NAMC STRATEGY and
BUDGET
By
TR Ramabulana
CEO: NAMC
National Agricultural Marketing Council
STRUCTURE OF PRESENTATION
•
Introduction
•
Framework of the Strategy
– Strategic Overview
– Key Result Areas
– Planned Expenditure per programme
•
Overall 2008/09 Budget
National Agricultural Marketing Council
Farmer & Agribusiness Needs
All farmers
1st
economy
farmers
Supply-Side
Demand-Side
– Limited water
– Scarcity of arable land
– Soil degradation
– Climate change
– Rising input costs
– Inadequate access to
market information
– Limited innovation in risk
management
– Limited access to
financial services
– Poor infrastructure
– Inadequate basic services
nd
2
– Limited access to capital
economy
– Limited skills
farming
Slow PaceMarketing
of Land Reform
National –Agricultural
Council
challenges
– Inadequate focus on
new markets
– Limited product
innovation
– Limited access to
markets
– Limited access to
local markets
Business Environment
– Lack of shared
vision across role
players
– Negative impact on
competitiveness
– Cost of compliance to
SPS & TBT standards
– High cost of
compliance to labour
legislation
– Limited supporting
institutions
– Limited settlement
support
INTRODUCTION
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This strategic plan positions the NAMC as an organization that aims to assist the DoA
achieve its objectives as highlighted in the:
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Objectives of the NAMC as highlighted in the MAP Act:
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LARP & DoA strategic plan
Sector plan
Increasing market access for all market participants
Promotion of the efficiency of the marketing of agricultural products
Optimisation of export earnings from agricultural products
Enhancement of the viability of the agricultural sector
Mission of the NAMC:
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Provide accurate and well-informed policy advice on marketing of agro-food products to the
Minister, DoA and Directly Affected Groups
Support developing farmers in terms of market access, knowledge acquisition and training
Leverage centers of excellence and own resources to enhance equity, competitiveness, profitability
and sustainability of the sector
Contribute to the agric sector growth objectives by supplying useful information and policy positions
using globally tested and proven analysis tools
Focus efforts on the strategic positioning of the sector in dynamic global markets
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OVERALLL OBJECTIVES
– Acceleration economic growth and social inclusion;
– Addressing structural challenges of the organization and capacity
constraints;
– Stabilization of food prices;
– Reaching out to the youth and women; and
– Improving the country’s skills base.
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FUNCTIONS OF THE COUNCIL
• Investigate the establishment, continuation, amendment or
revocation of statutory measures and other regulatory
measures
• Prepare and submit to Minister for consideration, statutory
measures
• Undertake investigations and advise the Minister regarding:
– Agricultural marketing policy and the application thereof;
– The coordination of agricultural marketing policy in relation to national
economic, social and development policies, and international trends
and development;
– The effect that marketing of products has on the objectives of the Act.
• Monitor the application of statutory measures and report
thereon to the Minister at least every two years.
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NEW COUNCIL MEMBERS
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Mrs. Ntombi Msimang (Chairperson)
Dr. ASM Karaan (Vice-Chairperson)
Prof. HD Van Schalkwyk
Mr. AD Young
Prof. JF Kirsten
Mrs. SE Moolman
Mrs. C Molo
Mr. DB Montshwe
Mrs. M Mannya
Mrs. M Gill
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CORPORATE GOVERNANCE
COMMITTEE
• Audit committee
– Mr. Victor Nondabula (Chairperson)
– Prof. HD Van Schalkwyk
– Ms. M Moja
– Mrs. M Gill
– Mr. R Matlou
• Human Resources Committee
– Mr. AD Young (Chairperson)
– Mrs. SE Moolman
– Mrs. M Mannya
– Mr. TR Ramabulana
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COUNCIL & COMMITTEES’ SCHEDULE OF
MEETINGS
COUNCIL
AUDIT
COMMITTEE
HR COMMITTEE
CHAIRPERSON
COMMITTEE
1
21 April
26 May
21 April
5 June
2
4 August
24 July
4 August
20 October
3
8 December
27 November
8 December
4
16 February
9 February
16 February
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INFORMATION DEVELOPMENT
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MAPPING, UNDERSTANDING AND QUANTIFYING VALUE CHAINS
(INCLUDING SECTION 7 COMMITTEES)
• FOCUS
– To map, describe and quantify the value chain for each sub-sector in
terms of, among others, the following factors:
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Structure & Performance
Export orientation
Market situation
Macro-economic issues
SWOT analysis
• MEASURABLE OBJECTIVE
– To produce a series of value chain reports and in addition, when
required, to produce Section 7 investigation reports.
• PERFORMANCE INDICATOR
– Annual production and distribution of at least one agro-food chain
report and, in addition, production of Section 7 reports according to
demand.
