11

NAMC STRATEGIC PLAN AND NAMC STRATEGIC PLAN AND BUDGET PRESENTATIONBUDGET PRESENTATION

PORTFOLIO COMMITTEE ON PORTFOLIO COMMITTEE ON AGRICULTURE;AGRICULTURE;09 March 2006 09 March 2006

22

STRUCTURE OF PRESENTATIONSTRUCTURE OF PRESENTATION

Questions from last Portfolio Committee Questions from last Portfolio Committee briefingbriefing

Highlights for the 2005/06 Highlights for the 2005/06

The Strategic Plan for 2006/07The Strategic Plan for 2006/07

Budget 2006/07Budget 2006/07

33

QUESTIONS & ANSWERSQUESTIONS & ANSWERS How much is expected from the Wool Trade Mark & when will the funds be How much is expected from the Wool Trade Mark & when will the funds be

transferred?transferred?– The financial statements will be published before end of March 2006;The financial statements will be published before end of March 2006;– Expect R15,4 million Expect R15,4 million

Translate the NAMC booklet to other official languagesTranslate the NAMC booklet to other official languages– The Parliamentary Officer on Agriculture received copies of translated The Parliamentary Officer on Agriculture received copies of translated

documentsdocuments

We need copies of your research reports on competitivenessWe need copies of your research reports on competitiveness– The Parliamentary Officer Received copies of the Competitiveness report,, as The Parliamentary Officer Received copies of the Competitiveness report,, as

well as copies of the Food Cost Review and the report on Statutory Measures well as copies of the Food Cost Review and the report on Statutory Measures

Employ someone with expertise on assisting black agribusiness in Employ someone with expertise on assisting black agribusiness in marketingmarketing– Restructured the administration and hired a Senior Person to Head the Restructured the administration and hired a Senior Person to Head the

Enterprise Development DivisionEnterprise Development Division

What is your capacity to undertake Economic ResearchWhat is your capacity to undertake Economic Research– Created an Economic Research Division, with key staff, research strategy and Created an Economic Research Division, with key staff, research strategy and

funding. funding.

44

GUIDING DOCUMENTSGUIDING DOCUMENTS

Marketing of Agricultural Product ActMarketing of Agricultural Product Act

The Strategic Plan for South African AgricultureThe Strategic Plan for South African Agriculture

Draft Transformation Charter for AgricultureDraft Transformation Charter for Agriculture

Accelerated and Shared Growth Initiative for Accelerated and Shared Growth Initiative for South AfricaSouth Africa

55

MANAGEMENTMANAGEMENT

Leadership:Leadership:– Council headed M Karaan; 9 other Council Council headed M Karaan; 9 other Council

Members; Members; all part-timeall part-time

Management:Management:– Appointed CEOAppointed CEO– CFOCFO– MANCOMMANCOM

66

HIGHLIGHTS HIGHLIGHTS

77

FOOD PRICE MONITORINGFOOD PRICE MONITORING

Collaboration with DoA, University of Pretoria & StatSACollaboration with DoA, University of Pretoria & StatSA Published Food Cost Review & Quarterly (4) Food Price Published Food Cost Review & Quarterly (4) Food Price

Trends Trends Trained 80 Provincial Food Price Monitors (PDA Trained 80 Provincial Food Price Monitors (PDA

Extension personnel)Extension personnel) Captured rural food price data from identified rural Captured rural food price data from identified rural

stores & Spazasstores & Spazas Working on an MOU between NAMC, StatSA, DoA and Working on an MOU between NAMC, StatSA, DoA and

PDAPDA NB: See the latest copies of the Food Price Trend Press NB: See the latest copies of the Food Price Trend Press

Release and Food Cost Review ReportRelease and Food Cost Review Report

88

STATUTORY MEASURES STATUTORY MEASURES INVESTIGATIONSINVESTIGATIONS

Dairy- Recommended & Approved (Industry requested to Dairy- Recommended & Approved (Industry requested to submit a transformation plan)submit a transformation plan)

Red Meat- Recommended & Approved (for only 2 yrs)Red Meat- Recommended & Approved (for only 2 yrs) Sorghum- Recommended & ApprovedSorghum- Recommended & Approved Imported Cotton Lint-Recommended non-approval & Imported Cotton Lint-Recommended non-approval &

immediate implementation of the Cotton Strategic Planimmediate implementation of the Cotton Strategic Plan Winter Cereal- On-goingWinter Cereal- On-going Cotton- Registration, Records and Returns Cotton- Registration, Records and Returns

Conditions on the use of levy funding:Conditions on the use of levy funding:– 20%- Transformation20%- Transformation– 10%- Administration10%- Administration– 70%- Research, Development, Consumer Assurance, 70%- Research, Development, Consumer Assurance,

CommunicationCommunication

NB: See the 2005 Report on Statutory Measures. NB: See the 2005 Report on Statutory Measures.

