Citrus Growers Association
Strategic Workshop
Birchwood Hotel and Conference Centre, Brakpan
12-13 June, 2013
Facilitated by
L. von Broembsen & Associates
CC Registration No. 2003/029986/23
20 Stuartfield Avenue, Trovato Estate, Kenilworth 7708, Cape Town.
Tel.& fax (021) 7627187
Cell (083) 250618
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Prepared by L.von Broembsen, June 2013
Executive Summary……..
This report covers the outcome of a strategic workshop called by the CGA Board in June 2013
to review progress on implementation of previously identified strategic projects and recalibrate
the industry’s most pressing issues. In particular, it was recognized that there was an urgent
need to align industry and government in the pursuit of gaining, retaining and optimizing
market access and creating an environment for a harmonious, profitable and globally
competeitive citrus industry. An implementation plan for the agreed strategy was also
considered critical.
After a series of scene-setting presentations the workshop discussed CGA’s stakeholders, the
purpose of its primary customer the grower, and the task that the CGA has in meeting its
growers’ expectations and goals.Thereafter the opportunities, threats, strengths and
weaknesses were identified and lists were created of what industry and government need/want
of each other and how well aligned these issues presently are. The group then identified what
the ‘perfect CGA’ would be doing and how it would be structured. This process was used to
identify the five top priorities that CGA needed to give attention to immediately and was used to
take the first step in structuring project plans for these five most important actions.
The threats listed by participants highlighted technical issues (phyto, biosecurity, food safety,
water), government policy and services (land reform, labour and DAFF) infrastructral
shortcomings and political instability locally and offshore. These factors all translate into higher
production and/or value chain costs, barriers to market penetration or all three. Research and
Technical support was seen a key industry strength while CGA’s weaknesses related mainly to
issues around relations with government. Opportunities included the leveraging of South Africa’s
strong citrus research and technical base to widen market access and retain existing markets
through the ability to comply with ever-tightening market standards ; and improving
relationships between CGA and government.
Inputs by participants on the alignment of CGA’s and Government’s objectives flagged the need
for greater consultation and engagement as a primary requirement and placed emphasis on the
CGA becoming a ‘friendly partner’ of government rather than a critic. It was felt that the issues
raised could be resolved by dialogue but this would require energy, urgency, resolve and the
willingness to engage constructively.
This, together with the issues listed in the SWOT analysis, placed the workshop in a position to
catalogue the main issues that CGA has to work on as a matter of urgency to safeguard its
future. The five top ranked issues (out of 26 issues raised) are, in order of importance:
1.
2.
3.
4.
5.
Relationship with Government
Structure of the CGA Board
Transformation and Land Reform
CGA/Grower Alignment
Market Access
Each of the participanting groups was then given one of the above issues and requested to
generate a project plan and present their project plans to the workshop. The completed project
plans are presented as appendices to the report and reflect the collective wisdom of the
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participants to take the first step in structuring formal project plans for the five most important
actions identified during the workshop. Due to limited time the project plans could not be
completed in full detail but they will serve as a valuble guideline for taking these projects
forward.
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Introduction…..
Since 1997, the year the Citrus Growers Association of Southern Africa was established,
the Board has held four strategic planning sessions, the most recent being in 2010. In
view of the rapidly changing landscape both locally and internationally, the CGA Board
requested that a strategic planning workshop be held to review progress, recalibrate
the industry’s most pressing issues and provide a roadmap for the way forward.
