1. Portfolio Committee ( 04/03/2005) 1 Presentation to the Portfolio Committee of the Business Plan 2005 - 2006 Agricultural Research Council

2. Portfolio Committee ( 04/03/2005) 2 Purpose of the Presentation To present the business plan of the ARC for 2005/2006 budget year to the Portfolio Committee.

3. Portfolio Committee ( 04/03/2005) 3 Core Strategic Mandate Core strategic mandate is to: – Conduct national priority driven research, – Develop technology, and – Transfer technology that promotes agriculture and industry, To maintain national public goods on behalf of the Department of Agriculture (DoA) and the Department of Science and Technology (DST). To provide National Services to agriculture. Meeting obligations created by some ring fenced programs determined by the shareholder. Undertaking certain specified projects requested by the shareholder.

4. Portfolio Committee ( 04/03/2005) 4 Strategic overview The requirement to accelerate delivery of services to Previously disadvantaged groups compels the ARC to constantly review its investments. The new governance model of the science councils compels new understanding.

5. Portfolio Committee ( 04/03/2005) 5 Business Drivers of the ARC National legislation and policies National Priorities – National Imperatives To modernise and grow the 2 nd economy To grow the competitiveness of 1 st economy To create social security safety nets. – MinMEC priorities Funding pressures Institutional reviews

6. Portfolio Committee ( 04/03/2005) 6 Programs of the ARC Core Strategic Research Program – Sustainable Rural Livelihoods Maintenance of National Assets Provision of National Services Special Programs – Capacity Building – SADC and NEPAD Administration and support

7. Portfolio Committee ( 04/03/2005) 7 Aim:To conduct applied and adaptive research with the aim of developing technologies in the following key disciplines: – Cereal and grain crop production – Fruit and vegetable crop production – Animal improvement and production – Sustainable use of natural resources Goals: To optimise and enhance the sustainable production, value and safety of foods and other products derived from: – Grain and industrial crops products – Horticulture and vegetable crop production – Livestock production. Program 1 (a) Core Research Program Aims and Goals The program comprises multi-disciplinary research conducted by the core divisions of Grains & Industrial Crops, Horticulture, Livestock and Public Support Services to develop new products and services and the improvement of existing products and services in line with national priorities.

8. Portfolio Committee ( 04/03/2005) 8 Sustainable rural livelihoods Aim:To orientate the work we do in applied and adaptive research with the aim of developing technologies that are responsive to the needs of the resource poor farmers (RPF’s) and emergent farmers in the different disciplines Goals: To optimise the productive and competitive capacity of the RPF’s to ensure household food security, rural incomes and employment, improve national and international market opportunities and safeguard the natural resource base. Program 1 (b) Core Research Program Aims and Goals The program comprises multi-disciplinary research conducted by the core divisions to develop new products and services, improvement and transfer of existing and new products and services to the RPF’s.

9. Portfolio Committee ( 04/03/2005) 9 Aim:To maintain national collections of plants, animals, bacteria, yeasts and viruses that form important sources for reference, and/or represent important sources of genetic material on behalf of the people of South Africa. Goals: To sustain and develop the natural resource and biological bases, reference collections, gene banks, technologies and services required by Government in the execution of its regulatory, developmental and protection functions and in meeting its obligations in terms of international agreements and conventions. Program 2 Maintenance of National Assets Aims and Goals The program comprises multi-disciplinary research on the characteristics of these national assets AND their actual physical upkeep.

10. Portfolio Committee ( 04/03/2005) 10 Aim:To provide diagnostic and surveillance services around the pest and diseases that can befall the whole agricultural sector. Goals: To ensure that pests and diseases are identified in time and solutions developed to mitigate any economic and social problems that may result Program 3 Provision of National Services Aims and Goals The program comprises multi-disciplinary research to develop new products, improvement of existing products to mitigate the effects of pests and diseases

11. Portfolio Committee ( 04/03/2005) 11 Aim:To contribute to the improvement of the quality of life of the inhabitants of the SADC countries and support the objectives of NEPAD. Goals: To assist in finding solutions applicable to the region and the continent Program 4(a) Special Program: SADC and NEPAD Aims and Goals The program comprises forming partnerships in multi-disciplinary research to develop new products, improve existing products and sharing knowledge

12. Portfolio Committee ( 04/03/2005) 12 Aim:To develop scientific and human resource capacity in the ARC. Goal:To ensure that adequately skilled and sufficient number of strategic human capital is developed. Program 4(b) Special Program: Strategic Capacity Building Aims and Goals The program comprises different ancillary projects internally and externally focused on developing future capacity requirements

13. Portfolio Committee ( 04/03/2005) 13 Aim:To provide value added support services to the core divisions. Goal:To ensure that the services provided are at a cost that enables optimal investment in the core operations. Program 5 Administration and Support Aims and Goals The program comprises services from Finance and Information Technology, Human Resources and Business Development and International Relations divisions

14. Portfolio Committee ( 04/03/2005) 14 Key targets for this year Key Targets for 2005/2006 – Increase our commitment to solutions of Resource Poor Farmers (RPF’s) to 30% of total commitment – Develop two new technology incubators for RPF’s – Develop 20% more technologies than last year – Improve our customer satisfaction rating by 20% – Improve our employee satisfaction rating by 20%

15. Portfolio Committee ( 04/03/2005) 15 Priorities for the year (1) Improve our capacity in fore sighting in order to advice the shareholder on strategic investments in agricultural research. Elevating the profile of the programs dealing with issues of Resource Poor Farmers. Reaching agreement with DoA and DST to fully fund the national services and the maintenance of the national assets. Increase the revenue derived from other sources through optimal leveraging of the resources of the organisation without undermining the core strategic mandate.