99

USE OF STATUTORY LEVIESUSE OF STATUTORY LEVIES COLLECTEDCOLLECTED

Total value of Total value of productionproduction

R’ millionR’ million

Levies collectedLevies collected

R’ millionR’ million

Levies available for Levies available for PDIsPDIs

R’ millionR’ million

Levy collection Levy collection success ratesuccess rate

CitrusCitrus 2 6002 600 15.015.0 1.31.3 94%94%

CottonCotton 240240 4.84.8 0.60.6 100%100%

DairyDairy 3 8123 812 6.36.3 1.91.9 28%28%

Deciduous FruitDeciduous FruitPome FruitPome FruitStone FruitStone FruitTable GrapesTable Grapes

2 1242 124

737737

1 7961 796

14.514.5

6.16.1

11.211.2

1.91.9

0.30.3

0.70.7

96%96%

98%98%

95%95%

Dried FruitDried Fruit 136136 1.51.5 0.20.2 97%97%

PotatoPotato 2 5292 529 14.314.3 1.41.4 99%99%

SorghumSorghum 200200 1.21.2 0.10.1 89%89%

WineWine

Winetech Winetech (Grapes)(Grapes)

WOSAWOSA

SAWISSAWIS

2 7912 79112.712.7

16.916.9

6.06.0

4.14.1

3.43.4

0.90.9

100%100%

100%100%

100%100%

Winter CerealWinter Cereal 2 8472 847 19.619.6 1.31.3 90%90%

TotalTotal 19, 81219, 812 130.1130.1 18.118.1

1010

SECTION 7 INVESTIGATIONSSECTION 7 INVESTIGATIONS

Fresh Produce MarketsFresh Produce Markets Competitiveness StudyCompetitiveness Study Game Section 7 InvestigationGame Section 7 Investigation Sorghum Section 7 InvestigationSorghum Section 7 Investigation Citrus Exports Section 7 InvestigationCitrus Exports Section 7 Investigation Input Cost Monitoring Section 7 Input Cost Monitoring Section 7

Investigation Investigation

1111

MARKETING SCHEMESMARKETING SCHEMES(On-going)(On-going)

Red Meat (with MIT Structures)Red Meat (with MIT Structures)– Market based Incentives on livestock marketing (Auction, Feedlot, Market based Incentives on livestock marketing (Auction, Feedlot,

Direct to Abattoir, Local market)Direct to Abattoir, Local market)– AgriBEE ownership optionsAgriBEE ownership options– Infrastructure requirementsInfrastructure requirements– Stock improvement requirementsStock improvement requirements– TrainingTraining

Grains (Cooperatives)Grains (Cooperatives)– Working through Co-operatives on Contract growing models (Input Working through Co-operatives on Contract growing models (Input

Finance, Machinery, Marketing, Skills Development )Finance, Machinery, Marketing, Skills Development )– AgriBEE ownership optionsAgriBEE ownership options

Citrus Citrus – Marketing (Export incentives schemes, local markets through Marketing (Export incentives schemes, local markets through

retailers)retailers)– Orchards Ownership ModelsOrchards Ownership Models– BEE options in logisticsBEE options in logistics– AgriBEE ownership options in Fruit Exporting CompaniesAgriBEE ownership options in Fruit Exporting Companies

1212

SRATEGIC PLAN FOR SRATEGIC PLAN FOR 2006/072006/07

1313

RESTRUCTURING RESTRUCTURING

Changed administration from a Commodity Changed administration from a Commodity base to Competency base base to Competency base

The Marketing Act Review Process will in The Marketing Act Review Process will in future inform the structure and mandate of future inform the structure and mandate of the Councilthe Council

Four Key competencies are:Four Key competencies are:– Marketing & TradeMarketing & Trade– Economic ResearchEconomic Research– Enterprise DevelopmentEnterprise Development– Statutory MeasuresStatutory Measures