In particular, it was recognized that there was an urgent need to align industry and
government in the pursuit of gaining, retaining and optimizing market access and
creating an environment for a harmonious, profitable and globally competeitive citrus
industry. An implementation plan for the agreed strategy was also considered critical.
This report covers the outcome of the workshop.
Attendance……..
CGA Board of
Directors:
Pieter Nortje
Piet Smit
George Hall
Graham Piner
Antoine Rouillard
Paul Bristow
Phillip Dempsey
Danie Mathewson
Fanie Meyer
Bertus Dillman
Per Noddeboe
Charles Rossouw
Hannes Hobbs
Israel Nemaorani
Cornel van der
Merwe
Piet Smit (alternate
for Ben Vorster)
Stuart Symington/
Flip Smit
CGA staff and
other Attendees
Chairman (Sundays River)
Executive (W Cape)
Executive (Boland)
Executive (Nelspruit)
Director (Pongola)
Director (Zimbabwe)
Director (Patensie)
Director (Vaalharts, N
Cape)
Director (Hoedspruit)
Director (Limpopo)
Director (Swaziland)
Director (Senwes)
Director (PDI – South)
Director (PDI – North)
Director (Onderberg)
Letsitele
Justin Chadwick
CEO: CGA
Paul Hardman
Industry Affairs
Manager: CGA
Logistics Development
Manager: CGA
Mitchell Brooke
Lukhanyo Nkombisa
Transformation
Manager: CGA
Mzo Makhanya
Chairman: Citrus
Growers Development
Chamber
Vaughan Hattingh
CEO: CRI
Mono Mashaba
Government Lobbyist:
CGA
Young Grower (E Cape)
Khaya Katoo
CEO PPECB
CGA Audit Committee
Chairman
Boet Mouton
Jan Louis Pretorius
Young Grower (W
Cape)
Young Grower
(Letsitele/Hoedspruit)
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Process and Programme…………..
The workshop took place from 11:00 on 12th June to 15:00 on 13th June 2013. It
consisted of 5 parts:
1. Scene - setting talks
The following five scene- setting addresses, introduced by the Chairman who welcomed
participants and outlined the purpose of the workshop, were presented:
Elaine Alexander – CEO SA Table Grapes and Fruit SA: Fruit Industry Social Compact
Lukhanyo Nkombisa – CGA Transformation Manager: Citrus Farmers Support
Commodity Approach
Paul Hardman – CGA Industry Affairs Manager: Industry Trends and Statistics
Stuart Symington – CEO PPECB: CGA – Lateral Thinking
Justin Chadwick – CGA CEO: CGA Structure and Background.
Copies of the slides used in these presentations are available from the CGA
On day two, Mono Mashaba, CGA’s Government Lobbyist addressed the group on his
Background and Aims.
2. Information Collection
In order to effectively harness the collective thinking of the diverse group in the limited
time available, the Participlan facilitation method was used for part of the session.This
involved participants responding to a few carefully structured questions by presenting
their ideas in writing on specific cards (ovals). Participants were placed into one of 5
groups of 5 or 6 individuals per group and the written responses to the questions were
generated collectively by each group.
The ovals were displayed, clustered, debated and evaluated in open forum. In the
process, each participant was given the opportunity to make his initial inputs
anonymously yet participate in open discussion. In answering the final question (5)
participants were to rank the issues in order of priority.
The information gathered in this way constitutes the bulk of this report.
3. An analysis of who CGA’s customers are and what can they expect of CGA
4. Identification of issues to be included in the SWOT analysis
5. The development of project plans for the issues identified as most urgently
requiring attention
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Findings……..
Who are the customers/stakeholders of CGA? What are the objectives of the
members and what are they trying to achieve?
This question was discussed in open forum and the responses captured.
It was agreed that CGA has a number of stakeholders (including growers, export
agents, importers, government, labour, fruit buyers, etc). However, citrus growers (of
all sizes and configurations) who pay their export levies are in fact the first, foremost
and only true customers of CGA.
It was agreed that the main objective of growers is to be profitable on a sustainable
basis. This would lead to many positive spin-offs such as employment and the increased
earning of foreign exchange. This being the case the question was asked….
Question 1…
“If the key is enabling our members to achieve their
objectives…..what does CGA see as their own objectives?”
Issue
Supply
Information
Responses


