1 epor 20192020 - the agricultural research council is a

Annual Report 2019/20201

Annual Report 2019/2020 2

TABLE OF CONTENTSPART A: GENERAL INFORMATION 1. GENERAL INFORMATION .............................................................................................................................................. 2. LIST OF ABBREVIATIONS/ACRONYMS ....................................................................................................................... 3. ARC 2019/20 COUNCIL MEMBERS ...........................................................................................................................4. ARC 2019/20 EXECUTIVE MANAGEMENT ...............................................................................................................5. FOREWORD BY THE CHAIRPERSON .......................................................................................................................... 6. CHIEF EXECUTIVE OFFICER’S OVERVIEW .................................................................................................................7. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ..............8. STRATEGIC OVERVIEW ............................................................................................................................................... 9. LEGISLATIVE AND OTHER MANDATES ....................................................................................................................... 10. ORGANISATIONAL STRUCTURE .................................................................................................................................

PART B: PERFORMANCE INFORMATION 1. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES ............................................................................................. 2. SITUATIONAL ANALYSIS ...............................................................................................................................................

2.1. Service Delivery Environment ............................................................................................................... 2.2. Organisational environment .................................................................................................................. 2.3. Key Policy Developments and Legislative Changes ............................................................................. 2.4. Strategic Outcome-Oriented Goals .......................................................................................................

3. PERFORMANCE INFORMATION BY PROGRAMME 3.1. Programme1: Crop Production, Improvement and Protection Programme .......................................... 3.2. Programme2: Animal Health, Production and Improvement Programme ............................................. 3.3. Programme 3: Natural Resources Management Programme ............................................................... 3.4. Programme 4: Mechanisation and Engineering Programme ................................................................ 3.5. Programme 5: Agro-Processing, Food Technology and Safety ............................................................. 3.6. Programme 6: Smallholder Agricultural Development Programme ...................................................... 3.7. Programme 7: Agricultural Economics and Commercialisation Programme ........................................ 3.8. Programme 8: Training and Extension Programme .............................................................................. 3.9. Programme9:AdministrationandCorporateAffairsProgramme........................................................3.10 Research Highlights ..............................................................................................................................

PART C: HUMAN RESOURCES MANAGEMENT 1. INTRODUCTION .............................................................................................................................................................2. HUMAN RESOURCES OVERSIGHT STATISTICS ........................................................................................................ PART D: GOVERNANCE 1. INTRODUCTION ............................................................................................................................................................. 2. PORTFOLIO COMMITTEES ........................................................................................................................................... 3. EXECUTIVE AUTHORITY .............................................................................................................................................. 4. THE ACCOUNTING AUTHORITY/BOARD .................................................................................................................... 5. RISK MANAGEMENT ..................................................................................................................................................... 6. INTERNAL CONTROL UNIT ........................................................................................................................................... 7. INTERNAL AUDIT AND AUDIT COMMITTEES ............................................................................................................. 8. COMPLIANCE WITH LAWS AND REGULATIONS ........................................................................................................ 9. FRAUD AND CORRUPTION .......................................................................................................................................... 10. MINIMISING CONFLICT OF INTEREST ........................................................................................................................ 11. CODE OF CONDUCT ..................................................................................................................................................... 12. HEALTH, SAFETY AND ENVIRONMENTAL ISSUES .....................................................................................................13. COMPANY/BOARD SECRETARY ................................................................................................................................... 14. SOCIAL RESPONSIBILITY ............................................................................................................................................. 15. AUDIT COMMITTEE REPORT ....................................................................................................................................... 16. B-BBEE COMPLIANCE PERFORMANCE INFORMATION ............................................................................................ PART E: FINANCIAL INFORMATION 1. REVENUE COLLECTION ...............................................................................................................................................2. REPORT OF THE EXTERNAL AUDITOR ....................................................................................................................... 3. ANNUAL FINANCIAL STATEMENTS ...............................................................................................................................

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283133343638394142

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152152152153156156156157158158158159160160 162

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166 169 175


PART A: GENERAL INFORMATION

1. General Information

2. List Of Abbreviations/Acronyms

3. Arc 2019/20 Board Members

4. Arc 2019/20 Executive Management

5. Foreword By The Chairperson

6. Chief Executive Officer’s Overview

7. Statement Of Responsibility And Confirmation

Of Accuracy For The Annual Report

8. Strategic Overview

9. Legislative And Other Mandates

10. Organisational Structure


REGISTERED NAME: Agricultural Research Council

REGISTRATION NUMBER: Agricultural Research Act 86 of 1990 (as amended)

PHYSICAL ADDRESS: 1134ParkStreet,Hatfield,0001

POSTAL ADDRESS: PO Box 8783, Pretoria, 0001

TELEPHONE NUMBER: +27 12 427 9700

FAX NUMBER: +27 12 430 5814

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.arc.agric.za

EXTERNAL AUDITORS: Auditor-General of South Africa

BANKERS: Standard Bank

COMPANY/BOARD SECRETARY: Ayanda Ndamase

2. LIST OF ABBREVIATIONS/ACRONYMS

4IR Fourth Industrial Revolution AATF African Agricultural Technology Foundation AD Anaerobic DigestionAESA Agricultural Economics Association of South AfricaAGSA Auditor-General of South AfricaAHSV African Horse Sickness Virus AR Annual Report ARC Agricultural Research Council ASBVd Avocado Sunblotch ViroidB-BBEE Broad-Based Black Economic EmpowermentBBTV Banana Bunchy Top VirusBGP Beef Genomics Programme BMGF Bill & Melinda Gates Foundation BRICS Brazil, Russia, India, China and South AfricaBW Bacterial WiltCA Conservation AgricultureCARA Conservation of Agricultural Resources ActCCARDESA Centre for Coordination of Agricultural Research and Development for Southern Africa CEOChiefExecutiveOfficerCFOChiefFinancialOfficerCIMMYT International Maize and Wheat Improvement CenterCMI Cell-Mediated Immunity CREA Council for Agricultural Research and Economics

CSA Climate Smart Agriculture

CSIRCouncilforScientificandIndustrialResearch

1. GENERAL INFORMATION


DALRRDDEADEFFDLDDDPMEDSIDTICEBEBPECSPEMCEPsEPF ERMESDEUFAOFARAFAWFCMFHBFMDFSRG4AWGACGAPGDARDGDPGIZGPSHGBFHSRCIAIAPICARICTIDRCIGRIWEIIAIKSIMFIPIPAPIPGRIRMKyDLSDM&EMINMECMIF-PAMISSMLNDMoA/UMPSSMTBPSMTEFMTOMTSFMVNAMCNAMPO NARIS

Department of Agriculture, Land Reform and Rural DevelopmentDepartmentofEnvironmentalAffairsDepartment of Environment, Forestry and FisheriesDesertification,LandDegradationandDroughtDepartment of Planning, Monitoring and Evaluation Department of Science and Innovation Department of Trade, Industry and CompetitionElementary BodiesExtension Big-FiveEconomic Competitiveness Support ProgrammeExecutive Management Committee Extension Practitioners Entomopathogenic FungiEnvironmental Resources Management Enterprise Supplier DevelopmentEuropean Union Food and Agricultural OrganizationForum for Agricultural Research in AfricaFall Armyworm False Codling Moth Fusarium Head BlightFoot-and-mouth DiseaseFarming System Research Geodata for Agriculture and Water GlobalAffairsCanadaGauteng Accelerator Programme Gauteng Department of Agriculture and Rural Development Gross Domestic ProductGerman Development Cooperation Global Positioning System HowardGrahamBuffetFoundationHuman Sciences Research Council Internal AuditInvasive Alien Plants International Committee on Animal RecordingInformation and Communication TechnologyInternational Development Research Centre Intergovernmental RelationsInstitute for Water EducationInstitute of Internal AuditorsIndigenous Knowledge System International Monetary FundIntellectual Property Industrial Policy Action PlanInstitute of Plant Genetic ResourcesInsect Resistance Management Kaonafatso ya DikgomoLumpy Skin DiseaseMonitoring and EvaluationMinisters and Members of Executive CouncilMakonde Indigenous Fruit Processing AssociationMinimum Information Security Standards Maize Lethal Necrosis DiseaseMemorandum of Agreement/UnderstandingMinimum Physical Security StandardMedium-Term Budget Policy StatementMedium-Term Expenditure FrameworkMountain To Ocean Medium-Term Strategic FrameworkMilitary VeteranNational Agricultural Marketing CouncilSouth African Agricultural Trade Show National Animal Recording and Improvement Scheme


NCEPNCFADNDP NEHAWUNEMANGOsNGPNIRNPPNRCSNRFNSDFNSONSW NUPSAWOBPOIEPBMCPDPPFMAPLASPOMASAPSAPwD(s)QTLR&DR4ARBRDIRVFRMRDSAROIRTUSADCSAFCOLSAMRCSATISAWSSCMSDGSEACFSEDASHFSMARTSMMESOCSPCASPISTEMITIATMVTRVUAVUKUNUNCCDUNDPUSAIDUSDA-ARSVCVIDO-InterVacWEMAWRCWUR

National Cultivar Evaluation ProgrammeCanadian National Centre for Foreign Animal Diseases National Development PlanNational Education, Health and Allied Workers’ Union National Environmental Management ActNon-Governmental Organisations New Growth PathNear InfraredNet Primary Productivity NationalRegulatorforCompulsorySpecificationsNational Research FoundationNational Spatial Development Framework NetherlandsSpaceOfficeNational Science Week National Union of Public Service and Allied workers Onderstepoort Biological Products World Organisation for Animal Health Peripheral Blood Mononuclear CellsProfessional Development Programme Public Finance Management ActPro-Active Land Acquisition Strategy Pomegranate Association of South Africa Potatoes South Africa People with Disability/iesQualitative Trait LociResearch and Development Rain for AfricaReticulate Bodies Research, Development and InnovationRift Valley FeverRed Meat Research Development of South Africa Return on InvestmentReal Time Ultrasound Southern African Development Community South African Forestry Company LimitedSouth African Medical Research CouncilSouth African Table Grape Industry South African Weather Service Supply Chain ManagementSustainable Development GoalSouthern and Eastern African Cotton ForumSmall Enterprise Development Agency Smallholder FarmingSpecificMeasurableAchievableRealisticandTime-boundSmall, Medium and Micro EnterpriseSoil Organic Carbon Society for the Prevention of Cruelty to Animals Standard Precipitation IndexScience, Technology, Engineering, Mathematics and Innovation Technology Innovation Agency Tobacco Mosaic Virus Tobacco Rattle Virus Unmanned Aerial Vehicle United KingdomUnited NationsUnitedNationsConventiontoCombatDesertificationUnited Nations Development Programme United States Agency for International Development United States Department of Agriculture - Agricultural Research ServiceValue ChainCanadian Vaccine and Infectious Diseases OrganisationWaterEfficientMaizeforAfricaWater Research CommissionWageningen University & Research


3. ARC 2019/20 COUNCIL MEMBERS

Prof Sibusiso Vil-Nkomo

Chairperson *

Dr Joyce Chitja

Deputy Chairperson *

Dr Shadrack Moephuli

CEO & President

Dr Saskia van Oosterhout

Member #

Adv. Edwin Mphahlele Member *

Mr Sipho MthombeniMember *

Dr Moraka MakhuraMember *

Prof Phatu MashelaMember #

Ms Joyce MashitengMember *

Mr Allan BishopMember *

Mr Michael BrinkhuisMember *

Dr Mokgadi Ngoepe-Ntsoane

Member *

Mr Mlulami Mahanjana Member *

Mr Andrew Makenete Member *

Dr Aldo StroebelMember *

* 1 April 2017 until 30 June 2020

# 1 April 2017 until 30 June 2020 (Re-appointed to new Council on 1st July 2020)

Dr Mnqobi NgidiMember *

Ms Bongiwe KaliMember *


4. ARC 2019/20 EXECUTIVE MANAGEMENT

Dr Shadrack MoephuliPresident and CEO

Ms Maureen ManyamaChief Financial Officer

(CFO)

Ms Makgomo UmlawGroup Executive: Human

Resources and Legal Services

Dr Andrew MagadlelaGroup Executive: Animal Sciences

Dr Thulasizwe MkhabelaGroup Executive: Impact & Partnerships

Dr Nthabiseng MoteteGroup Executive: Crop Sciences

Dr Tebogo SethibeGroup Executive: Information Systems


On behalf of the Management Team and Council (Board), it gives me pleasure to present the Annual Report for the Agricultural Research Council(ARC)forthefinancialyear1April2019to31March2020.ThisAnnual Report is presented in terms of the Agricultural Research Act, 1990 (Act 86 of 1990 as amended by Act 27 of 2001) and the Public Finance Management Act, 1999 (Act 1 of 1999, as amended by Act 29 of 1999).

Further, this Annual Report provides information and data on the organ-isational performance based on the approved Strategic Plan (2015/16-2019/20), the Business Plan for 2019/20, and progress made on the ac-tion plans that resulted from the Auditor-General reports on the 2016/17 to 2019/20 audit cycles.

Due to the outbreak of Coronavirus that causes COVID-19, the term of Council was extended from 1 April 2020 until 30 June 2020. This resulted in a new Council that assumed responsibility for governance and over-sight on the management and control of the Agricultural Research Coun-cil (ARC) on 1 July 2020. Consequently, the new Council has assumed responsibilityforfinalisationofthisAnnualReport,anunusualcontext.

We hereby acknowledge and appreciate the contributions of the previous Council towards ensuring the ARC remains in pursuitoffulfillingitsmandate,particularlyasaleadingagriculturalresearchanddevelopmentorganisation.

During 2019/2020 the ARC continued to be well governed and managed. The Council carried out its mandate through theproperexercisingofgoodgovernanceandeffectivelycarryingoutthefiduciaryresponsibilitieswhileworkingverywellwith management to ensure appropriate utilisation of public and private resources.

ThescientificendeavoursoftheARCduringthisyearcontinueddespitelimitedresources.

Firstly, the organisation did not shy away from producing cultivars through innovation and contributing to new discover-ies. These cultivars were intended to improve the nourishment of our people, to contribute to stable food supplies in our country and to ensure that agriculture remains sustainable. Let me once more say: “A country that cannot feed its people isabasketcaseandtherefor,besidespoliticalleadership,scientificleadershipbyorganisationsliketheARCremaineda sine qua non”.

Secondly, thisscientificentityalso focusedonvegetablesandornamentalplants research. Its focuswasonfightingdiseases and pests that infect sweet potatoes, green beans, carrots, tomatoes, potatoes and others. Experiments in the ARC laboratories were used to the fullest to combat these potential threats.

Thirdly,theARCfocussedonadvancingfoodproductionfromthescientificperspectiveofconservationagriculture(CA).As succinctly articulated: “The Agricultural Research Council promotes conservation agriculture as the preferred crop-ping system to optimise crop water use, while improving yields and reducing the drought risk.” As observed in the reports management shared with the Council during the year under discussion, the studies on soil protection were fundamental, the education of growers on the use of mulch was promoted and crop rotation was advanced to support CA.

Finally,onthedomesticanimalside,fightingFoot-and-mouthDiseaseremainedachallengefortheARC.Previously,thedevelopment of a vaccine did not receive adequate funding from the shareholder. This year, funding was promised by the Department to build a state-of-the-art facility that will enable the ARC to once more become a leader in the vaccine production locally, continentally and globally in 2021 onwards.

Duringthe2019/2020financialyeartheARCrenovateditswinecellarinStellenbosch,includingconversiontorenewableenergy. Further, the facility was renovated to meet the demands of this millennium, including training of new entrants into winemaking and is being used for testing wines produced in the Western Cape. As Council, we also encouraged the head of the facility to position the cellar as a historic tourist attraction site.

5. FOREWORD BY THE CHAIRPERSON

Ms Joyene Isaacs Chairperson of the ARC Council

(With effect 1 July 2020)


Collaborations remained critical for the ARC. Research work with South African universities continued, global partner-ships were promoted, the private sector was encouraged to participate in the ARC endeavours and small as well as large farmers were also the focus of the ARC. The Council noted that improvements, in particular with the South African private agricultural sector, was a necessity.

Considering the success and challenges of the ARC during this year, a Turnaround Strategy was approved by the Council forimplementationbymanagement.ThisstrategytookintoconsiderationthefinancialstateoftheARC,thepoorcon-dition of the South African economy and that of the world, the threat to South Africa’s sovereignty if agriculture was to collapse,theneedtoproperlymakeuseofthescarcefinancialresources,consolidationandeffectiveutilisationoftheARC campuses and the focus on investing in the human capital that drives the primary research business of the ARC scientificendeavours.Here,managementwasrequestedtomakehardanddifficultchoicesfortheARCtoremainviableinto the future.

The above said were well supported with the recent appointments to the ARC Executive Team who came on board in thepreviousyear.TheseincludeMsMManyama:ChiefFinancialOfficer,DrTMkhabela:GroupExecutive,ImpactandPartnership and Dr T Sethibe: Group Executive, Information Systems. Their contributions in 2019/2020 were invaluable and they strengthen the Executive Team.

In this year, the ARC had to confront a challenge that no one foresaw, COVID-19. The CEO, his team and the Council had to make hard decisions when the country went into Lockdown-5. The Council, Executive Management interactions and all the research operations of the ARC had to be conducted virtually. Thank you and congratulations to the Executive Team for implementing what some refer to as the “New Normal”, wherein which the organisation demonstrated to South Africans and the world that ICT was not an enigma to this society.

I am delighted that the CEO, CFO and Council relentlessly pursued revenue collection from long outstanding debtors as reportedinthefinancialstatementscontainedinthisreport.Thiswouldnothavebeenachievedwithouttheassistanceof Minister Thoko Didiza. We thank her for her strong leadership and wish her the best in the important work assigned to herbythePresidentandthepeopleofSouthAfrica.ThisachievementbodeswellforthefinancialrecoveryoftheARC.

While in 2019/20, the ARC witnessed improvements, there were, however, some exogenous wicked problems. The ARC experienced losses due to a rise in crime. Burglaries, land invasions and other unpalatable criminal activities were expe-riencedonsomeofourcampuses.Asaresult,financialresourcesthatcouldhavebeendedicatedtoresearchactivitieshad to be channelled to securing the ARC facilities. The continued inconsistency in the Tshwane Municipality electricity billingsystemalsocausedsomehavocwiththeARCfinancialplanning.

“To my fellow Council members, you took the 2019/20 task of the ARC with determination. You were forthright and willing to turnaround an ARC that is important for agriculture and its science. I thank you for your steadfastness”, said Professor Sibusiso Vil-Nkomo, former Chairperson of the Council.

To the previous Chair and Council members, we have taken note of the plans to make the ARC resilient, and this ultimate challenge remains for the new Council to continue with renewed vigour and commitment.

_________________________Ms Joyene Isaacs Chairperson of the ARC Council06 October 2020


In accordance with the requirements of the Agricultural Research Act, 1990 (Act No. 86 of 1990 as amended by Act No. 27 of 2001) and the Pub-lic Finance Management Act, 1999 (Act No. 1 of 1999 as amended by Act No. 29 of 1999) we hereby present the Annual Report of the Agricultural ResearchCouncil(ARC)containingtheauditedfinancialstatementsandperformance information for the year ending 31 March 2020.

Further, on behalf of all employees, including management and together with Council, the ARC hereby submits this Annual Report to South Africa’s Parliament, through the Executive Authority, the Minister of Agriculture, Forestry and Fisheries (now called Agriculture, Land Reform and Rural Development): Ms A. Thoko Didiza, MP.

The outputs in this Annual Report were in accordance with the pre- determinedobjectivesthatarecontainedintheBusinessPlanforfinancialyear 2019/20 as approved by Council, and tabled in Parliament by the Executive Authority. Further, this Annual Report provides information on theorganisationalperformanceforthefifthyearofthefive(5)yearStrate-gic Plan for the period 2015/16 to 2019/20.

On behalf of all employees, management hereby express gratitude for oversight, good governance and strategic advice provided by the previous Council (Board), including the Audit and Risk Committee.

Duringthefinancialyear,theARCreceivedsciencepolicyandfinancialsupportfromtheDepartmentofScienceandInnovation.OtherfinancialsupportwasfromtheDepartmentofEnvironmentalAffairs.AllfinancialsupportenabledtheARCtofulfilitsmandateasasciencecouncilandtowardsnaturalresourcemanagement.TheARCexpressesapprecia-tion for the support from these government departments in particular. In addition, the ARC hereby expresses appreciation forfinancialsupportfromvariousotherstakeholders,particularlytheagriculturecommoditytrustsandassociations(lististoolongtomention),forenablingtheorganisationtodevelopanddeliverscientificsolutionssorelyneededbyvariousagriculture enterprises.

In the reporting period the ARC, through research and development, technology transfer and dissemination placed par-ticular focus towards contributing to the achievement of the following national priorities as outlined in the Medium-Term Strategic Framework (MTSF):

• Outcome 4: Decent employment through inclusive economic growth;• Outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all; and• Outcome 10: Protect and enhance our environmental assets and natural resources.

Asexpected,theARC’seffortswerealsoalignedtotheUnitedNationsSustainableDevelopmentGoals(SDGs).

Briefly,theARCachievedgoodperformanceasperstrategicgoalswithlimitedresources,particularlypeople(scientificskills and capacity), ageing infrastructure (buildings and laboratory equipment) and obsolescence of technology, primarily througheffectiveutilizationofpartnerships,collaborationandothercost-savingmeasures.DuetofinancialconstraintsandescalatingcoststheARCcouldnotentirelyfulfilitsmandate.

During the reporting period the ARC continued to invest in skills development through partnerships mainly in the following areas:

• Employee Development: Education and training of employees, mainly through short term courses as well as im-provementsinemployeequalifications;

• Mentorship and Coaching: Introduction of post-retirement mentorship, including partnership with international or-ganisations on a number of projects to improve the skills of junior employees; and

• Professional Development Programme (PDP): A partnership with various universities for the training and educa-tionofpostgraduatestudents inpracticalapplicationsofscientificsolutionsfor theagriculturesector.Thispro-gramme has increased from about 50 students in 2007/08 to more than 200 in 2019/20. During this period, ARC scientists have supervised PDP students, resulting in the granting of postgraduate degrees (MSc and PhD) at a rate of 20 per annum.

6. CHIEF EXECUTIVE OFFICER’S OVERVIEW

Dr Shadrack MoephuliARC President and CEO


Research and innovation are critical elements for enabling sustainable and competitive agriculture enterprises. During the reporting period, the ARC has developed and released crop cultivars to ensure increased yield, productivity, improved quality (nutritional aspect) and resilience to pests, diseases and drought. Examples include the registration of wheat, maize, soybean and fruit cultivars through government authorities. Further, the ARC has continued to provide research services aimed at disseminating data and information about suitability of various cultivars, mainly through National Cul-tivar Evaluation trials.

Livestock production and productivity are an important component of South Africa’s agri-food systems, in particular, as a sourceofproteinthatisessentialforfoodandnutritionsecurityamongthepopulation.Duringthefinancialyear2019/20theARCprovidedtechnicalandscientificsupportto4625smallholderfarmers,mainlythroughKaonafatsoyaDikgomo(KyD), an animal improvement scheme. Participating farmers in the KyD were generally more successful in livestock sales, including higher incomes. Other research services for livestock production included real-time ultrasonic assess-mentforcarcasstraits,beefgenomicsforfeedefficiency,diseasediagnosticsandvaccinedevelopment.

As a key provider of solutions for the management of pests and diseases and the mitigation/adaptation to climate change,anon-functionalARCwouldpresentsignificantthreattofoodandnutritionsecurity,agricultureandeconomicgrowth,peaceandsustainabledevelopment.ItisthereforeessentialtoensureafinanciallyresourcedARCabletofulfilits mandate.

AnalysisoffinancialperformancelinkedtoorganisationalperformanceisherebypresentedinthisAnnualReport.

GENERAL FINANCIAL REVIEW OF THE PUBLIC ENTITY

Figures in Rand Thousands FY2020 FY2019 * VARIANCE (R) * VARIANCE (%)

Financial Performance Overview ____________________________

Revenue from exchange transactionsGovernment Grants

Total Expenditure

Operating SurplusSurplus/(Deficit) for the year

Financial Position Overview ________________________

Current AssetsNon-Current Assets

Current LiabilitiesNon-Current Liabilities

Net Assets

Cash Flows Overview ___________________

Cashflows(net)fromOperatingActivitiesCashflows(net)fromInvestingActivities

Cash balance at the end of the year

379 041978 340

1 277 428

79 952121 995

402 3261 762 632

314 423248 563

1 601 973

258 34888 761

245 936

384 732929 050

1 298 627

15 156-25 473

267 1021 405 543

372 130139 645

1 160 869

71 98263 938

76 348

-5 69149 290

21 199

64 797147 469

135 224357 090

57 708-108 918

441 104

186 36624 823

169 587

-1,5%5,3%

1,6%

427,5%578,9%

50,6%25,4%

15,5%-78,0%

38,0%

258,9%28,0%

222,1%

* (-) Negative variance means unfavourable variance; and (+) positive variance means favourable variance.

Financial Performance

The Total Revenue of the Council for the FY2020 was R1.36 billion which represents an overall 3.3% (R43.6 million) growth.

The revenue from exchange transactions earned for the FY2020 is R379 million which a slight decline of 1.5% as com-paredtotheprioryear.Theperformancewasinfluencedpositivelybytheperformanceofthefollowingrevenuestreamsnamely: Rental of facilities and equipment; Bad debts recovered; Other income; and Interest received (interest received from invested funds).


The performance of the following revenue streams was lower than the previous year’s performance: Sale of goods in agricultural activities; Rendering of services; and Royalty income.

The ARC received a 5.3% growth of the Parliamentary Grant, and has continued to receive funding (conditional grant) towards the Foot-and-mouth Disease (FMD) facility, which has been ring-fenced and invested at the Corporation for Public Deposits (CPD).

SPENDING TRENDS OF THE PUBLIC ENTITY

The total expenditure was R1.28 billion and resulted in a 1.6% (R21.2 million) year-on-year savings.

ThepersonnelcostremainsthesignificantcostdriverwithintheARC,asitconstitutesanaverageof63%ofthetotalexpenditure.Theyear-on-yearsavingsontheemployeecostsareattributabletothedelayedfillingofpositions,whichhas been a conscious decision to minimise the recruitments whilst the organisation is busy with the implementation of the Sustainability and Financial Turnaround Plan (as approved during April 2019). The Employee costs continue to absorb a major portion of the Operational Parliamentary Grant; however, there has been an improvement year-on-year from 98%(FY2018/19)to90%(FY2019/20).Theorganisationhas,duringthe2020financialyearchangeditsfundingforICTequipment from the lease option to outright purchase, which has resulted in year-on-year savings of R10.7 million.

REQUESTS FOR ROLL-OVER OF FUNDS

Section 53(3) of the Public Finance Management Act (PFMA) requires a public entity, which must submit a budget in termsofsection53(1)ofthePFMA,nottobudgetforadeficitandnottoaccumulatesurpluses,unlesspriorwrittenap-proval of the National Treasury has been obtained.

Calculation of Surpluses FY2020

Cash and cash equivalents at the end of the yearAdd: Receivables

245 935 648132 014 635

Less: Current Liabilities

377 950 283-314 422 526

Surplus 63 527 757

The ARC will submit a request to the National Treasury to seek approval for the roll-over of surplus funds of R63.5 million.


SUPPLY CHAIN MANAGEMENT

The ARC has a Supply Chain Management Policy in place, which was approved by the Council. The SCM standard operating procedures as approved by the Executive Management Committee (EMC) are in place. The ARC submitted its Procurement Plan for FY2020 within the prescribed timelines in compliance with Paragraph 3 of National Treasury In-struction 2 of 2016/17. The Procurement Plan had 92 projects with an estimated value of R336.6 million, including Value Added Tax (VAT). Due to various internal challenges, 68 tenders to the value of R223 million were not processed during FY2019/20. There were no unsolicited bid proposals concluded by the ARC during the period under review (FY2019/20).

AUDIT REPORT MATTERS IN THE PREVIOUS YEAR

The ARC had in place an Audit Improvement Plan, which was presented and monitored by the Audit and Risk Commit-tee as well as the Council. Progress on the Audit Improvement Plan was subjected to review by the Internal Audit on a quarterly basis. The ARC prepared the Interim Financial Statements for the period ending 30 September 2019, which were audited by the Auditor-General South Africa (AGSA) with an Interim Management Report issued. The organisation further prepared the Financial Statements for the period ending 29 February 2020, which were subjected to a review byInternalAudit.TheFebruary2020reviewwasaimedatensuringthatallauditfindingsraisedbytheAGSAweread-dressed, initiatives per the AIP were closed, whilst assessing the state of readiness for the FY2019/20 year-end audit.

TheauditqualificationmatterswhichhavebeenaddressedasfollowsduringtheFY2019/20include:

Reference to the Audit Report FY2019 Basis for Qualification Progress or Status

3Asset register includes assets at zero and R1 values, which are still in use. [Residual values and Useful lives]

Accounting records were updated and the Annual Financial Statements for the year ended 31 March 2020 have resolved this matter.

4Assets acquired through non-exchange transactions were not measured at fair val-ue at date of acquisition.


5 Assets under construction could not be au-dited.


6Property, Plant and Equipment overstated duetodifferencesbetweentheaccountingrecordsandfinancialstatements.

Resolved.A100%assetsverificationwasperformedandalllegacybalanceson theFixedAssets registerhavebeenwrittenoff.Assets scrappinganddisposal approved by Council - 06 June 2020.

7

ARC recognized all living resources as in-ventories, and not only the items used for research purposes, as required by GRAP 27 biological assets.

This has been corrected and will be accounted for as Biological Assets, and Property, Plant and Equipment (Bearer Plants). The accounting records were updated based on the valuations reports for the respective farms (Vine-yards and Orchards) as well as the Livestock valuation report. The matter has been resolved.

8 Appropriateness of the accounting for Live-stock as Inventory.

The Accounting policy for biological assets was approved by Council. The change in accounting policy will be accounted for appropriately in the FY2020 AFS.

9 Inventories understated by R4.4 million. Resolved. Inventory count performed at year-end.

10 Unabletoobtainsufficientappropriateauditevidence for other payables (R227 million). Resolved.

11 Unabletoobtainsufficientappropriateauditevidence for payment received in advance. Resolved.

12 Payables from exchange transactions were understated by R6.2 million. Resolved.

13 Unabletoobtainsufficientappropriateauditevidence for trade debtors. Resolved.

14

Unable toobtainsufficientappropriateau-ditevidenceforstaffdebtors,asentitydidnot perform adequate reconciliation of out-standing debtors.

Resolved.

15

The entity did not recognize receivables from exchange transactions as assets and liabilities were offset inappropriately (WIPaccounts).

Resolved.TheuseofWIPaccountshasbeendiscontinuedeffective01April2019.

16 Revenue for rendering of services incor-rectly recognized. Resolved.

17 Revenue from rendering of services was not recorded in the correct period. Resolved.

18 Unabletoobtainsufficientappropriateauditevidence for rendering of services. Resolved.


OUTLOOK/PLANS FOR THE FUTURE TO ADDRESS THE FINANCIAL CHALLENGES

TheARChasdevelopedaSustainabilityandFinancialTurnaroundPlan,whichisaimedatimprovingthefinancialposi-tion of the organisation. The plan was approved towards end of FY2018/19, and implementation is underway. As at 31 March 2020, the ARC was considered solvent as the assets exceeded the liabilities by R1.6 billion. Therefore, based on this assessment, it can be concluded that the ARC is solvent. The liquidity assessment was concluded at year-end, which took into account the impact of COVID-19 on the business. It was concluded that the ARC will continue as a going concern, for the foreseeable future.

IMPACT OF THE COVID-19 PANDEMIC

COVID-19 is an unprecedented challenge for humanity, businesses and the economy at large. At the date of the report, itseffectsaresubjecttosignificantlevelsofuncertainty.InordertofurtheraddresstheinherentuncertaintyembeddedinthecurrentsituationthattheARCandcountryfindthemselvesin,managementhasconsideredthepotentialimpactsonthe organisation by taking a variety of risk elements into account and their impact on forward-looking business prospects as articulated in the MTEF FY2021-FY2023:

• Future revenue pipeline: it is assumed that 40% of the external income is at risk and thus highly unlikely to be achieved. This is estimated at an external income loss of R197 million and R247 million for the 2021 and 2022 financialyears,respectively;

• Impacts on cost structures: the additional costs arising from the COVID-19 pandemic will be prioritized and catered for, within the approved budget. The Operating Costs for FY2021 is estimated to be at 60% of the planned levels due to the delayed spending on core business;

• Impact of the reduction in employee-related costs arising from the implementation of the ARC Financial Sustain-abilityandTurnaroundPlan.Theresultingsavingsisestimatedat15%and30%forthe2021and2022financialyears, respectively; and

• Impactofthenon-paymentfromprivatecustomershasbeenconsiderednotsignificant.

Some of our clients may also face credit-related issues but an assessment of credit risk found that the ARC customer base is unrelated and concentration of credit risk, with respect to trade receivables, is limited.

Despitethepotentiallyconsiderableimpactofthispandemiconthe2021resultsandfinancialposition,theequityoftheARC is strong enough for the foreseeable future to absorb the economic shock caused by COVID-19. The ARC will be able to continue its operations for at least the next twelve months. Therefore, the 2020 Annual Financial Statements have been established on a going-concern basis.

Based on the assessment done, the use of the going-concern assumption is considered appropriate.

EVENTS AFTER THE REPORTING DATE

The ARC has received R60.4 million from the Department of Agriculture, Forestry and Fisheries towards the settlement of its long outstanding debt.

The extended term of Council (Accounting Authority) for ARC expired on 30 June 2020. Therefore, on behalf of the ARC management hereby expresses appreciation for the contribution, good governance and oversight of the previous Council.

As at 1 July 2020 the Minister of Agriculture, Land Reform and Rural Development appointed a new Council (Accounting Authority) for the ARC. All employees and stakeholders of the ARC hereby welcome this appointment and we look for-ward to working with the new Council members.

Management has accepted with disappointment the outcome of the external audit from the Auditor-General of South Af-ricaandresolvedtoimplementimmediatelymeasurestoeliminateadverseauditfindingsfor2020.Thisincludes,amongothers:

• AnAuditImprovementPlantargetedateliminatingrootcausesofadversefindings,includingconsequenceman-agement;

• Review and development of policies, business processes and where necessary, associated delegations of author-ity;

• Review of skills (competencies and appropriate placements), including required training among all relevant per-sonnel;


• Review and implementation of improved Information Technology (IT) systems support, including procurement of new software;

• FurtherimplementationoftheARCFinancialSustainabilityandTurnaroundPlanapprovedbyCouncilduringfi-nancial year 2019/20.

TO OUR CLIENTS AND STAKEHOLDERS

Toourmostvaluedcustomers,partners,beneficiaries,suppliersandstakeholders,we,thepeopleatARC,herebyextendourutmostgratitudeforyoursupportandassistanceduringthefinancialyear.Wetrustandhopeyouwillcontinuetocollaborate with the ARC in various ways to ensure that we meet the expectations and developmental needs of the South African communities.

Management hereby expresses gratitude and appreciation for the dedicated contribution/s of all employees of the Agri-cultural Research Council. It is your contributions that enable the sustainability, competitiveness and growth of the agri-culture sector; which in turn enables food and nutrition security.

Re a leboha, le ka moso

Re a leboga, le kamoso

Re a leboga, le gosasa

Siyabulela, nangamso

Siyabonga, naksasa

Siyathokoza, nangamoso

Ha khensa, aswive tano na mudzuku

Ria livhuwa, khazwiralo na matshelo

Baie dankie

Thank you

___________________Dr Shadrack MoephuliARCPresidentandChiefExecutiveOfficerDate: 06 October 2020


7. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

Tothebestofmyknowledgeandbelief,Iconfirmthefollowing:

• All information and amounts disclosed in the Annual Report are consistent with the Annual Financial Statements audited by the Auditor-General;

• The Annual Report is complete, accurate and is free from any omissions;• The Annual Report has been prepared in accordance with the guidelines for the Annual Report as issued by Na-

tional Treasury;• The Annual Financial Statements (Part E) have been prepared in accordance with the Public Finance Manage-

ment Act (No.1 of 1999, as amended) (PFMA) standards applicable to the public entity;• The accounting authority is responsible for the preparation of the Annual Financial Statements and for the judge-

ments made in this information; • The accounting authority is responsible for establishing, and implementing a system of internal control that has

been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the Human Resources information and the Annual Financial Statements; and

• The external auditors are engaged to express an independent opinion on the Annual Financial Statements.

Inouropinion,theAnnualReportfairlyreflectstheoperations,theperformanceinformation,theHumanResourcesinfor-mationandthefinancialaffairsofthepublicentityforthefinancialyearended31March2020.

Yours faithfully

6 October 2020 ___________________ __________________Dr Shadrack MoephuliChiefExecutiveOfficer Date

6 October 2020___________________ __________________Ms Joyene Isaacs Chairperson of the ARC Council Date


8. STRATEGIC OVERVIEW

8.1. VISION

VISION

Excellence in agricultural research and development.

8.2. MISSION

MISSION

The Agricultural Research Council (ARC) is a premier science institution that conducts research with partners, develops human capital and fosters innovation to support and develop the agriculture sector.

8.3. VALUES

VALUES - “TARGET”

Truth Incorporates honesty and integrity. The ARC shall conduct its business in a trans-parent and ethical way towards its employees, stakeholders and shareholders.

AccountabilityIncorporates responsibility. The ARC shall accept responsibility and accountabil-ity with respect to employee well-being, occupational health and safety (OHS), environmental sustainability and agriculture.

Respect Includes equity, diversity and dignity. The ARC shall conduct its business with respect for our colleagues, clients and stakeholders.

GrowthIncludes equity, rewards and recognition. The ARC shall ensure equity in terms of race, gender, creed, fair treatment, training and development to all its employ-ees, stakeholders and shareholders.

Excellence Incorporates empowerment and innovation. The ARC strives to conduct R&D in anefficient,effective,professionalandaccountablemanner.

TrustIncludes ethics and transparency. We shall ensure and foster trust among our employees, stakeholders and shareholders.


9. LEGISLATIVE AND OTHER MANDATES

TheARCwasestablishedasaPublicEntityon1December1990,underthethenMinistryofAgriculture(nowreconfig-ured as the Ministry of Agriculture, Land Reform and Rural Development).

• The ARC is listed as a Schedule 3A Public Entity in terms of the Public Finance Management Act (No.1 of 1999, as amended) (PFMA), and is required to ensure full compliance with all prescripts and regulations arising from the PFMA.

Specifically,theARCwasestablishedintermsoftheAgriculturalResearchAct(No.86of1990,asamendedbyAct27of 2001), from which it derives its core mandate. The objectives of the ARC outlined in the Act are to conduct research, drive research and development, drive technology development and transfer (dissemination) information, in order to:

• promote agriculture and industry;• contribute to better quality of life;• facilitate/ensure natural resource conservation; and• alleviate poverty.

TheActdefines:• Research as the furtherance, accumulation and improvement of knowledge in the agricultural and related sciences

throughoriginalandotherinvestigationsandmethodsofascientificnaturewiththeadvancementofagricultureas its object;

• Technology Development as activities by which knowledge acquired through research is utilised; and • Technology Transfer - transfer of knowledge, techniques and processes for application thereof.

Further, the Act states that in order to achieve its objectives, the ARC may:

• undertake and promote research, development and technology transfer in connection with:• the optimal utilisation of the agricultural resources and the improvement of the production capacity of such

resources;• the rehabilitation and improvement of the agricultural resources;• the opening of possibilities and the generation of new knowledge to solve particular problems;• the improvement of the nutritional value and quality of agricultural products;• the pollution of the environment and the prevention thereof in respect of agriculture; and• the improvement of existing techniques and the creation of new techniques for the processing of agricultural

products, and to improve the keeping quality of perishable agricultural products;• utilise the technological expertise in its possession and make it generally available;• publish information concerning its objectives and functions, and establish facilities for the collection and dissemi-

nation of information in connection with research and development;• establishandcontrolfacilitiesinthosefieldsofresearch,developmentandtechnologytransferwhichtheCouncil

may from time to time determine;• promote cooperation between the Republic and other countries with regard to research, development and tech-

nology transfer; and• cooperate with persons, institutions and associations undertaking research, development and technology transfer

in other countries.

The ARC performs its functions through several research campuses that are predominantly commodity-based and are strategicallydistributedthroughoutthecountry.Further,researchatthesefacilitiesiscomplementedbyon-fieldexperi-mentalsitesdistributedthroughouteveryprovinceofSouthAfrica.Inaddition,selectedfarmfieldsareutilisedtostudythe performance of ARC research technologies under actual farm production environments.

The Council of the ARC is the Accounting Authority in terms of the PFMA, and provides strategic direction and leadership toenhanceshareholdervalueandensurethelong-termsustainabledevelopmentandgrowthoftheEntity.Infulfillingitsresponsibilities,theCouncilissupportedbytheARCChiefExecutiveOfficerandtheExecutiveandSeniorManagementteam in implementing the approved strategic and corporate plans and policies. The ARC seeks to operate on sound business principles and practices, and to this end, strives at all times to comply with the principles contained in the King Code on Corporate Governance in South Africa (2016) (King IV).


LEGISLATIVE MANDATE

In delivering on its core mandate, the Agricultural Research Council (ARC) is responsible for performing its functions in line with the following key legislation, which thus directly informs the various day-to-day operations of the organisation:

Legislation Objective of the Act ARC Responsibilty

Fertilisers, Farm Feeds, Agricultural Remedies and Stock Remedies Act, 1947 (Act No. 36 of 1947)

The registration of fertilisers, farm feeds, agricultural rem-edies, stock remedies, sterilising plants and pest control operators are regulated by this Act. Provision is also made for control over the acquisition, disposal, sale and use of fertilisers, farm feeds, agricultural remedies and stock rem-edies.

The Directorate Food Safety and Quality Assurance is re-sponsible for the administration of this Act.

ThereisnospecificdelegationfortheARC.However,on assignment, the organisation conducts analytical, testing and advisory services to enable regulatory de-cisions by the Department of Agriculture, Land Reform and Rural Development.

Animal Protection Act, 1962 (Act No. 71 of 1962)

This Act provides for the maintenance of proper standards of hygiene, and in the handling of animals and the preven-tion of cruelty to animals. The SPCA is responsible for the enforcement thereof.

The Directorate Animal Production is responsible for the ad-ministration of this Act.

There is no delegation to ARC. However, the organi-sation has to comply with the requirements of the Act.

Plant Breeders’ Rights Act, 1976 (Act No. 15 of 1976)

This Act regulates the granting of certain rights relating to the new varieties of certain kinds of plants, the protection of such rights and the issue of licences in respect of the exercising of the rights.

The Directorate of Plant Production is responsible for the enforcement thereof.

The ARC provides services to the registrar to enable evaluation of material for granting of Plant Breeders’ Rights in recognition of new varieties. The ARC must comply with the requirements of the Act.

Plant Improvement Act, 1976 (Act No. 53 of 1976)

This Act provides for the registration of establishments where plants and propagation material are sold and packed; fortheintroductionofschemesforthecertificationofcertainpropagation material; for the requirements to which plants and propagation material sold for the purposes of cultiva-tion must conform; and for quality control over plants and propagation material imported or exported.

The Directorate of Plant Production is responsible for the enforcement thereof.

Registered testing laboratories (nematology, mycology, virology, bacteriology - American Foulbrood Disease) provide diagnostic services to government in terms of seed/plant quality (free from pests and pathogens), as well as nurseries and other plant propagation material.

Agricultural Pests Act, 1983 (Act No. 36 of 1983)

This Act introduces measures for the prevention and com-bating of agricultural pests.

The Directorate of Plant Health is responsible for the en-forcement thereof.

ARC serves on the National Steering Committees to ad-dressspecificpestproblems.Responsibilitiesinclude:

• Calibration of aircraft for control of migratory pests;

• Identificationservicesandregisteredtestinglab-oratories;

• The insect quarantine service is rendered through a contract with the DALRRD.

Conservation of Agricul-tural Resources Act, 1983 (Act No. 43 of 1983)

This Act provides for control over the utilisation of natural agricultural resources in order to promote the conservation of soil, water sources and vegetation, and the combating of weeds and invader plants.

The Directorate of Land Use and Soil Management and the Engineering Directorate are responsible for the enforce-ment thereof.

No delegation. Certain aspects of the Act are contained within the mandate of the ARC.

Animal Disease Act, 1984 (Act No. 35 of 1984)

This Act provides for control measures for the prevention of diseases and parasites, and for schemes to promote animal health.

The Directorate of Veterinary Quarantine and Human Health is responsible for the enforcement thereof.

NospecificdelegationintermsoftheAct.However,theARC provides various services (diagnostic and analyt-ical)tofulfiltheaimsoftheAct,includingthroughOIEreference laboratories.

AnimalIdentificationAct,2002 (Act No. 6 of 2002)

Providefortheidentificationofanimalsandprocedurestobefollowedwhenapplyingforanidentificationmark.

The Directorates Animal Production and Veterinary Quar-antine, and Human Health are responsible for the adminis-tration of this Act.

No delegation to ARC. However, certain aspects of an-imal identificationarecontainedintheimplementationof INTERGIS. The INTERGIS is delegated to the ARC.

Intellectual Property Rights from Public-ly-funded Research and Development Act, 2008 (Act No. 51 of 2008),

Seeks to ensure that all publicly-funded research gets in-tellectual property protection for the purposes of commer-cialisation.

It further places an onus on the ARC to establish an Intellec-tualPropertyManagementOffice.

The ARC has established a functional Intellectual Prop-ertyManagementOffice,alongwithassociatedinternalpolicies to ensure compliance to licensing agreements.


Legislation Objective of the Act ARC Responsibilty

GeneticallyModifiedOrganisms Act, 1997 (Act No. 15 of 1997)

To provide measures to promote the responsible develop-ment, production, use and application of genetically modi-fiedorganisms;toensurethatallactivitiesinvolvingtheuseof genetically modified organisms (including importation,production, release and distribution) shall be carried out in such a way as to limit possible harmful consequences to the environment; to give attention to the prevention of acci-dentsandtheeffectivemanagementofwaste;toestablishcommon measures for the evaluation and reduction of the potential risks arising out of activities involving the use of geneticallymodifiedorganisms;tolaydownthenecessaryrequirements and criteria for risk assessments; to establish aCouncilforgeneticallymodifiedorganisms;toensurethatgeneticallymodifiedorganismsareappropriateanddonotpresent a hazard to the environment; and to establish ap-propriateproceduresforthenotificationofspecificactivitiesinvolvingtheuseofgeneticallymodifiedorganisms.

The Directorate Bio-Safety is responsible for the adminis-tration of this Act.

No delegation to ARC. However, ARC expertise, facil-itiesandscientificdata/informationareutilisedtosup-port decision-making.

Animal Improvement Act, 1998 (Act No. 62 of 1998)

Toprovideforthebreeding,identificationandutilisationofgenetically superior animals in order to improve the pro-duction and performance of animals in the interest of the Republic.

The Directorates Animal Production and Veterinary Quar-antine, and Human Health are responsible for the adminis-tration of this Act.

Certain services that are discharged under this act are managed by the ARC.

• Animal improvement services, including collec-tion of animal data, as well as management of National Databank (INTERGIS);

• Section 20 of the Act on the establishment of the Schemes;

• Declaration of the Schemes Notice 29516 of 2007 Section 5(1)(a)(iii) - the Schemes shall en-sure that all recorded data must be submitted to the Integrated Registration and Genetic Informa-tion System (INTERGIS);

• Furthermore, Section 44 of the Declaration stip-ulates that:• The Schemes will be managed by the ARC,

a statutory body established in terms of Sec-tion 2 of the Agricultural Research Act, 1990 (Act No. 86 of 1990);

• The ARC will exercise the powers and per-form duties conferred to it in terms of the Schemes; and

• The ARC may make rules relating to the Schemes in consultation with the Depart-ment.

National Environmental Management Act, 1998 (Act No. 107 of 1998)

Provide for measures to prevent pollution and ecological degradation; promote conservation; and secure ecological-ly sustainable development and use of natural resources, while promoting justifiable economic and social develop-ment.

The Department of Environment, Forestry and Fisheries (DEFF) is responsible for the administration of the Act.

ARC supports by hosting of national collections and de-veloping data used for conservation and management of natural resources.

Baseline biodiversity data is essential for policy-makers regarding conservation and sustainable use of natural resources.

National Environmental Management: Biodi-versity Act, 2004 (Act No. 10 of 2004)

To provide for the management and conservation of South Africa's biodiversity within the framework of the National Environmental Management Act, 1998; the protection of species and ecosystems that warrant national protection; the sustainable use of indigenous biological resources; the fairandequitablesharingofbenefitsarisingfrombiopros-pecting involving indigenous biological resources.

The DEFF is responsible for the administration of the Act.

As outlined above in respect of NEMA.

The above-mentioned legislation and Acts are not exhaustive, and it is recognised that the ARC is subject to, and must comply with, all national and provincial legislation and regulations, and all municipal by-laws, applicable to its functions or the areas in which it operates.


POLICY MANDATE

WhereastheabovelegislationandregulationsdefinethescopeofthemandateandregulatehowtheARCmustop-erate, variousnationalpolicyandstrategy frameworksgiveeffect tohow themandateshouldbe implemented,andhave direct bearing on the priorities and focus areas of the ARC for the 2020/21-2024/25 period of its Strategic Plan.

National Framework Implication

Longer-Range Developmental Priorities:

The National Development Plan, Vision 2030

Adopted by Cabinet in 2012, the NDP is the visionary blueprint of government, with business and society as collaborative partners - seeking to eliminate poverty and sharply reduce inequality and unemployment by 2030. All of government is challenged to ensure their medium and short-term planning and M&E are aligned to the NDP.Inclusive growth and development, an active and united citizenry and a capable State are some of the visionary elements of the NDP 2030.

TheNDPidentifiesthefollowingcriticalactionstorealiseVision2030:• A social compact to reduce poverty and inequality and raise employment and investment; • A strategy to address poverty and its impacts by broadening access to employment, strengthening the

social wage, improving public transport and raising rural incomes; • Steps by the State to professionalise the public service, strengthen accountability, improve coordination

and prosecute corruption;• Boost private investment in labour-intensive areas, competitiveness, and exports, with adjustments to low-

er the risk of hiring younger workers; • An education accountability chain, with lines of responsibility from the State to the classroom;• Phase in national health insurance, with a focus on upgrading public health facilities; • Publicinfrastructureinvestmentat10percentofgrossdomesticproduct(GDP)financedthroughtariffs,

public-private partnerships, taxes and loans and focused on transport, energy and water;• Interventions to ensure environmental sustainability and resilience to future shocks;• New spatial norms and standards - densifying cities, improving transport, locating jobs where people live,

upgradinginformalsettlementsandfixinghousingmarketgaps;and• Reduce crime by strengthening criminal justice and improving community environments.

Implications and opportunities for the ARC are to support agriculture to create 1 million jobs by 2030, through:• Expansion of irrigated agriculture by 500,000 ha;• Conversion of under-utilised land in communal areas into commercial land;• Support to commercial agricultural areas that have the highest potential for success;• Job creation in upstream and downstream areas of agriculture;• Creative combinations for communal land conversion and high potential commercial land; and• Exposure of new entrants to product value chains.

UN Sustainable Development Goals (SDGs)

Adopted by the United Nations in 2015, the 17 SDGs and their 169 key indicators build on the success-es of the Millennium Development Goals, while including new areas, such as climate change, econom-ic inequality, innovation, sustainable consumption, peace and justice, among others. The SDGs set a common sustainable development agenda for pursuit by all signatory nations, including South Africa. South Africa’s contribution to the SDG negotiation process was informed by the priorities of its National Develop-ment Plan (NDP).

Echoing the intent of the NDP, in support of the SDGs, South Africa can realise the goals by drawing on the en-ergies of its people, growing an inclusive economy, building capabilities, enhancing the capacity of the State, and promoting leadership and partnerships throughout society.

African Union Agenda 2063

AlignedtotheUNSDGs,theAfricanUnionAgenda2063reflectsthefollowingaspirations:• A prosperous Africa, based on inclusive growth and sustainable development;• An integrated continent, politically united and based on the ideals of Pan-Africanism and the vision of

Africa’s Renaissance;• An Africa of good governance, democracy, respect for human rights, justice and the rule of law;• A peaceful and secure Africa;• An Africa with a strong cultural identity, common heritage, values and ethics;• An Africa where development is people-driven, unleashing the potential of its women and youth; and• Africaasastrong,unitedandinfluentialglobalplayerandpartner.

National Spatial Development Framework, 2050 (NSDF)

Under the theme: “Moving South Africa forward towards the desired spatial future”, the National Spatial Develop-ment Framework sets out an action plan to bring about radical spatial transformation at scale, and manage and mitigate national risks (current and emerging),

ItproposesasetoffiveNationalSpatialActionAreas(NSAAs),whichrequireurgent, focusedand integratednational spatial infrastructure investment and spending; and concerted and sustained intergovernmental col-laboration, including the alignment of plans, budgets and departmental plans in and between the spheres of government.


10. ORGANISATIONAL STRUCTURE

* Retired May 2019


PART B: PERFORMANCE INFORMATION

1. Auditor’s Report: Predetermined Objectives

2. Situational Analysis

3. Performance Information By Programme


1. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES

The AGSA currently performs the necessary audit procedures on the performance information to provide reasonable as-surance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is includedinthereporttomanagement,withmaterialfindingsbeingreportedunderthePredetermined Objectives heading in the Report on other legal and regulatory requirements section of the Auditor’s Report.

Refer to page 169-174 of the Report of the Auditor-General, published as Part E: Financial Information.

2. SITUATIONAL ANALYSIS

2.1. SERVICE DELIVERY ENVIRONMENT

TheARCcontinuouslystrivesforensuringoptimalvaluederivedfromutilizationoffinancialandotherresourcesonbe-halfofcustomers,thegovernmentandpeopleofSouthAfrica-particularlyinfulfilmentoftheorganisationalmandate.

Conductingbusinessinthefinancialyears2016/17to2019/20hasbeendifficultfortheARC,primarilyduetoinadequateresourcestofulfiltheorganisation’smandate.AlthoughtherearemanycontributingfactorstochallengesfacedbyARC,South Africa’s poor economic performance, unfavourable climatic conditions (e.g. severe drought in the Western Cape anddelayedsummerrainfall)andtheunderperformingagriculturesectorhaddirectnegativeimpactsonthefinancialresources available to the ARC. This resulted in a decline in external income (mainly farmers and other private sector enterprises) for research services in the sector.

ExternalfactorsthatinfluencedtheservicedeliveryenvironmentoftheARCincludedthefollowing:• Structural faults in the South African economy, particularly poor educational outcomes that perpetuate

inherited disadvantage, low levels of labour intensive growth, skills shortage, spatial fragmentation of the urban landscape and travel costs, highly concentrated industrial structures, limited competition and high barrierstoentry,aswellasinefficientpublicmonopoliesimposinghighcoststructuresfornetworkinfrastructure;

• A collapse in consumer and business confidence leading to a contraction in private sector investments and consumption demand;

• National elections that diverted attention to economic activity associated with volatility in local markets; and • Persistent under-achievement of the agriculture land reform programme.

During the Medium-Term Expenditure Framework (MTEF) period ending 31 March 2018 the ARC Parliamentary Grant was reduced by R252 million; and, in addition, the grant allocation from the Department of Science and Technology (DST) for the maintenance and operation of national gene banks (National Public Good Assets) was reduced by R40 million.Infinancialyear,2018/19governmentimplementedachangeintherateofVATfrom14%to15%thatinturn,reduced the parliamentary grant available to ARC.

Further analysis indicates that in the period 2012-2015 income exceeded expenditure; however, since 2015, this trend has reversed (i.e. expenditure exceeding income up to 2019). This scenario has depleted the cash reserves of the ARC. Although the working capital of the ARC showed a positive ratio in 2016, whereby current assets exceeded liabilities; the opposite result obtained in 2017 and throughout 2018, current liabilities exceeding current assets indicating liquidity challenges.Becauseofpriorperiodfinancialperformance, theARCundertookdrasticmeasuresaimedat improvingorganisational viability.

TheARCoperatingenvironmentduringfinancialyear2019/20includedthefollowingrisks:1. Sustainabilityasagoingconcern(withpotentialriskoflossofskilledpersonnel,inabilitytofulfilfinancialobliga-

tions that could have consequences for existence of the organisation);2. Inabilitytofulfilmandates;3. Increased risk of poor agricultural production and productivity as a consequence of frequent, uncontrollable out-

breaks of pests and diseases (e.g. FMD, Fall Armyworm, drought etc.);4. Increased risk of lack of food insecurity (increased hunger and malnutrition); and


5. Increased risk failed agricultural enterprises, particularly commercial agriculture with concomitant unemployment, among others.

Noting that the consequences of a dysfunctional or liquidated ARC would be ghastly to contemplate for South Africa. As a key provider of solutions for the management of pests and diseases, mitigation and adaptation to climate change; a non- functionalARCwouldpresentasignificantthreattofoodsecurity,agriculture,economicgrowth,peaceanddevelopment.

To avoid the failure of the ARC, management working with Council reviewed the operating business model. The outcome wasthedevelopmentandimplementationduringfinancialyear2019/20ofafinanciallysustainablebusinessmodelthat:

• Explores new and possibly expanded (outside agriculture sector) revenue streams;• Improvesuponresourcemanagementintermsofeffectivenessandefficiencies;• Organisational structure (e.g. optimum ratio of cost of employees to baseline operational parliamentary grant);• Resource mobilization through increased partnerships; and• Consolidation of cost-saving measures, including but not limited to reductions in the number of research and

developmentcampuses,eliminatinglong-terminsufficientlyfundedproject,tomentionafew.

2.2. ORGANISATIONAL ENVIRONMENT

Analysis of the ARC performance against pre-determined objectives, key performance indicators and targets as outlined inthefive-yearStrategicPlanfortheperiod2015/16to2019/20wasconducted.TheARChad49indicatorsthatwereassessed for performance. However, current analysis focused on key indicators that are representative of the Research andDevelopmentvaluechain,notingthattheARChasbothascientificandagriculturaldevelopmentmandate.

Generally, the ARC has surpassed its annual targets in a number of key performance indicators for the period under consideration.Asreflectedinthediagrambelow,thenumberofscientificpublicationsincreasedfrom363to459between2015/16and2019/20,a26%increase.TheARCperformanceintermsofpeerreviewedscientificpublicationssuggestsan organisation with high productivity, particularly as the information and knowledge were published in both local (South African) and international journals. A number of publications as measured in terms of the ISI rating had an impact factor aboveone-whichsuggestsagreaternumberofusersoftheinformationpublishedbyARCresearchers.Toenableeffec-tiveutilizationandinnovationintheagriculturalsector,theARCdisseminatedscientificdataandassociatedinformationmainly through popular publications, technical reports and manuals.

Althoughscientificpublicationsserveasacriticalmeansofdetermininganddemonstratingthequalityoftheinnovationsand information developed by the ARC, there is a need to provide or transform such data into new technologies for use in agriculture. The ARC continues to serve as one of the leading sources of new agricultural technologies. Analysis indi-cates that the ARC transferred more than 240 technologies through licensing in the period 2015/16 to 2019/20, including cultivars that had obtained Plant Breeders’ Rights. These new cultivars enable the agricultural sector to increase yield, productivity and resilience to constantly changing production environment, particularly climate change - such as resis-tance to pest and diseases as well as drought tolerance.

As indicated above, the ARC operating environment was impacted by reductions in Parliamentary Grant allocations during the MTEF period 2016 to 2019. Reductions in the Parliamentary Grant limited the organisation’s ability to invest intocriticalscientificlaboratoryequipmentforresearchservicesaswellasinabilitytorecruithighlyskilledresearchers.Further, reductions in the Parliamentary Grant limited the ARC ability to generate revenue from external clients, particu-larly the private sector.


Internallyreducedfinancialresourceshadthefollowingimpactupontheorganisation:• ARCscientistsreducedtheirtimeconductinglaboratoryorfieldresearch,butinsteadfocusedondataanalysis,

thatinturn,resultedinscientificpublicationsofhighquality;• ReductionsinfieldandlaboratoryresearchactivitieslimitedtheoutputsoftechnologiesfromARC,whichinturn

hasresultedinsignificantreductionsinthenumberofcultivarsreleasedorregisteredforPlantBreeders’Rights;• During the same period, the ARC ceased or limited research on vaccine development;• LimitedfinancialresourcesresultedintheARCunabletoprovideinflationlinkedwageadjustmentsforresearchers

and managers;• Underreducedfinancialresources,theARCwassubjectedtounrestbyemployees(employeeworkstrike)with

damage to some infrastructure and adverse impact on the reputation of the organisation as well as relations; and• In the same operating period, the ARC limited or delayed recruitment of highly skilled scientists essential for the

organisationtofulfilitsmandate.

As outlined above, the ARC has initiated and implemented a Financial Sustainability and Turnaround Plan aimed at ensuring viability of the organisation. The impact of measures implemented under the Financial Sustainability and Turn-around plan are still unfolding and will become central to the success of the organisation.

2.3. KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES

Apart from that set out in the paragraph below relating to a heightened regulatory focus area on compliance, there have beennoothersignificantSouthAfricannationalbodyoflawandpolicychangestotheARCmandateassetoutintheapproved Strategic Plan. The duty of the ARC as a public entity, must comply with all Constitutional law imperatives, National Legislation, Regulations, Municipal by-laws, other subordinate legislation and the common law, with suitable regard to the implications for the ARC business and its sustainability of the case law interpretation of the said parts of the national body of law, by the Higher Courts of the Country.

2.4. STRATEGIC OUTCOME-ORIENTED GOALS

ForeachofthesixstrategicgoalsandreflectingthealignedARCProgrammes,thestrategicgoalsareunpackedintostrategicobjectives(higherorderoutputs)andthenreflectingtheperformanceindicators,baselinesandannualtargetsforthe2019/20financialyearandMTEF.

Thefocusisonensuringthatthespecifiedoutputsareclearandmeasurable,inaccordancewiththe“SMART”principle.In addition, at a level below the strategic goals and their related key outputs, the ARC employs a Council (Board) ap-proved Programme structure against which the focus of the goal is described and prioritised. The Programme structure reflectsnineProgrammes,asdescribedintheStrategicPlan2015/16-2019/20.

In the sections below, the ARC 2019/20 performance information is packaged as follows:

Strategic Goal Responsible ARC Programme Research and/or Delivery Outputs

Goal 1: To generate knowledge and tech-nologies that will enhance the effi-ciencies in crop based agriculture.

Programme 1: Crop Production, Improvement and Protection.

1) Generation of knowledge through research;2) Development of new technologies;3)Scientificservicesrendered;and4) Information dissemination.

Goal 2:To generate knowledge and tech-nologies that will enhance the ef-ficiencies in livestock, wildlife and

aquaculture based agriculture.

Programme 2: Animal Health, Production and Improvement.


Goal 3:To generate knowledge and tech-nologies for the conservation and

utilisation of natural resources.

Programme 3: Natural Resources Management.

_______________________________________

Programme 4: Mechanisation and Engineering.


Goal 4:To generate knowledge, solutions and technologies for food safety, quality and improved efficiencies in

the agriculture value chain.

Programme 5: Agro-Processing, Food Technology and Safety.



Strategic Goal Responsible ARC Programme Research and/or Delivery Outputs

Goal 5:To generate and disseminate knowledge and technologies for decision-making and transforma-

tion of the agricultural sector.

Programme 6: Smallholder Agricultural Development.

_______________________________________

Programme 7: Agricultural Economics and Commercialisation.

_______________________________________

Programme 8: Training and Extension.

1) Generation of knowledge through research; 2) Technologies released to agriculture sector;3)Scientificservicesrendered;4) Agriculture skills and capacity development;5) Agriculture R&D information communicated/dissem-inated to stakeholders; and6) Stakeholder management.

Goal 6:Apply best resource management practices, towards a high perform-

ing and visible organisation.

Programme 9: AdministrationandCorporateAffairs.

1) Improved post-graduate SET base;2)Improvedstaffprofile;3) Optimal investment in training and development;4) Funding and revenue generation;5) Applied Information technologies; and 6) Optimal utilisation of assets.

3.1. PROGRAMME 1: CROP PRODUCTION, IMPROVEMENT AND PROTECTION

Strategic Goal 1 is delivered through ARC Programme 1: Crop Production, Improvement and Protection.

The focus of Goal 1 is to generate knowledge and technologies (intellectual property and tools) that will diversify, improve the quality and increase the value of crop-based agricultural production and related processes and products; enhance productivity towards food and nutrition security (both at national and household level); increase commercial exports and income for the agricultural sector and enable producers to combat challenges brought about by changes in climate.

The goal focuses on improving the productivity, competitiveness and sustainability of both commercial and smallholder crop-basedagriculture through researchanddevelopment in threeareasnamely,fieldcrops,horticulturalcropsandindustrial crops. Crops research and development includes a wide range of grains, vegetables, indigenous ornamental plants, medicinal plants, deciduous fruit and grapes, tropical and subtropical fruits and niche crops, such as herbal teas. Industrialcropsresearchanddevelopmentfocusonfibrecrops,suchascottonandhemp.

AsdefinedintheStrategicPlan,theresearchanddevelopmentprioritiesofGoal1,whichincludesProgramme1,areas follows:

1. Cropcultivardevelopmentthroughgeneticimprovementandmodification;2. Characterising and evaluating crops in terms of quality, nutritional composition, shelf life and suitability for pro-

cessing;3. Disease and pest control by means of enhanced genetic diversity;4. Provision of strategies for management of pests, diseases and alien invaders;5. Bio-control of pests and diseases;6. Theimprovementofagriculturalproductivityandprofitabilitythroughadaptiveandinnovativecropmanagement

and production systems, such as conservation agriculture;7. Development of crop production practices and systems, including crop rotation, intercropping, irrigation, fertiga-

tion, weed management, plant densities and general crop practices;8. Optimisation of water use and nutrition uptake;9. Lowering of input costs;10. Broadening the food base in order to enhance food and nutrition security;11. Production systems for low input, low decision-making and marginal production areas;12. Trainingofcropgrowersandextensionstafftoensuresustainableproduction;and13. ProvisionofscientificservicestofarmersandclientsoftheARC.

3. PERFORMANCE INFORMATION BY PROGRAMME


Key performance indicators, planned targets and actual achievements:

GOAL 1: TO GENERATE KNOWLEDGE AND TECHNOLOGIES THAT WILL ENHANCE THE EFFICIENCIES IN CROP BASED AGRICULTURE

Programme 1: Crop Production, Improvement and Protection

Key Output Performance Indicator

Actual Achieve-

ment 2018/19

Planned Target

2019/20

Actual Achieve-

ment2019/20

Deviation from planned target

to Actual Achievement for 2019/20

Comment on deviations

Knowledge Generated

Numberofscientificpublications:

• Articles in refereed journals;

• Chapters in books;

• Full length papers in conference

proceedings; and

• Post graduate degree conferred.

119 84 118 34 Publications accepted fast-er than anticipated.

Technologies Developed Number of Cultivars registered. 9 12 8 (4) Registration of cultivars

beyond control of ARC.

Scientific Services rendered

Number of Diagnostic and Analytical services rendered. 644 756 626 (130) Fewer diagnostic services

requested by clients.

Information disseminated

Number of technical reports and manuals. 516 329 442 113 Higher number of reports generated for ARC clients.

Numberoffieldtrialsites. 356 588 541 (47) Fewer field trials due tohigh rainfall season.

BasicandappliedresearchconductedwithintheCropSciencesDivisioncontributessignificantlytowardsattainmentoftheARCstrategicoutcomes-orientedgoalsasaScienceCouncilandagriculturaldevelopmentorganisation.Specifically,plant breeding research and development through the disciplines of breeding, physiology, and genetics enables the de-velopmentofimprovedfood,feedandfibrecultivars.Thenewcultivarsensurehigherprofitabilityandfoodandnutritionsecurity, as well as resilience of the agriculture sector. A case in point is the registration of three (3) new wheat cultivars developed at the ARC Small Grains campus, which are expected to increase the production and productivity of wheat in South Africa. The new wheat varieties are (i) Steenbok, (ii) Tredoux and (iii) Umzumbe; and their performance in the National Cultivar Evaluation Programme (NCEP) is summarised below:

• Steenbok is a new dryland wheat cultivar for the winter rainfall region. Steenbok performed very well in the Nation-al Cultivar Evaluation Programme (NCEP) for the winter rainfall region (Western Cape) in the 2019 season; and achieved high grain yield and hectoliter mass in both the combined Swartland regions and Eastern Ruens regions.

• TredouxisanewvarietythatwasonlyincludedintheNCEPtrialsforthefirsttimein2019andseemstobebetteradapt-ed for the Eastern and Southern Ruens production regions. Grain yield, protein content and hectoliter mass of this new variety are acceptable but the true value and potential production regions will only be determined in the coming seasons.

• Umzumbe is a new variety that has good grain yield and quality potential in the cooler irrigation regions and par-ticularly the Vaalharts area. In a 4-year average (2015 to 2018) for grain yield, Umzumbe outperformed the older ARC commercial irrigation varieties such as ‘Sabie’ and ‘Renoster’. It was however decided not to advance Um-zumbe for commercialisation as new candidates with better yield and quality potential were becoming available. Umzumbe was therefore also not included in the NCEP trials for the irrigation regions.

As South Africa strives to become less dependent on wheat imports, currently estimated at an average of 1.57 million tonnesperannumoverthepastfiveyears,theARCcontinuestorenderresearchtosupportthewheatindustry.TheARCpre-breeding forenhanced resistance/quality traitshas released2021wheat linesover thepastfiveyears forexploitation by all South African wheat breeding companies. On the other hand, the ARC wheat cultivar development programme has released eight dryland and four irrigation wheat cultivars over the past 4 years, while one oats cultivar is in the process of being released. A metadata analysis published in 2018 on wheat breeding research conducted by ARC has revealed a return on investment (ROI) ratio of 5.1:1. Although seemingly lucrative, there is reluctance to invest in cultivar development research as wheat is a self-pollinating crop with farmers retaining seed from season to season. The ARC therefore places high importance on international research partnerships for research and development outcomes.


A notable partner, amongst others, is the International Maize and Wheat Improvement Center (CIMMYT), with regard to the Programme on International Wheat Yield Partnership. In further support of local wheat cultivar development, ARC has the mandate to conduct the National Cultivar Evaluation Programme (NCEP) in all major production areas in South Africa. This is done to supply reliable, independent guidelines for the choice of adapted cultivars to small grain producers and policy makers. On average, 55 cultivars are evaluated in the NCEP per annum.

Other achievements in cultivar development include the awarding of Plant Variety Rights in New Zealand for the ARC AfricanSunset‘ARCCIT1519’,alatematuringmandarin,selectedforitsattractiveappearanceandexcellentflavour,thatwill be marketed in New Zealand by an ARC designated commercialisation partner. The ARC Tropical and Subtropical Crops,aspartofitsmandate,undertakescitrusbreedingresearchwithsignificantcontributiontothecitrusindustry.TwoARCmandarinsweregrantedPlantBreeders’RightscertificatesinMexico,andthisisexpectedtobebeneficialtotheARCintermsofpotentialroyalties.APlantBreeders’RightscertificatewasawardedforagrapecultivarcalledSundown-er. This is a new, white seedless grape for the production of raisins, developed in the ARC Infruitec-Nietvoorbij’s grape breeding Programme and extensively evaluated in the Western and Northern Cape. The ARC Grain Crops successfully registered soybean variety ‘ARC-Soy 01’. Performance on cultivar development is subject to external dependencies out-side the control of the ARC and the Crop Sciences Division. The annual target was to develop and register 12 cultivars, and ARC received feedback on 8 cultivars. There is outstanding feedback for another 8 cultivars for which applications for Plant Breeders’ Rights were submitted; which include:

• 4 maize varieties; • 1 soybean variety; and • 3 fruit cultivars for apple, peach and pear.

It is expected that outstanding feedback will be received in the subsequent year. Linkages on Crop Sciences performance and high level imperatives such as food and nutrition security and performance of the agriculture sector, highlights the importanceofcontinualdisseminationofresearchoutputsandoutcomestothescientificfraternity,farmingcommunityand society at large.

Scientificpublicationsareanimportantplatformtodisseminateresearchfindings,andenhancevisibilityandstatureofresearchorganisationsandthecalibreofscientistswhoareattheforefrontofthereportedperformance.Scientificpubli-cations are also an area where the performance of the Division continues to report above set targets, and this is largely attributed to acceptance of manuscripts being outside the control of researchers.

Technical reports and manuals produced by ARC researchers and technicians disseminate information directly to the agriculture sector on demand by agricultural organisations and farming communities that collaborate directly with the ARC, and the demand for this service in many instances exceeds set targets. The long-term nature of research con-ducted at the ARC and in Crop Sciences is invariably impacted by seasonal variation in climatic conditions, resulting inperformancetrendsthataredirectlycorrelatedtosuchseasonalvariation.Forinstance,openfieldtrialsaresubjectto the onset of the rainy season, and this could result in delayed planting due to continuous heavy rainfall leading to waterloggedfields.Theunpredictabilityofdemand-drivenservicessuchasdiagnosticandanalyticalservices,requirescloser monitoring. Generally, targets are increased annually on an incremental basis, informed by performance of trends of previous years. In this regard, the Crop Sciences Division had anticipated that the 2019/20 demand for diagnostic and analytical services would be higher than the attained performance of 644 services in 2018/19. However, the attained performance for 2019/20 was 2.3% lower than the previous year, which was indicative of a need to improve marketing of these services on an annual basis.

Strategy to overcome areas of under-performance:The Marketing and Communication Strategy of the ARC is an important vehicle to enhance visibility of the Crop Sci-ences Division among clients and stakeholders, and serves as an important intervention strategy to address areas of underperformance. Respective campuses hold openday sessions where clients and stakeholders interact with the added benefitofreceivingdirectfeedbackonserviceimprovementopportunities.Thisisinclusiveofservicesrendered,suchasdiagnosticandanalyticalservices.TheARCCommercialisationStrategyoffersakey leverage,particularly for theproduct development pipeline in addition to the cultivar development programme. Close collaboration and alignment of Divisional outcomes to high level imperatives of key policy departments underpin opportunities to address areas of underperformance.

At present, there are tremendous opportunities presented by the Agriculture and Agro-processing Master Plan (AAMP) under development by the Department of Agriculture, Land Reform and Rural Development, and Divisional contributions to the ARC Strategic Plan and Annual Performance Plan are adjusted accordingly in order to demonstrate shareholder value-add. Broadening research collaborations with local and international research organisations, universities and farm-er organisations are pursued on an ongoing basis. All these interventions are foremost aligned to the ARC apex strategy embedded within Vision 2050 and the ARC Financial Sustainability and Turnaround Plan.


Linking performance with budgets:

Programme

2019/2020 2018/2019

Budget (R’000)

ActualExpenditure

(R’000)

(Over)/Under Expenditure

(R’000)

Budget (R’000)

ActualExpenditure

(R’000)


(R’000)

Programme 1: Crop Production, Improvement and Protection 307 074 301 409 5 665 385 235 343 270 41 965

Total 307 074 301 409 5 665 385 235 343 270 41 965

3.2. PROGRAMME 2: ANIMAL HEALTH, PRODUCTION AND IMPROVEMENT

Goal 2 is delivered through ARC Programme 2: Animal Health, Production and Improvement.

The focus of Goal 2 is to generate knowledge and technologies that will diversify, improve the quality and increase the value of livestock-based agricultural production and related processes and products; enhance productivity towards food security (both at national and household level) and increase commercial exports and income for the agricultural sector.

The goal focuses on improving the productivity, competitiveness and sustainability of both commercial and smallholder livestock-based agriculture through research and technology in areas related to animal health, production and improve-ment, as well as secondary production processes. Research and development are focussed on both production and companion animals, and increasingly in the areas of aquaculture and wildlife.


1. Securing and maintaining the health of animals through the application of cutting-edge technologies;2. Conducting disease surveillance in animals and wildlife reserves to prevent introduction of disease pathogens

into humans and domestic animals;3. Promoting the adoption of animal recording and improvement schemes by livestock farmers, as a platform for

economic and community development in the smallholder sector;4. Promoting sustainable rangeland utilisation to prevent degradation and develop strategies to that end;5. Breeding and improving forage varieties, including grasses and legumes;6. Developingefficientandcost-effectivefeedingstrategiesforruminantandnon-ruminantanimals;7. Providing the South African livestock industry with appropriate and internationally recognised recording and im-

provement services;8. Providing the agricultural sector with animal development strategies; and

9. ProvisionofscientificservicestofarmersandclientsoftheARC.



GOAL 2: TO GENERATE KNOWLEDGE AND TECHNOLOGIES THAT WILL ENHANCE THE EFFICIENCIES IN LIVESTOCK, WILDLIFE AND AQUACULTURE BASED AGRICULTURE

Programme 2: Animal Health, Production and Improvement


Actual Achieve-

ment 2018/19

Planned Target

2019/20

Actual Achieve-

ment2019/20

Deviation from planned target to Actual Achieve-ment for 2019/20


Knowledge Generated

Number of scientific publications:• Articles in refereed journals;

• Chapters in books;

• Full length papers in conference

proceedings; and

• Post graduate degree conferred.

111 107 109 2Publications accepted faster than anticipated.

Technologies Developed Number of patents registered. 0 0 0 0 -


Number of Diagnostic and Analytical services rendered. 20 887 14 896 12 971 (1 925) Lower demand for

ARC services.


Number of technical reports and man-uals. 20 20 26 6

Higher number of reports generated for ARC clients.

Number of farmers participating in ani-mal improvement schemes. 465 400 247 (153)

Lower than antici-pated participation in the animal improve-ment schemes.

Contribution of Animal Sciences to the achievement of the ARC strategic outcomes orientated goals:Despite numerous challenges such as an inadequate budget and many resignations, the Programme has valuably con-tributedtotheeffortsoftheARCtogenerateknowledgeandtechnologiesthatenhanceefficienciesinlivestock-,wild-life- and aquaculture-based agriculture. The Programme’s research endeavours have yielded solutions, processes and technologies to increase agricultural production and productivity.

Reasons for under-performance:Specifically,thenumberofscientificpapersandbookchapterspublishedandthesesanddissertationsproducedwereabovethetargetfortheyear.However,performanceintheareaofscientificservicesrenderedthroughanalyticalanddiagnostic services was below target. While there are a number of reasons for the under-performance, the key one was the adverse agricultural production conditions prevailing in some parts of the country because of persistent drought and thegeneraldifficulteconomicconditions.Thishasalsoresultedinsomeofthedairyherdsbeingsoldandsomefarmersleaving the dairy industry. These factors contributed to the lower than anticipated participation of farmers in the livestock improvement schemes and number of samples brought to the ARC laboratories for analyses.

Strategy to overcome areas of under-performance:Thecountryisembarkingonspecificinterventionstoexpediteagriculturaltransformationsuchasenhancingaccesstoland through land reform programmes. This avails an opportunity for the ARC to play a role in capacity building of poten-tiallandreformbeneficiaries.Thecountryhasalsoprioritisedagricultureinitseconomicrecoveryplan.Accordingly,thedemand for agricultural expert services will increase. The ARC, through its Farmer Support Programmes, is well posi-tioned to contribute to the economic recovery of the country. Furthermore, the demand for animal products is projected to increase in the medium-term due to population increase and rise in the standard of living of Africans. This is assurance that an increase in animal production and productivity will remain a key priority for the agricultural sector and it is there-fore up to the Division to position itself properly to take advantage of the opportunities that will be emerging. The Division will aggressively market itself as a competent provider of support services for animals and attempt to recruit competent stafftofillthegapsthatwerecreatedbythedepartureofsomeofourformeremployees.


Programme

2019/2020 2018/2019

Budget (R’000)

ActualExpenditure

(R’000)


(R’000)

Budget (R’000)

ActualExpenditure

(R’000)


(R’000)

Programme 2: Animal Health, Production and Improvement 380 264 360 103 20 161 343 280 304 011 39 269

Total 380 264 360 103 20 161 343 280 304 011 39 269


3.3. PROGRAMME 3: NATURAL RESOURCES MANAGEMENT

Goal 3 is delivered through ARC Programme 3: Natural Resources Management and ARC Programme 4: Mechanisation and Engineering.

The focus of Goal 3 is to generate knowledge and technologies that will conserve natural resources and sustain agricul-ture.

The goal focuses on improving the productivity, competitiveness and sustainability of both commercial- and smallholder- basedagriculturethroughresearchandtechnologyinareasrelatedtoefficientenergyutilisation,watermanagementand irrigation practices; the rehabilitation, utilisation, development and protection of natural agricultural resources; new and improved conservation and climate-smart agriculture systems; improved monitoring and characterization systems for natural resources and genetic material; and mechanised farming and irrigation practices, techniques, equipment and machinery.


1. Well-functioning natural assets and natural resources databases;2. Efficientutilisationofnaturalresourcesforimprovedagriculturalproductivity;3. Weather and climate research to increase production;4. Maintenance and management of genetic material databases and national collections;5. Provision of expert technical advisory services to support management of climate variability and natural disasters;6. Provision of prediction models for pests, diseases and alien invaders;7. Development of techniques for appropriate value-adding farm structures, infrastructure and related livestock fa-

cilities;8. Cropwaterproductivityandefficiencyatvariousplanningandoperationallevels;9. Management of agricultural water and integrated management of catchments;10. Biofuel research and especially assessment of critical success factors; and11. Mapping of existing and potential production areas.


GOAL 3: TO GENERATE KNOWLEDGE AND TECHNOLOGIES FOR THE CONSERVATION AND UTILISATION OF NATURAL RESOURCES

Programme 3: Natural Resources Management


Actual Achieve-

ment 2018/19

Planned Target

2019/20

Actual Achieve-

ment2019/20



Knowledge Generated

Numberofscientificpublications

• articles in refereed journals;

• chapters in books;

• full length papers in conference

proceedings; and

• post graduate degree conferred.


Technologies Developed Number of prototypes developed. 0 0 0 0 -

ScientificServicesrendered

Number of Analytical and Advisory ser-vices rendered. 1 094 874 1 203 329 Higher demand for

ARC services.


Number of technical reports and man-uals. 115 127 123 (4) Fewer reports gener-

ated for ARC clients.

Numberoffieldtrialsites. 62 56 58 2 Morefieldtrialsdueto good rains.

The Natural Resources Management Programme has been able to achieve most of the KPI targets during the period un-der review and this has contributed immensely to the ARC goal of generating knowledge and solutions that will conserve natural resources and sustain agriculture. The target for publications was exceeded by 49, and these were in all of the key natural resources thematic areas. Whilst the Programme was successful in generating new knowledge, challenges remain in the area of technology development. The key enablers for the Programme, to move away from the reliance


on old or traditional forms of technology to modern digital technology platforms, include an improved ICT infrastructure and critical personnel in emerging areas such as data science. An ideal ICT infrastructure will make it feasible to collect and store quality natural resources data, which can be properly processed or mined to develop useful decision support systems such as early warning systems and systems for enhancing and estimating agricultural production. The number of technical reports produced during the period under review was higher than the previous year’s achievement, but fell short of the planned target. Most of these reports are tied with project completion and any delay in the implementation of theprojectswillcreatechallenges.ThelastquarterofthefinancialyearcreatedchallengesfortheProgrammeassomeoftheprojectscouldnotbefinalised.ThetargetsforservicesrenderedwereexceededandthishascontributedhugelytotheARCgoalofworkingtowardsafinanciallysustainableorganisation. Strategy to overcome areas of under-performance:There is a need to invest in the ‘inputs’ which are required to position the Programme so that it can improve its abil-ity to develop thedigital technologies that canbe commercialised for thebenefit of both theARCand the farmers.TheProgrammewill benefit froman enabling ICT infrastructure that can contribute towards creating an ecosystemthat will make it easy for the Programme to collect natural resources data, store, process and ultimately dissemi-nate the developed ARC solutions. The needed infrastructure must also include the information system for laborato-ries, as this will make it easier to improve revenue generation from our analytical and advisory services. The Pro-gramme will also look at ways of developing capacity amongst our researchers for them to compete successfully for research grants nationally and internationally and thereby improve the revenue generation capacity of the organisation.


Programme

2019/2020 2018/2019

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Programme 3: Natural Resources Management 135 974 120 977 14 997 138 313 130 068 8 245

Total 135 974 120 977 14 997 138 313 130 068 8 245

3.4. PROGRAMME 4: MECHANISATION AND ENGINEERING

Goal 3 is delivered through ARC Programme 3: Natural Resources Management and ARC Programme 4: Mechanisation and Engineering.

The focus of Goal 3 is to generate knowledge and technologies that will conserve natural resources and sustain agricul-ture.

The goal focuses on improving the productivity, competitiveness and sustainability of both commercial- and smallholder- basedagriculturethroughresearchandtechnologyinareasrelatedtoefficientenergyutilisation,watermanagementand irrigation practices; the rehabilitation, utilisation, development and protection of natural agricultural resources; new and improved conservation and climate-smart agriculture systems; improved monitoring and characterization systems for natural resources and genetic material; and mechanised farming and irrigation practices, techniques, equipment and machinery.


