namc strategy and budget

National Agricultural Marketing Council

NAMC STRATEGY and BUDGET

By

TR RamabulanaCEO: NAMC


STRUCTURE OF PRESENTATION

• Introduction

• Framework of the Strategy

– Strategic Overview

– Key Result Areas

– Planned Expenditure per programme

• Overall 2008/09 Budget


Farmer & Agribusiness NeedsSupply-SideSupply-Side Demand-Side Business Environment

– Inadequate access to market information

– Limited water– Scarcity of arable land– Soil degradation– Climate change– Rising input costs

– Lack of shared vision across role players

– Limited innovation in risk management

– Negative impact on competitiveness

– Cost of compliance to SPS & TBT standards

– High cost of compliance to labour legislation

– Poor infrastructure – Inadequate basic services– Limited access to capital– Limited skills – Slow Pace of Land Reform

– Limited supporting institutions

– Limited settlement support

All farmers

1st economy farmers

2nd economy farming

challenges

– Limited access to financial services

– Inadequate focus on new markets

– Limited product innovation

– Limited access to markets

– Limited access to local markets


INTRODUCTION• This strategic plan positions the NAMC as an organization that aims to assist the DoA

achieve its objectives as highlighted in the:– LARP & DoA strategic plan– Sector plan

• Objectives of the NAMC as highlighted in the MAP Act:– Increasing market access for all market participants– Promotion of the efficiency of the marketing of agricultural products– Optimisation of export earnings from agricultural products– Enhancement of the viability of the agricultural sector

• Mission of the NAMC:– Provide accurate and well-informed policy advice on marketing of agro-food products to the

Minister, DoA and Directly Affected Groups– Support developing farmers in terms of market access, knowledge acquisition and training– Leverage centers of excellence and own resources to enhance equity, competitiveness, profitability

and sustainability of the sector– Contribute to the agric sector growth objectives by supplying useful information and policy

positions using globally tested and proven analysis tools– Focus efforts on the strategic positioning of the sector in dynamic global markets


OVERALLL OBJECTIVES

– Acceleration economic growth and social inclusion;

– Addressing structural challenges of the organization and capacity constraints;

– Stabilization of food prices;

– Reaching out to the youth and women; and

– Improving the country’s skills base.


FUNCTIONS OF THE COUNCIL• Investigate the establishment, continuation, amendment or

revocation of statutory measures and other regulatory measures

• Prepare and submit to Minister for consideration, statutory measures

• Undertake investigations and advise the Minister regarding:– Agricultural marketing policy and the application thereof;– The coordination of agricultural marketing policy in relation to

national economic, social and development policies, and international trends and development;

– The effect that marketing of products has on the objectives of the Act.

• Monitor the application of statutory measures and report thereon to the Minister at least every two years.


NEW COUNCIL MEMBERS

• Mrs. Ntombi Msimang (Chairperson)

• Dr. ASM Karaan (Vice-Chairperson)

• Prof. HD Van Schalkwyk

• Mr. AD Young

• Prof. JF Kirsten

• Mrs. SE Moolman

• Mrs. C Molo

• Mr. DB Montshwe

• Mrs. M Mannya

• Mrs. M Gill


CORPORATE GOVERNANCE COMMITTEE

• Audit committee– Mr. Victor Nondabula (Chairperson)– Prof. HD Van Schalkwyk– Ms. M Moja– Mrs. M Gill– Mr. R Matlou

• Human Resources Committee– Mr. AD Young (Chairperson)– Mrs. SE Moolman– Mrs. M Mannya– Mr. TR Ramabulana


COUNCIL & COMMITTEES’ SCHEDULE OF MEETINGS

COUNCIL AUDIT COMMITTEE

HR COMMITTEE CHAIRPERSON COMMITTEE

1 21 April 26 May 21 April 5 June

2 4 August 24 July 4 August 20 October

3 8 December 27 November 8 December

4 16 February 9 February 16 February


INFORMATION DEVELOPMENT


MAPPING, UNDERSTANDING AND QUANTIFYING VALUE CHAINS (INCLUDING SECTION 7 COMMITTEES)

• FOCUS– To map, describe and quantify the value chain for each sub-sector in

terms of, among others, the following factors:• Structure & Performance• Export orientation• Market situation• Macro-economic issues• SWOT analysis

• MEASURABLE OBJECTIVE – To produce a series of value chain reports and in addition, when

required, to produce Section 7 investigation reports.

• PERFORMANCE INDICATOR– Annual production and distribution of at least one agro-food chain

report and, in addition, production of Section 7 reports according to demand.