16. Portfolio Committee ( 04/03/2005) 16 Priorities for the year (2) Continue on the cost containment strategies. Agree partnership with Onderstepoort Biological Products (OBP) on the production and marketing of vaccines. Creating a performance oriented cadre of employees. Implementing of core business capacity development programs. Developing and implementing sustainable staff retention strategies.

17. Portfolio Committee ( 04/03/2005) 17 Priorities for the year (3) Improve and sustain the culture of customer orientation. Implement new marketing and communication strategies. Will enhance our relationships with other partners within the national system of agriculture especially Provincial Departments of Agriculture. Entrenching the culture of accountability. Consolidating the integration of the organisation. Enhance the image of the organisation.

18. Portfolio Committee ( 04/03/2005) 18 PROGRAM 1(a) Core Research Program Measurable Objectives OutputMeasure/indicatorsTargets Technology development used in agricultural primary and secondary production Number of technologies initiated15% more technologies initiated than last year Pest and disease management services Number of pest and disease outbreaks that are successfully contained. Maintain successful containment Reports and manuals on scientific investigations Number of reports and manuals published. 10% increase in publications.

19. Portfolio Committee ( 04/03/2005) 19 PROGRAM 1(b) Sustainable Rural Livelihoods Program Measurable Objectives OutputMeasure/indicatorsTargets Technologies directed at solutions desired by RPF’s Number of technologies20% more than last year Packaging and transferring of technologies into the RPF sector Number of information pamphlets, brochures issued 20% more than last year Reports on the needs of resource poor farmers Number of reports20% more than last year

20. Portfolio Committee ( 04/03/2005) 20 PROGRAM 2 Maintenance of National Assets Program Measurable Objectives OutputMeasure/indicatorsTargets Conservation of basic germplams, collection of grain and industrial crops Number of national assets in care 5% increase on last year National bio-resources fully protected. Losses to the collections< 1% per annum Strategies on National AssetsApproved strategiesBy 30 March 2006

21. Portfolio Committee ( 04/03/2005) 21 PROGRAM 3 Provision of National Services Measurable Objectives SubprogramOutputMeasure/indicatorsTargets Climate Monitoring Early warning climate monitoring advisories Ongoing provision of appropriately packaged, interpreted information and decision-support systems Maintenance of the quality and integrity of the system. Diagnostic Services Plant, animal and soil pest and pathogen identifications Number of diagnosis’ made and turn around time. 5% improvement in turn-around time. Crop Forecasting Provision of production estimates for agricultural statistics Regular provision of production estimates Full satisfaction from public-sector clients and end- users

22. Portfolio Committee ( 04/03/2005) 22 PROGRAM 4 Special Programs Measurable Objectives SubprogramOutputMeasure/indicatorsTargets Capacity BuildingBuilding and sustaining young black and female researchers for the ARC Number of participants Number of mentors Rand value invested 64 16 R 5million SADC and NEPADAdvice on solutions needed (Safrinet Biosystematic network) Number of reportsDepends on collective decisions of network. Reports on the prevalence of economically significant migratory pests (ICOSAMP) Number of reportsDepends on collective decisions of network. Reports on disease surveillance of industrial crops Number of reportsDepends on collective decision of network.

23. Portfolio Committee ( 04/03/2005) 23 Economic Classification Current 2005-20062006-2007 Core Strategic Fund (Parliamentary Grant) 312,992333,317361,943 Other Transfer Receipts 53,50061,83564,269 Sub-total 366,492395,152426,212 External Revenue 215,120234,542257,996 TOTAL 581,612 629,694 684,208 Commercial Revenue as % of Total Income 37% 38% Funding

24. Portfolio Committee ( 04/03/2005) 24 Economic Classification Current2005-20062006-2007 Compensation of Employees 322,357 344,400 374,394 Goods and Services 196,378 203,292 219,228 Use of Infrastructure (Depreciation) 17,883 29,113 33,454 Payment for Capital Assets44,99452,88857,132 TOTAL 581,612 629,694 684,208 Resource allocation

25. Portfolio Committee ( 04/03/2005) 25 Challenges to the ARC Competition for skilled capacity Investments made in public interest research Investments in new infrastructure

26. Portfolio Committee ( 04/03/2005) 26 Conclusion ARC ready for the challenges it face Will continue to ensure effective delivery and protection of agriculture base. THANK YOU