Provide well-researched technical and market information
Provide relevant information for decision making
Interaction with
Government




Facilitate interaction with government
Raise political profile of CGA with government
Meet government’s transformation goals
Influence and engage government to support CGA objectives
Market access





Create and maintain markets
Create profitable markets
Maintain and create market access
Easier/safe access to Africa markets
Provide means to grow market access
Enabling
environment


Create a sustainable supply chain model
Create an enabling trading environment
Social Compact


Partner growers, government and labour in a social compact
Facilitate a conducive labour environment
Resources

Prioritise and direct resources
Communication

Develop an internal and external communication master-plan
Levies


Add value to grower levies
Increase levy to R1.00/carton
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Issue
Assets
Responses

Control and invest in critical industry assets
Structures

Create required/suitable structures
Interventions

Understand and prioritise interventions
Sustainability

Identify drivers of sustainability
Innovation

Promote an environment for innovation
Strategic issues


Strategic positioning of industry
Offer strategic, proactive guidance
Representing
growers

Represent growers in a reputable manner
General vs own
affairs

Do stuff collectively that can’t be done individually
The responses listed above re-confirmed the nature and scope of service that
participants believed the levy-paying growers can expect of their industry body, the
CGA.
The next step was to establish from participants what changes, relevant to the CGA,
were taking place in the external environment. Participants were given a prompt in the
form of the anagram “PESTLED” which stands for Political, Economic, Social, Legal,
Environmental and Demographic. The responses were categorised as either Threats or
Opportunities.
Question 2:
“In your view what are some of the changing scenarios
(opportunities and threats) that could unfold in the next 2-5
years in the space in which the CGA operates?”
“Which factors (current and expected) are necessitating
changes being made to CGA’s strategy and the way CGA
operates and is structured?”
Threats
Issue
Phytosanitary
threats
Responses - Threats



Review of EU Phyto legislation
Addressing the FCM issue
Phyto threats (FCM, HLB, CBS, BI)
Trade Barriers

Increase in barriers – technical and trade
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

New/existing barriers – trade and phyto
Non tariff barriers
Water quality



Water quality and quantity management
Water quality and quantity regulations
Water quality
EU
Protectionism

Is EU still a viable market? Action/Alternatives?
Instability

RSA’s Political, Economic and Policy instability
DAFF


Capacity within DAFF in decline
Daff imploding
Global
Economy


Slow recovery of global economy
Political instability in ME and EU
Labour

Impact of labour unrest, unemployment and poverty
Competition

Increasing competition in the market
Plant
Protection
Products

Tightening of Food Safety and MRL requirements
Biosecurity


HLB introduction to RSA
Biosecurity
Costs


Pressure of rising inflation
Input cost pressure = decreasing profit
Social
responsibility

Higher levels of social responsibility required (schools , clinics)
Land Reform

Changes to land reform policy (X2)

Accelerated land reform (cost)
Infrastructure

Lack of suitable infrastructure – roads, rail, ports, power.
Election

Election silly season
The threats listed by participants were mainly around technical issues (phyto,
biosecurity, food safety, water) political (land reform, labour, DAFF), infrastructral
shortcomings and political instability locally and offshore. These factors all translate into
higher production costs, barriers to market penetration or both.
Predicted changes to the external environment also offer certain opportunities to the
CGA. These are listed below.
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Opportunities
Issue
Consumer
trends
Responses - Opportunities


Comply with requirements of a more discerning consumer base
Changes in consumer trends
BRICS



A development opportunity (X2)
BRICS and bilateral agreements
Subsidizing Indian access
Citrus industry
culture

Ability to adapt
UK leaves EU

Creates potential opportunity
SIZA

All RSA growers to be able to comply with SIZA
CGA/ Govt
Collaboration

Forging enhanced relationships
Mechanization

Solution to labour difficulties
HLB

Threat to competing countries
New Land
Reform Policy

Could favour solutions to land transfer difficulties
USA market
access

Access to whole of Southern Africa
African market

Development of African market
Transformation

Transformation and social upliftment
Food safety

Ability to meet increasing demands
NDP

As a cornerstone of policy direction
Opportunities mainly relate to
 leveraging South Africa’s strong citrus research and technical base to widen
market access and retain existing markets through ability to comply with evertightening market standards.
 improving relationships between CGA and government.
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Question 3: “What things are currently working well/not well in regard to
CGA meeting its strategic objectives?”
Not working well - weaknesses
Issue
Relations with
government
Responses - Weaknesses