TRADE ANALYSIS

• FOCUS– To produce research under the following broad trade areas:

• Agricultural tariffs• Tariff rate quotas• Non-tariff barriers• Inter- and intra-trade flows

• MEASURABLE OBJECTIVE – To produce a series of trade policy-relevant research reports on current trade

issues and challenges

• PERFORMANCE INDICATOR– Produce and distribute 11 newsletters on trade related issues – Produce and distribute 5 trade profiles (commodity and product specific)


LINKING FARMERS TO MARKETS

• FOCUS– Produce case studies on black farmers who have been successfully

integrated into the mainstream economy and to draw from such studies lessons that can be practically implemented elsewhere.

• MEASURABLE OBJECTIVE• To produce research on best practices of linking black farmers to

markets and to facilitate the integration of black producers into the mainstream of commercial agriculture.

• PERFORMANCE INDICATOR– Regular production and distribution of research reports, articles and

working papers on linking emerging farmers to markets (2 annually).


RISK MANAGEMENT

• FOCUS– To produce research that applies tools for market risk management in

agro-food chains– To produce research that quantifies agric market risk and provide

guidance on management

• MEASURABLE OBJECTIVE – To produce a series of research reports on agric market risk

management

• PERFORMANCE INDICATOR– Produce 3 research papers on market agric risk management that can

be applied in the planning and implementation of projects by the DoA and DAGs


INFORMATION MANAGEMENT SYSTEMS

• FOCUS– To produce reports that cover trends and other developments regarding food

prices, input costs and other variables across sub-sectors and along the agricultural agro-food chains and, among other things, provide policy input.

• MEASURABLE OBJECTIVE – To produce a series of reports containing marketing data and information for

all stakeholders in the agricultural sector and to develop/maintain sufficient database capacity to provide easy access to relevant marketing information.

• PERFORMANCE INDICATOR– Produce and distribute four quarterly Food Price Trends reports;– Produce and distribute one annual Food Cost Review report; – Produce and distribute four Input Cost Trends report.


OUT-REACH, IN-REACH AND CONFERENCES

• FOCUS– To send staff to training programmes locally and internationally.– To promote collaboration between experienced researchers within partner

academic institutions and the NAMC.

• MEASURABLE OBJECTIVE – To award bursaries to deserving staff members or targeted future employees on

research pertaining to the marketing and trade of agricultural products.

• PERFORMANCE INDICATOR– Regular collaborations between staff and other researchers in academia

through collaborative research programmes (establish at least three such programmes).

– Regular attendance at local and international training programmes by staff (at least two staff should attend training programmes relevant to marketing and trade).

– Award at least three bursaries per annum.– Regular interactive seminars within NAMC (at least two seminars per month).


STATUTORY MEASURES


WHAT WE EXPECT FROM INDUSTRY PARTNERS

• Fairness to all producer segments• Responsiveness to industry challenges• Focus on long term strategic planning• Good financial management• Education sessions for all trustees on roles and responsibilities• Clear communication strategy with grassroots• Succession planning (empowerment)


STATUTORY MEASURE INVESTIGATIONS

• Focus– Investigate and recommend for approval any of the five statutory

measures, namely statutory levies, records and returns, registration, control of exports of agricultural products and conducting of pools as provided for in the MAP Act.

• Strategic goal– To provide the Minister with recommendations regarding the approval

or disapproval of a statutory measure.

– To promulgate statutory measures in the relevant agricultural sectors in order to improve their operations.

• Strategic Outcome– Undertake 9 statutory measures investigations.


AGRICULTURAL TRUSTS• Focus area:

– The NAMC facilitates the appointment of Ministerial Trustees in agricultural trusts. Agricultural trusts were entrusted with safeguarding and utilizing former control boards assets to the benefit of the whole industry.

• Strategic goal:– To facilitate the process to appoint ministerial trustees. – To influence trusts to bring transformation to the heart of their activities.

• Strategic outcomes:– We expect:

• Bursary schemes to support black students• Funding for schemes aimed at increasing market access• Export promotion schemes for black producers• Mentorship projects• Schemes aimed at reducing the transaction cost of doing business with

black farmers


MAIZE BOARD SCHEME

• Focus area:– The NAMC was tasked with the responsibility of advising

the Minister of Agriculture on the closure of all control boards and transfer assets to trusts.

– The only remaining scheme is the Maize Board Scheme.

• Strategic goal:– To finalize all outstanding Maize Board cases before 31

July 2008.

• Strategic outcomes:– To prevent a further extension of the Maize Marketing

Scheme.


CROP ESTIMATES LIAISON COMMITTEE• Focus

– The NAMC was mandated to establish a Crop Estimates Liaison Committee (CELC) to formally monitor the crop estimation process in South Africa. The CELC has the following focus areas:

• Establishment of a completely independent and objective committee free of commercial bias;

• Delivery of accurate, timely and credible crop estimate;• Monitoring the performance of the CELC.