1. Developing appropriate technologies for advancement of commercial agriculture and development of smallholder farmers;

2. Developing equipment for Conservation Agriculture (CA);3. Developing precision systems to minimise wastage when planting, fertiliser application, spraying, harvesting and

enhanced animal production systems;4. Developing of systems using satellite images;5. Provisionofexpertadviseandspecificationsforagriculturalinfrastructure;and6. ProvisionofscientificservicestofarmersandclientsoftheARC.



GOAL 3: TO GENERATE KNOWLEDGE AND TECHNOLOGIES FOR THE CONSERVATION AND UTILISATION OF NATURAL RESOURCES

Programme 4: Mechanisation and Engineering


Actual Achieve-

ment 2018/19

Planned Target

2019/20

Actual Achieve-

ment2019/20



Knowledge Generated





proceedings; and



Technologies Developed Number of prototypes developed. 3 3 6 3 Higher demand for ARC

prototypes.


Number of Analytical and Advisory ser-vices rendered. 8 8 14 6 Higher demand for ARC

services.


Number of technical reports and manuals. 102 28 50 22 Higher number of reports generated for ARC clients.

Numberoffieldtrialsites. 0 0 0 0 -

Publications from the agricultural mechanisation and agro-processing unit are derived from development of postharvest technologies that have had an impact on reduction of postharvest losses during storage of fresh produce and seed grains. Two papers on the performance of an evaporative cooling unit have provided an option for small-scale farmers that need a low cost system that can be powered by solar energy for storage of their fruits and vegetables. The disserta-tion and work by an MSc student on a low-cost naturally-ventilated maize seed storage system were able to reduce the relative humidity and temperature to optimum levels and farmers can now keep their seeds for periods of almost a year without spoilage if they adopt this system.

Prototypes were developed and analytical and advisory services rendered increased due to the increased performance ofwatermeasuringapplicationinthelaboratoryenvironment.Thetechnicalreportswereforspecificresearchandser-vice delivery to clients that translate research outputs and investigations into practical knowledge.

Strategy to overcome areas of under-performance:The Programme will look at cooperating with the two universities in the country that are involved in the training of agricul-tural engineers as this will assist in improving the engineering capacity of the Division. This will also assist in improving the level of publications and prototypes. The Programme is also planning to embrace the opportunities that are created due to the Fourth Industrial Revolution, particularly aspects that are related to autonomous vehicles, precision agricul-ture, big data and smart sensors.


Programme

2019/2020 2018/2019

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Programme 4: Mechanisation and Engineering 34 655 30 833 3 822 35 251 33 708 1 543

Total 34 655 30 833 3 822 35 251 33 150 2 101


3.5. PROGRAMME 5: AGRO-PROCESSING, FOOD TECHNOLOGY AND SAFETY

Goal 4 is delivered through ARC Programme 5: Agro-Processing, Food Technology and Safety.

ThefocusofGoal4istogenerateknowledge,solutionsandtechnologiesforfoodsafety,qualityandimprovedefficien-cies in the agriculture value chain, with particular focus on agro-processing, pre- and postharvest processing biotech-nologyandbioinformatics,eachcross-cuttingacrossdifferentareasoftheagriculturalvaluechainandintendedtobeapplied to the full value chain of crops, animals and agricultural system research.


1. Research in animal and crop agriculture waste management;2. Biotechnologyandinformaticsprocessestoimprovefoodsafety,qualityandimprovedefficienciesintheagricul-

tural value chain;3. To develop processes to create products from indigenous crops;4. Product yield, product quality and safety;5. Product development and value adding (storage, processing and packaging);6. Additional research focus areas include indigenous and high value products (indigenous herbal teas, medicinal

and aromatic plants, fruits and vegetables) to access niche product value chains;7. ProvisionofscientificservicestofarmersandotherclientsoftheARC;8. Animal agriculture research groups conduct research primarily investigating the various factors involved in pro-

ducing good qualitymeat,meat products,milk andmilk products (safe, appealing, nutritious, affordable andtasty); and

9. Research into the processes involved in maximising yield without forfeiting quality and adding value to a basic product to increase quality and/or yield.


GOAL 4: TO GENERATE KNOWLEDGE SOLUTIONS AND TECHNOLOGIES FOR FOOD SAFETY, QUALITY AND IMPROVED EFFICIENCIES IN THE AGRICULTURAL VALUE CHAIN

Programme 5: Agro-Processing, Food Technology and Safety


Actual Achieve-

ment 2018/19

Planned Target

2019/20

Actual Achieve-

ment2019/20

Deviation from planned target

to Actual Achievement for 2019/20


Knowledge Generated




• full length papers in confer-

ence proceedings; and

• post graduate degree con-

ferred.


Technologies Developed Number of technologies developed. 4 4 4 0 Annual target met.


Number of Analytical and Advisory services rendered. 192 142 168 26 Higher demand for services.


Number of technical reports and manuals. 104 127 149 22 Higher number of reports

generated for ARC clients.


The agro-processing, food technology and safetyProgramme is highly integrated,multi-disciplinary and effective inenhancing generation of new knowledge and technologies across animal sciences, crop sciences and research and in-novation systems. Advanced technologies and research infrastructure are requisite enablers for delivery of services and products to farmers and agriculture entrepreneurs, and a key achievement in the period under review was the launch of the ARC Commercial Wine Cellar on 26 November 2019, at ARC Infruitec-Nietvoorbij, in Stellenbosch. Launch of the Infruitec-Nietvoorbij Cellar Complex followed a state of the art upgrade inclusive of:

• experimental and commercial winemaking facilities; • a tasting room; • storage facilities; and • a sensory evaluation laboratory.

In the past, this facility produced many award-winning wines, including the 1999 Nietvoorbij Pinotage, which received a prestigious 4 star rating, amongst others. Invited guests were introduced to the new Nietvoorbij wine brand, which tells a story of growth, transformation and the freedom to explore and soar in the industry. The Nietvoorbij Cellar Complex endeavours to contribute towards the training and development of previously disadvantaged and emerging wine entre-preneurs, with experimental and commercial projects in place to be a model for next generation innovation, winemaking and wine cellar technologies in South Africa. It is against this background that the Programme reports on the four (4) new technologies recorded in the table above. The technologies pertain to four (4) hybrid yeasts that were successfully se-lected for the production of aromatic white wine. Chemical analysis of the semi-commercial scale Sauvignon Blanc wine showed that all four hybrid yeasts produced wines with parameters equal to, or better than those of the two commercial reference yeast strains, especially concerning the formation of volatile acidity which imparts vinegar-like nuances.

Knowledgegeneratedfromthedevelopmentoftechnologiesisdisseminatedinscientificpublicationsandtransferredtotheagriculturesectorinavarietyofways,includingadvisoryservices.Inthisregard,thelargenumberofscientificpub-lications recorded above, as technical reports and manuals and analytical and advisory services emanate from animal sciences,cropsciencesandresearchandinnovationsystems,whilethereportedtechnologiesarespecificallyfromcropsciences.ThecontributionofAnimalSciencesappliestofoodsafety,qualityandimprovedefficienciesintheagriculturalvalue chain, and translation of research outputs in order to facilitate decision-making and contribute to the transformation of the agricultural sector.

Over-performance in the various delivery areas of this Programme signify a high rate of output by the scientists, as well asahighdemandfortheknowledge,technologiesandservicesunderthisProgrammeforthebenefitofsecondaryandtertiary agriculture.

Strategy to overcome areas of under-performance:Alltargetsexceededforthefinancialperiod.


Programme

2019/2020 2018/2019

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Programme 5: Agro-Processing, Food Technology and Safety 49 720 44 236 5 484 62 151 58 446 3 705

Total 49 720 44 236 5 484 62 151 58 446 3 705


3.6. PROGRAMME 6: SMALLHOLDER AGRICULTURAL DEVELOPMENT

Goal 5 is delivered through ARC Programme 6: Smallholder Agricultural Development Programme; ARC Programme 7: Agricultural Economics and Commercialisation Programme; and ARC Programme 8: Training and Extension.

The focus of Goal 5 is to provide strategies, analysis and information to develop and grow a competitive, productive and diverse agricultural sector, and provide a support service to identify and develop the commercial and food security poten-tial of agricultural research and development, so as to address smallholder and commercial farmer constraints.

The goal focuses on the implementation of initiatives to address smallholder farmer constraints in terms of access to resources (technology, information, etc.), in order to enhance sustainable use of natural resources and the economic growth of the country. This includes the packaging, exploitation and licensing of ARC research and development out-comes to enhance the capacity and skills of farmers, extension personnel, processors and enterprises through facilitat-ing the utilisation of ARC Intellectual Property. Lastly, the goal focuses on ensuring optimal visibility of the ARC among stakeholders.


1. Address smallholder constraints in terms of access to resources such as technology, information and training;2. Development of new commercial farmers;3. Increase productivity, enhance sustainable resource use and facilitate economic growth of the sector, providing

appropriate farming systems solutions and technologies;4. SupporttheARCpriorityfocusonR&Doutputthatdealsspecificallywithsmallholderandresource-poorfarmer

development,significantlyincreasingtheARCsupporttoallsmallholderfarmers,includinglandreformbeneficia-ries and communal farmers; and

5. The Farming Systems Research (FSR) approach, dealing in a holistic manner with the complex constraints of smallholder and resource-poor farmers, will be used extensively.


GOAL 5: TO GENERATE AND DISSEMINATE KNOWLEDGE AND TECHNOLOGIES FOR DECISION MAKING AND TRANSFORMATION OF THE AGRICULTURAL SECTOR

Programme 6: Smallholder Agricultural Development


Actual Achievement

2018/19

Planned Target

2019/20

Actual Achievement

2019/20




Number of smallholder farmers supported. 2 434 514 609 95 Higher demand for smallholder

farmer support.

Number of smallholder farmers participating in KyD.

1 726 9 200 4 625 (4 575)Manpower constraints resulted in lower participation in KyD scheme.

Contribution to the achievement of the ARC strategic outcomes orientated goals:ThesupportthattheARCprovidedtosmallholderfarmersthroughtheKyDschemehascontributedsignificantlyinen-hancing access to formal markets by livestock farmers located in the former homelands and self-governing territories. Specifically,livestocksalesfiguresthroughauctionsledtocommunitiesgeneratingunprecedentedincome,whichboost-ed local economic development and contributed to poverty alleviation.

Reasons for under-performance:Budgetary constraints were among the key challenges that the Division faced, including the DALRRD not giving the ARC money to run the Kaonafatso ya Dikgomo (KyD), the Livestock Improvement Scheme that is a special purpose vehicle for providing support services to smallholder livestock farmers. Despite these challenges, the support we provided to smallholderfarmershascontributedsignificantlyinenhancingaccesstoformalmarketsbylivestockfarmerslocatedintheformerhomelandsandself-governingterritories.Specifically,livestocksalesfiguresthroughauctionsledtocommu-nities generating unprecedented income which boosted local economic development and contributed to poverty allevia-tion.ThemainconstraintthatcontributedtounderperformanceofKyDismanpower.TheSchemehasonlyfiveresearchtechniciansandonejuniorresearcherassignedtocoverallnineprovinces.Besidesstaffshortagesdedicatedtoalltheprovinces,theskeletalstaffisusuallycomplementedbyabout38internswhocouldnotbehiredbecauseoffinancialconstraints.


Strategy to overcome areas of under-performance:Fromthebeginningofthe2020/2021financialyear,provisionoffinancialsupporttorunKyDwillbemadethroughtheComprehensive Agricultural Support Programme (CASP). Plans to formalise this new arrangement have been agreed with the DALRRD and the nine provincial Departments of Agriculture. The funds to implement KyD will be disbursed to the ARC shortly.


Programme

2019/2020 2018/2019

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Programme 6: Smallholder Agricultural Development 128 724 114 527 14 197 160 775 151 191 9 584

Total 128 724 114 527 14 197 160 775 151 191 9 584

3.7. PROGRAMME 7: AGRICULTURAL ECONOMICS AND COMMERCIALISATION

Goal 5 is delivered through ARC Programme 6: Smallholder Agricultural Development, ARC Programme 7: Agricultural Economics and Commercialisation and ARC Programme 8: Training and Extension.

The Agricultural Economics and Commercialisation Programme deals with enhancing sector competitiveness by facili-tating access to Intellectual Property for commercial exploration; development support for agricultural enterprises; and SMMEs as well as agricultural economic analysis, providing decision support and establishing the impact of our R&D. The Programme comprises two operational units, which are the Economic Analysis unit and the Intellectual Property Management and Commercialisation unit. The Economic Analysis unit conducts studies to establish the return on in-vestment and impacts of the ARC Programmes on the economy, and engages in multidisciplinary research to integrate socio-economicanalysisinARCprojects.Specifically,theunitconductsresearchinthefollowingbroadareas:

• Market intelligence studies; • Impact assessments; • Business Plans and value chain analysis; • Policy studies, and • Farmerprofilingandbaselinestudies.

The role of the Intellectual Property Management and Commercialisation Unit is to ensure that research and develop-mentoutputsareidentified,protectedandcommercialised.


1. Protection and commercialisation of IP generated by ARC R&D Programmes, with a view to grow a competitive and diverse agricultural sector;

2. Support of all other ARC Programmes in identifying and developing the commercial potential of the ARC R&D output,ensuringequitablebenefitdistributiontoallclients;

3. Provisionofcustomisedsolutionstospecificfarmerneeds,supportingenterprisegrowthanddevelopmentlead-ingtofoodsecurity,sustainableprofitabilityandcompetitiveness;

4. Ensuring a correct balance between technologies issued by the ARC under licence for income and technologies issuedunderlicenceroyaltyfree,aimedatbenefitingresource-poorandmarginalisedfarmers,andpromotingsocio-economic development; and

5. Appliedagriculturaleconomicsforarangeoftechnicalandcommercialchallengesofdifferenttypesoffarmers.It deals with economic and market analysis, viability and impact assessment of enterprises, projects and invest-ments in agricultural R&D. Policy analysis for growth of the sector is also envisaged.



GOAL 5: TO GENERATE AND DISSEMINATE KNOWLEDGE AND TECHNOLOGIES FOR DECISION MAKING AND TRANSFORMATION OF THE AGRICULTURAL SECTOR

Programme 7: Agricultural Economics and Commercialisation


Actual Achieve-

ment 2018/19

Planned Target

2019/20

Actual Achieve-

ment2019/20

Deviation from planned

target to Actual

Achievement for 2019/20


Knowledge generated





proceedings; and


13 9 21 12Publications accept-ed faster than antici-pated.

Number of Economic Impact Study Re-ports. 3 3 3 0 Annual target met.

Technologies released to the agriculture sector

Number of technologies transferred un-der license. 12 10 38 28 Higher demand for

technologies.

Intheyearunderreview,theIntellectualPropertyManagementandCommercialisationfilednewapplicationsforPlantbreeders’ rights; and validation of patents continued in other countries. The patent “The membrane and method for Pres-ervation of Produce” which was developed by the ARC in collaboration with CSIR was granted in the UK and is still under consideration. The unit exceeded its targets for the transfer of technologies to entities for commercialisation by trans-ferring38technologies;andtheroyaltycollectionsforIPthatislicensedtodifferententitiesbycollectingR27290905.

The ARC signed a license agreement with Plant Health Products (Pty) Ltd for the commercialisation of biological control products for crop protection and crop growth enhancement, following 19 years of collaborative research. The product is suitableforpastures,fieldscrops,vegetables,vineyards,timberplantationsandsmallscaleagriculture.TheARCandMurdoch University have a license agreement for the commercialisation of a perennial legume Lebeckia ambigua. In September 2019, the parties unveiled the Lebeckia ambigua variety ‘Isanti’ in Australia. The Hon. Minister Alannah Joan Geraldine MacTiernan, Minister for Regional Development; Agriculture and Food; Ports; Minister assisting the Minister for State development, Jobs and Trade unveiled the variety name ‘Isanti’ meaning sand. The unveiling was followed by radio interviews, publications in the media and site visits to follow-up on the work that started in 2006. The unit also uses differentavenuestomarkettheARCIPbyparticipatingindifferentplatforms.TheARCparticipatedinthematchmakinginitiative hosted by Technology Innovation Agency under DST, SEDA and Kisch-IP. ARC Elisa-kits came as a match with CapeBio (Pty) Ltd for the commercialisation of the kit.

The agricultural Economics Unit in the ARC has steadily grown in scope, from being mainly a supporting unit, to a re-search programme that contributes towards the organisational mandate of knowledge generation through research in various areas of agricultural economics. In 2019/20 the Unit exceeded the planned target of 9 publications, achieving 21 in total. Some of the contributions were reported from other business areas in the ARC, which have incorporated socio-economic analysis as an area of research in ongoing Programmes. Three impact studies were concluded for the ARC investments in the Pear Breeding, Table Grapes and Livestock Vaccines research. The studies showed that every RinvestedinthegrapebreedingresearchProgrammeyieldedabenefitofR4.85between2008and2017.ForthepearbreedingProgrammethestudyshowedthateveryrandinvestedyieldedabenefitofR1.63between1990and2016,withan estimated rate of return of 10,49%. Both Programmes are predicted to yield increasing returns on investment in the coming years due to increased adoption rates for Cheeky® pear and ‘Joybells’ table grape varieties. The research into livestock vaccines showed that contrary to popular belief, smallholder farmers were willing to pay for livestock vaccines, and had a higher preference for multivalent vaccines treating more than one disease, and that were usable in multiple livestock species. The impact studies illustrate the importance of longterm investments in R&D and the contribution that the ARC has made towards development of agriculture locally and the country’s potential for export earnings.



Programme

2019/2020 2018/2019

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Programme 7: Agricultural Economics and Commercialisation 46 377 41 262 5 115 57 981 54 525 3 456

Total 46 377 41 262 5 115 57 981 54 525 3 456

3.8. PROGRAMME 8: TRAINING AND EXTENSION

Goal 5 is delivered through ARC Programme 6: Smallholder Agricultural Development, ARC Programme 7: Agricultural Economics and Commercialisation and ARC Programme 8: Training and Extension.

Programme 8: Training and Extension.


1. Deliver training and information to farmers and extension personnel for skills development and better decision making, and to develop enhanced dissemination platforms for use by the ARC;

2. Agriculturaltechnicalskillsandaccesstocurrentrelevanttechnicalinformationwillcontributesignificantlytotheproductivity of the agricultural sector, especially smallholder farmers; and

3. Focus on capacity building, the transfer of technical skills through the provision of training courses and the devel-opment and dissemination of information resources to improve decision-making and risk mitigation by farmers. Deal with extension reforms in order to bridge the divide between R&D and extension services.

Key performance indicators, planned targets and actual achievements:GOAL 5: TO GENERATE AND DISSEMINATE KNOWLEDGE AND TECHNOLOGIES FOR DECISION MAKING AND TRANSFORMATION OF

THE AGRICULTURAL SECTOR

Programme 8: Training and Extension


Actual Achievement

2018/19

Planned Target

2019/20

Actual Achievement

2019/20



Information Disseminated

Number of farmer fielddays. 38 37 47 10 Higherdemandforfarmerfielddays

Number of popular publications. 255 215 236 21

More publishing houses extended an opportunity for our research stafftopublishtheirwork.

Training

Number of farmers trained. 1 743 1 284 1 096 (188) Lower demand for farmer training

than anticipated.

Number of exten-sion agents trained. 721 493 774 281 Higher demand for training of exten-

sion agents.

The ARC is dedicated to providing unparalleled personalised education and training for the sector in addition to convey-ing practical solutions to assist the wide spectrum of animal agricultural sector. The Division seeks to keep our producers up to date on relevant information and key trends in the sector, including disease diagnostics and management, nutrition, reproduction,breedingandgoodanimalhusbandryorproductionpractices.Effectivetrainingisessentialinachievingthe sectoral and national goals. To this end, the Division makes use of information dissemination events and media as detailed above. The Division has successfully discharged these responsibilities and successfully contributed to improving the skills levels in the sector even though fewer farmers than originally anticipated were trained.

Strategy to overcome areas of under-performance:To prevent under-performance in the future, the ARC plans to venture into virtual learning to to give access to a greater numberoffarmersandextensionagents.Effortsarebeingmadetoexploreclients’readinesstoparticipate inonlinecoursestobeofferedbytheARCinthecomingfinancialyear.Asurveytotest,accesstodevicesneeded,networkreli-ability and data and airtime availability to facilitate learners’ ability to partake in the courses to be delivered. The re-pack-aging of courses for virtual delivery will be the strategic focus going forward.



Programme

2019/2020 2018/2019

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Programme 8: Training and Extension 28 529 25 382 3 147 30 535 28 715 1 820

Total 28 529 25 382 3 147 30 535 28 715 1 820

Strategy to overcome areas of under-performance:The ARC plans to venture into virtual learning to broaden the market base for farmers training and to ensure that set targets are met. Online training presents an opportunity to clients that may otherwise have logistical challenges accessing ARC facilities(whicharemostlyPretoria-based)toaccesscoursesadvertisedbytheARC.Effortshavealreadybeenmadetoexploreclients’readinesstoparticipateinonlinecoursestobeofferedbytheARCinthecomingfinancialyear.Asurveytotest access to the devices needed, network reliability and data and airtime availability to facilitate learners’ ability to partake in the courses to be delivered. The re-packaging of courses for virtual delivery will be the strategic focus going forward. Mea-sures will also be put in place to schedule courses earlier in the year, to avoid late contracting, delaying resumption of training.

3.9. PROGRAMME 9: ADMINISTRATION AND CORPORATE AFFAIRS

Goal 6 is delivered through ARC Programme 9: Administration and Corporate Affairs.

ThefocusofGoal6istoensureexcellenceinscientificresearchanddevelopmentthroughenhancedcapacity,capabil-ities and appropriate organisational technology and infrastructure.

ThegoalfocusesonimprovingorganisationaleffectivenessandefficiencytowardsasustainableARC.Itincludespro-motingpublicaccountability,achievinghighstandardsofcorporategovernanceandefficientresourceutilisation,goodstakeholder engagement to ensure optimal organisational performance, visibility and service delivery.

AsdefinedintheStrategicPlan,thesupportanddevelopmentprioritiesofGoal6,whichincludesProgramme9,areasfollows:

The full range of organisational management and support services and functions, include:

1. Financial Management and Control;2. Human Resources Management;3. Supply Chain Management;4. Corporate Governance;5. Information and Communication Technology governance and management; 6. Facilities and Asset Management (Infrastructure and equipment);7. National and International Stakeholder Management, and8. Marketing and Communication.



GOAL 6: TO APPLY BEST RESOURCE MANAGEMENT PRACTICES, TOWARDS A HIGH PERFORMING AND VISIBLE ORGANISATION

Programme 9: Administration and Corporate Affairs


Actual Achieve-

ment 2018/19

Planned Target

2019/20

Actual Achieve-

ment2019/20


target to Actual Achievement for 2019/20


Improved Postgraduate SET Base

Number of students obtaining postgraduate degrees, with: Masters

54 40 39 (1) Student studies not completed as planned.

Doctoral 24 15 13 (2) Student studies not completed as planned.

Number of employees appointed with: Masters Degrees

159 20 9 (11) Recruitment process was slow due to cur-rentfinancialsituation.

Doctoral Degrees 12 10 7 (3) Recruitment process was slow due to cur-rentfinancialsituation.

Improved Postgraduate SET Base

Number of employees with: Masters 219 268 208 (60) Reduced number of employees obtaining

mastersdegrees&staffturnover.

Doctoral Degrees 250 240 245 5 Increase in employees obtaining doctoral degrees.

Percentage staff turn-over 2.65% 3.50% 3.76% (0.26%) Employees resigning for better opportuni-

ties.

Percentage increase in employment equity ratio’s in the designat-ed groupings in core business, in respect of: Black

0.67% 2.10% 0.99% (1.11%) Recruitment process was slow due to cur-rentARCfinancialsituation.

Female 0.39% 1.5% 0.58% (0.92%) Recruitment process was slow due to cur-rentARCfinancialsituation.

Disability 0.56% 1% 0.50% (0.5%) Recruitment process was slow due to cur-rentARCfinancialsituation.

Optimal investment in training and development

Total spend on PDP stipend and registration R15.7m R21.1m R14.1m (R7m) Saving was due to external funding having

been sourced and secured.

Training spend a % of salary bill 1.57% 2% 2% 0 Annual target met.

Funding and Revenue Generation

Rand value of external income R385m R387m R379.04m (R7.96m)

The non-achievement of the target is due to less than anticipated demand (i.e. orders from clients/customers).

Rand value of royalty income R33.6m R17 m R27.29m R10.29m

The ARC exceeded its royalty income, due to the new and better performance on the agreements that has been signed.

Current Ratio 0.65:1 0.7:1 1.28:1 (0.58)

The improved cash position of the organi-sationhasgreatlyinfluencedthecurrentra-tio,whichisalsoareflectionthattheARCisin a net Current Assets position (i.e. Current assets exceeds current liabilities).

BEE spend R149.8m R159m R139m (R20m)

Expenditure on the procurement plan was not met. Expected procurement, as per ap-proved procurement plan (R336 m), were not achieved, with only tenders to the value of R112 m were concluded.

ARC B-BBEE rating Level 8 Level 6 Non- compliant (3)

The ARC has over years struggled to attain a decent score on two ar-eas, namely 5.3 Supplier Develop-ment Programme and 5.4 Enterprise Development. Assessment on these two codes is not feasible as the ARC is a public entity and not in a posi-tion to sponsor or assist suppliers financially.Thetotalexpenditurecomparetopreviousyearswentdownduetofinancialconstraints experienced. Procurement was suspended four months before the end of financial year, resulting on not completingprocurement of items as per approved pro-curement plan.



Actual Achieve-

ment 2018/19

Planned Target

2019/20

Actual Achieve-

ment2019/20


target to Actual Achievement for 2019/20


Optimal use of information resources

Number of initiatives implemented towards the development of a KM platform.

3 3 4 1

More initiatives were implemented as a way of driving business into making use of tech-nology to do their day-to-day work.

Number of national assets collections digi-tised.

3 3 3 0 Annual target met.

Number of stakehold-er-interactive platforms developed.

2 2 20 18ICT is moving into more digital platforms thatenableuserstointeractmoreefficient-ly.

Percentage increase in rental income. 5% 3% 5.9% 2.9%

Infrastructure team has been working ag-gressively towards alternative use of our spare capacity.

Number of business cases developed for implementation of Asset Management Plan.

3 4 2 (2)Therearedelaysinfinalizationofactivitiesas these are dependent on external stake-holders.

Strategy to overcome areas of under-performance:The ARC will improve collaboration and develop working relationship with the external partners to facilitate a fast and conclusive process addressing the business cases for ARC Executive Management and Council consideration.

Initiatives to grow and develop research capacity within the ARC, with advanced core and behavioural skills to grow the ARC business, leadership and management development. Initiate recruitment, marketing and communication initiatives aimed at improving the ARC reputation and brand both with its employees and within the sector.


Programme

2019/2020 2018/2019

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Budget(R’000)

ActualExpenditure

(R’000)


(R’000)

Programme 9: Administration and Corporate

Affairs245 810 238 699 7 111 207 354 194 693 12 661

Total 245 810 218 699 27 111 207 354 194 994 12 361


ARC-ANIMAL PRODUCTION

The ARC-Animal Production (ARC-AP) Campus con-ducts research and development in all areas of animal production at its Irene research site and several satellite stations strategically positioned in different agro-eco-logical regions distributed nationwide. The aim of the Campus is to develop and transfer new technologies and agricultural know-how in order to ensure sustain-able livestock production.

The Campus’ work covers the entire value chain from primary to tertiary agriculture. Animal Production re-search is organised along the following focus areas:

• Animal Nutrition;• Germplasm Conservation and Reproductive Bio-

technology; • Animal Breeding and Genetics;• Meat Science and Technology;• Range and Forage Sciences; and• Quantitative and Qualitative Analysis.

In addition to research, the Campus manages the Na-tional Livestock Recording and Improvement Schemes (Beef, Dairy, Smallstock and Kaonafatso Ya Dikgomo) and the National Animal Database (INTERGIS) on be-half of the DALRRD. ARC-AP is also a custodian of herds and flocks of adapted indigenous animals, na-tional forage genebank, animal biobank, national cul-ture collection of beneficial gastrointestinal and foodfermentation organisms.

The work of the ARC-AP is delivered through the follow-ing Programmes:

• Programme 2: Animal Health, Production and Im-provement;

• Programme 3: Natural Resources Management; and

• Programme 6: Smallholder Agricultural Develop-ment.

310. RESEARCH HIGHLIGHTS


310. RESEARCH HIGHLIGHTS___________________________________________________

FIVE YEAR STRATEGIC HIGHLIGHTS___________________________________________________

Smallholder Farmer Support Through The Kaonafatso Ya Dikgomo (KyD) Scheme

The General Household Survey (StatsSA, 2016) shows that 69% of approximately 588 000 agriculture households that own cattle have small herds of between one and ten head of cattle, while only 2.8% own herds of more than 100 head of cattle.

KyD is implemented in terms of the Animal Improvement Act, 1998 (Act No. 62 of 1998) and it is a special purpose vehicle that was designed to facilitate the participation of these smallholder farmers in the mainstream livestock in-dustries. Smallholder farming is characterised by low calv-ing rates,highmortalityand lowherdofftakebecauseoflimited market access.

Participation in theKyDSchemequalifies the farmers toreceive science-supported services that include informa-tion dissemination and technology transfer sessions about various livestock farming topics ranging from basic animal husbandry practices, animal health, veld condition assess-ment, record keeping, market access, etc. to enhance the capacity of farmers. These services are also suited to land reform beneficiaries, the youth and new entrants to theagricultural sector. The number of farmers participating in KyD increased steadily from 8 434 in 2015/16 to 8 677 in 2017/18 when the Scheme started to experience funding challenges. Average calving rates among KyD farmers increased from 41% in 2015/16 to 57% in 2017/18 while herd mortality rates remained steady at 5% during the sameperiod.Herdofftakeratesimprovedfrom6%duringthe drought period of 2015/16 to 11% in 2017/18. Because of limited funding, audited KyD performance plummeted to 1 781 and 4 625 participants in 2018/19 and 2019/20, respectively. This financial throttle upset the remarkablegains of the internship Programme that was introduced in 2012 when KyD expanded to all nine provinces.

Farmers attending KyD farmers day.

The highlight of this internship was its high turnover rate during the 2017/18 when 50% of the candidates left for for-mal employment. One of the former interns is currently a fulltime cattle farmer. KyD farmers’ days increased from 7 in 2015/16 to 39 in 2016/17 even though these events de-clined to 29 in 2017/18 reaching the lowest performance in 2018/19. KyD farmers’ days had a relatively large audience with total attendance of 3 677 in 2017/18.

After starting to focus on livestock auctions in 2017/18, KyD increased its role in livestock auctions by enabling 691 farmers to earn more than R12 million from the sale of 1 417 head of cattle and 825 goats, in 2018/19. The implementation of animal movement restriction due to the Foot-and-mouth Disease (FMD) outbreak slowed the mo-mentum of livestock auction in 2019/20.

Five KyD farmers fattened 2 039 head of cattle through feedlots in 2017/18 indicating another breakthrough in unlocking the beef value chain. KyD in collaboration with Abaqulusi Livestock Association, a maiden auction sale house was conducted at Kwafuduka village in Vryheid, a KyD stronghold in KwaZulu Natal on 5 June 2019. Twenty farmers participated in the lucrative event selling 100 head of cattle and managed to generate approximately R800 000. The highlight for this event was that one of the farmers sold 30 weaners for R184 000. Farmers expressed their gratitude for the support from both the ARC and the De-partment of Agriculture.

The number of farmers supported through KyD

overthepastfiveyears.

The National Beef Improvement Scheme Provided Valuable Scientific Services To Farmers

The Scheme was established more than six decades ago by the Department of Agriculture to provide national an-imal improvement services to ensure continuous genetic improvement of the national beef herd. Since then, the Scheme has played a central role in facilitating tremendous gains in our understanding of the science of genetic im-provement and management of beef cattle in South Africa. These gains contributed enormously in breeding cattle that areeconomicallyandbiologicallyefficient,whichisvitalforthe profitable and sustainable beef production.Thiswaspossiblethroughscientificservicesprovidedtofarmers,in-formation dissemination and training.


The Scheme is one of only two entities on the Continent that is internationally accredited by the International Committee on Animal Recording (ICAR). In 2019, ICAR renewed the CertificateofQualityinrecognitionofthequalityofservicesrendered by the Scheme. The industry is therefore assured of the services that comply with the highest international standards. The scheme also plays an important role in provision of expert national animal improvement advisory services to other countries on the Continent. As a result, experts in the Scheme were invited to Namibia to provide expertadvisefeedefficiencytestingattheirgovernmentaltesting facility in 2015.

In terms of application of advanced technology in animal improvement, the Scheme has introduced the latest tech-nologiesforthebenefitofthebeefindustry.TheSchemeis one of two organisations in South Africa that render Real Time Ultrasound (RTU) scanning services for assessing carcasstraits.TheRTUscanningallowscost-effectiveandnon-invasive data collection on attributes related to car-cass yield and quality. In 2019, six of ARC technicians were accredited for RTU scanning by Dr Mike McNeil from the USA, an internationally recognised expert in the applica-tion of ultrasound technology for breed improvement.

Scanning animals in Phase C.

The INTERGIS computer system, a national animal da-tabase managed by the ARC on behalf of the DALRRD, is central to the capturing and processing of performance data collected through the Scheme. This computer system has undergone further enhancement to improve service delivery.Specifically,newfunctionalitiesweredevelopedinthelastfiveyearstoaccommodaterequestsfromindustryforimprovedprocessingoffeedefficiencydata.Thenota-ble development is the addition of an electronic application developed by ARC Programmers that allows farmers to capture performance data using a cell phone. This enabled the ARC to render beef improvement services that are in line with the needs of the industry. In order to facilitate an inclusive-stud breeding sector, the Scheme has increased participationofblackfarmersinthefeedefficiencytestsatARC test centres.

One of the key highlights over the past 5 years is the in-volvement of the Scheme in the national Beef Genomics Programme (BGP) funded by the Technology Innovation Agency and launched in 2015 as part of the Consortium established by the ARC with the beef industry and local universities.

Through this progarmme, the Scheme has tested more than 850 bulls for feed efficiency, generating an incomeof more than R4,7 million. The Scheme was appointed as the accreditation authority for the Beef Genomics Pro-gramme, for private test stations that rendered services to the Programme. The Scheme has also been actively involved in extensive information dissemination over the past 5 years to ensure a skilled beef sector. To this extent, 50 popular publications were published and more than 20 radio talks were made including a series of television in-terviews.AtotaloffiveeditionsoftheAnnualBeefBulletinwere published. The Annual Beef Bulletin is very popular and is made available electronically to all stakeholders in the industry. To honour our commitment towards training and capacity building, we also presented more than 15 for-mal training initiatives where more than 45 presentations were delivered. The content of our training is also captured in our Beef Production Manual that was revised in 2017 and distributed to the farming community. The training manual is complemented with the Scheme pamphlet that is presented in three languages. Since farmers’ days are an excellent platform to reach farmers, from emerging to commercial, the Scheme has hosted more than 26 farmer informationdaysoverthefiveyears,coveringtopicsofin-terest to the farming sector. The work of the Scheme is of vital importance to the agricultural sector and the economy. A recent study indicated that for every Rand invested in performance recording and research, the return is R1,31. This emphasises the important role of the Scheme in the economy of the country.

___________________________________________________

RESEARCH HIGHLIGHTS FROM THE 2019/20 FINANCIAL YEAR

___________________________________________________

Programme 2: Animal Health, Production And Improvement

ImprovIng Feed eFFIcIency Through usIng sTaTe oF The arT growsaFe BeeF sysTems Technology

TheBullTestingCentreinIrenehadthefirstconsignmentof Brahman and Simbra bulls entered into a new Resid-ual Feed Intake test using the state-of-the-art GrowSafe Beef System. The GrowSafe Beef System was originally acquired for research purposes and is currently being used extensively in research projects. This particular test is the firsttoberenderedasaroutinefeedefficiencytestmakinguse of the GrowSafe System. The length of the GrowSafe test has also been reduced from the conventional 84 days to70days,whichwillenablefarmerstomakesignificantcost-savingsandensurethatfeedefficiencytestingisaf-fordable to the wider stud breeding industry. This devel-opment is well aligned with the National Beef Genomics Programme to facilitate implementation of genomic-en-hanced breeding values locally.Other important benefitsof the GrowSafe System are that key animal performance data such as daily weight gain, feed and water intake, and behaviour is captured in real-time. The ARC is proud to have brought this technology into the country.


Young bull at the water trough. The platform scale that takes

partial body weight is visible. A formula is used to convert partial body weight to full body weight.

Young bull eating from one of the feeding bins. Note the yellow RadioFrequencyIdentification(RFI)eartagintherightear.

Itidentifiesthebullwhenitentersthebintoeat.


a comparIson oF Three models used To deTermIne waTer Fluxes over The alBany ThIckeT, easTern cape,

souTh aFrIca

Measuring water use of any landscape is crucial if we are to understand the implications of land use and land cover change on catchment scale water use and water delivery. Water is one of the crucial limiting factors in the develop-ment of agriculture in arid and semi-arid rangelands, and understanding how it is used by the indigenous vegeta-

tion to support livestock production is important. The Al-bany Thicket biome is a unique vegetation type which is found mainly along the eastern seaboard of southern Af-rica, and has supported livestock production (mainly An-gora and Boer goats), but also cattle and sheep. The veg-etation is endowed with many unique taxa and functional plant types, including many crassulacean acid metabolism (CAM) plants. CAM is the third photosynthetic pathway, and it enables plants in arid zones to capture carbon at night, to store the carbon in an intermediate chemical, and then to convert that carbon to carbohydrates during the day when light energy is available. The Albany Thicket biome, where this research was conducted, contains many CAM species, but is particularly well-known for Portulacaria afra, or spekboom. Spekboom is being planted in these parts of southern Africa as part of an extensive, internationally funded carbon sequestration project being funded through the DEA via the Expanded Public Works Programme. Un-derstanding thewater useefficiencyof the thicket is es-sential to being able to predict how much carbon can be sequestrated by spekboom because there is a fundamen-tal relationship between water use and carbon gain. It is also essential to know what the impact of planting spek-boomwillhaveoncatchmentscalerun-offandwaterloss.This work makes use of data from an eddy covariance sys-temtoverifyoutputfromthreedifferentmodelsofevapo-transpiration. Each model is independent of the other, and they all produce very similar results, indicating that Albany Thicketisnotaswaterefficientasoriginallythought.Thepolicy implications are that planting spekboom extensively throughouttheAlbanyThicketwillresultinsignificantwaterloss through evapotranspiration, equivalent to that experi-enced by other C2 and C4 plants.

Collectingcarbonandwaterfluxesdatausing

the Eddy Covariance equipment.


Carbonandwaterfluxesexperimentalsite

at Endwell farm in the Eastern Cape.

___________________________________________________

KNOWLEDGE DISSEMINATION___________________________________________________

Some of the knowledge dissemination interventions for 2019/20 include the following:

JOURNAL ARTICLES

Alayande, K.A., Aiyegoro, O.A. & Ateba, C.N. 2019. Whole genome sequence of Lactobacillus acidophilus PNW3 isolated from weaned piglets of indigenous South African Windsnyer pig breed. Microbiology Resource Announce-ment 8:e00362-19 https://doi.org/10.1128/MRA.00362-19.

Alayande, K.A., Aiyegoro, O.A. & Ateba, C.N. 2020. Pro-biotics in Animal Husbandry: Applicability and Associated Risk Factors. Sustainability Journal (MDPI) 12(3):1087 https://doi.org/10.3390/su12031087.

Coetzer, G.M., De Wit, M., Fouché, H.J. & Venter, S.L. 2019.Climaticinfluencesonfruitqualityandsensorytraitsof cactus pear (Opuntia ficus-indica): a 5-year evaluation. Acta Horticulturae 1247:23-30 DOI: 10.7660/ActaHor-tic.20191247.4.

Coetzer, G.M., Fouché, H.J. & Smith, M.F. 2019. Geno-type × environmental interactions of cactus pear (Opuntia ficus-indica) in the semi-arid regions of South Africa: fruit production. Acta Horticlturae 1247:31-40

De Wit, M., Du Toit, A., Fouché, H.J., Hugo, A. & Venter, S.L. 2019. Screening of cladodes from 42 South African spineless cactus pear cultivars for morphology, mucilage yield and mucilage viscosity. Acta Horticulturae 1247:47-56 DOI: 10.7660/ActaHortic.20191247.7.

De Wit, M., Fouché, H.J., De Waal, H.O., Coetzer, G.M. & Venter, S.L. 2019. Promoting the potential of spineless cactus pear (Opuntia ficus-indica) as a multi-use crop at the Oppermansgronde community in the Free State prov-ince of South Africa. Acta Horticulturae 1247:57-62 DOI: 10.7660/ActaHortic.20191247.8.

De Wit, M., Fouché, H.J., De Waal, H.O., Coetzer, G.M. &Venter, S.L. 2019.The effect of fostering partnershipson broadening the food base: the role of cactus pear, an underutilised crop with unlimited potential - the South Af-rican perspective. Acta Horticulturae 1247:237-244 DOI: 10.7660/ActaHortic.20191247.32.

Dlamini, N.M., Visser, C., Snyman, M.A., Soma, P., Muchad-eyi, F.C. 2019. Genomic evaluation of resistance to Hae-monchus contortusinaSouthAfricanDohneMerinoflock.Small Ruminant Research https://doi.org/10.1016/j.small-rumres.2019.04.020 DOI 10.7660/ActaHortic.20191247.5.

Fouché, H.J., Coetzer, G.M. & Smith, M.F. 2019. Geno-type × environmental interactions of cactus pear (Opuntia ficus-indica) in semi-arid regions of South Africa: cladode production. Acta Horticulturae 1247:81-90 DOI: 10.7660/ActaHortic.20191247.11.

Fushai, F., Tekere, M., Masafu, M., Akinsola, C.M., Sieb-rits, F., Nherera-Chokuda, F.V. & Kanengoni, A.T. 2019. Co-products in maize-soybean growing-pig diets altered in vitroenzymaticinsolublefibrehydrolysisandfermentationin relation to botanical origin. South African Journal Animal Science 49 (2):

Grobler, S.M., Scholtz, M.M., Neser, F.W.C., Greyling, J.P.C.&Morey.L.2019.Effectofcontrolledbreedingonperformance of beef cattle in Central Bushveld bioregion. South African Journal of Animal Science 49:1013-1020.

Kekana, T.W., Marume, U., Muya, M.C., & Nherera-Choku-da, F.V. 2019. Lactation performance and blood metabo-lites in lactating dairy cows micro-supplemented with Mo-ringa oleifera leaf meal. South African Journal of Animal Sciences 49(4):709-716.

Liyou, A.N, Sadie, L., Wang, Z., Liu, Z., Liu, R., Xue, F., Xu, J., Nedembale, L.T., Yang, L., Tian, X.C., Su, L. & Du, Fllang. 2019. Magnesium is a critical element for competent development of bovine. Elsevier https://doi.org/10.1016/j.theriogenology.

MacNeil, M.D., Scholtz, M.M., Jordaan, F.J. & Maiwashe, A. 2019. Alternative models for genetic evaluation of feed intake by Afrikaner cattle. South African Journal of Animal Science 49:605-611.

Madilindi, M.A., Banga, C.B., Bhebhe, E., Sanarana, Y., Nxumalo, K.S., Taela, M.G., Magagula, B.S. & Mapholi, N. 2019. Genetic diversity and relationships among three Southern African Nguni cattle populations. Tropical Animal Health and Production htps://doi.org/10.1007/s11250-019-02066-y.

Mapeka, M.H., Pilane, M.C., Treadwell, R., Ng’ambi, J. & Banga, C. 2019. Comparison of embryo developmental rates in Nguni, Bonsmara and Boran beef cattle breeds followinginvitrofertilizationandartificialinsemination.Af-rican Journal of Biotechnology 18(30):962-969.


Marais, A., Kotzé, E., Labuschagne, J., Visser, L. & Morris, C.D. 2020. Proposed adaptation of the KMnO4 oxidation method for determining active carbon for South African soils. South African Journal of Science 116:1-2 https//doi.org/10.17159/sajs.2020/6443.

Marima, J.K., Nel, C.L., Marufu, M.C., Jonsson, N.N., Dube, B. & Dzama, K. 2020. A genetic and immunological comparisonoftick-resistanceinbeefcattlefollowingartifi-cial infestation with Rhipicephalus ticks. Experimental and Applied Acarology https://doi.org/10.1007/s10493-020-00480-8.

Mendonça, F. S., MacNeil, M.D., Leal, W.S., Azambuja, R.C.C., Rodrigues, P.R., & Cardoso, F.F. 2019. Cross-breedinginbeefcow-calfproductionandefficiency:evalu-ation of Angus, Caracu, Hereford and Nelore breed direct, maternal and heterosis effects.Translational Animal Sci-ences 3:1286-1295 DOI: 10.1093/tas/txz096.

Moholisa, E., Strydom, P.E, Van Heerden, I. & Hugo, A. 2019. Influenceofproductionsystemsonselectedbeefquality and selected sensory attributes. South African Jour-nal of Animal Science 49:1158-1173.

Mokolobate, M.C., Scholtz, M.M. & Neser, F.W.C. 2019. Investigating novelty traits to improve cow-calf efficiencyin South African Afrikaner, Angus and Charolais for cli-mate-smart production. South African Journal of Animal Science 49:605-611.

Molotsi, A.H., Dube, B. & Cloete, S.W.P. 2019. The Current Status of Indigenous Ovine Genetic Resources in South-ern Africa and Future Sustainable Utilisation to Improve Livelihoods - Review. Diversity 12(14):1-16.

Morris, C. 2019. Grasslands and Climate change. Afri-can Journal of Range and Forage Science 1-2 https://doi.org/10.1017/9781108163941.

Morris, C.D. & Scott-Shaw, R. 2019. Potential graz-ing indicator forbs for two mesic grasslands in South Africa. Ecological Indicators https://doi.org/10.1016/j.ecolind.2019.105611.

Muller F., L., Samuels, M.I., Cupido, C.F., Swarts, M.B.V., Amary, N.M., Hattas, D., Morris, C., Cyster, L. & Boatwright, J.S. 2019. The impacts of season and livestock manage-ment strategy on the quality of diets selected by goats and sheep in the semi-arid rangelands of Namaqualand, South Africa. African Journal of Range and Forage Science 36 (2):105-114 https://doi.org/10.2989/10220119.2018.1552622.

Ndleleni, N.W., Malebana, I.M.M., du Toit, C.J.L., Nephawe, K.A., Meeske, R. & Nkosi, B.D. 2020.Effectsofsilagesealingfilmsonfermentationdynamicsofensiledmaize and nutrient utilization by Damara rams. South Afri-can Journal Animal Sciences 50:17-25.

Nkosi, B.D., Meeske, R., Muya, M.C., Langa, T., Thom-as, R.S., Malebana, I.M.M., Motiang, M.D. & van Niekerk, J.A.2020.Microbialadditivesaffectsilagequalityandru-minal dry matter degradability of avocado (Persia Ameri-cana) pulp silage. South Afican Journal Animal Sciences 49:997-1007.

Nkosi, B.D., Phenya, J.S.M., Malebana, I.M.M., Muya, M.C. & Motiang, M.D. 2019. Nutrient evaluation and ru-minal degradation of dry matter and protein from amarula (Sclerocarya birrea), (Macadamia integrifolia) and baobab (Adansonia digitata L.) oilcakes as dietary supplements for ruminants. Tropical Animal Health and Production https://doi.org/10.1007/s11250-019-01896-0 51:1981-1988.

Opoola, O., Mrode, R., Banos, G., Ojango, J., Banga, C., Simm, G. & Chagunda, M.G.G. 2019. Current situation of data recording, dairy improvement infrastructure, human capacityandstrategicissuesaffectingdairydevelopmentin sub-Saharan Africa. Tropical Animal Health and Produc-tion, https://doi.org/10.1007/s11250-019-01871-9.

Oyedemi, S.O., Nwaogu, G., Chukwuma, C.I., Adeyemi, O.T., Matsabisa, M.G., Swain, S.S. & Aiyegoro, O.A. 2019. Quercetin modulates hyperglycaemia by improving the pancreatic antioxidant status and enzymes activities linked with glucose metabolism in type 2 diabetes model of rats: In silico studies of molecular interaction of quercetin with hexokinase and catalase. Journal of Food Biochemis-try 00:e13127. https://doi.org/10.1111/jfbc.13127.

Palmera, A.R., Ezennea, B.G.I., Chorumaa, D.J., Gwatea, O., Mantela, S.K. & Tannera J.L. 2020. A comparison of threemodelsusedtodeterminewaterfluxesovertheAlba-ny Thicket, Eastern Cape, South Africa. ELSEVIER www.elsevier.com/locate/agrformet.

Pophiwa, P., Webb, E.C., & Frylinck, L. 2020. A review of factorsaffectinggoatmeatqualityandmitigatingstrategies.Small Rument Research 183:1-7 https://doi.org/10.1016/j.smallrumres.2019.106035.

Ramatsabana, P., Tanner, J., Mantel, S., Palmer, A. & Ezenne, G. 2019. Evaluation of remote-sensing based es-timates of actual evapotranspiration over (diverse shape and sized) palmiet wetlands. Geosciences 9: 1-17.

Ramukhithi, F.V., Lehloenya, K.C., Antoinette Kotze, A., Nephawe, K.A., Chokoe, T.C., Seshoka, M.M., Jonker, T. & Nedambale, T.L. 2019. Phenotypic Characterization of South African unimproved indigenous and Tankwa Goats. American Journal of Animal and Veterinary Science DOI: 10.3844/ajavsp.

Raphalalani, Z.C., Nedambale, T.L., Nengovhela, N.B. & Nephawe,K.A.2020.Aninvestigationoffactorsinfluenc-ing synchronization response, conception and calving rate of communal cows in Limpopo Province, South Africa. Ap-plied Animal Husbandry & Rural Development 13: 13-22: www.sasas.co.za/aahrd.


Schroeder, A., Samuels, M.I., Swarts, M., Morris, C., Cu-pido, C., & Engelbrecht, A. 2019. Diet selection and pref-erence of small ruminants during drought conditions in a dryland pastoral system in South Africa. Small Ruminant Research 176:17-23.

Trytsman, M., Muller, F.L. & van Wyk, A.E. 2020. Diversi-ty of grasses (Poaceae) in Southern Africa, with empha-sis on the conservation pasture genetic resources. Ge-netic Resources Crop Evolution 67:875-894 https://doi.org/10.1007/s10722-020-00886-8.

Upperman, L. R., Kinghorn, B. P., MacNeil, M.D. & Van Eenennaam, A. L. 2020. Management of lethal recessive alleles in beef cattle through the use of mate selection soft-ware. Genetic Selection Evolution 51:36.

Van der Westhuizen, L., MacNeil, M.D., Scholtz, M.M., Neser, F.W.C., Makgahlela, M.L. & van Wyk, J.B. 2019. Genetic variability and relationships in nine Southern Af-rican cattle breeds using microsatellite markers. Tropical Animal Health and Production https://doi.org/10.1007/s11250-019-02003.

Van der Westhuizen, L., MacNeil,M.D., Scholtz, M.M. & Neser,F.W.C.2019.Identificationofgenomicregionsthatcontribute to wet carcass syndrome in sheep. South Afri-can Journal of Animal Science 49:845-856.

van Hooft, P., Getz, W.M., Greyling, B.J. & Bastos, A.D.S. 2019.Anaturalgenedrivesysteminfluencesbovinetuber-culosis susceptibility inAfrican buffalo: Possible implica-tions for disease management. PLoS ONE 14(9):e0221168 https://doi.org/10.1371/journal.pone.0221168.

Venter, S.L., Fouché, H.J., De Wit, M., Mavengahama, S., Coetzer, G.M., Swart, W.J. & Amonsou, E.O. 2019. .Pro-moting the potential of spineless cactus pear (Opuntia fi-cus-indica) as a multi-use crop at the Oppermansgronde community in the Free State province of South Africa. Acta Horticulturae 1247:57-62.

Wolff, M.G., Cockburn, J.J., De Wet, C., Bezerra, J.C.,Weaver, M.J.T., Finca, A., De Vos., Ralekhetla, M.M., Libala, N., Mkabile, Q.B., Odume, O.N., & Palmer, C.G. 2019. Exploring and expanding transdisciplinary research for sustainable and just natural resource management. Ecology and Society 24 https://doi.org/10.5751/Es-11077-240414.

THESES AND DISSERTATIONS

Masters Chimwaza, T.W. 2019.Artificialinseminationasadriverforbeef production in northern KwaZulu-Natal`s smallholder farmers and its role in the provision of adequate and quality beef to the market. Master in Sustainable Agriculture and Rural Development, University of Free State.

Dikotope, L.M.2019.TheeffectsofMegasphaera elsdenii on dairy heifers performance. Master of Science (Agricul-ture), University of South Africa.

Du Plessis, S. 2019. Evaluation of lamb and mutton qual-ity at retail level in the Tshwane metropole. Master Scien-tiae Consumer Science (Food Science), University of the Free State.

Jiyana, S.T. 2019. The effects of different dietary fibrelevels on methane production and growth performance of bonsmara and nguni steers. Master of Science (Agricul-ture), University of South Africa.

Kgopong, R.J.G. 2019.EffectsofOrange (Citrus sinen-sis)PULP-BuffaloGrass(Cenchrus ciliaris) Silage on Di-gestibility, Growth Performance and Blood Metabolites of Windsnyer -Type and Large White X Landrace Crossed pigs. Master of Science in Agriculture (Animal Sciences), University of Venda.

Letsoalo, N.L. 2019. Rangeland management practices among emerging livestock farmers in Gauteng Province, South Africa. Master of Science (Agriculture), University of South Africa.

Mbhele, F.P. 2019. Strategies to reduce livestock mortal-ity rates during drought season by smallholder livestock farmers in Dannhauser, Amajuba district, KwaZulu-Natal. Master in Sustainable Agriculture and Rural Development, University of Free State.

Moroaswi, L.S. 2019. The Impact and effectiveness offarmer support Programme for smallholder farmers: impli-cations for sustainable food security in Tshwane Metropoli-tan Municipality, Gauteng Province. Masters of Philosophy (Sustainable Agriculture), University of the Free State.

Muthivhi, J. 2019. Effects of ensiled sweet potatoes onblood glucose, nutrient digestibility and growth perfor-mance of large white and landrace pig. Master of Science in Agriculture (Animal Sciences), University of South Africa.

Myburgh, R.2019.VerificationoftheSouthAfricanPorkclasification system.MasterScientiaeAgriculturae (FoodScience), University of the Free State.

Ndhlazi, Z.E.E. 2019.Germination and seedling estab-lishment of indigenous legumes species: assessing the potential for mine rehabilitation. Master of Science (Plant Science), University of Pretoria.

Phenya, J.S.M. 2019. Evaluation of oils cakes Amarula (Sclerocarya birrea), (Macadamia integrifolia) and Baobab (Adansonia digitata L.) as protein supplements for rumi-nant diet. Master of Science (Agriculture), University of South Africa.

Zama, N.Z. 2019. The Relative Tolerance of Mesic Grass-land Species to Defoliation and Competition. Master of Sci-ence (Ecological Science), University of KwaZulu-Natal. Doctoral Finca, A. 2020. Social history of collective rangeland man-agement and its impact on the well-being of rural commu-nities in the Eastern Cape, South Africa. Doctor of Philoso-phy (Agriculture), University Republic of Ireland.


Maqhashu, A. 2019. Characterization and evaluation of reproduction performance in Bapedi sheep”. Doctor of Phi-losophy (Animal Science), University of Free State.

Mkhize, F.N. 2020. A critical analysis of the production andreproductionefficiencyofNgunicattle(Bos indicus af-ricanus) indifferentgeographicalregionsofSouthAfrica.Doctor of Philisophy (Animal Science), University of Pre-toria.

Mogoje, B.L.2019.Effectsof4X4diallelcrossbreedingofchickens on growth, production performance, genetics and phenotypic characteristics. Doctor of Philosophy (Agricul-ture), University of South Africa.

Muchesa, E.2019.Efficiencyofcommunalfarmers`mar-ket systems in the Mhondoro-Mubaira District, Mashona-land West, Zimbabwe. Doctor of Philosophy (Sustainable Agriculture), University of Free State.

Nduku, X.P.2019.Comparisonof theeffectsofMoringa oleifera leaf meal with probiotic and organic acid feed addi-tives for improved growth, performance, bone mineralisa-tion, intestinal integrity and meat quality of broiler chickens. Doctor of Philosophy in Agriculture (Animal Sciences), Uni-versity of Fort Hare.

Netshirovha, T.R. 2019. Selenium × zinc interaction on growth performance, carcass traits and semen quality of Large White × Landrace and Kolbroek boars. Doctor of Philosophy (Animal Science), University of KwaZulu-Natal.

Sebothoma, P.M. 2020. Nutrient digestibility, growth per-formance and carcass traits of indigeneous pigs and their crosses with large white pigs when fed on varying levels of crude protein. Doctor of Philosophy (Animal Science), University of KwaZulu-Natal.

Seshoka, L.M. 2019. Dietary inclusion levels of ensiled avocado (Persia amaericana) of oil cake into pig diets and their effects on the growth performance, nutrient digest-ibility. carcass characteritics and meat quality. Doctor of Technology (Agriculture), Central University of Technology.

Van Wyngaard, B.E.2019.Theeffectofdietaryomega-3fatty acidswith specific reference toEchium seed oil on pork quality. Doctor of Philisosphy (Food Science), Univer-sity of the Free State.

CHAPTERS IN BOOKS

Dixon, J., Garrity, D.P., Boffa, J.M., Williams, T.O., Amende, T., Auricht, T., Lott, R. & Mburathi, G. 2020. Perennial mixed and island farming systems: exploiting synergies for max-imum system productivity. Lay Knowledge of Ecosystem Services in Rural Eastern Cape Province, South Africa: Implications for Intervention Programme Planning. Water Economics and Policy 5: 1-29. In: Murata, C., Mantel, S., de Wet, C & Palmer, A. R. (eds.), Farming Systems and Food Security in Africa. New York, pp. 482-504.

CONFERENCE PROCEEDINGS

Basson, A., Frylinck, L. & Strydom, P. E. 2019. Poly-morphisms in the genes for glycolysis are associated with beef production and quality traits in South African purebred bulls (Poster-04-02, Paper 537). Proceedings of the 65th

International Congress of Meat Science and Technology (ICoMST), Potsdam, Germany, 4-9 August 2019, pp. 469-470.

du Plessis, S., Strydom, P.E., Hope-Jones, M. & Hugo, A. 2019. Fatty acid composition of South African lamb from three production systems (Poster P-01-29, Paper 545). Proceedings of the 65th International Congress of Meat Science and Technology, Potsdam, Germany, 4-9 August 2019, pp. 91-92.

Dube, B., Marima, K.J., Marufu, C.M., Muchadeyi, F., Ma-pholi, N.O., Jonsson, N.N & Dzama, K. 2019. Determining thegeneexpressionprofilesof17candidategenesforhostresistance to ticks in South African beef cattle. Proc. Assoc. Advmt. Anim. Breed. Genet. 23:346-349.

Hope-Jones, M., Strydom, P.E. & de Lange, L. 2019. MuscleProfiling:Variationincolourandpurgeacrossdif-ferent muscles of the beef carcass (Poster P-10-15, Pa-per 500). Proceedings of the 65th International Congress of Meat Science and Technology, Potsdam, Germany, 4-9 August 2019, pp. 745-746.

Jordaan, F.J., Scholtz, M.M., Neser, F.W.C., Mokolobate, M.C. & Theunissen, A. 2019.Ruminant production systems in sub-Saharan Africa to mitigate global warming. Proceed-ings of the 2nd International Conference on Tropical Animal Science and Production, 8-12 July 2019, Suranaree Uni-versity of Technology, Thailand, TFO006.

Moholisa, E., Strydom, P., Magoro, M., Mosimanyana K. & Hugo, A. 2019. Physio-chemical and microbial stabil-ity of bovine blood sausages (Poster P-04-18, Paper 517). Proceedings of the 65th International Congress of Meat Science and Technology, Potsdam, Germany, 4-9 August 2019, pp. 282-283.

Scholtz, M.M., Mokolobate, M.C., Pyoos, G.M., Jordaan, F.J., Theunissen, A. & Neser, F.W.C. 2019. Early warning systems are important for livestock industries to overcome climate change. Proceedings of the 2nd International Con-ference on Tropical Animal Science and Production. 8-12 July 2019, Suranaree University of Technology, Thailand, TFO00126.


ARC-ONDERSTEPOORT VETERINARY RESEARCH

The ARC-Onderstepoort Veterinary Research (ARC-OVR) Campus, has a long tradition of veterinary research since its founding in 1908 by Sir Arnold Theiler. It is nationally and in-ternationally recognized as a veterinary centre of excellence. TheARC-OVRisaflagshipCampusoftheARCandplaysanimportant role in maintaining the health of our national herd and wildlife.

ThemissionofARC-OVRistoprovidescientificsupportforVeterinaryServices ineffective riskmanagement forqualityof life for all in South Africa. The ARC-OVR strives to deliver world-classveterinaryresearchinprovidingscientificsupport.Research activities focus on the development and improve-ment of vaccines and diagnostic tests, applying the latest mo-lecular biological techniques.

ARC-OVR promotes animal health and welfare by providing an effective and efficient diagnostic service and producingvaccines against Foot-and-Mouth and tick-borne diseases. ARC-OVR is the collaborating centre for both the World Or-ganisation for Animal Health (OIE) surveillance and control of animal diseases in Africa and the Food and Agriculture Organisation (FAO) of the United Nations for the emergency preparedness for transboundary animal diseases for Africa.

The focus of research for ARC-OVR is as follows:

1. Epidemiology, Parasites and Vectors; 2. Vaccines and Diagnostic Developments;3. Public Health and Zoonosis;4. Vaccine Production; and5. Diagnostic Services.


___________________________________________________ FIVE YEAR STRATEGIC HIGHLIGHTS

___________________________________________________

New livestock vaccines targeted to smallholder cattle farmers

According to data from the DALRRD, approximately 40% of all livestock in South Africa is owned by smallholder farmers in rural communities. Considering this, increasing livestock farming production is an important strategy to help alleviate poverty and improve food security in South Africa. Besides providing food, clothing and other products, livestock are often a measure of wealth and social stand-ing; they are used for barter, as “lobola” at traditional wed-dings and also as a ‘bank’, whereby animals can be sold to pay for emergency needs. The African Continent is home to some of the most devastating animal diseases globally and disease outbreaks have a direct impact on livestock owners. Many of these are viral diseases and have been described as a bane of agricultural development. A highly effectivewayofcontrolling infectiousdiseases is throughvaccination, as an integral part of primary animal health-care. In general, commercial farmers vaccinate their live-stock with the current livestock vaccines, however, small-holder farmers are faced with many challenges that often inhibit vaccine use. A number of these challenges may be overcome by developing new generation vaccines that make use of cutting-edge technologies. In particular, these newer technologies are capable of lowering vaccine costs, improving accessibility and reducing the need for maintain-ing a continuous cold chain for their storage.

Scientists at ARC have developed a livestock vaccine to help overcome the challenges farmers experience with current vaccines for Rift Valley fever (RVF) and lumpy skin disease(LSD).BothRVFandLSDarenotifiablediseas-es and every suspected case of either disease must be reported to thenearest state veterinarian.This notifiableprocedure has been put in place as both diseases can re-sult in dire economic consequences if an outbreak is not reported early to enable implementation of preventative control measures. However, due to the sporadic nature of RVF outbreaks, farmers tend to only vaccinate their ani-mals when the risk of new outbreaks is high, but due to the speed at which new outbreaks spread, this practice plac-es the entire South African cattle, sheep and goat industry (and, humans who come in close contact with sick animals) in jeopardy. In contrast, vaccination against LSD tends to be practiced on an annual basis. Therefore, a 2-in-1 vac-cine protecting against RVF and LSD may overcome this problem and such a vaccine has been developed and test-ed at the ARC. The experimental studies under controlled conditions indicate that the vaccine is able to protect cattle against both RVF and LSD. The vaccine is given as a sin-gle dose and farmers need only buy one vaccine which will protect their cattle from both diseases. This is expected to be cheaper as farmers will only be buying one vaccine instead of buying two. The new vaccine will be easier to administer, is stable and safe and should provide long-term protection. Currently, most vaccines require refrigeration inorder toguaranteeefficacybut thenewvaccine isde-

signed to be heat-stable and may not require refrigeration. Before this vaccine becomes available to the public, what remains is to have it registered with the government regu-latory authorities. This is a lengthy process, but is neces-sary to ensure that the vaccine meets all safety and other requirements.

An important component of the project has been the build-ing of partnerships beyond the usual scope of vaccine development work. The South African-led research team included scientists from Onderstepoort Biological Products (OBP) in South Africa, the Canadian National Centre for Foreign Animal Diseases (NCFAD), the Canadian Vaccine and Infectious Disease Organisation (VIDO-InterVac), the University of Alberta in Canada and the Human Sciences Research Council (HSRC) and was funded by the Canadi-an International Development Research Centre (IDRC) in partnershipwithGlobalAffairsCanada(GAC).Toensurethe relevance of the vaccine to farmers in Africa, the vac-cine development project used an integrative and gender responsive multi-pronged approach, linking the vaccine development with farmer education, economics and social sciences. This involved developing training courses for veterinary technicians, field officers and emerging farm-ers, engaging directly with farming communities, and de-veloping and disseminating livestock disease information via pamphlets and brochures. In particular, a manual titled “A Basic Cattle Health and Care Manual for Farmers” has been developed for animal health technicians and farm-ers to facilitate education in livestock diseases and primary (preventative) healthcare. The information materials devel-opedwithin the project have also beenmodified for useoutside South Africa and translated into local languages, and most are now available on the ARC Hub smartphone app.

Partnerships build beyond the usual scope of vaccine

development: The CIFSRF project team.

Meeting with Argentinian Agricultural delegation

at Grain SA NAMPO Harvest day event.


Development of DNA vaccine for Heartwater

The causative agent of heartwater, Ehrlichia ruminantium, is an obligate intracellular rickettsial agent and therefore cell-mediated immunity (CMI) is expected to play an im-portant role in protection. It is known that pathogen proteins may contain epitopes, which inhibit protective immune responses or induce immunopathology. These negative effects canbeavoided ifT cell epitopes that specificallystimulateCMIareidentifiedforuseinavaccine.Themainfocus of the research done at the ARC Cellular Immunity Department is next generation vaccine development, and to understand the underlying immune responses during disease and after challenge. In this regard we have fo-cussed on heartwater vaccine development that includes theidentificationofepitopesthatactivatetheTh1cellularimmune response to induce T cell help (CD4 T cells) and infected cell killing through CD8 T cells. Epitopes on E. ruminantiumproteinswere identifiedand formulated inamulti-epitope DNA vaccine that was tested in sheep. This prototype vaccine protected 60% (3/5) sheep against an experimental tick challenge and is being patented. Current-lyweareinvestigatingdifferentdeliverysystemsincludingnano-vaccines.

Next generation sequencing and immune transcriptome sequencing of heartwater naïve and immune sheep pe-ripheral blood mononuclear cells (PBMC) has allowed in depth investigation to identify additional relevant immune responses for heartwater protection. The importance of the activation of an innate immune response was highlighted as well as a role for T helper 1, T helper 2 and T helper 17 cells were unravelled. The top 5 adaptive immune path-waysidentifiedareTcellreceptor,Bcellreceptorsignal-ling, natural killer cell mediated cytotoxicity, chemokine sig-nalling and Fc gamma R mediated phagocytosis pathways. In an attempt to search for additional vaccine candidates or improve the current heartwater vaccine design, a genome-wide transcriptionalprofileofE. ruminantium (Welgevon-den strain) replicating in bovine endothelial cells (BA886) and Ixodes scapularis embryonic tick cells (IDE8) was per-formed. The RNA was collected from the infective extra-cellular form, the elementary bodies (EBs) and vegetative intracellular form, reticulate bodies (RBs) and was used for transcriptome sequencing. Several genes previously impli-cated with adhesion, attachment and pathogenicity were exclusively up-regulated in the EBs from bovine and tick cells. Similarly, genes involved in adaptation or survival of E. ruminantium in the host cells were up regulated in the RBs from bovine cells. Thus, it was concluded that those genes expressed in the EBs might be important for infec-tion of mammalian and tick host cells and these may be tar-gets for both cell and humoral mediated immune respons-es. Alternatively, those exclusively expressed in the RBs may be important for survival in the host cells. Exported or secreted proteins exclusively expressed at this stage are ideal targets for the stimulation of cytotoxic T-lymphocyte immune responses in the host.

Endothelial cells infected with Ehrlichia ruminantium.

Immune transcriptome sequencing is a novel method of understanding the global immune responses of diseases that is applicable to many diseases and vaccine models, thus making us one of the few laboratories in the world able to interpret the immune responses induced in large animal diseasemodels.An effective new generation heartwatervaccine will enable subsistence and commercial farmers to introduce more productive high-grade goat, sheep and cattle breeds in endemic areas of southern Africa. This will result in improved animal welfare, increased productivity and income by ensuring sustainable and profitable pro-duction. Improved livestock will also reduce the need for largeherdsandthusbenefittheenvironment.Asaferandmoreeffectivemethodof controlwould thereforehaveatremendous positive economic and social impact on rural and peri-urban communities. Subsistence and commercial farmers, the red meat, hide and wool industries are all ben-eficiariesofeffectivecontrolofheartwater.

Merino sheep in a heartwater multi-epitope DNA vaccine trial.


Rabies Research Laboratory

The genus Lyssavirus consists of 16 recognised viral spe-cies, and all cause a fatal encephalitic disease known as rabies. The prototype member of the Lyssavirus genus is the well-known rabies virus (RABV), while all other species in the genus are referred to as rabies-related viruses. The overall public health burden of these lyssaviruses is under-estimated due to limited surveillance and diagnosis capac-ity, resulting in an inaccurate overall representation of their actual impact. Molecular and immunological analysis un-dertakenonthevirusobtainedfromaNatallong-fingeredbat in Limpopo was done in collaboration with the Universi-ty of Pretoria Viral Zoonoses Group. The virus was isolated in suckling mice and shown be a putative new Lyssavirus species. Since the virus is very diverse, commercial rabies vaccines based on a RABV backbone will presumably not provide complete protection and contact with rabid bats should be avoided.

Tuberculosis Research Laboratory

The Tuberculosis laboratory at the ARC is mandated to di-agnose Mycobacteriosis in animals including bovine tuber-culosis (bTB). Bovine tuberculosis is a controlled disease in South Africa according to the Animal Disease Act, 1984 (Act No. 35 of 1984). Very recently, the laboratory has as-sessed the utility of the Xpert ® MTB/RIF Ultra assay, an automated molecular test originally designed to improve the detection of tuberculosis (TB) and rifampicin resistance in clinical sputum samples of human origin, by conducting a comparative evaluation with a culture-based method rou-tinely used at the ARC. The Xpert ® MTB/RIF Ultra assay was found to provide rapid results with the results being available within two hours (whereas culture may take up to ten weeks to obtain results), allowing rapid diagnosis of the disease and early intervention by regulatory authorities. The results obtained showed that the Xpert ® MTB/RIF Ul-tra assay has great potential in improving bTB diagnosis in animals just as in humans. The outcome of this work was published in the Preventive Veterinary Medicine Journal, and the test method was since accredited by SANAS 9ISO IEC 17025:2017) and now included in the laboratory’s scope of testing activities, hence generating an external income for the organisation.

Research technician in the Tuberculosis laboratory inserting

samples in the Xpert ® MTB/RIF Ultra equipment.

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spaTIoTemporal dIsTrIBuTIon oF aFrIcan horse sIckness vIrus In souThern aFrIca

African horse sickness is seasonally endemic to South Af-rica, with the exception of the controlled areas in the West-ern Cape Province. Annual outbreaks of the disease occur throughout the infected zone and therefore no restrictions on equid movements are placed or implemented. Pro-tective measures such as annual vaccinations, localized movement restrictions at the source of an outbreak and protection against midges are encouraged by government, the equine industry and is definedby law.Currently, theonly commercially available vaccine is the polyvalent live attenuated vaccine from Onderstepoort Biological Prod-ucts (OBP), constituting seven of the nine serotypes circu-lating in South Africa.

The ARC developed a serotyping assay based on RT-PCR and Sanger sequencing, capable of distinguishing between thenineAHSVserotypesanddifferentiatingbetweenliveattenuatedvaccinestrainsandwild-typefieldviruses.Thisserotyping assay is currently applied to all AHSV positive samples submitted to the ARC, thereby informing the own-ers and government of the causative serotype and if the virus was vaccine derived or wild type. It was evident that during the 2018 / 2019 season the two dominant serotypes were serotype 2 in the Eastern Cape and serotype 8 in Gauteng. The sequence data obtained from tested sam-ples was used to evaluate the spatial temporal distribution of AHSVs in southern Africa. It was observed that multiple viral genotypes of a single serotype circulate concurrently in a season and each of these genotypes have the ability to overwinter and circulate over multiple seasons.

A Bayesian analysis programme called SPREAD was used to plot the phylogenetic relationship of the viruses on a map of southern Africa based on the GPS location of each sample. Interactive models based on the phylogenetic and spatial temporal relationship of the samples, indicated that the serotype 2 AHSVs in the Eastern Cape all share a closely related common ancestor and are therefore proba-bly due to a single virus introduction. In contrast, serotype 8AHSVs submitted fromGauteng, clustered in differentphylogenetic lineages and represents the high genetic di-versityofAHSVinSouthAfrica.Thisisthefirsttimeinthelong history of AHS research at the ARC-OVR that the ori-gin of each AHSV positive sample submitted for diagnostic confirmation to the laboratory is phylogenetically charac-terized and analysed in temporal and spatial relationship to other AHSVs. By analysing and characterizing the AHSVs obtained from active outbreaks, suspect as well as export cases, the number of vaccine-derived viruses could be de-termined as well as the possible distribution of genetically similar viruses to new locations.


Equid movement within the infected zone contributes enor-mously to the distribution of the disease. This could be due to the unrestricted movement of sub-clinically infected ani-mals within the infected zone. It is therefore imperative that equid owners enforce strict biosecurity measurements to ensure the safety of their animals.

The spatial and temporal distribution of AHSV serotype 2 in

relation to the phylogenetic clustering of each sample.

The spatial and temporal distribution of AHSV serotype 8 in

relation to the phylogenetic clustering of each sample.

evaluaTIon oF a lumpy skIn dIsease,

dIagnosTIc TesT and dIsease surveIllance In gauTeng

Lumpy skin disease (LSD) is a viral disease of cattle and is endemic in Africa. The presence of the disease results in international trade restrictions, while at the regional lev-el themost affected are small scale developing farmerswhose livelihoods depend on cattle farming. The disease cancausehighmorbidityandoccasionalmortality.Effec-tive vaccines are available to control LSD, but these are not always used due to the cost and the regional sporadic nature of outbreaks which may lead to lapses in vaccina-tion. This project aligns with risk mitigation to food security by helping to reduce the threat of outbreaks of LSD, which are felt hardest by developing farmers. Skills development was undertaken for developing farmers with education at farmer’s days such as talks, disease information pam-phlets and posters being displayed and handed out. A pilot LSD sero-surveillance (prevalence) study was performed in Gauteng Province in collaboration with the Gauteng Department of Agriculture and Rural Development’s (GDARDs) Veterinary Epidemiology Unit. The study was designed to identify possible “hotspots” requiring increased LSDvaccinationcoverage.Utilizinglaboratoryconfirmationof sero-positive animals in conjunction with information that was provided by the owners concerning the vaccination

status of the animal helped to identify areas where cattle had been exposed to the disease possibly through vacci-nation or natural exposure. There were three municipalities involved in the survey study, the City of Tshwane, Germis-ton and Randfontein. A total of 240 samples were randomly selected from 55 sampling points and tested for the pres-ence of neutralising antibodies against LSDV. The majority of the sampling points in the northern, north eastern and eastern parts of Gauteng where survey data was collected indicated that vaccination was practised on a regular basis. A region of potential concern was southern Gauteng where thehighnumberofsero-positivecattleidentifiedoccurredat sampling points where the majority of the respondents surveyed indicated that they had not vaccinated their cattle against LSD in the last 5 years. The sequencing of both new andpreviouslyisolatedLSDVfieldstrainsaidsinidentify-ingwhetherlive-attenuatedvaccinestrainsorfieldstrainsare circulating in populations where outbreaks are suspect-edtohaveoccurred.NineLSDVfieldstrainsisolatedfromactive LSD outbreaks in South Africa between 1991 and 2019 were fully sequenced using next generation sequenc-ing technologies for use in phylogenetic and virus evolu-tion analysis. Of concern, resulting from the current study isthedetectionofsixfieldstrains(isolatedbetween1991and 1997) with sequences similar to commercial vaccine strains.Thesefieldstrains,referredtoas“vaccine-derived”fieldstrainsrequirefurtherinvestigationtogainatrueun-derstanding of their role in the epidemiology of the disease. The ARC participation in various training and information sharing sessions is important in promoting the institute and the ARC. The project was involved in various activities linked to LSD and livestock health in general. Veterinarians from ARC had participated in a number of these activities.

Maximum likelihood phylogenetic tree showing the

sequences of the seven virus isolates from the University of Pretoria, Faculty of Veterinary Science.

The continuous education of rural and developing farmers is an important step in assisting them to understand the im-portance of primary animal healthcare practices. Materials previously developed such as the “Basic Cattle Health and Care Manual for Farmers” were distributed to farmers and various role players in the livestock sector at events such as NAMPO as well as at the ARC Agri-Indaba which was held at Irene in August 2019. Information packs were also given directly to farmers whenever the opportunity arose, as was the case during the Wallmansthal LSD outbreak in March 2019. Relevant animal disease content was devel-oped for the ARC Hub mobile phone application, a technol-ogy-driven platform to support farmers, research experts and advisors.


Programme 5: Agro-Processing, Food Technology And Safety

developmenT and sTrengThenIng oF radIo-analyTIcal and complemenTary TechnIques To conTrol resIdues oF veTerI-nary drugs and relaTed chemIcals In aquaculTure producTs

Seafood such as fish and shellfish are nutritious foodsthat comprise useful components of a heathy diet with an increasingly pivotal role in food security resulting in an unprecedented rise in the aquaculture industry globally. Approximately 73 % of the 110 million metric tons of glob-al seafood production in 2016 were for consumption. In South Africa, there is a tremendous increase in aquaculture farming and awareness with the country exporting 103457 tonsoffishandaquaticinvertebratesvaluedatUS$474million(DAFF,2017)in2016.SouthAfricanshellfishsuchas abalone, is reputed for its high quality due to exceptional flavour,textureandsize.TheDepartmentofEnvironment,Forestry and Fisheries is in the process of implementing recommendations of the Aquaculture Lab of Operation Phakisa that includes the need to establish a globally rec-ognised monitoring system in order to export aquacultured products. Some of the initiatives require the implementa-tion of microbiological, marine biotoxins, residue and haz-ardous substance monitoring and control programmes for themarine fish, including shellfish and finfish, to protectlocal consumers and to provide the National Regulator for Compulsory Specifications (NRCS) with the necessaryguaranteesfortheexportofculturedfishtotradepartnersand international markets. The compliance to the levels of various contaminants is a strict food safety outcome of the National Food Control Systems of various countries. The monitoring and control of these contaminants are further-morerequired in termsof theFoodstuffs,CosmeticsandDisinfectants Act, 1972 (Act No. 54 of 1972) of the South African Government and the FAO-WHO Codex Alimentar-ius Commission, to which South Africa is a signatory. The overall objective of the project is to improve the safety of marine shellfish consumed in SouthAfrica, thereby pro-moting better health for the population and promoting mar-ketacceptabilityofSouthAfricanshellfishproduce.

TheprojectfulfilstheDepartmentofEnvironment,Forestryand Fisheries (DEFF) responsibility in terms of the Marine Living Resources Act, 1998 (Act No. 18 of 1998) of en-suring food safety as well as meeting the requirements of theFoodstuffs,CosmeticsandDisinfectantsAct,1972(ActNo. 54 of 1972) and Codex alimentarius of which South Af-rica is a signatory. The stakeholders targeted by the project include regulatoryauthorities,marineshellfish farmers inSouth Africa farming the following species: abalone (Hal-iotis midae), oysters (Crassostrea gigas), mussels (Myti-lus galloprovincialis and Choromytilus meridionalis),finfish(Argyrosomus japonicus) and lobster (Seriola lalandi). The positive impacts the project has had on the stakeholders are effective laboratory and reference laboratory capaci-ty within South Africa. This will enable the DEA to provide therequiredfoodsafetyassurancesforfishproductsthatare harvested, hence progress towards accessing new in-ternationalmarkets. Increasing the trade of cultured fishwould ensure sustainable development of the aquaculture industry and thus job creation and food security.

SamplingofMarineShellfishinWesternCape

and Eastern Cape Provinces.

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JOURNAL ARTICLES

Abafe, O.A., Gatyeni, P. & Matika, L. 2020. A multi-class multi-residue method for the analysis of polyether iono-phores, tetracyclines and sulfonamides in multi-matrices of animal and aquaculture fish tissues by ultra-high per-formance liquid chromatography tandem mass spectrome-try. Food Additives & Contaminants: Part A 37(3): 438-450 https://doi.org/10.1080/19440049.2019.1705399.

Achatz, T.J., Pulis, E.E., Junker, K., Binh, T.T., Snyder, S.D. & Tkach, V.V. 2019. Molecular phylogeny of the Cy-athocotylidae (Digenea, Diplostomoidea) necessitates sys-tematic changes and reveals a history of host and environ-ment switches. Zoologica Scripta 48: 545–556.

Arega, S., Conan, A., Sabeta, C.T.,Crafford,J.E.,Went-zel, J., Reininghaus, B., Biggs, L., Leisewitz, A.L., Quan, M., Toka, F. & Knobel, D.L. 2020. Rabies vaccination of 6-week-old puppies born to immunized mothers: A Random-ized controlled trial in a high-mortality population of owned, free-roaming dogs. Tropical Medicine and Infectious Dis-eases 5:45 https://doi.org/10.3390/tropicalmed5010045.

Balinandi, S., Mugisha, L., Bbira, J., Kabasa, W., Naka-yiki, T., Bakkes, DK., Lutwama, J.J., Chitimia-Dobler, L. & Malmberg, M. (2019) General and Local Morphological Anomalies in Amblyomma lepidum (Acari: Ixodidae) and Rhipicephalus decoloratus Infesting Cattle in Uganda. Journal of Medical Entomology 56, 873-877.

Bhoora, R.V., Collins, N.E., Troskie, C., Marumo, R., La-buschagne, K., Smith, R.M., Dalton, D.L. & Mbizeni, S. 2020. Molecular genotyping and epidemiology of equine piroplasmids in South Africa. Ticks and Tick-borne Diseas-es 11:101358 https://doi.org/10.1016/j.ttbdis.2019.101358.


Blignaut, B., Van Heerden, J., Reininghaus, B., Fos-gate, G.T. & Heath, L. 2020. Characterization of SAT2 Foot-and-mouth Disease 2013/2014 outbreak viruses at the wildlife-livestock interface in South Africa. Trans-boundary and Emerging Diseases https://doi.org.10.1111/tbed.13493.

Burrow, H.M, Mans, B.J., Cardoso, F.F., Birkett, M.A., Ko-tze, A.C., Hayes, B.J., Mapholi, N., Dzama, K., Marufu, M.C., Githaka, N.W. & Djikeng, A. 2019. Towards a new phenotype for tick resistance in beef and dairy cattle: a re-view. Animal Production Science 59:1401-1427.

De Beer, C.J., Venter, G.J., Vreysen, M.J.B., Mulandane, F.C., Neves, L., Mdluli, S. & Koekemoer, O. 2019. Using genetic and phenetic markers to assess population isolation withinthesouthernmosttsetseflybeltinAfrica.Onderste-poort Journal of Veterinary Research 86(1):a1768 https://doi.org/10.4102/ojvr.v86i1.1768.

Dikhoba, P.M., Mongalo, N.I., Elgorashi, E.E. & Makha-fola, T.J. 2019. Antifungal and antimycooxigenic activity of selected South African plants species. Heliyon 5: e02668 https://doi.10.1016/j.heliyon.2019.e02668.

Elgorashi, E.E. & McGaw, L.J. 2019. African plants with anti-inflammatoryactivities:A review.South African Jour-nal of Botany 126: 142-169.

Elgorashi, E.E. 2019. Phytochemistry and pharmacolo-gy of the family Amaryllidaceae: An overview of research at RCPGD. Natural Product Communications 14(9):1-11 https://doi.10.1177/1934578X19872929.

Hlokwe, T.M., Michel, A.L., Mitchel, E., Gcebe, N. & Reininghaus, B. 2019. First detection of Mycobacterium bovis infection in Giraffe (Giraffa camelopardalis) in the Greater Kruger National Park Complex: Role and implica-tions. Transboundary and Emerging Diseases https://doi.org/10.1111/tbed.13275 pp. 1-7.