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TRADE ANALYSIS
• FOCUS
– To produce research under the following broad trade areas:
• Agricultural tariffs
• Tariff rate quotas
• Non-tariff barriers
• Inter- and intra-trade flows
• MEASURABLE OBJECTIVE
– To produce a series of trade policy-relevant research reports on current trade
issues and challenges
• PERFORMANCE INDICATOR
– Produce and distribute 11 newsletters on trade related issues
– Produce and distribute 5 trade profiles (commodity and product specific)
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LINKING FARMERS TO MARKETS
• FOCUS
– Produce case studies on black farmers who have been successfully
integrated into the mainstream economy and to draw from such studies
lessons that can be practically implemented elsewhere.
• MEASURABLE OBJECTIVE
• To produce research on best practices of linking black farmers to
markets and to facilitate the integration of black producers into the
mainstream of commercial agriculture.
• PERFORMANCE INDICATOR
– Regular production and distribution of research reports, articles and
working papers on linking emerging farmers to markets (2 annually).
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RISK MANAGEMENT
• FOCUS
– To produce research that applies tools for market risk management in
agro-food chains
– To produce research that quantifies agric market risk and provide
guidance on management
• MEASURABLE OBJECTIVE
– To produce a series of research reports on agric market risk
management
• PERFORMANCE INDICATOR
– Produce 3 research papers on market agric risk management that can be
applied in the planning and implementation of projects by the DoA and
DAGs
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INFORMATION MANAGEMENT SYSTEMS
• FOCUS
– To produce reports that cover trends and other developments regarding food
prices, input costs and other variables across sub-sectors and along the
agricultural agro-food chains and, among other things, provide policy input.
• MEASURABLE OBJECTIVE
– To produce a series of reports containing marketing data and information for all
stakeholders in the agricultural sector and to develop/maintain sufficient
database capacity to provide easy access to relevant marketing information.
• PERFORMANCE INDICATOR
– Produce and distribute four quarterly Food Price Trends reports;
– Produce and distribute one annual Food Cost Review report;
– Produce and distribute four Input Cost Trends report.
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OUT-REACH, IN-REACH AND CONFERENCES
•
FOCUS
– To send staff to training programmes locally and internationally.
– To promote collaboration between experienced researchers within partner
academic institutions and the NAMC.
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MEASURABLE OBJECTIVE
– To award bursaries to deserving staff members or targeted future employees on
research pertaining to the marketing and trade of agricultural products.
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PERFORMANCE INDICATOR
– Regular collaborations between staff and other researchers in academia through
collaborative research programmes (establish at least three such programmes).
– Regular attendance at local and international training programmes by staff (at
least two staff should attend training programmes relevant to marketing and
trade).
– Award at least three bursaries per annum.
– Regular interactive seminars within NAMC (at least two seminars per month).
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STATUTORY MEASURES
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WHAT WE EXPECT FROM INDUSTRY
PARTNERS
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Fairness to all producer segments
Responsiveness to industry challenges
Focus on long term strategic planning
Good financial management
Education sessions for all trustees on roles and responsibilities
Clear communication strategy with grassroots
Succession planning (empowerment)
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STATUTORY MEASURE INVESTIGATIONS
• Focus
– Investigate and recommend for approval any of the five statutory
measures, namely statutory levies, records and returns, registration,
control of exports of agricultural products and conducting of pools as
provided for in the MAP Act.
• Strategic goal
– To provide the Minister with recommendations regarding the approval
or disapproval of a statutory measure.
– To promulgate statutory measures in the relevant agricultural sectors in
order to improve their operations.
• Strategic Outcome
– Undertake 9 statutory measures investigations.
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AGRICULTURAL TRUSTS
• Focus area:
– The NAMC facilitates the appointment of Ministerial Trustees in agricultural
trusts. Agricultural trusts were entrusted with safeguarding and utilizing former
control boards assets to the benefit of the whole industry.
• Strategic goal:
– To facilitate the process to appoint ministerial trustees.
– To influence trusts to bring transformation to the heart of their activities.
• Strategic outcomes:
– We expect:
• Bursary schemes to support black students
• Funding for schemes aimed at increasing market access
• Export promotion schemes for black producers
• Mentorship projects
• Schemes aimed at reducing the transaction cost of doing business with
black farmers
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MAIZE BOARD SCHEME
• Focus area:
– The NAMC was tasked with the responsibility of advising
the Minister of Agriculture on the closure of all control
boards and transfer assets to trusts.
– The only remaining scheme is the Maize Board Scheme.
• Strategic goal:
– To finalize all outstanding Maize Board cases before 31
July 2008.
• Strategic outcomes:
– To prevent a further extension of the Maize Marketing
Scheme.
