presented by; mrs. n msimang (chairperson) mr. tr ramabulana (ceo) mrs. s muvhulawa (cfo) 2013/2014...
TRANSCRIPT
Presented By;Mrs. N Msimang (Chairperson)Mr. TR Ramabulana (CEO)Mrs. S Muvhulawa (CFO)
2013/2014 NAMC ANNUAL OPERATIONAL PLAN
Our Targets
HR Objectives• Organisation structure review • Organisational performance system adhered to by line managers PMDS
(number of times monitored) • Recruitment• Work place skills development budget utilised• Labour relations support requested versus provided• Wellness sessions conducted• Compliance to human resource regulatory frameworks• Employee satisfaction ratings conducted• Employee satisfaction improvement plan facilitated
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Statutory Measures
• The MAP Act provides for the following statutory measures:– Levies– Records and returns– Control of exports (currently not being used)– Registrations
• Register of Directly Affected Groups – section 20• Appointment of inspectors – section 21
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22 Industries Assisted Over R1.4 billion was collected by industries Levy Funds used for the following;
Support for efforts in markets development and penetration Export promotion research Provision of reliable information Transformation Targeting two provinces, employment projection to 400
In this financial year, we will help industries collect cover R400 million
Functions Financed Through Statutory Levies - Past Four Years
• Total statutory levy expenditure – R1.2 billion• Functions
– Export market development – R142 million– Local consumer education – R134 million– Research – R354 million– Information – R131 million– Transformation – R259 million
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Summary of statutory measures applicable in South Africa 2012
INDUSTRY Administrating body Statutory Measures
Levy Registration Records & Returns
Citrus (export only) Citrus Growers Association
Cotton Cotton SA
Dairy Milk SA
Deciduous fruit (pome & stone)
HORTGRO Services
Dried fruit Dried Fruit Technical Services
Fynbos (proteas) HORTGRO Services
Grains (Maize, Oilseeds, Sorghum, and Winter Cereals)
The South African Grains and Information Services (SAGIS)
Lucerne Lucerne Seed Organisation
Mangoes Subtrop
Milk Milk Producers’ Organisation
Mohair Mohair SA
Olives SA Olive
Pecan nuts SA Pecan Producers’ Association
Pork SA Pork Producers’ Organisation
Potatoes Potatoes SA
INDUSTRY Administrating body Statutory Measures
Levy Registration Records & Returns
Poultry and eggs Southern African Poultry Association
Red meat Red Meat Levy Admin
Sorghum Sorghum Trust
Table Grapes exported SA Table Grape Industry
Wine SAWIS, WIDA, Winetech and WOSA
Winter Cereals Winter Cereal Trust
Wool Cape Wools SA
Summary of statutory measures applicable in South Africa (cont...)
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Levies collected per commodity - 2012Product Total value at first
point of sale
R
Levy income
R
Levy income as % of the value of the product %
Levy collection rate
%
Citrus (exported) 5 000 000 000 43 724 911 0.87 99
Cotton lint 92 000 000 1 683 411 1.83 114
Dairy products 8 378 627 222 29 292 893 0.35 96
Deciduous fruit 1 476 879 891 49 709 574 3.37 96
Dried fruit 478 842 000 1 891 342 0.39 97
Mangoes 65 589 060 1 093 151 1.67 85
Pork 3 063 400 000 16 774 658 0.55 104
Potatoes 5 746 720 817 24 557 928 0.43 103
Poultry and eggs 3 596 000 000 26 797 820 0.75 99
Red meat 18 946 000 000 21 592 522 0.11 113
Sorghum 215 000 000 1 672 287 0.78 69
Table grapes 2 945 298 984 17 462 504 0.60 97
Wine 3 619 400 000 65 840 238 1.82 98
Winter cereal 3 733 929 000 39 587 939 1.06 87
TOTAL 57 357 686 974 341 681 178 0.60
Export promotion (market development) – expenditure in 2012
Commodity Amount
Citrus 2 823 336
Deciduous fruit 19 992 156
Table grapes 1 957 254
Wine 26 140 411
Total 50 913 157
Target markets
CitrusDeciduous fruitTable grapesWine
UK, EU, USA, Russia, Middle East and Far EastEU, Middle and Far EastEU, USA, Japan, China UK, Germany, Sweden, Russia but also in USA, Canada, key African countries such as Angola and Nigeria, as well as China and Japan
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Research – expenditure in 2012