Junker, K., Boomker, J., Govender, D. & Mutafchiev, Y. 2019. Nematodes found in Nile crocodiles in the Kruger National Park, South Africa, with redescriptions of Multi-caecum agile (Wedl, 1861) (Heterocheilidae) and Camal-lanus kaapstaadi Southwell & Kirshner, 1937 (Camallani-dae). Systematic Parasitology 96:381-398 DOI: 10.1007/s11230-019-09856-w.

Junker, K., Spickett, A., Swanepoel, M., Krasnov, B.R., Boomker, J. &Hoffman, L.C. 2019.Gastrointestinal hel-minths from the common warthog, Phacochoerus afri-canus (Gmelin) (Suidae), in KwaZulu-Natal Province, South Africa, with comments on helminths of Suidae and Tayassuidae worldwide. Parasitology 1:29 DOI: 10.1017/s0031182019000684.

Kgosana, K.G. 2019, The effects of extraction tech-niques and quantitative determination of oxalates in Ner-ium oleander and feeds. Onderstepoort Journal of Veter-inary Research 86(1):a1611 https://doi.org/10.4102/ojvr.v86i1.1611.

Klein, A., Fahrion, A., Finke, S., Eyngor, M., Novak, S., Ya-kobson, B., Ngoepe, E., Phahladira, B., Sabeta, C., de Benedictis, P., Gourlaouen, M. Orciari, L.A., Yager, P.A., Gigante, C.M., Knowles, K., Fehlner-Gardiner, C., Servat, A., Cliquet, F., Marston, D., McElhinney, L.M., Johnson, T., Fooks, A.R., Müller, T. & Freuling, C.M. 2020. Further evidenceofinadequatequalityinlateralflowdevicescom-merciallyofferedforthediagnosisofrabies.Tropical Med-icine and Infectious Diseases 5:13 https://doi.org/10.3390/tropicalmed5010013.

Latif, A.A., Nkabinda, B., Peba, B., Matthee, O., Pienaar, R., Josemans, A., Marumu, D., Labuschagne, K., Ab-delatif, N.A. & Krüger, A. & Mans, B.J. Risk assessment of introduction of Canine leishmaniasis through the import of dogs into South Africa. Onderstepoort Journal of Veteri-nary Research 86:01

Latif, A.A., Ntantiso, L. & De Beer, C. 2019. African ani-mal Trypanosomosis (nagana) in northern KwaZulu-Natal, South Africa: Strategic treatment of cattle on a farm in en-demic area. Onderstepoort Journal of Veterinary Research 86(1):a1639 https://doi.org/10.4102/ojvr.v86i1.1639.

Latif, A.A., Troskie, P.C., Peba, S.B., Maboko, B.B., Pie-naar, R. & Mans, B.J.2019.Corridordisease(buffalo-as-sociated Theileria parva) outbreak in cattle introduced onto a game ranch and investigations into their carrier-state. Veterinary Parasitology: Regional Studies and Reports 18:100331.

Lazarus, D.D., Mutowembwa, P.B., Sirdar, M.M., Rame-tse, T.M., Heath, L., Opperman, P.A., Burroughs, R.E.J. & Fosgate, G.T. 2019. Clinical presentation of FMD virus SAT1 infections in experimentally challenged indigenous South African goats. Small Ruminant Research 180:15-20.

Liebenberg, J., Steyn, H.C., Faber, E.F., Josemans, A.I. & Zweygarth, E. 2020. In vitro propagation and genome se-quencing of three atypical Ehrlichia ruminantium isolates. Onderstepoort Journal of Veterinary Research 87:a1769 https://doi.org/10.4102/ojvr.v87i1.1769.

Lignereux, L., Chaber, A., Seagerman, C., Heath, L., Knowles, N.J., Wadsworth, J., Mioulet, V. & King, D.P. 2020. Foot-and-mouth Disease outbreaks in captive scim-itar-horned oryx (Oryx dammah). Transboundary and Emerging Diseases https://doi.org/10.1111/tbed.13502.

Lubisi, B.A., Ndouvhada, P.N., Neiffer, D., Penrit, M.,Sibanda, D. & Bastos, A.D.S. 2019. Evaluation of a Virus Neutralisation Test fro Detection of Rift Valley Fever Anti-bodies in Suid Sera. Tropical Medicine and Infectious Dis-ease 4:52 DOI: 10.3390/tropicalmed4010052.

Lubisi, B.A., Ndouvhada, P.N.,Neiffer,D.,Penrith,M.L.,Sibanda, D.R. & Bastos, A. 2019. Seroprevalence of Rift valley fever in South African domestic and wild suids (1999-2016). 2019. Transboundary and Emerging Diseas-es https://doi.org/10.1111/tbed.13402.


Lutermann, H., Archer, E.K., Ueckermann, E.A., Junker, K. & Bennett, N.C. 2020. Surveys and literature review of parasites among African mole-rats: proposing hypotheses for the roles of geography, ecology and host phylogenet-ic relatedness in parasite sharing. Journal of Parasitology 106:38-45 http://doi.org/10.1645/18-103.

Mans, B.J. 2019. Chemical equilibrium at the tick-host feeding interface: A critical examination of biological rele-vance in hematophagous behaviour. Frontiers in Physiol-ogy 10:530.

Mans, B.J., Pienaar, R., Troskie, P.C. & Combrink, M.P. 2019. Investigation into limiting dilution and tick transmis-sibility phenotypes associated with attenuation of the S24 vaccine strain. Parasites & Vectors 12: 419.

Matle, I., Pierneef, R., Khanyisile, R., Mbatha, K.R., Mag-wedere, K. & Madoroba, E. 2019. Genomic Diversity of Common Sequence Types of Listeria monocytogenes Isolated from Ready-to-Eat Products of Animal Origin in South Africa. Genes 10(12):1007 https://doi.org/10.3390/genes10121007.

Mawela, K.G.,Luseba,D.,Magano,S.&Eloff,J.N.2019.Repellent properties of Rotheca glabrum plant extracts against adults of Rhipicephalus appendiculatus. BMC Vet-erinary Research 15:122 https://doi.org/10.1186/s12917-019-1853-5.

Morters, M.K., Archer, J., Ma, D., Matthee, O., Goddard, A., Leisewitz, A.L., Matjila, P.T., Wood, J.L. & Schoeman, J.P. 2020. Long-term follow-up of owned, free-roaming dogs in South Africa naturally exposed to Babesia rossi. International Journal for Parasitology 50:103-110 https://doi.org/10.1016/j.ijpara.2019.11.006.

Ndlovu, S., Williamson, A.L., Malesa, R., Van Heerden, J., Boshoff, C.I., Bastos, A.D.S., Heath, L. & Carulei, O. 2020, Genome Sequences of Three African Swine Fever Viruses of Genotypes I, III, and XXII from South Africa and Zambia, Isolated from ornithodoros Soft Ticks. Microbiol-ogy Resource Announcements 9(10):e01376-19 http://doi.org/10.1128/MRA013/6-19.

Ngoveni, H.G., Van Schalkwyk, A. & Koekemoer, J.J.O. 2019. Evidence of Inragenic Recomibnation in African Horse Sickness Virus. Viruses 11(7), 654; https://doi.org/10.3390/v11070654.

Omar, R., Van Schalkwyk, A., Carulei, O., Heath, L., Dou-glass, N. & Williamson, A. 2020. South African Bovine ephemeral fever virus glycoprotein sequences are phylo-genetically distinct from those from the rest of the world. Archives of Virology https://doi.org/10.1007/s00705-020-04568-9.

Pienaar, R., Josemans, A., Latif, A.A. & Mans, B.J. 2020. Thehost-specificityofTheileria sp. (sable) and Theileria sp. (sable-such as) in African Bovidae and detection of novel Theileriainantelopeandgiraffe.Parasitology 147:213-224 https://doi.org/10.1017/S003118201900132X.

Ramulongo, T.D., Maree, F.F., Scott, K., Opperman, P., Mutowembwa, P. & Theron, J. 2020. Pathogenesis, bio-physical stability and phenotypic variance of SAT2 foot-and-muth disease virus. Veterinary Microbiology 243:1008614 https://doi.org/10.1016/j.vetmic.2020.108614.

Riddin, M.A., Venter, G.J., Labuschagne, K. & Villet, M.H. 2019. Culicoides specis as potential vectors of African horse sickness virus in the southern regions of South Afri-ca. Medical and Veterinary Entomology 33:498-511.

Riddin, M.A., Venter, G.J., Labuschagne, K. & Villet, M.H. 2019. Bloodmeal analysis in Culicoides midges collected near horses, donkeys and zebras in the Eastern Cape, South Africa. Mecial and Veterinary Entomology 33: 467-475.

Sabeta, C.T., Marston, D.A., McElhinnery, L.M., Horton, D.L., Phahladira, B.M.N. & Fooks, A.R. 2020. Rabies in the African Civet: An Incidental Host for lyssaviruses 2020. Viruses 12:368 https://doi.org/10.3390/v12040368.

Shuaib, Y.A., Elhag, A.M.W., Brima, Y.A., Abdalla, M.A. Bakiet, A.O., Mohmed-Noor, S.E., Lemhöfer, G., Beste-horn, M., Poppert, S., Schaper, S., Dobler, G., Bakkes, D.K., Chitimia-Dobler, L. 2020. Ixodid tick species and two tick-borne pathogens in three areas in the Sudan. Para-sitology Research 119:385-394 https://doi.org/10.1007/s00436-019-06458-9.

Sichewo, P.R., Hlokwe, T.M., Etter, E.M.C. & Michel, A.L. 2020, Tracing cross species transmission of Mycobacteri-um bovis at the wildlife / livestock itnerface in South Africa. BMC Microbiology 20:49 https://doi.org/10.1186/s12866-020-01736-4.

Sirdar, M.M., Fosgate, G.T., Blignaut, B., Gummow, B., Shileyi, B., Lazarus, D.D., Mutowembwa, P., Van der Merwe, D. & Heaht, L. 2019. A novel method for perform-ing antigenic vaccine matching for foot-and mouth disease in absence of the homologous virus. Vaccine 37: 5025-5034.

Smith, P.W., Agbaje, M., LeRoux-Pullen, L., Van Dyk, D., Debusho, L.K., Shittu, A., Sirdar, M.M., Fasanmi, O.G., Adebowale, O. & Fasina, F.O. 2019. Implication of the knowledge and perceptions of veterinary students of anti-microbial resistance for future prescription of antimicrobials in animal health, South Africa. Journal of the South African Veterinary Association 90: a1765. https://doi.org/10,4102/jsava.v90i0,1765.

Smith, R.M., Bhoora, R.V., Kotze, A., Grobler, J.P. & Lee Dalton, D. 2019. Translocation a potential corridor for equine piroplasms in Cape mountain zebra (Equus zebra zebra). International Journal for Parasitology: Parasites and Wildlife 9:130-133.

Spickett, A., Junker, K., Froeschke, G., Haukisalmi, V. & Matthee, S. 2019. Nematodes and cestodes of rodents in South Africa: baseline data on diversity and geograph-ic distribution. Journal of Helminthology 1:17 https://doi.org/10.1017/S0022149X19000403.


Spickett, A., Van der Mescht, L., Junker, K., Krasnov, B.R., Haukisalmi, V. & Matthee, S. 2019. Beta diversity of gastrointestinal helminths in two closely related South Afri-can rodents: species and site contributions. Parasitology Research 118: 2863-2875 https://doi.org/10,1007/s00436-019-06411-w.

Sprygin, A., Pestova, Y., Wallace, D.B., Tuppurainen, E. & Kononova, A.V. 2019. Transmission of lumpy skin disease virus: A short review. Virus Research 269:197637. https://doi.org/10.1016/j.virusres.2019.05.015.

Steyn, H.C. & Pretorius, A. 2020. Genetic diversity of Ehrli-chiaruminantiumfieldstrainsfromselectedfarmsinSouthAfrica. Onderstepoort Journal of Veterinary Research 87(1), a1741. https://doi.org/10.4102/ojvr.v87i1.1741

Tuenter, E., Zarev, Y., Matheeussen, A., Elgorashi, E.E., Pieters, L. & Foubert, K. 2019. Antiplasmodial prenylated flavonoids from stem bark of Erythrina latissimi. Phyto-chemistry Letters 30:169-172.

Ukamaka, E.U., Coetzer, A., Scott, T.P., Anene, B.M., Ezeokonkwo, R.C., Nwosuh, C.I., Nel, L.H. & Sabeta, C.T. 2020. Economic and feasibility comparison of the dRIT and DFA for decentralized rabies diagnosis in resource-limited settings: The use of Nigerian dog meat markets as a case study. PLOS Neglected Tropical Diseases 14(2): e0008088 https://doi.org/10.1371/journal.pntd.0008088.

Ukamaka, E.U., Ngoepe, E.C., Anene, B.M., Ezeokonkwo, R.C., Nwosuh, C. & Sabeta C.T. 2020. Molecular detection of rabies lyssaviruses from dogs in South-eastern Nigeria: evidence of transboundary transmission of rabies in West Africa. Viruses 12:134 https://doi.org/10.3390/v12020134.

Uni, S., Udin, A.S.M., Agatsuma, T., Junker, K., Saijuntha, W., Bunchom, N., Fukuda, M., Martin, C., Lefoulon, E., Labat, A., Khan, F.A.A., Low, V.L., Cheah, P.L., Lin, Y.A., Ramli, R., Belabut, D.M., Zainuri, N.A., Matsubayashi, M., Omar, H., Bhassu, S., Uga, S., Takaoka, H. & Azirun, M.S. 2020. Description, molecular characteristics and Wolba-chia endosymbionts of Onchocerca borneensis Uni, Mat Udin & Takaoka n. sp. (Nematoda: Filarioidea) from the Bornean bearded pig Sus barbatus Muller (Cetartiodactyla: Suidae) of Sarawak, Malaysia. Parasites & Vectors 13:50 https://doi.org/10.1186/s13071-020-3907-8.

Van Schalkwyk, A. & Romito, M. 2019. Genomic Char-acterization of Rift Valley Fever Virus, South Africa, 2018. Emerging Infectious Diseases 25:1979-1981 https://doi.org/10.3201/eid2510.181748.

Wolf, T.E., Lazarus, D.D., Opperman, P., Heath, L., Gan-swindt, A. & Fosgate, G.T. 2020. Impact of Foot-and-mouth Disease on goat behaviour after experimental infection with serotype SAT1 virus. Preventitive Veteri-nary Medicine 176:104912 https://doi.org/10.1016/j.pre-vetmed.2020.104912.

Zarev, Y., Naessens, Tl, Theunis, M., Elgorashi, E.E., As-pers, S., Ionkova, I., Verschaeve, L., Pieters, L., Hermans, N. & Fobert, K. 2020. In vitro antigenotoxic activity, in sili-coADMEpredictionandprotectiveeffectsagainstaflatox-in B1 induced hepatotoxicity in rats of an Erythrina latis-sima stem bark extract. Food and Chemical Toxicology 135:110768 https://doi.org/10.1016/j.fct.2019,110768.

Zweygarth, E., Nijhof, A.M., Knorr, S., Ahmed, J.S., Al-Ho-sary, A.T.A., Obara, I., Bishop, P.R., Josemans, A.I. & Clausen, P-H. 2020. Serum-free I cultivation of Theileria annulata and Theileria parva schizont-infected lympho-cytes. Transboundary and Emerging Diseases 67:S35-S39 https://doi.org/10.1111/tbed.13348.

CHAPTERS IN BOOKS

Muwonge, A., Egbe, F., Bronsvoort, M., Areda, D.B., Hlok-we, T. & Michel, A.L. 2019. Molecular epidemiology of My-cobacterium bovis in Africa. Chapter 8 in: A.B. Dibaba et al. (eds), Tuberculosis in Animals: An African perspective. Switzerland, pp. 127-169.


ARC-BIOTECHNOLOGY PLATFORM

Located on the ARC-OVR Campus, the Biotechnology Plat-form (ARC-BTP) was established in 2010 as a major stra-tegic priority of the ARC. The mandate of the ARC-BTP is to create the high-throughput resources and technologies required for applications in genomics, metagenomic- or next generation sequencing based diagnostic applications, quantitative genetics, genomics assisted selection and breeding, plant phenomics and bioinformatics to support participants in the agricultural sector, i.e. from smallhold-er and commercial producers, to seed companies, food processing facilities and universities working in associated fields.TheARC-BTPestablisheditselfasbotharesearchand service driven institution, providing an environment in which highly skilled researchers and postgraduate students can be hosted and trained. The technologies established within the platform are accessible as services to the ARC, Higher Education Institutions, private companies, Science Councils and researchers across the Continent.

Over the last 10 years, ARC-BTP has established whole genome deep sequencing and associated bioinformatics workflowsthathavefoundapplicationinde novo genome assembly, food borne pathogen profiling, viral, bacterialand fungal disease diagnosis and soil and water microbial analysis. Using Illumina-based whole genome-SNP geno-typing, the Platform has generated tens of thousands of SNP genotypes used to characterise and infer on popula-tion genetic diversity and genetic adaptation in indigenous livestock and crop species for conservation as well as sup-port breed/cultivar improvement programmes through ge-nomic selection and genomics-assisted breeding. Recent-ly, the ARC-BTP has implemented high-end phenomics technologies for infieldplantphenotypingandoff-seasonphenotyping in the growth facility, which together with the genomics platforms provides a comprehensive range of omics technologies to drive plant breeding and improve-ment Programmes. Whilst still in its infancy, the ARC-BTP is establishing technical expertise and supporting infra-structure to drive gene editing and new plant breeding technologies.

Aligned to the state of the art, high-end biotechnologies and supporting expertise, the ARC-BTP hosts and trains postgraduate students and young researchers (Postdoc) through the ARC-Professional Development Programme (ARC-PDP). These students are trained in scarce and crit-ical genomics and bioinformatics skills to support the agri-cultural sector as well as other national needs.


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FIVE YEAR STRATEGIC HIGHLIGHTS___________________________________________________ Next generation sequencing for food borne pathogen profiling

Meat products have been implicated in many listeriosis outbreaks globally, however, there is a dearth of infor-mation on the diversity of L. monocytogenes isolates cir-culating in food products in South Africa. The ARC has established genomics-based workflows focused on thesurveillance of food borne pathogens in the South African food value chain. Currently, this includes the detection of species such as Listeria and Salmonella. The work, which is done in collaboration with the DALRRD aims to guide regulation and safety in the food value chain. The analyses are designed to investigate the population structure of L. monocytogenes isolated in the meat value chain within the South African market. Based on whole genome sequence analysis,asubsetof217isolateswereclassifiedintotwomain lineage groupings namely lineages I (n = 97; 44.7%) and II (n = 120; 55.3%). The lineage groups were further differentiatedintoIIa(n=95,43.8%),IVb(n=69,31.8%),IIb (n = 28, 12.9%) and IIc (n = 25, 11.5%) sero-groups Figure 1. The most abundant sequence types (STs) were ST204 (n = 32, 14.7%), ST2 (n = 30, 13.8%), ST1 (n = 25, 11.5%), ST9 (n = 24, 11.1%) and ST321 (n = 21, 9.7%). Inaddition,14clonalcomplex (CCs)were identifiedwithover-representation of CC1, CC3 and CC121 in “Pro-cessed Meat-Beef”, “RTE-Poultry” and “Raw-Lamb” meat categories, respectively. Listeria pathogenic islands were present in 7.4% (LIPI-1), 21.7% (LIPI-3) and 1.8% (LIPI-4) of the isolates. Mutation leading to premature stop co-dons was detected in inlA virulence genes across isolates identifiedasST121andST321.Thefindingsofthisstudydemonstrated a high-level of genomic diversity among L. monocytogenes isolates recovered across the meat value chain control points in South Africa. In the course of these projects more than 500 samples have been analysed and many more are expected due to the establishment of a streamlinedworkflow.

Phylogenetic analysis of inlA gene sequences obtained

from 217 Listeria monocytogenes isolates.

Genetic diversity of South African pigs as a potential genetic resource for food security

South African pig production consists of a commercial in-tensivesectorwithdefinedbreedsandanextensivesectorthat is mainly associated with small-scale farming in the villages.

Commercial breeds such as the Large White, Landrace and Duroc are known for their carcass and meat quality. Indigenous breeds classified under Sus indica such as Kolbroek and Windsnyer are geographically restricted to southern Africa and are more resistant to local diseases.

Non-descript populations dominate the villages as a source of household food security, income and investments. They are well-adapted to harsh local conditions and limited in-puts; therefore, they provide good material for improve-ment and understanding genetic mechanisms underlying adaptation of local breeds.

Further, this type of rearing allows the possibility of hybrid-ization between domestic pigs and wild boars during for-aging. Native to Africa are the Warthog, Bush pig and Red River Hog wild pigs, often found roaming in forests or kept in zoos for conservation.

Hybridization could potentially yield higher reproductive rates and increased growth rates. However, the risk of spread of pig-borne diseases remains a challenge.

The ARC has committed to a genetic improvement pro-gramme of wild and domestic pigs. This will lead to main-tenance of biodiversity and genetic parameters for traits of economic importance. The project assessed the genetic di-versity of indigenous pigs from South Africa from the East-ern Cape and Limpopo provinces using Illumina 60K SNP BeadChip; three commercial breeds (Large White, South African Landrace and Duroc), indigenous (Kolbroek and Windsnyer), wild (Wild Boar, Bushpig and Warthog) and Vietnamese pigs were included. The PCA demonstrates the impact of domestication and geographic history on the clustering of populations (Figure below). European popula-tions as represented by Wild Boar, South African Landrace, and Large White, clustered together.

Geographic structures were evident amongst most of the pig populations that were aligned to production systems andtheirfoundereffects.

Genomicregionsdifferentiatingvillagepigs

from wild boar populations.


Pairwise FST comparing village pigs and Wild Boar yield-ed genes related to sow reproductive traits (FRAS1), feed efficiency (FRAS1) and obesity (NPY2R) in chromosome 8. Potential candidates associated with disease resistance (SWAP70) and fertility (SBF2) were reported on chromo-some 2.

Clustering of pig populations.

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nexT generaTIon sequencIng For envIronmenTal mIcroBIal analysIs and anTImIcroBIal resIsTance proFIlIng

The analysis of samples directly from the environment, or metagenomics, enables researchers to investigate micro-bial composition of habitats without the need for isolation or culturing. This methodology provides a clearer picture of the environment and the microbial factors found within. ARC is actively involved in numerous projects, both aca-demicandcommercial,aimedatelucidatingtheinfluenceof micro-organisms on the environment and the potential benefitorlossthepresenceoforganismsmayinvoke.Thisincludesthedetectionandprofilingofantimicrobialresis-tance elements in environmental samples. The exhaustive use of antibiotics in humans, animal farming and other ag-ricultural practices has resulted in the frequent appearance of antibiotic resistant bacteria in human-impacted habitats. However, antibiotic resistance in natural (less-impacted) habitats is less understood. Using shotgun metagenomics we analysed soils from relatively low anthropogenic impact sites across the Namib Desert. We report the presence of a clinicallysignificantextendedspectrumβ-lactamase(TEM-116), on a ColE1 - such as plasmid also carrying a metal resistance gene (arsC). The co-occurrence of resistance to antimicrobial drugs and metals encoded on a single mo-bile genetic element increases the probability of dissemi-nation of these resistance determinants and the potential selection of multiple resistance mechanisms. In addition, the presence of a P7 entero-bacteriophage on the same plasmid, may represent a new vehicle for the propagation

ofTEM-116inthesesoilcommunities.Thesefindingshigh-light the role of the environment in the One Health initiative.

Sampling sites across the Namib desert.

Alignment of sequences

genomIc archITecTure oF composITe Breeds:

case oF The sImBra caTTle

Cattle play an important part in the agricultural economy worldwide. Modern cattle were derived from at least two independent domestication events. These early domesti-cation processes resulted in high overall genetic variabili-ty and animals that were well-adapted to local conditions. However, substantial losses in genetic variability and adaptability have occurred with over the last two centuries withtheriseofthe“breed”conceptandintensiveartificialselection for improving productivity. In fact, intensive se-lectionforspecifictraitshasbeenassociatedwithgeneticdisorders,reducedreproduction,andprofitability.Itisthuswidely recognized that there is a need to maintain and in-crease genetic diversity for sustainable management of modern cattle breeds. One avenue for increasing overall genetic variation in modern cattle breeds is to combine purebred breeds by hybridization to generate “new” breeds with improved environmental adaptability and desirable performance.


The Simbra crossbreed was developed in the United States in the late 1960s by hybridization of the Indicine Brahman and Taurine Simmental breeds. In the case of Simbra, its high tolerance to harsh conditions (e.g., heat, humidity, parasites, seasonally poor pasture quality and large dis-tances required to be walked while grazing) is thus derived from its Brahman parentage. In turn, its good meat quality (e.g., carcass composition and conformation, the eating quality of meat), early sexual maturity, milking ability, rapid growth, and docile temperament are all attributes derived from the Simmental breed. Genomic analyses revealed that the South African Simbra population have an admixed genome (Fi, composed of optimal proportions of Taurine (5/8) and Indicine (3/8) backgrounds.

Admixture analysis of the Simbra cattle.

This genomic ancestry of the Simbra genome thus ensures maintenance of favourable traits from both parental breeds. Linkage disequilibrium-based analyses also revealed nine genomic regions that experience strong selection. These regions contain adaptive genes that were previously im-plicated in cattle health and production (e.g., TRIM63, KCNA10, NCAM1, SMIM5, MIER3 and SLC24A4). In Sim-bra, these adaptive alleles likely contribute to the biological and cellular functions determining phenotype of the cattle breed.

Signatures of selection in the Simbra cattle.

Our data suggested that these alleles were introgressed from the breed’s original indicine and taurine ancestors. They might represent good targets or ad-hoc physiological studies, breeding selection and eventually even gene edit-ing, for improved traits in modern cattle breeds. Ultimately, this study represents an important step towards developing

and improving strategies for selection and breeding pop-ulations to ultimately contribute meaningfully to the beef production industry of South Africa.

Simbra as a composite of Brahman and Simmental.

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JOURNAL ARTICLES

Avontuur, J.R., Palmer, M., Beukes, C.W., Chan, W.Y., Coetzee,M.P.A,Blom,J.,St˛epkowski,T.,Kyrpides,N.C.,Woyke, T., Shapiro, N., Whitman, W. B., Venter, S.N. & Steenkamp, E.T. 2019 Genome-informed Bradyrhizobium taxonomy: where to from here?. Systematic and Applied Microbiology https://doi.org/10.1016/j.syapm.

Azeez, O.I., Myburgh, J.G., Bosman, A.M., Featherston, J., Sibeko-Matjilla, K.P., Oosthuizen, M.C. & Chamunorwa, J.P. 2019. Next generation sequencing and RNA-seq char-acterization of adipose tissue in the Nile crocodile (Croco-dylus niloticus) in South Africa: Possible mechanism(s) of pathogenesis and pathophysiology of pansteatitis. PLOS ONE https://doi.org/10.1371/journal.pone.0225073.

Beukes, C.W., Steenkamp, E.T., van Zyl, E., Avontuur, J., Chan, W.Y., Hassen, A.I., Palmer, M., Mthombeni, L.S., Phalane, F.L., Sereme, T.K. & Venter. S. N 2019. Paraburk-holderia strydomiana sp. nov. and Paraburkholderia steynii sp. nov.: rhizobial symbionts of the fynbos legume Hypoca-lyptus sophoroides. Antonie van Leeuwenhoek https://doi.org/10.1007/s10482-019-01269-5.


Dlamini, N.M., Visser, C., Snyman, M.A., Soma, P. & Muchadeyi, F.C. 2019. Genomic evaluation of resistance to Haemonchus contortus in a South African Dohne Merino flock.Small Ruminant Research https://doi.org/10.1016/j.smallrumres.

Fourie, A., van der Nest, M.A.,deVos,L.,Wingfield,M.J.,Wingfield,B.D.&Barnes,I.2019.QTLmappingofmycelialgrowth and aggressiveness to distinct hosts in Ceratocys-tis pathogens. Fungal Genetics and Biology doi: https://doi.org/10.1016/j.fgb.

Lashmar, S.F., Muchadeyi, F.C. & Visser, C. 2019. Gen-otype imputation as a cost-saving genomic strategy for South African Sanga cattle: A review. South African Jour-nal of Animal Science 49(.2) http://dx.doi.org/10.4314/sa-jas.v49i2.7.

Malatji, D.P., van Marle Koster, E. & Muchadeyi, F.C. 2019.Geneexpressionprofilesofthesmallintestineofvil-lage chickens from an Ascaridia galli infested environment. Veterinary Parasitology https://doi.org/10.1016/j.vpoa.

Muzondiwa, D., Mutshembele, A., Pierneef, R.E. & Reva, O.N.2020.ResistanceSniffer:Anonlinetoolforpredictionof drug resistance patterns of (Mycobacterium tuberculo-sis) isolates using next generation sequencing data. In-ternational Journal of Medical Microbiology https://doi.org 10.1016/j.ijmm.

Naidoo, Y., Valverde, A., Cason, E.D., Pierneef, R.E. & Cowan, D.A. 2020. A clinically important, plasmid-borne antibioticresistancegene(β-lactamaseTEM-116)presentin desert soils. Science of the Total Environment https://doi.org/10.1016/j.scitotenv.

Ncube, K.T., Hadebe, K., Dzomba, E.F., Soma, P., Frylinck, L. & Muchadeyi, F.C. 2019. Relationship between populationgenomicstructureandgrowthprofilesofSouthAfricangoatsunderdifferentproductionsystems.Tropical Animal Health Production https://doi.org/10.1007/s11250-019-02128-1.

Niu, D., Li, C., Wang, P., Huang, L., Mchunu, N.P., Singh, S., Prior, B.A. & Ye, X. 2019. Twin-arginine signal peptide of Bacillus licheniformisGlmUefficientlymediatedsecreto-ry expression of protein glutaminase. Electronic Journal of Biotechnology https://doi.org/10.1016/j.ejbt.

Read, D.A., Muoma, J. & Thompson, G.D. 2020. Meta-viromic analysis reveals coinfection of papaya in western Kenya with a unique strain of Moroccan watermelon mosa-icvirusandanovelmemberofthefamilyAlphaflexiviridae.Archives of Virology https:// doi.org 10.1007/s00705-020-04582-x.

Reva, O.N., Swanevelder, D.Z.H., Mwita, L.A., Mwakililii, A.D., Muzondiwa, D., Joubert, M., Chan, W.Y., Lutz, S., Ahrens, C.H., Avdeeva, L.V., Kharkhota, M.A., Tibuhwa, D., Lyantagaye, S., Vater, J., Borriss, R. & Meijer, J. 2019. Ge-netic, Epigenetic and Phenotypic Diversity of Four Bacillus velezensis Strains Used for Plant Protection or as Probiot-ics. Frontiers in Microbiology https://doi.org/10.3389/fmicb.

Sayari, M., van der Nest, M.A., Steenkamp, E.T., Adegeye, O.O.,Marincowitz,S.&Wingfield,B.D.2019.Agrobacte-rium-mediated transformation of Ceratocystis albifundus. Microbiological Research https://doi.org/10.1016/j.micres.

Wilson, A.M., Wilken, P.M., van der Nest, M.A.,Wingfield,M.J. & Wingfield, B.D. 2020. The novel Huntiella oma-nensis mating gene, MAT1-2-7, is essential for ascoma-tal maturation. Fungal Genetics and Biology https://doi.org/10.1016/j.fgb.

Wingfield,B.D.,Fourie,A.,Simpson,M.C.,Bushula-Njah,V.S., Aylward, J., Barnes, I., Coetzee, M.P.A., Dreyer, L.L., Duong, T.A., Geiser, D.A., Roets, A., Steenkamp, E.T., van der Nest, M.A., van Heerden, C.J.&Wingfield,M.J.2019.IMA Genome-F 11 draft genome sequences of Fusarium xylarioides, Teratosphaeria gauchensis and T. zuluensis and genome annotation for Ceratocystis fimbriata. Fungal Genomes https://doi.org/10.1186/s43008-019-0013-7.


Masters Mailula, D.M. 2019. Production of fusel alcohols is species of the family Ceratocystidaceae. Master of Science (Micro-biology), University of Pretoria.

Doctoral Fourie, A. 2019. A genomic approach towards understand-inghostspecificityandpathogenicity in twoCeratocystis species. Doctor of Philosophy (Genetics), University of Pretoria.

Olagunju, O.M. 2019. Incidence of Mycotoxigenic fungi during processing and storage of Bambara groundnut (Vig-na subterranean)compositeflour.DoctorofScience(FoodScience and Technology), Durban University of Technolo-gy. CHAPTERS IN BOOKS

Read, D.A. & Pietersen, G .2019. Analysis of Genotype Composition of Citrus tristeza virus Populations Using Il-lumina Miseq Technology in Catara AF et al. (eds.) Citrus Tristeza Virus: Methods and Protocols, Methods in Molec-ular Biology, vol. 2015, Chapter 13, pp.179-194.


Dzomba, E.F. & Muchadeyi, F.C. 2019. Medium densi-ty beadchip genotype data reveals genomic structure of South African merino-based breeds. Proceedings of the 23rd AAABG Conference 2019. University of New England, Armidale, New South Wales, 27th October to 1st November 2019 pp. 452-455.

Hadebe, K., Dzomba, E.F. & Muchadeyi, F.C. 2019. The population Genomic signature of environmental selection in chickens from Malawi, South Africa and Zimbabwe. Pro-ceedings of the 23rd AAABG Conference 2019. University of New England, Armidale, New South Wales, 27th October to 1st November 2019 pp. 274-277.


ARC-AGRICULTURAL ENGINEERING

The core purpose of the ARC-Agricultural Engineering (ARC-AE) Campus is to develop and apply agricultural engineering technol-ogies that will contribute to higher yields, higher income and lower input costs for agriculture and related industries in a sustainable way. The objectives are thus:

• To create wealth and to eliminate poverty in agriculture by increasingprofitsthroughthereductionof inputcosts, in-creased production, improved product quality, and value adding;

• To develop and apply engineering technology for the sus-tainable utilisation and development of resources used in agriculture;

• Topromoteandincreasetheefficientandsustainableutili-sation of natural resources;

• To protect, reclaim and restore deteriorated natural re-sources; and

• To developHumanResources in the field of agriculturalengineering technology.


___________________________________________________FIVE YEAR STRATEGIC HIGHLIGHTS

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Efficient drainage of lands with effective runoff control measures

In-depth research was conducted by the ARC- Agricultural Engineering (ARC-AE) together with other role players to document the planning and design approach-es for agricultural drainage. From the research, technical andfinancialnormsandstandardsfordrainageofirrigatedlands were developed for the assessment of the feasibility of surface and sub-surface drainage systems under South African conditions. Soil health and productivity can be ob-tainedthroughwell-drainedsoils.Artificialdrainageinagri-culture is a practice that improve the natural drainage con-ditions. This practice has been practised for many years. InSouthAfrica,drainagewasintroducedinthelatefiftiesand early sixties and various approaches and techniques have been used and are still being used to drain agricul-tural fields in SouthAfrica. In theSouthAfrican context,the refinement and development of drainage standardsemanates from two angles, a review of the old drainage standards for South Africa and the use of computer sim-ulations based on the Drainmod and spreadsheet mod-els. The models allow the simulation of a wide range of conditions comprising soil types, crops, water application methods, water tables, salinization, water quality and man-agement practices. These simulations allow one to scope the behaviour of drainage systems and therefore develop standards and practices that are realistic.

Agricultural drainageThe purpose of agricultural drainage is to remove excess water from the soil in order to enhance crop production. In somesoils, thenaturaldrainageprocessesaresufficientfor growth and production of agricultural crops, but in many othersoils,artificialdrainageisneededforefficientagricul-tural production. Drainage is regulated by the Conservation of Agricultural Resources Act, 1983 (Act No. 43 of 1983) and it states: “To provide for control over the utilization of the natural agricultural resources of the Republic in order to promote the conservation of the soil, the water sources and the vegetation”. The research distinguished between surface and subsurface drainage since the causes are usuallyverydifferentand requiredifferentapproaches tosolve them.

Efficientdrainageoflands:Welldesignedcontours.

Surface DrainageSurface drainage is the removal of water that collects on the land surface.Many fields have low spots or depres-sions where water ponds. Surface drainage applies pri-marily on flat landwhere in combinationwith any of thefactorssuchasslowinfiltration,lowpermeability,restrictinglayers in the soil profile or shallow soil covering rock ordeepclays,preventthereadypercolationofrainfall,runoff,seepagefromuplands,oroverflowfromstreamsthroughthe soil to deep stratum.

Runoffcontrolmeasures:Grassedwaterwaysandcontours.

A surface drainage system needs to be designed to re-move excess water at a rate which will prevent long peri-ods of standing water so that crops will have optimum con-ditionsforgrowthandminimisetheriskoffloodingwithoutexcessive soil erosion. Surface drainage techniques such as land levelling, constructing surface inlets to subsurface drains, and the construction of shallow ditches or water-wayscanallowthewatertoleavethefieldratherthancaus-ing prolonged wet areas. The design capacity of drainage systems therefore depends on several interrelated factors including rainfall patterns, soil characteristics and the type of crop grown. All this and more are discussed in detail in the guidelines research report.

Sub-surface drainageSub-surfacedrainagecanbedefinedastheremovalofwa-ter from below the surface in both arid and semi-arid areas. The drainage systems are designed mainly for the control of waterlogging and salinization.

These agricultural sub-surface drainage systems can be used for:

• Reclamation of new land with a groundwater table and/or soil salinity that is too high;

• Controlling groundwater levels at desired depths and soil salinity at desired levels; and

• Restoring the productivity of waterlogged and/or sa-linized lands to their potential levels.


Sub-surface drainage for controlling of groundwater levels.

The need for subsurface drainage in irrigated lands cannot be over-emphasized as it has proved to be a sustainable and proven solution to both waterlogging and salinity prob-lems. By correcting the water table status and the saliniza-tion together with the installation of a proper erosion control system, it can improve soil health and crop production and itwillhavethebenefitofminimizingtheimpactontheenvi-ronmentandimprovedprofitabilityoftheproducer.

The purpose of agricultural drainage is to remove excess water from the soil surface and/or sub-surface in order to enhance crop production. One of the techniques is to do properrunoffcontrolplanningandthatincludesdesigningwaterways and contours. Another way is design and instal-lation of sub-surface drainage systems for the control of groundwater levels.

Development of a Bambara nut sheller and its effect on moisture content and the physical properties of both shelled and unshelled Bambara groundnuts

A Bambara nut sheller was developed to determine its effectonmoisturecontentand thephysicalpropertiesofboth unshelled and shelled Bambara groundnuts. The physical properties were investigated at three moisture content levels of 6, 15, and 20%. Properties investigated includedaxialdimensions,mass,staticcoefficientof fric-tion, true density, bulk density, porosity, and cracking force. As moisture increased from 6 to 20%, means of axial di-mensions showed an increase. The length of the unshelled groundnuts rose from 19.7 to 21.1mm, while the width in-creased from 14.9 to 15.6mm. The thickness of unshelled groundnutsalso rose from13.5 to13.7mm.Thefindingsshowed that the surface area, geometric mean diameter, and volume increase with the increase in moisture content. The mean values of the length, width, and thickness of the shelled groundnuts ranged between 11.2-11.8, 9.34-9.72, and 8.58-9.92mm, respectively. The sphericity of unshelled groundnuts slightly decreased from 80 to 78%, while on the shelled groundnuts, rose from 85% to 88%. The re-sults showed that as moisture increased the groundnuts become more spherical. There was also a positive linear relationship between moisture content and mass of each nut.

Bambara nut shelling machine.

The static coefficient of friction of unshelled Bambaragroundnuts in galvanised steel sheets increased from 0.29 to 0.31. This shows that as moisture content rises, the fric-tion between the surface and pods rises. The friction be-tween the steel and shelled groundnuts slightly increased from 0.15 to 0.19. From observation, the surface of shelled groundnuts was more smooth compared with unshelled groundnutswhichhadroughkernels.Thestaticcoefficientof friction was expected to be higher on unshelled ground-nuts comparedwith shelled groundnuts as confirmedbythefindingsofthestudy.Bulkandtruedensityofunshelledgroundnuts declined as moisture content increased. The opposite was true in the shelled groundnuts where the bulk and true density increased with moisture content. As mois-ture content increased, the individual groundnuts increased in size which closed more spaces in between the nuts. As a result, the porosity declined in both shelled and unshelled nuts.Sothefindingsshowthatasmoisturecontentrises,porosity of the unshelled and shelled nuts decreased. The cracking force of both shelled and unshelled groundnuts decreases as moisture content rises.

Naturally-ventilated seed storage structure for preserving the quality of stored seeds

A naturally-ventilated seed storage facility was developed for preserving the quality of the stored seeds, namely, ger-mination, seed vigour and moisture content. The structure was powered by solar energy. The structure comprised a solar collector to heat the ambient air before entering the chimney. The chimney circulated the air inside the struc-ture and inlets allowed heated air into the structure. An ordinary 22m3 roomwas retrofittedwithasolarcollector,inlets and chimney.

Tocomparetheperformanceofthismodifiedstorageroom,a roomwithasimilarcapacityandwithout the retrofittedcomponents (control storage room) was used. Twelve 8 kg bags of maize were stored in each storage room for a period of three months. Samples were taken every two weeks to determine germination, moisture content and seed vigour. The temperature and relative humidity were measured during storage.


Modifiedstorage(a)andSolarcollectorsystemontheroof(b).

Seedbagsinthemodifiednaturally-ventilatedseed storage room.

Therelativehumidityinthecontrolstoragewassignificant-lyhigher(P≤0.05)(60.6±5.87%)thaninthemodifiedstor-age(40.1±3.21%)duringtheday.However,atnight,therelative humidity in the control storage roomwas signifi-cantlylower(P≤0.05)(58.5±7.32%)thaninthemodifiedstorage(63.7±6.28%).Therelativehumidityinthemodi-fiedstorageroomincreasedfrom40.1%duringthedayto63.7% at night. The relative humidity in the control storage room decreased slightly from 60.6% to 58.5% during the dayandnight.This increase in themodified storagebe-tween day and night was due to the high relative humidity of the air entering the storage room at night during opera-tion. The outdoor relative humidity where the experiment was conducted was high. The seed moisture content in the modified storage facility was significantly lower (P≤0.05)(12.6 ± 0.21%) than in the control storage room (13.3 ±0.52%).Themoisturecontentinthemodifiedstorageroomdecreased from 12.6% to 12.4%, whereas in the control room, moisture content increased from 12.6% to 13.8% in three months. The seed germination rate obtained af-ter threemonthsofstorage in themodifiedstorageroomwassignificantlyhigher(P≤0.05)(98.5±0.85%)thaninthecontrolstorageroom(96.8±1.49%).Theseedvigourob-tainedinthemodifiedstorageroomwassignificantlyhigher(93.6 ± 0.35%) than in the control room (91.7 ± 2.08%)

(P≤0.05).Seedstoredinthecontrolstoragelostvigouratafasterrate,comparedwiththeseedsstoredinthemodifiedstorageroom.Therefore,themodifiednaturally-ventilatedseed storage room maintained seed quality better than the control storage room.

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Programme 4: Mechanisation and Engineering

IrrIgaTIon equIpmenT evaluaTIon

The ARC is managing and operating two irrigation labora-tories and is an independent irrigation evaluation authority on the performance of irrigation equipment and systems. The irrigation equipment such as sprinklers, drippers, micro sprayers,filtersandhydraulicvalvesistestedandevaluat-ed in two ARC laboratories to determine the performance and quality of irrigation equipment. Both laboratory evalu-ations are carried out according to locally developed and internationally recognized standards and procedures. It is the only irrigation equipment testing facility in the SADC region and is well positioned to determine whether such equipment is suited for South African conditions to ensure optimalwateruseefficiency.Thelaboratoriesformpartofthe ARC national assets and are constantly upgraded and maintained to perform quality testing according to interna-tional and national standards. The demand on our already scarce water resources is increasing. It is therefore of the utmost importance that the agricultural sector, which uses 60% of the country’s water, has to take all possible steps to improve itswaterusageefficiency.Amongst themanywaystosavewater,efficientirrigationequipmentandevenmore the correct use of it is of utmost importance. To en-surefunctionalefficiencyandtheultimatesuccessofirriga-tion systems, the equipment that is used in these systems must comply with certain performance standards. In addi-tion to the normal testing of equipment, an external client requested tests to be performed in order to determine the effectthattiltedsprayerstandpipeshaveonhowuniformlythe water is applied. The measure of how uniformly water is applied is directly correlated with water wastage, water-logging as well as crop and fertilizer losses.

Testing of upright standpipes as benchmark.


Testing of tilted standpipes.


posTharvesT processIng: a soluTIon For IsolaTed macadamIa Farmers In The vhemBe dIsTrIcT

MacadamianutsarerapidlybecomingasignificantcropinSouth Africa and probably the fastest growing tree crop in-dustry in the country. It is cultivated for its edible kernel with an oil content of 72% and above. From 2011 to 2013, South Africa was the number one producer of macadamia, with exports amounting to 21 696 tons in 2013 (SAMAC,2014). Themostimportanttechnicallimitationidentifiedaspartofthis project has been postharvest treatment. These farm-ers are located between 25 km and 85 km from the nearest processing facility. Hence, farmers limit trips to process-ing facilities to save on transport costs. The ARC through funding from the New Zealand High Commission sought to assist the macadamia farmers through the provision of dehusking machines to reduce the prolonged processing of the macadamia nut. Three dehusking machines were manufactured and supplied to three farmers in Mukula, Elim and Phiphidi, Vhembe district of the Limpopo prov-ince. Farmers are now able to timeously process the nuts through on-farm dehusking therefore saving on high cost of transporting the produce to processing facilities.

Dehusking machine delivered to farmer in Mukula.


IrrIgaTIon TraInIng For susTaInaBle IrrIgaTIon

The Institute for Water Education (IHE Delft) based in Delft, TheNetherlandsannuallypresentsdifferentMastersDe-gree Programmes for prospective students and each year, hundreds of engineers, chemists, biologists, earth scien-tists, and other professionals from all over the world at-tend the different Programmes.The group that attendedthe Masters degree Programme in Irrigation were from the following six countries: Malawi, Liberia, Uganda, Zambia, Ghana and Colombia. Apart from the formal lectures, they also completed an assessment and assignment to com-plete the Module. Training was also conducted by the Irri-gation and Drainage Engineering division for small-scale irrigators and potential irrigators in water saving Irrigation technologies to equip them with skills for sustainable and wateruseefficientirrigationpractices.ItwasfundedbytheGauteng Department of Agriculture and Rural Development in support of their small-scale farmers in the province. A to-tal of 36 smallholders from Limpopo province were trained onirrigationwatersupplyandflowmeasurements.

This training was very important for the smallholder irriga-tors who do not have the capacity to quantity the amount of water they receive and use on their farms. Such knowledge is very important not only for understanding the cost of wa-ter they receive and use, but also to determine if they get adequate water to meet the requirements of their individual farms. Many smallholder irrigators in South Africa still do not know the amount of water they receive and use on their farms, as a result they are not motivated by any prospect for saving water. Moreover, without knowledge on amounts theyreceiveanduse,itisalwaysdifficultforthemtoplanfor available water resources.

IHE-Delft Master Degree Students.


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JOURNAL ARTICLES

Dhavu, K., Yasuda, H., Seopa, J. & Senzanje, A. 2019. Estimation of soil evaporation factor by soil hydraulic factor from bare dune mulch. Journal of Engineering in Agricul-ture and the Environment 5 (1):02-19.

Mathew, I., Shimelis, H., Mutema, M., Clulow, A., Zenge-ni, R., Mbava, N. & Chaplot, V. 2019. Selection of wheat genotypes for biomass allocation to improve drought toler-ance and carbon sequestration into soils. Blackwell Verlag GmbH https://doi.org/10.1111/jac.12332.

Mathew, I., Shimelis, H., Mutema, M., Minasny, B. & Chap-lot, V. 2020. Crops for increasing soil organic carbon stocks - A global meta-analysis. J. Geoderma tps://doi.org/10.1016.

Mbava, N., Mutema, M., Zengeni, R., Shimelis, H., & Chap-lot, V. 2019. Factors affecting cropwater use efficiency:A global meta-analysis. Agricultural Water Management https://.doi.org/10.1016.j.agwat.

Rosolen, V., Bueno, G.T., Mutema, M., Moreira, C.A., Faria Junior, I.R., Nogueira, G. & Chaplot, V. 2019. On the link between soil hydromorphy and geomorphological develop-ment in the Cerrado (Brazil) wetlands. Heliyon https://doi.org/10.1016/j.catena.2019.01.022.

Selala, M.S., Senzanje, A. & Dhavu, K. 2019. Require-ments for sustainable operation and maintenance of small-scale water infrastructure in Limpopo Province, South Afri-ca. Water SA 45(2) https://doi.org/10,4314/wsa.v45i2.

Sibanda, S. & Workneh, T.S. 2019. Effects of indirectair-cooling combined with direct evaporative cooling on the quality of stored tomato fruit. Heliyon https://doi.org/10.1080/19476337.

Sibanda, S. & Workneh, T.S. 2020. Performance evalua-tion of an indirect air cooling system combined with evapo-rative cooling. Heliyon https://doi.org/10.1016/j.


Doctoral Sibanda, S. 2019. Development of a solar powered indi-rect evaporative cooling system for small-scale farmers in sub-Saharan Africa. Doctor of Philosophy (Agricultural En-gineering), University KwaZulu-Natal.


ARC-SOIL, CLIMATE AND WATER

The ARC-Soil, Climate and Water (ARC-SCW) Campus follows a holistic approach towards natural resources uti-lization and conservation. It therefore promotes and col-laborates in multi-institutional, cross-sectoral, bilateral and multi-lateral research teams. Its researchers are trained and experienced in project management and planning, and in teamwork.

This Campus has a proud history of successful formal agreements with national and international initiatives, and actively participates in formal ARC cooperation agreements with other countries. It hosts international and national symposia and is experienced in facilitating workshops and problem analysis.

The strength of the ARC-SCW lies in its multidisciplinary approach,scientificexcellence,breadthanddepthofsci-entificandtechnologicalskills,andinitscapacitytodrawon a wide range of key disciplines required to provide ho-listic, innovative solutions to clients with respect to sustain-able land use, the conservation of the natural resources and environmental quality.

The main focus of research at ARC-SCW is:

• Agrometeorology;• Geoinformation Science;• Water Science; and • Soil Science.


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Trends of desertification, land degradation and drought indicators of the UNCCD for South Africa

South Africa faces threats to food production due to climate change-linkedmeteorologicalhazardssuchasfloodsanddroughts, and loss of productive land due to land degra-dationprocessessuchassoilerosionanddesertification.Land degradation is a key challenge and is intricately linked to food security, poverty, urbanization, climate change and biodiversity. The components of land degradation include, inter alia, soil degradation, vegetation degradation and water resources degradation. South Africa is a signatory to theUnitedNationsConvention toCombatDesertifica-tion (UNCCD)with the aim of effectively addressing theproblemofdesertification,LandDegradationandDrought(DLDD). In a project funded by the former Department of EnvironmentalAffairs,thefollowingindicatorsoflanddeg-radation were investigated: Identification of soil salinization at national level

• Saline soils do not occur extensively in South Africa, but are found in small to fairly large areas and in several soil groups, due to localized factors. These saline soils occur mainly, although not entirely, under arid conditions. Biomes with high salinity are found in southwestern parts of the country that experience low rainfall and high aridity.

Assessment and mapping of bush encroachment and Prosopis

• Alien plant invasions have a major impact on bio-diversity, ecosystem services, agriculture and for-estry. Prosopis is one such invasive species, which has invaded and continues to invade vast areas of rangelands in South Africa. Although the study indi-cated a decrease in the area of Prosopis invasion in the Northern Cape, new patches were found in oth-er parts of Northern Cape, North West, Free State, Eastern Cape and Western Cape provinces;

• Some parts of South Africa experienced a decrease in bush encroachment density classes as a result of land use conversion, while other parts experienced an increase;

• Bush encroachment is a multi-faceted problem driv-enbyinteractionsbetweenchangesinfireregimes,stocking rate of grazing livestock, increase in atmo-spheric CO2 concentration, nitrogen deposition and climate change;

• Drought is regarded as a major cause of land degra-dation,aridityanddesertification;

Change map indicating where occurrence of Prosopis

remained the same or changed.

Map of woody cover showing densities of bush encroachment.

Drought occurrence and the impact of climate change

Standardized Precipitation Index (SPI) maps showing drought of varying intensity between 2012 and 2015.


• Recently, South Africa has been experiencing in-ter-annual drought occurrences of varying intensi-ties;

• Climate change projections indicate that heat stress will reduce the productivity of perennial and annual crops and grasses, especially chill unit-dependent deciduous fruit, as well as livestock;

• Simulated and projected rainfall over southern Africa shows a total decline and larger inter-annual varia-tions;

• Average dam levels following the dry summer of 2016 were at 66%, slightly lower than the value by the end of the 2012-2013 drought; and

• The effect of the 2012-2013 drought on livestockover North West indicated that the number of cattle decreased from approximately 1.8 million in 2011 to 1.7 million in 2013.

Monitoring soil erosion and the impact of climate change on erosion rates and distribution

• Research on soil erosion indicated an increase in the concentration of erosion by water in previously predicted areas that included most communal crop-land and grazing lands. The lowest average soil wind erosion was observed in KwaZulu-Natal and Mpum-alanga. These areas both contain soils that are or-ganic, humid and highly resistant to soil wind erosion;

Map of soil erosion by water.

• According to the land degradation index, most parts of the country experience low to moderate degra-dation, whereas large parts of the Northern Cape, Western Cape, Eastern Cape and North West prov-inces experience high degradation levels;

• Drought severity contributed to an increase in wind erosion; and

• The erosion risk maps are useful in determining ar-eas highly susceptible to erosion and where control management practices should be implemented.

Soil erosion by water in the Free State (left)

and Eastern Cape (right).

Maps of soil erosion by wind in (a) 2000 and (b) 2017.

Assessment and mapping of trends in carbon stocks• Soil organic carbon (SOC) is an important indica-

tor of soil health. It plays a fundamental role in the function, fertility and productivity of terrestrial eco-systems, and the quality of soil, as well as climate change mitigation by sequestration of atmospheric CO2;

• The natural carbon content in the top 0.3 m of all South African soils can be estimated as approxi-mately 4 million Gg;

• Following changes to land use such as agricultural land, settlements or mines, a part of the SOC is lost in the process. The reduced SOC stocks as a re-sult of land use change show that about 370 667 Gg were lost by the year 2000 and a further 5 575 Gg by 2014; and


• As the population grows, more natural land is con-verted to human landscapes and the loss in SOC will continue.

Trend in variation of rates of biomass production of an ecosystem

• Biomass productivity is a sensitive indicator of changes in the environment and terrestrial ecosys-tem. It is also a primary biophysical indicator of land degradation; and

• The investigation of Net Primary Productivity (NPP) shows a decrease in biomass production, as indicat-ed by the trend in NPP analysis.

Net Primary Productivity (NPP) data in 2000 and 2013.

The results of this study will assist in taking appropriate ac-tion to minimize or halt land degradation and identify land degradationhotspots.Thesuccessineffortstocontrolandreverse land degradation rests not only upon knowledge of its status, causes or impacts, but also on adopting system-atic and integrated approaches that address the physical, biological and socio-economic aspects of the processes of desertification,landdegradationanddrought.

AgriCloud Mobile App and Services

AgriCloud is an online, weather-based agricultural advisory system available as a mobile phone App or by subscrip-tion to a platform or portal. AgriCloud enriches weather and climate data with agricultural information and models together with local knowledge to generate real-time per-sonalized advisories. AgriCloud was developed during the Rain for Africa (R4A) project (www.rain4africa.org) by a consortium including the ARC, South African Weather Ser-vice (SAWS), HydroLogic and other Dutch partners, and fundedbytheNetherlandsSpaceOffice(NSO)throughtheGeodata for Agriculture and Water (G4AW) Programme (https://g4aw.spaceoffice.nl/en/projects/g4aw-projects). AgriCloud provides a practical means to respond to climate change and climate variability, by using both the long-term climate data and the current weather forecast. Therefore, it is a useful tool to integrate information about agronomic crops, together with current short-term weather forecasts, and provide advise for the coming 10 days. For example, AgriCloud provides planting date advise to farmers for their ownfarmattheirspecificlocation,ontheirownphone,intheir own language, with daily updates.

AgriCloud helps farmers to make well-informed farm management decisions.

The mobile App also includes a means for farmers to give feedback by crowdsourcing on the current weather con-ditions.Thisofferstheopportunityoflife-longlearningforfarmers to better understand the agro-environmental sys-tems on their farm.

AgriCloudprovides farm-specific advisories for individuallocations for planting of summer rain-fed crops, such as maize, based on the rainfall already received in the past 10 days and the weather forecast for the upcoming 10 days. This enables the farmers to plan their soil preparation and fertilizer application activities in preparation for planting the seed at the most opportune time. Expected weather condi-tions in the next 3 days are also used for advise on when to spray either herbicides or pesticides. Thus, farmers can use this information to plan their forthcoming agronomic field operations and labour requirements to avoid unfa-vourable weather conditions that could result in wasting agro-chemicals.

Coverage - all across South Africa to farmers with a mobile phone

Localized - information for your precise farm location

Timely – daily updated information reaches you immediately

Local language – you can choose from 11 South African languages

AgriCloudisavailableviathreedifferentmeans:theportal,a service via Application Programming Interface (API) and the mobile App. The portal contains AgriCloud dashboards with a selection of maps and graphs presented for selected regions. The content and layout of the dashboards are tai-lored to the needs of the client.


The AgriCloud services allow external organisations (af-ter approval) to access the AgriCloud advisories and data sources via the advanced API, thereby making them avail-able to other platforms or products.

The AgriCloud services will strongly increase the reach of the AgriCloud advisories as these other platforms already have existing users, resulting in wider distribution of the AgriCloud information. The AgriCloud App gives extension services and small-scale farmers access to the AgriCloud advisories on their phone.

It is currently only available for Android smartphones and

can be downloaded from the Google Play Store.

The App is available in 11 local languages – Afrikaans, English, isiNdebele, IsiXhosa, IsiZulu, Sepedi, Sesotho, Setswana, siSwati, TshiVenda and Xitsonga. For farmers without a smartphone, the AgriCloud advisories are also made available via a USSD service for registered locations.

AgriCloud target groups include commodity associations such as Potato SA, Grain SA and Cotton SA that represent groupsofindividualfarmersproducingaspecificcrop,withAgri SA as the overall main point of contact. Agri-business-es are also a potential client group, including fertilizer com-panies, seed companies, grain transport companies and agro-chemical suppliers. The Provincial Departments of Agriculture in all nine provinces are another important tar-get group as they include extension services and research-ers working directly with farmers. The clients will be served in a two-stepprocess startingwith a configuration stageandthenanannualsubscriptionstage.Duringtheconfigu-rationstagethespecificadvisorieswillbeselectedorbuiltto the client’s requirements and the tailored content is con-figured intomaps, graphsor in dashboards and reports.For the subscription stage the R4A partners will maintain operational systems, with 24/7 access to live advisories, and cover the costs of hosting, upgrades and maintenance of software and data storage and licensing. Thus the Ag-riCloud system will provide a continuous service providing information and advise to a large part of the agricultural sector. Following the conclusion of the 4-year R4A proj-ect, the main partners are now entering a Memorandum of Agreement (MoA) in order to continue the commercialisa-tion of AgriCloud according to the Business Plan.

For successful service delivery, the following teams were identified:aSteeringCommittee,aBusinessteam,aHelp-desk and support team, and an ICT developers team, with representatives from all the partners. Each of these teams has specific tasks to promote theexpansionof theAgri-Cloud services to as many clients as possible. A number of additional knowledge engines have been developed and are available on the platform via the portal of services. Ad-visories available on a daily time scale on the mobile App are for rainfed summer crops, including planting accord-ing to the rainfall received and the forecast for the next 10 days, as well as conditions conducive for the spraying of herbicides and pesticides. Daily advisories available via the portal include: RainMap; heat stress for dairy cattle,

poultry and bee hive management; favourable conditions for wheat planting in the Western Cape and Free State; and forecasts for fungal disease risks. Some weekly infor-mation is available via the portal on crop water demand and evapotranspiration, and biomass production from re-motely sensed data. Information needed for planning agri-cultural activities is available on a seasonal time scale via the portal such as positive chill units for fruit trees, good conditions for hay making, time to move cattle to summer pastures, heat units or thermal time for improved crop or cultivar selections according to long-term climate data for a region.

Contact Information: Tel: +27 (0)12 310 2500, Email: [email protected],

Web: www.rain4africa.org ~ www.arc.agric.za, Physical Address: 600 Belvedere St., Arcadia, Pretoria.

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developIng mulTI-plaTForm remoTe sensIng Tools and TechnIques For peaT FIre deTecTIon and monITorIng

Peatlands are a rare and unique wetland type in southern Africa. Peatland ecosystem services range from carbon sequestration (e.g. peatlands store over 30% of the world’s terrestrial carbon) to water storage (e.g. peatlands host 10% of the world’s freshwater) and hydrological regulation (e.g.peatlandsregulatewaterflowandenhanceground-water recharge). Peatlands are under increasing threat from agriculture, mining and infrastructure developments.


Peat degradation can be categorized as either naturally-in-duced impacts (e.g. drought) or anthropogenic (i.e. human- induced impacts e.g. water abstraction). Peat degradation occurs when the water table drops, the peat subsequently dries out, forms cracks and becomes oxidized due to its exposure to the air. Peat degradation results in the release of CO2 gas to the atmosphere, which contributes to climate change. Peatland desiccation and the eventual burning of the systems creates the ideal conditions for sub-surface peatfires tooccur.Peatfirescanburnandsmoulder fora long period, causing health risks to communities, their livestockandwildlife.Sub-surfacepeatfiresaredifficulttodetect with remote sensors and are characterized by lower temperaturesthansurfacefires.Thestudyfocussedonthecharacterization of peat moisture and thermal characteris-ticsthataffectitssusceptibilitytofire.Thedevelopmentofanationalpeatfiredetectionandmonitoringframeworkisan important tool in peatland management because it inte-grates various data sources.

The framework categorizes the monitoring processes at three scales that range between national and local scales.

The three components investigated were: 1. groundwater level; 2. soil moisture; and 3. wetting conditions at three peatland sites (Licht-

enburg, Molopo and Molemane in the North West Province).

The hydrological indicators coupled with thermal informa-tion and vegetation indices were used to assess peat des-iccation. Satellite imagery and Unmanned Aerial Vehicle (UAV) application were used to detect thermal anomalies and wetting level with multispectral and thermal data.

Laboratory tests were done, mounting sensors to record peat thermal and spectral changes using a thermal camera and ASD4 Field Spectroradiometer. Thermal information can also be used as proxy to identify inundated areas (e.g. low temperatures can be related to high moisture areas).

UAV with available sensors utilized to monitor peat conditions.

Peatmoisturecanbemonitoredeffectivelyusingdielectricsensorswithhighaccuracyat different scales.However,thepeatfireshaveaseriesofcomplexprocessesthataf-fect the accuracy of small-scale laboratory simulations.

Therateof thepeatfire isslowandishighlyaffectedbythemoisturecontent.Gasesemittedduringpeatfiresareexpectedtocontributetotheratethatthepeatfirespreads.

Nationalpeatfiredetectionandmonitoringframework for peatland management.

an ‘energy seed’ To augmenT cold season BIogas yIeld and soIl amelIoranT qualITy For smallholder Farmers

Smallholder farming systems drive many economies in Af-rica and are one of the main sources of food and income to the poorest in both urban and rural areas. Improvement of the farming system is imperative to ensure food secu-rity and poverty reduction. A holistic smallholder farming approach that promotes resource recycling will ensure sustainability and productivity. Anaerobic digestion (AD) is important to a holistic farming system since it aids in waste management and results in the generation of energy as well as a soil ameliorant.Thebenefits ofADhavebeenestablished on several smallholder farms in South Africa butsomeshortfallsinthetechnologyhavebeenidentified.

Low-cost pre-fabricated anaerobic digesters where the

‘energy seed’ is anticipated to be used.


A major shortfall is the reduced biogas yield observed during cold seasons. A project-funded by the National Research Foundation seeks to suggest a solution by de-veloping an inoculum or ‘energy seed’ consisting of psy-chrophilic (cold-tolerant) micro-organisms and trace metal nanoparticles that will complement each other in improving cold-season biogas yield and enhancing soil ameliorant quality. Although many anaerobic digesters have been constructed on smallholder farms, few are still in daily use. One of the main reasons is the inconsistent biogas yield, particularlyundercold,winterconditions.EffortshavebeenmadetoaddresstheproblemoftemperaturefluctuationsonADproductivity.Onesucheffortinvolvesmodificationofthe biodigester design to integrate heating, although this is a cost-intensive process. The ability of AD to continue during the cold seasons, without digester modifications,wouldsignificantlyimprovethefunctionalityofpre-existingrural digesters. Furthermore, it will promote technology im-plementation by a wider range of rural communities coun-trywide, as opposed to only locations that fall within the warmer range of annual temperatures. The provision of an ‘energy seed’ will also minimize the need for future, com-plicated, heated digester installation on smallholder farms. Simple systems may be used in conjunction with the ‘en-ergy seed’ to potentially yield the same results as heated systems.The‘energyseed’willhavetheaddedbenefitofimprovingthequalityoftheeffluentfromthedigesterwhichmay be utilized as a soil ameliorant.

producTIon poTenTIal oF selecTed essenTIal oIl crops In souTh aFrIca

The Department of Science and Innovation (DSI) request-ed the ARC to carry out a feasibility study to assess the production potential of selected essential oil crops in South Africa, by describing, quantifying and mapping the soils occurring, as well as to assess their broad agricultural po-tential under dryland and irrigated conditions. The selected crops are Lemon Balm, Rose Geranium, Rosemary, Sweet Marjoram, Thyme and Yarrow. The study was carried out bylookingattwospecificaspects:

• Growth parameters for each crop, including soil re-quirements (texture, depth, drainage, soil type) and climatic requirements (rainfall/moisture required, temperature, frost etc) in terms of both the minimum threshholds necessary as well as possible maximum levels; and

• Land that meets these requirements as far as possi-ble, so that a grade of suitability can be established for each crop.

Once the growth parameters were established, an algo-rithm was created whereby classes are allocated to the available resource data in the ARC databases. This pro-cess is called “matching” and aims to establish areas with differinggradesofsuitability(high,moderate,lowornone)for each crop, which can then be shown on a map.

Thedifferencebetweenrainfedproduction(acombinationof soil and climate, which can be limiting) and irrigated pro-duction (using soil parameters only, adding required mois-ture by irrigation) is shown on the two maps below, using Rose Geranium as an example.

Suitability for rainfed and irrigated Rose Geranium production.

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JOURNAL ARTICLES

Archer, E., Landman, W., Malherbe, J., Tadross, M. & Pretorius, S.N. 2019. South Africa’s winter rainfall region drought: A region in transition? Climate Risk Management https://doi.org/10.1016/j.

Bello, Z.A., Walker, S. & Tesfuhuney, W. 2019. Water rela-tions and productivity of two lines of pearl millet grown on lysimeterwith two different soil types.Agricultural Water Management 221:528-537.


Ezeokoli, O.T., Mashigo, S.K., Paterson, D.G., Be-zuidenhout, C.C. & Adeleke, R.A. 2019. Microbial com-munity structure and relationship with physicochemical properties of soil stockpiles in selected South African opencast coal mines. Soil Science and Plant Nutrition DOI: 10.1080/00380768.

Ezeokoli, O.T., Nwangburuka, C.C., Adeleke, R.A., Roo-pnarain, A., Paterson, D.G., Maboeta, M.S. & Bezuiden-hout, C.C. 2019. Assessment of arbuscular mycorrhizal fungal spore density and viability in soil stockpiles of South African opencast coal mines. South African Journal of Plant and Soil 36: 91-99

Farg, E., Abutaleb, K.A.A., Arafat, S.M., El Sharkawy, M.M. & Nabil, M. 2020. Assessment of Sentinel-2 data ca-pabilities for vegetation physiological parameters retrieving in the Nile Delta. Bioscience Research 17:467-478.

Fourie, J.C.J., Sanko, T.J., Bezuidenhout, C.C., Mienie, C. & Adeleke, R.A. 2019. Draft genome sequences of po-tentially pathogenic Clostridium perfringens strains from environmental surface water in the North West Province of South Africa. Microbiology Resource Announcements https://doi.org/10.1128/MRA.00407-19.

Gcayi, S.R., Chirima, J.G., Adelabu, S.A., Adam, E. & Abutaleb, K.A.A. 2019. Evaluating the potential of nar-row-band indices to predict soybean (Glycine max L. Merr) grain yield in the Free State and Mpumalanga of South Af-rica. Open Access Journal of Environmental and Soil Sci-ences 3:265-278 DOI: 10.32474/OAJESS.

Haruna, S.I. & Nkongolo, N.V. 2019. Tillage, cover crop andcroprotationeffectsonselectedsoilchemicalproper-ties. Sustainability DOI: 10.3390/su11102770.

Hensley, M., Le Roux, P.A.L., Botha, J.J. & Van Rensburg, L.D. 2019. The role of water conservation strategies and benchmark ecotopes for increasing yields in South Africa’s semi-arid croplands. Water SA 45:393-399.

Kotze, J.D.F., Beukes, H.B. & Seifert, T. 2019. Essential environmentalvariablestoincludeinastratifiedsamplingdesign for a national-level invasive alien tree survey. iFor-est - Biogeosciences and Forestry 12:418-426.

Leip, A., Ledgard, S., Uwizeye, A., Palhares, J.C.P. , Aller, M.F., Amon, B., Binder, M., Cordovil, C.M.d.S., De Camil-lis, C., Dong, H., Fusi, A., Helin, J., Hörtenhuber, S., Hris-tov, A.N., Koelsch, R., Liu, C., Masso, C., Nkongolo, N.V., Patra,A.K.,Redding,M.R.,Rufino,M.C.,Sakrabani,R.,Thoma, G., Vertès, F. & Wang, Y. 2019. The value of ma-nure - Manure as co-product in life cycle assessment. Jour-nal of Environmental Management 241: 293-304.

Mabhungu, L., Adam, E. & Newete, S.W. 2019. Monitoring of phytoremediating wetland macrophytes using remote sensing: The case of common reed (Phragmites australis (Cav.) Trin. ex Steud.) and the giant reed (Arundo donax L.). A review. Applied Ecology and Environmental Re-search 17:7957-7972.

Malherbe, J., Smit, I.P.J., Wessels, K.J. & Beukes, P.J. 2020. Recent droughts in the Kruger National Park as reflected in theextremeclimate index.African Journal of Range & Forage Science 37:1-17.

Malobane, M.E., Nciizah, A.D., Mudau, F.N. & Wakindi-ki, I.I.C. 2019. Discrimination of soil aggregates using mi-cro-focus X-ray computed tomography in a five-year-oldno-till natural fallow and conventional tillage in South Afri-ca. Heliyon https://doi.org/10.1016/j.

Mangani, R., Tesfamariam, E.H., Engelbrecht, C.J., Bel-locchi, G., Hassen, A. & Mangani, T. 2019. Potential im-pacts of extreme weather events in main maize (Zea mays L.) producing areas of South Africa under rainfed conditions. Regional Environmental Change https://doi.org/10.1007/s10113-019-01486-8.

Mpandeli, S., Nhamo, L., Moeletsi, M.E., Masupha, T.E., Magidi, J., Tshikolomo, K., Liphadzi, S., Naidoo, D. & Mabhaudhi, T. 2019. Assessing climate change and adap-tive capacity at local scale using observed and remotely sensed data. Weather and Climate Extremes https://doi.org/10.1016/j.wace.

Mukarugwiro, J.A., Newete, S.W., Adam, E., Nsan-ganwimana, F., Abutaleb, K.A.A. & Byrne, M.J. 2019. Mapping distribution of water hyacinth (Eichhornia cras-sipes) in Rwanda using multispectral remote sensing imagery. African Journal of Aquatic Science https://doi.org/10.2989/16085914.

Munyati, C, Balzter, H. & Economon, E.B. 2020. Correlat-ing Sentinel-2 MSI-derived vegetation indices with in-situ reflectanceandtissuemacronutrientsinsavannahgrass.International Journal of Remote Sensing 41:3820-3844.

Mupambwa, H.A., Hausiku, M.K., Nciizah, A.D. & Dube, E. 2019. The unique Namib desert-coastal region and its op-portunities for climate smart agriculture: A review. Cogent Food & Agriculture https://doi.org/10.1080/23311932.

Myeni, L., Moeletsi, M.E., Thavhana, M.P., Randela, M.Q.&Mokoena,L. 2019.Barriersaffecting sustainableagricultural productivity of smallholder farmers in the east-ern Free State of South Africa. Sustainability DOI: 10.3390/su11113003.

Nape, K.M., Magama, P., Moeletsi, M.E., Tongwane, M.I., Nakana, P.M., Mliswa, V.K., Motsepe, M. & Madikiza, S. 2019. Introduction of household biogas digesters in rural farming households of the Maluti-a-Phofung municipality, South Africa. Journal of Energy in Southern Africa 30:28-37.

Newete, S.W., Allem, S.M., Venter, N. & Byrne, M.J. 2019. Tamarixefficiencyinsaltexcretionandphysiologicaltoler-ance to salt-induced stress in South Africa. International Journal of Phytoremediation DOI: 10.1080/15226514.


Roopnarain, A., Nkuna, R., Ndaba, B. & Adeleke, R.A. 2019. New insights into the metagenomic link between pre-treatment method, addition of an inoculum and bio-methane yield during anaerobic digestion of water hyacinth (Eichhornia crassipes). Journal of Chemical Technology and Biotechnology DOI: 10.1002/jctb.6129.

Shabalala, Z.P., Moeletsi, M.E., Tongwane, M.I. & Mazi-buko, S.M.2019.Evaluationof infillingmethods for timeseries of daily temperature data: Case study of Limpopo Province, South Africa. Climate DOI: 10.3390/cli7070086.

Venter, N., Mkasi, M., Mudau, P., Newete, S.W., Cowie, B.W.,Witkowski,E.T.F.&Byrne,M.J.2019.Differencesbe-tween sun and shade habitats on the invasive shrub Lan-tana camara and its biocontrol agent Teleonemia scrupu-losa. Arthropod-Plant Interactions https://doi.org/10.1007/s11829-019-09713-z.

Waldner, F., Bellemans, N., Hochman, Z., Newby, T.S., De Abelleyra, D., Verón, S.R., Bartalev, S., Lavreniuk, M., Kus-sul, N., Le Maire, G., Simoes, M., Skakun, S. & Defourny, P. 2019. Roadside collection of training data for cropland mapping is viable when environmental and management gradients are surveyed. International Journal of Applied Earth Observation and Geoinformation 80:82-93.

Winarto, Y.T., Walker, S.&Ariefiansyah,R.2019.People,clouds, and roots - Between the unseen, the seen, and the unforeseen. Nature and Culture 14:236-250.

Zuma-Netshiukhwi, G.N.C. & Mphandeli, S. 2019. The capabilities of interdisciplinary approach to strengthening farmers’ resilience to climate variability and change. Inter-national Journal of Research in Agriculture and Forestry 6:18-25.


Masters Gcayi, S.R. 2019. Predicting soybean (Glycine max (L.) Merr) grain yield using remote sensing. Master of Science (Geography), University of the Free State.

Grootboom, L.S. 2018. Nitrogen and phosphorus release and potential fertiliser effects of biogas slurry on spin-ach yield. Master of Science (Soil Science), University of KwaZulu-Natal.

Maripa, M.R. 2019. Spatial variability of hydraulic proper-tiesasaffectedbyphysicalpropertiesofselectedsoiltypesin South Africa. Master of Science in Agriculture (Soil Sci-ence), University of Venda.

Mazibuko, S.M. 2019.AssessingdroughtandfloodsusingGIS and remote sensing in the Luvuvhu River Catchment, Limpopo Province. Master of Science (Environmental Ge-ography), University of the Free State.

Tsipinana, S. 2019. The impact of fertilizer application, tillage systems and crop rotation on soil health and rhizo-sphere microbial community structure under maize-soy-bean plantation. Master of Science (Environmental Sci-ence), University of South Africa.

CHAPTERS IN BOOKS

Adeleke, R.A., Nunthkumar, B., Roopnarain, A. & Obi, L. 2019. Applications of plant-microbe interactions in agro-ecosystems. Chapter 1 in: V. Kumar, R. Prasad, M. Kumar & D.K. Choudhary (eds) Microbiome in Plant Health and Disease - Challenges and Opportunities. Springer: Singapore, pp. 1-34.

Adeleke, R.A., Raimi, A.R., Roopnarain, A. & Mokubedi, S.M. 2019. Status and prospects of bacterial inoculants for sustainable management of agroecosystems. Chapter 7 in: B. Giri, R. Prasad, Q. Wu & A. Varma (eds) Biofertiliz-ers for Sustainable Agriculture and Environment. Springer: Switzerland, pp. 137-172.

Winarto, Y.T., Walker, S., Ariefiansyah, R., Lisan, I.H.,Bestari, M.Y. & Audina, T. 2020. University’s inclusion in providing climate services to farmers: Is it possible without agricultural agents and farmer facilitators? In: W.L. Filho, G.J. Nagy, M. Borga, P.D.C. Muñoz & A. Magnuszewski (eds) Climate Change, Hazards and Adaptation Options - Handling the Impacts of a Changing Climate. Springer: Switzerland, pp. 835-852.


Maake, R., Masupha, E.T., Chirima, J.G., Moeletsi, M.E. & Beukes, P. 2019. The Umlindi Newsletter: Disseminat-ing climate-related information for agriculture and natural disaster in South Africa. In: 35th Annual Conference of the South African Society for Atmospheric Sciences (SASAS), Vanderbijlpark, 8-9 October 2019, pp. 64-67.

Mazibuko, S.M., Mukwada, G. & Moeletsi, M.E. 2019. Rainfall variability in relation to the frequency of dry and wet years in the Luvuvhu River Catchment Area, Limpopo Province. In: 35th Annual Conference of the South African Society for Atmospheric Sciences (SASAS), Vanderbijl-park, 8-9 October 2019, pp. 73-74.

Myeni, L., Moeletsi, M.E. & Clulow, A. 2019. Evaluation of three models for estimating daily net radiation within the FAO Penman-Monteith method in southern Africa. In: 35th

Annual Conference of the South African Society for Atmo-spheric Sciences (SASAS), Vanderbijlpark, 8-9 October 2019, pp. 88-91.

Tongwane, M.I. 2019.Variability of diffuse solar fractionand its relationship with atmospheric water vapour pres-suredeficit inSouthAfrica.In:35th Annual Conference of the South African Society for Atmospheric Sciences (SA-SAS), Vanderbijlpark, 8-9 October 2019, pp. 79-83.


ARC-GRAIN CROPS

The ARC-Grain Crops (ARC-GC) Campus was es-tablished in 1981 in Potchefstroom in the North-West Province. Strategic and need driven research involves cultivar evaluation, plant breeding, improvement of crop quality, weed control, conservation agriculture, plant nutrition, climate resilience, crop modelling, crop estimate, plant pathology, entomology and nematology. The ARC-GC is mandated to serve the summer grain as well as oil and protein seeds sectors.

The Campus conducts research and development to enhance national productivity and the competitiveness of relevant producers and related industries. The ARC-GCresearchersconductfield trialsatbothon-stationand on-farm sites in all the nine provinces. In addition, the Campus is involved in training new commercial farmers and extension officers, andmaintains gene-banks of the mandated crops as national assets.

The ARC-GC mandated summer grain crops are maize, sorghum and pearl millet. The oil and protein seed crops include bambara, cowpea, dry bean, groundnut, soybean and sunflower. New crops currently underevaluationarefingermillet,lentil,pigeonpeaandrice.

In addition to other ARC Campuses, the ARC-GC col-laborates with both local and international partners in International Agricultural Research Centres (CIMMYT, CIAT, ICRISAT, IITA, IRRI), Universities, Private Seed Companies, NGOs, NARS, etc.


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Development of integrated disease control systems

Integrated disease control systems form an important com-ponent of the overall disease-management approach. The development of integrated disease control systems de-pends on thorough knowledge of the cropping systems as well as of the pathogen, and can only be achieved by interdisciplinary research.

The plant pathology group at the ARC focuses on the de-velopment of integrated disease control systems for vari-ous crops including maize, soybean, groundnut and sun-flower.ThegroupcontributedavastamountofknowledgetowardsmycotoxinsingraincropsinSouthAfricaindiffer-entcroppingsystems,aswellasmoreeffectivescreeningtechniques for these toxins under laboratory conditions.

By studying and understanding the Fusarium verticillioides and F. graminearum spp.complex,theyidentifiedpotentialhigh mycotoxin risk areas through mapping and modelling. Geographicspecificityofmycotoxinsduetoenvironmentaldifferenceswereillustratedaswellaspreferredtissuesforfungal infection. They also established the pathogenicity and toxigenicity of F. verticillioides isolates collected from maize roots, stems and ears in South Africa. Their research showed that conservation agriculture can be used without the possibility of drastically increasing disease (except for Diplodia) and mycotoxin contamination in South African maize grain.

It was demonstrated that maize that has Bt technology (Bt maize) is not attacked by stalk borer, such as Busseola fusca, that are vectors of ear rot and mycotoxin-produc-ing fungi such as F. verticillioides. It was also demonstrat-ed that stressors have an effect on fungal infection andmycotoxin production. Fungal infection and fumonisins tend to increase as plant densities increase. This places commercial farmers with high plant densities at risk for an increase in fungal infection and fumonisin contamination.

Furthermore, it was also demonstrated that prophylactic fungicides for the control of maize leaf diseases increased fumonisins and this is being investigated further. The pa-thologists studied the occurrence, distribution and myco-toxigenic potential of F. subglutinans and F. temperatum in subsistence and commercial maize producing areas of SA and reported that it is not a risk for maize production in South Africa.

AquantitativePCRfortherapidandaccurateidentificationandquantificationof twelve fungalpathogensassociatedwith soil borne diseases of maize in South Africa was de-veloped by the group.

Macrophomina phaseolina is the causal organism of char-coalrotinmorethan500plantspecies.Thisfungusflour-ishes under dry, hot conditions and is increasing in inci-dence and severity.

Theplantingofresistantvarietiesremainsthemosteffec-tivemanagementpracticeascroprotationwillbeineffec-tive due to a wide host range. Farmers frequently enquire regarding levels of resistance of maize varieties with re-gards to charcoal rot and up until recently, this informa-tion was lacking. Thirty cultivars (medium growers) are screened annually for M. phaseolina resistance, and the results now provide assistance information to the industry with regard to cultivar choices and the subsequent man-agement of charcoal rot in maize production. The stability of resistance of different cultivars toM. phaseolina over seasonscanforthefirsttimebemonitoredandinformationused in breeding Programmes.

Maize plant stems infected by Fusarium graminearum (Gibberella).

Maize ear infected by Fusarium verticillioides.


New drought tolerant and insect-protected maize hybrids released

The ARC maize breeding team participated in an inter-national public-private partnership project called Water Efficient Maize for Africa (WEMA). The project partnerswere research organisations of South Africa (ARC), Mo-zambique, Kenya, Ethiopia, Tanzania and Uganda as well as the African Agricultural Technology Foundation (AATF, based in Nairobi, Kenya), International Maize and Wheat Improvement Center (CIMMYT) and Bayer (previously Monsanto). The Bill & Melinda Gates Foundation (BMGF), HowardG.BuffettFoundation(HGBF)andUSAIDfundedthe project. The project aimed to enhance food security and improve ru-ral livelihoods among smallholder farmers in sub-Saharan Africa through development and deployment of drought tol-erant and insect-protected maize hybrids. WEMA products are drought tolerant conventional and transgenic (GM) hy-brids that give at least 25% yield advantage under moder-atedroughtconditions.Thisyieldbenefitisfurtherprotect-ed by the inclusion of Bayer’s Bt (MON89034) transgene to confer resistance to stem borers and fall armyworm. This contributes to increase and stabilise maize production and foodself-sufficiencyatthehouseholdlevel.

The ARC, in collaboration with the WEMA partnership, de-veloped and registered 16 conventional drought tolerant maize hybrids that are marketed under the trade name DroughtTEGO®. Farmers growing some of these hybrids (e.g., WE3127 and WE3128) have reported bumper yields even in drought years. The ARC also released and regis-tered fiveGMhybrids (WE6206B,WE6207B,WE6208B,WE6209B and WE6210B) with the Bt (MON89034) trans-gene, that are marketed under the trade name Drought TELATM. These hybrids have resistance to both stalk bor-er and fall armyworm as well as tolerance to drought and low soil nitrogen. Seed of the Drought TELATM hybrids is sold royalty-free to smallholder farmers. This makes the Bt technologyaffordabletosmallholderfarmers.SeedoftheDroughtTEGO® and Drought TELATM hybrids is marketed by licensed local seed companies. The ARC-GC maize breeding team, in collaboration with provincial departments of agriculture, planted the WEMA hybrids in smallhold-er farmers’ fields in Gauteng, KwaZulu-Natal, Limpopo,Mpumalanga and North West provinces, to create aware-ness as well as to train farmers on good agronomic practic-es and insect resistance management. Five hundred pro-motional packs (2kg each) of the Drought TELATM hybrids were given to smallholder farmers in Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga and North West provinces for planting during the 2017/18 summer season. The Drought TELATM hybrids have been widely adopted by smallholder farmers in Limpopo and Mpumalanga provinces. The fall armyworm has proved to beverydifficulttocontrolusingpesticidesandsomesmall-holder farmers have reported 100% yield losses. In 2018 and 2019, the Mpumalanga Department of Agriculture ac-quired about 18 and 85 tonnes of TELA seed, respectively, for its smallholder farmers. Farmers growing the TELA seed wereabletocontrol thefallarmywormeffectivelydespitethe province being declared a disaster in 2019/20 summer season due to the fall armyworm.