Government relations not working
Difficulty in working with government
Government relations management weak
Lack of strategic intervention with government
Labour relations management not working
Insufficient capacity to engage with Govt
Transformation



Half-hearted approach to transformation
Transformation ineffective
Transformation desk too thinly spread
Board Structure

Board structure clumsy
FSA Value

Not extracting value from FSA – lone ranger
Infrastructure

Infrastructure not supporting objectives
Lobbying

Insufficient lobbying - internal and external
Grower
database

Incomplete grower database
Image


Image of industry not good
Image not well promoted
Input to DAFF

Market access input to DAFF
Phyto

Phyto registrations
Logistics

Logistics interventions (commercial)
Research
capacity

Horticulture insufficient
Reserve Funds

Management of reserves (financial)
Fundraising

Fundraising outside of levy
CGA offices


Are CGA offices in the right centre?
CGA office in Durban
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Working well - strengths
Issue
Information and
Communication
Responses - Strengths

Access to information

Improvement in communication

Information

Continuous improvement in market information

Grower communication
Transformation portfolio

Government relations on transformation portfolio
Research


Comprehensive research (X2)
Research best in the world
River Bioscience and Xsit

Good and growing
CIS

Working well but threatened
Administration

Levy admin and corporate governance
Market access

Good but too restrictive - negotiate
Grower chamber

Formation of the grower chamber
Citrus Academy

Citrus Academy
Food Safety

Food safety assurance
Strong base

Good base created to move in the new direction
Research and Technical support was seen a key industry strength while CGA’s
weaknesses related mainly to issues around relations with government. Overall,
responses to the last two questions (changing scenarios and what is working well/not
so well) effectively spelt out the items for populating a SWOT analysis.
A SWOT table extracted from the responses to the two previous questions is provided
hereunder.
Strengths
Govt relations in transformation portfolio
Grower Communication
Access to information
River Bioscience & XSIT
Food Safety Assurance
Citrus Academy
CRI & CIS
Research
Market Access
Levy Admin & Corporate Governance
Firm base from which to take new direction
Weaknesses
Not extracting value ex FSA – lone ranger
Board Structure clumsy
Image not well promoted
Market Access inputs to DAFF
Logistics interventions (commercial)
Phyto registrations
Relationship with Govt
Labour relations management
Alternative measures to cold steri
Incomplete grower database
Transformation – insufficient attention
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Management of reserves
Insufficient capacity to engage with Govt
Lack of Govt Capacity
Infrastructure not supporting objectives
Opportunities
BRICS Developments
Transformation & Social Upliftment
Development of African Market
Citrus Industry Culture
NDP as cornerstone of policy direction
Changes in Consumer Trends
Land reform policy changes
Mechanisation
Enhanced collaboration CGA/Govt
Compliance with SIZA
USA Marcket Access (for whole of SA)
HLB affecting competitors
Threats
Water Quality
Phyto threats (FCM, CS, BI)
EU Phytoprotectionism
Imploding DAFF
Trade Barriers - Technical
Political Instability in ME & EU
Diminishing Levy Base
Political & Economic Policy Instability
Impact of Labour Instability
Input Cost & Inflation
HLB & Biosecurity
Land Reform policy changes
By creating a SWOT matrix, CGA can develop its competitive advantage by identifying a
fit between the elements contained in the SWOT as follows:
Strengths
Weaknesses
Opportunities
S-O strategies
W-O strategies
Threats
S-T strategies
W-T strategies