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Commodity AmountCitrus 19 305 822
Cotton 50 000
Dairy 1 484 728
Deciduous fruit 17 707 986
Dried fruit 1 967 465
Mangoes 408 000
Pork 488 515
Potatoes 6 225 277
Poultry 911 306
Red meat 1 445 926
Sorghum 963 643
Table grapes 9 077 108
Wine 4 924 403
Winter cereals 26 851 129
TOTAL 91 811 308
Information – expenditure in 2012
Commodity Amount
Citrus 2 371 685
Cotton 3 137 680
Dairy 1 964 690
Deciduous fruit 2 979 830
Dried fruit 471 581
Pork 1 614 033
Potatoes 5 633 035
Poultry 2 839 750
Red meat 927 439
Sorghum 262 921
Table grapes 2 119 820
Wine 7 470 482
Winter cereals 2 427 213
TOTAL 34 220 159
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Vinegar SchemeOver the past 4 years, the scheme
180 ha of vine grapes plantedAdditional 300 ha to be planted over next 2 years
Maize & Sunflower SchemeOver the past 2 years, the scheme
Assisted 120 Farmers Planted over 9000 ha in North West Province
Livestock Scheme Over the past 4 years, the scheme
Assisted farmers so far to sell over 6640 animals in Eastern Cape generating over R42 million in incomeTrained over 2200 livestock farmers in marketing of livestockScheme further procured over 48 tons of animal feed from small businesses in the Eastern Cape for a value of R16 million.
Objectives of development schemes is to secure markets for small holder farmers.
R16 Million of roll over funds from the dairy industry statutory levies was Ring-fenced to support small diary farmers in the Free State Province Support being provided includes; supply of diary animals, diary equipment, market access Target is to reach 10 black owned diaries and ensure that they are in a position to compete
Past 2 Years Implemented the programme with ITCAssisted stone and fruit farmers in Ceres and Grabouw to comply with food safety requirements & increase linkages with exporters as well local supermarkets
2012 Agreement signed with Western Cape Agriculture in order to increase the project in the province Engagement with other provincial departments with a view of expansion
Objective is to integrate small agro-businesses into regional supply chains, increase market access and income earnings
Agricultural CollegesCollaborate with FET colleges and Agricultural colleges in rendering these services to the small holder producersTarget: 200 farmers to capacitate during this financial year & 4 training programmes facilitated
Management Training for Women Entrepreneurs Marketing & financial managerial training course for women entrepreneurs involved in agricultureMax of 40 women entrepreneurs from all the province will participate
Making Market Matters WorkshopIntensive multi-day business development training workshop for African agribusinesses,Max of 70 agribusinesses from the African continent will participate in this programmeFacilitates by Making Market Matter Inc from Cornell University.
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Strategic Integrated Projects 11• NAMC was tasked with the responsibility of coordinating SIP 11
(agriculture) on behalf of the DAFF.• DAFF initiated and managed Infrastructure Investment projects are clearly
captured and managed through the SIP process • Currently engaging with Private Sector identify and priority investment
projects that should be implemented in partnership with government• Criteria used for selection & prioritization of projects includes:
– Sector Growth & Job Creation– Food Security– Broad Based Black Economic Empowerment– Private Sector Investment
AgriBEE Threshold Study• The NAMC is assisting DAFF to conduct the AgriBEE Threshold
Study to review the appropriate threshold for the Exempted Micro Enterprises (EME) and Qualifying Small Enterprises (QSE) in the Sector.
• The report will assist the AgriBEE charter Council in deciding how the implement the AgriBEE Charter.
• Charter Council is due at the end of May 2013.
Section 7 Committee on contract farming The objectives: •Investigate the scope and nature of typical supplier contracts and remedial actions used to address instances where contracts are dishonored;•To determine whether a new approach is required to improve the relationship between contracting parties.