Smallholder farmer’s crop free of fall armyworm

(DroughtTELATM Hybrid).

ARC supporting farmer with crop crop severely damaged

by fall armyworm in the Mpumalanga province.

Evaluation of conservation agriculture principles on two soil types in the Highveld

The area in South Africa devoted to conservation agricul-ture (CA) is still small due to, among others, uncertainty if it will succeed in the local environment and soils. The main benefitofCAissoilconservation,therecoveryofsoilqual-ityandthesustainabilitythatflowsfromit.Twofieldtrialswere established on a sandy Clovelly and a sandy-loam Hutton soil in the northwestern Free State and North West provinces, respectively with the aim of comparing conven-tionally-produced maize with maize produced in three con-servation agriculture crop systems. The cropping systems consisted of mono-cropped conventionally-tilled maize (mouldboard ploughed on the sandy-loam and deep ripped on the sandy soil), which served as control (CT) and three CA systems namely:

1. no-till mono-cropped maize; 2. no-till maize-legume rotation; and 3. no-till millet-maize-legume rotation.

Onthesandy-loamsoilofBuffelsvalleiCApracticesresult-ed in similar or increased yields due to CA. No-till resulted to an average improvement of 1407 kg ha-1 (34%). Rotation with cowpeas only, or, millet followed by cowpeas improved the yield of maize with a further 150 to 744 kg ha-1.


Planting under minimum tillage system.

Improvements inyield,andrainfalluseefficiencies,werepresent especially during seasons with drought when the CA yields were between 2641 and 4804 kg ha-1 higher than the yields of the CT system. Indications are that improve-mentsinyieldsandrainfalluseefficiencieswereduetoanimprovement of the infiltration rate of rainwater into thesoil. No-till did not result in improved yields on the extreme-ly sandy soil at Erfdeel. It is recommended that testing dif-ferent no-till crop rotation systems, including aspects such as cover crops and the inclusion of animal production, for theirprofitabilityandproductionriskinthesandy-loamandsimilar soils is needed.

National Cultivar TrialsThe national cultivar trials play an important role in ensur-ing that the benefits of crop breeding research are ade-quately transferred to farmers. Failure to provide farmers with an understanding of the performance of all commer-cially-available crop cultivars in different locations maylead to the adoption of both adapted and poorly-adapted cultivars, which could have an impact on yields. For ex-ample, during the 2016/17 and 2017/18 planting seasons there was a spike in new cultivars introduced and new companies joining the soybean seed market. That was due to a renewed interest in soybean production in gen-eral, which is illustrated by the sharp increase in hectares planted during the 2017 (787 200 ha) planting season. The averagecommercialyieldfluctuates from1.6 to2.3 t/ha,depending on weather patterns.

National soybean yields are relatively low due to the ex-pansion of soybean production to the drier western areas of the country. However, the results of the national soybean trials showed an increase in the average yield over the past four years 2540, 2926, 3245 and 3457 kg/ha, respectively from 2015/16 to 2018/19 seasons.

Thedifferencebetween thebestandpoorestperformingcultivars also illustrated the improvement in adapted cul-tivars entering the market 777, 1 064, 1 016 and 1 027 kg/ha, respectively for the four years, which resulted in in-creased income of R4 662, R6 384, R6 096, and R6 162/ha at a product price of R6 000/tonne. This emphasises the importance of cultivar trials in assisting farmers to make the best cultivar choice.

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larval mIgraTIon BehavIour oF aFrIcan sTem Borer on BT and non-BT maIze

The African stem borer (Busseola fusca) is a destructive pest of maize and sorghum throughout sub-Saharan Af-rica. Multiple applications of broad-spectrum insecticides have historically been the norm for the control of stem bor-ers in commercial maize farming systems in South Africa until the commercial release of genetically engineered Bt maize in 1998. Btmaizeisaneffectivecontrolmeasureforthis pest; however, selection pressure for resistance evolu-tion is high. This necessitates the implementation of insect resistance management (IRM) strategies such as the high-dose/refuge strategy. This IRM strategy relies on the va-lidity of several assumptions about the behaviour of pests during insect-host plant interactions. Since agriculture in Africa is practiced largely on smallholder and subsistence farming plots, a generic IRM strategy developed for com-mercialagriculturewillmostlikelynotbeeffective,duetothe challenges provided by implementing structured refug-es. Instead, it is essential that IRM approaches be tailored tobestfitthebehaviourofthetargetpestspeciesandthescale of production. In this study, the migration behaviour ofstemborerlarvaewasevaluatedinasemi-field(green-house) and field setting. Two Cry1Ab-resistant popula-tions, collected in the Vaalharts region in 2016 (VAA16-R) and Harrismith region (HAR18-R), were used in this study. Theeffectof factorssuchasdifferentCryproteins,plantgrowth stage at infestation, and plant density on the rate and distance of larval migration were investigated over four andfiveweekperiods.Migrationsof the larvaewere re-corded by using both a leaf feeding damage rating scale and destructive sampling at the end of the trials.

African stem borer larva. Inoculating maize plants with African stem borer.

Results indicated that stem borer larval migration success wassignificantlyaffectedbyplantgrowthstageandplantdensity, while limited larval migration was recorded in plots inoculated with larvae at a late growth stage (V10), higher plant density facilitated increased interplant migration. The results also suggest that stem borer larvae do not migrate extensively (rarely further than two plants from the natal plant) and that larval mortality is high.


hIgh-ThroughpuT planT phenoTypIng plaTForm InsTalled aT arc poTcheFsTroom campus

In February 2020 the ARC and Phenospex teams suc-cessfully installed a high-throughput, automated, digital plant phenomics system on the ARC-GC Campus. The FieldScan system is an ultra-high-throughput, automated system that allows plant phenotyping under most weath-er conditions. The FieldScan’s PlantEye F500s use LiDar scanners to produce a three dimensional point cloud image ofplantsasthegantrymovesat±25mmpersecondalongthefield.TheLiDarsystemcapturesthedistortionofala-ser line as it moves over the uneven plant surfaces, thus al-lowing it to determine the three dimensional structure of the surface. Multi-spectral images in the near infrared (NIR), red, blue and green wavelengths, are taken together with the LiDar image to allow overlaying of these onto the three dimensional image. Changing environmental light condi-tionsinthefieldarecompensatedforbyexposingplantswithspecificwavelengthLED lightpulses,correspondingto each sensor, during image capturing. The capturing of thedifferent lightwavelengthsenables these tobeanal-ysedseparatelytoallowdifferentplantindicestobedeter-mined, as well as to track colour changes in the plant due toaspecifictreatment.

The ARC system contains a number of PlantEye F500 scanning units that are mounted in pairs and at an angle to allow the scanning capacity of more than 1,000 square meters every two to three hours. This double-scanner con-figurationaimstoaddressthe“shading”limitationofover-lapping leaves when scanned from above. The “shadow ef-fect”, cast by the top plant parts to those below, is reduced by imaging in stereo and at a slight angle from the top. This lowers the influenceofoverlapping leavesoften found incrops such as maize and other cereals.

Experiments can either be run on single plants, single plants in non-overlapping rows or in plant blocks when av-eragesaremeasured.Eachexperiment isdefined in thesoftware during the experimental layout and identified inthefieldwithbarcodes.Plantplacements in thefieldarereflected in the software and therefore accurate plantingis key.

Once installed the FieldScan system recognises an ex-periment by reading a barcode placed prior to the exper-iment.Thebarcodeheightisfixedandallowsthesystemto calibrate the “z-axis” before each experiment, with the scanningwidth(y-axis)perrowset to1masdefinedbythe PlantEye scanners. The experimental layout associat-ed with the barcode assigns image data to either a single plant in the design or the block. An experiment is ended by another barcode, with the plant size and block length definedintheexperiment.

Datacapturedissentviaawirednetworktotheinfieldnet-workswitchandsubsequentlyover fibre to theanalysesserver in the ARC server room for analyses. Weather data, fromtheinfieldweatherstation,islinkedtotheFieldScandata in real time and sent with the image data to the server forprocessing.Theability toautomaticallyscan thefieldmultiple times throughout the day and across the season not only increases precision but also the ability to study

plant growth rates, digital plant biomass accumulation, treatmenteffectsovertime,etc.TheFieldScaninstrumentallows automated, high-precision phenotyping to improve thequalityoffieldresearchwithanentirenewdimensionof plant data.

Thefacility,thefirstofitskindinAfrica,willgivetheARCacompetitive advantage in conducting precision phenotyp-ing for projects on stress tolerance/susceptibility to biotic and abiotic stresses such as drought, herbicide damage, etc. Precision phenotyping provides the high quality data required for genomics studies, and therefore complements very well the facilities at ARC-BTP. The facility may be utilised by researchers from the ARC, academia and the privatesector.The facilitywasfinancedby theARCanda NRF National Equipment Programme grant (Grant ID 93224). The total cost, which includes both the instrument, its components and the ground works, was around R15 million.

A High-throughput FieldScan.


zero hunger: reducIng posTharvesT losses In smallholder FarmIng In souTh aFrIca

Due to the favourable climatic conditions in South Africa, pests can attack cereal grains and pulses during storage, resulting in grain losses. Reducing postharvest losses can become crucially important in agricultural communities with insecure harvests. The commercial farming sector in South Africa has access to modern storage facilities such as pri-vately managed storage silos. It is in the resource-poor smallholder farming systems where stored product protec-tion is a major constraint. In addition, storage mycotoxigen-ic fungi can produce mycotoxins that are toxic to humans and livestock. The ARC has thus conducted research on reducing postharvest losses as well as the consumption of mycotoxin-contaminated grain. Studies were conducted in smallholder farming systems in Pongola, Vryheid, Jozini, Manguzi and Mbazwana in northern KwaZulu-Natal (KZN) as well as in Mbizana and Mt Frere in the Eastern Cape Province. Metal tanks and inqolobane (a type of wooden structure) were the most common storage structures used in KZN while polypropylene bags, which can be easily damaged by pests, were the predominant method of stor-age in the Eastern Cape. Harvested home-grown maize was mostly consumed within the household but also some-times sold to the local community.


Damaged or mouldy grain was largely used as animal feed, thereby exposing animals to an increased risk of mycotox-icoses. Over 90% of the farmers surveyed were not aware of mycotoxins and their consequences. Storage facilities used by the subsistence farmers allowed increased mois-tureandinsectinvasionresultinginsignificantpostharvestlosses due to damage by the Sitophilus zeamais weevil, fungal infection and concomitant mycotoxin contamination. Therefore, the need for improved storage practices, myco-toxins control and mycotoxin awareness campaigns in sub-sistence-farmed food crops is vital. For instance, hermetic storage is at present seen as the most promising technolo-gy for reducing postharvest losses in smallholder farming, and farmers were advised on its importance.

Moreover, the establishment of public-private partnerships and cooperation with international development partners is also important in agro-processing and value chain devel-opment at smallholder level. To this end, the ARC-GC col-laborated with the Centre for Coordination of Agricultural Research and Development for Southern Africa (CCARDE-SA) and the German Corporation for International Cooper-ation GmbH (GIZ) to conduct the studies in the Eastern Cape Province as well as the Maize Trust and the National Research Foundation (NRF) for the work in KwaZulu-Na-tal. The results of this research produced an MSc Thesis, onescientificpublicationandabookchapter.

a b

Common storage facilities for maize utilised by subsistence farmers in districts of northern KwaZulu-Natal:

(a) metal tank (b) inqolobane.


maIze InFormaTIon guIde (mIg) app

TheARClaunchedthefirsteverSouthAfricaMaizeInfor-mation Guide for commercial and smallholder maize farm-ers across the Southern African Development Community (SADC) region, on 20 February 2020. The Maize Informa-tion Guide is a mobile application (App) which comprises current collection of scientifically proven information onmaize production, insect identification, diseasemanage-ment, and the control of weeds and nematodes. The Maize Information Guide integrates agriculture and information technology that will assist commercial and smallholder farmers in increasing their yields, competitiveness and profitability, and contribute to food and nutrition security.The Maize Information Guide can be downloaded free of charge from Google Play Store.


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JOURNAL ARTICLES

Botha, A.S., Erasmus, A., du Plessis, H. & Van den Berg, J.2019.EfficacyofBtMaizeforControlof Spodoptera fru-giperda (Lepidoptera: Noctuidae) in South Africa. Journal of Economic Entomology 112(3):1260-1266.

Cichy, K.A., Wiesinger, J.A., Berry, M., Nchimbi-Msolla, S., Fourie, D., Porch, T.G., Ambechew, D. & Miklas, P.N. 2020. The role of genotype and production environment in determining the cooking time of dry beans (Phaseolus vulgaris L.). Legume Science e13. https://doi.org/10.1002/leg3.13.

Craven M., Mokoena, P.T., Van der Walt, M.M., Morey, L. & Saayman-du Toit, A.E.J. 2019. Hierarchical ranking of Urochloa mosambicensis (Bushveld herringbone grass) and Urochloa panicoides (Herringbone grass) competitive-ness in four soil environments. South African Journal of Plant and Soil 36(5):381-384.

Das, B., Atlin, G.N., Olsen, M., Burgueño, J., Tarekegne, A., Babu, R., Ndou, E.N., Mashingaidze, M., MB, Lig-eyo, D., Matemba-Mutasa, R., Zaman-Allah, M., Vicente, F.S.,Prasanna,B.M.&Cairns,J.E.2019.Identificationofdonors for low-nitrogen stress with maize lethal necrosis (MLN) tolerance for maize breeding in sub-Saharan Africa. Euphytica 215:80(4):1-15.

Erasmus, R., Pieters, R., Du Plessis, H., Hilbeck, A., Trtiko-va, M., Erasmus, A. & Van den Berg, J. 2020. Introgression of a cry1Ab transgene into open pollinated maize and its effectonCryproteinconcentrationandtargetpestsurviv-al. PLoS ONE 14(12): e0226476. https://doi.org/10.1371/journal.pone.0226476.

Kujane, K., Serdibe, M.M. & Mofokeng, A. 2019. Genetic diversity analysis of soybean (Glycine max (L.) Merr.) gen-otypes making use of SSR markers. Australian Journal of Crop Science AJCS 13(07):1113-1119.

Ma’ali, S., Makgoga, W., Erasmus, J. & Swanepoel, S. 2019. Genotype-by-environment interaction and yield sta-bilityofsunflowerhybridsacrossproductionenvironmentsin South Africa. South African Journal of Plant and Soil 36(4):271-276.

Mofokeng, M.A. & Mashingaidze, K. 2020. Breeding and genetic management of drought in cowpea: Prog-ress and technologies. Australian Journal of Crop Science AJCS 13(12):1920-1926.

Mofokeng, M.A., Shimelis, H., Tongoona, P. & Laing, M.D. 2019. Protein content and amino acid composition among selected South African Sorghum Genotypes. Journal of Food Chemistry and Nutrition 6(1) P05000019.

Phokane, S., Flett, B.C., Ncube, E., Rheeder, J.P. & Rose, L.J. 2019. Agricultural practices and their potential role in mycotoxin contamination of maize and groundnut subsistence farming. South African Journal of Science 115(9/10):86-91.

Strock, C.F., Burridge, J., Massas, A.S.F. Beaver, J., Bee-be, S., Camilo, S.A., Fourie, D., Jochua, C., Miguel, M., Miklas, P.N., Mndolwa, E., Nchimbi-Msolla, S., Polania, J., Porch, T.G., Rosas, J.C. Trapp, J.J. & Lynch, J.P. 2019. Seedling root architecture and its relationship with seed yield across diverse environments in Phaseolus vulgaris. Field Crops Research 237: 53-64.

Visser, A., du Plessis, H., Erasmus, A. & van den Berg, J. 2019. Preference of Bt-resistant and susceptible Busseola fusca moths and larvae for Bt and non-Bt maize. Entomolo-gia Expertimentalis et Applicata 167(10):849-867.

Visser, A., du Plessis, H., Erasmus, A. & Van den Berg, J. 2020. Larval Migration Behaviour of Busseola fusca (Lepidoptera: Noctuidae) on Bt and Non-Bt Maize under Semi-Field and Field Conditions. Insects 11(1):16 https://doi.org/10.3390/insects11010016.

Visser, A., du Plessis, H., Erasmus, A. & van den Berg, J. 2020. Plant Abandonment by Busseola fusca (Lepidoptera: Noctuidae)Larvae:DoBtToxinsHaveanEffect?Insects 11(2):77https://doi.org/10.3390/insects11020077.

CHAPTERS IN BOOKS

Timper, P., Dickson, D.W. & Steenkamp, S. 2019. Nem-atode Parasites of Groundnut. Edited by: Sikora, R.A., Coyne, D. Hallmann, J. & Timper, P. Plant Parasitic Nem-atodes in Subtropical and Tropical Agriculture 3rd Edition. CABI. Chapter 11:411-445. ISBN 9781786391247.


ARC-SMALL GRAIN

The ARC-Small Grain (ARC-SG) Campus serves the South African small grain industry with research on wheat, barley, triticale and oats. As the country strives to be less dependent on imports (avg. 1.57 mil tons per annum over the past 5 years), ARC-SG does research on four pillars:

1. Pre-breeding;2. Cultivar development; 3. National Cultivar Evaluation Programme (NCEP); and 4. Crop Protection.

This Campus employs new technologies, including improved background selection and marker assisted selection together with a focus on high yielding cultivars. The NCEP team con-ductsannualfieldtrialsinallmajorproductionareasofSouthAfrica to supply reliable, independent, cultivar-choice guide-lines to small grain producers and policy makers. To achieve this, ARC-SG co-operates and co-ordinates with many role players in the industry to gather and present the results in guideline booklets.

Crop Protection research focusses on pre-emptive surveys. Such surveys also track new diseases entering SA. A mo-lecular screening service for weed resistance to herbicides is rendered to producers, facilitating correct herbicide choice.

Research at ARC-SG enables producers to be internationally competitive,inturnensuringtheavailabilityofaffordablehighquality cereals.

ARC-SG remains committed in rendering services and trans-ferringeffectivetechnologiestoallsmallgrainproducersandprocessing industries in South Africa, regardless of the size of the enterprise.

Innovative technologies are implemented to maintain and ex-tend the contribution that the small grain industry makes to the wealth and social welfare of all the people of the country, while conserving the country’s valuable natural resources.


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Pre-breeding wheat with natural resistance to Fusarium Head Blight using molecular markers

Fusarium Head Blight (FHB) is a devastating disease of wheat, that is primarily caused by the ubiquitous Fusarium graminearum fungal complex. This common pathogen is particularly problematic because it not only reduces wheat yields(↓10-40%). Italsoproducesmyco-toxins, themostpotent called Deoxynivalenol, which poses a large food se-curity risk. This toxin, commonly known as DON, is a vomi-toxin which is harmful to both humans and animals. Known effectsofDONingestionincludedeath(largedoses),vom-iting, birth defects and reduced growth in humans and ani-mals. Published amendments (Government Notice No 987 of 05 September 2016) to national mycotoxin regulations in grain specify that: “Raw cereal grains (wheat, maize and barley) intended for further processing, may only contain amaximumallowed limitof≤2000μg/kgDON.Inflour,meal,semolinaandbreakfastflakeproductsderivedfromwheat, maize or barley, which are ready for human con-sumption,amaximumallowedlimitof≤1000μg/kgDON”.These regulations directly affect the bread and brewingindustries making it imperative to protect wheat farmers. This can only be done sustainably by the deployment of FHB and mycotoxin resistant germplasm. Since the indus-try will not be able to buy seed lots contaminated with DON abovetheselimits,wheatfarmerswillsufferhugeeconom-iclossesiftheyhaveFusariuminfectionintheirfields.

Fusarium culture on a Petri dish.

International researchers report that FHB incidences/epi-demics are on the rise. Main contributing factors include climate change mediating the development of optimal mi-cro-environmental conditions, continual maize-wheat crop-ping systems, the planting of larger areas of highly sus-ceptible wheat cultivars, the limited availability of control/management possibilities. The latter is especially problem-atic considering the pressure to make use of the produc-tionbenefitsofconservationagriculturalpracticessuchasno-till, which harbour primary Fusarium inoculum from sea-son to season.

A wheat ear infected with Fusarium Head Blight.

This disease has been increasing in prevalence world-wide and is not easily controlled using fungicides. It is of great concern on wheat produced under irrigation in South Afri-ca as this fungal complex also infects maize causing ear-rot. The use of susceptible wheat cultivars in the maize-wheat crop rotation within no-till systems, maintains and spreads inoculum in crop residue. This supplies perfect conditions to promote FHB hot spots that perpetuate from season to season. No fungicides are registered in South Africa against FHB. Moreover, there is new evidence from international research that Bt-maize stubble can harbour the FHB inoculum for longer, as this Bt-stubble takes longer to decay and breakdown further exacerbating the problem. Internationally, the development of FHB disease and mycotoxin resistant cultivars is considered the most economic and environmentally-friendly method to address this growing problem. In wheat, resistance to Fusarium is controlled by many small genes known as quantitative trait loci or QTL. Acting together, these minor genes protect thewheatplantusingdifferenttypesofresistanceagainstthefungalcomplex.Thefirstis‘TypeI’whichisresistance


to initial penetration by the pathogen; the second is ‘Type II’ which is resistance to the spread of FHB disease symp-toms within an infected spike; and the third is ‘Type III’ re-sistance to the accumulation of DON in the infected grain. Theresistancetraitsarequantitativelyinheritedinfluencedbyenvironmentalfactorswithsignificantgenotype-by-envi-ronmentinteractions,makingfieldevaluationofresistancein multiple seasons essential before resistant lines can be released.

To support South African wheat breeders and producers, the ARC wheat pre-breeding project aims to develop wheat lines that are resistant to the local strains of the fungal complex. This diverse Fusarium head blight-resistant ger-mplasm is generated using marker-assisted backcrossing to develop near-isogenic pyramids of FHB resistant QTL/genes in top performing South African wheat cultivars, that are adapted to irrigation production areas. QTL/genes from fivedifferentdonorsourceswereidentifiedandusingmo-lecular markers the resistance was followed through the successive generations of crosses. These multiple back-crosses were made to regain a high percentage of the adapted cultivar parent genome. The germplasm that was developed contains an increased resistance to FHB dis-ease, reduction in DON mycotoxin contamination, reduced yield loss and kernel damage.

Another important focus of this project was to import wheat lines from abroad with potential resistance to the South Af-rican Fusarium fungal complex. Once imported, the lines were tested against the South African Fusarium complex tofindmoresourcesofresistance.Testingwascarriedoutin the field together with material from the pre-breedingProgramme. The ARC-SG Fusarium team screened ap-proximately 2000 wheat lines per year for resistance in the field.Theimportofseedrequestscanbeverychallengingduetovariousfactors.Somerequestsarenotfilledascer-tain countries are not willing to share material. Others are not available due to limited quantities of seed or strict phy-tosanitary requirements and regulations which are prohibit theflowofgermplasmbetweenresearchers. Theresultsofthisprojectwillbenefitcommercial,emerg-ing commercial and subsistence farmers by providing them with high yielding wheat cultivars that are highly resistant to FHB. This will prevent Fusarium head blight epidemics on farms, thereby resulting in higher and safer wheat yields, increasing revenue for the farmers families and communi-ties that depend on them. In addition, these cultivars will help prevent human illnesses and reduce the health risk associated with the consumption of food products contam-inated with DON. Furthermore, grain fed livestock will also be safe from mycotoxin ingestion. The losses prevented by deploying this type of resistant germplasm are calculated to run between R900-R5 000 per ha, once cultivars have been developed with this germplasm. A follow-up project, comprising a consortium of South African research insti-tutions will build further on the outcomes of this project. These validated FHB sources, in different SouthAfricancultivar backgrounds are at advanced backcross genera-tions (BC2F3, BC3F2 and BC4F2) and will form the ba-sis for the new FHB consortium project which will run from 2020.

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crop proTecTIon From wIThIn: a new approach In The use oF InsecT-kIllIng FungI

The project “Development of Bioinsecticides” is aimed at supporting research capacity and infrastructure for the de-velopment of bioinsecticides based on indigenous entomo-pathogenic microbes, i.e., fungi, viruses, bacteria and/or nematodes. Key aspects entail the development of tech-nologies for mass-producing and formulating high-qual-ity prototype products which can then be passed (under license) to the private sector for registration under The Fertilizers, Farm Feeds, Seeds and Remedies Act, 1947 ( Act No. 36 of 1947) and commercialisation (scale-up). The underlying objective of the project is to address and sup-port the National Environmental Management Act (NEMA) 1998 (Act No. 107 of 1998) through the development of pesticide reduction strategy. This approach may thus alle-viate the reliance on full-strength insecticidal products, an objective underscored in the Pesticide Management Policy (Notice 1120 of 2010) published in the Government Ga-zette, 24 December 2010.

Insect-killing fungi or entomopathogenic fungi (EPF) are naturally occurring microbes, commonly formulated into bioinsecticides as alternative remedy to harsh chemical in-secticides. One such fungus is Beauveria bassiana, used asactiveingredientinatleastfiveproductscurrentlyregis-tered in South Africa. Traditionally, these products are used in a topical fashion, i.e., sprayed onto crops/insects after which the fungus enters the insect and causes infection. During infection, insects typically show reduced feeding, followed by eventual death.

A new approach in harnessing these EPFs is a process wherebythefungusisartificiallyintroducedintotheplant,allowing it to grow internally (systemic) and termed endo-phytic.Endophytesare thereforedefinedasmicroorgan-isms that live within a plant without causing any harm to the host. These microbes have enormous diversity and every plant that has been examined for the presence of endo-phytes has at least one symbiotic fungal species. In these symbioses, the endophyte acquires nutrition and shelter from the host plant while, in exchange, some endophytes can increase host resistance through the production of unique chemicals, which negatively affect insects and/ordiseases. In addition, several studies have demonstrated enhanced plant growth, another added bonus linked to en-dophytism. Unveiling of B. bassiana’s endophytic ability is a recent advancement towards realising the full potential of this EPF and an aspect of its biology now actively re-searched by ARC in wheat, pecans and other crops. Both insect- and plant-derived (endophytic) ‘sources’ of B. bas-siana may be present in an agroecosystem, both of which may be in contact with plants.


In the first study, wheat seedling growth response, viz.,root length, shoot height, fresh root biomass, fresh and dry shoot biomass were investigated, following inoculation with a strain of this EPF. Initially, the fungus was passaged and re-isolated from an insect (IN) versus plant (PL) substrate andwhenfivewheatcultivarswereinoculatedwitheithertheINorPLisolatesthroughseedtreatment,asignificant-ly higher level of endophytism (roots, stems and leaves, combined) was recorded with IN (30%) compared with PL (26%). Cultivar ‘Baviaans’ responded best to endophytic colonisation at 34%, followed by ‘Tugela’ (31%), ‘Kariega’ (28%), ‘Gariep’ (26%) and ‘Elands’ (21%). On average, B. bassiana-treated plants showed a 71% growth increase over control plants. Moreover, the fungus retained patho-genicity to the Russian wheat aphid (RWA), after re-iso-lation from the wheat host plant and sprayed onto aphids topically. Currently, the appearance of ‘new’ South African biotypes of the RWA is a serious concern to the local wheat industry. In a study conducted abroad, the endophytic fun-gus Acremonium reduced attacks of RWA in perennial rye-grass as well as in Festuca;observationslaterconfirmedalso for wild barley. Researchers compared the behaviour and performance of RWA on endophyte-infected versus endophyte-freeperennialryegrassandreportedsignificantinhibition for both parameters among the endophyte-infect-ed plants. The ability of B. bassiana to successfully colo-nize wheat, coupled with the production of at least 7 known fungal metabolites, highlight the pest-suppressive potential of this microbe.

Wheat leaves infested with the Russian wheat aphid, Diuraphis noxia (Photo: Kobus Dreyer).

In a concurrent study, B. bassiana-endophytism was also investigated under the project “Insects associated with pecan trees, Carya illinoinensis: characterization, impact and control”. Several insect pests and various plant dis-eases reduce pecan yield, directly destroying nutmeats, or indirectlythrougheffectsonfoliageandshucks,reducingphotosynthesis. The potential for B. bassiana to exist as an endophyte in pecan had not been explored previous-ly. The study, in collaboration with the USDA-ARS, tested whether B. bassiana could endophytically colonize pecan seedlings by seed soaking, seed coating and soil drench-ing. Results indicated that the fungus became established in the roots, leaves and stems of pecan seedlings. Estab-lishmentwasverifiedusingmolecular techniquesaswellas completing mortality tests with the re-isolated fungus,

infecting two susceptible insect test-hosts (wax moth lar-vae and mealworm adults) and a target-pest (pecan wee-vil). Subsequently, the study also explored whether the es-tablished endophytic fungus suppressed two pecan aphid species. In a leaf-disc assay, populations of the yellow and black pecan aphid were reduced when placed on leaves of pecan that were colonised endophytically with B. bassiana, relative to control leaves.

As a novel approach in exploiting EPFs, this technolo-gy holds significant benefit for established-commercial,emerging-commercial and smallholder farmers. The tech-nology is also seen as a direct intervention in support of Government’s long-term pesticide reduction strategy, leading to a more sustainable and environmentally-sound agri-sector.

Pecan seedling (in Hartswater, Northern Cape) grown from seed inoculated with the fungus Beauveria bassiana

(Photo: Justin Hatting).


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JOURNAL ARTICLES

Akinnuoye-Adelabu, D.B., Hatting, J.L., De Villiers, C., Terefe, T. &Bredenhand,E.2019.Effectofredwormex-tracts against Fusarium root rot during wheat seedling emergence. Agronomy Journal 111(5):2610-2618.

Boshoff, W.H.P., Pretorius, Z.A., Terefe, T. & Visser, B. 2020. Occurrence and pathogenicity of Puccinia coronata var avenae f.sp. Avenae on aot in South Africa. Crop Pro-tection 133 DOI.org/10.1016.j.cropro.2020.105144.

Boshoff, W.H.P., Visser, B., Terefe, T. & Pretorius, Z.A. 2019. Diversity in Puccinia graminis f.sp. Avenae and its impact on oat cultivar response in South Africa. Eur Journal for Plant Pathology DOI: 10.1007/s10658-019-01845-5.

Dube, E., Tsilo, T., Sosibo, N. & Morris, F. 2020. Irrigation wheat production constraints and opportunities in South Af-rica. South African Journal of Science 116(1/2):60-65.

Dweba, C.C., Shimelis, H., Tapera, T. & Tsilo, T.J. 2019. Assessment of Fusarium Head Blight Resistance in Newly Developed Recombinant Inbred Lines of Wheat. Cereal Research Communications 47(2):277-291.

Hatting, J.L., Calitz, F.J., Du Toit, H. & Germishuizen, B. 2019.Effectofbroad-spectruminsecticideapplicationsoninsect pest damage and nut mass of pecan, Carya illinoin-ensis (Juglandaceae), in the Vaalharts production region of South Africa. International Journal of Tropical Insect Sci-ence 39(3):219-227.

Kwame, W.S., Shimelis, H., Mathew I. & Tsilo, T.J. 2019. Correlation and path coefficient analyses of yield andyield components in drought-tolerant bread wheat popu-lations. South African Journal of Plant and Soil https://doi.org/10.1080/02571862.

Motholo, L.F., Booyse, M., Hatting, J.L., Tsilo, T.J. & Thekisoe, M.M. 2019. Comparison of wheat growth-re-sponse to endophytic Beauveria bassiana (Hypocreales: Cordycipitaceae) derived from an insect versus plant host. Australian Journal of Crop Science 13(11):1793-1802.

Ramakuwela, T., Hatting, J., Bock, C., Vega, F.E., Wells, L., Mbata, G.N. & Shapiro-Ilan, D. 2020. Establishment of Beauveria bassiana as a fungal endophyte in pecan (Carya illinoinensis) seedlings and its virulence against pecan in-sect pests. Biological Control Vol 140 DOI.org/10.1016/j.biocontrol.

Ramulifho, E., Goche, T., Van As, J., Tsilo, T.J., Chivasa, S. & Ngara, R. 2019. Establishment and Characterization of Callus and Cell Suspension Cultures of Selected Sorghum bicolor (L.) Moench Varieties: A Source for Gene Discovery in Plant Stress Biology DOI: 10.3390/agronomy9050218.

Shamuyarira, K.W., Shimelis, H., Tapera, T. & Tsilo, T.J. 2019. Genetic Advancement of Newly Developed Wheat Populations under Drought-Stressed and Non-Stressed Conditions. Journal of Crop Science Biotechnology 22(2):169-176.


Masters

Makwela, M.M. 2019. Biodiversity of predatory beetle groups, Carabidae and Coccinellidae and their role as bio-indicators in wheat agroecosystems. Master of Science (Agriculture), University of South Africa.

Mamabolo, I. 2019. Diversity and functions of soil mac-rofauna in organic and conventional wheat ecosystems. Matser of Science (Agriculture), University of South Africa.


Khumalo, T.P., Barnard, A. & Tsilo, T.J. 2019. Evaluat-ing pre-harvest sprouting tolerance and thousand kernel weight in doubled haploid wheat populations. LACC/IGW 13th International Gluten Workshop Proceedings, pp. 78-80.

Lindeque, R.C., Van Biljon, A. & Labuschagné, M. 2019. Matchingopposites:definingtheassociationbetweengrainyield and protein content in South African wheat. LACC/IGW 13th International Gluten Workshop Proceedings, pp. 75-77.


ARC INFRUITEC-NIETVOORBIJ

The ARC Infruitec-Nietvoorbij (ARC-INF-NVB) Campus is located in the Western Cape. Its mandate is to conduct re-search and development together with technology trans-fer on the breeding, cultivation, protection and posthar-vest technology of deciduous fruit, grapevines, alternative crops (such as olives and pomegranates) and indigenous herbal teas.

The Campus is the custodian of valuable national assets in the form of gene banks that preserve genetic resourc-es of grapevine, deciduous fruit, wine yeast, fynbos and indigenous teas (rooibos and honeybush) for breeding purposes, training and comparative descriptions. Each divisionfocusesondifferentaspectsofresearchandde-velopment in fruit and wine production, such as sustain-able soil cultivation and management, irrigation, winery wastewater management, viticultural and horticultural practices to improve crop performance, integrated pest and disease control (pre- and postharvest), winemaking and postharvest processing of fruit and herbal teas. The major focus is on improved crop production and mitigation of agricultural risks, which include food security as well as the sustainable use of natural resources.

The Campus also provides a range of diagnostic and ana-lytical services to growers and technical advisors to assist with decision-making and helps to ensure sustainable, economically viable farming.


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Crop development

Breeding Programmes aim to provide growers with im-proved cultivars of pome fruit, stone fruit, fynbos, table and raisin grapes that are easy to grow and easy to sell - whether for the fresh market, drying or canning. In partic-ular, cultivars should be well-adapted to mild winters and hot summers, need minimal pesticides to control pests and diseases, have crop reliability (stable yield), have attractive fruitwithgoodappearance, textureandflavourandkeepwell in cold storage (for the fresh market), and look and taste good after drying or canning (for processing). Since April 2014 Plant Breeders’ Rights have been registered for a range of cultivars; 1 raisin cultivar (‘Sundowner’, the first-everSouthAfrican-bredraisincultivartobecommer-cially registered), 1 red seedless table grape cultivar (‘Joy-bells’), 5 Japanese plum cultivars (‘Afrigold’, ‘Flavour Star’, ‘Midnite’, ‘Red Gem’, ‘Royal Amber’), and 1 early-ripening nectarine cultivar (‘Alpearli’). Commercial apple production has traditionally been restricted to areas with cold winters. Five new cultivars that can be grown under warmer cli-mate conditions were also registered in the ‘Afri-Range’ of low chilling apples (‘Afri Blush’, ‘Afri Coral’, ‘Afri Glo’, ‘Afri Rose’, ‘Afri Star’). A new yeast, selected for red wine pro-duction, was released for commercialisation by CHR Han-sen under the commercial name ‘Jazz’.

‘Flavour Star’ red plum.

Crop production

Research to improve crop production has focused on the mitigation of agricultural risks, particularly those associated with climate change. Decreased rainfall and increased wa-ter demands associated with population growth and indus-trial expansion have resulted in less water being available for irrigation. Research conducted over many years culmi-nated in the recent publication of irrigation guidelines in the form of the Handbook for Irrigation of Wine Grapes, partic-ularly with respect to optimising wine quality and maximiz-ingwateruseefficiency.Theprimaryfocusofthebookison practical irrigation strategies and the scheduling there-

of, but it also addresses related aspects such as climate, soil properties, water quality, irrigation systems, and frost protection. An electronic version of the book is available, free of charge, at http://winetech.co.za/knowledge-trans-fer/e-books.

Cover crop cultivation plays an important role in sustain-able agriculture. It not only contributes to weed manage-ment and reducing the amount of herbicides used, but also improves soil texture and soil carbon content and helps to reduce evaporation of water from the soil. Knowledge gath-ered over three decades of research made it possible to develop practical guidelines for sustainable cover crop and weed management in vineyards, including all aspects of cover crop cultivation over the lifespan of a vineyard, from planting of the grapevines until full production and beyond.

Crop protection

Crop protection research focuses on identifying which pests and diseases cause economic damage and develop-ing environmentally sustainable, integrated pest manage-ment strategies for these pests and diseases. The trunk disease research team at ARC is recognized international-ly for being at the forefront of trunk disease research. Re-search showed that several fungi that cause trunk disease in grapevines also infect other woody hosts such as pome and stone fruit trees, as well as wild and cultivated olives.


Thisaffectsmanagementoftrunkdiseasesandemphasiz-es the importance of using disease-free planting material when re-establishing orchards and vineyards.

The current expansion in the production of alternative crops such as pomegranates and olives poses pest control challenges. The insects attacking cultivated olives in South Africa are all indigenous and most of them originate from indigenous wild olives, therefore information on their man-agement is not available from other olive-growing regions in the world. Researchers at ARC, in collaboration with col-laborators at the University of Palermo in Italy and Stel-lenboschUniversity, identifiedan indigenousseedwasp,Eupelmus spermophilus, that attacks cultivated olives. They showed that it is only of economic importance where olives grow in close proximity to wild olive trees, because the seed wasp requires wild olives to overwinter.

Indigenous crops

Rooibos (Aspalanthus linearis) and honeybush (Cyclo-pia species) are indigenous South African herbal teas renowned for theirhealthbenefits.ResearchbyARContheir phenolic composition guided new value-adding op-portunities. An aspalathin-rich extract from rooibos to miti-gate type 2 diabetes has been developed in collaboration with the South African Medical Research Council. A recent outcome of collaboration between the ARC and Japanese researchers led to the demonstration of immunomodulato-ry properties of honeybush extracts, aimed at preventing and/or mitigating allergies. In addition to supporting the herbal tea agro-processing industry through unlocking po-tential value and development of quality control tools such as sensory wheels and a honeybush grading system to ensure good quality herbal tea reaches the consumer, the ARC also played a crucial role in supporting the expansion of the agricultural industry. The honeybush breeding Pro-gramme developed higher-yielding selections that will not only increase production, but also lessen the dependence of the industry on wild-harvested plant material, which is not sustainable and would eventually result in biodiversity loss. SMMEs in communities are deploying the ARC hon-eybush genetic material through seed orchards, nurseries and plantations. This initiative, funded by DSI, helps to en-sure that the ARC improved genetic-bred material reaches commercial farmers, while jobs are created and new skills are transferred to communities.

Training and empowering small scale grape farmers

The ARC and SATI (South African Table Grape Industry), in collaboration with Raisins SA and the Elsenburg Agricul-tural Training Institute, present modular training courses in table and raisin grape production every year. The course is aimed at production managers or supervisors, experi-enced farm workers with the potential to progress to these positions, new farm owners and emerging farmers, techni-cal personnel of marketing companies and other agri-busi-nesses, as well as young people who cannot attend full time training Programmes. The focus of the training is to understand the “why” behind production practices. The fourteen modules of the course are usually presented over

eight or nine months in both the Western Cape province and in the Lower Orange River region.

The ARC has been supporting small scale and emerging farmers from the Eksteenskuil and surrounding communi-ties in the Orange River Valley, Northern Cape, for more than a decade by providing training and extension. Over thepastfiveyearsatotalof10trainingcourses,practicalworkshops and on-farm demonstrations have been pre-sented. Topics included grapevine pest and disease iden-tification,monitoringandcontrol; responsibleuseofcropchemicals; grapevine pruning; development and manage-ment of young vines; canopy management; Confronting Climate Change (carbon calculator); soil and water man-agement.

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new raIsIn grape culTIvar

The ARC grape breeding Programme has produced a new, white seedless raisin grape cultivar, named ‘Sundowner’, for the production of sundried raisins. Evaluation of the new selection was carried out in collaboration with emerging farmers in Groblershoop and Eksteenskuil in the Northern Cape. This formed part of a larger project in which these farmers are trained to evaluate raisin grape cultivars (i.e. what characteristics are important), graft selections and cultivars onto rootstocks, as well as to train young vines onto a trellis system and apply various pruning systems.

‘Sundowner’, a new ARC raisin grape cultivar.

‘Sundowner’ is a medium strong grower, fertile and bears medium sized bunches with roundish, crunchy berries, which produce high quality raisins. Trellis systems are very expensive, but a fertile cultivar such as ‘Sundowner’ can be trained onto a simple trellis system and pruned with short canes.Thismakesitaffordableandmoremanageableforemerging farmers. Higher yields of high quality raisins also generate higher income for these farmers.


Emerging farmers in the Northern Cape assisting with evaluation of the new ARC raisin cultivar ‘Sundowner’.

During the evaluation phase, there was interest and a de-mand for plant material from large scale commercial pro-ducers as well.A Plant Breeders’ Rights Certificate hasbeen issued for ‘Sundowner’.


pomegranaTes as a clImaTe smarT opTIon

Identifying crops that can be grown economically in areas where climate change and population pressure are limiting the amount and quality of water available for agriculture, while also providing for job creation, is a priority. Pome-granate is an alternative crop with climate smart production potential. Besides being sold and exported as whole fruit, pomegranates are also processed to produce punnets of arils or juice, which contributes to value adding and job cre-ation.

Accurate irrigation scheduling may decrease the prevalence

of sunburn in pomegranate orchards.

A scoping study, co-funded by the Western Cape Depart-ment of Agriculture Alternative Crop Fund through POMA-SA and the Water Research Commission, showed that pomegranate yield and fruit quality, as well as water use productivity could potentially be increased through im-proved irrigation scheduling.

This requires research on water use of pomegranate or-chards under local conditions, including the determination oflocalcropcoefficientsandthedevelopmentofamodelto estimate individual orchard water use. Increased usage of poorer quality water (e.g. saline or brackish water) for irrigation, particularly during drought periods, requires re-search to identify practices that will optimize and ensure sustainable production of pomegranate over the long-term under local conditions.


modular TraInIng course In TaBle and raIsIn grape producTIon

The ARC and SATI, in collaboration with Raisins SA and Elsenburg Agricultural Training Institute, present modular training courses in table and raisin grape production every year. Presenters included three researchers of the ARC, one presenter from SATI, one from Raisins SA and two from Stellenbosch University. The course is aimed at pro-duction managers or supervisors, experienced farm work-ers with the potential to progress to these positions, new farm owners, technical personnel of marketing companies and other agri-businesses, as well as young people who cannot attend full time training Programmes.

Demonstration of grafting techniques to course attendees.

In September 2019, the course was presented in the Oli-fants River region for the first time. Five candidates re-ceived certificates for successful completion of the fullcourse,while10othersreceivedcertificatesforcompletingspecificmodulesofthecourse.

In October 2019, two new rounds commenced in Uping-ton, Northern Cape, and De Doorns, Western Cape. In the Northern Cape, 28 learners (26 from previously disadvan-taged communities) attended all 10 days of the course. Four extension officers from the Northern Cape Depart-ment of Agriculture, Land Reform and Rural Development were part of this group. Raisins SA funded 26 learners through their Graduate Programme to attend the full 10 days of the course. In the Western Cape, 10 learners (7 from previously disadvantaged communities) attended four days of the course in October and November 2019.


Course attendees visiting a commercial nursery near

Kakamas, Northern Cape.

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KNOWLEDGE DISSEMINATION______________________________


JOURNAL ARTICLES

Abrahams, S., Samodien, S., Lilly, M., Joubert, E. & Gel-derblom,W.,2019.Differentialmodulationofgeneexpres-sion encoding hepatic and renal xenobiotic metabolising enzymes by an aspalathin-enrichedr rooibos extract and aspalathin. Planta Medica 85:6-13.

Adetunji, A.T., Ncube, B., Meyer, A.H., Mulidzi, A.R. & Lewu, F.B. 2019. Soil Alteration Index Three and Soil Organic Matter in Response to Cover Crop Species and Management Practices. Research Gate https://doi.org/10.17758/EARES8.EAP1119113.

Alexander, L., De Beer, D., Muller, M., Van der Rijst, M. & Joubert, E. 2019. Impact of steam-treatment on shelf-life stability of a xanthone-rich green herbal tea (Cyclopia mac-ulata Andrews Kies) - identifying quality changes during storage. Journal of the Science of Food and Agriculture 99:1334–1341.

Alexander, L., De Beer, D., Muller, M., Van der Rijst, M. & Joubert, E.2019. Bitterprofilingofphenolic fractionsof green Cyclopia genistoides herbal tea. Food Chemistry 276: 626-635.

Alexander, L., De Beer, D., Muller, M., Van der Rijst, M. & Joubert, E.2019.Potentialofbenzophenonesandflava-nones to modulate the bitter intensity of Cyclopia genistoi-des herbal tea. Food Research International 125: 108519.

Allsopp, E. & Fourie, J.C. 2019. Survival of vine mealy-bug, Planococcus ficus (Signoret) (Hemiptera: Pseudo-coccidae), on grapevine root remnants in soil in the West-ern Cape Province, South Africa. South African Journal Enology and Viticulture 40:253-259.

Allsopp, E. 2020. Olive seed wasps in culitvated olives- possible threat. South African Fruit Journal 19:84-85.

Allsopp, E. 2020. Thrips management in table grapes. South African Fruit Journal 19:63-65.

Belay, Z.A., Caleb, O.J. &Opara, U.L. 2019. Influenceofinitialgasmodificationonphysicochemicalqualityattri-butes and molecular changes in fresh and fresh-cut fruit duringmodifiedatmospherepackaging.Food Packaging and Shelf Life 21: 100359 https://doi.org/10.1016/j.fpsl.

Bophela, K.N., Petersen, Y., Bull, C.T. & Coutinho, T.A. 2020. Identification ofPseudomonas Isolates Associated With Bacterial Canker of Stone Fruit Trees in the Western Cape, South Africa. Plant Disease 104:882-892 https://doi.org/10.1094/PDIS-05-19-1102-RE.

Bovi, G.G., Caleb, O.J., Rauh, C. & Mahajan, P.V. 2019. Condensation regulation of packaged strawberries under fluctuating storage temperature. Packaging Technology and Science https://doi.org/10.1002/pts.2470.

Damiani, E., Carloni, P., Rocchetti, G., Senizza, B., Tiano, L., Joubert, E., De Beer, D. & Lucini, L. 2019. Impact of coldvshotbrewingonthephenolicprofileandantioxidantcapacity of rooibos (Aspalathus linearis) herbal tea. Anti-oxidants 8:499.

De Beer, D., Tobin, J., Walczak, B., Van der Rijst, M. & Joubert, E. 2019. Phenolic composition of rooibos chang-es during simulated fermentation: effect of endogenousenzymes and fermentation temperature on reaction kinet-ics. Food Research International 121: 185-196. https://doi.org/10.1016/j.foodres.2019.03.041.

Diaz, G., Mostert, L., Halleen, F., Lolas, M., Gutierrez, M., Ferrada, E. & Latorre, B.A. 2019. Diplodia seriata associat-ed with Botryosphaeria canker and dieback in apple trees in Chile. Plant Disease 103:1025 https://doi.org/10.1094/PDIS-10-18-1785-PDN.

Dlamini, T.M., Allsopp, E. & Malan.A.P. 2019. Efficacyof entomopathogenic nematodes against western flowerthrips, Frankliniella occidentalis (Thysanoptera: Thripidae), under laboratory conditions. African Entomolog 27: 322-335.

Dlamini, T.M., Allsopp, E. & Malan. A.P. 2019. Manage-ment of Frankliniella occidentalis (western flower thrips),and the potential use of entomopathogenic nematodes: a South African perspective. African Entomology 27:265-278.

Du Plessis, H., Du Toit, M., Nieuwoudt, H., Van der Rijst, M., Hoff, J. & Jolly, N. 2019. Modulation of Wine Flavor using Hanseniaspora uvaruminCombinationwithDifferentSaccharomyces cerevisiae, Lactic Acid Bacteria Strains and Malolactic Fermentation Strategies. Fermentation 5:64 https://doi:10.3390/fermentation5030064.


Dzedze, N., Van Breda, V., Hart, R.S. & Van Wyk, J. 2019. Wine chemical, sensory, aroma compound and protein analysis of wines produced from chemical and biologi-cal fungicide treated Chenin blanc grapes. Food Control 105:265-276.

Hart, R.S., Jolly, N.P. & Ndimba, B.K. 2019. Characteri-zation of hybrid yeasts for the production of varietal Sau-vignon blanc wine - A review. Journal of microbiological methods 165: 105699 DOI: 10.1016/j.mimet.2019.105699.

Havenga, M., Gatsi, G.M., Halleen, F., Spies, C.F.J., Van der Merwe, R. & Mostert, L. 2019. Canker and wood rot pathogens present in young apple trees and propagation material in the Western Cape of South Africa. Plant Dis-ease 103: 3129-3141 https://doi.org/10.1094/PDIS-04-19-0867-RE.

Huang, S.H., Tseng, J.C., Lin, C.Y., Kuo, Y.Y., Wang, B.J., Kao, Y.H., Muller, C.J.F., Joubert, E. & Chuu, C.P. 2019. Rooibos suppresses proliferation of castration-resistant prostate cancer cells via inhibition of Akt signaling. Phyto-medine 64:153068.

Human, C., De Beer, D., Van der Rijst, M., Aucamp, M. & Joubert, E., 2019. Electrospraying as a suitable method for nanoencapsulation of the hydrophilic bioactive dihydro-chalcone, aspalathin. Food Chemistry 276:467-474.

Hunlun, C., De Beer, D., Sigge, G.O., & Van Wyk, J. 2019. Phenolic composition and total antioxidant capacity of SouthAfricanfrozenconcentratedorangejuiceasaffectedbyvarietal,seasonalandregionaldifferences.Journal of the Science of Food Agriculture 99: 1029-1037.

Hutchinson, U.F., Gqozo, S., Jolly, N.P., Chidi, B.S., Du Plessis, H.W., Mewa-Ngongang, M. & Ntwampe, S.K. 2019. Aeration, agitation and cell immobilization on corn-cobsandoakwoodchipseffectsonbalsamic-styledvin-egar production. Foods 8:303 doi:10.3390/foods8020051.

Jack, B.U., Malherbe, C.J., Mamushi, M., Muller, C.J.F., Joubert, E.,Louw,J.&Pheiffer,C.2019.Adiposetissueas a possible therapeutic target for polyphenols: a case for Cyclopia extracts as anti-obesity nutraceuticals. Biomedi-cine & Pharmacotheraphy 120:109439.

Jayawardena, R.S., Hyde, K.D., McKenzie, E.H.C., Jeewon, R., Philips, A.J.L., Perera, R.H., De Silva, N.I., Maharac-hchikumburua, S.S.N., Samarakoon, M.C., Ekanayake, A.H., Tennakoon, D.S., Dissanayake, A.J., Norphanphoun, C., Lin, C., Manawasinghe, I.S., Tian, Q., Brahmanage, R., Chomnunti, P., Hongsanan, S., Jayasiri, S.C., Halleen, F., Bhunjun, C.S., Karunarathna, A. & Wang, Y. 2019. One stop shop III: taxonomic update with molecular phylogeny for important phytopathogenic genera. Fungal Diversity 98: 77-160.

Joubert, E., De Beer, D., Malherbe, C.J., Muller, M., Louw, A. & Gelderblom, W.C.A. 2019. Formal honeybush tea industry reaches 20-year milestone - progress of prod-uct research targeting phenolic composition, quality and bioactivity. South African Journal of Botany 127:58-79.

Knoetze, R., Van den Berg, C., Girgan, C. & Van der Walt, L. 2019. First report of the Root Lesion Nematode, Praty-lenchus hippeastri on Apple in South Africa. Plant Diseas-es and Protection https://doi.org/10,1007/s41348-019-00259-z.

Koen, J., Slabbert, M.M., Booyse, M. & Bester. C. 2019. Honeybush (Cyclopia spp.) pollen viability and surface morphology. South African Journal of Botany 128:167-173.

Langley, J., Cornwall, M., Powell, C., Costa, C., Allsopp, E., Van Noort, S., Guilbert, E. & Van Asch, B. 2020. First report of the lace bug Neoplerochila paliatseasi (Rodrigues, 1981) (Hempitera: Tingidae) infesting cultivated olive trees in South Africa, and its complete mitochondrial sequence. Zootaxa 4722:443-462.

Lesuthu, P., Mostert, L., Spies, C.F.J., Moyo, P., Regni-er, T. & Halleen, F. 2019. Diaporthe nebulae sp. nov. and First Report of D. cynaroidis, D. novem and D. serafiniae on grapevines in South Africa. Plant Disease 103:808-817.

Malyjurek, Z., De Beer, D., Joubert, E. & Walczak, B. 2019. Working with log-ratios. Analytica Chimica Acta 1059:16-27.

Marin-Felix,Y.,Hernández-Restrepo,M.,Wingfield,M.J.,Akulov, A., Carnegie, A.J., Cheewangkoon, R., Gramaje, D., Groenewald, J.Z., Guarnaccia, V., Halleen, F., Lom-baard, L., Luangsa-ard, J., Marincowitz, S., Moslemi, A., Mostert, L., Quaedvleig, W., Schumacher, R.K., Spies, C.F.J., Thangavel, R., Taylor, P.W.J., Wilson, A.M., Wing-field,B.D.,Wood,A.R.&Crous,P.W.2019. GeneraofPhytopathogenic fungi: GOPHY 2. Studies in Mycology 92:47-133.

Mathabe, P.M.K., Belay, Z.A., Ndlovu, T. & Caleb, O.J. 2020. Progress in proteomic profiling of horticulturalcommodities during postharvest handling and storage: A Review. Scientia Horticulturae 261:10899 https://doi.org/10.1016/j.scienta.

Mazibuko-Mbeje, S.E., Dludla, P.V., Johnson, R., Joubert, E., Louw, J., Ziqubu, K., Tiano, L., Silvestri, S., Orlando, P., Opoku, A.R. & Muller, C.J.F. 2019. Aspalathin, a natural product with the potential to reverse hepatic insulin resis-tance by improving energy metabolism and mitochondrial respiration. PLoS ONE 14: e0216172.

Mazibuko-Mbeje, S.E., Dludla, P.V., Roux, C., Johnson, R., Ghoor, S., Joubert, E., Louw, J., Opoku, A.R. & Muller, C.J.F. 2019. Aspalathin-enriched green rooibos extract re-duces hepatic insulin resistance by modulating PI3K/AKT and AMPK pathways. International Journal of Molecular Sciences 20:633.

Mewa-Ngongang, M., Du Plessis, H.W., Hlangwani, E., Ntwampe, S.K., Chidi, B.S., Hutchinson, U.F. & Jolly, N.P. 2019. Activity Interactions of Crude Biopreservatives against Spoilage Yeast Consortia. Fermentation 5: 53 https://doi:10.3390/fermentation5030053.


Mewa-Ngongang, M., Du Plessis, H.W., Ntwampe, S.K.O., Chidi, B.S., Hutchinson, U.F., Mekuto, L. & Jol-ly, N.P. 2019. The Use of Candida pyralidae and Pichia kluyveri to control spoilage microorganisms of raw fruits used for beverage production. Foods 8:454 DOI: 10.3390/foods8100454.

Mhelembe, K.G., Kriel, J.H., Bester, C., Roodt-Wilding, R., Louw, E. & Tobutt, K.R. 2020. Molecular characteri-zation of apple accessions with respect to aminocyclopro-pane-1-carboxylic acid synthase gene (ACS1) polymor-phism. Horticultural Science (Prague) 47:00–00 https://doi.org/10.17221/83/2018-HORTSCI.

Miller, N., Bosman, S.C., Malherbe, C.J., De Beer, D. & Joubert, E. 2019. Membrane selection and optimisation oftangentialflowultrafiltrationofCyclopia genistoides ex-tract for benzophenone and xanthone enrichment. Food Chemistry 292: 121-128. https://doi:org/10.1016/j.food-chem.2019.04.047 pp. 121-128. Minnaar, P.P., Du Plessis, H.W., Jolly, N.P., Van der Ri-jst, M. & Du Toit, M. 2019. Non-Saccharomyces yeast and lactic acid bacteria in Co-inoculated fermentations with two Saccharomyces cerevisiae yeast strains: A strategy to im-prove the phenolic content of Syrah wine. Food Chemistry https://doi.org/10.1016/j.fochx.

Moyo, P., Mostert, L. & Halleen, F. 2019. Diatrypaceae species overlap between vineyards and natural ecosys-tems in South Africa. Fungal Ecology 39:142-151.

Moyo, P., Mostert, L., Dedkind, R., van Jaarsveld, W.J., Pierron, R. & Halleen, F. 2020. First report of twig and branch dieback, caused by Eutypa lata, on Loquat in the Western Cape province of South Africa. Plant Disease 104: 992 https://doi.org/10.1094/PDIS-06-19-1284-PDN.

Mulidzi, A.R., Clarke, C.E. & Myburgh, P.A. 2019. Re-sponse of Soil Chemical Properties to Irrigation with Win-ery Wastewater on a Well-drained Sandy Soil. South Afri-can Journal of Enology and Viticulture 40:29 http://dx.doi.org/10.21548/42-2-3403.

Orlando, P., Chellan, N., Louw, J., Tiano, L., Cirilli, I., Dlud-la, P., Joubert, E. & Muller, C.J.F. 2019. Aspalathin-rich green rooibos extract lowers LDL-cholesterol and oxida-tive status in high fat diet-induced diabetic vervet monkeys. Molecules 24:1713.

Patel, O., Muller, C.J.F., Joubert, E., Rosenkranz, B., Tay-lor, M.J.C., Louw, J. & Awortwe, C. 2019. Pharmacokinetic interaction of green rooibos extract with atorvastatin and metformin in rats. Frontiers in Pharmacology 10:1243.

Ramoneda, J., Le Roux, J., Frossard, E., Bester, C., Oet-tlé, N., Frey, B., & Gamper, H.A. 2019. Insights from in-vasion ecology: Can consideration of eco-evolutionary ex-perience promote benefits from rootmutualisms in plantproduction? AoB PLANTS 11:1-9.

Sishi, M., Muller, M., De Beer, D., Van der Rijst, M. & Jou-bert, E. 2019. Rooibos agro-processing waste as herbal tea products: optimisation of soluble solids axtraction from

dustandapplicationtoimprovesensoryprofile,colourandflavonoidcontentofsteminfusions.Food and Agriculture 99: 3653-3661.

Smit, L. & Vermeulen, A.K. 2019. Fungal Stem Cankers of Deciduous Fruit Trees over 23 Years. South African Fruit Journal 18:62-63.

Stander, M.A., Joubert, E. & De Beer, D. 2019. Revisiting thecaffeine-freestatusof rooibosandhoneybushherbalteasusingspecificMRMandhighresolutionLC-MCmeth-ods. Journal of Food Composition and Analysis 76:39-43.

Subbotin, S.A., Franco, J., Knoetze, R., Roubtsova, T.V., Bostock, R.M. & Del Prado Vera, I.C. 2019. DNA barcod-ing, phylogeny and phylogeography of the cyst nematode species from the genus Globodera (Tylenchida: Heterode-ridae). Nematology http:/doi 10.1163/15685411-00003305.

Walters, N.A., De Beer, D., De Villiers, A., Walczak, B. & Joubert, E. 2019. Genotypic variation in phenolic com-position of Cyclopia pubescens (honeybush tea) seedling plants. Journal of Food Composition and Analysis 78: 129-137. THESES AND DISSERTATIONS

Masters Dzedze, M. 2019. Fermentation rate, yeast protein and sensory profiles of wines from fungicide treated Cheninblanc grapes. Master of Technology (Food Science and Technology), Cape Peninsula University of Technology.

Kufa, A. 2019. A Microbiological Solution to Visible Wine Defects: Pinking and Protein Haze Formation. Master of Science (Wine Biotechnology), University of Stellenbosch.

Mojeremane, K. 2019. Cross Pathogenicity of selected Botryosphaeriaceae species on various fruit trees. Master of Science (Plant Pathology), Polythenic University of Va-lencia.

Doctoral Human, C. 2019. The physiochemical properties and sta-bility of aspalathin in micro- and nanoencapsulated green rooibos extract formulations. Doctor of Philosophy (Food Science), Stellenbosch University.

Koen, J. 2019. Reproductive anatomy, sexual compatibil-ity, dimorphic seed production and embryo rescue of Cy-clopia spp. Doctor of Philosophy (Horticulture), Tshwane University of Technology.

Mbulawa, Z.T.L. 2020. Mapping of dwarf growth habit traits in apple (Malus pumila Mill.) using molecular markers and transcriptomics approaches. Doctor of Philosophy (Genet-ics), Stellenbosch University.

Nyembe, N.P.P. 2020. Proteomic and functional character-izationofbiofilmformationinXylophilus ampelinus. Doctor of Philosophy (Biotechnology), University of the Western Cape.


CHAPTERS IN BOOKS

Opara, U.L., Caleb, O.J. & Belay, Z.A. 2019. Modifiedatmosphere packaging for food preservation. Chapter 7 in: Charis M. Galanakis (ed.) Food Quality and Shelf Life, Austria, pp. 235-259.


Hunter, J.J. & Volschenk, C.G. 2019. Physiological and growth reaction of Shiraz/101-14 Mgt to row orientation and soil water status. Proceedings 21st International Meet-ing of Viticulture GiESCO, Thessaloniki, Greece, 23-28 June 2019, pp. 918-919.

Hunter, J.J., Booyse, M. & Volschenk, C.G. 2019. Re-sponse of Shiraz/101-14 Mgt to in-row vine spacing. Pro-ceedings 21st GiESCO International Meeting (Group of international Experts for Cooperation on Vitivinicultural Systems), Thessaloniki, Greece, 23-28 June 2019, pp. 622-629.

Theron, H., Volschenk, C.G. & Hunter, J.J. 2019. Impact of changing climatic factors on physiological and vegeta-tive growth parameters of young grafted grapevines. Pro-ceedings 21st International Meeting of Viticulture GiESCO, Thessaloniki, Greece, 23-28 June 2019, pp. 683-684.


ARC-PLANT HEALTH AND PROTECTION

The ARC-Plant Health and Protection (ARC-PHP) Campus, located at Roodeplaat northeast of Pretoria and at several strategic areas around South Africa, has the mandate to pro-vide extensive and specialist knowledge of the organisms that threaten agricultural crops and plants in natural environ-ments, to protect arable land, water resources, natural biodi-versity, and food security.

Research is focused on promoting economic and environ-mentally acceptable management strategies for pests, plant diseases, weeds and invasive plants. The Campus has ex-pertise of, and manages pollution of the environment, which includes monitoring pesticide residue levels in agricultural ar-eas to mitigate agricultural and health risks.

The following strategic assets are maintained on behalf of the state:

• The National Collections of Arachnids, Fungi, Insects and Nematodes;

• The South African Rhizobium Culture Collection;• The Plant Pathogenic and Plant Protecting Bacteria

Culture Collection; • Plant Virus and Antisera Collection; and• Biological control quarantine facility.


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Focusing on soil health to improve crop production

ResearchconductedbytheARCcontributedsignificantlytowards the drive to improve soil health in South Africa. An integrated approach is followed, that involves the use of nematodes as indicators for soil health and the screening ofefficientRhizobiumstrainsfornitrogenfixationtoreducethenegative impactonsoilhealthasa resultofartificialinputs of fertilizer, as well as the use of seed treatments to manage soil borne pathogens of seedlings of important fieldcrops.

Our expert knowledge of nematode taxonomy and capac-ity to identify both plant feeding and free-living nematodes demonstrated that poor performance of pecan nut trees and potatoes could be linked to poor soil health. In addition, the Rhizobium screening trials led to the successful devel-opment and commercialisation of a Rhizobium inoculant for rooibos (Aspalathus linearis). Screening of strains con-tained in the collections to improve nodulation and nitrogen fixationoftheunderutilizedlegumesthatareimportantinnutrition security, such as Bambara groundnut and Pigeon pea, is still continuing. Screening of the Rhizobium strains in the collections for nodulation ability under various abiotic stress conditions such as salinity, drought, acidic soil and metaltoxicityhasidentifiedstrainscapableofoutperform-ing industry standards.

Root health, as an important indicator of soil health, was improved by the identification and targeting of importantpathogens in soilborne disease complexes responsible for poorestablishmentofsoybeanandsunflower inrotation-al agricultural systems. Various seed treatments and crop rotationalsystemswereevaluatedforefficacyinmanage-mentofdiseasescomplexesinsoilsduringdifferentsea-sonsanddifferentlocations.Theevaluation,managementand improvement of soil health is critical to ensure sustain-able and improved crop production.

Weeds biocontrol continues relentless battle against invasive alien plants

The weeds research group continued the long and suc-cessful history of the quarantine evaluation and release of effective and target-specific biological control agentsagainst some of South Africa’s most serious invasive alien plants (IAPs).

A total of seven new insect agentswere granted officialpermission for release, namely two species of leaf feed-ing beetles against the orange-red sunflower, Tithonia rotundifolia, a defoliating tortoise beetle against Mexican sunflower,Tithonia diversifolia, a leaf-feeding beetle and a leaf-miningflyagainstTecoma stans, a seed-feeding wee-vil against Cardiospermum grandiflorum and a leaf-feeding beetle against Tradescantia fluminensis.

Leaf-feeding beetle (Mada polluta) for control of Tecoma stans.

Leaf-miningfly(Pseudonapomyza sp)

for control of Tecoma stans.

The weeds group also released and successfully estab-lished one new pathogenic fungal agent, Uromycladium woodii, against an invasive Australian Acacia species, bringing the total number of established pathogenic fun-gi to eight species. During the reporting period, work was also focussed on monitoring the establishment and spread of biocontrol agents previously released against high-pro-file IAPs inorder toobtain long-termdataon the impactof these agents. The further spread and establishment of biocontrol agents against invasive Australian Acacia and Hakea species, as well as Campuloclinium, Chromolae-na, Dolichandra, Lantana and Parthenium were regularly monitored and data is now clearly showing that many of the released agents are starting to impact on the density and rate of spread of the target IAPs. With a view to speed up the implementation of biocontrol, the weeds group also invested more time and resources in the mass-rearing of biocontrol agents for distribution throughout the range of the target IAPs. Other agents that have already estab-lishedwellatcertainsiteswereharvestedinthefieldandthen re-distributed to other areas to speed up the rate of spread. Close collaborations with local universities work-ing on biocontrol research, as well as with the biocontrol officers from theDEFF:NaturalResourcesManagementProgramme on the biocontrol implementation strategies were maintained.


Various researchers were also commissioned by inter-national agencies to mass-rear biocontrol agents against Parthenium weed for release in other countries, for the training of international collaborators in biocontrol mass-rearing techniques and to provide hands-on training in the practical implementation of IAP management strat-egies against Lantana. In the quest to develop biocontrol products, one fungal inoculant (Stumpout) was registered with the Registrar of Agricultural Remedies (The Registrar, Act36).Aproductivetrackrecordofscientificpublicationsand presentations at local and international conferences, aswellasthepublicationofadefinitivenewbookontheInvasive Alien Plants in South Africa underscore the excel-lentperformanceofthisuniqueflagshipproject.

Mitigating agricultural risk of new and emerging pests and diseases

Correctidentificationofthecausalorganismisthefirststepin the battle against existing and new agricultural pests and diseases, and the basis for all other research on crop protection. As part of the diagnostic services rendered to government, commercial entities, farmers and the public, various reports of new pests in South Africa were pub-lishedoverlastfiveyears.TheseincludedtheAsianwoollyhackberry aphid (Shivaphis celti) infesting white stinkwood trees, a new longhorn beetle pest on sugar cane (Caco-sceles newmannii) , the Fall Armyworm (Spodoptera fru-giperda) from maize, a tortoise beetle(Aspidimorpha ango-lensis) newly observed damaging sweet potato, the tomato leaf miner (Tuta absoluta) and the macadamia felted coccid (Eriococcus ironsidei). Researchers from Plant Health and Protection collaborated with Italian entomology experts on theidentificationoftheTobaccoslugbeetle,Lema bilineata - a new invasive alien species for Europe. A number of lady beetle specieswerealso identified for investigators fromthe Centre for Invasion Biology, Stellenbosch and Harvard University, USA.

Tortoise beetle. Tortoise beetle larvae.

Taxonomic studies saw extensive revisions on afro-tropical bee genera, the description of two new pathogenic fungi in the genus Fusarium and Penicillium, and at least 36 new leafhopper species from various grasses. On invitation from the Secretariat of the International Plant Protection Convention (IPPC), ARC took the lead in drafting a diag-nostic protocol for the nematode Xiphinema americanum sensu lato. Contributions also included drafting the firstSouth African National Research Strategy on Fungi.

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proTecTIng crops From nemaTodes, The unseen desTroyer

Plant-parasitic nematodes can cause serious or even total yield losses in agricultural crops, and some species also transmit plant diseases. They are invisible to the naked eyeandcanonlybe identifiedmicroscopically byexpertnematologists. The ARC Nematology Unit provides critical diagnostic services and conducts biosystematic research on nematodes in southern Africa and worldwide, including researchonbeneficialnematodesinconservationagricul-ture and ecologically threatened areas in South Africa. The unit works in close association with the Directorate Inspec-tionServices,DALRRDtoprovideroutineidentificationofquarantine nematode pests in imported plant material and agricultural products. In 2019 the nematology unit identi-fiedanematodefoundduringroutineinspectionofimport-ed garlic as the quarantine nematode, Ditylenchus dipsaci, using morphological as well as highly sophisticated molec-ular methods. This prompt action by DALRRD and the ARC nematologists averted the establishment of this stem and bulb nematode, which attacks more than 1 200 species of wild and cultivated plants, on garlic in South Africa.

The head of a stubby root nematode (enlarged 1300 times),

with arrow indicating the needle-like mouthparts that it inserts into the plant root to feed.


Three important plant parasites have recently been report-edfromsouthernAfricaforthefirsttime.Asheathnema-tode, Hemicycliophora poranga, was reported in tomatoes in Limpopo province. This nematode induces the formation ofsmallgallsontomatoroots,aswellassignificantlyshort-er shoots and root weights, thereby impacting plant growth and yield negatively. The stubby root nematode Paratricho-dorus namibiensis, was found associated with wheat in the Rundu area of Namibia. Stubby root nematodes are important plant parasites that can also act as vectors of tobra viruses, including the Tobacco Rattle Virus (TRV). The plant-parasitic dagger nematode, Xiphinema oxycau-datum, was recorded in the rhizosphere of honeybush tea in the Western Cape Province.

new hope For Banana IndusTry under ThreaT

Fusarium wilt of banana (also known as Panama disease) is caused by a soil-borne fungus named Fusarium oxys-porum f. sp. cubense (Foc). The fungus enters the root system and blocks the xylem vessels, which disrupts the flowofwaterandnutrients.Bananaplantssuccumbtothedeadly fungus soon after infection. There are no chemical management options available and the disease can only be managed by replacing susceptible cultivars with resis-tant ones. The Du Roi Laboratory group, based in Limpo-po province, is South Africa’s leading banana tissue cul-ture facilityandsupplierofcertified,disease-freebananaplants to growers in Africa. Du Roi Laboratory has recent-lyobtainedtherightsforthefieldevaluationandplannedcommercialisation of the Formosana variety, a Panama disease (Foc TR4) resistant variety, from the owners of the variety, the Taiwan Banana Research Institute (TBRI). The In Vitro Genebank and the plant disease diagnostics laboratories at the ARC Roodeplaat campuses are regis-tered with DALRRD to process and screen all imported plant propagating material for the presence of quarantine organisms before they are released to the importer. Du Roi Laboratory recently imported mother stock of Formosana with permission from DALRRD in collaboration with the ARC. The in vitro tissue culture material was imported into the In Vitro Genebank, after which samples were submitted for testing to the virology, bacteriology and mycology units. This collaboration between industry, government and the ARCoffersaglimmerofhopetocommercialandemerg-ing banana growers on the African continent in their battle against this important pathogen of banana.

Tissue culturing of Panama disease resistant banana plantlets.


new Book on InvasIve alIen planTs In souTh aFrIca

Renowned Botanist and author, Lesley Henderson of ARC- PHP, has launched her latest book, “Invasive Alien Plants in South Africa”, that follows on from her previous publica-tion “Alien weeds, and invasive plants”. The new full colour, glossy 384-page field guide provides a species accountand description of over 400 of the most prevalent invasive alien plants listed under the NEMBA Act. The colour coding of major plant groups as well as high quality photographs anddescriptive symbols,make for easy identification forthe amateur botanist and general public. The publication of this book was funded by the Department of Environment, Forestry and Fisheries (DEFF): Natural Resource Manage-ment Programme and will become an indispensable guide to the invasive alien plants of South Africa for generations to come.

New book on Invasive Alien Plants in South Africa.



Fao recognIses arc as a TraInIng cenTre oF excellence

The Food and Agriculture Organisation of the United Na-tions (FAO) has recognised the ARC as a centre of excel-lence for training on Fall army worm (FAW, Spodoptera fru-giperda), the tomato leaf miner (Tuta absoluta) and Maize Lethal Necrosis Disease (MLND). These transboundary plantpestsanddiseaseaffectcountrieswithintheSADCregion and pose a threat to regional food security and trade. As a centre of excellence, the ARC co-hosted two training courses of a week each with the FAO. The courses were attended by representatives of the National Plant Protec-tion Organisations from SADC countries. Funding for these training events was provided as part of an overarching project entitled ‘Support towards operationalization of the SADC Regional Agricultural Policy project’, which receives funding of €6.2million (about US$7.05million) from theEuropean Union over 2.6 years (01 December 2018 – 31 August 2021). The focus of these workshops was training in the identification,managementstrategiesand informa-tion dissemination of FAW, T. absoluta and MLND. Through these trainingcourses, skills suchas identification,diag-nostic methods and symptom recognition were transferred and the country representatives then provided input for strategies for the regional and national management of the pests and disease. The highlight of the training were the ‘hands on’ practical activities that supported lectures and included identification, calibrationof pesticideapplicationequipment, pesticide application techniques and lab work to learn diagnostic methods for MLND. During the event, ARC shared its current research on these pests and dis-ease, funded through the DALRRD. These projects include scouting for overwintering hotspots for FAW, surveying for MLNDwithin SA and investigating the effect of FAW onsmallholder farmers.

Delegates learning to calibrate knapsack sprayers during the hands-on pesticide application session for the

FAW and Tuta absoluta workshop.

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KNOWLEDGE DISSEMINATION______________________________


JOURNAL ARTICLES

Aamidor, S.E., Allsopp, M.H., Reid, R.J., Beekman, M., Buchman, G., Wossler, T.C. & Oldroyd, B.P. 2020. What mechanisticfactorsaffectthelytokousparthenogenesis inApis mellifera capensis queens? Apidologie DOI: 10.1007/s13592-019-00719-3.

Beukes,C.W.,Boshoff,F.,Phalane, F.L., Hassen, A.I., le Roux, M.M., Stepkowski, T., Venter, S.N. & Steenkamp, E.T. 2019. Both alpha- and beta-rhizobia nodulate the tree legume Vachellia karroo in South Africa. Frontiers in Micro-biology 10:1-10 https://doi:10.3389/fmicb.2019.01195.

Beukes, C.W., Steenkamp, E.T., van Zyl, E., Avontuur, J., Chan, W.Y., Hassen, A.I., Palme, M., Mthombeni, L.S., Phalane, F.L., Sereme, T.K. & Venter, S.N. 2019. Parabur-kholderia strydomiana sp. nov. and Paraburkholderia steynii sp. nov. - rhizobial symbionts of the fynbos legume Hypocalyptus sophoroides. Antonie van Leeuwenhoek https://doi.org/10.1007/s10482-019-01269-5.

Bopape, F.L., Hassen, A.I., Swanevelder, Z.H. & Gwata, E. 2020. Draft Genome Sequence of Rhizobium tropici SARCC-755, A Free Living Rhizobium that Nodulated and Promoted Growth in Pigeonpea (Cajanus cajan (L.) Mill-sp.) Microbiology Resource Announcements 9:e01122-19 https://doi.org/10.1128/MRA.01122-19.

Carlson, R., Tugizimana, F., Steenkamp, P.A., Dubery, A.I., Hassen, A.I. & Labuschagne, N. 2020. Rhizobacte-rial induced systemic tolerance against drought stress in sorghum bicolor (L.) Moench. Microbiological Research 232:1-14https://doi.org/10.1016/j.micres.

Chetverikov, P.E., Bolton, S.J., Burlakovskiy, M.S., Crae-mer, C., Efimov, P.G., Klimov, P., Neser, S., Paponova,S.S., Romanovich, A., Sukhareva, S.I. & Amrine, J. 2019. Supplementary descriptions and DNA barcodes of two rarely encountered Trisetacus species (Eriophyoidea, Phy-toptidae) associated with Tertiary relict conifers from the Mediterranean region. Systematic and Applied Acarology 24(9):1631-1652 DOI: 10.11158/saa.24.9.5.

Chetverikov, P.E., Craemer, C.,Cvrković,T.,Efimov,P.G.,Klimov,P.B.,Petanović,R.U.&Sukhareva,S.I.2019.Firstpentasetacid mite from Australasian Araucariaceae: mor-phological description and molecular phylogenetic posi-tion of Pentasetacus novozelandicus n. sp. (Eriophyoidea, Pentasetacidae) and remarks on anal lobes in eriophyoid mites. Systematic & Applied Acarology 24(7):1284-1309. doi:10.11158/saa.24.7.12.


Cowie, B., Byrne, M., Witkowski, E., Strathie, L., Goodall, J. & Venter, N. 2020 Parthenium avoids drought: under-standing the morphological and physiological responses of the invasive herb Parthenium hysterophorus to progres-sive water stress. Environmental and Experimental Botany 171: 103945 DOI: 10.1016/j.envexpbot.

Cowie, B., Strathie, L., Goodall, J., Venter, N., Witkowski, E.T.F. & Byrne, M. 2019. Does host plant quality constrain the performance of the Parthenium beetle Zygogramma bicolorata? Biological Control https://doi.org/10.1016/j.bio-control.

Crous, P.W., Wingfield, M.J., Lombard, L., Roets, F.,Swart, W.J., Alvarado, P., Carnegie, A.J., Moreno, G., Lu-angsa-Ard, J., Thangavel, R., Alexandrova, A.V., Baseia, I.G., Bellanger, J.M., Bessette, A.E., Bessette, A.R., De-lapeña-Lastra, S., García, D., Gené, J., Pham, T.H.G., Heykoop, M., Malysheva, E., Malysheva, V., Martín, M.P., Morozova, O.V., Noisripoom, W., Overton, B.E., Rea, A.E., Sewall, B.J., Smith, M.E., Smyth, C.W., Tasanathai, K., Vis-agie, C.M.,Adamčík,S.,Alves,A.,Andrade,J.P.,Aninat,M.J.,Araújo,R.V.B.,Bordallo,J.J.,Boufleur,T.,Baroncelli,R.,Barreto,R.W.,Bolin,J.,Cabero,J.,Caboň,M.,Cafà,G.,Caffot,M.L.H.,Cai,L.,Carlavilla,J.R.,Chávez,R.,De-castro, R.R.L., Delgat, L., Deschuyteneer, D., Dios, M.M., Domínguez, L.S., Evans, H.C., Eyssartier, G., Ferreira, B.W., Figueiredo, C.N., Liu, F., Fournier, J., Galli-Terasa-wa, L.V., Gil-Durán, C., Glienke, C., Gonçalves, M.F.M., Gryta, H., Guarro, J., Himaman, W., Hywel-Jones, N., Itur-rieta-González, I., Ivanushkina, N.E., Jargeat, P., Khalid, A.N.,Khan,J.,Kiran,M.,Kiss,L.,Kochkina,G.A.,Kolařík,M., Kubátová, A., Lodge, D.J., Loizides, M., Luque, D., Manjón, J.L., Marbach, P.A.S., Massolajr, N.S., Mata, M., Miller, A.N., Mongkolsamrit, S., Moreau, P.-A., Morte, A., Mujic, A., Navarro-Ródenas, A., Németh, M.Z., Nóbrega, T.F., Nováková, A., Olariaga, I., Ozerskaya, S.M., Palma, M.A., Petters-Vandresen, D.A.L., Piontelli, E., Popov, E.S., Rodríguez, A., Requejo, Ó., Rodrigues, A.C.M., Rong, I.H., Roux, J., Seifert, K.A., Silva, B.D.B., Sklenář, F., Smith,J.A., Sousa, J.O., Souza, H.G., Desouza, J.T., Švec, K., Tanchaud, P., Tanney, J.B., Terasawa, F., Thanakitpipatta-na,D.,Torres-Garcia,D.,Vaca,I.,Vaghefi,N.,Vaniperen,A.L., Vasilenko, O.V., Verbeken, A., Yilmaz, N., Zamora, J.C.,Zapata,M.,Jurjevi,Ž.&Groenewald,J.Z.2019.Fun-gal Planet description sheets. Persoonia 43:223-425.

Daniel, G.M., Sole, C.L., Davis, A.L.V., Strümpher, W.P. & Scholtz, C.H. 2019. Systematics of the dung beetle tribe Sisyphini Mulsant (Scarabaeidae: Scarabaeinae) inferred from a molecular phylogeny and biogeography of south-ern African species. Systematic Entomology DOI: 10.1111/syen.12380.

Daramola, F.Y., Knoetze, R., Swart, A. & Malan, A.P. 2019. First report and molecular characterization of the dagger nematode, Xiphinema oxycaudatum (Nematoda, Dorylaim-idae) from South Africa. Zookeys 849: 1-17 DOI: 10.3897/zookeys.892.35281.

Den Breeyen, A., Rochefort, J., Russouw, A., Meitz-Hop-kins, J.C. & Lennox, C.L. 2020. Preharvest detection and postharvest incidence of Phlyctema vagabunda on ‘Cripps Pink’ apples in South Africa. Plant Disease 104: 841-846.

Dube, Z.P., Visser, D. & Grobbelaar, E. 2019. Aspidi-morpha (Megaspidomorpha) angolensis Weise (Coleop-tera: Chrysomelidae: Cassidinae): a potential new pest of sweet potato (Ipomoea batatas) in South Africa. Journal of Plant Diseases and Protection DOI: 10.1007/s41348-019-00284-y.

Foord, S., Dippenaar-Schoeman, A.S., Haddad, C.R., Schoeman, C., Hahn, N. & Lyle, R. 2019. Spider checklist for the Blouberg, in the Vhembe Biosphere Reserve, South Africa. Bothalia 49(1):a2455 https://doi.org/10.4102/abc. v49i1.2455.

Giliomee, J.H. & Millar, I.M. 2019. An assessment of the Sey-chelles Scale Icerya seychellarum (Westwood) as a poten-tial insect of economic importance in South Africa. African Entomology 27(1): 258-260 DOI: 10.4001/003.027.0258.

Girgan, C., Claassens, S. & Fourie, H. 2020. Nematode assemblages and soil microbial communities in soils as-sociated with glyphosate- resistant soybean. South African Journal of Plant and Soil DOI: 10.1080/02571862.

Girgan, C., Marais, M., Fourie, H., Tiedt, L., & Swart, A. 2019. Description of two new species, Aphanolaimus strilli-ae n. sp. (Nematoda: Aphanolaimidae) and Makatinus afri-canus n. sp. (Nematoda: Aporcelaimidae), and SEM obser-vations on three known species from freshwater sources in the Telperion Nature Reserve (Mpumalanga, South Africa). Zootaxa 4651(2):201-234.

Goodall, J. & Braack, M. 2019. Screening herbicides for the control of the wetland invader, Sambucus nigra L., in South Africa. African Journal of Aquatic Science DOI: 10.2989/16085914.2019.1628700.

Hassen, A.I., Lamprecht, S.C. & Bopape, F.L. 2020. Emergenceofβ-rhizobiaasnewrootnodulatingbacteriain legumes and status of the legume-rhizobium host speci-ficitydogma.World J Microbiotech Biotech 36:40.

