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

2. Annual Report on PPECB 2012

3. 5 Divisions 1.Support Services 2.Statutory Operations 1.Human Resources 2.Finance 1.Value Added Services

4. 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 109 895 Taint, oxidation, damaged panels, wet containers no of rejections11 347 Percentage10,30% Ms Mnqeta

5. 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 monitored107 402 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 +

6. Mr Makhaye

7. PPECB Board PPECB EXCO

9. Employment Equity (2012)

10. Demographic Profile % EE 2012 Actual EE 2011 Actual

12. 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

14. TargetF2012F2011 BBBEE Element AgriBEE CodesR'000 Total Procurement Spend R 35 483R 38 049 BBBEE procurement spend from all suppliers50%71%77% R 25 193R 29 298 BBBEE procurement spend from qualifying small enterprises (QSEs) or exempted micro- enterprises (EMEs)15%64%57% R 22 709R 21 688 BBBEE procurement spend from black-owned suppliers15%26%22% R 9 226R 8 371 Preferential Procurement

16. 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

17. 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

18. Financial Results Mr Schwiebus

19. 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.

20. 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.

21. 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

22. Financial Performance This Year R’000 Budget R’000 Prior Year R’000 IncomeR179 254R171 369R168 028 Interest receivedR6 835R6 273R5 771 ExpensesR202 405R183 657R161 483 Net result(R16 315)(R6 014)R12 316

23. Financial Performance Performance% change

24. 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)

25. Total Expenditure % This year R’000 Budget R’000 Prior year R’000 Ind Bud Ind PYr Personnel expenses68%R137 703R125 632R113 219110%122% Activity cost15%R30 623R27 603R22 909111%134% Computer expenses3%R5 227R4 373R5 436120%96% Rental & maintenance4%R8 424R6 169R4 248137%198% Training2%R4 613R4 295R3 273107%141% Corporate identity1%R2 092R3 180R1 91566%109% Depreciation1%R1 685R2 332R2 19272%77% Administrative expenses6%R12 014R10 061R8 290119%145% Finance cost0%R24R12R27200%89% Total expenditure100%R202 406R183 657R161 509110%125%

26. Income & Expenditure IncomeExpenses

27. Financial Position This year R’000 Prior year R’000 ReservesR93 489R109 805 Non-current assetsR15 966R16 200 ReceivablesR20 811R21 477 Investments held and cashR101 934R118 318 LiabilitiesR45 221R46 192

28. Financial Position

29. Thank You