1414

MARKETING & TRADE MARKETING & TRADE

1515

MARKETING MARKETING

Marketing Schemes on Citrus, Grains & Red Meat Marketing Schemes on Citrus, Grains & Red Meat (Incentives, viable empowerment models, etc)(Incentives, viable empowerment models, etc)

Produce a series of Annual Industry Specific Growth Produce a series of Annual Industry Specific Growth PerspectivesPerspectives

Collaborate with Table Grape Industry to undertake Collaborate with Table Grape Industry to undertake Market Research on Russia & China Market Research on Russia & China

Collaborative market research with other sectors will be Collaborative market research with other sectors will be undertaken undertaken

Address marketing issues coming from the CEO’s Address marketing issues coming from the CEO’s Forum and the Presidential Working Group on Forum and the Presidential Working Group on Commercial Agriculture (competition, business costs, Commercial Agriculture (competition, business costs, exports, food safely, etcexports, food safely, etc

1616

ECONOMIC RESEARCH ECONOMIC RESEARCH

1717

ECONOMIC RESEARCHECONOMIC RESEARCH

Create a Research Fund - NAMC to contribute an Create a Research Fund - NAMC to contribute an amount to start the Fundamount to start the Fund– Other donor encouraged to contributeOther donor encouraged to contribute– Fund ring-fenced for Economic Research purpose Fund ring-fenced for Economic Research purpose

onlyonly– Research committee to come-up with Research committee to come-up with research research

themesthemes– Call for proposals from Universities & other Call for proposals from Universities & other

research associates research associates

1818

RESEARCH FOCUS AREASRESEARCH FOCUS AREAS CompetitivenessCompetitiveness

– FPM, Input Cost Monitoring, Trade DataFPM, Input Cost Monitoring, Trade Data Price AnalysisPrice Analysis

– Consumer Markets, Emerging Markets, Competitor AnalysisConsumer Markets, Emerging Markets, Competitor Analysis MarketsMarkets

– Sector Studies, Repositioning, Trade Strategy, Generic Sector Studies, Repositioning, Trade Strategy, Generic Marketing of SA ProductsMarketing of SA Products

Supply ChainsSupply Chains– Transaction Costs, Benchmarking, Logistics, Cross Border Transaction Costs, Benchmarking, Logistics, Cross Border

Supply ChainsSupply Chains Policy Policy

– Levy, Transformation, Marketing Schemes, AgriBEELevy, Transformation, Marketing Schemes, AgriBEE Research Interns Research Interns

1919

ECONOMIC RESEARCHECONOMIC RESEARCH Undertake Section 7 Investigations on:Undertake Section 7 Investigations on:

– Input Cost MonitoringInput Cost Monitoring– GoatsGoats– Citrus Citrus

Food Price MonitoringFood Price Monitoring– Food Cost ReviewFood Cost Review– Quarterly Food Price TrendsQuarterly Food Price Trends

Forge closer links with the AEASA (Present Fresh Forge closer links with the AEASA (Present Fresh Produce Investigation Report at AEASA conference)Produce Investigation Report at AEASA conference)

Partnerships with international research orgs eg. IFPRIPartnerships with international research orgs eg. IFPRI

2020

ENTERPRISE DEVELOPMENT ENTERPRISE DEVELOPMENT

2121

KEY ACTIVITIESKEY ACTIVITIES Develop & implement models for Agribusiness Support Develop & implement models for Agribusiness Support Models:Models:

– Business Linkages as an empowerment modelBusiness Linkages as an empowerment model

– Cooperatives/ agribusiness as key points of leverageCooperatives/ agribusiness as key points of leverage

– Work with structures currently receiving levies (eg, citrus, Work with structures currently receiving levies (eg, citrus, livestock, dairy and potato) to address AgriBEE targets eg, livestock, dairy and potato) to address AgriBEE targets eg, procurement, ownership, training, etc procurement, ownership, training, etc

– Engage Fresh Produce Markets to develop strategy for Engage Fresh Produce Markets to develop strategy for increased black farmers/wholesaler/transporters/processors increased black farmers/wholesaler/transporters/processors participation participation

NB: Target CASP and MAFISA as a key incentiveNB: Target CASP and MAFISA as a key incentive

2222

DATABASEDATABASE

Supplier database with profiles of Commercial Black Supplier database with profiles of Commercial Black Agribusinesses Agribusinesses

Develop supplier relations with major buyers of Ag. Develop supplier relations with major buyers of Ag. Products in RSAProducts in RSA