Hassen, A.I., Swanevelder, Z.H. & Bopape, F.L. 2020. Draft Genome Sequence of Mesorhizobium sp. Strain SARCC-RB16n,aneffectivenodulatingandnitrogenfixingsymbiont of rooibos (Aspalathus linearis Burm.f.) in South Africa. Microbiology Resource Announcements 9:01187-19 https://doi.org/10.1128/MRA.01187-19.

Hirsch, H., Allsopp, M.H., Canavan, S., Cheek, M., Geerts, S., Geldenhuys, C.J., Harding, G., Hurley, B.P., Jones, W., Keet, J.H., Klein, H., Ruwanza, S., van Wilgen, B.W.,Wingfield,M.J.&Richardson,D.M.2019.Eucalyp-tus camaldulensis in South Africa - past, present, future. Transactions of the Royal Society of South Africa DOI: 10.1080/0035919X.2019.1669732.

Katembo, N., Witkowski, D.O., Simelane, A.J., Urban, M. & Byrne, J. 2020. Impact of biocontrol agents on Lanta-na camara in an inland area of South Africa. BioControl 65:143-154 https://doi.org/10.1007/s10526-019-09991.


Kawakami, T., Wallberg, A., Olsson, A., Wintermantel, D., de MiRanda, J., Allsopp, M., Rundlöf, M. & Webster, M. 2019. Substantial heritable variation in recombination rate on multiple scales in honeybees and bumblebees. Genet-ics 212:1101-1119.

Khoza, T.T. & Lyle, R. 2019. Four new species of the sac spider genus Planochelas Lyle & Haddad, 2009 (Araneae, Trachelidae) from central and southern Africa. African In-vertebrates 60(2):147-164 https://doi.org/10.3897.

Kinge, T.R., Goldman, G., Jacobs, A., Nderitu, G. & Gryzenhout, M. 2019.A first checklist of macrofungi forSouth Africa. MycoKeys https://doi.org/10.3897/[email protected].

Knoetze, R., Van den Berg, E., Girgan, C. & Van der Walt, L. 2019. First report of the root lesion nematode, Pratylen-chus hippeastri, on apple in South Africa. Journal of Plant Diseases and Protection https://doi.org/10.1007/s41348-019-00259-z.

Kolesik, P. & Wood, A.R. 2019. Redescription of Mitodiplo-sis graminis (Diptera: Cecidomyiidae), a gall midge inhibit-ingthefloweringofpypgrassEhrharta villosa (Poaceae) in South Africa. Zootaxa 4614:173-179.

Lesuthu, P., Mostert, L., Spies, C.F.J., Moyo, P., Regni-er, T. & Halleen, F. 2019. Diaporthe nebulae sp. nov. and first reportofD. cynaroidis, D. novem, and D. serafiniae on grapevines in South Africa. Plant Disease 103: 808-817 https://doi.org/10.1094/PDIS-03-18-0433-RE.

Martin, S.J., Hawkins, G.P., Brettell, L.E., Reece. N., Cor-reia-Oliveira, M.E. & Allsopp, M.H. 2019. Varroa destruc-tor reproduction and cell re-capping in mite-resistant Apis mellifera populations. Apidologie DOI: 10.1007/s13592-019-00721-9.

Mbatyoti, A., Daneel, M., Swart, A., Marais, M., De Waele, D. & Fourie, H. 2020. Plant-parasitic nematode assemblag-es associated with glyphosate tolerant and conventional soybean cultivars in South Africa. African Zoology 55:1-18.

Mbatyoti, A., Daneel, M.S., Swart, A., Marais, M., De Waele,D.&Fourie,H.2019.Casestudyofeffectofgly-phosate application on plant-parasitic nematodes associ-ated with a soybean-maize rotation system in South Africa. South African Journal of Plant and Soil 1:4 https://doi.org/10.1080/02571862.2019.1618505. ISSN 0257-1862.

Musedeli, J.N., Simelane, D.O., Hill, M.H. & Marais, M. 2019. Additive interaction between a rootknot nematode, Meloidogyne javanica,andaroot-feedingfleabeetleLongi-tarsus bethae on their host Lantana camara. Pest Manage-ment Science https://doi.org/10.1002/ps.5493.

Ndolo, D. Njuguna, E., Adetunji, C.O., Harbor, C., Rowe, A., Den Breeyen, A., Sangeetha, J., Singh, G., Szewczyk, B., Anjorin, T.S., Thangadurai, D. & Hospet, R. 2019. Re-search and Development of Biopesticides: Challenges and Prospects. Outlooks on Pest Management 30(6):267-276.

Rashidifard, M., Fourie, H., Daneel, M.S. & Marais, M. 2019.Morphological andmorphometrical identificationofMeloidogyne populations from various crop production ar-eas in South Africa with emphasis on M. enterolobii. Zoot-axa 4658(2):251-274. https://doi.org/10.11646/zootaxa.

Rashidifard, M., Marais, M., Daneel, M.S., Mienie, C.M.S. & Fourie, H. 2019. Molecular characterization of Meloido-gyne enterolobii and other Meloidogyne sp. from South Af-rica. Tropical Plant Pathology 1:11 https://doi.org/10.1007/s40858-019-00281-04.

Silvestri, L., Sosa, A., Mc-Kay, F., Vitorino, M.D., Hill, M., Zachariades, C., Hight, S., Weyl, P., Smith, D., Djed-dour, D. & Mason, P.G. 2019. Implementation of access andbenefit-sharingmeasureshasconsequencesforclas-sical biological control of weeds. BioControl https://doi.org/10.1007/s10526-019-09988-4.

Stiller, M. 2019. Validation of Discolopeus Stiller, 2019 and correctionstofigures.Zootaxa 4585(1):189-191.

Strümpher, W.P. & Scholtz, C.H. 2019. A new Phoberus MacLeay species (Coleoptera: Scarabaeoidea: Trogidae) from the Maloti-Drakensberg Mountains of southern Africa and the Phoberus caffer species group reviewed. Zootaxa 4674(5):551–563 DOI: 10.11646/zootaxa.4674.5.4.

Sutton, G. F., Canavan, K. M. Day, D., den Breeyen, J.A., Goolsby, A., Cristofaro, M., McConnachie, A. & Pater-son, I. D. 2019. Grasses as suitable targets for classical weed biological control. BioControl https://doi.org/10.1007/s10526-019-09968-8.

Swart, A., Fourie, H., Tiedt, L.R. & Rashidifard, M. 2020. Description of Calcaridorylaimus heynsi n.sp. (Nematoda: Dorylaimidae) from Potchefstroom, South Africa. Nematol-ogy DOI:10.1163/15685411-00003346.

Van den Hoogen, J., Geisen, S., Routh, D, Ferris, H, Traun-spurger, W., Wardle, D.A., De Goede, R.G.M., adams, B.J., Ahmad, W., Andriuzzi, W.S., Bardgett, R.D., Bonkowski., M., Campos-Herreira, R., Cares, J.E., Caruso, T., De Brito Caixeta, L., Chen, X., Costa, S.R., Creamer, R., Da Cunha castro,J.M.,Dam,M.,Djigal,D.,Escuer,M.,Griffiths,B.S.,Gutierrez, C., Hohberg, K., Kalinkina, D., Kardol, P., Ker-gunten, P., Korthals, G., Krashevska, V., Kudrin, A.A., Li, Q., Liang, W., Magilton, M., Marais, M., Martin, J.A.R., matveeva, E., Mayad, E.H., Mulder, C., Mullin, P., Neilson, R., Nguyen, T.A.D., Nielsen, U.N., Okada, H., Rius, J.E.P., Pan, K., Peneva, V., Pellissier, L., Silva, J.C.P., Pitteloud, C., Powers, T.O., Powers, K., Quist, C.W., Rasmann, S., Sánchez Moreno, S., Scheu, S., Setälä, H., Suschuk, A., Tiunov, A.V., Trap, J., Van der Putten, W., Vestergård, M., Villenava, C., Wayenberge, L., Wall, D.H., Wilschut, R., Wright, D.G., Yang I. & Crowther, T.W. 2019. Soil nem-atode abundance and functional group composition at a global scale. Nature 1:15 https://doi.org/10.1038/s41586-019-1418-6.



Masters Mashau, K. 2019. Symbiotic nitrogen fixation efficiencyof native rhizobia on selected legumes important in South Africa. Master of Science (Microbiology), University of Pre-toria.

Nqayi, S.B. 2019. Climatic suitability of Dichrorampha odorata Brown and Zachariades (Lepidoptera: Tortricidae), a shoot-boring moth for the biological control of Chromo-laena odorata (L.) R.M. King and H. Robinson (Asterace-ae) in South Africa. Master of Science (Pathology), Rhodes University.

Doctoral Carlson, R. 2019. Rhizobacteria induced priming against biotic and abiotic stress in the sorghum crown rot patho-system. Doctor of Philosophy (Plant Pathology), University of Pretoria.

Dube, N.2019.Understandingthefitness,preferenceandperformance of specialist herbivores of the southern Af-rican biotype of Chromolaena odorata (Asteraceae), and impacts on phytochemistry and growth rate of the plant. Doctor of Philosophy (Entomology), University of KwaZulu- Natal.

Girgan, C. 2019. Nematode fauna in the Telperion Nature Reserve. Doctor of Philosophy (Environmental Sciences), North-West University.

Shutt, V.M. 2019. Bacterial pathogens of tomato in South Africa:identification,populationdiversityandcultivarsus-ceptibility. Doctor of Philosophy (Plant Pathology), Univer-sity of Pretoria.

CHAPTERS IN BOOKS

Marin-Felix,Y.,Hernández-Restrepo,M.,Wingfield,M.J.,Akulov, A., Carnegie, A.J., Cheewangkoon, R., Gramaje, D., Groenewald, J.Z., Guarnaccia, V., Halleen, F., Lom-bard, L., Luangsa-ard, J., Marincowitz, S., Moslemi, A., Mostert, L., Quaedvlieg, W., Schumacher, R.K., Spies, C.F.J., Thangavel, R., Taylor, P.W.J., Wilson, A.M., Wing-field, B.D.,Wood, A.R. & Crous, P.W. 2019. Genera of Phytopathogenic Fungi: GOPHY 2. Studies in Mycology 92:47-113.

MartinP.Hill,VincentC.Moran,JohnH.Hoffmann,Ste-fan Neser, Helmuth G. Zimmermann, David O. Simelane, Hildegard Klein , Costas Zachariades, Alan R. Wood, Marcus J. Byrne, Iain D. Paterson, Grant D. Martin, and Julie A. Coetzee. 2020. Chapter 19: More than a Century of Biological Control Against Invasive Alien Plants in South Africa: A Synoptic View of What Has Been Accomplished. In: Van Wilgen, B., Measey, J., Richardson, D.M., Wilson, J.R., Zengeya, T.A. (Eds.) Biological Invasions in South Af-rica. Invading Nature - Springer Series in Invasion Ecology 14.

Van Niekerk, A., Auerbach, R. & Lamprecht, S. 2019. Chapter 20. Biological and chemical soil fumigation and pest, and disease management comparisons in the West-ern Cape. In: Organic food systems: meeting the needs ofSouthern Africa. Organic Food Systems Meeting the Needs of Southern Africa. Raymond Auerbach (Ed.) CABI. pp. 264-283.


ARC-TROPICAL AND SUBTROPICAL CROPS

The ARC-Tropical and Subtropical Crops (ARC-TSC) Campus provides sustainable and appropriate technol-ogies across the value chain for citrus and subtropical crops, in order to enhance food and nutrition security, global competitiveness and wealth creation. The Cam-pus is stationed in Mbombela, Mpumalanga, in the heart of the main cultivation region. The Campus also has several other research stations in other provinces, cov-ering a wide range of agri-ecozones.

The mandate crops of ARC-TSC include the following:

• Citrus, avocado, mango, litchi, banana, macada-mia nut, pineapple, papaya, granadilla, pecan nut, cashewnut,coffeeandginger;

• Medicinal plants, herbs and essential oil crops;• Indigenous fruit; and• Exotics such as carambola, surinam cherry, white-

sapote, annona and jaboticaba.

The ARC-TSC Campus research focus areas include:

• Plant Breeding & Biotechnology;• Pest and Disease Management;• Horticultural Practices;• Postharvest and Agro-processing;• Smallholder development; and• Diagnostic Services.


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The ARC-TSC Campus focuses on a multi-disciplinary crosscutting approach that seeks comprehensive sustain-able solutions for the South African grower. Our research highlights focus on strategies for containing pest and dis-ease outbreaks, production systems that mitigate climate changeeffects,agro-processingandvalue-add initiativesand the development of better cultivars which ensure sus-tainability and competiveness of our stakeholders. Coupled with these Programmes has been the implementation of an extremely successful model for smallholder development. Horticulture is recognised as a key driver for economic development, poverty reduction, and enhanced food and nutritional security for rural communities. The ARC high value crop Programme is a long-term initiative that aims to develop smallholder farming as an economic catalyst for rural areas in the Eastern Cape. Since its inception, it has delivered significant economic and social impact to ruralcommunities in the OR Tambo, Amathole and Alfred Nzo Districts of the Eastern Cape. The focus of the Programme is the use of integrated farming principles that ensure opti-mum and sustainable use of soil, improved crop yields and lowered risk.

As part of the Integrated Village Renewal Programme farmers received technical and business skills training

in several villages in the Eastern Cape.

At the same time, the Programme has provided innu-merable opportunities for capacity development in terms of not only the myriad of technical aspects of subtropical crop production and value-add initiatives, but also various

business-related principles. Over 165 000 fruit and nut trees (bananas, mangoes and citrus, avocado, macada-mia,guava, litchi andcoffee)andvegetableshavebeenplanted and over 24 sites have been planted to essential oil herbs (lavender, origanum, thyme, marjoram, rosemary, rosegeranium,melissaand lemongrass),benefittingal-most 5500 households in 50 villages. The strategy has assisted rural villages and smallholder farmers to make the transition from subsistence farming and ensuring household nutritional security to commercial production.

Rose geranium planted for essential oil

production in the Eastern Cape.

There are currently 889 lead farmers participating in the Programme and these farmers supply not only fresh pro-duce to local supermarkets but also value-added products such as dried fruits, jams and marmalades, soaps and scented candles to local guesthouses. The challenge now liesinsupplyingsufficienthighqualityproduct inordertoaddress market demand. The Programme has really en-couraged economic development in the region and illus-trates the contribution of the agricultural sector towards addressing poverty, inequality, unemployment and building an inclusive economy.

Training in jam production allowed community members to make value-added products which are sold on the market.


Any agricultural enterprise is constantly faced with pest and disease outbreaks. The Campus focusses on detec-tion, control and monitoring of economically significantpests and diseases as well as integrated pest manage-ment and biocontrol of pests and diseases which neg-atively impact on the subtropical fruit and nut industries. Crop losses are directly due to damage to the fruit mak-ing it unmarketable; but are also indirect as a result of quarantine restrictions and subsequent loss of market opportunities. Together with the DALRRD, tremendous progress over the last five years has prevented devas-tating losses tocropsby theOriental fruitfly,Bactrocera dorsalis,variousfruitflies(Ceratitis spp.), banana bunchy top virus (BBTV) and avocado sunblotch viroid (ASBVd).

Fruitfliesarealimitingfactorininternationaltradeoffresh

agricultural commodities and can lead to quarantine measures against the export of crops.

Avocado fruit showing positive ASBVd symptoms.

The ARC is also the country’s post-entry shoot tip grafting quarantine facility for citrus and ASBVd diagnostic facility. Thedevelopmentofspecificintegratedpestmanagementand biocontrol strategies has ensured that existing and emerging pests and diseases on avocado, guava, litchi, macadamia and mango are controlled right across the val-ue chain thus ensuring sustainability of these industries in South Africa. With increasing temperatures and decreasing

and shifting rainfall patterns, growers need to adapt their orchard management practices to ensure that crop yield and quality are maintained. As an example, rising winter temperaturespreventfloweringinlitchiandacombinationof water stress with growth regulator manipulation is now an indispensable orchard practice for litchi production. Since water is becoming more and more scarce due to re-duced rainfall and increased evapotranspiration, the avail-ability of water for agriculture is increasingly under pres-sure. It is therefore critical to ensure sustainability through cropwateruseefficiency.Researchonvariousphysiolog-ical parameters on several of our mandate crops has en-abled researchers to make recommendations to growers to ensure that their orchards are not water-stressed result-ing in high yields of good quality fruit that can be sold on exportmarkets.Thisfindingalsoallowsgrowers to reactand adapt to climate change factors such as increased/decreased rainfall and temperatures. With the unpredict-able weather patterns brought about by climate change, growers are making enormous investments in, for exam-ple, shadenet structures to protect their crops from sun-burn and hailstorms.

Shade net structures protect the crop

from sunburn and hail damage.

Research has shown that although the microclimate is markedlydifferent fromunprotectedorchards,and there-forehasaneffectontreephysiologyandphenology,fruitquality is retained or even improved and in some instanc-es,evenallowsgrowerstocultivatesomefruitsindifferentagro-ecozones. Postharvest research on macadamia has resulted in the improvement of nut storage protocols and recommendations are made to growers and processors to ensure extended shelf life and quality. As a major supplier of macadamia to Europe, the USA and China, South Afri-canproducerscannotaffordtolosetheircompetitiveedge.Agro-processing provides opportunities for both local and export markets - and is a major contributor towards much-needed enterprise development, job creation and thus poverty alleviation. High-value processed products can significantly reduce both wastage and postharvestlosses when production volumes of highly perishable prod-ucts saturate market demand. The ARC has focused its research on novel value-added product development using conventional subtropical as well as indigenous fruits. Ex-tensive research towards the development of healthy, nu-tritious gluten-free starch-rich products made from unripe banana flour resulted in quality baked products (breadsand biscuits).


Proving of the banana-based bread dough before baking.

Similarly, the seeds of wild mango (Cordyla africana), an indigenous leguminous tree species, were found to contain a high percentage of cereal-like starch which could be used as a substitute for maize starch in food and pharmaceutical products. Indigenous fruits are well-adapted to local envi-ronmental conditions, but mostly under-utilised. Research on selected species such as Kei-apple (Dovyalis caffra), marula (Sclerocarya birrea) and African mangosteen (Gar-cinia livingstonei) show that they are well suited for prod-uct development. Kei-apple fruit, for example, are a rich source of amino acids with excellent antioxidant properties making them extremely suitable for agro-processing and the development of value-added jams, nectars and other products.

Keiapple fruit is a rich source of amino acids and has

excellent antioxidant properties.

One of the ARC mango cultivars, ‘Crimson Pride’, is ex-tremely high in vitaminsA andC, has good flavour andprolonged shelf life. This paved the way for value-adding, drying and processing of a variety of high-value subtropical products.

One of the ARC cultivars ‘Crimson Pride’

is high in vitamins A and C.

The sustainability of all horticultural industries hinges on the selection of the correct cultivar for the environment in which it is cultivated and market demands. The ARC runs several breeding Programmes that produce new cultivars with improvedtraitssuchasresilience,enhancedflavourand colour and prolonged shelf life. By using a variety of conventional, mutation and biotechnological breeding techniques, Plant Breeders’ Rights have been granted for various new litchi, macadamia, passionfruit, avocado, cit-rus and mango selections. These cultivars have earned overR35millioninroyaltiesoverthelastfiveyears.


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BIoconTrol oF The economIcally- ImporTanT False codlIng moTh In suBTropIcal

FruIT crops usIng enTomopaThogenIc nemaTodes

False codling moth (FCM) is fast becoming an economi-cally-important pest in many subtropical fruit crops includ-ing avocado, macadamia and litchi and currently there are no treatments which target the soil-borne stages of FCM. Entomopathogenic nematodes (EPNs) live as parasites in the soil-based larval stages of the host insects which they infect. EPNs of the families Heterorhabditidae and Steiner-nematidae have proven to be valuable biocontrol agents of a variety of insect pests worldwide. Knowledge of EPNs in SouthAfricaandresearchinformationregardingtheeffectofEPNsinlarge-scalefieldtrialsinSouthAfricaisalmostnon-existent. As a result, a survey was undertaken to de-termine the diversity and frequency of endemic EPNs in the subtropical regions of South Africa. Just over 10% of the samples collected contained EPNs, of which Heterorhab-ditis was the most common genus isolated (85.7%), while Steinernema was isolated from 14.3% of the samples. Het-erorhabditis baujardi and H. taysearae were first reportsfor South Africa. One of the unknown Steinernema spe-cies was described as Steinernema litchii n. sp. during the study while the other remains an unknown species. Labo-ratory bioassays were conducted to determine the poten-tial of seven local EPN isolates to control last instar FCM larvae. These larvae were found to be most susceptible to S. yirgalemense, H. zealandica and S. litchii that resulted in up to 100% mortality under laboratory conditions. Sepa-ratesemi-fieldtrialsinavocado,litchiandmacadamiaor-chards were conducted to determine FCM mortality under more natural conditions. The best performing isolates from the bioassay studies as well as an imported EPN product, NEMATOP 50®, which was recycled in vivo, were used for thestudy.Duringthefieldtrials,theeffectonFCMmortalitydirectlyafterapplication(2days),aswellasthefieldper-sistenceofnematodesfordifferenttimeperiodsafterap-plication, up to 42 days, was determined. Results from the fieldtrialsshowedthatS. litchii would not be a suitable can-didate for FCM control, with S. yirgalemense proving to be a better candidate than H. bacteriophora and H. zealandica for biocontrol.The results of the field study showed thatlocal EPN species have enormous potential for controlling the soil stages of FCM, including potential soil persistence. ThenextsteptoconformtheefficacyoftheEPNswillbetoevaluatethesespeciesinlargescalefieldtrailsinavocado,macadamia and litchi. S. yirgalemense is currently in the process of being mass-produced and formulated for future commercialisation in South Africa.

Insect larva dissected to reveal just how many

entomopathogenic nematodes are able to infest and kill the larval stage of the host life cycle.

excITIng new cITrus varIeTIes spark markeTers’ InTeresT

World citrus production is divided into four main groups, namely sweet oranges, mandarins, grapefruits and lemons and limes with South Africa being one of the top 10 cit-rus-producing countries in the world. Most of South Africa’s fruit is exported earning much-needed foreign exchange. In order to remain a global player in citrus production, the country needs to produce novel, high quality fruit which meet market demands. The ARC-Tropical and Subtropical Crops campus is well placed in terms of meeting this de-mand. Its extensive citrus breeding Programme seeks to develop new, high quality cultivars suited to various mar-kets by using diverse breeding methodologies. Exciting new varieties emanating from the breeding Programme were showcased at several variety evaluation days. A num-berofrepresentativesfromdifferentmarketingcompaniesincluding Citricom, Citrogold, Citrus Genesis and Stargrow evaluated the new varieties on display. Of the varieties developed from the citrus mutation breeding Programme at Addo Research Station, H8J25, a ‘Cara-Cara’ mutation with a deeper orange rind, as well as three seedless ‘Na-dorcott’ mutations were the most popular amongst the mar-keters.

The most popular varieties from the conventional breeding Programme included:

• 96X1060 (A-18-35) – a very early maturing satsuma hybridwithagoodcolourandflavour;

• 1415 (B18) – an early-maturing clementine hybrid withagoodflavour;

• 98X4136 (A1b I89) – an early-maturing mandarin hybridwithaniceroundshapeandagoodflavour;

• 98X8613 (E10 D37) – an early maturing, seedless, mandarinhybridwithasoftflesh;and

• 01X132 (B4 K11) – a Clementine triploid hybrid with seedlessfruit,andagoodflavourandcolour.


Various citrus marketing agents were invited to

evaluate new citrus selections.

engagIng wITh The youTh durIng naTIonal scIence week

National Science Week (NSW), an initiative of the De-partment of Science and Technology (DST), is an annual countrywide celebration of Science, Technology, Engineer-ing, Mathematics and Innovation (STEMI). This initiative takes place under the Science Engagement Strategy and seeks to facilitate the development of a science- and tech-nology-knowledgeable society. National Science Week involves various stakeholders who participate by conduct-ing STEMI activities during the declared week. The ARC was no exception. With the theme for 2019 being “Facing the harsh realities of climate change” the ARC scientists engaged with learners from Kirkwood High School and Samkelwe Secondary School at an Open Day held at its Addo Research Station as well as Fundinjobo High School, Kabokweni, near Nelspruit. The aim was to identify grade 9learnerswhowouldbechoosingtheirfinalsubjects.Thefocus was to give them insight on the importance of agri-culture in combatting climate change and the challenges thereof, as well as promote agriculture and science as a career prospect. Scientists highlighted the work being car-ried out by the ARC to ensure sustainable development un-der these conditions. The learners were introduced to the differenttropicalandsubtropicalfruitsandsubjectareasonwhich the ARC conducts research; and their impact on the tropical and subtropical fruit industries, local economies and society at large.

Learners were introduced to various alternative crops (L)

and also enjoyed a tasting session of various citrus cultivars during National Science Week (R).


research unlocks value-add opporTunITIes In The TropIcal and suBTropIcal horTIculTure secTor

Food security continues to be a concern as food prices rise month on month. Climate change challenges as well as the increasing unemployment rate further exacerbate the problem. Agro-processing has been identified as asegment with the potential to reach the macro-economic objectives as pronounced in the New Growth and Nation-al Development Plans. South Africa has a well-developed primary agriculture sector across all spheres, including horticulture, making the country well-positioned to harness agro-processing opportunities within this framework. With substantial investment through the Agro-processing Sup-portScheme,andothers,significantgainscouldpotentiallybe made. Since agro-processing provides opportunities for both local and export markets it is a major contributor to-wards much-needed enterprise development, job creation and thus poverty alleviation. Unfortunately, there has been relatively little uptake and therefore impact. The ARC car-ries out research towards product and technology develop-ment as well as knowledge dissemination.

Knowledge dissemination is an extremely important

part of research development.

As part of its research towards developing healthy val-ue-added products, ARC developed glutenfree-sugarfree bananaflourbasedbiscuits.Thesebiscuitsdemonstratedsignificant consumer acceptance in terms of flavour andtexture in an era where the prevalence of diabetes and co-eliac disease are increasing at an alarming rate.

Sugarfree-glutenfreebiscuitsproducedfrombananaflour

have high consumer acceptance.


The Campus is also involved in the use of various drying techniques, including solar, for product development. A range of value-added dried products has been developed and these are regularly showcased at exhibitions around the country. Consumer feedback has shown the enormous potential of these products. Additional research towards product development is also carried out on selected indige-nous crops including marula (Sclerocarya birrea) fruit peel pectin and Natal mahogany (Trichilia emetica) seed protein ineffortstoelucidatethenewproductdevelopmentpoten-tialofSouthAfrica’sindigenousflora.

Various dried fruit products developed at the ARC.

A new, handy guide assists small, medium and micro enterprises in drying their tropical and subtropical fruit.

Small, medium and micro enterprises interested in starting their own agro-processing facilities are able to do so with the guidance of a booklet (“Drying of Tropical and Subtrop-ical Fruit.A simplified pre-processing guide.”) developedby researchers at the campus. The booklet describes all the important aspects of commercial fruit drying, such as fruit drying regulations and standards, essential processing facilities considerations and considerations for receipt of pre-processing raw materials.

Pre-processing production planning is also discussed. Smallholder farmers, school and tertiary education learner groups regularly visit the campus to expand their knowl-edge on agro-processing initiatives and their impact on South Africa and its citizens.

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KNOWLEDGE DISSEMINATION

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JOURNAL ARTICLES

Acosta, Y., Santiago, F., Escalante, D., Mazorra, C., Cejas, I., Martínez-Montero, M.E., Escobar, A., Sershe, N., Ha-jari E., Lorenzo, J.C. & Fontes, D. 2020. Cryo-exposure of Neonotonia wightiiandAmseedsenhancesfieldperfor-mance of plants. Acta Physiologiae Plantarum https://doi.org/10.1007/s11738-019-3010-y.

Du Preez, G., Fourie, H., Daneel, M., Miller, H., Hoss, S., Ricci, C., Engelbrecht, G., Zouhar, M. & Wepener, V. 2020. Oxygen consumption rate of Caenorhabditis elegans as a high-throughput endpoint of toxicity testing using the Seahorse XFe96 Extracellular Flux Analyzer. Scientific re-ports https://doi.org/10.1038/s41598-020-61054-7.

Hajari, E. 2019. Molecular and related approaches to litchi improvement - historical perspective and future trends. The Journal of Horticultural Science and Biotechnology DOI: 10.1080/14620316.

Hajari, E., Hannweg, K., Nonyane, D., Shezi, Z., De Jager, K. & Du Preez, R. 2019. Sex determination in Kei-apple (Dovyalis caffra) using molecular markers and flowcytometry.South African Journal of Botany 127:278-283.

Haran, J., Grove, T., Van Noort, S., Benoita, L. & Addison, P.2019.Naturalbiocontroloffruitfliesinindigenoushosts:A perspective for population control in the agroecosystem. Biological Control 137:104022 https://doi.org/10.1016/j.biocontrol.

Khoza, M.C., Dube, Z.P., Tselanyane, M., Fouche, G., De Waele, D. & Daneel, M.S. 2019. Density-dependent growth response and sensitivity of Meloidogyne incognita to Mae-rua angolensis and Tabernaemontana elegans: Card mod-el, Acta Agriculturae Scandinavica. Section B - Soil & Plant Science DOI: 10.1080/09064710.

Mbatyoti, A., Daneel, M.S., Swart, A., Marais, M., De Waele,D.&Fourie,H.2019.Casestudyofeffectofgly-phosate application on plant-parasitic nematodes associ-ated with a soybean-maize rotation system in South Africa. South African Journal of Plant and Soil http://www.tandon-line.com/loi/tjps20.


Mbatyoti, A., Daneel, M.S., Swart, A., Marais, M., De Waele, D. & Fourie, H. 2020. Plant-parasitic nematode as-semblages associated with glyphosate tolerant and con-ventional soybean cultivars in South Africa. African Zoolo-gy https://doi.org/10.1080/15627020.

Mphahlele, R.R., Caleb, O.J. & Ngcobo, M.E.K. 2020. Ef-fects of packaging and duration on quality of minimally pro-cessed and unpitted litchi cv. ‘Mauritius’ under low storage temperature. Heliyon 6 e03229.

Mphahlele, R.R., Pathare, P.B. & Opara, U.L. 2019. Drying kinetics of pomegranate fruit peel (cv. Wonderful). Scien-tific African https://doi.org/10.1016/j.sciaf.

Rabie, E.C. & Mbatha, B.W. 2019. New innovations in ‘Queen’ pineapple production in South Africa. Acta Horti-culturae 1239:9-14 DOI: 10.17660/ActaHortic.

Rashidifard, M., Fourie, H., Daneel, M.S. & Marais, M. 2019.Morphological andmorphometrical identificationofMeloidogyne populations from various crop production ar-eas in South Africa with emphasis on M. enterolobii. Zoot-axa 4658(2):251-274.

Rashidifard, M., Marais, M., Daneel, M.S. & Fourie, H. 2019. Reproductive potential of South African thermophilic Meloidogyne populations, with special reference to Meloi-dogyne enterolobii. Nematology https://orcid.org/0000-0001-5159-9277.

Rashidifard, M., Marais, M., Daneel, M.S., Mienie, C.M.S. & Fourie, H. 2019. Molecular characterization of Meloido-gyne enterolobii and other Meloidogyne spp. from South Africa. Tropical Plant Pathology http://doi.org/10.1007/s40858-019-00281-4.

Reinhardt, D.H., Uriza, D., Soler, A., Sanewski, G. & Rabie, E.C. 2019. Limitations for pineapple production & commer-cialization and international research towards solutions. Acta Horticulturae 1239:51-64 DOI: 10.17660/ActaHortic.

Schoeman, P.S. 2019. Damage potential of indigenous Heteroptera species occurring on Macadamia nuts (Mac-adamia integrifolia Maiden & Betche & Macadamia tet-raphylla L. Johnson) in South Africa during the early and late season. International Journal of Tropical Insect Sci-ence https://link.springer.com/article/10.1007/s42690-019-00041-6.

Steyn, W.P., Daneel, M.S. & Malan, A.P. 2019. Field ap-plication of entomopathogenic nematodes against Thau-matotibia Leucotreta in South African avocado, Litchi and Macadamia orchards. Biological Control 64(4): 401-411 https://doi.org/10.1007/s10526-019-09943-3.

Yabor, L., Pérez, L., Gómez, D., Villalobos-Olivera, A., Men-doza, J.R., Martínez, J., Escalante, D., Garro, G., Hajari, E. & Lorenzo, J.C. 2020. Histological evaluation of pine-apple transgenicplants following8yearsoffieldgrowth.Euphytica https://doi.org/10.1007/s10681-020-2555-6.

THESES AND DISSERTATIONS Doctoral Steyn, W.P. 2019. Entomopathogenic nematodes (Rhab-ditida: Steinernematidae & Heterorhabditidae) for control of the false codling moth, Thaumatotibia leucotreta (Mey-rick) under South African conditions. Doctor of Technology (Agriculture), Tshwane University of Technology.


ARC-VEGETABLE AND ORNAMENTAL PLANTS

The ARC-Vegetable and Ornamental Plants (ARC-VOP) Campus conducts innovative, needs-driven and environ-mentally-friendly research and technology development on commercial vegetables, African leafy vegetables, medicinal and indigenous bulbous plants. Research in-volves a variety of disciplines, including crop science, agronomy, crop protection, breeding, genetics, biotech-nology, agro-processing and product development. The aim is to conduct research, technology development and transfer for improving the productivity, competitiveness and sustainable production of vegetables, medicinal and ornamental plants for the agricultural industry.

The nutrient content of vegetables makes them key to addressmalnutritionandthecampusplaysasignificantrole in the development of models for food and nutrition security. The ARC conducted an impact study of vegeta-ble research and it was determined that for every R100 invested in vegetable research an improvement of R140 was realised in the industry as a whole, which clearly demonstrates the importance of vegetable research for South Africa.

The breeding Programmes focus on the development of cultivars with improved resilience against agricultur-al risks, including improved drought tolerance, pest and disease resistance as well as increased nutritional qual-ity and yield. Crop Sciences focuses on the develop-ment of vegetable and medicinal plant propagation and production systems, identifying crops with good water use efficiency and development of water and nutrientefficientproductionsystems.Agro-processingandnewproduct development from medicinal plants and indig-enous/African vegetables is a key Programme of the campus. The Crop Protection research focusses on the development of integrated pest and disease manage-ment mechanisms for economically-important pests and diseases of vegetables and medicinal plants. The Cam-pus delivers several services to the industry, including diagnostic and feasibility studies, training and enterprise development and rural development.


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Vegetable pest and disease management

Crop protection makes an important contribution to the identificationandmitigationofpestsanddiseasesof im-portance to the vegetable sector, as well as developing diagnostic tools for the rapid identification of pests anddiseases. The on-going research on potato pests and dis-eases is of tremendous value to commercial and emerging potato producers, and to the potato industry, as they are major constraints to potato production. The primary potato industry is valued at about R8 billion per year, and yield losses of between 15 and 20% due to pests and diseases result in a loss of between R1.2 billion and R1.6 billion. Monitoring for, and mitigation of, emerging pests and dis-eases are very important.

The ARC was instrumental in compiling training material on tomato leafminer, Tuta absoluta, for agricultural advi-sors on how to identify and manage this pest. Furthermore, research indicated that T. absoluta was not a threat to po-tato production, thereby eliminating unwarranted chemical spraying, resulting in a lower impact on the environment, as well as lower input costs to the farmer.

The withdrawal of fumigant synthetic nematicides led to a study that proposed an integrated nematode management strategy for use in potato production to reduce nematode population densities. Biocontrol agents were tested and shown to reduce the presence of nematodes, while shoot mass and plant height increased by 12-13%. Information generated by research is of vital importance to the potato industry, to understand and incorporate pest and disease risks into production systems to protect yields and ultimate-ly lower input costs.

The ARC supports the sweet potato industry by performing research on pests and diseases of sweet potato, such as Fusariumwilt.Theeffectofplantgrowthpromotingrhizo-bacteria (PGPRs) on Fusarium wilt of sweet potato showed potential for an increase in root and shoot fresh weight, root dry weight and total root length, as well as reduced disease symptoms. Part of an integrated control strategy, it can enable farmers to produce crops of good quality with high yields, leading to improved food security and improved nutrition. The ARC has kept the sweet potato industry prof-itable by running a disease-testing scheme that provides healthy mother stock plants, enabling growers to start each session with planting material of disease-tested origin.

For small-scale and emerging farmers, the prevention of production losses enables them to produce high yielding crops of good quality. Excess, high quality produce en-hances their competitiveness when selling at local markets to generate income for poor rural families, thus contributing to improved nutrition, food security and poverty alleviation.

Demonstration of pest and disease control

in farmer’s hydroponic tunnel.

Vegetable genetic resources acquisition, characterization and cultivar development

Plant genetic resources are the foundation of crop im-provement Programmes for food security and addressing malnutrition. Innovative and needs-driven variety evalu-ation and development were conducted on African leafy and fruit vegetables, legume crops, such as cowpea and bambara groundnut, and root crops such as potato, sweet potato and taro. These crops are important in the South African food system for food, nutrition and health security.

The indigenous/traditional vegetables genebank collection at the ARC is the biggest collection of its kind in South Af-rica. Germplasm acquisition, maintenance and utilization plays a critical role in broadening the gene pool of the ARC collection. More than 200 accessions were acquired for bambara groundnut, cowpea, amaranth and sweet potato in the past 5 years. This, coupled with existing collections, positioned the ARC as a preferred R&D partner for these crops.

Assessment of genetic diversity using morpho-agronomical characteristics was conducted for 100 Bambara groundnut, 85 cowpea, 50 okra, 11 corchorus, 73 sweet potato and 104 amaranthaccessionsindifferentpartsofthecountry.Thisis of great importance, as baseline information on pheno-typic diversity analysis and adaptability contribute towards effectiveutilizationinthebreedingprogrammes,aswellasforpre-breeding.Overthe5-yearperiodfourpotatoes,fiveCowpea,fiveBambaragroundnut,fouramaranth,fourcor-chorus lines (2 with high Fe and Zn content and 2 for high yield), two okra genotypes and 20 sweet potato lines were selected for commercialisation/promotion.

Two applications for Plant Breeders’ Rights for ARC pota-toes were approved in 2016 and two further applications were submitted in 2019 for cultivar registration. One sweet potato cultivar was registered and another two applications for Plant Breeders’ Rights were submitted for cultivar reg-istration. In addition to the established vegetable crops, the work provided a wealth of information on underutilized crops and clearly outlined their value in human nutrition. Breeding for increased yield and nutritional content for fu-ture use in South Africa is well established. Four sweet po-tato enterprises were established to multiply and sell vines, creating jobs and income.


Potato production training is being done to increase the numbers of new entrants into the potato industry to meet aspectsof theARC transformationagenda.The last fiveyears also witnessed the establishment and refurbishment of four independent tissue culture laboratories for research, quarantine, mass propagation and in vitro genetic resourc-es conservation, making the ARC the only institution in the country with the full complement of tissue culture systems.

Smallholder Farmer (SHF) Support

During the past 5 years the SHF Development Programme provided training and support in vegetable production to morethan1500SHF’s,179extensionofficers,207teach-ers and subject specialists and 8 lecturers from agricul-tural colleges. The team also operated internationally by enhancing agricultural capacity in the Union of Comoros, funded by the United Nations Development Programme (UNDP).

Smallholder commercial enterprises (106 sweet potato growers, 17 sweet potato vine nurseries, 69 ALVs and 13 medicinal plants) were established in partnership with the DRDLR in seven provinces. Twenty-four technology pack-ages, linked to the Para-Professional vegetables gardens, were developed and packaged for DRDLR. Post implemen-tation assessment revealed that the majority of enterprises experienced improved yield and quality of their produce.

The team was also contracted by DALRRD in the training and support of Agricultural Para-Professionals (APPDPs) and 931 APPDPs were trained and or supported during the past 5 years.

The sweet potato foundation nursery on the Roodeplaat campus annually provides propagation material from dis-ease-indexed material from February to June to small-scalecommercialvinenurseriesinfiveprovincesofSouthAfrica. During 2018/19, 38 sweet potato-producing enter-prises provided 215 permanent jobs and 183 ad hoc jobs, while 40 people were trained in production of sweet potato.

Agro-processing support is provided to several communi-ties in Limpopo, Gauteng, Mpumalanga and KZN. In collab-oration with DSI, two processing facilities were completed (Moringa organic Farm, Tooseng and MIPFA fruit process-ing in Makonde Village) and two are under construction (Phedisang and Nkomazi). These processing units play a significantroleinincomegenerationforthebeneficiaries,as well as communities around the facility.

Smallholder hydroponic tomato farmers in Gauteng were supported for two years by the ARC in collaboration with Gauteng Department of Agriculture and Rural Develop-ment (GDARD).

The three SHFs who collaborated on the project experi-enced a yield increase of between 30 and 40% compared with the previous year’s results, clearly illustrating the im-pact of the intervention.

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clImaTe smarT agrIculTural InTervenTIons For vegeTaBle producTIon

The impact of climate change in the form of rising tempera-tures and changing seasonal rainfall patterns, with unpre-dictablefluctuationsofwetteranddrieryears,particularlyin dry arid to semi-arid areas, is already evident in South Africa. Farmers, particularly those in vulnerable commu-nities, need climate smart agricultural (CSA) interventions tomitigatetheeffectsofclimatechangeonfoodsecurity.The ARC developed three CSA technologies with funding provided by the DALRRD. Rainwater harvesting and con-servation (rooftop, in-situandin-field) improvedcroppro-ductivity considerably, particularly in dry seasons, with up to 40% increase in fresh yield compared with conventional cultivation practices. Vertical cultivation of leafy vegetables using the simple hydroponic system developed by the ARC resulted in double yield per unit of land utilized for crop production,withuptotentimeshigherwateruseefficien-cy compared with horizontal crop production. Intercropping withleafylegumevegetablessignificantlyincreasedsoilni-trogenfixation,evenwithdecreasedinorganicnitrogenap-plication,demonstratingthebenefitsof leguminouscropsin improving soil nutrient fertility, with reduced dependency on inorganic fertilizers.

Funding from the Water Research Commission (WRC) enabled the ARC to roll out several CSA technologies to two primary school vegetable gardens in Mamelodi. These includedstrategies forefficient irrigationwateruse, suchasusingcropcoefficientstodeterminecropwaterrequire-mentsundera rangeofclimaticconditionsanddeficit ir-rigation methods for improved water use efficiency andnutritional water productivity of crops. Implementation of deficit irrigation on leafy vegetables, such as amaranth,spiderflowerandSwisschard,resultedinaconsiderableimprovementofbothwateruseefficiency(upto30%)andnutritional water productivity (up to 66%).

The ARC also collaborated with DALRRD and the NRF in the development of nutrient-dense vegetable varieties that are also drought tolerant, through selection breeding, to broaden the food base in South Africa. The development of these technologies enabled the training of more than 60 farmers and post-graduate students in the Gauteng province,aswellas30extensionofficers fromtheNorthWest province, who also benefited from additional fund-ing by the German government. This has contributed to improved crop productivity for farmers and decreased use of water, fertilizers and pesticides in farming operations, whichinturnincreasedfarmers’profitabilityandimprovedthe well-being of communities at large.


Field rainwater harvesting and conservation strategies for im-proved production of leafy vegetables under dryland conditions.

Climate-smart, low-cost hydroponic production system for verticalcultivationofvegetablesanddeficitirrigationat

a primary school in Mamelodi, Gauteng province.

pesT and dIsease managemenT In supporT oF

The souTh aFrIcan poTaTo IndusTry

Potatoes are one of the major agricultural crops contribut-ing to food and nutrition security in South Africa. The ARC plays a crucial role in the identification andmitigation ofimportant pests and diseases for the potato industry, with funding provided by Potatoes South Africa (PSA).

Bacterial wilt (BW) causes yield losses of up to 100%. Oncea field is contaminatedwithBW, one cannot plantpotatoes in that field again. However, as land and inputcosts become more expensive, there is a growing need for solutionsthatwillenablefarmerstousesuchfieldsagain.Research by the ARC showed that chemical sanitizers are unable toeradicateBW inbiofilmson thesurfaceof im-plements, thusenablingBWinbiofilmstospreadtonewenvironments. Because BW is such a destructive disease, farmers must ensure that contaminated implements do not spread the pathogen from infected fields to clean fields.Researchcontinuestodevelopaneffectivesanitizingpro-tocol for implements.

Potato leafminer remains a serious pest in most produc-tion regions, as it causes yield losses of up to 70% where leafminer control is inadequate. Although insecticides are available for leafminer control, farmers did not know when andfromwherethefirstleafminerfliesoftheseasonwouldcome.

AnARCstudy found that potato leafminer fliesemergedfrompreviouslyharvestedfields,andthatfarmerscanre-ducenumbersinnewfieldsbydeepploughingharvestedfieldstodestroyleafminerpupae.Farmersnowknowhowtopreventleafminerfliesfromspreadingtonewfields,en-suringmoreeffectivepestcontrolandareductioninyieldlosses.

Adult potato leafminerfly.

Potato leafminer damage to a potato leaf.

BreedIng and evaluaTIon oF IndIgenous and TradITIonal crops

Indigenous and traditional crops have proved to be very well-adapted to local conditions and have the potential to enhancetheefficiencyofcropproductionandproductivityby increasing the cultivated land and yields in marginal ar-easwheretheeffectofclimatechangeisexpectedtobemore aggravated.

An ARC study evaluated the yield and nutritional compo-sition of selected indigenous and traditional crops, namely amaranth (thepe or Imbuya), jute mallow (Delele or guxe) and cowpea (dinawa), compared with Swiss chard un-der varying watering conditions. Application of less water (half of the total water needs of the crop during the entire growing season) led to improved nutritional yield in indige-nous crops compared with the Swiss chard, while the high concentration of nutrients under moderate water stress in-dicates the potential to produce these crops in marginal areas. By harvesting earlier (6 or 8 weeks after planting), farmerscanalsobenefitfromhigherconcentrationsofnu-trients in the indigenous and traditional crops.

The ARC also evaluates indigenous and traditional crop germplasm to identify genotypes that can be released to farmers for cultivation, as well as germplasm that can be used in the breeding programme.

During the past year 80 cowpea, 99 Bambara groundnut and 104 amaranth genotypes have been evaluated, using participatory breeding approaches for agronomical traits, nutrient content and consumer acceptability. The farmer participatory trials were planted with small-scale farmers infiveprovinces.Thefieldevaluationwascomplementedwithnutritionalcontentanalysis.Fouramaranth,fiveBam-bara and five cowpea lineswere selected for release tosmallholder farmers based on the preliminary results for yield, iron, zinc, protein contents, drought tolerance and adaptability.


Amaranth trial at a smallholder farm close to Mahikeng.

Farmers discussing cowpea lines at a farmers day.


susTaInaBle use oF medIcInal planTs To empower smallholder Farmers

Medicinal plants play a crucial role in human health, with an estimated 70-80% of the world’s population relying on medicinal plants for prevention or curing of diseases. Col-laboration between the ARC, Department of Science and Innovation (DSI), universities and other Science Councils has seen the use of Indigenous Knowledge Systems (IKS) interfaced with rural agro-processing and the development of community based rural agri-businesses to enhance food and nutrition security, thereby increasing global competi-tivenessanddiversificationof theagriculturalsector.TheMakonde Indigenous Fruit Processing Association (MIP-FA) cooperative in Makonde, Limpopo province, farms with different vegetables, includingMoringa and other indige-nous leafy vegetable crops.

This group was introduced to agro-processing of their pri-mary produce, including indigenous fruits, which resulted in the sustainable production of a range of niche products throughout the year, including jam, cosmetics, nutritional supplements in the form of capsules, healthy tea bever-ages, healthy energy drinks, and patented vitamin water. MIPFA now plans to expand its operation from three to eight hectares.

Fungal infections, such as those caused by Fusarium spe-cies, often result in pre- and postharvest yield losses and during storage, contaminate food and exacerbate food in-security. Synthetic fungicides are becoming less attractive, posing health risks to consumers, and are not environ-mentally-friendly. As an alternative to synthetic fungicides, medicinal plantsmaypresent sustainableandaffordablesources of environmentally-friendly fungicides for con-trolling plant diseases.

An ARC study, funded by the NRF, found that extracts ob-tained from river bushwillow, wild plum and sawtooth oak exhibited strong antifungal activity against selected eco-nomically-important plant pathogenic Fusarium species. These have potential to be developed as sustainable, af-fordable and environmentally-friendly fungicides. A study by the ARC showed that hyperspectral data can be used as a quick, non-destructive means to predict biomass yield of differentMoringacultivars.Theseresultsindicatethattheuse of hyperspectral data could be extrapolated to larger scales of production for the prediction of biomass yield of medicinal plants using space-borne and airborne acquired data.

MIPFA indigenous fruit processing facility in Makonde,

Limpopo province.

Remote sensing and GIS on a Moringa plant

to estimate its biomass yield.



smallholder FarmIng (shF) supporT and developmenT

Farmer training plays a key role in human capacity devel-opment for sustainable crop production, resource utiliza-tion and income generation. This includes development of Business Plans and feasibility studies for farmers, e.g. information on environmental suitability of crops, customer needs, available infrastructure and technology. The Small-holder Farming (SHF) Development Programme provided training and support in vegetable production to 237 people, including training and demonstrations on potato and sweet potato cultivation to farmers.

The ARC sweet potato foundation nursery supplies dis-ease-free material to the industry. A system is being de-veloped to provide affordable potato plantingmaterial toSHFs. Malnutrition often leads to poor school attendance and high rates of dropout, consequently, the WRC and the ARC established two school vegetable gardens in Mamelo-di East, Pretoria as a pilot study. Knowledge transferred in-cludedwateruseefficiencypractices,rainwatercollectionand planting of indigenous vegetables.

SchoolgardenbeneficiariesattheBulaDikgoroand

Mahlasedi Masana Public Primary Schools.

The SHF development Programme, with funding from the United Nations Development Programme, also impacted internationally through enhancing agricultural capacity in the Union of Comoros. Demonstration gardens with a va-riety of vegetables were established on three islands (An-juan, Moheli and Moroni). Four farmers from the Comoros visited two ARC campuses as part of capacity develop-ment. Fertilizers and biocontrol agents were procured in South Africa and shipped to the Comoros, which improved production.

Vegetable training activities in the Comoros: soil preparation,

compost making and bag gardens.

Agroforestry includes the use of woody perennials, agri-cultural crops and animals in combination to achieve ben-eficialecologicalandeconomicinteractionsforfood,fibreand livestock production. The commercial forestry industry supportsanagroforestryprojectwith180directbeneficia-ries in 30 villages, spread over the South African Forestry Company Limited (SAFCOL), Mountain To Ocean (MTO), Ratombo and Dimani Moringa forestland in the Mpumalan-ga and Limpopo provinces. Experts from the ARC provid-ed knowledge and support to integrate the production of food crops such as maize, sweet potatoes, groundnuts and bambara groundnuts in new plantings of eucalyptus trees to improve livelihoods through income generation, job cre-ation and food security.

Agroforestry with small eucalyptus trees and groundnuts at

Mountain To Ocean (MTO) Forestry, White River.

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JOURNAL ARTICLES

Adebayo, S.A. & Amoo, S.O. 2019. South African botani-calresources:Agoldmineofnaturalpro-inflammatoryen-zyme inhibitors? South African Journal of Botany 123:214-227.

Aina, O.E., Amoo, S.O., Mugivhisa, L.L. & Olowoyo, J.O. 2019.EffectofOrganicandInorganicSourcesofNutrientson the Bio Active Compounds and Antioxidant Activity of Tomato. Applied Ecology and Environmental Research 17(2):3681-3694.

Anyasi, R.O., Atagana, H.I. & Sutherland, R. 2019. Com-parative Study of the Colonization of Chromolaena and Tobacco Plants by Bacteria safensisCS4usingDifferentMethods of Inoculation. Pakistan Journal of Biological Sci-ences 22:309-317.


Anyasi, R.O., Atagana, H.I. & Sutherland, R. 2019. Identi-ficationandcharacterizationofPAH-degradingendophytesisolated from plants growing around a sludge dam. Interna-tional Journal of Phytoremediation 21(7):672-682.

Arumugam, N., Biely, P., Puchart, V., Gerrano, A.S., De Mukherjee, K., Singh, S. & Pillai, S. 2019. Xylan from bambara and cowpea biomass and their structural eluci-dation. International Journal of Biological Macromolecules 132:987-993.

Aruwa, C.E., Amoo, S. & Kudanga, T. 2019. Phenolic com-poundprofileandbiologicalactivitiesofSouthernAfricanOpuntia ficus-indica fruit pulp and peels. LWT - Food Sci-ence and Technology 111:337-344.

Aruwa, C.E., Amoo, S.O. & Kudanga, T. 2019. Extractable and macromolecular antioxidants of Opuntia ficus-indica cladodes:Phytochemicalprofiling,antioxidantandantibac-terial activities. South African Journal of Botany 125:402-410.

Asong, J.A., Amoo, S.O., McGaw, L.J., Nkadimeng, S.M., Aremu, A.O. & Otang-Mbeng, W. 2019. Antimicrobial Ac-tivity, Antioxidant Potential, Cytotoxicity and Phytochemical ProfilingofFourPlantsLocallyUsedagainstSkinDiseas-es. Plants 8:350.

Dube, S.P., Marais, D., Mavengahama, S., Van Jaarsveld, C.M. & Gerrano, A.S. 2019. Variability in leaf mineral con-tent of Corchorus accessions in South Africa. Research on Crops 20(1):121-128.

Gatabazi, A., Marais, D., Steyn, M.J., Araya, H.T. & Mok-gehle, S.N. 2019. Growth and yield responses of two ginger species to different levels of nitrogen. South Af-rican Journal of Plant and Soil, 36:4, 289-298, DOI: 10.1080/02571862.2019.1566501.

Gatabazi, A., Marais, D., Steyn, M.J., Araya, H.T., Mofo-keng, M.M. & Mokgehle, S.N. 2019. Evaluating Growth, Yield,andWaterUseEfficiencyofAfricanandCommercialGinger Species in South Africa. Water 11(3):548.

Gerrano, A.S., Jansen van Rensburg, W.S., Bairu, M., Amoo, S., Venter, S.L. & Mavengahama., S. 2019. Nutri-tional characterization of mineral elements and total protein content in the leaf tissues of Amaranthus. Res. on Crops 20(2):357-368.

Kondwakwenda, A., Sibiya, J., Amelework, A.B. & Zenge-ni, R. 2019. Diversity analysis of provitamin A maize inbred lines using single nucleotide polymorphism markers. Acta Agriculturae Scandinavica, Section B - Soil & Plant Sci-ence 0906-4710 https://doi.org/10.1080/09064710.

Mahlangu, R.I.S., Maboko, M.M. & Mudau, F.N. 2019. Growth, yield and mineral content of basil and cultivated rocket due to plant density and nitrogen level. International Journal of Vegetable Sciences 1931-5279 https://doi.org/10.1080/19315260.2019.1682102.

Mampholo, B.M., Maboko, M., Soundy, P. & Sivakumar, D. 2019. Postharvest responses of hydroponically grown lettuce varieties to nitrogen application rate. Journal of In-tegrative Agriculture 18(10):2272-2283.

Maseko, I., Mabhaudhi, T., Ncube, B., Tesfay, S., Araya, H.T., Fessehazion, M.K., Chimonyo, V.G.P., Ndhlala, A.R. & Du Plooy, C.P. 2019. Postharvest drying maintains phe-nolic,flavonoidandgallotannincontentofsomecultivatedAfrican leafy vegetables. Scientia Horticulturae 255:70-76

Masemola, B.M., Gerrano, A.S., Yobo, K. & Derera, J. 2019. Phenotypic Characterization of Mycotoxin Resistant Maize (Zea mays L.) Inbred Lines. Research on Crops 20 (4):796-802.

Mashabela, M.N., Maboko, M., Soundy, P. & Sivakumar, D. 2019. Impact of nitrogen supply on glucosinolate con-tent andphenolic acids in cauliflower varieties.Acta Ag-riculturae Scandinavica, Section B - Soil & Plant Science 69(6):503-510.

Mashela, P.W., Shokoohi, E. & Pofu, K.M. 2020. Morpho-logical adjustment in free-living Steinernema feltiae infec-tive juveniles to increasing concentration of Nemafric-BL phytonematicide. PLoS ONE 15(1): e0227448 https://doi.org/10.1371/journal.pone.0227448.

Mbandlwa, N.P., Fotouo-M, H., Maboko, M.M. & Sivaku-mar, D. 2019. Stomatal conductance, leaf chlorophyll con-tent, growth, and yield of sweet pepper in response to plant growth regulators. International Journal of Vegetable Sci-ence DOI: 10.1080/19315260.2019.1610925.

Mokgehle, S.N., Tesfay, S.Z., Makgato, M.J. & Araya, H.T.2019.PhytochemicalprofilingandsolublesugarsofAfrican ginger (Siphonochilus aethiopicus) from differentgrowing regions in South Africa. South African Journal of Plant and Soil 1-7.

Mostert, I., Visser, M., Gazendam, I., Cloete, M., Burger, J.T. & Mareem, H.J. 2020. Complete genome sequence of a novel polerovirus in Ornithogalum thyrsoides from South Africa. Archives of Virology 165:483-486.

Mudau, A.R., Soundy. P., Araya, H.T. & Mudau, F.N. 2019. EffectofSeasononGrowth,Productivity,andPostharvestQuality of Baby Spinach. HortScience 54(5):835-839.

Mulaudzi, R.B., Aremu, A.O., Rengasamy, K.R.R., Ade-bayo, S.A., McGaw, L.J., Amoo, S.O., Van Staden, J. & Du Plooy,C.P.2019.Antidiabetic,anti-inflammatory,anticho-linesterase and cytotoxicity determination of two Carpobro-tus species. South African Journal of Botany 125:142-148.

Mulovhedzia, N.E., Araya, N.A., Mengistu, M.G., Fesse-hazion, M.K., du Plooy, C.P., Araya, H.T. & van der Laan, M. 2020. Estimating evapotranspiration and determining cropcoefficientsofirrigatedsweetpotato(Ipomoea bata-tas) grown in a semi-arid climate. Agricultural Water Man-agement 233:106099.


Mndzebele, B., Ncube, B., Fessehazion, M., Mabhaudhi, T., Amoo, S., du Plooy, C., Venter, S. & Modi, A. 2020. Effectsofcowpea-amaranthintercroppingandfertiliserap-plication on soil phosphatase activities, available soil phos-phorus, and crop growth response. Agronomy 10:79.

Mwinga, J.L., Asong, J.A., Amoo, S.O., Nkadimeng, S.M., McGaw, L.J., Aremu, A.O. & Otang-Mbeng, W. 2019. In vi-troantimicrobialeffectsofHypoxis hemerocallidea against six pathogens with dermatological relevance and its hy-tochemical characterization and cytotoxicity evaluation. Journal of Ethnopharmacology 242:112048.

Naiker, T.S., Gerrano, A. & Mellem, J. 2019. Physicochem-icalpropertiesofflourproducedfromdifferentcowpea(Vi-gna unguiculata) cultivars of Southern African origin. Jour-nal of Food Science and Technology 56(3):1275-1286.

Ndou, P., Taruvinga, B., Mofokeng, M.M., Kruger, F., du Plooy, C.P. & Venter, S.L. 2019. Value chain analysis of medicinal plants in South Africa. Ethno med 13(4):226-236.

Nkoana, K.D., Gerrano, A.S. & Gwata, E.T. 2019. Agro-nomic Performance and Genetic Variability among Diverse Cowpea (Vigna Unguiculata) Germplasm Accessions. Le-gume Research 42(6):757-762.

Nkoana, K.D., Gerrano, A.S. & Gwata, E.T. 2019. Evalua-tion of diverse cowpea (Vigna unguiculata [L.] Walp.) germ-plasm for drought tolerance. Legume Research 42(2):168-172.

Nyathi, M.K., Mabhaudhi, T., Van Halsema, G.E., Annan-dale, J.G. & Struik, P.C. 2019. Benchmarking nutritional water productivity of twenty vegetables – A Review. Agri-cultural Water Management 221:248-259.

Pofu, K.M., Mashela, P.W. & Laurie, S. 2019. Host-status of 20 sweet potato lines to Meloidogyne species in South Africa. Acta Agriculturae Scandinavica, Section B - Soil & Plant Science DOI: 10.1080/09064710.2019.1678668.

Pofu, K.M., Mashela, P.W. & Venter, S.L. 2019. Dry bean cultivars with the potential for use in potato-dry bean crop rotation systems for managing root-knot nematodes in South Africa. South African Journal of Plant and Soil 1:3.

Pulela, P.L., Maboko, M.M., Soundy, P. & Amoo, S.O. 2020. Development, yield and quality of Cantaloupe and Honeydew melon in soilless culture in a non-temperature controlled high tunnel. International Journal of Vegetable Science DOI: 10.1080/19315260.2020.1727075.

Seepe, H.A., Amoo, S.O., Nxumalo, W. & Adeleke, R.A. 2019. Antifungal activity of medicinal plant extracts for po-tential management of Fusarium pathogens. Research on Crops 20(2):399-406.

Seepe, H.A., Amoo, S.O., Nxumalo, W. & Adeleke, R.A. 2020. Sustainable use of thirteen South African medicinal plants for the management of crop diseases caused by Fu-sarium species - An in vitro study. South African Journal of Botany 130(2020):456-464.

Selaocoe, M.E., Adebola, P., Pillay, M. & Laurie S.M. 2019. Genetic diversity of South African sweetpotato germplasm using molecular markers. Journal of Crop Improvement DOI: 10.1080/15427528.2019.1671930.

Theka-Kutumela, M.P., Kanu, S.A., Araya, H.T., Sedibe, M.M. & Mudau, F.N. 2019. Physiological and phytochem-ical responses of baby spinach (Spinacia Oleracea L.) Cultivars to Combined NPKS nutrition and Bacillus subtilis BD233 Inoculation Using LC-MS. Applied Ecology and En-vironmental Research 18(2):2129-2140.

Tigist, S.G., Melis, R., Sibiya, J., Assefa, B.A., Keneni, G. & Tegene, A. 2019. Population structure and genome-wide association analysis of Bruchid resistance in Ethiopian common bean genotypes. Crop Science 59:1-12.

Tshabalala, T., Ncube, B., Madala, N.E., Nyakudya, T.T., Moyo, H.P., Sibanda, M. & Ndhlala, A.R. 2019. Scribbling the Cat: A Case of the “Miracle” Plant, Moringa oleifera. Plants 8:510 DOI: 10.3390/plants8110510.


Masters Hlatshwayo, N.A. 2019. Optimising the in vitro propaga-tion of two endemic Aloe species. Master of Science (Biol-ogy), Sefako Makgatho Health Sciences University.

Huma, I.2019.Pre-andPost-emergentapplicationeffectsof Nemafric-BG Phytonematicide on growth of potato cul-tivar ‘Mondial G3’ and suppression of Meloidogyne javan-ica. Master of Agriculture (Plant Protection), University of Limpopo.

Kobe, S.P. 2019. Non- Phytotoxic Concentration and Application Interval of Nermarioc-AL Phytonematicide in Management of Meloidogyne Javanica on Potato Cultivar ‘Mondial G3. Master of Agriculture (Plant Protection), Uni-versity of Limpopo.

Ledwaba, K.L.2019.ProteomicprofileofBurkholderia an-dropogonis. Master of Science (Agriculture), University of South Africa.

Sefefe, K. 2019. Management of Meloidogyne javanica on beetroot using Nemarioc-AL Phytonematicides. Master of Agricultural Science (Plant Protection), University of Lim-popo.

Seko, J. 2020. Assessing the impact of indigenous knowl-edge systems on sustainable agriculture: A focus on sus-tainable agriculture in selected communities in the City of Tshwane Metropolitan, Gauteng Province, South Africa. Masters of Philosophy (Development and Management), North West University.

Siwela, P. 2019.SocioEconomicFactorsInfluencingSus-tainability of Homestead Food Gardens: A case of house-holds in Tshwane Region, Gauteng Province. Masters of Philosophy (Sustainable Agriculture), University of the Free State.


Doctoral Nyathi, M.K. 2019. Assessment of nutritional water pro-ductivity and improvement strategies for traditional vege-tables in South Africa. Doctor of Philosophy (Agriculture), Wageningen University.

CHAPTERS IN BOOKS

Maponya, P., Venter, S.L., Du Plooy, C.P., Backeberg, G.R., Mpandeli, S. & Nesamvuni, E. 2020. Timber-Based Mixed Farming/Agroforestry Benefits: A Case Study ofSmallholder Farmers in Limpopo Province, South Africa. In: Venkatramanan V., Shah S., Prasad R. (eds) Global Climate Change and Environmental Policy, pp. 275-302, Springer, Singapore.


Coetzer, G.M., De Wit, M., Fouché, H.J. & Venter. S.L. 2019.Climaticinfluencesonfruitqualityandsensorytraitsof cactus pear (Opuntia ficus-indica): a 5-year evaluation. Proceedings of the IX International Congress on Cactus Pear and Cochineal: CAM Crops for a Hotter and Drier World, Acta Hortic. 1247. ISHS 2019.

De Wit, M., Du Toit, A., Fouché, H.J., Hugo, A. & Venter, S.L. 2019. Screening of cladodes from 42 South African spineless cactus pear cultivars for morphology, mucilage yield and mucilage viscosity. Proceedings of the IX Inter-national Congress on Cactus Pear and Cochineal: CAM Crops for a Hotter and Drier World, Acta Hortic. 1247. ISHS 2019.

De Wit, M., Fouché, H.J., De Waal, H.O., Coetzer, G.M. & Venter. S.L. 2019. Promoting the potential of spineless cactus pear (Opuntia ficus-indica) as a multi-use crop at the Oppermansgronde community in the Free State prov-ince of South Africa. Proceedings of the IX International Congress on Cactus Pear and Cochineal: CAM Crops for a Hotter and Drier World, Acta Hortic. 1247. ISHS 2019.

Du Toit, A., De Wit, M., Seroto, K.D., Fouché, H.J. & Ven-ter. S.L. 2019. Rheological characterization of cactus pear mucilage for application in nutraceutical food products. Proceedings of the IX International Congress on Cactus Pear and Cochineal: CAM Crops for a Hotter and Drier World, Acta Hortic. 1247. ISHS 2019.

Gerrano, A.S., Jansen van Rensburg, W.S., Bairu, M. & Venter, S. 2019. Evaluation of Taro (Colocasia esculenta (L.) Schott) germplasm collection in South Africa. Acta Hor-ticulturae, 1255. ISHS 2019. Proceedings of the Interna-tional Symposium on Horticulture: Priorities and Emerging Trends. DOI 10.17660/ActaHortic.2019.1255.13.

Maponya, P. 2019. Water Resource and Food Security: A Case study of Households in Gauteng Province, South Af-rica. Proceedings of the 3rd World Irrigation Forum (WIF3), International Commission on Irrigation and Drainage, 01-09 September 2019, Bali, Indonesia.

Maponya, P., Venter, S.L., du Plooy, C.P., Backeberg, G.R., Mpandeli, S. & Nesamvuni, A.E. 2019. Research, Extension Services and Training as Key Drivers to Agro-forestry Adoption in Limpopo Province, South Africa. Pro-ceedings of the 3rd World Irrigation Forum, International Commission on Irrigation and Drainage (ICID), 01-09 Sep-tember 2019, Bali, Indonesia.

Maponya, P., Venter, S.L., Du Plooy, C.P., Bairu, M.W. & Van Den Heever, E. 2019. Agricultural Training Challeng-es Faced by Smallholder Farmers in the Amathole District, Eastern Cape in South Africa. 10th Agrosym Conference, pp 1761-1770, Bosnia Sarajevo.

Mokgehle, S.N., Tesfay, S.Z, Araya, H.T., du Plooy, C.P. &Suinyuy,T.N.2019.VolatileprofilingofaromaticAfricanginger (Siphonochilus aethiopicus) in response to irriga-tion regimes and nitrogen levels. ISHS Acta Horticulturae 1251: XXX International Horticultural Congress IHC2018: II International Symposium on Root and Tuber Crops: Value Added Crops for the Next Generation, DOI 10.17660/Acta-Hortic.2019.1251.5.

Venter, S.L., Fouché, H.J., De Wit, M., Mavengahama, S., Coetzer, G.M., Swart, W.J. & Amonsou, E.O. 2019. Theeffectoffosteringpartnershipsonbroadeningthefoodbase: the role of cactus pear, an underutilised crop with un-limited potential - the South African perspective. Proceed-ings of the IX International Congress on Cactus Pear and Cochineal: CAM Crops for a Hotter and Drier World, Acta Hortic. 1247. ISHS 2019


ARC-INDUSTRIAL CROPS

The mandate of the ARC-Industrial Crops (ARC-IC) Cam-pus is to conduct applied and adaptive research on import-ant industrial crops for improved intensive and extensive crop production through crop genetics, nutrition and man-agement practices. The Campus aims to be recognised as an internationally acclaimedscientific centreof expertiseinthefieldof:

• cotton; • hemp; • flax;• kenaf; • sisal;• indigenousfibrecrops;• cassava;• tobacco; and • other crops with industrial potential.

The purpose is to conduct research, technology devel-opment and transfer to improve the national productivity, competitiveness and sustainable production of industri-al crops for the relevant producers in the industrial crops industry. Researchers conduct on farm and on station re-search in most of the provinces where the mandated crops are grown in South Africa.

The Campus conducts training in production and enter-prise development for new commercial and smallholder farmers and extension officers. It alsomaintains the ge-netic resources of the mandated crops as national assets.

The research Programmes include a range of disciplines, including agronomy, plant breeding, crop protection, and delivers analytical and diagnostic services to industry role-players.

The breeding Programmes focus on the development of improved cultivars with improved quality and yield. Agrono-my focuses on the development of sustainable production systems.

The crop protection research focusses on the development of integrated pest and disease management for economi-cally-important pest and diseases of industrial crops.

The Campus provides technical advisory services to indus-trial crop growers to ensure sound decision-making and in support of economically viable industrial crops agricultural industry.


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The role of the ARC on the cotton value chain and smallhold-er farmers’ support

InSouthAfrica,cottonconstitutesover70%ofnaturalfi-breandover40%ofallfibreprocessed.Itisgrownbyanestimate of 150 commercial and more than 1 300 small-holder farmers infiveprovinces.Recently theproductionhas increased by 67% and 171% for dryland and irrigation plantings, respectively, due to the high demand for cotton. Between 2012 and 2018, the ARC, with funding from the then Department of Rural Development and Land Reform, engaged on a programme focused on the enhancement of cotton production for smallholder farmers in South Af-rica. The project enlisted the support of cotton farmers in KwaZulu-Natal, Mpumalanga and Limpopo. Through this initiative, 1 060 permanent and temporary jobs were creat-edover5yearsand1905beneficiarieswereprovidedwithon-farm mentoring. Production inputs and mechanization were procured, almost 9 000 ha of cotton were planted and over R 90 million invested.

The ARC, in collaboration with Cotton SA, presented ac-credited training on cotton production to 80 farmers. The ARC has conducted registration trials on contract to test herbicideefficacyandstackedtraitcottononnon-targetor-ganisms. The ARC is responsible for the cotton germplasm genebank, consisting of more than 1 758 cotton cultivars, and over 500 accessions were rejuvenated since 2015. Through the breeding Programme, the ARC has developed and registered three cotton varieties for verticillium wilt and jassid (leafhopper) tolerance. The ARC has also evaluat-edtheperformanceofdifferentcottonvarietiesindifferentareas across South Africa for cultivar recommendations. A cotton production guide was developed to assist farmers in best cultivation practices and the most suitable planting date for cotton. Furthermore, the ARC has conducted re-search on alternative management of nematodes, insect pests and diseases on cotton.

The ARC provides analytical services for cotton farmers on soil, water, plant, nematode and disease diagnostics. The ARC has been the Secretariat of the Southern and Eastern Cotton Forum (SEACF) for over 10 years and responsible for coordinating the biennial meeting within the SADC re-gion. The main purpose of the forum is for each country to present the cotton research results and promote cotton production through collaborative research and technology transfer. In the past five years, theARCorganized andcoordinated the SEACF Meeting in Mozambique (2014), Brazil (2016), and Zimbabwe (2018).

In 2017, the ARC conducted a survey to evaluate farmers’ knowledge and perceptions on cotton production and pest management challenges to develop an efficient integrat-ed pest management Programme for cotton production. In 2018 and 2019, the ARC participated in the Internation-al Cotton Advisory Committee Research Associate Pro-gramme and presented the country report.

The Programme created a platform to engage on how to improve cotton production and enable opportunities for networking. With cotton emerging as one of the highly prioritised crops in the current Agriculture and Agro-pro-cessing Master Plan, the ARC promises to be well placed to provide the R&D support, given its massive germplasm collection and expertise.

Cotton smallholders who completed the accredited

training at Nokaneng.

Exploring alternative starch for SA - a case for cassava

Cassava is an attractive crop for exploitation by smallhold-er farmers, being a hardy and drought tolerant plant where 30-40 tons/ha yield can be achieved under rain-fed condi-tions. It can be grown on soils with a low nutrient capaci-ty, but responds well to irrigation and fertilizer application. The starch derived from cassava is higher than that of food crops currently being grown by small scale and commercial farmers. Cassava has the potential to serve as a source of industrial starch and as a food crop. This can address problems of food security, poverty alleviation and job cre-ation, especially in rural communities. Cassava is grown on a relatively small scale in South Africa as a staple food crop and an industrial crop, mainly for starch extraction. Climatic conditions within SA mainly limit cassava produc-tion to the more subtropical regions of Limpopo, Mpuma-langa and KwaZulu-Natal provinces. The potential of cas-sava as a food, animal feed and industrial crop has yet to be fully exploited in SA. The ARC initiated a Programme to enhance the production potential of cassava in South Africa through breeding and agronomical studies. The Pro-gramme is aimed at the utilization of cassava as both a food crop as well as for industrial purposes, especially for starch production. This Programme has already attracted strong interest from other role players such as smallhold-ers and non-governmental organisations (NGOs).

The Technological Innovation Agency (TIA) funded a cas-sava project with a holistic value chain approach in trans-ferring relevant and appropriate technologies to rural smallholder farmers. This is one of the critical success fac-tors of sustainable technology adoption for rural economic development and improved livelihoods. The key driver for sustainable socio-economic impact in rural settings will be linking these producers to markets. Sixteen cassava trials havesofarbeenplantedinfarmers’fieldsinMpumalanga,Limpopo and KwaZulu-Natal to evaluate starch production potential from selected lines imported from various coun-tries abroad. Outstanding lines were recognised in two tri-als harvested and included for further evaluation.


Theaimistoreleasethebestlinesidentifiedinthesetri-als for each of the provinces. An important aim of this re-search is to reduce market failure risks to enable 3rd party development and commercial funders to commercialise the production of industrial starch and create sustainable jobs. Data generated during this study is being used to develop a bankable feasibility study on cassava production in South Africa.

Cassava is sensitive to frost and seedlings require protection before planting in a frost free area.

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Programme 1: Crop Production, Improvementand Protection

arc supporT For The cannaBIs IndusTry

The ARC pioneering research on Cannabis breeding and production in South Africa began more than 20 years ago through engagement with stakeholders from both the pri-vate and public sectors, as well as farmers interested in cultivating the crop. This research resulted in the develop-ment of two new cultivars (‘SA Hemp 1’ and ‘SA Hemp 2’), which are locally-adapted to South African conditions, and are in the process of being registered. The ARC Cannabis Research, Development and Innovation (RDI) Programme has been expanded to include the medicinal Cannabis val-ue chain, given the emerging global and national outlook. Across the value chain, the Cannabis sector has major potential for domestic and foreign investment (through pri-mary production and exports), small and medium-sized en-terprise development, job creation and income generation, as well as value addition (though processing and product development). The ARC is a key stakeholder in the govern-ment’s inter-ministerial Cannabis working group and minis-terial advisory committee. It is expected to play a key role in the seed supply systems, the producer support systems, manufacturing, product development and marketing, as well as RDI for the South African cannabis industry.

A rich and expanding Cannabis germplasm collection with varying cannabinoids is being maintained for the Cannabis breeding Programme. Analytical laboratories with state-of-art equipment and trained personnel for quality assurance testing have been set up in the ARC to support the growth of the industry through the provision of analytical services.

Cannabis plants at one of the ARC experimental sites.

research To Increase coTTon and ToBacco proFITaBIlITy

Cottonconstitutesover70%ofnaturalfibreandover40%ofallfibreprocessedinSouthAfrica.Theindustryhasap-proximately 150 commercial farmers and more than 1 300 smallholder farmers, who farm roughly 5 000 hectares on 2-5 hectare plots. Recently, the production has increased by 67% and 171% for dryland and irrigation plantings, re-spectively.However,cottonproductionisseverelyaffectedby poor yields and pest attacks. The ARC conducted re-search, funded by Cotton SA, on heat stress and on the management of nematodes and insect pests on cotton. The genotype DP393 was found to be heat stress-tolerant and it will be recommended to farmers who cultivate dry-land cotton, thus increasing their yields and income gener-ation. Very few nematicides are registered for the control of root-knot nematodes. A combination of two registered products was shown to reduce root-knot nematodes and was recommended to cotton farmers in the Northern Cape. Seed cotton yield increased by 28%, from 5 205kg/ha to 7 215kg/ha, and with 2000 ha being cultivated, this equates toanadditionalincomeofR28140000atR7/kg.Differentbiopesticides were evaluated against the African bollworm on cotton, and Bolldex® gave the best control, increasing yields by 31% for smallholder farmers, from 4 423kg/ha to 6 402kg/ha, earning an extra R13 853/ha at R7/kg. The tobacco industry contributes more than R12 billion per an-num to the country’s economy. The industry supports about 186 commercial farmers, producing approximately 16 300 tons of tobacco, employing almost 10 000 farmworkers. To-bacco is susceptible to various diseases that can cause se-vere losses. Black shank, caused by a soil-borne fungus, can cause up to 100% yield losses, while angular leaf spot, a bacterial disease, and tobacco mosaic virus (TMV) can result in yield loses of up to 10% and 20%, respectively.


TheARC evaluated 12 flue-cured and 11 dark air-curedadvanced breeding lines for disease tolerance. All flue-cured and air-cured lines expressed high tolerance to black shank and angular leaf spot disease, while 6 flue-curedand 8 air-cured lines were tolerant to TMV. The research-ersidentified3flue-curedand3air-curedlinesthatcouldbe registered as higher yielding, disease tolerant cultivars.

Black shank tolerance evaluation trial. Wilting and dying plants

are breeding lines that are susceptible to the disease.

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JOURNAL ARTICLES

Malinga, L.N. 2017. Evaluation of Plant Extracts for the Control of Helicoverpa Armigera, Diapropsis Castanea and Earias insulana in Cotton for Small-scale Farmers. Cotton Research Journal (Journal of the Indian Society for Cotton Improvement) 8(1):12-19.

Malinga, L.N. 2019. Southern and Eastern African Cotton Forum: Platform for the advancement of cotton production in Africa. South African Journal of Science 115(9/10):6-8 https://doi.org/10.17159/sajs.2019/6359.

Van der Westhuizen, M.M. 2018. Preliminary retting re-searchondifferentkenafcultivars.South African Journal of Plant and Soil 17:229-231 https//doi.org/10.1080/02571862.2018.1536931.


ARC-IMPACT AND PARTNERSHIPS

The ARC-Impact and Partnership (ARC-IP) Division predom-inantly supports Strategic Goals 5 and 6. Goal 5 focuses on the translation of research outputs in order to generate knowl-edge, facilitate decision-making and contribute to the transfor-mation in the agriculture sector, whilst Goal 6 is about apply-ing the best resource management practices towards a high performing and visible organisation. Dedicated Programmes of responsibility for the Division include:

The Agricultural Economics (AE) unit conducts research to establish the impact of ARC Programmes (return on in-vestment), and integrates socio-economic analysis in ARC projects.Itspecificallydealswithmarketintelligence;impactassessment;BusinessPlans;policystudies,farmerprofilingand baseline studies.

Commercialisation‘s role is to ensure that R&D outputs are identified,protectedandcommercialised.

Biometrical Services provides a statistical service that ren-ders a quality audit of scientific information disseminated.Services include statistical planning, analysis and interpreta-tionofresults,statisticaltrainingandassistancewithscientificpublications.

International Relations (IR) pursues and maintains interna-tional partnerships to enhance the organisation’s internation-al credibility by promoting its capabilities and image among global role players. This is done through leveraging and main-taining strategic partnerships and engagements. In the past 5 years, the IR Unit has been operating outside the IP Pro-gramme, and due to the crosscutting nature of the unit it was thought prudent to align the IR Initiatives with those of ARC-IP.

Marketing and Communications develops and implements strategiestoraisetheorganisation’sprofileandvisibility,andimprove internal communications in order to foster a strong and positive ARC brand.

Smallholder Agricultural Development entails extension support; diagnostic and analytical services; targeted develop-ment initiatives; and farming systems research.

Strategic Information Management targets reliable data capture, storage and usage related to monitoring and eval-uation of R&D interventions. SIM targets data essential for economic research, specifically related to land and farmerassessment.

Training and Extension provides training and information services to farmers and support services, facilitating access to ARC technical information to contribute to sector produc-tivity, especially from smallholder farmers. The unit operates fromARC-CentralOffice inPretoria, butworks strategicallyacross the organisation, with all Campuses spread across the country.


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International Relations (IR)

The last 5 years has seen the ARC developing the IR StrategicPlanin2016toguideitseffortsinpursuingnewstrategic partnerships and revitalizing existing ones. In en-hancing regional collaboration in Africa, the ARC continues to work closely with continental institutions such as Forum for Agricultural Research in Africa (FARA) and Centre for Coordination of Agricultural Research and Development for Southern Africa (CCARDESA). In this period, the ARC strengthened partnerships with various research and de-velopment institutions and role-players in the world. In par-ticular, the ARC formalised institutional-led partnerships with:

(a) Wageningen University and Research (WUR), Nether-lands in March 2017 through a MoU covering the following areas of collaboration: livestock breeding and genomics, new vaccine development for animal health, crop breed-ing and genomics, crop protection, genome engineering, climate smart, sustainable and precision agriculture, nutri-tion security, agricultural economics, and capacity develop-ment and training. The partnership allowed collaboration in a number of joint projects;

(b) Indian Council of Agricultural Research (ICAR) in July 2018 through a MoU covering the following areas of col-laboration: exchange of scientists and technologists, ex-change of germplasm and breeding material, exchange of scientificliteratureinformationandmethodology,exchangeof scientific equipment, development and carrying out ofcollaborative research projects;

Signing ceremony for the MoU between the ARC and ICAR

during the margin of BRICS Summit in South Africa, July 2018 .

(c) TheARC-EA has in the past five years developed acollaborative partnership with the University of Arkansas, through Prof Lanier Nalley who is a notable researcher in analysing theeconomicbenefitsofpublic investments incrop breeding Programmes. Under the collaboration, there have been studies conducted to assess economic bene-fitsofARCWheatandGMMaizeBreedingProgrammes,

and some exploratory work on dryland rice production in South Africa. Prof Nalley delivered 3 seminars in the past fiveyearswhichincluded“Benefits of genetically modified (GM) maize breeding in South Africa” and “Benefits of pub-lic wheat breeding Programmes”; and

(d) African Union - European Union partnership - In the last fiveyears,theARChasbeenamongsttheleadingAfricanpartners participating in AU-EU projects for implemented the “Roadmap towards a jointly funded EU-Africa Re-search & Innovation Partnership on FNSSA”, which was adoptedbytheHighLevelPolicyDialogueSeniorOfficialsMeeting in Addis Ababa in April 2016. From 2014-2016, the ARC worked with University of Lisbon (UL) to co-lead Work package 5 of the PROIntensAfrica project which had 23 partners from Europe and Africa. Work package 5 was successfullyimplementedandafinalreportentitled“Gov-ernance Mechanisms For Africa-European Union Partner-ships In Agricultural Research And Innovation: Lessons And Strategic Options For Intensafrica” submitted in No-vember 2016.

Impact of the Intellectual Property Management and Commercialisation (IPM & Comm) Division within the ARC

In the past financial period, the IPM & Comm Divisionwere merged to ensure efficiency for the managementand commercialisation of ARC R&D outputs. The role of the Division is to ensure that ARC R&D outputs are iden-tified,protectedandcommercialised.Whilecommercialis-ing IP,compliance todifferent legislation isalsokey.Forthefirst time,after themerge, the IPM&CommDivisionattended the Innovation Bridge 2017 with the Marketing and Communications team. The event was hosted for the second time by NIPMO/DST. The ARC technologies were showcased and the ARC claimed the best exhibit. Subsequently, Tshwane Economic Development Agen-cy funded the ARC Licensee to attend HortiContact - Horticulture Business Expo Gorichem in Netherlands to seek licensees and commercialisation of the Lache-nalia project which was previously funded by the Inno-vation Hub. Currently, the material is under evaluation for commercialisation by a Company in the Netherlands. The Division continued to strive to promote the ARC tech-nologies by encouraging and supporting participation of differentcompetitionsforthepurposesofpromotingARCARC technologies. The ARC team entered the 2018 GAP Innovation competition and won the second prize for the Gauteng Accelerator Programme (GAP) Biosciences Awards for Morogo Bread.

The ARC Team and the mentor at the GAP Award

ceremony in 2018.


