in food by impartially performing food safety & quality assurance services

7. ppecb outcomes:2004-2006 confidence in impartial services minimised risk in supply chain custodian of industry information customised services on demand differentiated pricing of services integrated sa food safety policy and legislation (“new food control authority”) sa food safety agency (“transformed ppecb”) international expansion (africa/trading countries)

8. contextual environmental issues overproduction integration & delivery agricultural “best practices” challenges fragmented national food policy increasing international legislation harmonisation/integration of standards call for integrated legislation in sa high cost of compliance to various standards national drought conditions transformation exchange rate pressure higher consumer demands reduced costs revision of legislation product quality increased demand for information integration of systems food safety efficiencies skills demand response times global competitiveness industry driversenvironment condition environment political economic legislation

9. operating model and value streams stakeholder requirement statutory standards industry standards customised standards value stream deliverable inspection/audit services supply (cold) chain services product category “partnerships” financial services information/logistics services communication services specialised services (solutions) training/development services certification services

10. value streams - programmes inspections audits cold chain logistics product categories specialised solutions analytical development sa pip food safety certification conferencing finance & management accounting information services secretariat human resources product quality inspection & food safety audit services customised services finance & information support services programmesvalue streams

11. our strategic direction & positioning reducing risks in the supply chain developing an internationally recognised integrated food safety and quality management system according to stakeholder requirements implementing it through a risk analysis methodology representative staff compliment of qualified technologists improving speed and service delivery, reducing costs create confidence and ensure sustainability in the south african fresh produce markets by:

12. ppecb strategic programmes black economic empowerment risk management system food safety stakeholder management industry information ISO 17020

13. alignment with DoA programme no 7: regulatory services compliance with legislation: ppecb/aps/pfma acts/ eu1148 food safety strategy: assignee for ofs/ development ifsqms communication and national coordination: national forums harmonising legislation, codes and guidelines: oecd/ un-ece progressive service standards that enhance credibility: iso17020/ export protocols resources for maximum effectiveness: restructured operations technology to accelerate information flow: standardisation of codes/ edi/ electronic export certification standard-setting: specialised industry programmes partnerships with industry: sa-pip/ sa agri academy/ sa fip/ fsa training and skills development: experiential training programme/ career pathway/ bursary programme

14. broad based black economic empowerment dimensions: management employment equity skills development enterprise development procurement capacity building strategies: analysis of potential redesign organisation to create opportunities programme managers succession planning leadership development people development forum employment equity stats organisation renewal recruitment focus legislative compliance internal training experiential learning programme bursary programme developing portfolio programmes: pip all programmes to reflect bee as priority procurement manager filtering suppliers reporting at executive level develop suppliers skills development

15. broad based black economic empowerment dimensions: management employment equity skills development enterprise development procurement capacity building status: 50 employees assessed (R100 000) tender process for training 2004-2005 african -1% asian +1% coloured +3% white -48% YTD african +4%95% black asian 0% technologist coloured +4% appointed white -7% internal bursary 10: R52 000 external bursary 2004: 20: R480 000 2005: 15: R432 000 SDA-2004: 85% grants received SA PIP programme programme managers: developing sector portfolio preferential procurement policy HDI 42,11% MOU: SAAA & SAMTRA

16. ppecb company profile 95% of new recruits to operational positions comply with employment equity plan

17. PPECB creating confidence in southern african fresh produce ppecb budget 2005-06

18. objectives development of a risk management system building and retaining skills & capacity building relationships with stakeholders

19. budget overview net resultbreak-even total expenditureR104m % increase in expenditure11,9% % increase in expenses excl. employment and programme expenditure -2,9% % annual adjustment to total payroll6% programme expenditureR8,2m average increase in levies for 6 months11%

20. activity overview employees353 operational245 offices42 pallets2,2 million service points1 452 accounts3 273 hours418 966 kilometres3,9 million relief duty21 000 man days

21. budget 2006 ’06 bud ’05 est ∆% incomeR104mR93m12% expenseR104mR92m13% shortfallR0R0,9m-

22. income variance R’000 volume increaseR3 016 levy increaseR4 120 food safetyR1 440 other statutory servicesR1 150 SA PIPR246 customised servicesR1 708 sundry incomeR290 income ∆ R11 970

23. budget structure R’000budLY∆% expense86 81482 7355% program8 2202 557 R’000budLY∆% expense1 2411 03320% R’000budLY∆% expense7 7666 68116% ppecb statutory customised PIP R’000budLY∆% expense104 04193 00612%

24. expenditure budget R’000 % of total ∆% LY human capitalR74 59672%14% activityR9 5909%11% operationalR5 3315%14% technologyR4 8745%13% administrativeR5 8206%-4% outsourcedR6931%-54% trainingR1 8452%8% depreciationR1 2921%27% total expensesR104 04110012%

25. strategic programmes F2006 budget R’000 F2005 estimate R’000 risk management systemR1 084R0 official food safetyR1 432R587 programme management & stakeholder relations R4 140R1 970 information & statisticsR875R0 business processes: iso 17020R689 total investmentR8 220R2 557

26. benchmark: hourly rate note: excl travel & incidentals 1 pound = R12,0106 1 euro = R8,12374 1 $ aus = R4,79836

27. customised services R’000budgetLY ∆% certificationsR3 204R2 38135% analytical services R2 758R2 770- specialised services R1 261R1 08616% overberg conference centre R543R44422% total expenditure R7 766R6 68116% total incomeR8 655R6 93625% contributionR888R256

28. agency: SA PIP budget R’000 expenseR1 241 ppecb admin feeR1 362 varianceR121

29. budget achievements build to support global confidence in SA produce focus systematically manage risk build capacity build relations improve efficiencies BEE: procurement & employment

30. ppecb 2005-2006 “transforming for sustainability” creating confidence, closing the gap with stakeholder expectations, implementing risk based assessment, through an integrated food safety and quality management system, whilst transferring skills

31. CERTIFIED TO ISO 9001