S-O strategies pursue opportunities that fit with the company’s strengths.
W-O strategies overcome weaknesses to pursue opportunities.
S-T strategies identify ways that CGA can use its strengths to reduce its
vulnerability to external threats.
W-T strategies establish a defensive plan to prevent the CGA’s
weaknesses from making it highly susceptible to external threats.
An example of a S-O strategy is where an identified weakness ‘Relationship with
Government’ can be pursued through one of its identified strengths, ‘Firm Base from
which to take New Direction’
An example of a W-O strategy is where an identified weakness ‘Relationship with
Government’ can be overcome so as to seize the identified opportunity ‘Enhance
Collaboration with CGA/Govt.
Similarly, an example of an S-T strategy is where CRI’s strengths would be used to
address Phytosanitary threats, or a W-T strategy where addressing an identified
weakness ‘Relationship with Government’ can make CGA less susceptible to the external
threat of ‘Labour Instability’
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In the SWOT analysis the issue of CGA/Government relationships features prominently.
Accordingly, Question 4 (below) probed the merits of a closer alignment between CGA
and government.
Question 4: “What functions/processes do industry and government
need/want of each other? Are these aligned?
Industry Requires from Government
Issue
Improved
Communication
Responses - Opportunities






Open communication channel to govt at policy level
Access to inter-ministerial committees (land reform,
agriculture)
Govt representation at CGA board meetings
Consultation on agreed processes
Policy certainty
Opportunity/platform to engage and contribute to NDP
Market Access


Support market access needs
Assistance/ involvement in bilateral negotiations
Infrastructure
Development



Provide enabling environment – ports/infrastructure (X2)
Create an efficient logistical infrastructure
Port/Logistics infrastructure/service
DAFF




Provide effective, efficient, professional representation
A competent authority
Sufficient well-trained capacity
No more Hollywood (managers in acting capacities)
Subsidies


Want subsidies reintroduced
Enhance competitiveness by levelling playing field against
highly subsidised competitors
Understanding
Industry




Understanding and recognition of role and contribution of
citrus industry
Govt understanding of industry needs
Have a balanced business and social approach
Political will required
Attention and
Urgency


Attention to problems and requests put in front of them
A sense of urgency to address and resolve issues
Fulfilling

Fulfil obligations to trading partners SOPs & other agreements
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obligations
Leadership


Strong leadership
Political leadership
Facilitation

Facilitate easier export processes (admin)
Biosecurity

Biosecurity protection
Brand SA

Promote and support Brand SA
Trade

Promote favourable trade relations (BRICS)
Social
Infrastructure

Provide improved social infrastructure services (health,
education, etc)
Research

Provide effective research support
Incentives

Provide incentives for desired actions by growers
Transformation

Require a transformation action plan
PPECB

Require alternative inspection service to PPECB
Many of the issues listed above are not adequately meeting the needs of industry, some
of which are a source of concern and frustration and even threaten the industry’s
future. Government also requires various inputs from industry. Consultation with
government is required to understand and prioritse their needs/wants but in the
meantime paricipants listed the issues they believe are important to government. These
are as follows:
Government Requires from Industry
Issue
Transformation
Responses - Opportunities



Support transformation
Skills development as part of transformation (X2)
Farmer to developing farmer
Job Creation
and Security



Job sustainability
Create employment (X4)
Job security
Social
development



A healthy rural economy
Support of the NDP
Social development
Revenue


Revenue generation
Earning of Forex
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Alignment of
industries

Common industries to align with each other (FSA)
Land reform

Implementation of land reform
Communication

Want to be informed and educated on special needs and
requirements of industry
FSA

Uniform fruit industry vision (FSA)
Involvement

Greater involvement of youth, women and disabled in industry
Food security

Ensure on-going food security
Strong industry

A competitive and sustainable citrus industry
Trust

Mutual trust and communication
Appreciation

Appreciation of what government is actually doing
Relations

Improvement in relations at all levels by agreeing a process to
achieve this
Research