In 2019, the Division supported teams from the ARC for the matchmaking event, which was hosted by Technolo-gy Innovation Agency and sponsors. The ARC Elisa-kits were matched with Capebio (Pty) Ltd for commercialisa-tion of the technology. The Unit continued to show-case ARC technologies through marketing at the ARC second attendance of the Innovation Bridge 2019 which happens bi-annually.

ARC Elisa-kit matchmaking.

ARC attendance of the Innovation Bridge 2019.

After many years of research & development carried out by researchers, the IPM & Comm ensures that the outputs are commercialised. Some of the technologies developed by the ARC are Indigenous Knowledge. In line with the DTIC and DEFF, the IPM & Comm ensures that any Indig-enous material commercialised is in line with the NEMBA Act Nagoya Protocol. Two of ARC licensees have received Bioprospecting Permits for the commercialisation of the technologies. One of the licensee and collaborator with the ARC, Murdoch University unveiled the indigenous legume Lebeckia ambigua variety ‘Isanti’ in September 2019. The Hon. Minister Alannah Joan Geraldine MacTiernan, Minis-ter for Regional development; Agriculture and Food; Ports; Minister assisting the Minister for State development, Jobs and Trade unveiled the variety name ‘Isanti’ meaning sand. The unveiling was followed by amongst others radio inter-views, publications in the media and site visits to follow-up on the work that started in 2006.

Unveiling the variety name ‘Isanti’.

Field trip after the unveiling at the variety ‘Isanti’.

Breaking new ground: ARC-Economic Analysis Unit, 2015-2020

The story of the Economic Analysis Unit from 2015-2020 shows that the Unit has grown from a small unrecognized unit, to being recognized as an essential collaborative part-nerbytheARC,andoutsideoftheARCinthefieldofag-ricultural economics. There is now no doubt that the ARC has research capacity in agricultural economics, and it is a CentreofExcellenceforresearchinthefieldof“economicsof agricultural research and development”. In 2014/15 the unit reported two publications, but by 2019/20 had man-agedtoincreasethisoutputbymorethanfive-fold.Thisisdespite having a small research team, and few PDP stu-dents. The unit has also made it their mission to convert research findings into popular articles and brochures inorder to reach the wider audience. Amongst the most re-markableachievementsoftheUnitinthelastfiveyearsisthe ongoing work on impact assessment for crop breeding Programmesandinanimalhealthfields:

a) Breaking into animal health economics in South Af-rica. The Unit worked with the Human Sciences Research Council (HSRC) to integrate socio-economic analysis and gender into the International Development Research Cen-tre (IDRC) funded ‘Novel livestock vaccines for viral dis-eases in Africa towards improved food security’. Outputs includedground-breakingstudiesoncost-benefitanalysisstudy of investment in a multivalent vaccine, smallholder farmer willingness to pay for livestock vaccines, and farmer knowledge, attitudes and practices towards animal health. Since 2018, the unit was involved in a number of interna-tional collaborative projects integrating socio-economic analysis in livestock vaccine research. This is an area of study where no other agricultural economists are working in South Africa; and

b) Ongoing impact studies to illustrate the importance of public investment in R&D. The Unit completed stud-ies on the impact of several ARC breeding Programmes including Wheat, Peach and Nectarines, Table Grapes, Pears and the National Beef Cattle improvement Scheme. The impact studies were conducted in collaboration with external partners, and the high quality of the research is illustrated by the fact that most of these studies have been published in peer-reviewed journals. The work of the ARC in this area culminated in the publication of a special issue of the Agrekon Journal on ‘measuring productivity growth in South African agriculture’ in 2018/19.


The Division has been able to develop capacity, and es-tablish itself as an important partner working with Universi-ties of Pretoria, Limpopo and Fort Hare through the Centre of Collaboration on Economics of Agricultural R&D. In the last three years (2017-2019), 29 conference papers were presented, 15 workshops and colloquia were organized, and 15 students (3 PhD, 12 MSc) were graduated. ARC staffandstudentsreceivedawardsforbestposter(2017),best conference paper submitted (2018), second best MSc thesis (2019) at the annual conferences of the Agricultur-al Economics Association of South Africa (AEASA) annual conferences.

Members of the Centre of Collaboration.

Brochures from competed impact studies.

Innovative research instrument for measuring farmer willingness to pay for livestock vaccines.

Training and Advisory Services adds value to our Farmers and Extension Practitioners

In May 2018, the ARC launched the ARC Hub Mobile Ap-plication as an effort to support sustainable agriculture.The Hub is an advisory services application to support and enhance on-farm decision-making processes. To-date the application boasts over 3500 Farmers and Extension Prac-titioners as users with direct support and access to ARC experts. The Hub effectively responds to technical ele-mentsofvaluechainsasreflectedinARCresearchareas.These include R&D on vegetables and ornamental crops, deciduous fruit, tropical and sub-tropical crops, grain and industrial crops, soil climate and water, plant protection, veterinary science, agricultural engineering as well as animal production. The app also provides information on ARC training Programmes in which farmers can participate as well as books that can be purchased. Through the app farmers and experts can share early warning information to improve risk management in the sector. The ARC Hub im-provesthedeliveryofsuchinformationinacost-effective,concise and user friendly form at the comfort of the user’s device. The Hub is supported by ARC expertise, updating agro-enterprise support information and addressing que-ries. The Hub makes it possible for users to easily access information and interact with experts for technical advise andsupport.Theappeffectivelyprovidesavirtualplatformfor researchers, advisory services’ practitioners and farm-ers to interact and learn from one another. Users are ad-vised to register themselves to allow the ARC to improve support by sharing relevant information, guided by the user profiles.More developmentwork to improve and updatethe application continues in line with user needs. The ARC acknowledges financial support from the Department ofScience and Innovation (Chief Directorate: Innovation for Inclusive Development) for the development of the Hub as well as collaborating developers from mLab Southern Afri-ca. Users can access the ARC Hub app from the Google Play Store as well as the Apple App Store. It is also acces-sible through the web on www.archub.agric.za.


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InTernaTIonal relaTIons

During the 2019/20 period, the ARC strengthened partner-ships with various research and development institutions and role-players in the world:

(a) Agroscope in Switzerland, in June 2019, through a MoU covering: economic modelling to support smallhold-er farmers and value addition to small enterprises, climate monitoring and modelling related with farming systems, in-tegrated pest management and biocontrol, developing sus-tainable plant production systems, forages and rangeland utilisation and management, collaboration at international forums/projects, and exchange of scientists in the context of joint projects. A number of research collaborative proj-ects are being explored;

Signing ceremony for the MoU between the ARC

and Agroscope in Switzerland, June 2019.

(b) Institute of Plant Genetic Resources (IPGR) in Bulgaria in July 2019 through a MoU covering conservation and use of local and traditional plant genetic resources, fieldandvegetable crops, ornamental and medicinal plants, plant protection,exchangeofacademicandtechnicalstaff,ca-pacity building and training programmes. A number of re-search collaborative projects are being explored;

(c) The United States Department of Agriculture-Agricul-tural Research Service (USDA-ARS) in November 2019 through the renewal of a MoU covering crop protection and biological control, plant production, breeding and genetic improvement, food quality and safety, animal production and genetic improvement, animal health and zoonotic diseases control, germplasm exchange and collections, capacity building and training, exchange students and sci-entists, technology transfer, biosecurity and biosafety and exploring the virtual laboratory approach. A number of re-search collaborative projects are ongoing;

(d) Council for Agricultural Research and Economics (CREA) in Italy in December 2019 through a MoU cov-ering crop and animal agriculture, food nutrition, safety and security, agro-processing, aquaculture, agro-forestry, agro-climate monitoring, biotechnology, economics, and capacity building;

Signing ceremony for the MoU between the ARC and CREA in South Africa, December 2019.

The ARC and CREA in collaboration with the Italian Embas-sy in South Africa organized two joint events to expand the collaboration in the related thematic areas namely, “South African & Italian Wine Research Innovations: Current sta-tus & future prospects” on 18-19 November 2019, inclusive of the wine tasting on the 22 November 2019 at the Piazza Montecasino, and, Social and Economic Drivers in the Ag-ricultural and Rural Sector to Promote Sustainable Local Development” on 2-4 December 2019.

Participants attended the “South African and Italian Wine

Research Innovations” event on 18 November 2019.

The research demonstration/wine tasting event on the

22 November 2019 at the Piazza Montecasino.


Participants attended the “Social and Economic Drivers in the Agricultural and Rural Sector to Promote Sustainable

Local Development” event on 2 December 2019.

(e) Indian Council of Agricultural Research (ICAR) in Feb-ruary 2020 through a joint work plan. The ARC and ICAR negotiated and signed a work plan for implementation of the MoU. The work plan focused on exchange visits for students and scientists for collaborative research in fruits, vegetablesandfloricultureandcapacitybuildingduringthe2020-2021 period; and

(f) African Union - European Union partnership - Since Oc-tober2018, theARC, through theOfficeof theCEOandthe Impacts and Partnership Division has been involved in a new Coordination and Support Action Project the Long-term Europe-Africa Partnership for Food and Nutrition Se-curity, and Sustainable Agriculture (LEAP4FNSSA). The project which will run until 2022, comprises 20 European partners and 15 African partners. The ARC, together with Swedish University of Agricultural Sciences (SLU), are co-leading Work package 3 Information Generation and Knowledge Management. The ARC is also co-leading task 3.2 of the work package and working with CIRAD, Hun-garian Szent István University (SIU) and other partners to develop a Knowledge Management System (KMS), which will provide a tool to aid decision making by various stake-holders. In 2019, the ARC successfully hosted an interna-tional expert workshop to identify the needs of the HLPD and resources required for developing the KMS.

LEAP4FNSSA Project Workshop Participants, 30 September to 2 October 2019, Pretoria.


evaluaTIon oF The pro-acTIve land acquIsITIon sTraTegy (plas) - The deparTmenT oF rural developmenT and land

reForm’s (drdlr) land redIsTrIBuTIon programme

TheARCwasresponsibleforacomprehensive,scientificevaluation of roughly 2000 PLAS farms. The project ran from June 2017 to August 2019. The ARC team devel-oped a tailor-made analytical toolkit to conduct the study and compiled individual farm reports, provincial reports and an overarching national report. The brief was to estab-lish potential and current performance on all PLAS farms, provide recommendations for improved productivity and provide guidance for land reform policy and implementa-tion.TheARCdevelopedastepwisescientificapproach,based on evaluation by a panel of experts, resulting from an iterative, participatory research process. The approach entails a scoring mechanism, using on-farm survey and geo-spatial natural resource data, ensuring a high level of objectivity. The panel evaluates agro-ecological potential, suitable commodities and resulting farm viability, integrat-ing sustainability, productivity and marketing aspects. The methodology delivers a visual, easy to interpret; sequen-tial analysis that facilitates informed decision-making. The survey tool used to collect on farm data is also an ARC invention. The trans-disciplinary team of roughly 25 ARC researchers included commodity specialists, agricultural economists, land use planning, GIS experts, and soil sci-entists. PLAS farms were categorised in terms of potential, risks and limitations are specified and recommendationsprovided. The PLAS analysis established huge variability in agro-ecological capability and conditions, farm size, farmer capabilityandperformance, currentlynot sufficiently rec-ognisedinagriculturalpolicy.Beneficiaryselectionneedsattentionandmorediversifiedpost-settlementsupportsys-tems are required. Performance of most PLAS farms was not in line with potential indicating that the PLAS is current-ly not having the desired impact. Sound M&E of the land reform process in South Africa would improve its impact, as poorly targeted support is often the result of a lack of deci-sion support information. Apart from the reports, the results werepresentedatall,thethen,provincialDRDLRofficesas well as to, the then, national DRDLR management in PretoriainAugust2019.Therefinedtoolkit issuitableforanalysis of agricultural development. It can establish the potential of farmland, performance on the land, capacity and performance of the farmer and the issues that lim-it success. It presents a novel monitoring and evaluation methodology to determine the viability of an agricultural de-velopment initiative. The toolkit was reviewed extensively with academic stakeholders both locally and internation-ally. It isdeemedan importantcontribution to thefieldofscientificM&Eandapaperdescribing theapproachhasbeen submitted to an international journal for publication.



sTrengThenIng FacIlITaTIon skIlls oF The norTh wesT Through exTensIon BIg FIve TraInIng

Governmentofficials responsible forprovidingsupport tobeneficiariesofagrarianandlandreformshouldhavetherelevantskillstoensureeffectiveservicedelivery.Oneofthe ARC strategic mandates is to drive technology devel-opment and transfer (dissemination), in order to, amongst others, facilitate sector skills development and knowledge management and the training of extension practitioners (EPs) is one initiative towards achievement of this man-date.

Active participation by extension advisers during training.

The “Extension Big-Five” (EBF) training is a skills Pro-grammeand isoffered toequipEPs tohelp improve ru-ral livelihoods and economic growth. The North West and Limpopo Provincial Agriculture departments enrolled their extension advisors to be trained by ARC between during 2014-2016 (Limpopo) and 2017-2019 (North West), re-spectively. The course has five modules namely; Rhino(situational analysis), Lion (farm economics), Elephant (in-terpersonal communication and behavioural change), Buf-falo (facilitation and group dynamics) and Leopard (exten-sion and project management).Atotalof280officialsweretrained in groups of maximum 30 people at a time, in a stag-gered fashion. These smaller groups were key to running participatory and facilitative classes. To foster and enhance a pro-active learning attitude, interactive methods such as; group discussion, visualization, brainstorming, participants’ presentations and plenary discussions were used to en-hance learning and ensure thorough understanding of the concepts. Lectures were also presented, but the trainers asked questions to ensure dialogue, rather than a one-way process. The approach allowed participants to engage with each other and with the trainers, exchanging knowledge and ideas. Staggering the training helped in the assimila-tion of concepts covered in manageable chunks. Breaks between the modules were used to apply concepts in real farmer support situation. The training helped extensionists to develop and practice a client and performance-orient-edattitudeforaresponsiveandeffectiveservicedelivery.TheEBFprogrammehelpedtheofficialstrainedtoexplorethe trends, approaches, and new tools to best address the myriad of challenges faced in the agricultural sector.

arc TraInIng makIng InTernaTIonal FooTprInTs

The ARC of South Africa, in collaboration with the Wagen-ingen Centre for Development Innovation (WCDI) of the Wageningen University and Research (WUR) in the Neth-erlands, jointly organized the 2019 Local Economic Devel-opment (LED) course. This course was aimed at assisting practitioners from development organisations, to design strategies that can catalyse rural economies through small-holder farmers inclusion and job creation. In partnership with WUR, 30 international delegates received Local Eco-nomic Development training. The 30 delegates were from; Albania, Bangladesh, Burkina Faso, Côte d’Ivoire, Colom-bia, Egypt, Georgia, Ghana, Indonesia, Kenya, Lebanon, Myanmar, Mozambique, Philippines, Sudan, Sierra Leone, Somalia, South Africa, United Republic of Tanzania, Viet-nam, Zambia, Zimbabwe.

Participants who attended the Local Economic

Development training.

Aspartofthetraining,theARCofferedawordofwelcometotheinternationaltraineesandtrainingstaff.Twostaffofthe Impact & Partnerships Division team also covered the two sessions, namely; Stakeholder Analysis, Role of Ap-plied Research in LED: ARC Approach and Results. One training Coordinator also provided back stopping services during the entire period of the course. ___________________________________________________



JOURNAL ARTICLES

Chisadza, B., Mushunje, A., Nhundu, K. & Phiri, E.E. 2020. Opportunities and challenges for seasonal climate forecasts to more effectively assist smallholder farmingdecisions. South Africa Journal of Science https://doi.org/10.17159/sajs.

Ferreira, M.I., Reinhardt, C.M., Van Der Rijst, M., Marais, A. & Botha, A. 2019. Pot leachates from wheat and rye-grass hybrid type affect the growth and composition ofmicrobial communities in the soil. International Journal of Agriculture, Environment and Bioresearch 4 (06):139-155.


Kau, J.S., Mahlangu, S. & Maku, M. 2019. Strengths, Weaknesses, Opportunities and Threats (SWOT) analy-ses for multiple extension services in the high value crop Programme: insight for pluralistic extension policy. South African Journal of Agricultural Extension 47(3):32-45.

Maka, L., Ighodaro, I.D. & Ngcobo-Ngotho, G.P.T. 2019. Capacity development for scaling up Climate-Smart Agri-culture (CSA) innovations: agricultural extension’s role in mitigatingclimatechangeeffectsinGqumashecommuni-ty, Eastern Cape, South Africa. South African Journal of Agricultural Extension. 47 (1):2019: 45-53. http://dx.doi.org/10.17159/2413-3221/2019/v47n1a488.

Nodayizana, A., Mushunje, A. & Akinyemi, BE. 2019. Gen-derAnalysis of theEffects ofAgriculturalAssets and In-come on Rural Household’s Food Security in South Africa: A Systematic Review. International Journal of Economic Research 16(1): 235-242.

Shoko, R. R., Chaminuka, P. & Belete, A. 2019. Maize yield sensitivity to climate variability in South Africa: Application of the ARDL-ECM approach. Journal of Agribusiness and Rural Development 4(54):363-371.


Masters Mazwane, S. 2019. Economic returns of the Agricultural Research Council’s Table Grape Cultivar Development Programme in South Africa. Master of Science (Agricultural Economics), University of Pretoria.

Nodayizana, A. 2019.EffectsofAgriculturalassestown-ership on rural household‘s food security and welfare in South Africa: A gender perspective. Master of Science (Ag-ricultural Economics), University of Fort Hare.

Rasweswe, P.C. 2019. Economic Evaluation of the Agri-cultural Research Council’s Pear-Breeding Programme (1990-2016). Master of Science (Agricultural Economics), University of Limpopo. CHAPTERS IN BOOKS

Linjordet, W., Rodriguez, D.C.P., Tesfai, M., Prestvik, A.S., Modiselle, S., Magama, P. & Moeletsi, M. 2020. Promot-ing sustainable biogas technology development through in-tegrated food and energy systems. ISBN 9780429320651. 1st Edition, Chapter 10, pp. 288.

Mkhabela, T. 2019. Land reform and land tenure for agricul-tural transformation in Southern Africa. In: handbook Trans-forming Agriculture in Southern Africa. Constraints, Tech-nologies, Policies and Processes. ISBN 9780429401701. 1st Edition, Chapter 24, pp. 215-222.

Mkhabela, T. 2019. Urban markets and agricultural trans-formation in Southern Africa. In: handbook Transforming Agriculture in Southern Africa. Constraints, Technologies, Policies and Processes. ISBN 9780429401701. 1st Edition, Chapter 27, pp. 242-249.


Ramafoko, L.P., Luvhengo, U., Lekunze, J.N & Mahlangu, S.A. 2019. The Impact of Farm Workers Strike on Wine Production and Export in South Africa: An Error Correction Model (ECM) Analysis. Proceedings of 3rd International Conference on Food and Agricultural Economics 25-26th

April 2019, Alanya, Turkey. pp. 323-334


INFORMATION AND COMMUNICATION TECHNOLOGY & INFRASTRUCTURE

The main focus for the past 5 years for the ARC-Information and Communication Technology (ARC-ICT) Division in line with the Vision 2050 was:

1. Stabilisation: changing our approach to de-signing and implementing new ICT solutions by adopting a holistic and longterm approach and prioritising selected capabilities and ensur-ing ongoing delivery of reliable ICT services;

2. Optimisation/enabling innovation readiness: preparing the organisation to take advantage of the latest technological advancements by develop-ing strong expertise in facilitating rapid and iterative change, providing secure and flexible integration,and supporting efficient and effective automation;

3. Digital Transformation: to provide reliable plat-form for Agri-Tech solutions, we need to improve the way we manage our investment in ICT services by creating a more sustainable ICT services, im-proving our partnership with government, indus-try and service providers, and being smarter in the way we engage with business areas. This includes adopting a bi-modal approach, also known as two-speed IT, towards adopting digital transformation;

4. Human Capital: the challenges facing the or-ganisation, signal a significant change, in partic-ular with the advent of the fourth industrial revo-lution (4IR), to both the technical ecosystem and the way in which users consume ICT services.

Infrastructure Services is a property and asset man-agement business unit in the ARC-ICT & Infrastruc-ture Division, responsible for managing the ARC property portfolio, which is made up of operational (of-fice buildings and laboratories) and non-operation-al (farmlands) properties. The mandate is two-fold:

• Improving the condition of properties by introducing proper maintenance and reducing each asset’s op-erating expenses to ensure extension of asset value life; and

• Growing the portfolio through commercialisation where leases are at market value to generate in-creased revenue.

Security Services, a unit within the ARC-ICT Division, is responsible to advise, prioritize and develop security pro-grammes and systems that will assist in the reduction of se-curity incidents across ARC. The Unit strives to (i) implement projects to improve on security and ensure a safe and se-cure working environment; and (ii) reduce operational costs to ensure compliance to cost containment measures.


___________________________________________________


ICT Services

ImplemenTaTIon and enhancemenT oF commercIal sysTems/soluTIons

a) Microsoft Dynamics AX: Financial management

Aftermanyunresolvedauditissueswereidentifiedaspartof the audit improvement plan, it was decided to upgrade the previous Microsoft Dynamics AX R2 version to a sub-sequent version of Microsoft Dynamics AX 2012 R3. The rationale behind the implementation of Microsoft Dynamics AX2012R3wasmainlytostandardisetheARCfinancialmanagementbusinessprocesses,tosignificantlyminimisecustomisation in the system, and most importantly it was themost cost-effective option to address the challengespresented by Microsoft Dynamics AX R2 in the short term tominimise theaudit findings.Toaddress the limitationspresented by the standard / vanilla AX R3 system, addition-al modules were acquired as follows:

• Stock and warehouse management software; and• SALT (South African Localisation Toolkit) to manage

bank reconciliation and BEE requirements.

b) Strategic Asset Management: Fleet, Property and As-sets

ToimprovetheefficiencyinmanagingARCassets,theICTDivision, in conjunction with the Infrastructure team, imple-mented a strategic enterprise asset management solution, namely, the eXam product, which integrates with Dynamics AX R3 as an additional module. The purpose of eXam is to manage and optimise the organisation’s Assets, Fleet and Property across all divisions, facilities and business units in the ARC across all Campuses. This includes ARC pool vehicles and service planning, equipments, all ARC buildings (property and facilities) across the country, and lease agreements of greenhouses, permit management and warranty management.

c) Sage People and VIP: Human Resources Management and Payroll

The ARC is using the Sage HR and People system for payroll, Human Resources Management, leave and travel claimsfunctionality.Themainbenefitofthesystemisthatit makes provision for the ARC HR and leave policies as well as salary information. It also complies with SARS tax guidelines. Sage People is fully automated and integrated with Microsoft AX.

d) SharePoint: Collaboration

Secured collaboration workspaces through SharePoint were implemented on the Internet and the Intranet. Docu-ments regarding research projects are made available by the project owners for collaboration between project team members.

With the implementation of SharePoint, various workspac-es were put in place for support units to store all policies, forms, and other related documents for the use of ARC em-ployees.

IcT InnovaTIon and dIgITal TransFormaTIon

Over the past few years, ARC has invested in a number of digital transformation solutions and initiatives. These in-clude solutions such as the Cultivar System, Rain for Africa (R4A), the Breeding Management System (BMS), Intergis, and attending a Blockchain Hackathon, hosted by Trust SquareinSwitzerland.Thefigurebelowdepictsthevisualpresentation of the ARC digital transformation applications and initiatives. For the sake of clarity, a brief description of some of the main applications follows.

ARC Research and Development Applications.

a) Cultivar System

This is a database for deciduous fruits, which holds the information of the stone and pome fruits. The system holds information about climatic requirements of the fruit, post-harvest and harvest, as well as rootstock information. Dif-ferent cultivars are already captured on the system. The system has been designed to accommodate other fruits such as grapes, etc.

b) Rain for Africa (R4A)

AgriCloud is a mobile app for android phones that provides guidance to farmers on a selection of planting dates for maizeforaspecificlocationattheirownfarm.Thesolutionaims at providing the correct information at the right time to food producers, to help improve the quality and quantity of food production in a sustainable manner, to ensure lo-cal food security. Information from in-situ monitoring, earth observations with satellites, geo-data and modelling will be translated into agricultural advise. This is accessible via the web and mobile technologies (computers, cellular tele-phones and tablets) and facilitates higher crop yields and moreefficientuseofseed,water,pesticidesandfertilizer.

ARC AgriCloud Applications


c) Breeding Management System (BMS)

BMS is an integrated software package developed by the Integrated Breeding Platform designed to facilitate plant breeding logistics, data management, data analysis and decision support for any crop. It contains a powerful da-tabase which automatically collects and integrates data from plant breeding activities such as genealogy, inventory, characterization and evaluation. This database becomes a permanent institutional knowledge resource to monitor progress and facilitate strategic decisions.

d) Intergis

The Intergis system is a collection of databases and pro-grammes that addresses the animal recording needs of a broad spectrum of roleplayers within the livestock industry, from breeders and owners of purebred and commercial animals to the personnel of registering authorities, perfor-mance recording agencies, National and Provincial Gov-ernment agencies, advisors and consultants and related industry organisations. The DALRRD contracted the ARC to host the INTERGIS which includes the National Animal Database of South Africa that forms the backbone of the animal production industry with an unbiased approached and conformity to the animal improvement act 62 of 1998 and to ensure the integrity of the country’s animal pedigree and performance data.

e) Blockchain Hackathon

In 2019, the ARC-ICT Team participated in the Swiss Block-chain Hackathon (SBHACK19) hosted by Trust Square. The main goal of the Hackathon was to explore use cases that will solve real-world challenges. SBHACK19 presented an opportunity for the ARC to collaborate with other global industry leaders in the agriculture and food sector to share ideas on how to address challenges and leverage oppor-tunities presented by the fourth industrial revolution (4IR).

AWS (Amazon Web Services) First Prize Hackathon Winners,

ARC represented by 2 Employees.

Having partners such as Trust Square presented the ARC with more opportunities for joint technical solutions to be manifested into future models that will support the food and agriculture sector.

The MOU was signed between the ARC and Agroscope, the Swiss centre of excellence for agricultural research. AgroscopeisaffiliatedwiththeFederalOfficeforAgricul-ture (FOAG). The FOAG is the Confederation’s compe-tence centre for all core issues relating to the agricultural sector. Agroscope makes an important contribution to a sustainable agriculture and food sector as well as to an intact environment, thereby contributing to an improved quality of life.

Infrastructure Services

The core function of Infrastructure Services is to support the Research and Development mandate as well as in-come generation by implementing modernisation.

The portfolio currently has a wide variety of facilities , cat-egorisedintovacantfarmlands,experimentalfarms,officespace and residential facilities.

Delivery of the Infrastructure Services mandate contributed to the following achievements:

• Improved leases management;• Improved leases income;• Modernisation of assets; and• Services support and optimisation.

a) Leasing

The ARC as the property owner has 677 leases, 118 for commerciallandandofficespace,and559foraccommo-dation purposes. Individual campus Facilities Managers execute leasing programmes, including marketing to se-curetenantsandnegotiateleasetermsthatreflecttheARCinterests. Customary with industry norm, lease terms typi-cally range from one to three years with the option to termi-nate following a 30 day notice period. To this end, an updat-ed lease register is available on ARC Portal, planned to be in synchrony with ICT AX Programme solutions. Leasing is the cornerstone of the contribution of revenue. Evaluation of assets for market value rentals will ensure that property rental becomes self-sustainable in the long-term.

ARC-SCW Building.


b) Property Management

The respective campus Facilities Managers are striving to retain high levels of occupancy and tenant satisfaction amidst the derelict state properties. This is due to a dwin-dling maintenance budget and competition of priorities when designing funding allocation. The maintenance costs far exceed revenue collected for rental, thus rendering the operational costs for assets/property maintenance costly.

c) Energy Sustainability

The ARC-wide Programme aims to reduce energy reliance on the conventional supply by the local municipality and otherenergy-regulatedentities.ThiswillfurtherbenefittheARC in terms of managing energy consumption through sustainable operations. Each campus is required to budget fortheexpenseintheupcomingfinancialyear.

Electricity Pylons. The ARC is currently reducing reliance

on conventional energy supply by implementing more sustainable energy solutions.

d) Operational Risk

The ARC facilities are operated using a high number of in-sourced personnel, which means operational cost is higher than if a third-party service provider/s rendered the facili-ties management operations.

TheICT-integratedanddigitally-enabledsolutionsofferinghelped to enhance value from the overall facilities and op-erations on vulnerable services such as health and safe-tyandfleetmanagement.ThishasenabledtheFacilitiesManagers to identify operational risks and prepare suitable mitigation accordingly.

Security Services

Inthefinancialyear2018/19integrationofsecuritysystemsat ARC-AP facilitated monitoring of the electronic system from one central point at the campus. The impact of this projectmaterialisedinthe2019/20financialyearwherebyacostreductioninthenumberofsecurityofficerstoaval-ue of R93 000.00 p/m (i.e. savings of R3 348 000.00 for a 36monthperiod)resultedinareductionoffive(5)securityguards for the current security tender.

Inthe2017/2018financialyear,theARCsignedasecuri-ty-guarding contract amounting to roughly R56 million and in 2019/20 these costs amounted to R86 million. Operating expenditures related to security guarding costs yielded little or no decline in the number of security incidents. Security incidents related to burglary, land invasion and vandalism continued to challenge the ARC.

The biggest obstacle faced by Security Services related to budget limitations and current infrastructure problems. The ARC remained challenged by inadequate and age-ing facilities, insufficientperimeter fencesand insufficientor no lighting on the farms. Due to budgetary constraints, the implementation of proposed security programmes are fragmented over a multi-year period. Although costly at the implementation level, the costs for these projects demon-strate a good return on investment when all the systems are operational. Thus, observation of the positive impact is invariousfinancialreportingperiods.

___________________________________________________

HIGHLIGHTS FROM THE 2019/20 FINANCIAL YEAR___________________________________________________

Infrastructure Services

updaTe oF The 2019 energy managemenT projecT across The campuses

a) Energy Management - Solar panels

Forecasts for 2019/20 aimed at introducing improved and alternative energy management within all Campuses, but only managed to complete the ARC-INF-NVB Campus in the Western Cape. Various Campuses have budgeted for this rollout project on the basis that evaluation of the project at ARC-INF-NVB Campus shows the positive out-come that it is intended. The ARC-TSC Campus is next in the pipeline to implement alternative energy management, which will be staggered in a 3-year Programme beginning inthenextfinancialyear.

b) Movable Assets

Each campus has movable assets to manage, assess and verify their usefulness to the current R & D mandate. Many assets became redundant because of obsolescence, dam-ageandnolongerfitforthepurpose,thuscampusesbe-gan the disposal process.

c) Immovable Assets

The ARC fixed assets portfolio (land and buildings) iscurrently sitting at a net book value of R979 million. The current property conditions, however, many have become degraded over the years due to long-term underfunding among other reasons. (Note 18 of the Annual Financial Statements).


In January 2020, the ARC SEMPCO forum established the Task Team Turnaround led by the Infrastructure Services Unit with the following Terms of Reference:

• Toidentifyfixedassetsthatwerenolongerfitforpur-poses to fulfil theARCR&Dmandateandproviderecommendations; and

• Individual campuses to provide alternative use of the experimental farms.

To this end, the Infrastructure Services Unit has achieved the milestone on the above project jointly with the respec-tivecampuseswhichhaveidentifiedtheassetsthatarenolongerfitforthepurposeoftheARCR&Dportfolio.Approv-al and further guidance of the EMC is awaited.

Newly-installed solar panels at ARC-INF-NVB also double as shaded parking for vehicles.

Security Services

The Security Services Unit responded to the call for cost containment by revisiting costs associated with outsourced security guarding services. The Unit acknowledged the continued annual rise in the cost of outsourced guarding services while the security budget did not rise in line with this growth.

A few highlights from 2019/20 security projects entail a new security fence installed at ARC-INF-NVB to protect the Cel-lar from constant vandalism.

24-Hour security guarding services were provided to Beth-lehem (ARC-SG) as well as Hluhluwe- and Levubu Exper-imental Farms (ARC-TSC), previously unguarded farms that experienced a range of security incidents, which had anegativeeffectoncorebusiness.Campusesreportedasignificantdecreaseinthenumberofreportedsecurityin-cidents.

This was attributed directly to the deployment of an en-hanced electronic security system.

Screening services to all prospective work applicants and foreign delegate visitors were provided. The Unit created a security protocol for visits from foreign nationals.

Due to the increasing concern on security issues, the key goal of these projects was to enhance the functionality of electronic security systems at ARC-CO.

Against this backdrop, two key projects were commis-sioned and other security initiatives at the various campus-es were introduced as follows:

1. Installation of technological security systems: CCTV at ARC-CO; and

2. Improvement of Access Control systems at ARC-CO.

The project addressed all ARC stakeholders in that it aimed to ensure appropriate security measures are in place at all timesandareoperational.Benefitsof theCCTVinstalla-tion include serving as a physiological barrier to crime, use in emergency evacuation during disaster management and strike action. The use of these systems to investigate secu-rity breach incidents and recover losses incurred were due to poor performance by service providers.

This technological system placed the ARC in a stronger position, because we now have empirical evidence to sub-stantiate claims made for loss recovery. The impact is cost- savings of R18 600.00 p/m due to the reduction of one (1) securityofficeratARC-CO.


1. Introduction

2. Human Resources Oversight Statistics

PART C: HUMAN RESOURCESMANAGEMENT


4.1. INTRODUCTION

Human Resources (HR) plays a vital role in the achievement of an organisation’s overall strategic objectives and visibly illustrates that the function fully understands and supports the direction in which the organisation is moving. In essence, HR aims to capture “the people element” of what the ARC is hoping to achieve in the medium- to long-term periods by ensuring that the ARC:

• Has the right people in place, with the right mix of skills; • Employees display the right attitudes and behaviours; and • Employees are developed in the right way.

TheARCheadcountforpermanentemployeeshasbeenstableforthepast10yearsaveragingat2305,withastaffturn-overbelow5%duringthisperiod.Theheadcountreflectspermanentemployeesandexcludestemporaryandcontractproject-funded employees. There has been a drop in the number of Research Team Managers and some stable growth in the areas of Researchers and Research Technicians. The Research Support and other areas increased over the past 10 years.

4.1.1 OVERVIEW OF HR MATTERS AT THE ARC

TheARC is committed to protecting, nurturing and developing its researchers and their highly-valued scientific andacademic capacity. Development of a critical mass of research allows research leaders to emerge, in line with the trans-formation agenda. Special attention is given to developing black employees, women employees and students with the potential to become excellent researchers.

ARC recognizes that the creation of an equitable working environment, in which the dignity of all individuals is respected, and the diversity of all employees is valued, represents an essential foundation for sustainable growth and competitive advantage. Therefore, the ARC employment equity strategy is driven by compelling economic reasons and is not only the outcome of a legislative requirement.

4.1.2 SET HR PRIORITIES FOR THE YEAR UNDER REVIEW AND THE IMPACT OF THESE PRIORITIES

Succession PlanningSuccession planning is critical for an organisation such as the ARC, especially as a result of an anticipated high attrition rateduetoretirements.Thisworkisalreadyinprogresswithrespecttostaffwhowillberetiringinthenext5years.Ad-vance information is provided to line managers to aid their decision making about whether to keep, modify or abolish the postsvacatedbyfutureretirees.Itisafirststepinensuringtheorganisationplansahead.However,thedifficultyistheARCfinancialsituationandtheunpredictabilityoffunding.Successionplanningistheendgoalofeffectivelymanagingtalent and utilizing management development programmes to create talent pools, which would be prepared for more challenging opportunities in the succession pipeline.

Employee performance management The ARC has developed and implemented a performance management system that evaluates individual and team per-formance in the achievement of organisational goals. The ARC has not implemented performance bonuses in the year underreviewduetoaffordability,howevertheARCcontinuestoensureperformanceisalignedtoorganisationalgoals.During the period under review the ARC introduced the 360 degree performance management framework to middle management across the organisation.

Employee engagementsTheARCexperienceditsfirstunionstrikeduringtheyearunderreviewduetoadisputethatwasraisedoverthewagenegotiations. The dispute was resolved with the National Education, Health and Allied Workers’ Union (NEHAWU) and a cascading method of salary increases was implemented to employees within the bargaining unit, resulting in the end of strike. Employees in middle, senior and executive management did not receive salary increases during the period under review. ARC management remains committed to ensuring the ARC remains a safe and healthy environment for employ-ees to grow and prosper. The National Union of Public Service and Allied workers (NUPSAW) has been given organisa-tional rights within the ARC, increasing the numbers of active unions to 3, the others being NEHAWU and Solidarity. The ARC engages organised labour on all policies through the National Bargaining Forum.


Employee Wellness Programmes The ARC continues to support employees through the Employee Wellness Programmes. The uptake of the services remains a challenge within the organisation, however Human Resources remains committed to ensuring that employees receivethesupportthatisneededespeciallyduringdifficulttimes.EmployeeWellnessProgrammesintheARCarerap-idly transforming the nature of holistic support provided to employees to ensure risk management, occupational health, safety, productivity, safety and wellness of employees and their families.

4.1.3 POLICY DEVELOPMENT

The ARC policies are developed by management and consulted with labour through a policy development forum of the National Bargaining Forum.

4.1.4 ACHIEVEMENTS

The ARC recognizes that Human Resources Development is not only a national imperative, but a critical vehicle for the success of the organisation’s Employment Equity Policy and Plan. The ARC will continue, to invest substantially into the Training and Development of its employees within the organisation. In this regard the Professional Development Programme, Bursary Programme, Formal Training, Emerging Leadership and Internal Employee Development and Mentorship and Coaching Programme are crucial to this initiative:

• Employee Development: The ARC has invested in training and development of all employees in all areas. There has been an increase in the training spend as a percentage of total salary bill to 2% over this period;

• Mentorship and coaching: Programmes implemented, showed an increase in skills and capacity within the organisation. Post-retirement mentorship has been introduced to ensure skills transfer as the ARC has a high numberofemployeesreachingtheageofretirement,specificallyincriticalandscarceskills.Partneringwithin-ternational institutions with the view to develop Human Resources has increased; and

• Professional Development Programme (PDP): Over the last 5 years the ARC has graduated on average 20

postgraduatestudentsperannum.Therehasbeenadeliberateefforttoincreasethenumberofpostgraduatestudents, especially postdoctoral fellows through partnering with Higher Educational Institutions and other part-ners within the Agricultural Sector. The ARC is however not a degree-granting institution and all the students are registered primarily with Higher Educational Institutions, this interaction promotes the ARC drive to foster collab-oration with the academic sector.

4.1.5 CHALLENGES FACED BY THE PUBLIC ENTITY

• The ARC was faced with a union strike in the year under review;• The changing environment requires integrated talent management strategies; • Managinghighcostoflabourinadifficultfinancialsituation;• Employee motivation and retention within the current economic conditions;• A high proportion of experienced researchers are approaching retirement;• Managing relationship with labour and dealing with new entrants (new union); • Managing employee productivity within a changing environment; and• COVID-19 outbreak.

4.1.6 COVID-19 OUTBREAK

• Cancellation of all international travel, events and external meetings; • Developed COVID-19 interim HR and Working from home procedures;• Provision of personal protective equipment such as gloves and masks (at least 2 cloth masks per employee); • Increasedaccesstohandsanitisersandtemperaturescreeningimplementedatspecificentrancesandexits;• Employees received daily information providing them with guidance, advise and answers to frequently asked

questions relating to COVID-19 through wellness service provider CAREWAYS; • Employees received guidance on hand hygiene, social distancing, ways to maintain their health and what to do if

they started experiencing any of the COVID-19 symptoms; and• All premises were disinfected and deep cleaned upon return to work.


4.1.7 FUTURE HR PLANS/GOALS

• ORGANISATIONAL CULTURE AND DESIGN: Realignmentofdysfunctionalaspectsofworkflow,procedures,structures and systems, to complement current business realities/goals. Develop plans to implement the new changes assessing the current organisational climate, developing feedback mechanisms for employees on the achievement of the desired culture. Design and deliver activities to embed the desired culture into the ARC, the performance management and the structure;

• EMPLOYER BRAND: Recruitment, marketing and communication initiatives aimed at improving the ARC reputa-tion and brand both with its employees and within the sector;

• EMPLOYEE ENGAGEMENT: Consulting and negotiating with employees and developing initiatives that will result in cost reduction, loyal and motivated employees;

• CHANGE MANAGEMENT: Initiatives assisting individuals or teams to shift from a current state/situation to a desired state during the current unprecedented times of COVID-19 and technological adaptations, organisational design, new world of work hours; and

• CAPACITY DEVELOPMENT: Initiatives to grow and develop research capacity within the ARC, with advanced core and behavioural skills to grow the ARC business, leadership and management development.

4.2. HUMAN RESOURCES OVERSIGHT STATISTICS

Personnel Cost by Business Division(All payrolls, including students on 31/03/2020)

Business Division Personnel Expenditure (R’000)

Number of employees

Average personnel cost per employee (R’000)

Crop Sciences 277 525 1 186 234

Animal Sciences - including BTP 173 628 535 325

Natural Resources and Agricultural Engineering 50 815 137 371

Impact and Partnerships 19 546 28 698

Support 188 119 507 371

Professional Development Programme (PDP) 16 956 149 114

TOTAL 726 589 2 542 286

Reasons for variance from FS:The personnel expenditure includes actual remuneration package (salaries and wages) of employees as at 31 March 2020. Pension and Provident fund, employer contributions, medical aid employer contributions, car allowance and deferred compensation is included in the total remuneration package. The other additional salary costs are outlined in the Annual Financial Statements on page 207. The number reflected above for personnel expenditure excludes all terminations for the reporting period.

Core Business Divisions: Include core staff namely Researchers, Specialist Researchers, Research Team Managers, Research Technicians and Re-search Support staff being Research Support, Labourers, Artisans, Farm Personnel, Truck & Tractor Drivers.

Support Staff: Include all corporate support being HR, Finance, ICT, Facilities, Risk, Admin Support, Secretaries, Librarians, Public Relations, Messen-gers, Drivers and Office of the CEO.

Personnel Expenditure versus Total ExpenditureThe table below shows personnel expenditure as a percentage of the ARC overall expenditure, across all business divi-sions.Itshouldbenotedthatforthiscalculation,thefinancialnumberscontainedintheauditedfinancialstatementshavebeen used due its completeness and being more inclusive as it pertains to employee and organisational total expenses.

Total Expenditure across Business Division * Personnel Expenditure ** Personnel exp. as a % of total expenditure

1 277 427 958 795 041 357 62.2% * Total expenditure as per AFS (pg. 178)** Personnel Expenditure as per AFS (Employee-related cost p.178 and p.207)


Personnel cost by occupational level(All payrolls, including students on 31/03/2020)

Level Personnel Expen-diture (R’000)

% of personnel exp. to total personnel cost No. of employees Average personnel cost

per employee (R’000)Top Management (GG17 to GG19) 16 217 2% 7 2 317

Senior Management (GG14 to GG16) 28 815 4% 24 1 201

Professionalqualified(GG11toGG13) 284 798 39% 458 623

Skilled (GG8 to GG10) 220 527 30% 806 274

Semi-skilled (GG5 to GG7) 85 109 12% 406 210

Unskilled (GG3 to GG4) 91 124 13% 841 108

TOTAL 726 590 100% 2 542 286

Reasons for variance from FS:The personnel expenditure includes actual remuneration package (salaries and wages) of employees as at 31 March 2020. Pension and Provident fund, employer contributions, medical aid employer contributions, car allowance and deferred compensation is included in the total remuneration package. The other additional salary costs are outlined in the Annual Financial Statements on page 207. The number reflected above for personnel expenditure excludes all terminations for the reporting period.

Performance RewardsThe Agricultural Research Council did not pay out any bonuses during the reporting period.

Training Costs

Level Personnel Expen-diture (R’000)

Training Ex-penditure

(R’000)

Training Expen-diture as a % of Personnel Cost.

No. of employ-ees trained

Avg training cost per em-

ployee (R’000)

Top Management 16 217 44 0,23% 1 44

Senior Management 28 815 239 0,80% 3 80

Professionalqualified 284 797 311 0,09% 21 15

Skilled 220 527 1 531 0,71% 126 12

Semi-skilled 85 109 408 0,46% 24 17

Unskilled 91 124 407 0,42% 555 01

TOTAL 726 590 2 940 2% 730 4,03

Reasons for variance from FS:The personnel expenditure includes actual remuneration package (salaries and wages) of employees (Pension and Provident fund employer contribu-tion, medical aid employer contribution, car allowance and deferred compensation as at 31 March 2020. The other additional salary costs are outlined in the Annual Financial Statements on pg 207. The number reflected above for personnel expenditure excludes all terminations for the reporting period.

The total Avg training cost per employee is the Training expenditure divided by Number of employees trained.

Employment and vacancies

Business Division

2018/2019No. of Employees

(31/03/2019 - Permanent employees)

Approved vacancies for 2019/20

2019/20 Approved Posts #

2019/20 No. of Employees


2019/20 Vacancies

% of vacancies

Crop Sciences 1 118 31 1 149 1 082 67 5.8%

Animal Sciences – including BTP 566 32 598 533 65 10.9%

Natural Resources and Agricultural Engineering 112 8 120 109 11 9.2%

Impact and Partnerships 31 0 31 31 0 0%

Corporate Support (HR, Finance, ICT, Facilities, Marketing, PR, OoP, Risk, Secretaries, Admin)

460 12 472 442 30 6.3%

TOTAL 2 287 83 2 370 2 197 173 7.3%

(# employees on 31/03/2019 + approved vacancies for 2019/20)

Core Business Divisions: Include core staff namely Researchers, Specialist Researchers, Research Team Managers, Research Technicians and Re-search Support staff being Research Support, Labourers, Artisans, Farm Personnel, Truck & Tractor Drivers.

Support Staff: Include all corporate support being HR, Finance, ICT, Facilities, Risk, Admin Support, Secretaries, Librarians, Public Relations, Messen-gers, Drivers and Office of the CEO.


Level



Approved vacancies for 2019/20

2019/20 Approved Posts #



2019/20 Vacancies

% of vacancies

Top Management 8 0 8 7 1 12.5%

Senior Management 23 2 25 23 2 8%

Professionalqualified 470 33 503 441 62 12.3%

Skilled 584 25 609 571 38 6.2%

Semi-skilled 412 2 414 397 17 4.1%

Unskilled 790 21 811 758 53 6.5%

TOTAL 2 287 83 2 370 2 197 173 7.3%

(# employees on 31/03/2019 + approved vacancies for 2019/20)

The approved vacancies identified above were not filled due to unaffordability, the organisation re-prioritised critical positions to be filled. The Top Management position has been frozen and will not be filled.

Employment changesTherewasahighstaffturnoverofprofessionally-qualifiedandskilledemployeesduringthisreportingperiod.Thestaffturnoverrateforthe2019/20reportingperiodwas3.76%.Forthe2018/19financialyear,theturnoverratewas3,81%.The turnover rate for Researchers is 7.14% and 3.23% for Research Technicians.

Salary Band Employment at beginning of period Appointments Terminations Employment at end of the

period (31 March 2020)

Top Management (GG17 to GG19) 8 0 1 7

Senior Management (GG14 to GG16) 22 2 1 23

Professionalqualified(GG11toGG13) 476 9 43 441

Skilled (GG8 to GG10) 580 28 37 571

Semi-skilled (GG5 to GG7) 408 2 13 397

Unskilled (GG3 to GG4) 798 6 46 758

TOTAL (Permanent staff) 2 291 47 141 2 197TemporaryStaff 540 318 662 196TOTAL(Allstaff) 2 831 365 803 2 393

Reasons for staff leaving

Reason Number % of total number of staff leaving

Death 9 6.4%

Resignation 65 46.1%

Dismissal 3 2.1%

Retirement (Normal & Early Retirement) 53 37.6%

Ill health 8 5.7%

Expiry of contract 3 2.1%

Other 0 0%

Total 141 100%


Labour Relations: Misconduct and Disciplinary Action

Nature of disciplinary Action Number

Verbal Warning 15

Written Warning 59

Final Written warning 8

Dismissal 6

Equity Target and Employment Equity Status

Levels

MALE

MALE FOREIGNERSAfrican Coloured Indian White

Current Target Current Target Current Target Current TargetTop Management 4 4 0 0 0 0 0 0 0

Senior Management 9 11 1 1 0 0 2 4 2

Professionalqualified 94 108 10 12 4 5 105 127 29

Skilled 182 203 20 23 0 0 55 68 1

Semi-skilled 171 188 33 32 0 0 7 8 0

Unskilled 442 501 67 76 0 0 6 7 0

TOTAL PERMANENT 902 1 015 131 144 4 5 175 214 32

Levels

FEMALEFEMALE

FOREIGNERSAfrican Coloured Indian White

Current Target Current Target Current Target Current TargetTop Management 3 3 0 0 0 0 0 0 0

Senior Management 4 4 0 0 0 0 4 4 1

Professionalqualified 80 96 4 8 5 7 106 125 4

Skilled 223 151 12 14 3 5 74 86 1

Semi-skilled 111 118 24 26 0 0 51 58 0

Unskilled 210 227 31 34 0 0 2 3 0

TOTAL PERMANENT 631 599 71 82 8 12 237 276 6

LevelsDISABLED STAFF

MALE FEMALE

Current Target Current TargetTop Management 0 0 0 0

Senior Management 0 0 0 0

Professionalqualified 4 4 3 4

Skilled 1 1 0 1

Semi-skilled 1 1 0 0

Unskilled 2 4 0 1

TOTAL PERMANENT 8 10 3 6

The projections were calculated at an annual increase of 5% per occupational grouping. There has been lot of movement in terms of appointments and resignations. Some of the targets were not met due to decline in funding.

There is a decline/under-representation of disabled persons. Some of the employees are reluctant to disclose their disability status. There has been some improvement in the facilities for people with disabilities.


PART D: GOVERNANCE

1. Introduction

2. Portfolio Committees

3. Executive Authority

4. The Accounting Authority/Board

5. Risk Management

6. Internal Control Unit

7. Internal Audit And Audit Committees

8. Compliance With Laws And Regulations

9. Fraud And Corruption

10. Minimising Conflict Of Interest

11. Code Of Conduct

12. Health Safety And Evironmental Issues

13. Company/Board Secretary

14. Social Responsibility

15. Audit Committee Report

16. B-BBEE Compliance Performance Information


Corporate governance embodies processes and systems by which public entities are directed, controlled and held to ac-count. In addition to legislative requirements based on a public entity’s enabling legislation, and the Companies Act, 2008 (Act No. 71 of 2008) corporate governance with regard to public entities is applied through the precepts of the Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999) and run in tandem with the principles contained in the King Report on Corporate Governance, IV (2016).

Parliament, the Executive and the Accounting Authority of the public entity are responsible for corporate governance.

2. PORTFOLIO COMMITTEE

These were the dates where the ARC attended meetings:

Item Description Date Attended

1 Study Group Meeting 2 July 2019 Yes

2 Briefingon2019/20APP 16 July 2019 Yes

3 BriefingontheAnnualReport 9 October 2019 Yes

4 Briefingon2019/20APP 3 July 2020 Yes

• Therewerenoareasofriskidentifiedexceptwhathasbeenpresentedandupdatedonthequarterlyreport.

3. EXECUTIVE AUTHORITY

The following reports were presented to the Executive Authority:

1. Study Group Meeting - 2 July 2019.

2. Briefingon2019/20APP-3July2020.

3. Budget Vote 2019 - 16 July 2019.

4. BriefingontheAnnualReport-9October2019.

1. INTRODUCTION


4. THE ACCOUNTING AUTHORITY/COUNCIL

INTRODUCTION

• The importance and purpose of the Council

ThemainroleoftheCouncilismanagement,oversightandplanningoftheaffairsoftheARC,whichshall,subjecttotheprovisions of Agricultural Research Act 86 of 1990 (as amended), determine the policy and objectives of the ARC and exercise control generally over the performance of its functions, the exercise of its powers and the execution of its duties.

• Council’s responsibilities and accountability for the public entity’s performance and strategic direction

The statutory functions of the ARC Council are determined in terms of the provisions of the Agricultural Research Act, 1990 (Act No. 86 of 1990, as amended) and the Public Finance Management Act, 1999 (Act No. 1 of 1999) (the PFMA).

These include the following: to be the Accounting Authority; approval of the corporate Business Plan, strategic plan and the policies of the ARC; and setting of performance targets for the organisation.

The Council is responsible inter aliaforapprovalofthepreparedAnnualFinancialStatementsthataccuratelyreflecttheARCfinancialpositionandresultsattheendofthefinancialyear,whichissetat31Marcheachyear.TheOfficeoftheAuditor-General is responsible for auditing the Annual Financial Statements of the ARC.

In the year under review, applicable accounting standards were adhered to and adequate accounting records and an effectivesystemofinternalcontrolweremaintained.Appropriateaccountingpolicies,supportedbyreasonableandpru-dent judgements and estimates were applied on a consistent basis. Detailed delegations as required by the PFMA were in place.

THE ROLE OF THE COUNCIL

In the governance of the ARC, the Council is responsible for policymaking and control while the ARC President has been delegated the responsibility for the day-to-day execution of the policies and objectives as directed by the Council.

The members of the Council are appointed by the Minister of Agriculture, Land Reform and Rural Development on the basisoftheirexpertiseinthefieldsofagriculture,business,financialmanagement,law,research,technologydevelop-mentandtechnologytransfer inthefieldofagriculture,asprescribedbytheAgriculturalResearchCouncilAct,1990(Act No. 86 of 1990, as amended). Council members are appointed for a maximum period of three years and eligible for re-appointment. With the exception of the President and CEO of the ARC none of the members of the Council hold an executive position in the ARC.

TheCouncilexercisesfullandeffectivecontrolovertheARCandmonitorsitsExecutiveManagementCommittee.TheCouncil may obtain independent professional advise if deemed necessary.

COUNCIL CHARTER

In compliance with best practice corporate governance principles, and in accordance with the powers and authority del-egated to them by the Minister of Agriculture, Land Reform and Rural Development (the Minister), the Council Members (Council)oftheARChaveagreedtodefinetheirresponsibilitiesandduties,andrecordtheminastatementofpowersreservedtotheARCCouncilwithintheconstraintsoftheirauthorityasdefinedintheAgricultureResearchAct(ActNo.86 of 1990, as amended), Public Finance Management Act (Act No. 1 of 1999) (the PFMA), and Treasury Regulations in the Charter and any other relevant legislation.

CouncilMembersrecognisetheiraccountabilityinachievingtheobjectivesdefinedintheAct.

In accordance with its stated intent, Council seeks to identify and record its responsibilities and reserved powers and to clarifytheauthoritydelegatedtotheManagementoftheARC,definingtheorganisationmonitoringmeasuresrequiredtoensure the proper execution of the delegated authority and the integrity of risk management and internal controls.

Furthermore, in recognition of the importance of the leadership role of the Chairperson, his/her functions and duties are stipulated in the Charter.


COMPOSITION OF THE COUNCIL

NameDesignation

in terms of Board

Date ap-pointed

Date resigned/

term endedQualifications Area of

Expertise

Boardof

directors

Other Com-mittees (e.g: task teams)

No. of Meetings attended

Prof. S Vil-Nkomo Chairperson 1 Sept 2010 30 June 2020 BA MA, PhD Research Yes - 13

Dr. J Chitja Deputy Chairperson 1 Sept 2010 30 June 2020

PhD food scienceM. Soc.Sci, Bach-

elor of Science in Agriculture

Research Yes Research 11

Mr. A Bishop Member 1 Sept 2013 30 June 2020 B. Comm HonoursB. Compt Honours Audit Yes

Audit & riskResearch Finance

17

Ms. J Mashiteng Member 1 Sept 2013 30 June 2020Masters, Post Cert management, Mas-ters cert in nuclear

Human Resources Yes Human

Resources 17

Dr. M Ngoepe-Ntsoane Member 1 April 2017 30 June 2020

PhD (Management of Technology

and Innovation)


Resources 15

Dr. M Makhura Member 1 April 2017 30 June 2020 PhD (Agricultural Economics); Research Yes Research 13

Adv. E Mphahlele Member 1 April 2017 30 June 2020 B Proc, LLB (Commercial Law)

Commer-cial law Yes

Audit & Risk Human Resources

25

Mr. M Mahanjana Member 1 April 2017 30 June 2020

BPhil (Sustain-able Development

Planning and Management)


Dr. M Ngidi Member 1 April 2017 30 June 2020 PhD (Poultry Science) Research Yes Research 11

Dr. S van Oosterhout Member 1 April 2017

30 June 2020Re-Appointed 1 July 2020

PhD (Agricultur-al Ecology) Research Yes Finance

Research 12

Mr. S Mthombeni Member 1 April 2017 30 June 2020 MBA (Finance and Strategy) Finance Yes Finance 24

Mr. A Makenete Member 1 April 2017 30 June 2020 BSc (Agric) Finance Yes Finance 11

Mr. M Brinkhuis Member 1 April 2017 30 June 2020MPhil (Agricultural Systems Manage-ment (Economics))


Prof. P Mashela Member 1 April 201730 June 2020Re-Appointed 1 July 2020

PhD (Entomology and Nematology) Research Yes Research 9

Dr. A Stroebel Member 1 April 2017 30 June 2020

PhD (Socio-Eco-nomic complexities

of smallholder resource-)

Research YesHuman

Resources& Research

11

Ms. B Kali Member 1 April 2017 30 June 2020

Business Manage-ment (Strategic Leadership, HR Management,

Commercial Law)


Resources 14


COMMITTEES

COMMITTEE NO. OF MEETINGS HELD

NO. OF MEMBERS

NAME OF MEMBERS

Human Resources & Remuneration, Social & Ethics Committee (Four (4) meetings held)

HUMAN RESOURCES, REMUNERATION AND SOCIAL ETHICS COMMITTEE 4 MEETINGS 5 MEMBERS

Ms. J Mashiteng

Dr. M Ngoepe-Ntsoane

Dr. A Stroebel

Adv. E Mphahlele

Ms. B KaliResearch, Development & Evaluation Committee (Four (4) meetings held)

RESEARCH, DEVELOPMENT & EVALUATION COMMITEE 4 MEETINGS 7 MEMBERS

Dr. J Chitja

Dr. S Van Oosterhout

Mr. M Brinkhuis

Prof. P Mashela

Dr. M Ngidi

Dr. A Stroebel

Mr. M MahanjanaFinance, Investment & ICT Governance Committee (Four (4) meetings held)

FINANCE, INVESTMENT AND ICT GOV-ERNANCE COMMITTEE 4 MEETINGS 5 MEMBERS

Mr. A Makenete

Mr. S Mthombeni

Dr. M Makhura

Mr. A Bishop

Dr. S Van Oosterhout

Executive CommitteeDuring the year under review, three (3) Executive Committee meeting were held.

COUNCIL MEMBER NO. OF MEETINGS ATTENDED

Dr. SR Moephuli (CEO) 3

Prof. S Vil-Nkomo - Chairperson 3

Dr. J Chitja - Deputy Chair 3

Ms. J Mashiteng 3

Mr. A Makenete 2

REMUNERATION OF COUNCIL MEMBERS

Councilmembers,whoarenotGovernmentofficials,receivefeesfortheservicestheyrendertotheARCinaccordancewiththerelevanttariffsasdeterminedbyNationalTreasuryandapprovedbytheMinisterofAgriculture,Forestry&Fish-eries.

MembersoftheAudit&RiskCommitteeareremuneratedinaccordancewithanagreedtariffsetbytheNationalTrea-sury. Detailed information on fees, emoluments, bonuses and subsistence and travel claims paid to Council members, Audit & Risk Committee members and executive members as required per Treasury Regulation 28.1.1 is provided in note 21 of the notes to the Annual Financial Statements.

NAME REMUNERATION OTHER ALLOWANCE OTHER RE-IMBURSEMENTS TOTAL

Prof. Sibusiso Vil-Nkomo 94 772,60 N/A 152,49 94 925,09

Dr. Joyce Chitja 84 632,80 N/A 0 84 632,80

Mr. Allan Bishop 109 252,80 N/A 19 088,75 128 341.55

Ms. Joyce Mashiteng 101 243,52 N/A 2 879,84 104 123.36

Dr. Aldo Stroebel 65 763,70 N/A 0 65 763.70

Dr. Mnqobi Ngidi 77 915,52 N/A 1 652,55 79 568.07

Dr. Mokgadi Ngoepe-Ntsoane 81 725,76 N/A 18 411.00 100 136.76

Prof. Phatu Mashela 70 139,52 N/A 19 494.00 89 633.52


NAME REMUNERATION OTHER ALLOWANCE OTHER RE-IMBURSEMENTS TOTAL

Mr. Michael Brinkhuis 38 957,76 N/A 0.00 38 957.76

Mr. Aggrey Mahanjana 66 173,76 N/A 2 815.80 68 989.56

Ms. Bongiwe Kali 97 355,52 N/A 9 299.36 106 654.88

Mr. Sipho Mthombeni 144 167,00 N/A 10 613.40 154 780.04

Dr. Saskia van Oosterhout 62 208,00 N/A 9 297.61 71 505.61

Dr. Moraka Makhura 69 733,52 N/A 135.38 69 868.90

Adv. Edwin Mphahlele 175 115,52 N/A 9 797.28 184 912.80

Mr. Andrew Makenete 77 837,75 N/A 4 507.53 82 345.28

5. RISK MANAGEMENT

The ARC has an established risk management process, which is captured and outlined within the organisation’s for-mulated and approved Risk Management Strategy. Contained within this strategy, the ARC outlines its commitment to the undertaking of formal annual strategic risk assessments for purposes of identifying new and emerging risks, which may impede the achievement of the ARC strategic goals. From a governance perspective, the ARC has an established Corporate Enterprise Risk Management Committee (CERMC), comprising of both Senior and Executive Management and representatives from the respective divisions/operations of the organisations. The Committee’s key role is to advise management on the overall system of risk management within the organisation, which is inclusive of the mitigations of strategic risk exposures. The organisation’s Audit and Risk (A&R) Committee also plays a key role in advising on risk management processes and practices, which is further supported through the internal audit function whom independently monitorsandreportstotheA&RCommitteeontheeffectivenessoftheentireriskmanagementsystem.TheARChas,over the reporting period, realised varied levels of success, being ascribed to the minimisation of key strategic risk expo-sures,translatingintoanimprovementintheARCperformance.Thefocusforthenextfinancialyearandbeyondwouldbe on devising and implementing risk minimisation strategies, aimed at reducing the resultant impacts posed by key strategicriskexposuresforthebenefitofenhancingtheorganisation’sperformance.

6. INTERNAL CONTROL UNIT

Not applicable to the ARC.

7. INTERNAL AUDIT AND AUDIT COMMITTEES

Internal auditing is an independent and objective assurance and consulting activity that is guided by a policy of adding value to improve the operations of the ARC. It assists the ARC in accomplishing its objectives by bringing a systematic anddisciplinedapproach(anannualandthree-yearrollingrisk-basedauditplan)toevaluateandimprovetheeffective-ness of the entity’s governance, risk management and internal control. The Internal Audit (IA) Committee implemented its annual risk-based audit plan for 2019/20 as part of the three-year rolling plan after consultation with management and approval by the Audit and Risk Committee. Nineteen (19) Audits were planned for the year, seventeen (17) were complet-ed and two (2) were still in progress at the end of the year. All the changes to planned audits were approved by the Audit and Risk Committee. For the year, seventeen (17) planned audits with an additional two (2) ad-hoc audits culminating in nineteen (19) audits, were conducted in the predetermined timeframe. This resulted in a 90 % completion of the approved 2019/20 IA Annual Plan. All audits and other work of the IA function were conducted in accordance with the International Standards for the Professional Practice of Internal Audit, as issued by the Institute of Internal Auditors (IIA).

The Audit and Risk Committee is established as a statutory committee in terms of section 77 of the PFMA and Treasury Regulations 3.1.13. The committee performs an oversight and advisory role to the ARC and is accountable to the ARC Council and the public and must therefore properly consider and evaluate all matters as per its terms of reference.


ThepurposeofthecommitteeistoassisttheCouncilinfulfillingitsoversightresponsibilitiesandtheCEOinfulfillingexecutivedutiesregardingthefinancialreportingprocess,themanagementofrisk,thesystemofinternalcontrol,theaudit process, and the entity’s process for monitoring compliance all within laws, regulations and code of conduct. The Committeealsohasaprimaryresponsibilitytothepublictoformanopinionontheeffectivenessofthoseissueswithinits ambit, and communicates this in the Annual Report in terms of the Treasury Regulations:

• To review, with the external auditor(s) before the audit commences, the auditor(s) engagement letter, the terms, nature and scope of the audit, procedures and engagement and the audit fee;

• Consideranyproblemsidentifiedinthegoingconcernstatementorrelatingtointernalcontrolandconsideranyaccountingtreatments,significantunusualtransactions,oraccountingjudgments,thatcouldbecontentious;

• Examine and review the Annual Financial Statements, prior to submission and approval by Council, making such comments as it may deem necessary. Particular attention should be paid to:• Evaluating judgments and reporting decisions made by management;• Critical accounting policies and practices, and any changes;• Decisionsrequiringasignificantelementofjudgement;• Theextenttowhichthefinancialstatementsareaffectedbyanysignificantandunusualtransactionsinthe

year and how they are disclosed;• The clarity and completeness of proposed disclosures;• Significantadjustmentsresultingfromtheaudit;• The going concern assumption; and• Compliance with accounting standards;

• Key activities and objectives of the Audit Committee:The Audit & Risk Committee (Committee) is constituted to assist Council in discharging its duties relating to the safeguardingofassets,theoperationofadequatesystems,controlprocessesandthepreparationofaccuratefi-nancial reporting and statements in compliance with all applicable legal requirements and accounting standards as prescribed in the Public Finance Management Act, 1999 (Act 1/1999) and the prevailing Treasury Regulations; and

• Attendance of Audit Committee meetings by Audit Committee members.

The table below discloses relevant information on the Audit Committee members

Name Qualifications Internal or external

If internal, position in the public entity

Date appointed Date ResignedNo. of

Meetings attended

Vishnu Naicker B.Com. External - 1 December 2013 31 July 2020 12

Hamish McBain B.Sc. External - 1 December 2013 31 July 2020 16

Phindi Mokoena Pg. Certificate Certified Ac-counting & Finance

External - 1 December 2013 31 July 2020 11

Luyanda Mangquku B.Com, B.Compt. Hons. External - 1 December 2013 31 July 2020 15

Jemima Bruinders CIA(CertifiedInternalAuditor) External - 1 December 2013 31 July 2020 3

Allan Bishop B.Com. External - 1 December 2013 31 July 2020 3

Edwin Mphahlele LLB External - 1 April 2017 31 July 2020 3

8. COMPLIANCE WITH LAWS AND REGULATIONS

The ARC is fully committed to comply with the provisions of the Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999). The internal and external auditors continue to provide the Council with assurance on the degree of compli-ance with the PFMA.


9. FRAUD AND CORRUPTION

The ARC stance on fraud and corruption remains that of zero tolerance. The ARC focuses on preventative procedures initsfightagainstfraudandcorruption.TothisendallARCemployeesundergoatwo-stepprocesstoascertaintheirsuitability for employment and reduce the risk of fraud. All new employees undergo an initial pre-employment suitability check, which is followed by a comprehensive vetting process once the employee has been appointed. This process has already yielded results in identifying and dealing with employees who could have potentially defrauded the entity. The in-ternal audit function of the ARC runs a comprehensive annual anti-corruption awareness campaign in all ARC campuses which ensures that all employees of the entity are made aware of the internal and external impact of fraud and corruption.ARChasananonymoustip-offserviceindependentlymanagedbyDeloitteandthisTip-offsAnonymousserviceprovidesan anonymous reporting channel for unethical behaviour in the ARC workspace. All allegations received are investigated eitherbyanindependentforensicfirmand/orinternalaudit;dependingonthecomplexityoftheallegations.Dependingon the outcome of the investigation, disciplinary measures, civil and/or criminal action will be taken against implicated employees and third parties.

10. MINIMISING CONFLICT OF INTEREST

TheCodeofEthicsandBusinessConduct(“Code”)oftheARCstipulatesthatemployeesshouldavoidconflictof in-terest as this may occur when personal interest of an employee or the interest of the third party competes with that of the ARC. ARC supports the prohibition of employees doing business with any organs of state (including the ARC), or of being a director of a public or private company conducting business with an organ of state. The code stipulates that all new employees and students in the ARC are required to disclose their interests within 30 days after assumption of duty; and all employees and students will be required to disclose their interest on an annual basis, but not later than 30 April ofeachyear.ThesenewmeasuresassisttheARCinraisingawarenessofpossibleconflictsofinterestforemployees,andtoavoidthem.TheARCcontinuestoraiseawarenessandtocoachandguideemployeesonhowtoavoidconflictsofinterest.Wheresuchinterestsareidentified,employeesareengagedand,whereappropriate,standarddisciplinarysteps are taken in terms of the code.

11. CODE OF CONDUCT

The Code of Ethics and Business Conduct (“Code”) of the ARC outlines expectations regarding employees’ behaviour towards their colleagues, stakeholders, and when conducting any business of the ARC. ARC is committed to being ex-emplary at all times and in all respects, and for its work and conduct to be guided by the values outlined in the Code. TheARCexpectsemployeestobeethical,responsibleandprofessional,andtofulfiltheirdutieswithintegrity.TheARCbuilds a culture that encourages employees to think and behave ethically by providing training and awareness through induction, security and fraud prevention and training sessions. These sessions are conducted continuously throughout all ARC campuses to remind and reinforce the ethical conduct of employees at all times. The ARC will take disciplinary action in terms of its disciplinary code and procedure against employees who repeatedly or intentionally fail to follow its Code.


12. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

OVERVIEW

TheARCoperationsencompassboth theworldof services,which is the corporate (offices)and thebiosafetyenvi-ronmental facilities (laboratories, general environmental applications). This has resulted in a scenario that requires acomprehensiveSafety,HealthandEnvironment (SHE)performance.Theenvironment includes thedifferent typesof farms and land that the ARC uses for experimental purposes and other land leased for commercial purposes.

PERFORMANCE REVIEWS

The individual campuses or sites have developed different committees to effectively monitor, evaluate and en-sure compliance requirements. This is through the monthly SHE coordination meetings, review and comments on monthly reports necessary for the operational monitoring and evaluation of SHE matters with regard to ARC obliga-tions in terms of legislative compliance and best practice. The Campuses’ SHE performance reviews are categorized into the following, namely Compliance Requirements, Building Services Infrastructure and Technical Compliance.

Service Line Performance review issues Remarks

Compliance requirements • Challenge with the appointment of health services contractors;

• DAFF biosafety report not issued as yet; and

• Risk register not updated.

• SCM to review strategies;• Stakeholder engagement protocol;

and• OHSAcapacityreconfiguration.

Building Services Infrastructure • Structural durability compro-mised; and

• Aging infrastructure and obsolete installation.

• Inadequate maintenance budget; and

• Ineffectiveserviceandmaintenance.

Technical compliance • Emergency preparedness and evacuation exercises.

• Noteffectivebecauseofsomeworkactivities impeding compliance.

RELEVANT IMPACT ON ENVIRONMENT

Throughout the year, the ARC has considered environmental sustainability projects for two critical resources, water and electricity. The objective is to reduce reliance on the grid supply by the local municipalities with the view to manage and reduce consumption. Energy savings have already been implemented at ARC-INF-NVB, located in Cape. Data at these two sites installations will be reviewed to inform the extension to other campuses. Water and waste management pro-cesses are still to be considered.

The ARC, to ensure continuous relevance to its obligations and compliance to Occupational Health and Safety Act (OHSA), 1993 (Act No. 85 of 1993) and the National Environment Management Act (NEMA), 1998 (Act No. 107 of 1998) has appointed a contractor to review various environmental activities on campuses.

COVID-19 PANDEMIC

TheglobaloutbreakoftheCOVID-19pandemichasaffectedthelivelihoodsinallspheresoflife.TheRSAGovernmentpublished regulations and issued directions in terms of the Disaster Management Act, 2002 (Act No. 57 of 2002) that provided protocols for the new way of conduct that included the changes in the workplace design and operations. The ARChassatisfiedtherequirementsassetoutintheAct,theRegulationsandtheDirections.


13. COMPANY/BOARD SECRETARY

Provides guidance and advise to the board regarding their duties, responsibilities, powers and matters of procedure in terms of the Board Charter, terms of reference, principles of good ethics, good governance, and best practices.

AssiststheBoardanditssubcommitteeswithinterpretationofapplicablelegislationrelevanttooraffectingtheorganisa-tion and implications for non-compliance with such applicable statutory requirements. Monitors compliance to execution of duties in line with the delegation of authorities.

Key role in preparing the reports for the Annual Report and ensuring that relevant deadlines and appropriate statutory disclosures are met.

14. SOCIAL RESPONSIBILITY

MANDELA DAY

ARC employee with the older learners of

Kgantsho Primary School.

Inspired by the successful school shoes collection cam-paign of the previous year (during 2019), colleagues de-cided to continue with the school uniform theme. It was also decided to return to the school we had donated schoolshoesto,KgantshoPrimarySchool,inanefforttotry and complete the learners’ uniforms and help them feel less such as outsiders. ARC employees had the opportu-nitytocontributeintwodifferentways,eitherfinanciallyorthrough buying the jerseys. All ARC campuses participat-ed in the campaign and a total of 208 jerseys were handed to the grateful learners.

The school jerseys handover ceremony was made even more special by ARC employees planting sub-tropical fruit trees namely 5 x Avocado, 5 x Litchi, 5 x Mango and 5 x Cherry Guava donated by ARC. These trees were cho-sen for their suitability to the area. ARC also donated 50 sweet potato cuttings (Bophelo cultivar) and spinach that were also planted on the day. The objective of planting the food crops was two-fold, namely to help supplement the learners’ free meals but to also educate them regarding an introduction to agriculture. The learners, teachers and caretakers were also given training aimed at empowering them to look after these crops.


Bophelo sweetpotato cultivar being planted. ARC employees with happy recipients of school jerseys.

WORLD FOOD DAY

TheWorldFoodDayFoodMountainChallengehasalsobecomeafixtureontheARCcalendar.AllARCCampusescom-pete with one another for the coveted title of “King of the Mountain”. The campaign is a call-to-action for ARC employees to participate in their own way to assist in solving global food and agricultural issues in support of the ARC mandate.

ARC-SG was once again crowned “King of the Mountain” for the second consecutive year and the campus donated all of the ARC contributions to a charity of their choice.

World Food Day Trophy.

ARC-SG proudly earned the title “King of the Mountain”.


15. AUDIT COMMITTEE REPORT

Wearepleasedtopresentourreportforthefinancialyearended31March2020.

AUDIT COMMITTEE RESPONSIBILITY

The Audit and Risk Committee (the Committee) reports that it has complied with its responsibilities arising from the Sec-tion of the Public Finance Management Act and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adoptedappropriateformaltermsofreferenceasitsAuditCommitteeCharter,hasregulateditsaffairsincompliancewiththis charter and has discharged all its responsibilities as contained therein, except that we have not reviewed changes in accounting policies and practices.

The Audit Committee consists of the external members and members of Council listed here-under and is required to meet a minimum of at least four times per annum as per the provisions of the Public Finance Management Act, 1999 (Act Number 1 of 1999) (PFMA). In terms of the approved Audit and Risk Committee Charter, 4 meetings were held during the currentyeartoconsidertheQuarterlyPerformanceReporting(financialandnon-financial)andtoreviewanddiscusstheAnnual Financial Statements and the Auditor-General of South Africa’s (AGSA) Audit and Management Reports.

TheCEO,CFOandSeniorManagementattendedallmeetingsthatwereheldduringthecourseofthefinancialyear.

THE EFFECTIVENESS OF INTERNAL CONTROL

OurreviewofthefindingsoftheInternalAuditwork,whichwasbasedontheriskassessmentsconductedinthepublicentity revealed certain weaknesses, which were then raised with the public entity. The following internal audit work was completed during the year under review:

• Review of the organisation’s Audit Improvement Plan;• Performance information; • Application control review - ICT systems;• Supply Chain Management;• Irregular expenditure review;• Assets management process;• WIP (Work in progress) reconciliation account review;• Revenue completeness; and• FMD (Foot-and-mouth Disease) Project review.

In-Year Management and Monthly/Quarterly ReportThe public entity has submitted monthly and quarterly reports to the Executive Authority.

Evaluation of Financial StatementsThe Committee has:

• Reviewed and approved changes to the accounting policies in line with the Standards of Generally Recognized Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board;

• Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report, with the AGSAandtheAccountingOfficer;

• Reviewed the Audit Report of the AGSA;• Reviewed the AGSA’s Management Report and Management’s response thereto; • Reviewed the Entity’s compliance with legal and regulatory provisions; and • Reviewedsignificantadjustmentsresultingfromtheaudit.

The Committee has once again taken note of the concerns of the Auditor-General, more notably the emphasis on mate-rialmisstatementsandfinancialrecordkeepingandacceptsthatthereisfurtherroomforimprovementintheaccountingfunction and elements of the internal control environment.


TheCommitteehasexpresseditsconcerntomanagementandtheCounciloftheARCoverthedeterioratingfinancialhealth of the ARC, which is highly dependent on the extent of support from Government and the extent of the Parliamen-tary Grant. The Committee considers that the statement relating to the going concern status of the organisation contained in theAnnualFinancialStatements isappropriate.TheCommitteenoteswithdisappointment thebasisofaqualifiedopinion expressed by the Auditor-General.

DuringthefinancialyeartheCommitteeplacedsubstantialefforttowardstheimplementationoftheAuditImprovementPlan, including follow up by the organisation’s internal audit services. Such Audit Plan placed particular focus on eliminat-ingrootcausestowardsprioryearmisstatementsandotherfindings.ItisnotedthatasatthesubmissionoftheunauditedAnnual Financial Statements all matters within the Audit Improvement Plan had been duly resolved by management. This hasbeenconfirmedbytheAuditor-General;hencetherearenorepeatfindingsfromprioryear.

TheCommitteehasonceagainnotedtheconstraintstoachievecertaintargetsasidentifiedbymanagement.Theseconstraints continue to adversely impact upon the ARC achieving certain objectives. The most important factor impact-ingpastandfutureperformanceisthelimitedfundingavailabletotheorganisationtomeetitsfullmandate.Effortsbymanagement to secure additional research funding from both government and third-party sources have so far failed to resolvethispressingmatter.TheinadequacyoffundingplacesaconsiderablestrainonthefinancialresourcesoftheARC,whichinturnplacesatrisktheARCabilitytofulfilitsmandates.

The monitoring of the organisation’s performance is a key function of Management, Executive Management and the Council. The Committee has no direct responsibility for the Council’s performance measurement. However, the Com-mittee has ensured, principally through the internal audit function, that the systems of performance measurement and reporting, as well as the systems of internal control that underpin the performance management framework of the Coun-cil are addressed routinely in the Audit Plans. The Committee also obtained assurance from management and internal auditthattheCouncil’sperformancemanagementsystemadequatelyandeffectivelyreportsappropriateandrelevantinformation.

It is deemed appropriate to mention that the Committee has on numerous occasions highlighted its serious concerns over the following matters:

• The extent of debtor’s balance exceeding 150 days. Most of this money is owed to the ARC by government depart-mentsandeffortstorecovertheselongoutstandingamountshavebeenmetwithlimitedsuccess,placingseverestrainontheARCcashflows;

• The decline in the level of non-government external revenue;• Funding constraints and the decline in cash resources; and• Inadequate maintenance and the failure to dispose of facilities that are no longer required to prevent them continu-

ing to impose a cost burden on the ARC.

TheCommitteeisdisappointedwiththequalifiedauditoutcomeforthefinancialyearunderreviewandasaresult,willcontinuetointensifyitseffortstoensureimprovedvalidationoffinancialreportingandmorethoroughaddressingofareasidentifiedasrequiringimprovementbytheAuditor-General.ManagementshouldalsoengagemoreeffectivelywithNa-tional Departments for support in the collection of long outstanding debts. I would like to thank the Council, members of management and members of the Committee for their personal and professional contributions made during the reporting year.

Internal AuditInternalAuditwaseffectiveduringthefinancialyear.TheCommitteeissatisfiedthattheInternalAuditPlanrepresentsaclearalignmentwiththekeyrisks,hasadequateinformationsystemscoverage,andagoodbalanceacrossthedifferentcategories of audits, i.e. risk based, standard/transversal, performance and computer audits.

Risk ManagementTheCommitteeissatisfiedthattheriskmanagementfunctionremainsatanappropriatelevelwithintheorganisationandcontinuestoreceiveattentionandrefinementsinlinewithitsbusinessmodel.EmbeddingofriskandmitigationaroundriskisnowacontinuousprocesswhichismonitoredbytheChiefRiskOfficerandreportedtotheCommittee.

Forensic InvestigationsAtotalnumberof6forensicinvestigationswererequestedfortheCouncilduringthefinancialyearunderreview.


Information and Communication Technology (ICT) GovernanceThe Committee also continued with its review of the progress with respect to the ICT Governance in line with the ICT Frameworkapprovedby theARCandnotes theAuditor-General’sopinionaroundtheweaknesses identifiedrelatingto the inadequate design, and/or implementation of controls in the focus areas of security management, user access management, program change management and ICT service continuity which can have a direct impact on the business operationsoftheentity.ThesewillbethesubjectofincreasedoversightinthecomingfinancialyearfortheCommitteeand management.

Auditor-General of South AfricaThe Committee met with the AGSA to ensure that there are no unresolved issues.

In ConclusionTheCommitteeappreciates theeffortmadebyManagement toensure that theentitydoesnot regress furthereventhoughithasreceivedaqualifiedopinion.WealsowishtohighlighttheincreasingpressureontheCouncil,CEOandstaffoftheARCtoimprovethecontrolenvironment,managetheheightenedriskaroundthegoingconcernanditsac-countability towards service delivery during these unprecedented times of COVID-19.

I would further like to thank all members of the Committee for their personal and professional contributions made during the reporting year.

______________________Vishnu NaickerChairperson of the Audit & Risk Committee30 September 2020

16. B-BBEE COMPLIANCE PERFORMANCE INFORMATION

The following table has been completed in accordance with the compliance to the B-BBEE requirements of the B-BBEE Act of 2013 and as determined by the Department of Trade and Industry.

Has the Department/Public Entity applied any relevant Code of Good Practice (B-BBEE Certificate Levels 1-8) with regards to the following:

Criteria ResponseYes/No

Discussion(include a discussion on your response and indi-cate what measures have been taken to comply)

Determiningqualificationcriteriafortheissuingoflicences,concessions or other authorisations in respect of economic activity in terms of any law? N/A N/A

Developing and implementing a preferential procurement policy? Yes The Preferential Procurement Policy Framework Act 5 of 2000 and

its 2017 Regulations is used to develop procurement policy.

Determiningqualificationcriteriaforthesaleofstate-ownedenterprises? N/A N/A

Developing criteria for entering into partnerships with the private sector? Yes ARC is guided by Chapter 16 of Treasury Regulations in entering into

partnerships with private sector

Determining criteria for the awarding of incentives, grants and investment schemes in support of Broad-Based Black Economic Empowerment? N/A N/A

*B-BBEEverificationprocessisunderwayandwasnotyetfinalisedatthedateofthefinalisationoftheAnnualReport.


PART E: FINANCIAL INFORMATION

1. Revenue Collection

2. Report Of The External Auditor

3. Annual Financial Statements


Sources of revenue

2019/2020 2018/2019

Estimate Actual

Amount Collected

(Over)/Under Collection

Estimate Actual Amount

Collected

(Over)/Under Collection

Government grants 1 089 902 609 978 339 783 111 562 826 932 113 000 929 050 026 3 062 974

Sale of goods in agricultural services 30 793 944 17 516 561 13 277 383 30 799 878 20 073 297 10 726 581

Rendering of services 328 711 128 266 227 207 62 483 921 410 330 367 278 476 209 131 854 158

Royalty income 28 700 928 27 290 905 1 410 023 17 819 747 36 202 650 (18 382 903)

Rental of facilities and equipment 46 847 937 19 556 146 27 291 791 19 754 218 18 489 313 1 264 905

Recoveries - 1 124 782 (1 124 782) - - 0

Other income 7 916 163 27 746 233 (19 830 070) 4 957 790 23 481 843 (18 524 053)

Interest received 13 280 000 19 441 866 (6 161 866) 5 100 000 7 305 630 (2 205 630)

Dividends received - 136 972 (136 972) - 703 193 (703 193)

Total 1 546 152 709 1 357 380 455 188 772 254 1 420 875 000 1 313 782 161 107 092 839

1.1. CAPITAL INVESTMENT

TheARCconductedassetverification,evaluationandassessmentwiththeviewtodevelopamediumandlong-termasset management plan, which will provide insight into asset conditions and assist in the maintenance programme.

CAPEXbudgetwasmadeavailableinthecurrentfinancialyeartoaddressthemaintenancebacklogofbuildings.

Lackofexperienceintheprojectmanagementprocesseffectssnaggingandtheprojectcloseoutprocess.Thislackofexperience results in projects that overrun the planned project completion dates and impact on normal business activi-ties. Value for money is not realised. ThefollowingCAPEXprojectsareinprocessandexpectedtobecompletedduringthecurrentfinancialyear:

• Renovations and refurbishment of facilities; • Supply, delivery and installation of energy alternatives; • Renovation of building roof; • Installation of building cooling system; • Weighbridge equipment procurement;• Installation of hot water storage;• Boiler installation at cheese factory; and• Insect mass rearing.

