2013/2014 NAMC ANNUAL
OPERATIONAL PLAN
Presented By;
Mrs. N Msimang (Chairperson)
Mr. TR Ramabulana (CEO)
Mrs. S Muvhulawa (CFO)
Vision
Mission
Legislative
Objectives
Council
Council
Committees
Divisions
Key priorities for DAFF



Ensuing the food security for all is improved
Supporting CASP/ Ilima Letsema project to succeed
Coordinating SIP 11
Supporting the livestock improvement programme



Development of SMME
Supporting all female farmers of the years
Market access through various schemes
Supporting existing and new irrigations schemes

National Development Plan
(NDP)
Aims to eliminate poverty and reduce inequality by 2030.
Agriculture has the potential to increase rural economic activity.
This can be achieved through:
Expansion of irrigated agriculture
Convert some under-used land in communal areas
and land reform projects into commercial
production
Pick and support commercial agriculture sectors and
regions that have the highest potential for growth
and employment
Support job creation upstream and downstream
industries
Develop strategies that give new entrants access to
product value-chains and support from better
resourced players.
Other realities
- High levels of dept in primary agriculture
- A new sectoral determination that has eroded
profitability
- High input and other administrative costs eroding
profitability
- An increase in the use of NTB to limit export of South
Africa products, especially into Europe)
Our Targets
HR Objectives
• Organisation structure review
• Organisational performance system adhered to by line managers PMDS
(number of times monitored)
• Recruitment
• Work place skills development budget utilised
• Labour relations support requested versus provided
• Wellness sessions conducted
• Compliance to human resource regulatory frameworks
• Employee satisfaction ratings conducted
• Employee satisfaction improvement plan facilitated
Employment
Equity
Risks Identified

-
The following risks were identified and mitigations strategies developed
for each:
Appointment of unskilled, incompetent, inexperienced Ministerial
Trustees.
Failure to effectively deliver strategic plan.
Non-Compliance (MAP Act)
Lack of Funding of Schemes/Project and Farmer Development
Little or no communication between the Farmers and the NAMC.
Inadequate information and communication technology ("ICT") support.
Inefficient Bid Process including selection of service providers.
Abuse of NAMC Resources
••••••••••••••••••
Statutory Measures
• The MAP Act provides for the following statutory
measures:
–
–
–
–
Levies
Records and returns
Control of exports (currently not being used)
Registrations
• Register of Directly Affected Groups – section 20
• Appointment of inspectors – section 21
17
 22 Industries Assisted
 Over R1.4 billion was collected by industries
 Levy Funds used for the following;





Support for efforts in markets development and penetration
Export promotion research
Provision of reliable information
Transformation
Targeting two provinces, employment projection to 400
In this financial year, we will help
industries collect cover R400 million
Functions Financed Through Statutory Levies Past Four Years
• Total statutory levy expenditure – R1.2 billion
• Functions
– Export market development – R142 million
– Local consumer education – R134 million
– Research – R354 million
– Information – R131 million
– Transformation – R259 million
19
Summary of statutory measures applicable in South Africa
2012
INDUSTRY
Administrating body
Statutory Measures
Levy
Registration
Records &
Returns
Citrus (export only)
Citrus Growers Association



Cotton
Cotton SA



Dairy
Milk SA



Deciduous fruit (pome &
stone)
HORTGRO Services



Dried fruit
Dried Fruit Technical Services



Fynbos (proteas)
HORTGRO Services



Grains (Maize, Oilseeds,
Sorghum, and Winter Cereals)
The South African Grains and
Information Services (SAGIS)


Lucerne
Lucerne Seed Organisation



Mangoes
Subtrop



Milk
Milk Producers’ Organisation


Mohair
Mohair SA


Olives
SA Olive



Pecan nuts
SA Pecan Producers’ Association



Pork
SA Pork Producers’ Organisation



Potatoes
Potatoes SA



Summary of statutory measures applicable in South
Africa (cont...)
INDUSTRY
Administrating body
Statutory Measures
Levy
Registration
Records &
Returns
Poultry and eggs
Southern African Poultry
Association