What are the issues •Some contracts do not state clearly how disputes are handled and in most cases big agri-business have prerogative to terminate the contract – unequal contracting power.•Weak organisational and government support in negotiating contracts .
Consultation process and project status •Various stakeholders including farmers, retailers and processors were consulted. •Currently two workshops have been arranged, one in the Western Cape (16th April 2013) and the other in Limpopo province (23rd April 2013)
Supply & Demand Estimates Committee• To provide official Supply and Demand Estimate figures on the
following grains: Yellow maize, White maize, Sorghum, Soybeans, Wheat.
• The information will assist the country by– Improving transparency and efficiency in the market
• The NAMC act as custodian for this committee and will release the figures on estimates which will include import, export consumption and production figures of the above grains.
• The committee consist of experts on the above field and need to be objective and have no conflict of interest.
• Expect the first official figures to be released in June 2013.
Agro Food Chain
• Agro food chain focus area analyses various chains in order to • We are investigating the following value chains in the current reporting period: •Wheat value chain,•Food system study (value chain studies) with emphasize on the poultry meat (Broilers & culls), poultry feed, soybeans & yellow maize. •Animal feeds
•AFC plays an prominent role in global Agri-benchmark initiative.– Member of the international grains, livestock and fruit agri-benchmark
networks– Roll-out local networks on grains and livestock (small and large
livestock)
Knowledge management• The NAMC is responsible for the following publication:
– Food Cost Review (Annual),– Food Price Monitors (4 x Quarterly),– Input Cost Monitors (4 x Quarterly),– TradeProbe (6 per annum), – Fruit Trade Flow Reports (4 per annum).
• The reports helps industry, government and general public:– Understand the impact o food inflation on different population groups in
both urban and rural areas– Understand the effect of fertilizers and other costs drivers on various chain – Highlight export market opportunities for South African products– Understand the flow of South African fruit and therefore identify
opportunities for increased market penetration
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MTEF Budget 2013/14 -2015/16
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The NAMC has received MTEF budget allocation letter for the period 2013/14 -2015/16 from DAFF. The budget allocations are as follows: 2013/14: R 33 819 000 2014/15: R 36 005 0002015/16: R 37 912 000
This resulted in the following percentage fluctuation for the period:
From 2012/13 – 2013/14: 5.3% increaseFrom 2013/14 – 2014/15: 6.5% increaseFrom 2014/15 – 2015/16: 5.3% increase.
Additional funding of R724,000.00 R972,000.00 and R1,267,000.00 for the MTEF period 2013/14- 2015/16, has been received for improvement in the conditions of service, this amount was allocated to the personnel budget.
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INCOME 2012/13 2013/14 2014/15 2015/16
R’000 R’000 R’000 R’000
Grant & transfers (MTEF) 31 409 33 819 36 005 37 912
Interest Earned 700 850 900 954
TOTAL INCOME
32 109 34 669 36 905 38 866
BUDGET: SUMMARY OF INCOME
Budget Allocation per Programme for MTEF period 2013/14 – 2015/16 and Previous year 2012/13
2012/13 2013/14 2014/15 2015/16 R’000 R’000 R’000 R’000
Division:
Finance & Administration
7 049 8 496 8 976 9 075Human Resources
3 130 3 343 3 543 3 751 Statutory Measures
1 877 2 027 2 148 2 275 Agribusiness Development
2 921 3 114 3 301 3 490 Agricultural Trusts
1 624 1 447 1 534 1 625 National Red Meat Development Project 1 695 724 972 1 267MERC
9 231 9 941 10 538 11 153Office of the CEO
3 298 3 366 3 550 3 757 Council & Audit & Risk Committee 1 284 1 361 1 443 1 519Total 32 109 33 819 36 005 37 912
2012/13 BUDGET vs 2013/14 PER STANDARD ITEMS
Expenditure categories
MTEF Budget 2012/13R’000
MTEF budget 2013/14R’000
Increase/(Decrease)
R’000
% Change COMMENTS
Personnel 19 436
20 721
1 285 7%
Administration 6 835 7 680 845 12%
Professional services
5 516 5 076 -440 -8%
Assets 322 341 19 6%
Total 32 109 33 819 1 709 5%
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