Nofacilitieshavebeenidentifiedforclosureordowngrading.

Maintenanceisanongoingprocess.Duetoinsufficientbudgetavailability,avastmaintenanceisdeferredbecauseofthe reactive maintenance approach. This approach is detrimental to the ARC assets in the end. The asset valuations and designingofmaintenanceprogrammeinterventionswillbebeneficialfortheARCassetmanagementportfolio.

Developments, that are expected to have impact on the public entity’s current expenditure, are:• Thestandardisedspecificationsdesignforthedifferentservices;• Budget availability; and• Theslowpaceoffinalisingappointmentofappropriatecontractorsfordifferentservices.

1. REVENUE COLLECTION


Theassetregisterisuptodatewithcurrentvaluationsandverification.Assetslost,duetotheft,areallaccountedforthrough insurance channels. Additional risk mitigation is in place and the disposal procedure is observed for any asset that meets the criteria.

ARCensuredthatacontinuousprocessofassetverificationwasundertakenduringtheperiodunderreview.Thiswasdone to improve and increase accountability and validity of the assets in the asset register.

The majority of assets including infrastructure is in a very bad and derelict state. The overall estimated functionality is 70%. This is on the basis that the operation expense ratio is exceeding the industrial norm of 1%, signalling a requirement of enormous capital layout to reverse the condition and increase asset lifespan.

Major maintenance projects that have been undertaken during the period under review, are:• Repair and replace of critical installations such as building cooling systems;• Building roofs; and• Refurbishments and renovations including building painting, civil, electrical and plumbing services.

The maintenance backlog has heightened and will take some time to resolve. This is mainly due to the deferred and reactivemaintenanceapproach.Thiscanonlybeachievedoncesufficientfundingisinplacewithbettermaintenanceal-location. Measures taken include entering into, or renewal of contracts for service and maintenance of the critical building installations such as air-conditioning services, back-up power services and any other related strategic building services.

Infrastructure projects

2018/2019 2019/2020

Budget(R’000)

Actual Expen-diture(R’000)

(Over)/ Under Expenditure

(R’000)

Budget(R’000)


(Over)/Under

Collection(R’000)

Insect mass rearing facilities (PHP) to be completed by end of October 2020 **1 600 1 600 0

Installation of electricity pre-paid meters: VOP 50 99 (49)

Installationof6xdoublefireescapedoorsatBiosystematics:PHP 300 174 126

InstallationofastairwellandfireescapedoubledooratBlockJ:PHP 110 78 32

RenovationofCentral-Officegroundfloorproject 8 000 7 400 600

Renovation of main building roof at AE **5 000 4 800 200

Refurbishment of Dairy Science toilets 200 198 2

Installation of hot water storage 500 437 64

Boiler Installation at cheese factory 737 734 3

Repair and replace cooling equipment (GC) 4 700 2 400 (2 300)

Recreational hall refurbishment 500 435 65

3 X Jojo tanks (Kaalplaas) 15 15

Farm equipment storage *650 0

Supply and installation of fencing at Cellar 640 0 0

Replacement of cooling pipes at cooling facility 1 660 0 1 660*

Supply and installation of sync of temp system at 12 CA rooms 1 800 1 800 0

Supply and installation of 90 kw cool chiller for cooling unit 504 504 0

Expansion of a 50-75kw grid tie system 1 275 0 1 275*

Cellar upgrade 2 574 2 574 0

Supply and Installation of fencing at Cellar 0 640* 0

Upgrade of Tunnel Complex 1 261 1 287 (26)

Supply and installation of air compressor *1 860 0 1 860

Boreholes 300 288 12

Diesel tanks *180 0 180*

Glasshouse upgrade - SAAPA 60 85 (25)

Solar-powered geyser 50 32 18

Extractor fans for laboratories *86 0 86

Glasshouse (PHP) *250 0 250

Tunnel upgrade 137 139 (2)

Security cameras *80 0 80

Upgrading of fruit dam 180 212 (32)


Infrastructure projects

2018/2019 2019/2020

Budget(R’000)


(Over)/ Under Expenditure

(R’000)

Budget(R’000)


(Over)/Under

Collection(R’000)

Air conditioners 40 11 29

Maintenance: Ernst Pieper gutters, beams, box and facia boards 180 111 69

Maintenance: Jos de Kock gutters, beams and facia boards 180 106 74

Upgrade 2x bathrooms Glasshouse Complex 60 73 (13)

Paint Tractor Store Farm Complex *20

New shadenet roof Single Quarters *50

New shadenet roof Fish House *30

Upgrade 1x Glasshouse roof with shatterproof glass 100 71 29

Upgrade gravel road at Wheat Board Hall with paving 190 263 (73)

Reseal tar road *350 0

Improve drainage at main gate 140 118 22

Replace lights with latest technology **50 0

2x solar geysers 80 80

Relocate CAT generator set 150 0

Replace switch unit 210 200 10

Replace old HT poles 100 230 (130)

Cooling units for Glasshouses 490 967 (477)

Speeding Breeding Hub (Thrip) 545 279 266

Replace aircons in Coldrooms 114 86 28

Convert room to coldroom: Insect Pathology Building 58 61 (3)

Maintenance of tractor store farm complex **138

Germplasm bank **138

KB Lab *58

Upgrade high-tension network 207 180 207

Upgrade drainage at Incinerator Building and area 115 28 87

Upgrade lights and geysers **115

Upgrade coldrooms 127 93 (340)

Maintenance of houses 276 616 -339 820

Install security gates and burglar bars **138

Maintain Floppie Irrigation System 109 96 13

Maintain Floppie System Reservoir **115

Reseal and maintenance of tar roads **345

Paint Grain Technology Building **230

Relocate Cat Genset 173 43 130

New Genset for ICT 92 142 (50)

Total 20 540 15 914 4 626 17 465 13 977 3 488

* Budgets approved in 2018/2019 spent in 2019/2020 & 2020/2021 Financial Years

**Projectstobecompletedinthisfinancialyear:• Germplasm bank;• KB Lab;• Old animal complex;• Upgrade lights and geysers;• Installation of security and burglar bars;• Maintainfloppiesystemreservoir;• Insect mass rearing;• Renovation of building roof;• Replace lights with latest technology;• Tractor storage; and• Reseal and maintenance tar road.


2. REPORT OF THE AUDITOR-GENERAL

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Qualified opinion

1. IhaveauditedthefinancialstatementsoftheARCsetoutonpages175to233whichcomprisethestatementoffinancialpositionasat31March2020,statementoffinancialperformance,statementofchangesinnetassets,cashflowstatementandstatementofcomparisonofbudgetandactualamountsfortheyearthenended,aswellasthenotestothefinancialstatements,includingasummaryofsignificantaccountingpolicies.

2. Inmyopinion,exceptforthepossibleeffectsofthemattersdescribedinthebasisforqualifiedopinionsectionofthisAuditor’sReport,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheARCasat31March2020,anditsfinancialperformanceandcashflowsfortheyearthenendedinaccordancewith the Standards of Generally Recognised Accounting Practice (Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

Basis for qualified opinion

Property, plant and equipment3. Iwasunabletoobtainsufficientappropriateauditevidencefortherestatementofthecorrespondingamounts

forproperty,plantandequipmentinthefinancialstatements,inaccordancewithGRAP17,Property, plant and equipment.Asdescribedinnote35tothefinancialstatements,therestatementwasmadetorectifyapreviousyear mis-statement, but the restatement could not be substantiated by supporting audit evidence. I was unable toconfirmtherestatementbyalternativemeans.Consequently,Iwasunabletodeterminewhetheranyadjust-mentwasnecessarytothecorrespondingfigureofland,statedatR299797770,asdisclosedinnote18tothefinancialstatements,andtotherevaluationsurplusstatedat(2019:R215020431)innotes27and35tothefinancialstatements.Theclosingbalanceforthe2019-2020financialyearwasnotimpactedasarevaluationwasperformed in the current year and the balances adjusted accordingly.

Rendering of services 4. The public entity incorrectly recognised revenue for the rendering of services for the year. The revenue from the

renderingofservicesdidnotmeetthedefinitionofrevenueaccordingtoGRAP9,Revenue from exchange trans-actions. In addition, revenue from the rendering of services was not recorded in the correct period. This resulted in revenue from services rendered being overstated by R17 131 834 and, consequently, income received in ad-vance being understated by the same amount. Additionally, there was an impact on the surplus as well as on the accumulated surplus for the current period.

Commitments 5. The public entity did not account for all items included in the commitments disclosure note in accordance with

GRAP 1, Presentation of financial statements. The commitments amount as disclosed in note 32 includes can-celledcontractsaswellaspaymentsmadeonconfirmedorders,whichwereincorrectlyrecognisedasadditionsto the commitments amount as opposed to reducing the commitments balance, thus incorrectly accounting for commitments at year-end. Consequently, commitments for the year stated at R17 593 350 were materially mis-stated.

Context for the opinion

6. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under thosestandardsarefurtherdescribedintheAuditor-General’sresponsibilitiesfortheauditofthefinancialstate-ments section of this Auditor’s Report.


7. I am independent of the public entity in accordance with sections 290 and 291 of the Code of ethics for profession-al accountants and parts 1 and 3 of the International Code of Ethics for Professional Accountants (including In-ternational Independence Standards) of the International Ethics Standards Board for Accountants (IESBA codes) aswellastheethicalrequirementsthatarerelevanttomyauditinSouthAfrica.Ihavefulfilledmyotherethicalresponsibilities in accordance with these requirements and the IESBA codes.

8. IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyqualifiedopinion.

Material uncertainty relating to financial sustainability

9. Idrawattentiontothematterbelow.Myopinionisnotmodifiedinrespectofthismatter.

10. Idrawattentiontonote37tothefinancialstatements,whichindicatesthatduetotheCOVID-19pandemic,40%of external revenue is at risk and highly unlikely to be achieved as well as an estimated loss of R197 million and R247millionforthe2021and2022financialyears.Theseeventsorconditions,alongwithothermattersassetforthinnote37,indicatethatamaterialuncertaintyexiststhatmaycastsignificantdoubtonthepublicentity’sfinancialsustainability.

Emphasis of matters

11. Idrawattentiontothemattersbelow.Myopinionisnotmodifiedinrespectofthesematters.

Material impairments - trade debtors12. Asdisclosedinnote14tothefinancialstatements,materialimpairmentsofR53669594(2019:R63605881)

were incurred as a result of long-outstanding debtors’ balances.

Restatement of corresponding figures13. Asdisclosedinnote35tothefinancialstatements,thecorrespondingfiguresfor31March2019wererestated

asaresultofanerrorinthefinancialstatementsofthepublicentityat,andfortheyearended,31March2020.

Events after the reporting date14. Idrawattentiontonote38tothefinancialstatements,whichdealswithsubsequenteventsandspecificallythe

possibleeffectsofthefutureimplicationsofCOVID-19onthepublicentity’sfutureprospects,performanceandcashflows.Managementalsodescribeshowtheyplantodealwiththeseeventsandcircumstances.

Responsibilities of the accounting authority for the financial statements

15. Theaccountingauthority isresponsibleforthepreparationandfairpresentationof thefinancialstatements inaccordance with the Standards of GRAP and the requirements of the PFMA, and for such internal control as the accountingauthoritydeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterial mis-statement, whether due to fraud or error.

16. Inpreparing thefinancial statements, theaccountingauthority is responsible forassessing thepublicentity’sability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going-concern basis of accounting unless the appropriate governance structure either intends to liquidate the public entity or to cease operations, or has no realistic alternative but to do so.

Auditor-General’s responsibilities for the audit of the financial statements

17. Myobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrom material mis-statement, whether due to fraud or error, and to issue an Auditor’s Report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material mis-statement when it exists. Mis-statements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected toinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.


18. Afurtherdescriptionofmyresponsibilitiesfortheauditofthefinancialstatementsisincludedintheannexuretothis Auditor’s Report.

REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT

Introduction and scope

19. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issuedintermsthereof,Ihavearesponsibilitytoreportmaterialfindingsonthereportedperformanceinformationagainst predetermined objectives for selected Programmes presented in the Annual Performance Report. I per-formedprocedurestoidentifyfindingsbutnottogatherevidencetoexpressassurance.

20. My procedures address the usefulness and reliability of the reported performance information, which must be based on the approved performance planning documents of the public entity. I have not evaluated the complete-ness and appropriateness of the performance indicators included in the planning documents. My procedures do not examine whether the actions taken by the public entity enabled service delivery. My procedures also do not extend to any disclosures or assertions relating to planned performance strategies and information in respect of futureperiodsthatmaybeincludedaspartofthereportedperformanceinformation.Accordingly,myfindingsdonot extend to these matters.

21. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developedfromtheperformancemanagementandreportingframework,asdefinedinthegeneralnotice,forthefollowing selected Programme presented in the Annual Performance Report of the public entity for the year ended 31 March 2020:

Programme Pages in Annual Performance Report

Programme 2: Animal Health, Production and Improvement Pages 31-32

22. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

23. Ididnotidentifyanymaterialfindingsontheusefulnessandreliabilityofthereportedperformanceinformationforthe following Programme:• Programme 2: Animal Health, Production and Improvement

Other matter24. I draw attention to the matter below.

Achievement of planned targets25. Refer to the Annual Performance Report on pages 28 to 44 for information on the achievement of planned targets

for the year and explanations provided for the under/over-achievement of a number of targets.

REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION

Introduction and scope

26. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report mate-rialfindingsonthecomplianceofthepublicentitywithspecificmattersinkeylegislation.Iperformedprocedurestoidentifyfindingsbutnottogatherevidencetoexpressassurance.

27. Thematerialfindingsoncompliancewithspecificmattersinkeylegislationareasfollows:


Annual Financial Statements28. Thefinancialstatementssubmittedforauditingwerenotpreparedinaccordancewiththeprescribedfinancialre-

porting framework and supported by full and proper records, as required by section 55(1)(a) and (b) of the PFMA. Materialmis-statementsidentifiedbytheauditorsinthesubmittedfinancialstatementswerenotadequatelycor-rectedandthesupportingrecordscouldnotbeprovidedsubsequently,whichresultedinthefinancialstatementsreceivingaqualifiedopinion.

Expenditure management29. EffectiveandappropriatestepswerenottakentopreventirregularexpenditureamountingtoR22576980as

disclosed on note 40 to the Annual Financial Statements, as required by section 51(1)(b)(ii) of the PFMA. Majority of the irregular expenditure was caused by non-compliance with Treasury Regulation 16A6.4

Consequence management30. Iwasunabletoobtainsufficientappropriateauditevidencethatdisciplinarystepsweretakenagainstofficialswho

had incurred fruitless and wasteful expenditure as required by section 51(1)(e)(iii) of the PFMA. This was due to proper and complete records not being maintained as evidence to support the investigations into fruitless and wasteful expenditure.

OTHER INFORMATION

31. The accounting authority is responsible for the other information. The other information comprises the informa-tionincludedintheAnnualReport.Theotherinformationdoesnotincludethefinancialstatements,theAuditor’sReportandthoseselectedProgrammespresentedintheAnnualPerformanceReportthathavebeenspecificallyreported on in this Auditor’s Report.

32. Myopiniononthefinancialstatementsandfindingsonthereportedperformance informationandcompliancewith legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

33. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether theotherinformationismateriallyinconsistentwiththefinancialstatementsandtheselectedProgrammespre-sented in the Annual Performance Report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

34. I did not receive the other information prior to the date of this Auditor’s Report. When I do receive and read this information, and if I conclude that there is a material mis-statement therein, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other informa-tion is not corrected, I may have to retract this Auditor’s Report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.

INTERNAL CONTROL DEFICIENCIES

35. Iconsideredinternalcontrolrelevanttomyauditofthefinancialstatements,reportedperformanceinformationand compliance with applicable legislation; however, my objective was not to express any form of assurance on it. Themattersreportedbelowarelimitedtothesignificantinternalcontroldeficienciesthatresultedinthebasisforthequalifiedopinionandthefindingsoncompliancewithlegislationincludedinthisreport.

36. Although the public entity has documented policies and procedures to guide its operations to support the un-derstanding and execution of internal control objectives, processes and responsibilities with regard to areas of responsibility,instancesofnon-compliancewiththepoliciesandprocedureswereidentified.Thesedeficienciesresultedinmultiplefindingsonfinancialstatementitemsandnon-compliancewithlegislation.Thiswasmainlyasaresultofinsufficientmonitoringcontrols.Compliancemonitoringcontrolsimplementedbythepublicentitywerenot adequate to prevent material non-compliance with key legislation.


37. Controlsoverthedailyandmonthlyprocessingoftransactionsdidnotpreventanddetectdeficienciesinsomeinstances. Action plans implemented by the public entity did not adequately address root causes of previously raisedauditfindings,asrepeatinternalcontroldeficiencieswereagainreported.

38. Controlstoensureaccurateandcompletefinancialreportswerenoteffectiveinpreventinganddetectingcontroldeficiencies.Theprocessingandreconcilingcontrolsimplementedbythepublicentityduringthefinancialyearwere ineffective,as theaccountingrecordsandschedulespresentedforauditingwere insome instancesnotaccurate and complete.

Pretoria30 September 2020


ANNEXURE: AUDITOR-GENERAL’S RESPONSIBILITY FOR THE AUDIT

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticismthroughoutmyauditof thefinancialstatementsand theproceduresperformedonreportedperfor-mance information for selected Programmes and on the public entity’s compliance with respect to the selected subject matters.

Financial statements

2. InadditiontomyresponsibilityfortheauditofthefinancialstatementsasdescribedinthisAuditor’sReport,Ialso:• identifyandassesstherisksofmaterialmis-statementofthefinancialstatements,whetherduetofraudor

error; design and perform audit procedures responsive to those risks; and obtain audit evidence that is suf-ficientandappropriatetoprovideabasisformyopinion.Theriskofnotdetectingamaterialmis-statementresulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, inten-tional omissions, misrepresentations or the override of internal control;

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessofthepublic entity’s internal control;

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting authority;

• conclude on the appropriateness of the accounting authority’s use of the going concern basis of accounting inthepreparationofthefinancialstatements.Ialsoconclude,basedontheauditevidenceobtained,wheth-eramaterialuncertaintyexistsrelatingtoeventsorconditionsthatmaycastsignificantdoubtontheabilityof the ARC to continue as a going concern. If I conclude that a material uncertainty exists, I am required to drawattentioninmyAuditor’sReporttotherelateddisclosuresinthefinancialstatementsaboutthemate-rialuncertaintyor,ifsuchdisclosuresareinadequate,tomodifymyopiniononthefinancialstatements.Myconclusions are based on the information available to me at the date of this Auditor’s Report. However, future events or conditions may cause a public entity to cease operating as a going concern; and

• evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,anddeterminewhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinaman-ner that achieves fair presentation.

Communication with those charged with governance

3. I communicate with the accounting authority regarding, among other matters, the planned scope and timing of the auditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatIidentifyduringmy audit.

4. IalsoconfirmtotheaccountingauthoritythatIhavecompliedwithrelevantethicalrequirementsregardingin-dependence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, actions taken to eliminate threats or safeguards applied.


3. ANNUAL FINANCIAL STATEMENTS

GENERAL INFORMATION________________________________________________________________________________________________

Country of incorporation and domicile South Africa

Nature of business and principal activities Conduct research, develop technology, and to trans-fer technology that promotes agriculture and industry

Registered office 1134 Park StreetHatfield0083

Business address 1134 Park StreetHatfield0083

Postal address P O Box 8783Pretoria0001

Controlling entity Department of Agriculture, Land Reform and Rural Development incorporated in South Africa

Economic entity Department of Agriculture, Land Reform and Rural Development incorporated in South Africa

Auditors Auditor-General of South Africa

Company secretary Ayanda Ndamase

INDEX________________________________________________________________________________________________ The reports and statements set out below comprise the Annual Financial Statements presented to the Council:

Index Page

Accounting Authority’s Responsibilities and Approval 176-177

Report of the Auditor-General 169-174

Statement of Financial Performance 178

Statement of Financial Position 179

Statement of Changes in Net Assets 180

Cash Flow Statement 180

Statement of Comparison of Budget and Actual Amounts 181

Accounting Policies 182-205

Notes to the Annual Financial Statements 205-233


ACCOUNTING AUTHORITY’S RESPONSIBILITIES AND APPROVAL________________________________________________________________________________________________

The Accounting Authority (Council) is required by the Public Finance Management Act (Act 1 of 1999) and the Agricul-tural Research Act (Act No. 86 of 1990, as amended), to maintain adequate accounting records and is responsible for thecontentandintegrityoftheAnnualFinancialStatementsandrelatedfinancialinformationincludedinthisreport.ItistheresponsibilityofthememberstoensurethattheAnnualFinancialStatementsfairlypresentthestateofaffairsoftheentityasattheendofthefinancialyearandtheresultsofitsoperationsandcashflowsfortheperiodthenended.Theexternal auditors are engaged to express an independent opinion on the Annual Financial Statements and were given unrestrictedaccesstoallfinancialrecordsandrelateddata.

The Annual Financial Statements have been prepared in accordance with Standards of Generally Recognised Account-ing Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.The Annual Financial Statements are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

TheCouncilacknowledgethattheyareultimatelyresponsibleforthesystemofinternalfinancialcontrolestablishedbythe entity and place considerable importance on maintaining a strong control environment. To enable the Council to meet these responsibilities, the accounting authority sets standards for internal control aimed at reducing the risk of error or deficitinacost-effectivemanner.Thestandardsincludetheproperdelegationofresponsibilitieswithinaclearlydefinedframework,effectiveaccountingproceduresandadequatesegregationofdutiestoensureanacceptablelevelofrisk.These controls are monitored throughout the ARC and all employees are required to maintain the highest ethical stan-dards in ensuring the entity’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the entity is on identifying, assessing, managing and monitoring all known forms of risk across the entity. While operating risk cannot be fully eliminated, the entity endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The Council are of the opinion, based on the information and explanations provided by management, that the system ofinternalcontrolprovidesreasonableassurancethatthefinancialrecordsmaybereliedonforthepreparationoftheAnnualFinancialStatements.However,anysystemof internalfinancialcontrolcanprovideonlyreasonable,andnotabsolute,assuranceagainstmaterialmis-statementordeficit.

TheCouncilhavereviewedtheentity’scashflowforecastfortheyearto31March2021and,inthelightofthisreviewandthecurrentfinancialposition,theyaresatisfiedthattheentityhas,orhasaccessto,adequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Thecashflowforecastswerebasedonthefollowingassumptions:

• Cash carried forward 01 April 2020 is based on the closing balance as at 31 March 2020;• It’s assumed that only 60% of the planned sale of goods and services will be realized respectively for the FY2021

and FY2022;• It’s assumed that the full Grant payments (current, capital and FMD) will be received as per the Allocation letter;• Interest income is estimated at R30 million per annum based on the ARC continued investments of excess funding

into CPD and short-term investments with the banks which provides better yields;• Employeecostscashflowsareestimatedat85%(FY2021)and70%(FY2022)oftheplannedcostsperBusiness

Plan;• Supplier payments are estimated at 60% (FY2021) and 100% (FY2022) of the planned operating expenditure; and• It is assumed that all capital grant will be spent in the year in which it is received. FMD spending is estimated at

R50 million (FY2021) and R100 million (FY2022).

The ARC Financial Statements are prepared based on the going concern assumption. This assumption presumes that fundswillbeavailabletofinancefutureoperationsandthattherealisationofassetsandsettlementofliabilities,contin-gent obligations and commitments will occur in the ordinary course of business. Management has considered a number of inputs in the annual going concern assessment for the year-ended 31 March 2020 and the following factors/consider-ations were made:

• Financial plans for the three years;• Solvency and liquidity test;• Contingent liabilities; and• Key ratios (if applicable).

Solvency and liquidity tests are performed in order to assess whether the Company’s assets exceeds its liabilities as well as assessing its ability to pay its debts as they become due in the ordinary course of business for a period of twelve months.


The solvency test entails that the assets of the Company, as fairly valued, equal or exceeds the liabilities of the Company. As at 31 March 2020, the ARC was considered solvent as the assets exceeded the liabilities by R1.6 billion. Therefore based on this assessment, it can be concluded that the ARC is solvent.

The liquidity test determines if the Company will appear to be able to pay its debts as they become due in the ordinary course of the business, for a projected period of twelve months. The ARC Cash position is positive with a favourable cash balance for both current and prior year. The ARC managed to reduce both the creditor payment period to 39 days (2019: 51 days) and debtor collection period to 157 days (2019: 196 days) showing a positive move to ensure that creditors are paid as they become due and ability to collect money owed at an improved rate. Subsequent to year end R60,4 million was received from Department of Agriculture, Forestry and Fisheries settling the long-outstanding debt.

ThefinancialplanthatwasinitiallysubmittedaspartoftheBusinessPlanfortheMTEFperiodFY2020/21toFY2022/23wasbasedonbusinessasusual(i.e.nottakingintoaccountthebenefitsfromtheFinancialSustainabilityplan).TheCOVID-19 lockdown was declared on 26 March 2020, and thus it did not have impact on the Annual Financial Statements for the year ended 31 March 2020.

COVID-19’seffectsaresubjecttosignificantlevelsofuncertainty.Itisanunprecedentedchallengeforhumanity,busi-ness and the economy at large. In order to further address the inherent uncertainty embedded in the current situation thattheARCandthecountryfindthemselvesin,managementhasconsideredthepotentialimpactsontheorganisationby taking a variety of risk elements into account and their impact on future business prospects as articulated in the MTEF FY2021-FY2023:

• Future revenue pipeline: It is assumed that 40% of the external income is at risk as thus highly unlikely to be achieved. This is estimated at an external income loss of R197 million and R247 million for the 2021 and 2022 financialyears,respectively;

• Impacts on the cost structures: The additional costs arising from the COVID-19 pandemic will be prioritised and catered for within the approved budget. The Operating Costs for FY2021 are estimated to be at 60% of the planned levels due to the delayed spending on core business;

• Impact of the reduction in the employee-related costs arising from the implementation of the ARC Sustainability andFinancialTurnaroundPlan.Theresultingsavingsisestimatedat15%and30%forthe2021and2022financialyears respectively; and

• Impactofthenonpaymentfromprivatecustomershasbeenconsiderednotsignificant.

Some of our clients may also face credit-related issues but, the Company’s assessment of credit risk is that that the ARC customer base is unrelated and concentration of credit risk with respect to trade receivables is limited.

Despitethepotentiallyconsiderableimpactofthispandemiconthe2021resultsandfinancialposition,theequityoftheARC is strong enough for the foreseeable future to absorb the economic shock caused by COVID-19. The ARC will be able to continue its operations and meet its liabilities as they fall due for at least the next twelve months. Therefore, the 2020 Annual Financial Statements have been established on a going concern basis.

The entity is mainly dependent on the government for continued funding of operations. In the event that the going con-cern assumption was not used, the Annual Financial Statements would have to be prepared on a liquidation basis. This assumescessationofoperations,whichwouldleadtoafiresaleofassets,ortheneedtoliquidateorcurtailmateriallythe scale of the entity.

Althoughtheaccountingauthorityisprimarilyresponsibleforthefinancialaffairsoftheentity,itissupportedbytheenti-ty’s external auditors.

The external auditors are responsible for independently reviewing and reporting on the entity’s Annual Financial State-ments. The Annual Financial Statements have been examined by the entity’s external auditors and their report is pre-sented on pages 171 to 175.

The Annual Financial Statements set out on pages 176 to 232, which have been prepared on the going concern basis, were approved by the accounting authority on 30 September 2020 and were signed on its behalf by:

_______________________________ ______________________________

Ms J Isaacs Dr SR MoephuliChairperson President and CEO


STATEMENT OF FINANCIAL PERFORMANCE________________________________________________________________________________________________Figures in Rand Notes 2020 2019 Restated*

Revenue Revenue from exchange transactions Sale of goods in agricultural activities Rendering of services Royalty income Rental of facilities and equipment Bad debts recovered Other income Interest received Dividends received

44

17 516 561266 227 20727 290 90519 556 1461 124 782

27 746 23319 441 866

136 972

20 073 297278 476 20936 202 65018 489 313

-23 481 843

7 305 630703 193

Total revenue from exchange transactions 379 040 672 384 732 135Revenue from non-exchange transactionsTransfer revenueGovernment grants

5 978 339 783 929 050 026

Total revenue 3 1 357 380 455 1 313 782 161ExpenditureEmployee-related costsDepreciation and amortisationFinance costsLease rentals on operating leaseOperating and administrative expensesRepairs and maintenance

678910

(795 041 357)(81 914 130)

(219 869)(9 865 553)

(360 094 021)(30 293 028)

(818 814 230)(73 196 568)

(92 222)(21 323 282)

(361 497 792)(23 702 456)

Total expenditure (1 277 427 958) (1 298 626 550)Operating surplus Gain on disposal of assets and liabilities Gain on foreign exchange Fair value adjustment on other financial assets at fairvalue Actuarial gains/losses Gain on biological assets and ag-ricultural produce Reversal of impairments (Impairment loss) Inventories losses/write downs

241112

79 952 4971 926 700

782 334(1 762 441)

2 249 6389 199 407

30 265 350(618 175)

15 155 611401 120439 745

(746 677)464 820

1 712 487(38 201 676)(4 698 681)

42 042 813 (40 628 862)Surplus (deficit) for the year 121 995 310 (25 473 251)

* See Note 35


STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2020________________________________________________________________________________________________Figures in Rand Notes 2020 2019 Restated*

Assets Current AssetsInventoriesReceivables from exchange transactionsCash and cash equivalents

131415

24 375 747132 014 635245 935 648

16 096 904174 656 73276 348 179

402 326 030 267 101 815Non Current AssetsBiological assetsInvestment propertyProperty, plant and equipmentIntangible assetsHeritage assetsOtherfinancialassets

161718192021

1 176 2013 092 661

1 738 347 02616 577 552

223 1673 215 862

746 5463 139 480

1 373 655 45822 795 138

223 1674 982 778

1 762 632 469 1 405 542 567Total Assets 2 164 958 499 1 672 644 382LiabilitiesCurrent LiabilitiesOperating lease liabilityPayables from exchange transactionsVAT payableProvisions

22

23

7 699311 932 685

2 482 142-

-363 869 647

8 170 16590 469

314 422 526 372 130 281Non Current LiabilitiesEmployeebenefitobligationUnspent conditional grants

2425

10 570 000237 992 966

13 491 000126 154 331

248 562 966 139 645 331Total Liabilities 562 985 492 511 775 612Net Assets 1 601 973 007 1 160 868 770Capital fundsRevaluation reserveSelf insurance reserveAccumulated surplus

2627

111 986 013535 167 214

6 304 348948 515 432

111 986 013215 020 431

3 043 478830 818 848

Total Net Assets 1 601 973 007 1 160 868 770

* See Note 35


STATEMENT OF CHANGES IN NET ASSETS________________________________________________________________________________________________Figures in Rand Notes 2020 2019 Restated*

Figures in Rand Capital funds

Revaluation reserve

Insurance reserve

Total reserves

Accumulated surplus

Total net assets

Balance at 01 April 2018Changes in net assets(Deficit)fortheyearTransfer from retained earningsDecrease in reservesGains (losses) from mergers or transfer of functions between entities under common control

111 986 013

----

215 020 431

----

3 043 478

-2 644 015

(2 644 015)-

218 063 909

-2 644 015

(2 644 015)-

846 235 607

(25 473 251)(2 644 015)

-12 700 507

1 176 285 529

(25 473 251)-

(2 644 015)12 700 507

Total changes - - - - (15 416 759) (15 416 759)Opening balance as previously reported adjustmentsPrior year adjustments (Note 35)

111 986 013-

215 020 431-

3 043 478-

218 063 909-

692 375 804138 443 046

1 022 425 726138 443 046

Restated* Balance at 01 April 2019 as restated*Changes in net assetsRevaluation of land

111 986 013

-

215 020 431

320 146 783

3 043 478

-

218 063 909

320 146 783

830 818 850

-

1 160 868 772

320 146 783

Net income (losses) recognised directly in net assetsSurplus/(Deficit)fortheyear

--

320 146 783-

--

320 146 783-

-121 995 310

320 146 783121 995 310

Total recognised income and expenses for the yearTransfer from retained earningsDecrease in reserves

---

320 146 783--

-4 298 728

(1 037 858)

320 146 7834 298 728

(1 037 858)

121 995 310(4 298 728)

-

442 142 093-

(1 037 858)

Total changes - 320 146 783 3 260 870 323 407 653 117 696 582 441 104 235Balance at 31 March 2020 111 986 013 535 167 214 6 304 348 541 471 562 948 515 432 1 601 973 007Note(s) 26 27

CASH FLOW STATEMENT

Cash flows from operating activities ReceiptsSale of goods and servicesGrantsInterest incomeDividends received

400 133 8331 090 178 418

19 441 866136 972

360 171 678928 449 550

7 305 630197 845

1 509 891 089 1 296 124 703PaymentsEmployee costsSuppliersFinance costs

(787 753 246)(463 569 988)

(219 869)

(804 711 181)(419 339 045)

(92 222)(1 251 543 103) (1 224 142 448)

Net cash flows from operating activities 28 258 347 986 71 982 255Cash flows from investing activitiesPurchase of property, plant and equipmentProceeds from sale of property, plant and equipmentPurchase of other intangible assetsTransfer of functions between entities under common control Proceedsfromsaleoffinancialassets

18181931

(90 055 491)2 313 363

(1 020 336)-

1 947

(64 818 169)732 626

(893 956)1 041 940

-Net cash flows used in investing activities (88 760 517) (63 937 559)Net increase in cash and cash equivalentsCash and cash equivalents at the beginning of the year

169 587 46976 348 179

8 044 69668 303 483

Cash and cash equivalents at the end of the year 15 245 935 648 76 348 179

* See Note 35


STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS

Budget on Accrual Basis

Figures in Rand Approved budget

Adjust-ments Final Budget

Actual amounts on compara-

ble basis

Difference be-tween final bud-get and actual

Refer-ence

Statement of Financial PerformanceRevenueRevenue from exchange transactionsSale of goods in agricultural activitiesRendering of servicesRoyalty incomeRental of facilities and equipmentRecoveriesOther incomeInterest receivedDividends received

30 793 944328 711 12828 700 92846 847 937

-7 916 163

13 280 000-

--------

30 793 944328 711 12828 700 92846 847 937

-7 916 163

13 280 000-

17 516 561266 227 20727 290 90519 556 1461 124 782

27 746 23319 441 866

136 972

(13 277 383)(62 483 921)(1 410 023)

(27 291 791)1 124 782

19 830 0706 161 866

136 972

#1#2#3#4#5#6#7#8

Total revenue from exchange transactions 456 250 100 - 456 250 100 379 040 672 (77 209 428)Revenue from non-exchange transactionsTransfer revenueGovernment grants 1 089 902 609 - 1 089 902 609 978 339 783 (111 562 826) #9

Total revenue 1 546 152 709 - 1 546 152 709 1 357 380 455 (188 772 254)ExpenditurePersonnelDepreciation and amortisationImpairment loss/Reversal of impairments Finance costsLease rentals on operating leaseOperating and administrative expenses

(812 928 000)(46 466 884)

(2 000)

(959 608)(20 906 046)

(475 864 052)

---

---

(812 928 000)(46 466 884)

(2 000)

(959 608)(20 906 046)

(475 864 052)

(795 041 357)(81 914 130)

30 265 350

(219 869)(9 865 553)

(390 387 049)

17 886 643(35 447 246)

30 267 350

739 73911 040 49385 477 003

#10#11#12

#13#14#15

Total expenditure (1 357 126 590) - (1 357 126 590) (1 247 162 608) 109 963 982Operating surplusGain on disposal of assets and liabilitiesGain on foreign exchangeFair value adjustmentsActuarial gains/lossesGain on biological assets and agricultural produceInventories losses/write downs

189 026 1191 450 000

----

-

------

-

189 026 1191 450 000

----

-

110 217 8471 926 700

782 334(1 762 441)

2 249 6389 199 407

(618 175)

(78 808 272)476 700782 334

(1 762 441)2 249 6389 199 407

(618 175)

#16#17#18

#19

1 450 000 - 1 450 000 11 777 463 10 327 463Surplus before taxation 190 476 119 - 190 476 119 121 995 310 (68 480 809)Net Surplus/(Deficit)Capital expenditure

190 476 119(214 204 000)

-(12 200 000)

190 476 119(226 404 000)

121 995 310(90 055 491)

(68 480 809)136 348 509 #20

Net Operational Surplus/(Deficit) (23 727 881) (12 200 000) (35 927 881) 31 939 819 67 867 700Narration area#1 Due to demand being less than anticipated as well as cancellation of some projects.#2 Due to demand being less than anticipated as well as a delay to the start of some projects. #3 Royalty loss at some Campuses, received lower amounts than expected.#4 ARC facilities were not rented out as frequently as was initially expected.#5 Bad debts were recovered.#6 Higher sales were achieved for items such as blood vaccines.#7 Interest revenue generated from investing PG and FMD funds received in advance.#8Dividendswerenotexpectedinthecurrentfinancialyear.#9 The variance is due to operational expenses that were recognised in respect of the Food and Mouth Disease (FMD) project.#10Duetosomevacanciesnotbeingfilled.#11Depreciationoncomputerequipmentishigherbecausetheequipmentwasboughtandnolongerleased,infrastructuresignificantlyhigherthananticipatedduetoreclassification,theminorassetswerenotbudgetedforastheywerenotpartoftheCOAatthebudgetingstage.#12Thevarianceisasaresultoflandvaluationsthatwereperformedinthecurrentfinancialyear.#13 Less interest was paid, timely payments therefore avoiding interest charges.#14 ICT equipment was aqcuired instead of being leased (laptops that needed to be upgraded).#15 Saving in operating and administrative expenses, is linked to the under-performing external income.#16 More assets were sold than anticipated.#17 Fluctuation in currencies.#18 Variance in Fair Value Adjustment is mainly because of the impact of COVID-19 on the markets, especially the wine industry related share values.#19 The variance is as a result of recognition of biological assets in the year under review.

#20 In the budget the FMD amount is included which is ring-fenced and will be expensed over multiple years. Additionally there were delays in SCM

processes.


ACCOUNTING POLICIES________________________________________________________________________________________________

1. PRESENTATION OF ANNUAL FINANCIAL STATEMENTS

The Annual Financial Statements have been prepared in accordance with the Standards of Generally Recognised Ac-counting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act (Act 1 of 1999).

These Annual Financial Statements have been prepared on an accrual basis of accounting and are in accordance with historicalcostconventionasthebasisofmeasurement,unlessspecifiedotherwise.TheyarepresentedinSouthAfricanRand, rounded to the nearest Rand.

Assets,liabilities,revenuesandexpenseswerenotoffset,exceptwhereoffsettingiseitherrequiredorpermittedbyaStandardofGRAP.Theaccountingpoliciesappliedareconsistentwiththoseusedtopresentthepreviousyear’sfinan-cial statements, except where a change in accounting policy has been recorded.

Asummaryofthesignificantaccountingpolicies,whichhavebeenconsistentlyappliedinthepreparationoftheseAnnualFinancial Statements, are disclosed below.

These accounting policies are consistent with the previous period.

1.1 Entity information

The ARC is a national government business enterprise (enacted by the Agricultural Research Act,1990 (Act 86 of 1990, as amended) domiciled in the Republic of South Africa.

1.2 Presentation currency

These Annual Financial Statements are presented in South African Rand, which is the functional currency of the entity.

1.3 Going concern assumption

These Annual Financial Statements have been prepared on a going concern basis, and that the ARC will continue in operation and meet its obligations for at least the next 12 months.

1.4 Significant judgements and sources of estimation uncertainty

InpreparingtheAnnualFinancialStatements,managementisrequiredtomakeestimatesandassumptionsthataffectthe amounts represented in the Annual Financial Statements and related disclosures. Use of available information and theapplicationofjudgementisinherentintheformationofestimates.ActualresultsinthefuturecoulddifferfromtheseestimateswhichmaybematerialtotheAnnualFinancialStatements.Significantjudgementsinclude:

Other sources of estimation uncertainty and/or relating information, have been disclosed in the relating notes:

Impairment testingThe entity reviews and tests the carrying value of current and non-current assets when events or changes in circumstanc-essuggestthatthecarryingamountmaynotberecoverable.Assetsaregroupedatthelowestlevelforwhichidentifiablecashflowsarelargelyindependentofcashflowsofotherassetsandliabilities.Ifthereareindicationsthatimpairmentmayhaveoccurred,estimatesarepreparedofexpectedfuturecashflowsforeachgroupofassets.Expectedfuturecashflowsusedtodeterminethevalueinuseoftangibleassetsareinherentlyuncertainandcouldmateriallychangeovertime.Theyaresignificantlyaffectedbyanumberoffactorsincludingsupply,demandandothereconomicfactors.

ProvisionsProvisions were raised and management determined an estimate based on the information available. Additional disclo-sure of these estimates of provisions are included in note 23 Provisions. Property, plant and equipment and intangible assetsProperty, plant and equipment and intangible assets are depreciated over their useful lives, taking into account residual values, where appropriate. The entity’s management determines useful lives, residual values and related depreciation charges for its property, plant and equipment (Including biological assets held for research) and intangible assets with referencetotheestimatedperiodsthattheentityintendstoderivefutureeconomicbenefitsfromtheuseoftheseassets.


The useful lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset useful lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Post-retirement benefitsTheentity’spost-retirementbenefits relate topost-retirementmedicalaidbenefits.Thepresentvalueof thepost-re-tirement obligation depends on a number of factors that are determined on an actuarial basis using a number of as-sumptions. The assumptions used in determining the net cost (income) include the discount rate. Any changes in these assumptions will impact on the carrying amount of post-retirement obligations.

The entity determines the appropriate discount rate at the end of each year. This is the interest rate that should be used todeterminethepresentvalueofestimatedfuturecashoutflowsexpectedtoberequiredtosettlepensionobligations.Indetermining the appropriate discount rate, the entity considers the interest rates of high quality corporate bonds that are denominatedinthecurrencyinwhichthebenefitswillbepaid,andthathavetermstomaturityapproximatingthetermsof the related pension liability.

Other key assumptions for pension obligations are based on current market conditions. Additional information is dis-closed in Note 24.

Biological AssetsIn measuring fair value of biological assets, management estimates and judgements are required for determination of fair value. The determination of the fair value of a biological asset or agricultural produce may be facilitated by grouping biologicalassetsoragriculturalproduceaccordingtothesignificantattributesoftheasset;e.g.sortedbyageorquality.The Company selects the attributes corresponding to the attributes used in the market as a basis for pricing.

If an active market exists for a biological asset or agricultural produce, the quoted market price is appropriate for deter-mining the fair value.

Stage of completionIn determining the stage of completion of a research project, management estimates the stage of completion based on work completed as assessed by project leaders. This is then compared with costs incurred to date with appropriate rev-enuerecognitionprocessedinthestatementoffinancialperformance.Considerationisgiventoanyarrangementswithfunderstooffsetanycostsincurredinexcessofbudgetedamounts.

Capitalisation of intellectual propertyARC generates royalty revenue from Intellectual Property (IP) including Plant Breeders’ Rights, Patents and a Design arising from research conducted (either by ARC employees or funded by ARC or research collaboration or industry funding). These are internally-generated intangible assets, however, they arise as a result of research activities and not development activities as envisioned by paragraph 52 of GRAP 31.

ARC protects the IP in terms of the Act by registering the results of the research (either an improved variant or cultivars or other products) with the relevant authorities. ARC protects the IP in terms of the Intellectual Property Rights from Pub-licly Financed Research and Development Act of 2008. It is a requirement to protect IP as a publicly-funded institution.

ARC does not intend to sell the IP nor to use the IP for its own use but rather holds the IP for use by third parties and earns royalties from the IP. The object from the results of the research conducted by the ARC (either through employees orfundedresearchbytheARC)isgenerallytoimprovefarmingquality,eitherthroughmorecost-effectivetechniques,better yield and/or better quality of product for all levels of farming including Small and Medium Enterprises.

Consequently,theARCdoesnotrecogniseanyinternally-generatedintangibleassetsinthestatementoffinancialposi-tion but expenses all research costs when incurred.

1.5 Transfer of functions between entities under common control

Definitions An acquirer is the entity that obtains control of the acquiree or transferor.

Carryingamountofanassetorliabilityistheamountatwhichanassetorliabilityisrecognisedinthestatementoffinan-cial position.

Controlisthepowertogovernthefinancialandoperatingpoliciesofanotherentitysoastobenefitfromitsactivities.

A function is an integrated set of activities that is capable of being conducted and managed for purposes of achieving an


entity’sobjectives,eitherbyprovidingeconomicbenefitsorservicepotential.

A merger is the establishment of a new combined entity in which none of the former entities obtains control over any other andnoacquirercanbeidentified.

Transfer date is the date on which the acquirer obtains control of the function and the transferor loses control of that function.

A transfer of functions is the reorganisation and/or the re-allocation of functions between entities by transferring functions between entities or into another entity.

A transferor is the entity that relinquishes control of a function.

Common control - For a transaction or event to occur between entities under common control, the transaction or event needs to be undertaken between entities within the same sphere of government or between entities that are part of the same economic entity. Entities that are ultimately controlled by the same entity before and after the transfer of functions are within the same economic entity.

A function is an integrated set of activities that is capable of being conducted and managed for purposes of achieving an entity‘sobjectives,eitherbyprovidingeconomicbenefitsorservicepotential.Afunctionconsistsofinputsandprocessesapplied to those inputs that have the ability to create outputs. A function can either be a part or a portion of an entity or can consist of the whole entity. Although functions may have outputs, outputs are not required to qualify as a function. Thethreeelementsofafunctionaredefinedasfollows:

• Input: Any resource that creates, or has the ability to create, outputs when one or more processes are applied to it;• Process: Any system, standard, protocol, convention or rule that when applied to an input or inputs, creates or has

the ability to create outputs; and• Output:Theresultofinputsandprocessesappliedtoachieveandimproveefficiency.Thismaybeintheformof

achieving service delivery objectives, or the delivery of goods and/or services.

Identifying the acquirer and transferor Foreachtransferoffunctionsbetweenentitiesundercommoncontrolanacquirerandtransferorareidentified.Allrele-vant facts and circumstances are considered in identifying the acquirer and transferor.

The terms and conditions of a transfer of functions undertaken between entities under common control are set out in a binding arrangement. The binding arrangement governing the terms and conditions of a transfer of functions may identify which entity to the transaction or event is the transferor(s) and which entity is the acquirer. Where the binding arrange-ment does not clearly identify the acquirer or the transferor, the behaviour or actions of the entities may indicate which entity is the acquirer and which entity is the transferor.

Determining the acquirer includes a consideration of, amongst other things, which of the entities involved in the transfer of functions initiated the transaction or event, the relative size of the entities, as well as whether the assets or revenue of oneoftheentitiesinvolvedinthetransactionoreventsignificantlyexceedthoseoftheotherentities.Ifnoacquirercanbeidentified,thetransactionoreventisaccountedforintermsoftheStandardofGRAPonMergers.

Determining the transfer date The acquirer and the transferor identify the transfer date, which is the date on which the acquirer obtains control and the transferor loses control of that function.

All relevant facts and circumstances are considered in identifying the transfer date. Assets acquired [transferred] and liabilities assumed [relinquished] The recognition of assets and liabilities is subject to the following conditions:

The assets acquired and the liabilities assumed are part of what had been agreed in terms of the binding arrangement (if applicable), rather than the result of separate transactions.

Determining what is part of the transfer of functions transaction Where the entity and the transferor have a pre-existing relationship before or when negotiations for a transfer of func-tions began, or where a binding arrangement is entered into during the negotiations that are separate from a transfer offunctions,anyamountsthatarenotpartofwhatweretransferredinatransferoffunctions,areidentified.Thispolicyonly applies to the consideration transferred and the assets acquired and liabilities assumed in a transfer of functions as governed by the terms and conditions of the binding arrangement.


The following factors are considered, which are neither mutually exclusive nor individually conclusive, to determine whether a transaction is part of a transfer or function or whether the transaction is separate:

• the reasons for the transaction; and• the timing of the transaction.

Accounting by the entity as acquirer

Initial recognition and measurement As of the transfer date, the entity recognises the purchase consideration paid to the transferor and all the assets acquired and liabilities assumed in a transfer of functions. The assets acquired and liabilities assumed are measured at their car-rying amounts.

If, prior to the transfer of functions, the transferor was not applying the accrual basis of accounting, the transferor changes its basis of accounting to the accrual basis of accounting prior to the transfer.

The consideration paid by the entity can be in the form of cash, cash equivalents or other assets. If the consideration paid is in the form of other assets, the entity recognises such assets on the transfer date at their carrying amounts.

Thedifferencebetweenthecarryingamountsoftheassetsacquired,theliabilitiesassumedandtheconsiderationpaidtothetransferor,isrecognisedinaccumulatedsurplusordeficit.

Measurement period If the initial accounting for a transfer of functions is incomplete by the end of the reporting period in which the transfer occurs, the entity reports in its Annual Financial Statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, the entity retrospectively adjusts the provisional amounts recognised at the transferdatetoreflectnewinformationobtainedaboutfactsandcircumstancesthatexistedasofthetransferdateand,ifknown,wouldhaveaffectedthemeasurementoftheamountsrecognisedasofthatdate.Themeasurementperiodends as soon as the entity receives the information it was seeking about facts and circumstances that existed as of the transfer date or learns that more information is not obtainable. However, the measurement period does not exceed two years from the transfer date.

The entity considers all relevant factors in determining whether information obtained after the transfer date should result in an adjustment to the provisional amounts recognised or whether that information results from events that occurred after the transfer date.

The entity recognises an increase/(decrease) in the provisional amount recognised for an asset/(liability) by means of decreasing/(increasing) the excess of the purchase consideration paid over the carrying amount of the assets acquired and liabilities assumed previously recognised in accumulated surplus or deficit. However, new information obtainedduring the measurement period may sometimes result in an adjustment to the provisional amount of more than one asset or liability.

During the measurement period, the entity recognises adjustments to the provisional amounts as if the accounting for the transfer of functions had been completed at the transfer date. Thus, the entity revises comparative information for prior periods presented in Annual Financial Statements as needed, including making any change in depreciation, amortisation orotherincomeeffectsrecognisedincompletingtheinitialaccounting. After the measurement period ends, the entity revises the accounting for a transfer of functions only to correct an error in accordance with the Standard of GRAP on Accounting Policies, Changes in Accounting Estimates and Errors.

Subsequent measurement The entity subsequently measures any assets acquired and any liabilities assumed in a transfer of functions in accor-dance with the applicable Standards of GRAP.

Atthetransferdate,theentityclassifiesordesignatestheassetsacquiredandliabilitiesassumedasnecessarytoapplyotherStandardsofGRAPsubsequently.Theentitymakesthoseclassificationsordesignationsonthebasisofthetermsof the binding arrangement, economic conditions, its operating or accounting policies and other relevant conditions that existatthetransferdate.Anexceptionisthattheentityclassifiesthefollowingcontractsonthebasisofthecontractualtermsandotherfactorsattheinceptionofthecontract(or,ifthetermsofthecontracthavebeenmodifiedinamannerthatwouldchangeitsclassification,atthedateofthatmodification,whichmightbethetransferdate):

• classificationofaleasecontractaseitheranoperatingleaseorafinanceleaseinaccordancewiththeStandardof GRAP on Leases; and

• classificationofacontractasaninsurancecontractinaccordancewiththeInternationalFinancialReportingStan-dard on Insurance Contracts.


1.6 Biological assets

The entity recognises biological assets or agricultural produce when, and only when:• the entity controls the asset as a result of past events;• itisprobablethatfutureeconomicbenefitsorservicepotentialassociatedwiththeassetwillflowtotheentity;and• the fair value or cost of the asset can be measured reliably.

Biological assets are measured at their fair value less costs to sell.

The fair value of livestock is determined based on market prices of livestock of similar age, breed, and genetic merit.

The fair value of milk is determined based on market prices in the local area.

The fair value of the vine/pine plantations is based on the combined fair value of the land and the vines/pine trees.

The fair value of the raw land and land improvements is then deducted from the combined fair value to determine the fair value of the vines/pine trees.

A gain or loss arising on initial recognition of biological assets or agricultural produce at fair value less costs to sell and fromachangeinfairvaluelesscoststosellofbiologicalassetsisincludedinsurplusordeficitfortheperiodinwhichitarises.

Wheremarket-determinedpricesorvaluesarenotavailable,thepresentvalueoftheexpectednetcashinflowsfromtheasset, discounted at a current market-determined pre-tax rate, where applicable, is used to determine fair value.

1.7 Investment property

Investment property is property (land or a building or part of a building or both) held to earn rentals or for capital appre-ciation or both, rather than for:

• use in the production or supply of goods or services;• administrative purposes; or • sale in the ordinary course of operations.

Owner-occupied property is property held for use in the production or supply of goods or services or for administrative purposes.

Investmentpropertyisrecognisedasanassetwhen,itisprobablethatthefutureeconomicbenefitsorservicepotentialthatareassociatedwiththeinvestmentpropertywillflowtotheentity,andthecostorfairvalueoftheinvestmentpropertycan be measured reliably.

Investment property is initially recognised at cost. Transaction costs are included in the initial measurement.

Where investment property is acquired through a non-exchange transaction, its cost is its fair value as at the date of acquisition.

Costs include costs incurred initially and costs incurred subsequently to, add to, or to replace a part of, or service a property. If a replacement part is recognised in the carrying amount of the investment property, the carrying amount of the replaced part is derecognised.

Cost modelInvestment property is carried at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided to write down the cost, less estimated residual value by equal installments over the useful life of the property, which is as follows:

Item Useful lifeProperty buildings 40 to 70 years

Investment property is derecognised on disposal or when the investment property is permanently withdrawn from use andnofutureeconomicbenefitsorservicepotentialareexpectedfromitsdisposal.

The entity separately discloses expenditure to repair and maintain investment property in the notes to the Annual Finan-cial Statements (see note 17).


1.8 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets and biological assets used for research) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

Property,plantandequipmentcompriseofland,buildings,machineryandfarmingequipment,officefurnitureandequip-ment,motorvehiclesandaircraft,computerequipment,infrastructure,laboratoryequipment,bearerplants,buffaloandhorse.

The cost of an item of property, plant and equipment is recognised as an asset when:• itisprobablethatfutureeconomicbenefitsorservicepotentialassociatedwiththeitemwillflowtotheentity;and• the cost of the item can be measured reliably.

Property, plant and equipment are initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item’s fair value was not determinable, it’s deemed cost is the carrying amount of the asset(s) given up.

Whensignificantcomponentsofanitemofproperty,plantandequipmenthavedifferentusefullives,theyareaccountedfor as separate items (major components) of property, plant and equipment.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

ThefruittreesarebearerplantsunderthedefinitioninStandardofGRAP27Agricultureandthereforepresentedandaccounted for as property, plant and equipment. Costs capitalised to bearer assets (Fruit trees: i.e banana, deciduous fruit and macadamia trees) include all direct costs of land preparation and planting.

Itemssuchasspareparts,standbyequipmentandservicingequipmentarerecognisedwhentheymeetthedefinitionof property, plant and equipment.

Property, plant and equipment are carried at cost less accumulated depreciation and any impairment losses. Land is stated at revalued amount.

Property, plant and equipment are carried at revalued amount, being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset.

Any increase in an asset’s carrying amount, as a result of a revaluation, is credited directly to a revaluation surplus.

Theincreaseisrecognisedinsurplusordeficittotheextentthatitreversesarevaluationdecreaseofthesameassetpreviouslyrecognisedinsurplusordeficit.

Therevaluationsurplusinequityrelatedtoaspecificitemofproperty,plantandequipmentistransferreddirectlytore-tained earnings when the asset is derecognised.


Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value. The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful lifeBuildings Straight line 3 to 70 yearsMachinery and farming equipment Straight line 3 to 60 yearsOfficefurnitureandequipment Straight line 5 to 30 yearsMotor vehicles and aircraft Straight line 4 to 20 yearsComputer equipment Straight line 3 to 15 yearsInfrastructure Straight line 10 to 60 yearsLaboratory equipment Straight line 5 to 60 yearsBearer plants Straight line 4 to 50 yearsBuffalo Straight line 23 yearsHorse Straight line 30 years

The depreciable amount of an asset is allocated on a systematic basis over its useful life.

Eachpartofanitemofproperty,plantandequipmentwithacostthatissignificantinrelationtothetotalcostoftheitemis depreciated separately.

The entity assesses at each reporting date whether there is any indication that the entity’s expectations about the resid-ual value and the useful life of an asset have changed since the preceding reporting date. If any such indication exists, the entity revises the expected useful life and/or residual value accordingly. The change is accounted for as a change in an accounting estimate.

Thedepreciationchargeforeachperiodisrecognisedinsurplusordeficitunlessitisincludedinthecarryingamountofanother asset.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economicbenefitsorservicepotentialexpectedfromtheuseoftheasset.

Thegainorlossarisingfromthederecognitionofanitemofproperty,plantandequipmentisincludedinsurplusordeficitwhen the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equip-mentisdeterminedasthedifferencebetweenthenetdisposalproceeds,ifany,andthecarryingamountoftheitem.

Theentityseparatelydisclosesexpendituretorepairandmaintainproperty,plantandequipmentinthenotestothefi-nancial statements (see note 18).

Theentitydisclosesrelevantinformationrelatingtoassetsunderconstructionordevelopment,inthenotestothefinan-cial statements (see note 18). 1.9 Intangible assets

An intangible asset is recognised when:• itisprobablethattheexpectedfutureeconomicbenefitsorservicepotentialthatareattributabletotheassetwill

flowtotheentity;and• the cost or fair value of the asset can be measured reliably.

Theentityassessestheprobabilityofexpectedfutureeconomicbenefitsorservicepotentialusingreasonableandsup-portable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measured at its fair value as at that date.

The entity has registered a number of patents, Plant Breeders’ Rights and designs emanating from the research conduct-ed or funded by the ARC in terms of the Agricultural Research Act (as amended), in order to protect the IP derived from research. ARC does not capitalize the research costs incurred, but expenses these costs in terms of GRAP 31: Intangible Assets, as the criterion to capitalize these assets as development costs have not been met.


Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

An intangible asset arising from development (or from the development phase of an internal project) is recognised when:• it is technically feasible to complete the asset so that it will be available for use or sale;• there is an intention to complete and use or sell it;• there is an ability to use or sell it;• itwillgenerateprobablefutureeconomicbenefitsorservicepotential;• thereareavailabletechnical,financialandotherresourcestocompletethedevelopmentandtouseorsellthe

asset; and• the expenditure attributable to the asset during its development can be measured reliably.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

Anintangibleassetisregardedashavinganindefiniteusefullifewhen,basedonallrelevantfactors,thereisnoforesee-ablelimittotheperiodoverwhichtheassetisexpectedtogeneratenetcashinflowsorservicepotential.Amortisationisnot provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Reassessingtheusefullifeofanintangibleassetwithafiniteusefullifeafteritwasclassifiedasindefiniteisanindicatorthat the asset may be impaired. As a result, the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Depreciation method Average useful lifeComputer software Straight line 3 to 10 years

Theentitydisclosesrelevantinformationrelatingtoassetsunderconstructionordevelopment,inthenotestothefinan-cial statements (see note 18).

Intangible assets are derecognised:• on disposal; or• whennofutureeconomicbenefitsorservicepotentialareexpectedfromitsuseordisposal.

Thegainor lossarisingfromthederecognitionof intangibleassetsis includedinsurplusordeficitwhentheasset isderecognised (unless the Standard of GRAP on leases requires otherwise on a sale and leaseback). 1.10 Heritage assets

Carrying amount is the amount at which an asset is recognised after deducting accumulated impairment losses.

Class of heritage assets means a grouping of heritage assets of a similar nature or function in an entity’s operations that is shown as a single item for the purpose of disclosure in the Annual Financial Statements.

Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially rec-ognisedinaccordancewiththespecificrequirementsofotherStandardsofGRAP.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Heritageassetsareassetsthathaveacultural,environmental,historical,natural,scientific,technologicalorartisticsig-nificanceandareheldindefinitelyforthebenefitofpresentandfuturegenerations.

An impairment loss of a non-cash-generating asset is the amount by which the carrying amount of an asset exceeds its recoverable service amount.


Theentitydisclosesrelevantinformationrelatingtoassetsunderconstructionordevelopment,inthenotestothefinan-cial statements (see note 18).

RecognitionTheentityrecognisesaheritageassetasanassetifitisprobablethatfutureeconomicbenefitsorservicepotentialas-sociatedwiththeassetwillflowtotheentity,andthecostorfairvalueoftheassetcanbemeasuredreliably.

Initial measurementHeritage assets are measured at cost.Where a heritage asset is acquired through a non-exchange transaction, its cost is measured at its fair value as at the date of acquisition.

Subsequent measurementAfter recognition as an asset, a class of heritage assets is carried at its cost less any accumulated impairment losses.

ImpairmentThe entity assesses at each reporting date whether there is an indication that heritage assets may be impaired. If any such indication exists, the entity estimates the recoverable amount or the recoverable service amount of the heritage asset.

DerecognitionTheentityderecognisesheritageassetsondisposal;orwhennofutureeconomicbenefitsorservicepotentialareex-pected from its use or disposal.

Thegainor lossarising from thederecognitionofaheritageasset is included insurplusordeficitwhen the item isderecognised (unless the Standard of GRAP on leases requires otherwise on a sale and leaseback). 1.11 Financial instruments

Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityoraresidualinterest of another entity.

Theamortisedcostofafinancialassetorfinancialliabilityistheamountatwhichthefinancialassetorfinancialliabilityismeasuredatinitialrecognitionminusprincipalrepayments,plusorminusthecumulativeamortisationusingtheeffectiveinterestmethodofanydifferencebetweenthatinitialamountandthematurityamount,andminusanyreduction(directlyor through the use of an allowance account) for impairment or uncollectibility.

Creditriskistheriskthatonepartytoafinancialinstrumentwillcauseafinanciallossfortheotherpartybyfailingtodischarge an obligation.

Currencyriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesin foreign exchange rates.

Derecognitionistheremovalofapreviouslyrecognisedfinancialassetorfinancialliabilityfromanentity’sstatementoffinancialposition.

Theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofafinancialassetorafinancialliability(orgroupoffinancialassetsorfinancialliabilities)andofallocatingtheinterestincomeorinterestexpenseovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashpaymentsorreceiptsthroughtheexpectedlifeofthefinancialinstrumentor,whenappropriate,ashorterperiodtothenetcarryingamountofthefinan-cialassetorfinancialliability.Whencalculatingtheeffectiveinterestrate,anentityshallestimatecashflowsconsideringallcontractualtermsofthefinancialinstrument(forexample,prepayment,callandsimilaroptions)butshallnotconsiderfuture credit losses. The calculation includes all fees and points paid or received between parties to the contract that areanintegralpartoftheeffectiveinterestrate(seetheStandardofGRAPonRevenuefromExchangeTransactions),transactioncosts,andallotherpremiumsordiscounts.Thereisapresumptionthatthecashflowsandtheexpectedlifeofagroupofsimilarfinancialinstrumentscanbeestimatedreliably.However,inthoserarecaseswhenitisnotpossibletoreliablyestimatethecashflowsortheexpectedlifeofafinancialinstrument(orgroupoffinancialinstruments),theentityshallusethecontractualcashflowsoverthefullcontractualtermofthefinancialinstrument(orgroupoffinancialinstruments).

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction.


Afinancialassetis:• cash;• a residual interest of another entity; or• a contractual right to:

• receivecashoranotherfinancialassetfromanotherentity;or• exchangefinancialassetsorfinancialliabilitieswithanotherentityunderconditionsthatarepotentiallyfavour-

able to the entity.

Afinancialliabilityisanyliabilitythatisacontractualobligationto:• delivercashoranotherfinancialassettoanotherentity;or• exchangefinancialassetsorfinancialliabilitiesunderconditionsthatarepotentiallyunfavourabletotheentity.

Interestrateriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchang-es in market interest rates.

Liquidityriskistheriskencounteredbyanentityintheeventofdifficultyinmeetingobligationsassociatedwithfinancialliabilitiesthataresettledbydeliveringcashoranotherfinancialasset.

Marketriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarket prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

Otherpriceriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchang-es in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused byfactorsspecifictotheindividualfinancialinstrumentoritsissuer,orfactorsaffectingallsimilarfinancialinstrumentstraded in the market.

Transactioncostsareincrementalcoststhataredirectlyattributabletotheacquisition,issueordisposalofafinancialassetorfinancialliability.Anincrementalcostisonethatwouldnothavebeenincurrediftheentityhadnotacquired,issuedordisposedofthefinancialinstrument.

Financialinstrumentsatamortisedcostarenon-derivativefinancialassetsornon-derivativefinancialliabilitiesthathavefixedordeterminablepayments,excludingthoseinstrumentsthat:

• the entity designates at fair value at initial recognition; or• are held for trading.

Financial instruments at cost are investments in residual interests that do not have a quoted market price in an active market, and whose fair value cannot be reliably measured.

ClassificationTheentityhasthefollowingtypesoffinancialassets(classesandcategory)asreflectedonthefaceofthestatementoffinancialpositionorinthenotesthereto:

Class Category Cash and cash equivalents Financial asset measured at amortised cost Trade and other receivables Financial asset measured at amortised cost Otherfinancialasset FinancialassetmeasuredatfairvalueOtherfinancialasset Financialassetmeasuredatcost

Theentityhasthefollowingtypesoffinancialliabilities(classesandcategory)asreflectedonthefaceofthestatementoffinancialpositionorinthenotesthereto:

Class Category Trade and other payables Financial liability measured at amortised cost

1.12 Statutory receivables

IdentificationStatutory receivables are receivables that arise from legislation, supporting regulations, or similar means, and require settlementbyanotherentityincashoranotherfinancialasset.

Carryingamountistheamountatwhichanassetisrecognisedinthestatementoffinancialposition.


The cost method is the method used to account for statutory receivables that requires such receivables to be measured at their transaction amount, plus any accrued interest or other charges (where applicable) and, less any accumulated impairment losses and any amounts derecognised.

Thetransactionamount forastatutoryreceivablemeanstheamountspecified in,orcalculated, leviedorcharged inaccordance with, legislation, supporting regulations, or similar means.

RecognitionThe entity recognises statutory receivables as follows:

• if the transaction is an exchange transaction, using the policy on Revenue from exchange transactions;• if the transaction is a non-exchange transaction, using the policy on Revenue from non-exchange transactions

(Taxes and transfers); or• if the transaction is not within the scope of the policies listed in the above or another Standard of GRAP, the receiv-

ableisrecognisedwhenthedefinitionofanassetismetand,whenitisprobablethatthefutureeconomicbenefitsorservicepotentialassociatedwiththeassetwillflowtotheentityandthetransactionamountcanbemeasuredreliably.

Initial measurementThe entity initially measures statutory receivables at their transaction amount.

Subsequent measurementThe entity measures statutory receivables after initial recognition using the cost method. Under the cost method, the initialmeasurementofthereceivableischangedsubsequenttoinitialrecognitiontoreflectany:

• interest or other charges that may have accrued on the receivable (where applicable);• impairment losses; and• amounts derecognised.

DerecognitionThe entity derecognises a statutory receivable, or a part thereof, when:

• therightstothecashflowsfromthereceivablearesettled,expireorarewaived;• the entity transfers to another party substantially all of the risks and rewards of ownership of the receivable; or• theentity,despitehavingretainedsomesignificantrisksandrewardsofownershipofthereceivable,hastrans-

ferred control of the receivable to another party and the other party has the practical ability to sell the receivable in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. In this case, the entity:• derecognises the receivable; and• recognises separately any rights and obligations created or retained in the transfer.

The carrying amounts of any statutory receivables transferred are allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date. The entity considers whether any new-ly-created rights and obligations are within the scope of the Standard of GRAP on Financial Instruments or another Stan-dardofGRAP.Anydifferencebetweentheconsiderationreceivedandtheamountsderecognisedand,thoseamountsrecognised,arerecognisedinsurplusordeficitintheperiodofthetransfer. 1.13 Tax

Value added tax The entity is subject to a value added tax (VAT) of 15% for the sale of goods and services. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of the sale of goods and services (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). The entity reports revenue net VAT for all theperiodspresentedinthestatementoffinancialperformance.

1.14 Leases

Aleaseisclassifiedasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownership.Aleaseisclassifiedasanoperatingleaseifitdoesnottransfersubstantiallyalltherisksandrewardsincidentaltoownership.TheARChasenteredintocommercialpropertyleasesonlandandbuildingsanditretainsallthesignificantrisksandrewards of ownership of the properties. The ARC accounts for these contracts as operating leases, with the ARC being a lessor.Ontheotherhand,theARCleasespremisesoccupiedbystaffinregionaloffices,whereitdoesnotretainallthesignificantrisksandrewardsofownershipofthesepropertiesandsoaccountsforthesecontractsasoperatingleases,with the ARC being a lessee.


Operating leases - lessorOperating lease revenue is recognised as revenue on a straight line basis over the lease term.Incomeforleasesisdisclosedunderrevenueinstatementoffinancialperformance.

Operating leases - lesseeOperatingleasepaymentsarerecognisedasanexpenseonastraightlinebasisovertheleaseterm.Thedifferencebetween the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability. 1.15 Inventories

Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition.

Subsequently, inventories are measured at the lower of cost and net realisable value.

Inventories are measured at the lower of cost and current replacement cost where they are held for;• distribution at no charge or for a nominal charge; or• consumption in the production process of goods to be distributed at no charge or for a nominal charge.

Net realisable value is the estimated selling price in the ordinary course of operations less the estimated costs of com-pletion and the estimated costs necessary to make the sale, exchange or distribution.

Current replacement cost is the cost the entity incurs to acquire the asset on the reporting date.

The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

The cost of inventories is assigned using the weighted average cost formula. The same cost formula is used for all inven-tories having a similar nature and use to the entity.

Consumable stores are valued at the lower of cost and current replacement cost. Research on livestock is valued at the lowerofcostornetrealisablevalue.Costofworkinprogressandfinishedgoodsincludesdirectcostsandanappropriateallocation of overheads based on normal production levels.

The agricultural produce is initially recognised at fair value at the point of harvest less estimated costs to sell and sub-sequently in inventories up until the point when it is sold to a third party or used internally for other purposes. Such measurement is the cost at that date when transferring the harvested produce to inventory. Agricultural produce resulting from research, is not accounted for as inventories and the income resulting from the sale of these products is brought to account in the year in which it is sold.

When inventories are sold, the carrying amounts of those inventories are recognised as an expense in the period in which the related revenue is recognised. If there is no related revenue, the expenses are recognised when the goods are distributed, or related services are rendered.

The amount of any write down of inventories to net realisable value or current replacement cost and all losses of inven-tories are recognised as an expense in the period the write down or loss occurs. The amount of any reversal of any write down of inventories, arising from an increase in net realisable value or current replacement cost, are recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs. 1.16 Impairment of cash-generating assets

Cash-generating assets are assets used with the objective of generating a commercial return. Commercial return means thatpositivecashflowsareexpectedtobesignificantlyhigherthanthecostoftheasset.

Impairment isa loss in the futureeconomicbenefitsorservicepotentialofanasset,overandabove thesystematicrecognitionofthelossoftheasset’sfutureeconomicbenefitsorservicepotentialthroughdepreciation(amortisation).

Carryingamountistheamountatwhichanassetisrecognisedinthestatementoffinancialpositionafterdeductinganyaccumulated depreciation and accumulated impairment losses thereon.Acash-generatingunitisthesmallestidentifiablegroupofassetsusedwiththeobjectiveofgeneratingacommercialreturnthatgeneratescashinflowsfromcontinuingusethatarelargelyindependentofthecashinflowsfromotherassetsor groups of assets.


Costsofdisposalareincrementalcostsdirectlyattributabletothedisposalofanasset,excludingfinancecostsandin-come tax expense.

IdentificationWhen the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired.

The entity assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the entity estimates the recoverable amount of the asset.

Irrespective of whether there is any indication of impairment, the entity also tests a cash-generating intangible asset withanindefiniteusefullifeoracash-generatingintangibleassetnotyetavailableforuseforimpairmentannuallybycomparing its carrying amount with its recoverable amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

Value in useValueinuseofacash-generatingassetisthepresentvalueoftheestimatedfuturecashflowsexpectedtobederivedfrom the continuing use of an asset and from its disposal at the end of its useful life.

Whenestimatingthevalueinuseofanasset,theentityestimatesthefuturecashinflowsandoutflowstobederivedfromcontinuing use of the asset and from its ultimate disposal and the entity applies the appropriate discount rate to those futurecashflows.

Recognition and measurement (individual asset)If the recoverable amount of a cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. This reduction is an impairment loss.

Animpairmentlossisrecognisedimmediatelyinsurplusordeficit.

Any impairment loss of a revalued cash-generating asset is treated as a revaluation decrease.

When the amount estimated for an impairment loss is greater than the carrying amount of the cash-generating asset to which it relates, the entity recognises a liability only to the extent that is a requirement in the Standard of GRAP.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the cash-generating asset is ad-justed in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

Reversal of impairment lossThe entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverable amount of that asset. An impairment loss recognised in prior periods for a cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable amount. The increase is a reversal of an impairment loss.

The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

Areversalofanimpairmentlossforacash-generatingassetisrecognisedimmediatelyinsurplusordeficit.

Any reversal of an impairment loss of a revalued cash-generating asset is treated as a revaluation increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

A reversal of an impairment loss for a cash-generating unit is allocated to the cash-generating assets of the unit pro rata with the carrying amounts of those assets. These increases in carrying amounts are treated as reversals of impairment losses for individual assets. No part of the amount of such a reversal is allocated to a non-cash-generating asset contrib-uting service potential to a cash-generating unit.


In allocating a reversal of an impairment loss for a cash-generating unit, the carrying amount of an asset is not increased above the lower of:

• its recoverable amount (if determinable); and• the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss

been recognised for the asset in prior periods.

The amount of the reversal of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other assets of the unit.

1.17 Impairment of non-cash-generating assets

Cash-generating assets are assets used with the objective of generating a commercial return. Commercial return means thatpositivecashflowsareexpectedtobesignificantlyhigherthanthecostoftheasset.

Non-cash-generating assets are assets other than cash-generating assets.

Impairment isa loss in the futureeconomicbenefitsorservicepotentialofanasset,overandabove thesystematicrecognitionofthelossoftheasset’sfutureeconomicbenefitsorservicepotentialthroughdepreciation(amortisation).

Carryingamountistheamountatwhichanassetisrecognisedinthestatementoffinancialpositionafterdeductinganyaccumulated depreciation and accumulated impairment losses thereon.

Acash-generatingunitisthesmallestidentifiablegroupofassetsmanagedwiththeobjectiveofgeneratingacommercialreturnthatgeneratescashinflowsfromcontinuingusethatarelargelyindependentofthecashinflowsfromotherassetsor groups of assets.

Costsofdisposalareincrementalcostsdirectlyattributabletothedisposalofanasset,excludingfinancecostsandin-come tax expense.

Depreciation (amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

Recoverable service amount is the higher of a non-cash-generating asset’s fair value less costs to sell and its value in use.

Useful life is either:• the period of time over which an asset is expected to be used by the entity; or• the number of production or similar units expected to be obtained from the asset by the entity.

IdentificationWhen the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired.

The entity assesses at each reporting date whether there is any indication that a non-cash-generating asset may be im-paired. If any such indication exists, the entity estimates the recoverable service amount of the asset.

Recognition and measurementIf the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss.

Animpairmentlossisrecognisedimmediatelyinsurplusordeficit.

Any impairment loss of a revalued non-cash-generating asset is treated as a revaluation decrease.

When the amount estimated for an impairment loss is greater than the carrying amount of the non-cash-generating asset to which it relates, the entity recognises a liability only to the extent that is a requirement in the Standards of GRAP.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.


Reversal of an impairment lossThe entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverable service amount of that asset.

An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised.

The carrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impair-ment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

Areversalofanimpairmentlossforanon-cash-generatingassetisrecognisedimmediatelyinsurplusordeficit.

Any reversal of an impairment loss of a revalued non-cash-generating asset is treated as a revaluation increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

RedesignationThe redesignation of assets from a cash-generating asset to a non-cash-generating asset or from a non-cash-generating asset to a cash-generating asset only occurs when there is clear evidence that such a redesignation is appropriate.

1.18 Capital funds

The capital fund represents the amount of net assets at the date of transfer from the government to the ARC. 1.19 Employee benefits

Employeebenefitsareallformsofconsiderationgivenbyanentityinexchangeforservicerenderedbyemployees.

Terminationbenefitsareemployeebenefitspayableasaresultofeither:• an entity’s decision to terminate an employee’s employment before the normal retirement date; or• anemployee’sdecisiontoacceptvoluntaryredundancyinexchangeforthosebenefits.

Otherlong-termemployeebenefitsareemployeebenefits(otherthanpost-employmentbenefitsandterminationben-efits)thatarenotduetobesettledwithintwelvemonthsaftertheendoftheperiodinwhichtheemployeesrendertherelated service.

Vestedemployeebenefitsareemployeebenefitsthatarenotconditionalonfutureemployment.

A constructive obligation is an obligation that derives from an entity’s actions whereby an established pattern of past practice,publishedpoliciesorasufficientlyspecificcurrentstatement,theentityhasindicatedtootherpartiesthatitwillaccept certain responsibilities and as a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.

Short-term employee benefitsThecostofshort-termemployeebenefits,(thosepayablewithin12monthsaftertheserviceisrendered,suchaspaidvacationleaveandsickleave,bonuses,andnon-monetarybenefitssuchasmedicalcare),arerecognisedintheperiodin which the service is rendered and are not discounted.

Short-termemployeebenefitsincludeitemssuchas:• wages, salaries and social security contributions;• short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for

the absences is due to be settled within twelve months after the end of the reporting period in which the employees render the related employee service;

• bonus, incentive and performance related payments payable within twelve months after the end of the reporting period in which the employees render the related service; and

• non-monetarybenefits(forexample,medicalcare,andfreeorsubsidisedgoodsorservicessuchashousing,carsand cellphones) for current employees.


When an employee has rendered service to the entity during a reporting period, the entity recognises the undiscounted amountofshort-termemployeebenefitsexpectedtobepaidinexchangeforthatservice:

• as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undiscountedamountofthebenefits,theentityrecognisesthatexcessasanasset(prepaidexpense)totheextentthat the pre-payment will lead to, for example, a reduction in future payments or a cash refund; and

• asanexpense,unlessanotherStandardrequiresorpermitstheinclusionofthebenefitsinthecostofanasset.

The expected cost of compensated absences is recognised as an expense as the employees render services that in-crease their entitlement or, in the case of non-accumulating absences, when the absence occurs. The entity measures the expected cost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The entity recognises the expected cost of bonus, incentive and performance related payments when the entity has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the entity has no realistic alternative but to make the payments.

Post-employment benefitsPost-employmentbenefitsareemployeebenefits(otherthanterminationbenefits)whicharepayableafterthecomple-tion of employment.

Post-employmentbenefitplansareformalorinformalarrangementsunderwhichanentityprovidespost-employmentbenefitsforoneormoreemployees.

Post-employment benefits: Defined contribution plansPaymentstodefinedcontributionretirementbenefitplansarechargedasanexpenseastheyfalldue.

Paymentsmadetoindustry-managed(orstateplans)retirementbenefitschemesaredealtwithasdefinedcontributionplanswheretheentity’sobligationundertheschemesisequivalenttothosearisinginadefinedcontributionretirementbenefitplan.

Post-employment benefits: Defined benefit plansDefinedbenefitplansarepost-employmentbenefitplansotherthandefinedcontributionplans.

Actuarialgainsandlossescompriseexperienceadjustments(theeffectsofdifferencesbetweenthepreviousactuarialassumptionsandwhathasactuallyoccurred)andtheeffectsofchangesinactuarialassumptions.Inmeasuringitsde-finedbenefitliabilitytheentityrecognisesactuarialgainsandlossesinsurplusordeficitinthereportingperiodinwhichthey occur.

Currentservicecostistheincreaseinthepresentvalueofthedefinedbenefitobligationresultingfromemployeeservicein the current period.

Interestcostistheincreaseduringaperiodinthepresentvalueofadefinedbenefitobligationwhicharisesbecausethebenefitsareoneperiodclosertosettlement.

Pastservicecostisthechangeinthepresentvalueofthedefinedbenefitobligationforemployeeserviceinpriorperi-ods,resultinginthecurrentperiodfromtheintroductionof,orchangesto,post-employmentbenefitsorotherlong-termemployeebenefits.Pastservicecostmaybeeitherpositive(whenbenefitsareintroducedorchangedsothatthepresentvalueofthedefinedbenefitobligationincreases)ornegative(whenexistingbenefitsarechangedsothatthepresentval-ueofthedefinedbenefitobligationdecreases).Inmeasuringitsdefinedbenefitliabilitytheentityrecognisespastservicecost as an expense in the reporting period in which the plan is amended.

Thepresentvalueofadefinedbenefitobligationisthepresentvalue,withoutdeductinganyplanassets,ofexpectedfuture payments required to settle the obligation resulting from employee service in the current and prior periods.Theamountrecognisedasadefinedbenefitliabilityisthenettotalofthefollowingamounts:

• thepresentvalueofthedefinedbenefitobligationatthereportingdate;• minus the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled directly;• plus any liability that may arise as a result of a minimum funding requirement.

Anyadjustmentsarisingfromthelimitaboveisrecognisedinsurplusordeficit.


Theentityrecognisesthenettotalofthefollowingamountsinsurplusordeficit,excepttotheextentthatanotherStan-dard requires or permits their inclusion in the cost of an asset:

• current service cost;• interest cost;• actuarial gains and losses;• past service cost;• theeffectofanycurtailmentsorsettlements;and• theeffectofapplyingthelimitonadefinedbenefitasset(negativedefinedbenefitliability).

TheentityusestheProjectedUnitCreditMethodtodeterminethepresentvalueofitsdefinedbenefitobligationsandthe related current service cost and, where applicable, past service cost. The Projected Unit Credit Method (sometimes knownastheaccruedbenefitmethodpro-ratedonserviceorasthebenefit/yearsofservicemethod)seeseachperiodofserviceasgivingrisetoanadditionalunitofbenefitentitlementandmeasureseachunitseparatelytobuildupthefinalobligation.

Indeterminingthepresentvalueofitsdefinedbenefitobligationsandtherelatedcurrentservicecostand,whereappli-cable,pastservicecost,anentityshallattributebenefittoperiodsofserviceundertheplan’sbenefitformula.However,ifanemployee’sserviceinlateryearswillleadtoamateriallyhigherlevelofbenefitthaninearlieryears,anentityshallattributebenefitonastraightlinebasisfrom:

• thedatewhenservicebytheemployeefirstleadstobenefitsundertheplan(whetherornotthebenefitsarecon-ditional on further service); until

• thedatewhenfurtherservicebytheemployeewillleadtonomaterialamountoffurtherbenefitsundertheplan,other than from further salary increases.

Actuarial valuations are conducted on an annual basis by independent actuaries separately for each plan. The results of the valuation are updated for any material transactions and other material changes in circumstances (including changes in market prices and interest rates) up to the reporting date. Beforedeterminingtheeffectofacurtailmentorsettlement,theentitymeasurestheobligation(andtherelatedplanas-sets, if any) using current actuarial assumptions (including current market interest rates and other current market prices).

Other post-retirement obligationsThe entity providespost-retirementhealthcarebenefits,housingsubsidiesandgratuitiesupon retirement tosomeretirees.

TheARCprovidespost-retirementmedicalbenefitstoqualifyingemployees.Theexpectedcostsofthesebenefitsaredeterminedusinganaccountingmethodologysimilartothatofdefinedbenefitpensionplans,withactuarialvaluationscarried out every year. Contributions are made to the relevant funds over the expected service lives of the employees entitledtothosefunds.Theestimatedcostofprovidingsuchbenefitsischargedtothestatementoffinancialperformanceon a systematic basis over the employees’ working lives within the ARC.

Theentitlementtopost-retirementhealthcarebenefitsisbasedontheemployeeremaininginserviceuptoretirementageandthecompletionofaminimumserviceperiod.Theexpectedcostsofthesebenefitsareaccruedovertheperiodofemployment.Independentqualifiedactuariescarryoutvaluationsoftheseobligations.Theentityalsoprovidesagra-tuity and housing subsidy on retirement to certain employees. An annual charge to income is made to cover both these liabilities.

Theamountrecognisedasaliabilityforotherlong-termemployeebenefitsisthenettotalofthefollowingamounts:• thepresentvalueofthedefinedbenefitobligationatthereportingdate;• minus the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled directly.

The entity shall recognise the net total of the following amounts as expense or revenue, except to the extent that another Standard requires or permits their inclusion in the cost of an asset:

• current service cost;• interest cost;• the expected return on any plan assets and on any reimbursement recognised as an asset;• actuarial gains and losses, which shall all be recognised immediately;• past service cost, which shall all be recognised immediately; and• theeffectofanycurtailmentsorsettlements.

Independentqualifiedactuariescarryoutvaluationsoftheseobligations.