Red meat
Red Meat Levy Admin



Sorghum
Sorghum Trust

Table Grapes exported
SA Table Grape Industry



Wine
SAWIS, WIDA, Winetech and
WOSA



Winter Cereals
Winter Cereal Trust



Wool
Cape Wools SA


Levies collected per commodity - 2012
Product
Citrus (exported)
Total value at first
point of sale
Levy income
R
R
Levy income as %
of the value of
the product %
Levy collection
rate
%
5 000 000 000
43 724 911
0.87
99
92 000 000
1 683 411
1.83
114
Dairy products
8 378 627 222
29 292 893
0.35
96
Deciduous fruit
1 476 879 891
49 709 574
3.37
96
Dried fruit
478 842 000
1 891 342
0.39
97
Mangoes
65 589 060
1 093 151
1.67
85
Pork
3 063 400 000
16 774 658
0.55
104
Potatoes
5 746 720 817
24 557 928
0.43
103
Poultry and eggs
3 596 000 000
26 797 820
0.75
99
Red meat
18 946 000 000
21 592 522
0.11
113
Sorghum
215 000 000
1 672 287
0.78
69
Table grapes
2 945 298 984
17 462 504
0.60
97
Wine
3 619 400 000
65 840 238
1.82
98
Winter cereal
3 733 929 000
39 587 939
1.06
87
57 357 686 974
341 681 178
0.60
Cotton lint
TOTAL
22
Export promotion (market
development) – expenditure in 2012
Commodity
Amount
Citrus
2 823 336
Deciduous fruit
19 992 156
Table grapes
1 957 254
Wine
26 140 411
Total
50 913 157
Target markets
Citrus
Deciduous fruit
Table grapes
Wine
UK, EU, USA, Russia, Middle East and Far East
EU, Middle and Far East
EU, USA, Japan, China
UK, Germany, Sweden, Russia but also in USA, Canada, key African
countries such as Angola and Nigeria, as well as China and Japan
23
Research – expenditure in 2012
Commodity
Citrus
Cotton
Dairy
Deciduous fruit
Dried fruit
Amount
19 305 822
50 000
1 484 728
17 707 986
1 967 465
Mangoes
408 000
Pork
488 515
Potatoes
Poultry
6 225 277
911 306
Red meat
1 445 926
Sorghum
963 643
Table grapes
9 077 108
Wine
4 924 403
Winter cereals
26 851 129
TOTAL
91 811 308
24
Information – expenditure in 2012
Commodity
Amount
Citrus
2 371 685
Cotton
3 137 680
Dairy
1 964 690
Deciduous fruit
2 979 830
Dried fruit
471 581
Pork
1 614 033
Potatoes
5 633 035
Poultry
2 839 750
Red meat
927 439
Sorghum
262 921
Table grapes
2 119 820
Wine
7 470 482
Winter cereals
2 427 213
TOTAL
34 220 159
25
••••••••••••••••
Objectives of development schemes is to secure markets for small
holder farmers.
Vinegar Scheme
Over the past 4 years, the scheme
180 ha of vine grapes planted
Additional 300 ha to be planted over next 2 years
Maize & Sunflower Scheme
Over the past 2 years, the scheme
 Assisted 120 Farmers
 Planted over 9000 ha in North West Province
Livestock Scheme
 Over the past 4 years, the scheme
Assisted farmers so far to sell over 6640 animals in Eastern Cape generating
over R42 million in income
Trained over 2200 livestock farmers in marketing of livestock
Scheme further procured over 48 tons of animal feed from small businesses
in the Eastern Cape for a value of R16 million.
 R16 Million of roll over funds from the dairy
industry statutory levies was Ring-fenced to support
small diary farmers in the Free State Province
 Support being provided includes; supply of diary
animals, diary equipment, market access
 Target is to reach 10 black owned diaries and
ensure that they are in a position to compete
Objective is to integrate small agro-businesses into regional supply chains,
increase market access and income earnings
Past 2 Years
 Implemented the programme with ITC
Assisted stone and fruit farmers in Ceres and Grabouw to comply with
food safety requirements & increase linkages with exporters as well local
supermarkets
2012
 Agreement signed with Western Cape Agriculture in order to increase
the project in the province
 Engagement with other provincial departments with a view of
expansion
Agricultural Colleges
Collaborate with FET colleges and Agricultural colleges in rendering these services
to the small holder producers
Target: 200 farmers to capacitate during this financial year & 4 training programmes
facilitated
Management Training for Women Entrepreneurs
Marketing & financial managerial training course for women
entrepreneurs involved in agriculture
Max of 40 women entrepreneurs from all the province will participate
Making Market Matters Workshop
Intensive multi-day business development training workshop for African
agribusinesses,
Max of 70 agribusinesses from the African continent will participate in this
programme
Facilitates by Making Market Matter Inc from Cornell University.
••••••••••••••••••
Strategic Integrated Projects 11
• NAMC was tasked with the responsibility of coordinating SIP 11
(agriculture) on behalf of the DAFF.
• DAFF initiated and managed Infrastructure Investment projects are clearly
captured and managed through the SIP process
• Currently engaging with Private Sector identify and priority investment
projects that should be implemented in partnership with government
• Criteria used for selection & prioritization of projects includes:
– Sector Growth & Job Creation
– Food Security
– Broad Based Black Economic Empowerment