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CROP ESTIMATES LIAISON COMMITTEE
• Focus
– The NAMC was mandated to establish a Crop Estimates Liaison
Committee (CELC) to formally monitor the crop estimation process in
South Africa. The CELC has the following focus areas:
• Establishment of a completely independent and objective committee free
of commercial bias;
• Delivery of accurate, timely and credible crop estimate;
• Monitoring the performance of the CELC.
• Strategic goal:
– Provide leadership required to improve the acceptance of crop
estimates within industry in general.
• Strategic outcomes:
– Hold three (3) CELC meetings per annum - May, October and
November.
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AGRIBUSINESS DEVELOPMENT
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DEVELOPMENT SCHEMES
• Strategic goal:
– To increase market access for the emerging producers.
• Focus:
– Capitalise and facilitate implementation of development
schemes that will integrate emerging producers into the
commercial mainstream.
• Strategic outcome:
– Oversee the rollout of the Grain Development Scheme and
the General Development Scheme.
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FARMER BUSINESS SUPPORT MODELS
• Strategic goal:
– To design and implement demand led projects in collaboration with
DoA that will link black producers in the fruit industry to retailers.
• Focus:
– To link black agribusinesses to market either as an individual
agribusiness or as a project involving more than one agribusiness.
• Strategic outcome:
– Identify, design and implement four such projects.
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PROMOTIONS
• Focus:
– To expose black owned agribusinesses to international markets and
procurement requirements of those markets by
• supporting the agribusinesses to attend international and local trade shows
in collaboration with industries and other agencies.
• Strategic goal:
– To identify export-ready agribusinesses and support them with
exporting their produce.
• Strategic outcome:
– Support fifteen agribusinesses to attend international trade shows;
– Support fifteen agribusinesses to attend local shows and interact with
buyers.
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RE-ALIGNMENT OF LEVY ADMINISTRATORS
• Focus:
– To assist Levy Administrators in developing and implementing best
practices on transformation.
• Strategic goal:
– To assist levy collecting industries in integrating NAMC
transformation guidelines into their daily operations.
• Strategic outcome:
– One (1) report on the status of statutory levies collected in terms of the
MAP Act.
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TRAINING
• Strategic goal:
– To capacitate black agribusiness through marketing and
management training courses.
• Focus:
– Host training courses in collaboration with universities and
industries that will improve the technical and managerial
skills of agribusinesses.
• Strategic outcome:
– Three Courses for the next financial year
• Making Markets Matter Course - 50 agribusiness
• Agribiz Matter Course - 30 women owned agribusiness
• Market Access for Exporters - 5 agribusiness
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CORPORATE SERVICES
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• Focus:
FINANCE
– To provide effective, efficient financial and accounting management systems
and services for the NAMC. The division provides the Council with corporate
governance structures, namely:
• Council
• Audit and Risk Committee
• HR and Remunerations Committee
• Strategic goal:
– To implement effective, efficient and transparent financial management and
internal control systems in compliance with the PFM Act, 1999, and Treasury
Regulations.
• Strategic outcomes:
– Produce monthly and annual audited financial statements.
– Provide support to the Council & HR, at least four times a year.
– Provide support to the Audit Committee, which meets six times a year.
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BUDGET
PROGRAMMES
INCOME
2008/09
2009/101
2010/11
Grant & transfers (MTEF)
22,459,000
23,722,000
25,056,000
Interest Earned
300,000
315,000
330,000
TOTAL INCOME
22,759,000
24,037,000
25,386,000
EXPENDITURE
2008/09
2009/10
2010/11
Compensation of Employees
10,847,000
11,624,000
12,412,000
Goods and Services-Standard Items
4,593,001
4,785,000
4,996,001
Operational Expenditure
7,319,000
7,628,000
7,929,000
Assets
285,000
285,000
270,000
TOTAL EXPENDITURE
22,759,000
24,037,000
25,386,000
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HUMAN RESOURCES MANAGEMENT
• Focus:
– Focus on corporate staffing, learning, renewal, succession/talent management,
incentives and monitoring and evaluating compliance with the Equity
Employment Plan for the NAMC.
• Strategic goal:
– To achieve effective human resource management and development within the
NAMC.
• Strategic outcomes:
– Have three performance assessments for each staff member per annum.
– Arrange one corporate governance course for all ten Council members.
– Hold one training session with all staff members on staff evaluation and the
differentiation policy (NAMC performance incentive policy).
– Arrange for ten staff members to participate in formal and informal training
courses each year.
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COMMUNICATIONS
• Focus:
– To implement a communication strategy that will include advertorials in
different agricultural magazines and newspapers as well as slots on radio
stations, especially community stations.
• Strategic goal:
– To ensure proper communication of the NAMC programmes and activities to
all directly affected groups.
• Strategic outcomes:
– Release quarterly four price trends
– Three media briefings to communicate NAMC programmes
– Manage the dissemination of NAMC corporate information to functions such
as AEASA, and other NAMC marketing training courses.
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THANK YOU
National Agricultural Marketing Council