Long-term employee benefitsThe liability for employees’ entitlements to long-service leave represents the present value of the estimated future cash outflowsresultingfromemployees’servicesprovidedtothereportingdate.

Indeterminingtheliabilityforemployeebenefits,considerationhasbeengiventofutureincreasesinwageandsalaryrates,andtheARCexperiencewithstaffturnover.

1.20 Provisions and contingencies

Provisions are recognised when:• the entity has a present obligation as a result of a past event;• it isprobablethatanoutflowofresourcesembodyingeconomicbenefitsorservicepotentialwillberequiredto

settle the obligation; and• a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.

Provisionsarereviewedateachreportingdateandadjustedtoreflectthecurrentbestestimate.Provisionsarereversedifitisnolongerprobablethatanoutflowofresourcesembodyingeconomicbenefitsorservicepotentialwillberequiredto settle the obligation.

Provisions are not recognised for future operating losses.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 33. 1.21 Commitments

Itemsareclassifiedascommitmentswhenanentityhascommitteditselftofuturetransactionsthatwillnormallyresultintheoutflowofcash.

Disclosures are required in respect of unrecognised contractual commitments.

Commitmentsforwhichdisclosureisnecessarytoachieveafairpresentationshouldbedisclosedinanotetothefinan-cial statements, if both the following criteria are met:

• Contractsshouldbenon-cancellableoronlycancellableatsignificantcost(forexample,contractsforcomputerorbuilding maintenance services); and

• Contracts should relate to something other than the routine, steady, state business of the entity - therefore salary commitmentsrelatingtoemploymentcontractsorsocialsecuritybenefitcommitmentsareexcluded.

1.22 Revenue from exchange transactions

Revenue is thegross inflowofeconomicbenefitsorservicepotentialduringthereportingperiodwhenthose inflowsresult in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

MeasurementRevenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

The amount of revenue arising on a transaction which is statutory (non-contractual) in nature is usually measured by referencetotherelevantlegislation,regulationorsimilarmeans.Thefeestructure,tariffsorcalculationbasisspecifiedin legislation, regulation or similar means is used to determine the amount of revenue that should be recognised. This amount represents the fair value, on initial measurement, of the consideration received or receivable for revenue that arises from a statutory (non-contractual) arrangement (see the accounting policy on Statutory Receivables).


Diagnostic servicesDue to the short lead time and the nature of the diagnostic tests, the diagnostic revenue is recognised at the completion of the diagnostic tests.

Research revenueWhen the outcome of a research can be estimated reliably, research revenue and research costs associated with the research are recognised with reference to the stage of completion of the research at the reporting date. The stage of completionisdeterminedusingcostsorscientificestimateandormilestoneachievedassetintheproject.

Anexpectedlossonresearchisrecognisedinthestatementoffinancialperformanceimmediately.

When the outcome of research cannot be estimated reliably, revenue is recognised only to the extent of research costs incurred for which it is probable that the costs will be recovered. Research costs are recognised as expenses in the pe-riod they are incurred.

The ARC has several funders that normally process payments for research-related activities prior to the actual research commencing. Upon receipt, a liability is raised (income received in advance), and reduced as and when costs are in-curred on the respective project.

Sale of goodsRevenuefromthesaleofgoodsisrecognisedwhenallthefollowingconditionshavebeensatisfied:

• theentityhastransferredtothepurchaserthesignificantrisksandrewardsofownershipofthegoods;• the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor

effectivecontroloverthegoodssold;• the amount of revenue can be measured reliably;• itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity;

and• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of servicesWhen the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcomeofatransactioncanbeestimatedreliablywhenallthefollowingconditionsaresatisfied:

• the amount of revenue can be measured reliably;• itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity;• the stage of completion of the transaction at the reporting date can be measured reliably; and• the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

Whenservicesareperformedbyanindeterminatenumberofactsoveraspecifiedtimeframe,revenueisrecognisedonastraightlinebasisoverthespecifiedtimeframeunlessthereisevidencethatsomeothermethodbetterrepresentsthestageofcompletion.Whenaspecificactismuchmoresignificantthananyotheracts,therecognitionofrevenueispostponeduntilthesignificantactisexecuted.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is rec-ognised only to the extent of the expenses recognised that are recoverable.

Diagnostic service revenue is recognised by reference to the stage of completion of the tests at the reporting date. Stage of completion is determined by the proportion that costs incurred to date bear to the total estimated costs of the trans-action.

Interest, royalties and dividendsRevenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar distributions is recognised when:

• Itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity;and

• The amount of the revenue can be measured reliably.

Interest is predominantly earned from funds received in advance prior to the commencement or execution of projects and investedinfixeddepositsandcallaccounts.

Royalties are recognised as they are earned in accordance with the substance of the relevant agreements.


Dividendsorsimilardistributionsarerecognised,insurplusordeficit,whentheentity’srighttoreceivepaymenthasbeenestablished.

1.23 Revenue from non-exchange transactions

Revenuecomprisesgrossinflowsofeconomicbenefitsorservicepotentialreceivedandreceivablebyanentity,whichrepresents an increase in net assets, other than increases relating to contributions from owners.

Conditionsontransferredassetsarestipulationsthatspecifythatthefutureeconomicbenefitsorservicepotentialem-bodiedintheassetisrequiredtobeconsumedbytherecipientasspecifiedorfutureeconomicbenefitsorservicepoten-tial must be returned to the transferor.

Controlofanassetariseswhentheentitycanuseorotherwisebenefitfromtheassetinpursuitofitsobjectivesandcanexcludeorotherwiseregulatetheaccessofotherstothatbenefit.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an enti-ty either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

Governmentgrantsarerecognisedwhenit isprobablethatfutureeconomicbenefitswillflowtothepublicentityandthesebenefitscanbemeasuredreliably.Thegrantsarerecognisedasincometotheextentthattherearenofurtherobligations arising from the receipt of the grants.

RecognitionAninflowofresourcesfromanon-exchangetransactionrecognisedasanassetisrecognisedasrevenue,excepttotheextentthataliabilityisalsorecognisedinrespectofthesameinflow.

Governmentgrantsreceivedforthepurposeofgivingimmediatefinancialsupportwithnofuturerelatedcostsarerec-ognisedasrevenueintheperiodinwhichtheybecomereceivable.Governmentgrantsrelatingtospecificexpenditureare recognised in the year during which the expenses are incurred

MeasurementRevenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the entity. 1.24 Accounting by principals and agents

IdentificationAn agent is an entity that has been directed by another entity (a principal), through a binding arrangement, to undertake transactionswiththirdpartiesonbehalfoftheprincipalandforthebenefitoftheprincipal.

A principal is an entity that directs another entity (an agent), through a binding arrangement, to undertake transactions withthirdpartiesonitsbehalfandforitsownbenefit.

A principal agent arrangement results from a binding arrangement in which one entity (an agent), undertakes transac-tionswiththirdpartiesonbehalf,andforthebenefitof,anotherentity(theprincipal).

Identifying whether an entity is a principal or an agentWhen the entity is party to a principal agent arrangement, it assesses whether it is the principal or the agent in accounting for revenue, expenses, assets and/or liabilities that result from transactions with third parties undertaken in terms of the arrangement.

The assessment of whether an entity is a principal or an agent requires the entity to assess whether the transactions it undertakeswiththirdpartiesareforthebenefitofanotherentityorforitsownbenefit.

Binding arrangementThe entity assesses whether it is an agent or a principal by assessing the rights and obligations of the various parties established in the binding arrangement.

Wherethetermsofabindingarrangementaremodified,thepartiestothearrangementreassesswhethertheyactasaprincipal or an agent.


Assessing which entity benefits from the transactions with third partiesWhen the entity in a principal agent arrangement concludes that it undertakes transactions with third parties for the benefitofanotherentity,thenitistheagent.Iftheentityconcludesthatitisnottheagent,thenitistheprincipalinthetransactions.

The entity is an agent when, in relation to transactions with third parties, all three of the following criteria are present:• Itdoesnothavethepowertodeterminethesignificanttermsandconditionsofthetransaction;• It does not have the ability to use all, or substantially all, of the resources that result from the transaction for its

ownbenefit;and• It is not exposed to variability in the results of the transaction.

Wheretheentityhasbeengrantedspecificpowersintermsoflegislationtodirectthetermsandconditionsofparticulartransactions,itisnotrequiredtoconsiderthecriteriaofwhetheritdoesnothavethepowertodeterminethesignificantterms and conditions of the transaction, to conclude that is an agent. The entity applies judgement in determining whether such powers exist and whether they are relevant in assessing whether the entity is an agent.

RecognitionThe entity, as a principal, recognises revenue and expenses that arise from transactions with third parties in a principal agent arrangement in accordance with the requirements of the relevant Standards of GRAP.

The entity recognises assets and liabilities arising from principal agent arrangements in accordance with the require-ments of the relevant Standards of GRAP. 1.25 Translation of foreign currencies

Foreign currency transactionsA foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

At each reporting date:• foreign currency monetary items are translated using the closing rate;• non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the

exchange rate at the date of the transaction; and• non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates

at the date when the fair value was determined.

Exchangedifferencesarisingonthesettlementofmonetaryitemsorontranslatingmonetaryitemsatratesdifferentfromthose at which they were translated on initial recognition during the period or in previous Annual Financial Statements are recognisedinsurplusordeficitintheperiodinwhichtheyarise.

When a gain or loss on a non-monetary item is recognised directly in net assets, any exchange component of that gain or lossisrecogniseddirectlyinnetassets.Whenagainorlossonanon-monetaryitemisrecognisedinsurplusordeficit,anyexchangecomponentofthatgainorlossisrecognisedinsurplusordeficit.

CashflowsarisingfromtransactionsinaforeigncurrencyarerecordedinRandsbyapplyingtotheforeigncurrencyamounttheexchangeratebetweentheRandandtheforeigncurrencyatthedateofthecashflow.

1.26 Insurance fund

IntermsoftheARCpolicytocoveraportionofvehicle,non-vehicle,statedbenefitsandfireandalliedperilsinsuranceclaims, a risk assessment is made annually in conjunction with the insurance brokers in order to determine the extent of the self insured amount to be credited to the reserve.

In determining the amount to be credited, the principle of maximum insurance cover at the lowest possible cost is applied.TheportionofclaimsbornebytheARCisaccountedforagainstthereserve.Anyshortfallsonthereservearewrittenoffagainst accumulated surplus in the year in which it originated and any surplus is carried over to the following year.

1.27 Comparative figures

Wherenecessary,comparativefigureshavebeenre-classifiedtoconformtochangesinpresentationinthecurrentyear.


1.28 Fruitless and wasteful expenditure

Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

Allexpenditurerelatingtofruitlessandwastefulexpenditureisrecognisedasanexpenseinthestatementoffinancialperformanceintheyearthattheexpenditurewasincurred.Theexpenditureisclassifiedinaccordancewiththenatureoftheexpense,andwhererecovered,itissubsequentlyaccountedforasrevenueinthestatementoffinancialperfor-mance.

1.29 Irregular expenditure

Irregularexpenditureasdefinedinsection1ofthePFMAisexpenditureotherthanunauthorisedexpenditure,incurredincontravention of or that is not in accordance with a requirement of any applicable legislation, including

(a) this Act; (b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or(c) any provincial legislation providing for procurement procedures in that provincial government.

Irregularexpenditurethatwasincurredandidentifiedduringthecurrentfinancialyearandwhichwascondonedbeforeyearendand/orbeforefinalisationofthefinancialstatementsmustalsoberecordedappropriatelyintheirregularex-penditure register. In such an instance, no further action is also required with the exception of updating the note to the financialstatements.

Irregularexpenditurethatwas incurredand identifiedduringthecurrentfinancialyearandforwhichcondonement isbeing awaited at year end must be recorded in the irregular expenditure register. No further action is required with the exceptionofupdatingthenotetothefinancialstatements.

Whereirregularexpenditurewasincurredinthepreviousfinancialyearandisonlycondonedinthefollowingfinancialyear,theregisterandthedisclosurenotetothefinancialstatementsmustbeupdatedwiththeamountcondoned.

Irregularexpenditurethatwasincurredandidentifiedduringthecurrentfinancialyearandwhichwasnotcondonedbythe National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law. Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is notpossible,theaccountingofficeroraccountingauthoritymaywriteofftheamountasdebtimpairmentanddisclosesuchintherelevantnotetothefinancialstatements.Theirregularexpenditureregistermustalsobeupdatedaccordingly.If the irregular expenditure has not been condoned and no person is liable in law, the expenditure related thereto must remainagainsttherelevantProgramme/expenditureitem,bedisclosedassuchinthenotetothefinancialstatementsand updated accordingly in the irregular expenditure register.

1.30 Segment information

A segment is an activity of an entity:• thatgenerateseconomicbenefitsorservicepotential(includingeconomicbenefitsorservicepotentialrelatingto

transactions between activities of the same entity);• whose results are regularly reviewed by management to make decisions about resources to be allocated to that

activity and in assessing its performance; and• forwhichseparatefinancialinformationisavailable.

Reportable segments are the actual segments which are reported on in the segment report. They are the segments identifiedaboveoralternativelyanaggregationoftwoormoreofthosesegmentswheretheaggregationcriteriaaremet.

MeasurementThe amount of each segment item reported is the measure reported to management for the purposes of making deci-sions about allocating resources to the segment and assessing its performance. Adjustments and eliminations made in preparingtheentity’sfinancialstatementsandallocationsofrevenuesandexpensesareincludedindeterminingreport-edsegmentsurplusordeficitonlyiftheyareincludedinthemeasureofthesegment’ssurplusordeficitthatisusedbymanagement.

Similarly, only those assets and liabilities that are included in the measures of the segment’s assets and segment’s liabil-ities that are used by management are reported for that segment. If amounts are allocated to reported segment surplus ordeficit,assetsorliabilities,thoseamountsareallocatedonareasonablebasis.


Independentqualifiedactuariescarryoutvaluationsoftheseobligations.

Long-term employee benefitsThe liability for employees’ entitlements to long-service leave represents the present value of the estimated future cash outflowsresultingfromemployees’servicesprovidedtothereportingdate.

Indeterminingtheliabilityforemployeebenefits,considerationhasbeengiventofutureincreasesinwageandsalaryrates,andARCexperiencewithstaffturnover.

1.31 Research and development expenditure

Expenditure on research is recognised as an expense when it is incurred.An asset arising from development is recognised when:

• it is technically feasible to complete the asset so that it will be available for use or sale;• there is an intention to complete and use or sell it;• there is an ability to use or sell it;• itwillgenerateprobablefutureeconomicbenefitsorservicepotential;• thereareavailabletechnical,financialandotherresourcestocompletethedevelopmentandtouseorsellthe

asset; and• the expenditure attributable to the asset during its development can be measured reliably.

1.32 Budget information

Entity are typically subject to budgetary limits in the form of appropriations or budget authorisations (or equivalent), which isgiveneffectthroughauthorisinglegislation,appropriationorsimilar.

Generalpurposefinancialreportingbyentityshallprovideinformationonwhetherresourceswereobtainedandusedinaccordance with the legally adopted budget.

Theapprovedbudgetispreparedonaaccrualbasisandpresentedbyeconomicclassificationlinkedtoperformanceoutcome objectives.

Theapprovedbudgetcoversthefiscalperiodfrom2019-04-01to2020-03-31.

The budget for the economic entity includes all the entities approved budgets under its control.

The Annual Financial Statements and the budget are on the same basis of accounting therefore a comparison with the budgeted amounts for the reporting period have been included in the Statement of comparison of budget and actual amounts.

1.33 Related parties

Arelatedpartyisapersonoranentitywiththeabilitytocontrolorjointlycontroltheotherparty,orexercisesignificantinfluenceovertheotherparty,orvice versa, or an entity that is subject to common control or joint control.

Controlisthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Joint control is the agreed sharing of control over an activity by a binding arrangement, and exists only when the strategic financialandoperatingdecisionsrelatingtotheactivityrequiretheunanimousconsentofthepartiessharingcontrol(theventurers).

Related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged.

Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofanentity,butisnotcon-trol over those policies.

Management are those persons responsible for planning, directing and controlling the activities of the entity, including those charged with the governance of the entity in accordance with legislation, in instances where they are required to perform such functions.

Closemembersofthefamilyofapersonarethosefamilymemberswhomaybeexpectedtoinfluence,orbeinfluencedby that person in their dealings with the entity.


The entity is exempt from disclosure requirements in relation to related party transactions if that transaction occurs within normal supplier and/or client/recipient relationships on terms and conditions no more or less favourable than those which it is reasonable to expect the entity to have adopted if dealing with that individual entity or person in the same circum-stances and terms and conditions are within the normal operating parameters established by that reporting entity’s legal mandate.

Where the entity is exempt from the disclosures in accordance with the above, the entity discloses narrative information aboutthenatureofthetransactionsandtherelatedoutstandingbalances,toenableusersoftheentity’sfinancialstate-mentstounderstandtheeffectofrelatedpartytransactionsonitsAnnualFinancialStatements. 1.34 Events after reporting date

Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date andthedatewhenthefinancialstatementsareauthorisedforissue.Twotypesofeventscanbeidentified:

• those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and

• those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

Theentitywilladjusttheamountrecognisedinthefinancialstatementstoreflectadjustingeventsafterthereportingdateonce the event occurred.

Theentitywilldisclosethenatureoftheeventandanestimateofitsfinancialeffectorastatementthatsuchestimatecannotbemadeinrespectofallmaterialnon-adjustingevents,wherenondisclosurecouldinfluencetheeconomicde-cisionsofuserstakenonthebasisofthefinancialstatements.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS________________________________________________________________________________________________

2. NEW STANDARDS AND INTERPRETATIONS

2.1 Standards and interpretations effective and adopted in the current year

Inthecurrentyear,theentityhasadoptedthefollowingstandardsandinterpretationsthatareeffectiveforthecurrentfinancialyearandthatarerelevanttoitsoperations:

Standard/ InterpretationEffective date:

Years beginning on or after

Expected impact:

• GRAP 20: Related parties• GRAP 108: Statutory Receivables• GRAP 109: Accounting by Principals

and Agents

• IGRAP 18: Interpretation of the Stan-dard of GRAP on Recognition and Derecognition of Land

01 April 201901 April 201901 April 2019

01 April 2019

The impact is not material.The impact is not material.The adoption of this standard has not had a material impact on the results of the Company, but has resulted in more disclosure than would havepreviouslybeenprovidedinthefinancialstatementsThe impact is not material.


2.2 Standards and interpretations issued, but not yet effective

The entity has not applied the following standards and interpretations, which have been published and are mandatory for the entity’s accounting periods beginning on or after 01 April 2020 or later periods:

Standard/InterpretationEffective date:

Years beginning on or after

Expected impact:

• GRAP 104 (amended): Financial Instruments

• GRAP 35: Consolidated Financial Statements

• GRAP 38: Disclosure of Interests in Other Entities

• GRAP 36: Investments in Associates and Joint Ven-tures

• GRAP 37: Joint Arrangements

• GRAP 110 (as amended 2016): Living and Non liv-ing Resources

• GRAP 34: Separate Financial Statements

01 April 2020

01 April 2020

01 April 2020

01 April 2020

01 April 2020

01 April 2020

01 April 2020

Unlikely there will be a material impactUnlikely there will be a material impactUnlikely there will be a material impactUnlikely there will be a material impactUnlikely there will be a material impactUnlikely there will be a material impactUnlikely there will be a material impact

3. REVENUE________________________________________________________________________________________________ Figures in Rand 2020 2019 Restated*

Revenue Sale of goods Rendering of services Royalty income Rental of facilities and equipment RecoveriesOther income Interest received - investment Dividends received Government grants

17 516 561266 227 20727 290 90519 556 1461 124 782

27 746 23319 441 866

136 972 978 339 783

20 073 297278 476 20936 202 65018 489 313

-23 481 843

7 305 630703 193

929 050 0261 357 380 455 1 313 782 161

The amount included in revenue arising from exchang-es of goods or services are as follows:Sale of goods Rendering of services Royalty income Rental of facilities and equipment Recoveries Other income Interest received investment Dividends received

17 516 561266 227 20727 290 90519 556 1461 124 782

27 746 23319 441 866

136 972

20 073 297278 476 20936 202 65018 489 313

-23 481 843

7 305 630703 193

379 040 672 384 732 135The amount included in revenue arising from non-ex-change transactions is as follows: Transfer revenue Government grants 978 339 783 929 050 026


________________________________________________________________________________________________ Figures in Rand 2020 2019 Restated*

4. INVESTMENT REVENUE

Dividend revenue Listedfinancialassets-Local

136 972 703 193

Interest revenue Bank 19 441 866 7 305 630

19 578 838 8 008 823

The increase in interest revenue is due to ring-fenced cash reserves.In prior year the dividends received were due to La Concorde Holdings declaring a dividend in specie.

5. GOVERNMENT GRANTSOperating grants Government grant

863 774 417 832 653 550

Capital grants Government grant 114 565 366 96 396 476

978 339 783 929 050 026Conditional and UnconditionalIncluded in above are the following grants and subsidies received:Conditional grants receivedUnconditional grants received

1 205 366977 134 417

600 476928 449 550

978 339 783 929 050 026Foot-and-mouth Disease (“FMD”) vaccines facilityBalance unspent at beginning of year Current year receipts Conditions met transferred to revenue

121 276 880113 044 001(1 205 366)

121 877 356-

(600 476)

Conditions still to be met - remain liabilities (see note 25).233 115 515 121 276 880

Exotic Disease and Wild Suide facilitiesBalance unspent at beginning of year

Conditions still to be met - remain liabilities (see note 25).

4 877 451 4 877 451

6. EMPLOYEE-RELATED COSTS

Salaries and wagesAllowancesDeferred compensationDefinedcontributionplansLeave pay provision charge Long service awards Medical aid Company contributions Other short term costs* Overtime payments Personnel training SDL UIF WCA

666 911 2676 223 6559 598 570

60 796 0965 865 1113 819 085

17 931 6573 269 1503 325 8935 292 250 6 681 8523 774 7041 552 067

685 259 5758 765 7029 307 157

59 645 02212 576 0493 252 801

17 923 8061 620 8572 884 0735 424 2046 918 7333 902 8671 333 384

795 041 357 818 814 230

* Included in other short term costs is membership fees paid on behalf of employees

* See Note 35



7. DEPRECIATION AND AMORTISATION

Property, plant and equipment Investment property Biological assets Intangible assets

74 579 38146 81962 500

7 225 430

66 013 61046 81962 500

7 073 63981 914 130 73 196 568

8. FINANCE COSTS

Trade and other payables 219 869 92 222

9. LEASE RENTALS ON OPERATING LEASE

Premises Contractual amountsMotor vehicles Contingent amountsEquipment Contractual amounts

285 432

-

9 580 121

1 037 753

4 448

20 281 0819 865 553 21 323 282

10. OPERATING AND ADMINISTRATIVE EXPENSES

AdvertisingAnimal feed Auditors remuneration Bank charges Commission paid Cleaning Computer expenses Conferences and seminars Consulting and professional fees Fleet Fuel and oil General expense* Insurance Marketing Magazines, books and periodicals Pest control Plants Postage and courier Printing and stationery Protective clothing Research and development costs Security StaffwelfareScrappingoffixedassetsTelephone and fax Travel local Travel overseas Utilities

1 482 57810 832 5757 256 059

698 608348 759

6 972 36323 885 545

969 66539 143 84919 438 6285 869 784

19 142 4464 119 1312 042 437

12 384 1273 006 5514 003 981

910 7793 449 6181 919 356

51 059 33519 357 477

3 243 1176 463 7184 640 698

17 223 3748 798 663

81 430 800

2 552 2928 998 1146 828 740

765 990224 067

7 827 95022 598 270

621 90035 209 12018 687 7875 167 676

21 271 674(215 424)1 746 5589 853 9054 135 6612 709 639

834 0584 023 3551 671 982

57 583 22518 534 5526 461 1261 363 8814 718 864

24 824 13212 027 42180 471 277

360 094 021 361 497 792

*General expenses comprises of library database subscriptions, Campus costs, lab, tools and inter Campus expenses.

* See Note 35



11. GAINS OR LOSSES ON BIOLOGICAL ASSETS

Gains or losses arising from a change in fair value less point of sale costs Gains or losses on initial recognition of biological asset and bearer plants

640 160

8 559 247

1 114 653

597 834

9 199 407 1 712 487

The ARC obtained independent valuations of its bearer plants (Fruit trees), biological assets and agricultural produce as at 31 March 2020. The valuation was based on market approach valuation techniques. The method entails using prices and other relevant information generated by market transactions, involving identical or comparable transactions. This is thefirsttimeadoptionofGRAP27AgriculturebytheCompanyandaccountingforbearerplantsandagriculturalproducevalues in the Annual Financial Statements. As a result, the Company realised an initial gain on recognition of biological asset and bearer plants at R8 559 247. Similarly, the Company through its management determined the fair values of its living animals based on active markets and informal markets, as a result a change in fair value gain of R640 160 was realised.

The Annual Financial Statements were retrospectively adjusted as a result of the valuation of the fruit trees. Due to the timing of the valuation it was impossible to retrospectively adjust the Annual Financial Statements with the values of the agriculturalproduce.Thisisconsideredtobeasignificantjudgementbymanagementinlinewithnote1.4oftheaccount-ing policy (see notes 13, 16, 18 and 35).

12. IMPAIRMENT OF ASSETS

Impairments Trade and other receivables

1 970 098 38 201 676

Reversal of impairments Property, plant and equipment A revaluation on land was performed during the year which resulted in reversal of impairment previously recognised. The recoverable amount [recoverable service amount] of the asset was based on its fair value less costs to sell.

(32 235 448) -

Total impairment losses (recognised) reversed (30 265 350) 38 201 676

The land of the entity was revalued during the year based on independent professional valuations carried out by an ac-credited valuer. These valuations are determined based on the direct comparison method that makes reference to recent markettransactions.Thelastindependentvaluationoftheselandwasperformedduringthefinancialyearendedon31March 2014. Included in the reversal of impairments/(Impairment loss) is an amount of R32 235 448 which reverses a revaluationdecreaseofthesameassetpreviouslyrecognisedinsurplusordeficit

13. INVENTORIES

Agricultural produce Biological assets - Consumable Consumable stores Finished goods Forage Livestock for research

6 438 8876 389 8786 906 911

191 4041 805 3592 643 308

-5 643 6836 026 731

335 2071 661 4762 429 807

24 375 747 16 096 904

The Annual Financial Statements were retrospectively adjusted as a result of the valuation of the fruit trees. Due to the timing of the valuation it was impossible to retrospectively adjust the Annual Financial Statements with the values of the agriculturalproduce.Thisisconsideredtobeasignificantjudgementbymanagementinlinewithnote1.4oftheaccount-ing policy (see note 11).

* See Note 35



14. RECEIVABLES FROM EXCHANGE TRANSACTIONS

Trade debtors StaffdebtorsDeposits Prepaid expenses Other debtors*

115 063 505245 405

2 697 1153 174 318

10 834 292

149 342 0037 752 9301 077 5583 263 990

13 220 251132 014 635 174 656 732

Trade receivables are shown net of impairment losses.

Trade receivables are stated at amortised cost.

Of the receivables balance as at 31 March 2020, R70 Million is due from the largest customer DAFF and R26 Million is due from the second largest customer DRDLR and R4 Million is due from the third largest customer Technology Invoca-tionAgency,thefourthlargestcustomerOilSeedsAdvisoryCommitteeowes3%andfifthlargestcustomerVeterinaryLaboratory Services owe 2% of the total balance respectively. There are no other debtors who represent more than 1.8% of total balance of the trade receivables.

Staffdebtorsaremadeupoftraveladvances.Thesearerecoveredonamonthlybasisbyemployeespayingbacktheamount owed or ARC deducting the amount owed from the employees’ salary.

The ARC has made some good progress in obtaining subsistence and travel advance reconciliation claims for the prior years, hence the opening balance is restated from R12 937 329 to R7 168 158. Of the remaining balance, the R6 418 006 has been provided for as doubtful. Other payroll related accounts (Study debt and Employee advances) were pro-videdforasdoubtfulatR640982.TheCompanyhasdecidedtopursueallstaffdebtorsthroughtheinvolvementoflegalrepresentativesandnoamountwillbewrittenoff.

R56 million of the R58 million in the 150 days category, is due from the two major customers who are government de-partment. In line with our credit policy, amounts due from government for more than a year are assessed annually for impairment.

* Included in other debtors is revenue accruals.

Trade and other receivables past due but not impairedThe ageing of amounts past due but not impaired is as follows:Past due 60 days Past due 61-90 days Past due more than 120 days Past due more than 150 days

3 835 4311 093 4461 190 503

58 310 391

3 237 9015 190 3461 417 062

87 588 56664 429 771 97 433 875

Reconciliation of provision for impairment of trade and other receivablesThe amount of the provision was R 53 669 594 as of 31 March 2020 (2019: R 63 605 881). Receivables that are past dueandnotimpairedrepresentslowpayingclients.Althoughasignificantbalanceisduefromtwolargestcustomersthese customers are not provided for as the risk of non payment is regarded to be low. Movements in the provision for impairment of receivables were as follows:

Opening balance Provision for impairment Amountswrittenoffasuncollectible

63 605 8811 970 098

(11 906 385)

30 914 19338 201 676(5 509 988)

53 669 594 63 605 881

Of the R53 million provision for bad debts R27 million relates to government clients while R26 million relates to private clients.

* See Note 35


________________________________________________________________________________________________ Figures in Rand

The receivables impairment was estimated based on irrecoverable amounts and reference to the past default. Other than the concentration mentioned above, credit risk is limited due to customer base being large and unrelated. Accordingly Council members believe that there is no further impairment provision required in excess of the current allowance for doubtful debts.

15. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of:Bank balances Short term deposits

12 483 699233 451 949

46 939 17129 409 008

245 935 648 76 348 179

Atyearendtheentityhadsufficientfundstohonourtheobligationsoftheconditionalgrants.

ThetotalunsecuredcreditfacilitiesgrantedtoARCrelatetofleetmanagementcards.Thefacilityasat31March2020was R1.2 million (2019: R1.2 million).

16. BIOLOGICAL ASSETS

2020 2019

Cost/Valuation

Accumulated depreciation and

accumulated impairment

Carrying value Cost/Valuation



Carrying value

Dairy cattle - Bearer Chickens - Bearer

931 321244 880

--

931 321244 880

716 53730 009

--

716 53730 009

Total 1 176 201 - 1 176 201 746 546 - 746 546

Reconciliation of biological assets 2020

Opening balance

Increase/De-crease due to

assets acquired through a

non-exchange transaction

Gains or losses arising from changes in fair value

Total

Dairy cattle - Bearer Chickens - Bearer

716 53730 009

275 947201 510

(61 163)13 361

931 321244 880

746 546 477 457 (47 802) 1 176 201

Reconciliation of biological assets 2019Dairy cattle - Bearer Chickens - Bearer

--

--

716 53730 009

716 53730 009

- - 746 546 746 546

Avaluationofbiologicalassetswasperformedatyearend.Thisisconsideredtobeasignificantjudgementbymanage-ment in with section 1.4 of the accounting policy (see note 11).

Non-financial informationQuantities of each biological asset Dairy cattle - Bearer Chicken - Bearer

1624 534

114803

4 696 917

* See Note 35



17. INVESTMENT PROPERTY

2020 2019

Cost/Valuation






Carrying value

Investment property 4 238 560 (1 145 899) 3 092 661 4 238 560 (1 099 080) 3 139 480

Reconciliation of investment property - 2020Opening balance Transfers Depreciation Total

Investment property 3 139 480 - (46 819) 3 092 661

Reconciliation of investment property - 2019Investment property 98 648 3 087 651 (46 819) 3 139 480

Details of propertyAregistercontainingtheinformationrequiredisavailableforinspectionattheregisteredofficeoftheentity.

Amounts recognised in surplus or deficitRental revenue from Investment property 439 643 423 965

18. PROPERTY, PLANT AND EQUIPMENT

Cost

Accumulated depreciation

and accumulat-ed impairment

Carrying value Cost

Accumulated depreciation

and accumulat-ed impairment

Carrying value

Land Buildings Computer equipment Infrastructure Laboratory equipment Machinery and farming equipment Motor vehicles and aircraft OfficefurnitureandequipmentBearer plants BuffaloHorse Assets under construction

117 604 871441 558 795115 966 624214 599 249507 191 346174 744 18993 509 73083 033 97546 009 222

500 00032 000

53 428 161

53 428 161(114 480 224)(57 638 496)(71 725 026)

(191 159 837)(66 322 034)(61 246 008)(72 044 219)(9 665 421)

(125 000)--

652 180 000327 078 57158 328 128

142 874 223316 031 509108 422 15532 263 72210 989 75636 343 801

375 00032 000

53 428 161

122 034 872552 139 68981 976 47080 105 709

492 687 361169 253 69598 195 57682 778 43745 766 033

500 00034 000

63 026 330

177 762 898(152 287 081)(47 013 383)(22 670 414)

(175 585 111)(60 098 966)(60 552 946)(68 531 817)(5 803 394)

(62 500)--

299 797 770399 852 60834 963 08757 435 295

317 102 250109 154 72937 642 63014 246 62039 962 639

437 50034 000

63 026 330

Total 1 848 178 162 (109 831 136) 1 738 347 026 1 788 498 172 (414 842 714) 1 373 655 458

Reconciliation of property, plant and equipment - 2020

Opening balance Additions Disposals

Increase/De-crease due to assets acquired through a non-ex-change

transaction

Transfers to/from assets

under con-struction

Revalu-ations

Reclassi-fications

Depreci-ation

Scrapping loss

Impair-ment

reversalTotal

Land Buildings Computer equip-ment Infrastructure Laboratory equip-ment Machinery and farming equip-ment Motor vehicles and aircraft Officefurnitureandequipment Bearer plants BuffaloHorse Assets under construction

299 797 770399 852 60834 963 087

57 435 295317 102 250

109 154 729

37 642 630

14 246 620

39 962 639437 50034 000

63 026 330

-4 226 289

36 602 042

12 126 38325 220 771

6 556 726

940 404

726 643

---

3 656 233

---

-(51 621)

(45 513)

(274 315)

(15 214)

----

---

--

-

-

-

243 189---

-11 162 806

579 342

1 458 883-

53 371

-

-

---

(13 254 402)

320 136 783--

--

-

-

-

----

-(84 890 072)

115 436

83 090 09737 290

3 471 614

-

1 666 669

----

-(2 964 859)

(13 592 025)

(10 703 385)(23 817 928)

(8 471 855)

(5 756 664)

(5 410 638)

(3 862 027)(62 500)

--

(1)(308 201)(339 754)

(533 050)(2 459 253)

(2 296 917)

(288 333)

(224 324)

--

(2 000)-

32 245 448--

--

-

-

-

----

652 180 000327 078 57158 328 128

142 874 223316 031 509

108 422 155

32 263 722

10 989 756

36 343 801375 00032 000

53 428 161

1 373 655 458 90 055 491 (386 663) 243 189 - 320 136 783 3 491 034 (74 641 881) (6 451 833) 32 245 448 1 738 347 026


______________________________________________________________________________________________ Figures in Rand

Reconciliation of property, plant and equipment - 2019Land Buildings Computer equip-ment Infrastructure Laboratory equip-ment Machinery and farming equip-ment Motor vehicles and aircraft Officefurnitureandequipment Bearer plants BuffaloHorse Assets under construction

299 797 770399 852 60834 963 087

57 435 295317 102 250

109 154 729

37 642 630

14 246 620

39 962 639437 50034 000

63 026 330

-3 980 7393 663 014

18 120 74720 994 358

5 931 223

2 971 381

720 154

---

8 436 553

-1 403 869

96 571

9 095 758-

240 266

327 556

63 588

----

-(10 862)

-

-(39 667)

(73 781)

(200 127)

(7 069)

----

---

--

-

-

-

500 00034 000

516 027-

-1 958 155

-

2 115 293-

94 421

-

-

---

(4 167 869)

-(840 470)(160 607)

(1 563 461)143 979

113 932

(508 923)

(70 926)

----

-(2 632 027)(3 055 566)

(9 432 434)(23 100 080)

(10 750 788)

(8 204 808)

(3 034 513)

(62 500)-

(5 803 394)-

-(313 385)(30 915)

(132 443)(640 011)

(659 035)

(375 428)

(91 493)

----

---

--

-

-

-

----

299 797 770399 852 60834 963 087

57 435 295317 102 250

109 154 729

37 642 630

14 246 620

437 50034 000

39 962 63963 026 330

1 368 096 456 64 818 169 11 227 608 (331 506) 1 050 027 - (2 886 476) (66 076 110) (2 242 710) - 1 373 655 458

* See Note 35

The land of the entity was revalued during the year based on independent professional valuations carried out by an ac-credited valuer. These valuations are determined based on the direct comparison method that makes reference to recent markettransactions.Thelastindependentvaluationoftheselandwasperformedduringthefinancialyearendedon31March 2014. Included in the reversal of impairments/(Impairment loss) is an amount of R32 245 448 which reverses a revaluationdecreaseofthesameassetpreviouslyrecognisedinsurplusordeficit(seenote12).

BuildingstothevalueofR83090096werereclassifiedtoInfrastructureduetothemovingairconditioners,carportsandotherequipmentpreviouslycapitalisedasbuilding.BuildingstothevalueofR115436werereclassifiedtocomputerequipment to due to the moving PABX switchboard, projectors and other LAN equipment previously capitalised as build-ing.BuildingstothevalueR37290werereclassifiedtolaboratoryequipmentduetolaboratoryequipmenpreviouslycap-italisedasbuildings.BuildingstothevalueofR3471614werereclassfiedtomachineryandfarmingequipmentduetothe moving of compressors, sensors for Glasshouses irrigation and other equipment previously capitalised as building. BuildingstothevalueofR1666669werereclassifiedtoofficeandfarmingequipmentduetothemovingverticalblinds,stove, sound system and other equipment previously capitalised as building.

BuildingstothevalueofR2997915werereclassfiedtoinvestmentpropertyasthemainpurposeoftheofficespaceisfor generating rental income.

Compensation received for losses on property, plant and equipment - included in operating profit. Motor vehicles 252 400 - RevaluationsTheeffectivedateoftherevaluationswasTuesday,30July2019.Revaluationswereperformedbyindependentvaluer,Njabulo Nkwanyana [NDRE: Property Valuation] and Themba Kunene [Btech: Real Estate], of NGUBANE & CO. NGU-BANE & CO is not connected to the entity.

Land and buildings are revalued independently every 5 years.

ThevaluationwasperformedusingtheDirectComparableSalesMethod.Thismethodentailstheidentification,analysisand application of recent comparable sales involving physically and legally similar properties in the general proximity of the subject property, to enable the Valuer to arrive at a norm which will serve as a guide in estimating the Market Value of the subject properties.

These assumptions were based on current market conditions.


________________________________________________________________________________________________ 2020 2019 Restated*

Reconciliation of Work in Progress 2020Included within Infrastructure

Included within Buildings

Included within *Other PPE Total

Opening balance Additions Other movements Transferred to completed items

1 458 880--

(1 458 880)

60 736 8413 656 233

197 897(11 162 806)

830 610-

(197 897)(632 713)

63 026 3313 656 233

-(13 254 399)

- 53 428 165 - 53 428 165

Reconciliation of Work in Progress 2019Included within Infrastructure

Included within Buildings

Included within *Other PPE Total

Opening balance Additions Transferred to completed items

1 615 8271 958 349

(2 115 296)

56 890 5515 901 667

(2 055 377)

251 269673 762(94 421)

58 757 6478 533 778

(4 265 094)1 458 880 60 736 841 830 610 63 026 331

The FMD building factory is taking longer to be completed due to the following reasons:• ModificationoftheoriginalBusinessPlan;• Recruitment of independent consultants;• Tender and contracting processes; and• Vaccine plant and facility design.

*Included in other PPE is computer equipment and machinery and farming equipment.

Expenditure incurred to repair and maintain property, plant and equipment Expenditure incurred to repair and maintain property, plant and equipment included in Statement of Financial Performance Contracted services 30 293 028 23 702 456

Deemed cost Deemed cost was determined using depreciated replacement cost.Aregistercontainingtheinformationrequiredisavailableforinspectionattheregisteredofficeoftheentity.

19. INTANGIBLE ASSETS

2020 2019

Cost/Valuation






Carrying value

Computer software Intangible assets under development

50 562 2131 020 336

(35 004 997)-

15 557 2161 020 336

50 579 420-

(27 784 282)-

22 795 138-

Total 51 582 549 (35 004 997) 16 577 552 50 579 420 (27 784 282) 22 795 138

Reconciliation of intagible assets - 2020Opening balance Additions Amortisation Impairment loss Total

Computer software Intangible assets under development

22 795 138-

-1 020 336

(7 225 430)-

(12 492)-

15 557 2161 020 336

22 795 138 1 020 336 (7 225 430) (12 492) 16 577 552

Reconciliation of intangible assets - 31 March 2019

Opening balance Additions

Additions through transfer

of functions/mergers

Amortisation Total

Computer software 28 957 614 893 956 17 207 (7 073 639) 22 795 138


________________________________________________________________________________________________ 2020 2019 Restated*

Intangible assets in the process of being constructed or developed Cumulative expenditure recognised in the carrying value of Intangible assets Intangible assets under development 1 020 336 -

The intangible assets in progress relates to the Fleet management system that is still in progress.

20. HERITAGE ASSETS

2020 2019

Cost Accumulated im-pairment losses Carrying value Cost Accumulated im-

pairment losses Carrying value

Historical buildings 223 167 - 223 167 223 167 - 223 167

Reconciliation of heritage assets - 2020Opening balance Total

Historical buildings 223 167 223 167

Reconciliation of heritage assets - 31 March 2019

Opening balance Total

Historical buildings 223 167 223 167

Heritage assets which fair values cannot be reliably measuredThe following heritage asset(s) cannot be reliably measured: Genebanks and insect collections.

Fair value cannot be determined reliably due to the size and magnitude of the ARC Genebanks. The ARC is not aware of any market to buy and sell Genebanks or any other valuation method or technique that is available to measure Gen-ebanks. Due to the uniqueness of the Genebanks, mandate and nature of the ARC Genebanks, neither the fair value, deemed cost or replacement cost could be determined for these Genebanks. For those reasons, the ARC Genebanks could not be recognised in the Annual Financial Statements.

21. OTHER FINANCIAL ASSETS

Designated at fair value Distell Group Holdings (Capevin unbundling) 34 027 shares at R78.18 (2019: 34 027 shares at R128.83)La Concorde Holdings Limited ( formerly KWV Holdings LTD) 50 263 shares at R3.25 (2019: 51 041 shares at R3.25)Hosken Passenger Logistics and Rail Limited 64 955 shares at R3.20 (2019: 64 955 shares at R3.80)

2 660 228

163 355

207 856

4 383 695

165 883

246 829

3 031 439 4 796 407

OtherfinancialassetsdesignatedatfairvaluearesharesinJSElistedcompaniesinwhichtheARCisashareholder.Thefairvalueofotherfinancialassetstradedinactivemarketsisbasedonquotedmarketprices(level1)atthestatementoffinancialpositiondate.ThequotedmarketpriceusedforfinancialassetsheldbytheARCistheclosingprice.

Duringthecurrentyear,therewasanOddLotOfferforLaConcordeshareswhichresultedinthedisposalof778sharesat R3.25.

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*

Residual interest at cost* De Doorns Winery 9 880 shares at R0.55 (2019: 9 880 shares at R0.55)Lutzville 2009 Co operative Limited 107 000 shares at R0.01 (2019: 107 000 shares at R0.01)Burpak Limited 1 948 shares at R1.00 (2019: 1 948 shares at R1.00)Lutzville Vineyard Co operative 44 867 shares at R1.00 (2019: 44 867 shares at R1.00)Lutzville Vineyard Co operative 1 070 000 shares at R0.01 (2019: 1 070 000 shares at R0.01)Hex Valley Coolrooms 16 092 shares at R0.50 (2019: 16 092 shares at R0.50)Mcgregor Cooperative Limited 93 240 shares at R1.00 (2019: 110 320 shares at R1.00)Lanko Co operative Limited 21 063 shares at R1.00 (2019: 21 063 shares at R1.00)

5 434

1 070

-

44 867

10 700

8 049

93 240

21 063

5 434

1 070

1 948

44 867

10 700

8 049

93 240

21 063

184 423 186 371

*These interests represent the ARC shareholding in wine cooperatives that the ARC was a founding member of. There is no active market for the shares which are unlisted. Management considers the carrying value of the shares to be an approximation of their fair values.

In the current year, the shareholding of the ARC of 1948 shares constituting 0.054% of issued shareholding were sold at R1 per share held.

Total other financial assets 3 215 862 4 982 778Non current assets Designated at fair value Residual interest at cost

3 031 439184 423

4 796 407186 371

3 215 862 4 982 778

Financial assets at fair value

Fair value hierarchy of financial assets at fair value

Forfinancialassetsrecognisedatfairvalue,disclosureisrequiredofafairvaluehierarchywhichreflectsthesignificanceof the inputs used to make the measurements. The fair value hierarchy have the following levels:

• Level 1 represents those assets which are measured using unadjusted quoted prices in active markets for identical assets;

• Level 2 applies inputs other than quoted prices that are observable for the assets either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

• Level 3 applies inputs which are not based on observable market data.

Level 1 Financial assets designated at fair value JSE listed shares 3 031 439 4 796 407Financial assets at costNominal value of financial assets at costFinancial asset: Shareholding in wine co operations These interests represent the ARC shareholding in wine co-operatives that the ARC was a founding member of. There is no active market for the shares which are unlisted. Man-agement considers the carrying value of the shares to be an approximation of their fair values.

184 423 186 371

3 215 862 4 982 778

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*

22. PAYABLES FROM EXCHANGE TRANSACTIONS

Trade payables Payments received in advanced contract in process *Other payables Accrued leave pay Accrued audit fees

42 054 068141 301 77861 666 78861 303 4385 606 613

53 844 251146 780 65596 733 43560 281 9306 229 376

311 932 685 363 869 647

* Included in other payables is accruals, deposits from customers and salary control accounts. The movement is mainly due to the increase in goods received not invoiced and income received in advance.

Fair value of trade and other payablesCurrent Up to 60 days 90 days 91 - 120 days +120 days

378 24237 745 5571 849 539

683 5951 397 135

31 836 58216 240 2123 375 0501 585 412

806 99542 054 068 53 844 251

23. PROVISIONS

Reconciliation of provisions 2020Opening Balance Reversed during the year Total

Bonus provision 90 469 (90 469) -

Reconciliation of provisions 2019Opening Balance Additions Total

Bonus provision - 90 469 90 469

The bonus relates to performance bonuses due to Ncera Farms employees. In the current year DALRRD decided that the performance bonus will not paid thus it was reversed.

24. EMPLOYEE BENEFIT OBLIGATIONS

Retirement fundsTheARCcurrentlyprovidesforPost-RetirementMedicalBenefits(PRMB).

Post-retirement medical aid benefitsThis includes current and past employees of ARC who are currently members of the medical aid fund. Membership to the fund is voluntary.

TheCouncilattemptedtorestructurethedefinedmedicalaidscheme,intermsofwhichtheARChadobligationstopro-videcertainpost-retirementmedicalaidbenefitstoARCpensionersintermsofARCserviceconditions,byrenegotiatingthebenefitstructuring fromamedicalsubsidy toaguaranteed income(pension).ARCcurrentlyhasnocontinuationmemberswitheffectfrom1April2004.

Theschemeisactuariallyvaluedonanannualbasis.Theeffectivedateofthemostrecentactuarialvaluationwas31March2020.Atthatdate, intheopinionoftheactuary,thedefinedbenefitplanwasfoundtobeinasoundfinancialposition. The projected unit credit method has been used for purposes of determining the actuarial valuation. Change in currencyorinterestrateresultisaninsignificantchangeintheplanobligation.

Thefollowingtablesummarisesthecomponentsofthenetbenefitexpenserecognisedinthestatementoffinancialper-formanceandamountsrecognisedinthestatementoffinancialpositionasat31March2020.Theobligationisfulfilledas the employees exit this fund.

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*

TheamountincludedinthestatementoffinancialpositionarisingfromtheARCobligationinrespectofPRMBisasfol-lows:

The amounts recognised in the statement of financial position are as follows:

Carrying value Present valueof thedefinedbenefitobligationwhollyun-funde

(10 570 000) (13 491 000)

Changes in the present value of the defined benefit obligation are as follows:Opening balance BenefitspaidNetexpenserecognised in thestatementoffinancialper-formance

13 491 000(2 094 362)

(826 638)

15 387 000(2 958 180)

1 062 180

10 570 000 13 491 000

Net expense recognised in the statement of financial performance:Current service cost Interest cost Actuarial (gains) losses

420 0001 003 000

(2 249 638)

481 0001 046 000(464 820)

(826 638) 1 062 180

Key assumptions usedAssumptions used at the reporting date:Discount rates used Membership of the fund at 31 March

7.43%344

6.80%366

The basis on which the discount rate has been determined is as follows:

The nominal and real zero curves as at 31 March 2020 supplied by the JSE.

Defined contribution fundsItisthepolicyoftheentitytoprovideretirementbenefitstosubstantiallyallitsemployees.Anumberofdefinedcontribu-tion provident funds, all of which are subject to the South African Pension Fund Act No. 24 of 1956 exist for this purpose.

Attheendofthefinancialyearthefollowingfundswereinexistence:• ARCPensionfund(CategoryD),operatingasadefinedcontributionfund• ARCProvidentfund,operatingasadefinedcontributionfund

The ARC Pension Fund is administered by Alexander Forbes while the ARC Provident Fund is administered by Sanlam. Members pay a contribution of 7.5%. The employer’s contribution of 16% is expensed when incurred.

Theentityisundernoobligationtocoveranyunfundedbenefits.Employercontributionsandmembershipfortheperiodwere as follows:The total economic entity contribution to ARC Pension Fund (Option D)The total economic entity contribution to ARC Provident Fund

44 770 54216 025 554

44 460 30715 184 461

Membership during the year Membership for ARC Pension Fund (Option D)Membership for ARC Provident Fund

1 303923

1 350921

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*

25. UNSPENT CONDITIONAL GRANTS

These are government grants received that will be recognised in future accounting periods. Recognition in future periods will be in line with reporting standards and determined by construction work on the facilities concerned.

Conditional grants and receipts comprises of: Unspent conditional grants and receipts Foot-and-mouth Disease (“FMD”) vaccines facility Exotic Disease and the Wild Suide facilities

233 115 5154 877 451

121 276 8804 877 451

237 992 966 126 154 331

Movement during the yearBalance at the beginning of the year Additions during the year Income recognition during the year

126 154 331113 044 001(1 205 366)

126 754 807-

(600 476)237 992 966 126 154 331

Of the R290m allocated by National Treasury for the FMD project, R233m has yet to be spent. The ARC has started ring fencing the funds during the FY2020 and will continue to ensure that the adequate cash reserves are reserved for funding of the future work on the FMD. At year end, the ARC had cash and cash equivalents of R245,9m to fund the work on this project.

26. CAPITAL FUNDS

Issued Capital fund 111 986 013 111 986 013

The capital fund represents the cost of land when the ARC was transferred out of the Department of Agriculture, Forestry and Fisheries.

27. REVALUATION RESERVE

Opening balance Change during the year

215 020 431320 146 783

215 020 431-

535 167 214 215 020 431

Revaluation surplus relating to property, plant and equipmentRevaluation surplus beginning of period Movements in the reserve for the year

215 020 431320 146 783

215 020 431-

535 167 214 215 020 431

The land of the entity was revalued during the year based on independent professional valuations carried out by an ac-credited valuer. These valuations are determined based on the direct comparison method that makes reference to recent market transactions (see note 18).

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*

28. CASH GENERATED FROM OPERATIONS

Surplus(deficit)Adjustments for: Depreciation and amortisation Loss on sale of assets and liabilities Gain on foreign exchange Fair value adjustments Dividends in specie Impairment Movements in operating lease assets and accruals MovementsinretirementbenefitassetsandliabilitiesMovements in provisions Actuarial gains or losses ScrappingoffixedassetTransfer from entities under common control SaleofotherfinancialassetsInventories losses/write downs Changes in working capital: Inventories Receivables from exchange transactions Payables from exchange transactions VAT Unspent conditional grants

121 995 310

81 914 130(11 126 107)

(782 334)1 762 441

-(30 265 350)

7 699(671 362)(90 469)

(2 249 638)6 463 718

-2 529

618 175

(2 458 131)41 610 110

(54 533 347)(5 688 023)

111 838 635

(25 473 251)

73 196 568(2 113 607)

(439 745)746 677

(505 350)38 201 676

(51 079)(1 431 180)

90 469(464 820)1 363 881

(1 711 584)-

4 698 681

(15 229)(17 044 507)

4 835 768(1 300 637)

(600 476)258 347 986 71 982 255

29. TAXATION

The ARC is exempt from Income Tax in terms of section 10(1) (a) of the Income Tax Act No.58 of 1962.

30. FINANCIAL INSTRUMENTS DISCLOSURE

Categories of financial instruments

2020

Financial assetsAt fair value At amortised cost At cost Total

OtherfinancialassetsTrade and other receivables from ex-change transactions Cash and cash equivalents

3 031 439-

-

-128 840 317

245 935 648

184 423-

-

3 215 862128 840 317

245 935 6483 031 439 374 775 965 184 423 377 991 827

Financial liabilitiesAt amortised cost Total

Trade and other receivables from exchange transactions 109 327 469 109 327 469

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*

2019

Financial assetsAt fair value At amortised cost At cost Total

OtherfinancialassetsTrade and other receivables from ex-change transactions Cash and cash equivalents

4 796 407-

-

-171 392 742

76 348 179

186 371-

-

4 982 778171 392 742

76 348 1794 796 407 247 740 921 186 371 252 723 699

Financial liabilitiesAt amortised cost Total

Trade and other receivables from exchange transactions 156 807 062 156 807 062

31. TRANSFER OF FUNCTIONS BETWEEN ENTITIES UNDER COMMON CONTROL

Transfer of functions between entities under common control occurring during the current reporting period

Entities involved in the transfer of functions were:• Agricultural Research Council;• Department of Agriculture, Forestry and Fisheries; and• Ncera Farms (Pty) Ltd

The following functions were transferred:

Ncera Farms (Pty) Ltd was transferred as a going concern.

Thetransferoffunctiontookplaceduringthe2019financialyear.

ThetransferwasfinalisedonMonday,01April2019.

Value of the assets acquired and liabilities assumedAssets acquired Property, plant and equipment Intangible assets Inventory Receivables from exchange transactions Cash and cash equivalents

-----

1 695 161

17 207764 21114 305

1 041 940- 3 532 824

Liabilities assumed Trade creditors - 363 959Adjustments to the basis of accounting Deemed cost - 9 532 447Difference between the carrying amounts of the assets acquired, the liabilities assumed and adjustments required to the basis of accounting

- 12 701 312

Difference between net assets and the consideration paid - 3 168 063

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*

32. COMMITMENTS

Authorised capital expenditureAlready contracted for but not provided for

• Buildings• Computer equipment• Computer software• Infrastructure• Laboratory equipment• Machinery and farming equipment• Officefurnitureandequipment

215 843161 450138 573

8 827 5897 276 133

819 577154 185

470 370--

6 675 898171 695

-159 366

17 593 350 7 477 329Total capital commitments Already contracted for but not provided for 17 593 350 7 477 329Total commitmentsAuthorised capital expenditure 17 593 350 7 477 329Operating leases as lessee (expense)

Minimum lease payments due - within one year -insecondtofifthyearinclusive

1 930 0861 303 230

3 577 0891 793 923

3 233 316 5 371 012

ARC leases certain of its equipment in terms of operating leases. The ARC does not have the option to acquire the assets at the termination on the lease. There are no escalation or renewal terms clauses or restrictions imposed by the leases. The ARC is not charged any contingent rentals.

33. CONTINGENCIES

The guarantees on municipal and electrical accounts relate to the City of Tshwane municipality to ensure a continued service to the ARC Onderstepoort Veterinary Research Campus.

Legal costs and litigations relate to in the nature of the ARC business, agreements with complex deliverables may be entered into. All necessary steps are taken to manage the risks inherent to these transactions. If and when it is evident that there is a reasonable probability that a dispute on a transaction could lead to costs against the ARC, such costs will be disclosed. There are contingent liabilities in respect of: Guarantees on municipal and electricity accounts Legal costs and litigations Pending labour dispute

1 075 36052 568 6628 207 095

1 075 36047 099 756

70 00061 851 117 48 245 116

Contingent assetsMr Pretorius’ lease agreement fell into arrears in respect of his rental obligation, civil proceedings have commenced against the tenant concerned to recover an amount of R502 708. According to entity’s legal advisors, it is probable that the proceedings will result in the recovery of the full amount but this recovery is virtually certain.

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*

34. RELATED PARTIES

Relationships Executive managers are regarded as related parties

Ultimate controlling entity

Controlling entity

Publicentity(WithsignificantinfluenceovertheARC)Public entity (Under common control with the ARC) Public entity (Under common control with the ARC) Public entity (Under common control with the ARC) Public entity (Under common control with the ARC) Public entity (Under common control with the ARC)

RefertoCouncilandprescribedofficers’emolumentsnoteDepartment of Agriculture, Land Reform and Ru-ral Development Department of Agriculture, Land Reform and Ru-ral Development Department of Science and Technology National Agricultural Market Council Land Bank Onderstepoort Biological Products Perishable Products Export Control Board South African Veterinary Council

Related party balancesAmounts included in Trade receivable (Trade Payable) regarding related parties Department of Agriculture, Forestry and Fisheries ECSP Department of Agriculture, Forestry and Fisheries Other Grants Department of Agriculture, Forestry and Fisheries PBR registration Department of Science and Technology Onderstepoort Biological Products Trade receivables Onderstepoort Biological Products Trade payables

Unspent conditional grants from related parties Department of Agriculture Forestry and Fisheries Wild Suide Department of Agriculture Forestry and Fisheries FMD

(20 537 611)70 184 309

-412 900

1 179 342-

(4 877 451)(233 115 514)

(20 537 611)81 589 834

(15 796)-

(1 819 992)(47 899)

(4 877 451)(233 115 514)

These are government grants received that will be recognised in future accounting periods. Recognition in future periods will be in line with reporting standards and determined by construction work on the facilities concerned. Provision for doubtful debts related to outstanding balances with related parties Department of Agriculture Forestry and Fisheries 1 680 567 -

Related party transactionsPurchases from (sales to) related parties Department of Agriculture, Forestry and Fisheries Department of Agriculture, Forestry and Fisheries PBR registration Department of Agriculture, Forestry and Fisheries PIA registrations Department of Agriculture, Forestry and Fisheries Services Department of Science and Technology Other Revenue Grants National Agricultural Market Council Onderstepoort Biological Products Services Onderstepoort Biological Products Utilities recovery Perishable Products Export Control Board South African Veterinary Council

4 56832 045

361 212(17 619 083)(19 273 611)

111 00061 421

(13 750 088)29 948

111 645

82018 422 8 675

(19 344 465)(10 581 375)

-153 390

(15 077 020)-

33 179

Parliamentary GrantDepartment of Agriculture Forestry and Fisheries Department of Agriculture Forestry and Fisheries FMD Department of Science and Technology

(951 048 652)(1 205 366)

(26 086 957)

(902 362 596)(600 476)

(26 086 957)

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*Remuneration of management

Management class: Council

2020

Name Committee Fees TotalProf S Vil Nkomo (Chairperson) Ms J Mashiteng Dr JM Chitja Miss B Kali Mr SG Mthombeni Dr M Ngoepe Ntsoane Dr SAM van Oorsterhout Dr MN Makhura Adv ME Mphahlele Mr A Bishop Mr LA Makenete Mr A Stroebel Dr ME Ngidi Prof PW Mashela Mr M Brinkhuis Mr M Mahanjana

94 245101 24484 63397 356

144 16781 72662 20869 734

175 349109 25377 83865 76477 91670 14038 95866 174

94 245101 24484 63397 356

144 16781 72662 20869 734

175 349109 25377 83865 76477 91670 14038 95866 174

1 416 705 1 416 705

2019

Name Committee Fees TotalProf S Vil Nkomo (Chairperson) Ms J Mashiteng Dr JM Chitja Miss B Kali Mr SG Mthombeni Dr M Ngoepe Ntsoane Dr SAM van Oorsterhout Dr MN Makhura Adv ME Mphahlele Mr A Bishop Mr LA Makenete Mr A Stroebel Dr ME Ngidi Prof PW Mashela Mr M Brinkhuis Mr M Mahanjana

110 350127 669105 173104 391104 77482 471

119 64688 706

134 53189 77993 21662 26571 26189 92285 96088 126

110 350127 669105 173104 391104 77482 471

119 64688 706

134 53189 77993 21662 26571 26189 92285 96088 126

1 558 240 1 558 240

* See Note 35


________________________________________________________________________________________________ Figures in Rand

Management class: Executive management

2020

Name Basic salaryOther Short-

term employee benefits

Post-employ-ment benefits Leave payout Other long-

term benefitsOther benefits

received Total

Dr SR Moephuli Ms MM Manyama Dr MA Magadlela Dr N Motete Ms MH Umlaw Dr T Sethibe Dr TS Mkhabela Dr MS Jeenah

2 758 0912 574 3881 805 0611 766 7671 810 7371 778 4542 017 143

461 093

77 58633 37220 93325 95252 76744 196

--

411 800325 458227 865260 417195 313191 559

--

-------

247 451

--

78 238----

52 279

40 861-

11 818-

3966 167

15 158-

3 288 3382 933 2182 143 9152 053 1362 059 2132 020 3762 032 301

760 823

14 971 734 254 806 1 612 412 247 451 130 517 74 400 17 291 320

Note 1: Dr MS Jeenah’s contract ended 31 May 2019.

2019

Name Basic salaryOther Short-

term employee benefits

Post-employ-ment benefits

Termination benefits

Other benefits received Total

Dr SR Moephuli Ms MM Manyama (Note 1) Mr DS Chocho (Note 2) Dr MS Jeenah Dr MA Magadlela Dr N Motete Mr F Monkwe (Note 3) Ms MH Umlaw Dr LL Magingxa (Note 4) Mr K Maake (Note 5) Dr T Sethibe (Note 8) Dr Y Pakela Jezile (Note 6) Dr TS Mkhabela (Note 7) Ms M Phaswana (Note 9)

2 758 0911 426 644

868 6883 018 6671 820 1941 803 294

-1 796 234

-52 344

621 891213 195

1 633 125490 735

70 40818 14912 484

-44 05023 827

-47 994

--

17 586---

409 762189 851

--

179 507216 047

-194 346

--

79 816---

--

27 879---

76 961-

152 520-----

14 9974 449

-4 805

16 507--

3 92432 225

---

38 922-

3 246 3881 639 093

909 0513 023 4722 060 2582 043 168

76 9612 042 498

184 74552 344

719 293213 195

1 672 047490 735

16 496 232 234 498 1 269 329 257 360 115 829 18 373 248

Note1:MsMMManyamawasappointedasCFOeffectivefrom10September2018.Note 2: Mr DS Chocho was appointed as CFO from 01 May 2018 to 31 July 2018.Note3:MrFMonkweresignedasGE:ICTandInfrastructureeffectivefrom28February2018.Note4:DrLLMagingxaresignedasGE:AgriEconomicsandCapacityDevelopmenteffectivefrom28February2018.Note 5: Mr K Maake was appointed acting CFO from 01 January 2018 to 30 April 2018 and 01 August 2018 to 07 September 2018.Note6:DrYPakelaJezilewasappointedactingGE:GE:AgriEconomicsandCapacityDevelopmenteffectivefrom05March2018to15June2018.Note7:DrTSMkhabelawasappointedasGE:AgriEconomicsandCapacityDevelopmenteffectivefrom18June2018.Note8:DrTSethibewasappointedasGE:ICTandInfrastructureeffectivefrom05November2018.Note9:MsMPhaswanawasappointedactingGE:ICTandInfrastructureeffectivefrom05March2018to02November2018.


________________________________________________________________________________________________ 2020 2019 Restated*

Management class: Audit Committee

2020

Name Committee Fees TotalMr VN Naicker Mr LM Mangquku Mr JH Mcbain Ms K Mokoena

116 016114 475110 30090 300

116 016114 475110 30090 300

431 091 431 091

2019

Name Committee Fees TotalMr VN Naicker Mr LM Mangquku Mr JH Mcbain Ms K Mokoena

123 90675 80465 20573 676

123 90675 80465 20573 676

338 591 338 591

35. PRIOR PERIOD ERRORS AND RECLASSIFICATIONS

Presentedbelowarethoseitemscontainedinthestatementoffinancialposition,statementoffinancialperformanceandcashflowstatementthathavebeenaffectedbyprioryearadjustments:

During FY2014, the entity changed its accounting policy with respect to the valuation of land to revaluation model how-ever the change in accounting policy was not implemented. Management embarked on a revaluation of land during the currentfinancialyear,asthusresolvedtoretrospectivelyapplytherevaluationmodelonlandandaccountfortheFY2014fair value adjustments as part of the Prior Period errors.

The ARC revalued both its R1 cost assets transferred from DAFF, assets from entities under common control which were previously accounted for at their carrying values and fully depreciated assets still in use at their fair considerations after re assessment of their residual values and useful lives.

Included in the property, plant and equipment corrections is the restatement of biological assets resulting from the valu-ation of bearer plants.

Duringthecurrentfinancialyear,managementembarkedonanexercisetocleanupofinvalidGRNs.Thisresultedinthepriorperiodadjustmentsthatwereaffectingproperty,plantand&equipment,inventory,employeecosts,leaseexpenses,operating expenses and payables from exchange transactions.Duringthecurrentfinancialyear,managementembarkedonanexercisetoeliminateoldprojects(WIP)thatcouldnotbeeliminatedduetosystemlimitation.Thisresultedinthepriorperiodadjustmentsthatwereaffectingrevenue,receivablesand payables.

Statement of financial position

2018

Note As previously reported Correction of error RestatedInventories Receivables from exchange transactions Property, plant and equipment Payables from exchange transactions Revaluation reserve Accumulated surplus

1314182227

19 722 574199 947 739

1 029 659 972(371 529 103)

-(713 915 022)

975 976(3 640 965)

338 436 48411 569 523

(215 020 431)(132 320 587)

20 698 550196 306 774

1 368 096 456(359 959 580)(215 020 431)(846 235 609)

163 886 160 - 163 886 160

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*

2019

Note As previous-ly reported

Correction of error

Re classification Restated

Inventories Receivables from exchange transactions Biological assets Investment property Property, plant and equipment Payables from exchange transactions Revaluation reserve Accumulated surplus

13141617182227

18 875 493169 181 737

-98 648

1 057 701 303(394 895 183)

-(692 375 804)

(2 032 043)5 474 995

-3 040 832

315 954 15531 025 536

(215 020 431)(138 443 044)

(746 546)-

746 546-----

16 096 904174 656 732

746 5463 139 480

1 373 655 458(363 869 647)(215 020 431)(830 818 848)

158 586 194 - - 158 586 194

Statement of financial performance

2019

Note As previous-ly reported

Correction of error

Re classification Restated

Sale of goods in agricultural activities Rendering of services Royalty income Rental of facilities and equipment Other income Interest received Government grants Employee-related costs Depreciation and amortisation Impairment loss/Reversal of impairments Finance costs Lease rentals on operating lease Operating and administration expenses Repairs and maintenance Loss / (gain) on foreign exchange Gain on biological assets and agricultural produce Inventories losses/write downs

3333345

7128919

11

(20 173 801)(278 156 712)(33 697 316)(22 589 348)(22 717 399)(7 218 048)

(929 050 029)820 446 61743 627 68043 095 349

93 98223 526 978

379 236 00526 901 667

(439 904)--

100 504(319 497)

(2 505 334)4 100 035(764 444)(87 582)

3(1 632 387)29 568 888(2 893 997)

(1 760)(2 203 696)

(17 738 213)(3 199 211)

1591 712 4872 699 005

---------

(1 999 676)------

1 999 676

(20 073 297)(278 476 209)(36 202 650)(18 489 313)(23 481 843)(7 305 630)

(929 050 026)818 814 23073 196 56838 201 676

92 22221 323 282

361 497 79223 702 456

(439 745)1 712 4874 698 681

Surplus for the year 22 885 721 6 834 960 - 29 720 681

Cash flow statement

2019

Note As previously reported Correction of error Restated

Cash flow from operating activitiesSale of goods and services Grants Interest received Employee costs Suppliers Finance costs

367 004 905928 449 553

7 218 048(806 343 568)(424 154 439)

(93 982)

(6 833 227)(3)

87 5821 632 3874 815 394

1 760

360 171 678928 449 550

7 305 630(804 711 181)(419 339 045)

(92 222)

72 080 517 (296 107) 71 784 410Cash flow from investing activitiesPurchase of property, plant and equipment (65 114 276) 296 107 (64 818 169)

* See Note 35


________________________________________________________________________________________________ 2020 2019 Restated*

36. RISK MANAGEMENT

Financial risk managementTheCouncilmembersmonitorandmanagethefinancialrisksrelatingtotheoperationsoftheentitythroughinternalriskreports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk,fairvalueinterestraterisk,cashflowinterestrateriskandpricerisk),creditriskandliquidityrisk.

Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The entity does notenterintoortradefinancialinstruments,includingderivativefinancialinstruments,forspeculativepurposes.

Liquidity riskThe entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages liquidity risk through an ongoing review of future commitments and credit facilities.

Liquidityriskreferstotheriskthatanentitywillencounterdifficultyinmeetingobligationsassociatedwithfinancialliabili-ties.TheCouncilmembersaresatisfiedthattheentitywillbeabletosettleitsfinancialliabilities(payablesandleavepayaccrual) in the normal course of business. Liquidity risk is managed by cash forecasting.

The cash commitments of the entity have cast doubt around the entity’s ability to continue operating as a going concern. These concerns are allayed by mitigating circumstances that are articulated in the Accounting Authority’s Responsibilities andApprovalstatement.TheLiquidityriskisreducedbytheentity’scontinuedfocusonfinancialdisciplineaswellasthecommitment by Department of Agriculture, Forestry and Fisheries (DAFF) to fund the entity.

Credit riskCreditriskconsistsmainlyofcashdeposits,cashequivalents,derivativefinancialinstrumentsandtradedebtors.Theentity only deposits cash with major banks with high quality credit standing and limits exposure to any one counter party.Financial assets which potentially subject the ARC to concentrations of credit risk consist principally of cash shortterm depositsplacedwithhighcreditqualityfinancial institutions.Tradereceivablesarepresentednetofanallowancefordoubtfulreceivables.Currentlyonlyfiveoftheentity’slargestdebtorsexceed2%ofthetotaltradereceivablesbalanceasdisclosedinnote14.TheARCdoesnothaveanysignificantexposuretoanyotherindividualcustomerorcounterparty.Thecarryingamountsoffinancialassets included in thestatementoffinancialpositionrepresent theARCmaximumexposure to credit risk in relation to these assets. ARC does not hold collateral or any credit enhancements to cover its credit risk.

Market riskRisk from biological assetsTheentityisexposedtofinancialrisksarisingfromchangesinmilkprices.Theentitydoesnotanticipatethatmilkpriceswilldeclinesignificantlyintheforeseeablefuture.Theentityhasnotenteredintoderivativecontractstomanagetheriskofadeclineinmilkprices.Theentityreviewsitsoutlookformilkpricesregularlyinconsideringtheneedforactivefinan-cial risk management.

Interest rate riskInterest rate exposure and investment strategies are evaluated by management on a regular basis. Interest bearing in-vestments are held with several reputable banks in order to minimise exposure.

The following demonstrates the sensitivity to a reasonable change in interest rates, with all being constant and the impact on net surplus:

Variable rate instruments: Carrying amount Financial assets: Bank balances Financial assets: Short term cash deposits

12 483 699233 451 949

46 939 17129 409 008

245 935 648 76 348 179

Sensitivity analysis

Financial instrument Current interest rate

Due in less than a year

Due in one to two

years

Due in two to three years

Due in three to

four years

Due after five years

Cash in current banking institu-tions 5.15% 245 935 648 - - - -

The interest rate used is based on the call deposit rate as at 31 March 2020.


________________________________________________________________________________________________ 2020 2019 Restated*

Anincreaseof50basispointsininterestratesatthereportingdatewouldhaveincreasedequityandprofitandlossbythe amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for 2019.

Variable rate instruments 1 229 678 381 741

Adecreaseof50basispointswouldhavehadtheequalbutoppositeeffecttotheamountsshownabove.

Foreign exchange risk

Theentitydoesnothedgeforeignexchangefluctuations.

The exchange rate were obtained from OANDA.com.

The entity is exposed to currency risk on sales and purchases that are denominated in a currency other than the func-tional currency of the entity. The currencies in which the entity primarily deals are US Dollars and Euros. No forward exchangecontractsaretakenoutforthesetransactions.Theentityconsidertheforeigncurrencyrisktobeinsignificant.

Exchange rates used for conversion of foreign items were:USDGBPEURO

16,666820,976318,4323

14,317218,603216,0405

Price riskTheentityisexposedtoequitysecuritiespriceriskbecauseofinvestmentsheldbytheentityandclassifiedonthecon-solidatedstatementoffinancialpositioneitherasavailableforsaleoratfairvaluethroughsurplusordeficit.Theentityis not exposed to commodity price risk. To manage its price risk arising from investments in equity securities, the entity diversifiesitsportfolio.Diversificationoftheportfolioisdoneinaccordancewiththelimitssetbytheentity.

The ARC is exposed to price risk on its purchases. Prices for future purchases, sales of goods and services are generally established on normal commercial terms. The risk is managed by the application of procurement policy that encourages obtaining goods and services at best prices.

TheCouncilmembersconsiderthepricerisktobeinsignificant.

37. GOING CONCERN

The Annual Financial Statements have been prepared on the basis of accounting policies applicable to a going concern. Thisbasispresumesthatfundswillbeavailabletofinancefutureoperationsandthattherealisationofassetsandsettle-ment of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

COVID 19 is an unprecedented challenge for humanity, businesses and the economy at large. At the date of the report, itseffectsaresubjecttosignificantlevelsofuncertainty.InordertofurtheraddresstheinherentuncertaintyembeddedinthecurrentsituationthattheARCandcountryfindthemselvesin,managementhasconsideredthepotentialimpactsonthe organisation by taking a variety of risk elements into account and, impact on forward looking business prospects as articulated in the MTEF FY2021 – FY2023:

• Future revenue pipeline, as thus it is assumed that 40% of the external income is at risk as thus highly unlikely to be achieved. This is estimated at an external income loss of R197 million and R247 million for the 2021 and 2022 financialyearsrespectively

• Impacts on the cost structures. The additional costs arising from COVID – 19 pandemic will be prioritised and ca-tered for, within the approved budget. The Operating Costs for FY2021 is estimated to be at 60% of the planned levels due to the delayed spending on core business.

• Impact the reduction in the employee-related costs arising from the implementation of the ARC Sustainability and FinancialTurnaroundPlan.Theresultingsavingsisestimatedat15%and30%forthe2021and2022financialyears respectively.

• Impactofthenonpaymentfromprivatecustomershasbeenconsiderednotsignificant.


________________________________________________________________________________________________ 2020 2019 Restated*

Some of our clients may also face credit-related issues but, the Company’s assessment of credit risk is that that the ARC customer base is unrelated and concentration of credit risk with respect to trade receivables is limited.

Despitethepotentiallyconsiderableimpactofthispandemiconthe2021resultsandfinancialposition,theequityoftheARC is strong enough for the foreseeable future to absorb the economic shock caused by COVID-19. The ARC will be able to continue in operation and meet its liabilities as they fall due for at least the next twelve months. Therefore, 2020 Annual Financial Statements have been established on a going concern basis.

38. EVENTS AFTER THE REPORTING DATE

Witheffectfrom1July2020,anewCouncilwasappointedbytheMinisterofAgriculture,LandReformandRuralDevel-opment.

Subsequent to year end R60,4 million was received from Department of Agriculture, Forestry and Fisheries settling the long-outstanding debt.

In the light of recent developments, we have assessed the potential implications of the coronavirus pandemic for the ARC and its Financial Statements. Though the coronavirus disease 2019 pandemic started December 2019, its worldwide spread subsequent to 31 December 2019 which led to the country lockdown on the 27 March 2020 is a non adjusting event as per GRAP 14 - Events after the Reporting Date. No changes resulting from the impact of coronavirus are re-flectedintheARCmeasurementofassetsandliabilitiesatthereportingdate.Thedirectorsarenotawareofanyothereventsafterthereportingperiodthatwillhaveanimpactonthefinancialposition,performanceorcashflowsoftheARC.Some of our clients may also face credit-related issues but, the entity’s assessment of credit risk is that that the ARC customer base is unrelated and concentration of credit risk with respect to trade receivables is limited.

39. FRUITLESS AND WASTEFUL EXPENDITURE

Opening balance as previously reported Correction of prior period error

581 163(1 760)

480 347-

Opening balance as restated Add:ExpenditureidentifiedcurrentLess: Amounts recoverable current Less:Amountwrittenoffpriorperiod

579 403237 532(1 870)(4 218)

480 347100 816

--

Closing balance 810 847 581 163

Expenditure identified in the current year include those listed below:

Missedflight

Interest of late payment of suppliersIncorrect orders received

Disciplinary steps taken/criminal proceedingsOfficial offered to pay thewasted amount in threeinstalmentsTo be determined Matter is still under investigation to determine if ARC sufferedafinancialloss

1 870

219 75015 912

6 834

93 982-

Amounts recoverableThe employee accepted liability and arrangements to pay the amount were made.

Missedflghts 1 870 -

Amounts written offAfter theCouncil committee investigations,Council adopted theCouncil committee recommendation towrite off anamount of R 4 218 from the total fruitless and wasteful expenditure amount as it was proven without reasonable doubt that the amount was not recoverable.

Missedflight Condoned by (Condoning authority)ChiefExecutiveOfficersoftheARC 4218 -


________________________________________________________________________________________________ 2020 2019 Restated*

40. IRREGULAR EXPENDITURE

Opening balance Correction of prior period error

513 234 392(40 690)

510 734 370-

Opening balance as restated Add: Irregular Expenditure current Less: Amounts recoverable current

513 193 70222 576 980

(25 280)

510 734 3702 500 022

-Closing balance 535 745 402 513 234 392

Incidents/cases identified in the current year include those listed below:

- Deviations - Three written quotations not invited - Costs incurred on incorrect delivery Contravention of Section 38(1)(a)(iii) of the Public Finance Management Act 1 of 1999 (as amended by Act 29 of 1999) (PFMA) - Order issued after invoice was received - Variation on the PO without due approval -Purchasingofofficerefreshmentswithout approval - Extension of contract without following due process - WIETA audits were conducted on farms without an order number

Disciplinary steps taken/criminal proceedings:- To be determined - Submission requesting for approval to pay outstanding invoices - To be determined

- To be determined

- The matter is being investigate by Internal Audit - Funds recovered

- The matter is being investigate by Internal Audit -AwaitinginformationfromWIETAtoconfirmwho requested the service.

22 240 10644 972

-266 622

--

25 280-

-

2 357 677-

15 912-

1 23620 226

1 05563 226

40 690

22 576 980 2 500 022

The amount of R513 193 702 irregular expenditure carried forward from prior year is irregular expenditure awaiting condonation by National Treasury, as the relevant authority to condone such transgressions. These transgressions were mainly due to over expenditure on the budget. There were no losses incurred and value for money was achieved through the goods and services rendered.

Cases under investigationVariation on the PO without due approval Extension of contract without following due process

--

20 22663 226

- 83 452

Amounts recoverableAfterinvestigations,theCounciladoptedtherecommendationstorecoveranamountofR25280fromtheofficialasitwasprovenwithoutreasonabledoubtthattheofficialwasliablefortheidentifiednoncompliancetotheSCMprocesses.


________________________________________________________________________________________________ 2020 2019 Restated*

41. ACCOUNTING BY PRINCIPALS AND AGENTS

The entity is a party to a principal agent arrangement(s).

Details of the arrangment(s) is|are as follows:

ARC is the proprietor of certain plant varieties wherein SANSOR is appointed to collect royalties on behalf of the ARC.

Theentityistheprincipal.Refertonote1.4forsignificantjudgementsappliedinmakingthisassessment.

SANSORisthedesignatedauthoritytomanageandexecuteallfunctionspertainingtoseedcertificationonbehalfofgovernment.

Entity as principal

Resources (including assets and liabilities) of the entity under the custodianship of the agent

The agent may invest license payments in investment fund.

Fee paidFee paid as compensation to the agent 348 759 224 067

Resource and/or cost implications for the entity if the principal agent arrangement is terminatedThe arrangement may be terminated by either party subject to three months notice.

42. SEGMENT INFORMATION

General informationIdentification of segmentsTheentityisorganisedandreportstomanagementonthebasisoffivemajorfunctionalareas:animalsciences,cropsciences, impact & partnerships, research & innovation systems and soil, climate & water. The segments were organised around the type of service delivered and the target market. Management uses these same segments for determining strategic objectives. Segments were aggregated for reporting purposes.

Information reported about these segments is used by management as a basis for evaluating the segments’ performanc-es and for making decisions about the allocation of resources. The disclosure of information about these segments is also considered appropriate for external reporting purposes.

Aggregated segmentsThe entity operates throughout the South Africa in 8 provinces. Segments were aggregated on the basis of services delivered as management considered that the economic characteristics of the segments throughout South Africa were sufficientlysimilartowarrantaggregation.

Types of goods and/or services by segmentThese reportable segments as well as the goods and/or services for each segment are set out below:

Reportable segment Animal Science Crop Science Impact and Partnerships

Soil, Climate and Water

Research and Innovation Systems

Goods and/or services Animal health and production Improvement and cultivation of various crops Translating the ARC research results into useable outputsinsupportofagrariantransformationandtheefficiencyandcompetitiveness of the sector Carry out research and development on the naturalagricultural resources, viz, soil, climate and water Provides collaborative and support functions to a wide rangeof technologies in areas such as genomics, phenomics,remote sensing, agricultural systems modelling andengineering systems.


________________________________________________________________________________________________ Figures in Rand

Segment surplus or deficit, assets and liabilities

2020

AnimalSciences

Crop Sciences

Impact andPartnerships

Research andInnovationSystems

Soil, Climate

and WaterTotal

Revenue Revenue from non-exchange transactions Revenue from exchange transactions Interest revenue Dividends received

195 092 979134 549 424

56 062-

334 836 007164 401 711

27 471136 972

22 038 2011 945 715

--

39 558 73722 339 761

--

37 215 89822 395 432

--

628 741 822345 632 043

83 533136 972

Total segment revenue 329 698 465 499 402 161 23 983 916 61 898 498 59 611 330 974 594 370Entity’s revenue 974 594 370

Expenditure Salaries and wages Other expenses Depreciation and amortisation Lease rentals on operating lease Repairs and maintenance

226 365 641105 650 77422 059 0971 665 7028 453 483

362 105 823125 718 04138 917 7481 869 946

18 813 138

16 238 9091 639 433

57 469-

1 207

26 859 47916 364 0554 538 333

136 0281 197 712

48 772 86625 251 1505 766 746

437 238978 023

680 342 718274 623 45371 339 3934 108 914

29 443 563

Total segment expenditure 364 194 697 547 424 696 17 937 018 49 095 607 81 206 023 1 059 858 041Total segmental surplus/(deficit) (85 263 671)Interest expense 203 260

2019

AnimalSciences

Crop Sciences

Impact andPartnerships

Research andInnovationSystems

Soil, Climate

and WaterTotal

Revenue Revenue from non-exchange transactions Revenue from exchange transactions Interest revenue Dividends received

180 853 384139 100 739

49 935-

302 884 527167 285 737

354 311703 193

21 483 1207 030 172

--

30 052 21221 022 561

--

35 084 61724 345 753

--

570 357 860358 784 962

404 246703 193

Total segment revenue 320 004 058 471 227 768 28 513 292 51 074 773 59 430 370 930 250 261Entity’s revenue 930 250 261

Expenditure Salaries and wages Other expenses Depreciation and amortisation Lease rentals on operating lease Repairs and maintenance

231 203 395108 797 69717 906 9166 321 9797 786 540

364 467 010128 577 56238 248 2127 044 570

12 830 863

17 149 97310 083 092

5 000--

25 941 00013 577 4894 164 712

692 2811 997 698

50 457 62528 756 5764 606 3831 463 156

871 259

689 219 003289 792 41664 931 22315 521 98623 486 360

Total segment expenditure 372 016 527 551 168 217 27 238 065 46 373 180 86 154 999 1 082 950 988Total segmental surplus/(deficit) (152 700 727)Interest expense (80 387)

Measurement of segment surplus or deficit, assets and liabilities

Basis of accounting for transactions between reportable segments

Theaccountingpoliciesofthesegmentsarethesameasthosedescribedinthesummaryofsignificantaccountingpol-icies, except that pension expense for each segment is recognised and measured on the basis of cash payments to the pension plan.


PO Box 8783Pretoria

0001Tel: +27 12 427 9700

Fax: +27 12 430 5814

RP236/2020ISBN: 978-0-621-48530-1

Title of Publications: Annual Report 2019-2020 Agricultural Research Council.

1 epor 20192020 - the agricultural research council is a

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