– Private Sector Investment
AgriBEE Threshold Study
• The NAMC is assisting DAFF to conduct the AgriBEE Threshold
Study to review the appropriate threshold for the Exempted
Micro Enterprises (EME) and Qualifying Small Enterprises
(QSE) in the Sector.
• The report will assist the AgriBEE charter Council in deciding
how the implement the AgriBEE Charter.
• Charter Council is due at the end of May 2013.
Section 7 Committee on contract farming
The objectives:
•Investigate the scope and nature of typical supplier contracts and remedial actions used
to address instances where contracts are dishonored;
•To determine whether a new approach is required to improve the relationship between
contracting parties.
What are the issues
•Some contracts do not state clearly how disputes are handled and in most cases big
agri-business have prerogative to terminate the contract – unequal contracting power.
•Weak organisational and government support in negotiating contracts .
Consultation process and project status
•Various stakeholders including farmers, retailers and processors were consulted.
•Currently two workshops have been arranged, one in the Western Cape (16th April
2013) and the other in Limpopo province (23rd April 2013)
Supply & Demand Estimates Committee
• To provide official Supply and Demand Estimate figures on the
following grains: Yellow maize, White maize, Sorghum,
Soybeans, Wheat.
• The information will assist the country by
– Improving transparency and efficiency in the market
• The NAMC act as custodian for this committee and will
release the figures on estimates which will include import,
export consumption and production figures of the above
grains.
• The committee consist of experts on the above field and need
to be objective and have no conflict of interest.
• Expect the first official figures to be released in June 2013.
Agro Food Chain
• Agro food chain focus area analyses various chains in order to
• We are investigating the following value chains in the current
reporting period:
• Wheat value chain,
• Food system study (value chain studies) with emphasize on the
poultry meat (Broilers & culls), poultry feed, soybeans & yellow
maize.
• Animal feeds
• AFC plays an prominent role in global Agri-benchmark initiative.
– Member of the international grains, livestock and fruit agri-benchmark
networks
– Roll-out local networks on grains and livestock (small and large
livestock)
Knowledge management
• The NAMC is responsible for the following publication:
–
–
–
–
–
Food Cost Review (Annual),
Food Price Monitors (4 x Quarterly),
Input Cost Monitors (4 x Quarterly),
TradeProbe (6 per annum),
Fruit Trade Flow Reports (4 per annum).
• The reports helps industry, government and general public:
– Understand the impact o food inflation on different population groups in
both urban and rural areas
– Understand the effect of fertilizers and other costs drivers on various chain
– Highlight export market opportunities for South African products
– Understand the flow of South African fruit and therefore identify
opportunities for increased market penetration
••••••••••••••••••••••••••••••••••
MTEF Budget 2013/14 -2015/16
The NAMC has received MTEF budget allocation letter for the period 2013/14 -2015/16
from DAFF. The budget allocations are as follows:
2013/14:
2014/15:
2015/16:
R 33 819 000
R 36 005 000
R 37 912 000
This resulted in the following percentage fluctuation for the period:
From 2012/13 – 2013/14:
From 2013/14 – 2014/15:
From 2014/15 – 2015/16:
5.3% increase
6.5% increase
5.3% increase.
Additional funding of R724,000.00 R972,000.00 and R1,267,000.00 for the MTEF period
2013/14- 2015/16, has been received for improvement in the conditions of service, this
amount was allocated to the personnel budget.
39
BUDGET: SUMMARY OF INCOME
INCOME
2012/13
2013/14
2014/15
2015/16
R’000
R’000
R’000
R’000
31 409
33 819
36 005
37 912
Interest Earned
700
850
900
954
TOTAL INCOME
32 109
34 669
36 905
38 866
Grant & transfers (MTEF)
40
Budget Allocation per Programme for MTEF period
2013/14 – 2015/16 and Previous year 2012/13
2012/13
R’000
2013/14
R’000
2014/15
R’000
2015/16
R’000
7 049
8 496
8 976
9 075
3 130
3 343
3 543
3 751
1 877
2 027
2 148
2 275
2 921
3 114
3 301
3 490
1 624
1 447
1 534
1 625
1 695
724
972
1 267
9 231
9 941
10 538
11 153
3 298
3 366
3 550
3 757
1 284
32 109
1 361
33 819
1 443
36 005
1 519
37 912
Division:
Finance & Administration
Human Resources
Statutory Measures
Agribusiness Development
Agricultural Trusts
National Red Meat
Development Project
MERC
Office of the CEO
Council & Audit & Risk
Committee
Total
2012/13 BUDGET vs 2013/14 PER
STANDARD ITEMS
Expenditure
categories
Personnel
MTEF Budget
2012/13
R’000
MTEF budget
2013/14
R’000
Increase/(Decrease)
% Change
R’000
19 436
20 721
1 285
7%
Administration
6 835
7 680
845
12%
Professional
services
5 516
5 076
-440
-8%
322
341
19
6%
32 109
33 819
1 709
5%
Assets
Total
COMMENTS
••••••••••••••••••••••••••••••••••