Link agribusiness in supplier database to identified Link agribusiness in supplier database to identified buyersbuyers

Use ATAF to support Agribusinesses technical Use ATAF to support Agribusinesses technical requirementsrequirements

2323

AGRIBUSINESS TECHNICAL AGRIBUSINESS TECHNICAL ASSISTANCE FUNDASSISTANCE FUND

Create an Agribusiness Technical Assistance Fund to support Create an Agribusiness Technical Assistance Fund to support Agribusinesses in database - NAMC to contribute an amount Agribusinesses in database - NAMC to contribute an amount to start the Fundto start the Fund

– Trusts and Forums encouraged to contributeTrusts and Forums encouraged to contribute

– Fund ring-fenced for Black Agribusiness Technical Support onlyFund ring-fenced for Black Agribusiness Technical Support only

– A policy on the use of the fund will be developedA policy on the use of the fund will be developed

– The fund will be used on a cost sharing basis with agribusiness The fund will be used on a cost sharing basis with agribusiness contributing a certain amount contributing a certain amount

– Agribusiness will be encouraged to apply for specific technical Agribusiness will be encouraged to apply for specific technical assistanceassistance, , eg. Appointment of technical advisors on AgriBEE eg. Appointment of technical advisors on AgriBEE transactions, Business Plan, Certification such as EuroGap, etctransactions, Business Plan, Certification such as EuroGap, etc

2424

EXPORT EXPOSURE VISITSEXPORT EXPOSURE VISITS

Develop policies on export exposure visitsDevelop policies on export exposure visits

Identify agribusiness in Supplier Database Identify agribusiness in Supplier Database ready for export ready for export

Identify Exports & Training opportunitiesIdentify Exports & Training opportunities

Partner with other organizations to facilitate Partner with other organizations to facilitate visitsvisits

2525

STATUTORY MEASURS STATUTORY MEASURS

2626

KEY ACTIVITIESKEY ACTIVITIES

InvestigationsInvestigations Monitoring and reviewMonitoring and review Reports to Department of AgricultureReports to Department of Agriculture Registration of Directly Affected Registration of Directly Affected

GroupsGroups Crop Estimate Liaison Committee Crop Estimate Liaison Committee

oversightoversight

2727

PLANNED WORKSHOPS PLANNED WORKSHOPS

Planning four workshops Planning four workshops – Industry Specific Competitiveness meetingsIndustry Specific Competitiveness meetings– Trade strategy workshop in collaboration with Trade strategy workshop in collaboration with

DoA & OECDDoA & OECD– Marketing incentives for the emerging sector Marketing incentives for the emerging sector – Report of the Fresh Produce Investigation (at Report of the Fresh Produce Investigation (at

AEASA conference)AEASA conference)

Planning Breakfast Meetings Planning Breakfast Meetings – Launch of Quarterly Food Price TrendsLaunch of Quarterly Food Price Trends– Presentation of Annual Food Cost ReviewPresentation of Annual Food Cost Review

2828

BUDGET BUDGET Council and Council and AdministrationAdministration

Marketing & Marketing & TradeTrade

Enterprise Enterprise DevelopmentDevelopment

Statutory Statutory measuresmeasures

Economic Economic ResearchResearch

TotalTotal

SalariesSalaries R4,100,113.00R4,100,113.00 R830,000.00R830,000.00 R830,000.00R830,000.00 R830,000.00R830,000.00 R1,287,700R1,287,700 R7,877,813.00R7,877,813.00

AdministratioAdministrationn

R3,097,520.00R3,097,520.00 R575,600.00R575,600.00 R365,000.00R365,000.00 R231,000.00R231,000.00 R608,000.00R608,000.00 R4,877,120.00R4,877,120.00

Professional Professional ServicesServices

R1,140,000.00R1,140,000.00 R160,000.00R160,000.00 R855,000.00R855,000.00 R120,000.00R120,000.00 R3,860,000.00R3,860,000.00 R6,135,000.00R6,135,000.00

StoresStores R140,000.00R140,000.00 00 R10,000.00R10,000.00 R10,000.00R10,000.00 R15,000.00R15,000.00 R175,000.00R175,000.00

TotalTotal R9,115,673.00R9,115,673.00 R1,565,600.00R1,565,600.00 R2,060,000.00R2,060,000.00 R1,191,000.00R1,191,000.00 R5,770,700.00R5,770,700.00 R19,702,973.00R19,702,973.00

2929

THANK YOUTHANK YOU