1. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n PPECB P r o f e s s I o n a l C o n f I d e n c e A c c o u n t a b l e I n t e g r i t y P a s s I o n PERISHABLE PRODUCTS EXPORT CONTROL BOARD Strategy: 2008 - 2013 Parliamentary Portfolio Committee on Agriculture and Land 14TH MAY 2008 M. Hawes - Chairperson

2. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Presentation Outline  BackGround  Strategy Detail  Employment Equity, Transformation & Skills Development  FINANCE & BUDGETS

3. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n PPECB P r o f e s s I o n a l C o n f I d e n c e A c c o u n t a b l e I n t e g r i t y P a s s I o n BACKGROUND

4. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n PPECB’S ROLE I.T.O LEGISLATIVE MANDATE  PPECB is a Statutory Organisation, which conducts its business in terms of the perishable products export control act (no. 9 of 1983).  PPECB also operates as an assignee for the department of agriculture under the requirements of the agricultural product standards act (no. 119 of 1990).  PPECB is a listed schedule 3a public entity, and conducts its financial business in terms of the public finance management act, (no. 1 of 1999).

5. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n PPECB service categories -product and equipment certification -cold chain management -statistical information -advisory services and training PPECB is accredited for: - globalgap and brc certifications - haccp certifications - iso 17025 laboratory services - eu 1148/2001 – approved 3 rd country inspection authority PPECB is also certification body (cb) for tesco nature’s choice PPECB’S PRODUCTS & SERVICES CATALOGUE

6. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Current PPECB Environment  APS – product quality and food safety for regulated fruit and vegetable products  Phytosanitary inspections for non sensitive markets (EU)  Cold chain – perishable products  Cold chain - special market protocols (phytosanitary)  Value added services – services that enhance the competitiveness of industry  Capacity building – EU agency, AETP

7. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Plant & Plant Products Current Scenario Policy vs. Implementation ExportLocalImport Phyto Policy Implm. DOA DOA, PPECB DOA Product Policy Quality Implm. DOA PPECB DOA DOA, Prokon Food Policy Safety Implm. DOA, PPECB PPECB DOH? DOA? DOH? DOH DOH (Province) Cold Policy Chain Implm. PPECB

8. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n PPECB current operating environment Permanent Employees289 Offices42 Number of listed product groups315 Inspection points1350 Inland loading points380 Vessels at port395 Active client accounts1611 Supplier accounts1764 S & T man days17427 Computer work stations207 Billable hours378608 Kilometers traveled3,1 million

9. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n PPECB OFFICES Cape Town  George   Port Elizabeth  EastLonden  Durban  Maputo Lesotho  Upington  Kimberley  Bloemfontein  Johannesburg Zimbabwe Mozambique Namibia

10. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n PPECB P r o f e s s I o n a l C o n f I d e n c e A c c o u n t a b l e I n t e g r i t y P a s s I o n STRATEGY DETAIL

11. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Strategic Context  Outcome of a Series of Engagements with the DoA on the Role of PPECB “The DDG: Bio Security & Disaster Management and the CEO of PPECB should within 12 months finalize the policy environment for the future role of PPECB” – Minister of Agriculture and Land Affairs  Response to ever changing Client Needs  Recognition of Strategic Role PPECB Plays in the Industry

12. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Strategic Context cont……  Strategic Plan for SA Agriculture, AsgiSA & Apex Priorities;  + Global Competitiveness & Competitive Business Intelligence;  WTO (SPS, TBT);  + Growth in Industry Competitiveness;  Migration from Conventional to Containerized Shipping;  Policy Gap Food Safety and Product Quality.

13. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n International Good Practice ORGANISATIONAREA OF ACTIVITYNATURE OF ACTIVITY Kwaliteits Controle Bureau (KCB) Government Agency - Netherlands Import Export Statutory Mandate for fruit, vegetables and flowers Product Quality Inspection Phytosanitary Inspection Special Market Programmes CertificationCommercialCertification private schemes Plant Product Inspection Services (PPIS) Government Agency - Israel Local Export Special Market Programmes Statutory Mandate for fresh produce Product Inspection Phytosanitary Inspection Organic certification Private StandardsCommercialExport Protocols on product quality standards

14. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n International Good Practice ORGANISATIONAREA OF ACTIVITYNATURE OF ACTIVITY Assure Quality State Own Enterprise – New Zeeland Local, Import and Export – animal and fresh produce and forestry Commercial and tasked by government for specific mandatory actions Audit, Inspection, Verification and disease surveillance AQIS Australia – Government Agency Import and Export – animal & animal products Plant & plant products Statutory mandate Inspection, Phyto sanitary, Cold Chain

15. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Vision “A Partner in Global Competitiveness of South African Perishable Products”

16. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Mission “ To build Competitive Capacity in our People and Systems in Industries we Serve in order to instill World-Wide Confidence in South African Perishable Products”

17. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Values Professionalism Accountability Passion Integrity Confidence

18. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Strategic Objectives & KPIs  Strategic Objectives & KPIs

19. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Strategic Risk Assessment  Policy Development by DOA in collaboration with PPECB – strategy dependant on this  Legislation as an outcome of integrating food safety/product quality/cold chain of perishable products for export, import & local market  Based on current infrastructure – impact on Operations; HR and Financial Modeling

20. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n PPECB P r o f e s s I o n a l C o n f I d e n c e A c c o u n t a b l e I n t e g r i t y P a s s I o n PEOPLE & BUDGETS

21. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n PPECB P r o f e s s I o n a l C o n f I d e n c e A c c o u n t a b l e I n t e g r i t y P a s s I o n EMPLOYMENT EQUITY, TRANSFORMATION & SKILLS DEVELOPMENT

22. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Workforce Profile 2007 MaleFemaleTotal Occupational LevelsAfricanColouredIndianWhiteAfricanColouredIndianWhite Top Management010201004 Senior Management0307001213 Professionally qualified and experienced specialists and mid - management 23110030423 Skilled Technical and academically qualified workers, junior management, supervisors, foremen and superintendents 21301192911118193 Semi – skilled and discretionary decision makers 12131441001963 Unskilled and defined decision making 200022006 Total Permanent3750131151527243302

23. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Workforce Profile ( Race & Gender) – April 2008 MaleFemaleTotal Occupational LevelsAfricanColouredIndianWhiteAfricanColouredIndianWhite Top Management110201005 Senior Management0207000110 Professionally qualified and experienced specialists and mid - management 1316030317 Skilled Technical and academically qualified workers, junior management, supervisors, foremen and superintendents 332910841311120201 Semi – skilled and discretionary decision makers 1110043901451 Unskilled and defined decision making 100022005 Total Permanent4745111031826137289

24. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n

25. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Workforce Profile 2008 – Occupational Levels ( %) MaleFemaleTotal Occupational LevelsAfricanColouredIndianWhiteAfricanColouredIndianWhite Top Management0.49% 00.97%00.49%001.73% Senior Management00.97%03.40%0000.49%3.475 Professionally qualified and experienced specialists and mid - management 0.49%1.46%0.49%2.91%01.46%0 5.88% Skilled Technical and academically qualified workers, junior management, supervisors, foremen and superintendents 16.02%14.08%4.85%40.78 % 4.50%3.81%0.49%6.92%69.55% Semi – skilled and discretionary decision makers 5.35%4.85%01.94% 1.04% 3.11%04.84%17.65% Unskilled and defined decision making 0.49%0000.97% 001.73% Total Permanent22.82%21.84%5.34%50%6.23%9%0.35%12.80%100%

26. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n SUMMARY October 2007 PercentageApril 2008Percentage African Male 37 African Female 15 12% 5% African Male 47 African Female 18 16% 6% Coloured Male 50 Coloured Female 27 17% 9% Coloured Male 45 Coloured Female 26 16% 9% White Male 115 White Female 43 38% 14% White Male 103 White Female 37 35% 13% Indian Male 11 Indian Female 2 4% 0.6% Indian Male 13 Indian Female 1 4% 0.3%

27. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n SKILLS DEVELOPMENT 2008-2010

28. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n PPECB P r o f e s s I o n a l C o n f I d e n c e A c c o u n t a b l e I n t e g r i t y P a s s I o n FINANCE & BUDGETS 2008/09…

29. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n BUSINESS STRUCTURE Statutory Development Value added

30. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n The operating model separates PPECB’s activities into three broad stakeholder groupings. the groupings are:- Statutory services delivered in accordance with the PPECB and APS acts. Value added services delivered in accordance with needs and requirements from customers. Development services which include SA PIP management services, food safety, cold chain development, AETP and industry information. BUDGET STRUCTURE

31. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n STATUTORY SERVICES PPECB’s operations are focused in terms of value streams. the value streams consist of statutory inspection services and food safety audits (promulgated under act 119 of 1990) and cold services (act 9 of 1983) to ensure the orderly exports of perishable products. Inspection services Cold chain services Food safety services

32. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n VALUE ADDED SERVICES Value added services aim is to become a preferred supplier of food safety risk management services in the food supply chain.  incomeR9.3m  expenditureR7.7m  SurplusR1.6m compared to the 2007/8 budget, income is down R540k (5%) whilst expenditure is down R985k (11%).  Specialised services  Analytical services  Technical support services

33. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n DEVELOPMENT SERVICES Development services consists of food safety, AETP and research and development. these initiatives are all focused on development, improvement and growth within the industry. although funding is received from various sources there is a shortfall of R1.8m. the impact of this shortfall on statutory levies is 1.6%.  Income R2.2m  Expenditure R3.9m  Shortfall R1.8m  Food safety development  Cold chain research & development  AETP programme

34. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n SPENDING PRIORITIES BUDGET 2008-9 R’000 BUDGET 2007-8 R’000 %∆ StatutoryR111 025R100 47810% DevelopmentR3 936R5 697(31%) Value AddedR7 725R8 710(11%) PPECB expenseR122 686R114 8867% Capital ExpenseR2 889R733294%

35. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n

36. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n FUNDING SOURCES budget 2008-9 R’000 budget 2007-8 R’000 %∆ Statutory LeviesR111 199R101 06810% External FundingR2 176R3 992(45)% Value Added Services R9 311R9 852(5)%

37. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n BUDGET OVERVIEW BUDGET OVERVIEW 2008-92007-8 %∆ Net resultR0R25k Levy increase6%11% IncomeR123mR115m7% ExpenseR123mR115m7% Employee expenseR79mR74m7% Activity expenseR22kR21k5% Training expensesR3.3mR2.5m32% Training as % of employ 4.1%3.4%

38. PPECB P r o f e s s I o n a l C o n f i d e n c e A c c o u n t a b l e I n t e g r I t y P a s s I o n Creating World-Wide Confidence in South African Perishable Export Products Thank You