Research guidance
Image

Politically acceptable industry image of government
Phyto
adherence

Adherence of farmers to phyto requirements
Inputs by participants placed emphasis on the CGA becoming a ‘friendly partner’ of
government rather than a critic. Several important issues are listed above which need
to be and can be resolved by dialogue but this will require energy, urgency, resolve and
the willingness to engage constructively.
This, together with the issues listed in the SWOT analysis, placed the workshop in a
position to catalogue the main issues that CGA has to work on as a matter of urgency
to safeguard its future This is not a strategic plan but more a list of actions that amount
to dealing with a burning platform. Long-range strategic planning or scenario planning
should follow the resolution of these critical issues. The identification and ranking of the
critical issues was achieved by asking and voting on question 5, below:
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Question 5: “In 2 years time CGA is hailed as a model organization of its kind.
What are we doing and how are we structured to warrant this praise?”
Vote: Rank the 5 issues requiring immediate action plans
Vote
Rank
23
1
Issue
Relationship
with
Government
Responses






15
2
Structure of
CGA Board


Is a trusted partner of government
Has great relationship with government on right
platform
CGA Chairman has a face recognized by Govt as
an ally
Has effective consultative structures with Govt
& stakeholders
CGA has the key into Govt
Has excellent Govt relations
Has the capacity & structure to execute the
strategic objectives of the past 14 years
Has adequate resources for all our needs
11
3
Transformation
and Land
Reform




Visible transformation results
Progressive land reform initiatives
Leaders in agric transformation
Has the recipe to integrate emerging farmers
into the industry
8
4
Grower
service/
alignment









Caters for interests of all sizes of growers
CGA puts the grower first
Grower objectives drives CGA structure and
agenda
Supportive grower base
Good base, best growers
Wide-ranging activity base
Grower interests are addressed
Trusted partner of the grower
CGA is connected to its customers/growers



Creates and maintains required export markets
Grows market access
Has access to all wanted markets.
8
5
Market Access
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7
6
Infrastructure
development


Driver of efficient logistics system
Infrastructure developed
7
7
Incentives

Industry receives government incentives
6
8
Profitable
growers




Creates an environment for its customers to remain
profitable
Facilitates profitable and sustainable citrus farming
Competitiveness despite strong rand
Profitable and expanding industry
Social Compact

Embraces the social compact study (FSA)
6
9
4
10
Leadership




Has visionary, proactive leadership
Has a culture of stewardship
Is proactive and long - term vision
Has strong leaders
4
11
Communication
with stakeholders

Has an excellent communication system with all
stakeholders
2
12
Good image

Has the right political image
2
13
Intelligence hub

Has a market intelligence hub
1
14
Culture

Has a people-centred cooperative culture
1
15
Relationships

Has good stakeholder relations
1
17
Labour force


Industry has a well paid, productive labour force
Contributes to job and food security
1
18
Networking

It networks beyond government
1
19
Values

Is true to its core values
0
20
Number 1

Is the number one exporter of citrus in the world
0
21
Goals

Achieves the goals it has set itself
0
22
Staff


Invests in people
Has a competent energised team
0
23
DAFF

An effective and efficient DAFF supports the industry
0
24
Diversified

Has diversified products and markets
0
25
Innovation

Is a driver of innovation
0
26
Quality

Is quality driven
17
Prepared by L.von Broembsen, June 2013
Project Plans…………….
Each of the participanting groups was then given one of the five highest ranking issues
taken from the responses to Question 5 and requested to complete the CGA Project
Plan Template and present their project plans to the workshop. The completed project
plans are presented in Appendices 1-4 attached to this report.
The intention here was to use the collective wisdom of the participants to take the first
steps in structuring project plans for the five most important required actions identified
during the workshop. Due to limited time the project plans could not be completed in
full detail but they serve as a valuble guideline for taking these projects forward.
Conclusion…………..
The scene-setting talks at the start of the session provided valuable context,
perspective and information for the contributions required from individual participants
during the workshop. The five groupings into which participants were placed were well
balanced in their skills mix and responded energetically to the questions posed and the
open discussions that followed.
Arising from the workshop there are now several tangible, prioritized projects that have
been kick-started and require immediate follow-up. A strategy session to consider Citrus
Vision 2020/30 should be undertaken in due course and should include appropriate
scenario planning.
End
18
Prepared by L.von Broembsen, June 2013