• Strategic goal:– Provide leadership required to improve the acceptance of crop

estimates within industry in general.

• Strategic outcomes:– Hold three (3) CELC meetings per annum - May, October and

November.


AGRIBUSINESS DEVELOPMENT


DEVELOPMENT SCHEMES

• Strategic goal:– To increase market access for the emerging producers.

• Focus:– Capitalise and facilitate implementation of development

schemes that will integrate emerging producers into the commercial mainstream.

• Strategic outcome:– Oversee the rollout of the Grain Development Scheme and

the General Development Scheme.


FARMER BUSINESS SUPPORT MODELS

• Strategic goal:– To design and implement demand led projects in collaboration with

DoA that will link black producers in the fruit industry to retailers.

• Focus:– To link black agribusinesses to market either as an individual

agribusiness or as a project involving more than one agribusiness.

• Strategic outcome:– Identify, design and implement four such projects.


PROMOTIONS

• Focus:– To expose black owned agribusinesses to international markets and

procurement requirements of those markets by • supporting the agribusinesses to attend international and local trade shows

in collaboration with industries and other agencies.

• Strategic goal:– To identify export-ready agribusinesses and support them with

exporting their produce.

• Strategic outcome:– Support fifteen agribusinesses to attend international trade shows;– Support fifteen agribusinesses to attend local shows and interact with

buyers.


RE-ALIGNMENT OF LEVY ADMINISTRATORS

• Focus:– To assist Levy Administrators in developing and implementing best

practices on transformation.

• Strategic goal:– To assist levy collecting industries in integrating NAMC

transformation guidelines into their daily operations.

• Strategic outcome:– One (1) report on the status of statutory levies collected in terms of the

MAP Act.


TRAINING

• Strategic goal:– To capacitate black agribusiness through marketing and

management training courses.• Focus:

– Host training courses in collaboration with universities and industries that will improve the technical and managerial skills of agribusinesses.

• Strategic outcome:– Three Courses for the next financial year

• Making Markets Matter Course - 50 agribusiness• Agribiz Matter Course - 30 women owned agribusiness• Market Access for Exporters - 5 agribusiness


CORPORATE SERVICES


FINANCE• Focus:

– To provide effective, efficient financial and accounting management systems and services for the NAMC. The division provides the Council with corporate governance structures, namely:

• Council• Audit and Risk Committee• HR and Remunerations Committee

• Strategic goal:– To implement effective, efficient and transparent financial management and

internal control systems in compliance with the PFM Act, 1999, and Treasury Regulations.

• Strategic outcomes:– Produce monthly and annual audited financial statements.– Provide support to the Council & HR, at least four times a year.– Provide support to the Audit Committee, which meets six times a year.


BUDGETPROGRAMMES

INCOME 2008/09 2009/101 2010/11

Grant & transfers (MTEF) 22,459,000 23,722,000 25,056,000

Interest Earned 300,000 315,000 330,000

TOTAL INCOME 22,759,000 24,037,000 25,386,000

EXPENDITURE 2008/09 2009/10 2010/11

Compensation of Employees 10,847,000 11,624,000 12,412,000

Goods and Services-Standard Items 4,593,001 4,785,000 4,996,001

Operational Expenditure 7,319,000 7,628,000 7,929,000

Assets 285,000 285,000 270,000

TOTAL EXPENDITURE 22,759,000 24,037,000 25,386,000


HUMAN RESOURCES MANAGEMENT• Focus:

– Focus on corporate staffing, learning, renewal, succession/talent management, incentives and monitoring and evaluating compliance with the Equity Employment Plan for the NAMC.

• Strategic goal:– To achieve effective human resource management and development within the

NAMC.

• Strategic outcomes:– Have three performance assessments for each staff member per annum.– Arrange one corporate governance course for all ten Council members.– Hold one training session with all staff members on staff evaluation and the

differentiation policy (NAMC performance incentive policy).– Arrange for ten staff members to participate in formal and informal training

courses each year.


COMMUNICATIONS• Focus:

– To implement a communication strategy that will include advertorials in different agricultural magazines and newspapers as well as slots on radio stations, especially community stations.

• Strategic goal:– To ensure proper communication of the NAMC programmes and activities to

all directly affected groups.

• Strategic outcomes:– Release quarterly four price trends– Three media briefings to communicate NAMC programmes– Manage the dissemination of NAMC corporate information to functions such

as AEASA, and other NAMC marketing training courses.


THANK YOU

namc strategy and budget

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