ANNUAL REPORT 2009/10 PRESENTATION – PRODUCTION AND ANNUAL REPORT 2009/10 PRESENTATION – PRODUCTION AND

RESOURCES MANAGEMENTRESOURCES MANAGEMENT ANNUAL REPORT 2009/10 PRESENTATION – PRODUCTION AND ANNUAL REPORT 2009/10 PRESENTATION – PRODUCTION AND

RESOURCES MANAGEMENTRESOURCES MANAGEMENT

THE SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS 08 FEBRUARY 2011

PROGRAMME 2

Background

Purpose

To promote agricultural productivity and profitability through the identification of opportunities, sustainable use and protection of land, water and genetic resources and infrastructure development to ensure household food security.

• The programme comprises of two subprogrammes:

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PRODUCTIONAND RESOURCE MANAGEMENT

Agricultural production: Focuses on ensuring national food security and creating an enabling environment for increased and sustainable

agricultural production through appropriate policies, legislation, norms and standards, technical guidelines and other programmes and services.

Engineering and Resources Management: Facilitates the development of agricultural infrastructure and the use of

agricultural resources. Other activities include auditing natural resources, controlling migratory pests, rehabilitating and protecting agricultural land and running the community-based LandCare programme.

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EXPENDITURE TRENDS

Total expenditure increased an annual average rate of 13.7 per cent from 2006/07 to 2009/10 mainly as a result of ;a once-off allocation of R221 million for the

Ilima/Letsema projects to improve agricultural production

R76 million for starter packs in the 2008/09 financial year.

Over the medium term additional allocations of R200 million, R400 million and R420 million are made to further strengthen the Ilima/Letsema production initiative giving rise to an annual average growth rate of 29.4 cent. 4

ACHIEVEMENTS

Tilapia – catfish cage culture project. During this financial year, Tilapia were grown in a cage system in the Jozini dam in Kwa Zulu Natal.

Animal breeding support program – Training on a limited number of cattle to emergent beef cattle producers through the National Emergent red Meat Producers Organisation (NERPO) was done

In addition, there was an increase of 80 participants on the Kanofatso ya di Kgomo program run by the ARC on behalf of DAFF.

Promotion of appropriate production technologies – The Directorate revised and published production guidelines for pigs, broiler and egg production and beef cattle.

The first fish production manual was finalized in collaboration with the Water Research Commission and Rhodes University and a beef cattle owner’s manual that includes a comprehensive veld management guide was finalized in collaboration with NERPO

The development of aquaculture training manuals has been completed and 20 extension officers were trained in milk goat production.

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ACHIEVEMENTS

Norms and standards for Subdivision of Agricultural Land were approved.

61 Unique Agricultural zones for Gauteng Province and 64 unique Agricultural zones for Limpopo province were identified for development of norm and standards .

14 042 beneficiaries on 748 compliant farms adopted sustainable technologies on Landcare projects and land reform farms.

A total of 264 602 ha of land were under sustainable natural resource Management practices

A total of  129 boreholes  were drilled across the country of which  95 had adequate water whilst 34 were dry

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ACHIEVEMENTS

Fencing for animal health disease control totaling  91 km was constructed

Authorisations to import 608808 cattle, 509519 sheep and 567122 goats for feedlot and slaughter purposes were issued.

Authorisations to import 868283 poultry 1462596 doses of semen, 549 embryos and 4849 animals were also issued during the year.

473 donor animals and 15 reproduction centres were registered during the year.

 

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ACHIEVEMENTS

Fruit production support scheme was piloted in the Vhembe district

of Limpopo. About 50 farmers participated and

were assisted to establish close to 200 ha of fruit orchards. The farmers were provided with close to 52 000 seedlings comprising of mangoes, avocadoes, macadamia and bananas. Close to 100 jobs were created.

40 beef and 40 goats’ farmers have been supported as new entrants in animal improvement schemes. Surveys were undertaken in Gauteng and Northwest Provinces to assess the status of the farm animal genetic resources (FAnGR) amongst emerging and subsistence farmers. Over 2 000 export certificates were issued to seed companies that that exported to various countries across the world. The bulk of these exports were destined for Africa.

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HIGHLIGHTS

Community based seed production schemes. Seed schemes on maize, sorghum and dry beans were implemented in Limpopo and Mpumalanga. Close to 250 farmers were involved. Schemes implemented in

collaboration with ARC, SANSOR and PDA’s. These seeds are exported to Zimbabwe, Mozambique and Botswana.

A programme to improve seed security of the community. Partnership with Sterkspruit (Eastern Cape) community to develop a programme to improve seed security of the community.

In KwaZulu-Natal (50 participants) and Limpopo (30 participants) community members have been trained on management of their indigenous seeds.

Four (4) Food Banks were launched to date (Cape Town, Johannesburg, Durban and Port Elizabeth). The current operations of the Food Banks is providing meals to 84 800 individuals per day..

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Challenges and response to challenges

Challange Corrective measure

A shortage of engineers because of the high demand on other sectors is hampering service delivery of planned interventions

More engineers have to be recruited on competitive terms

Food Security interventions are multisectoral and the complexity of this makes it a challenge to finalise plans timeously

The complex nature of the work needs to be accommodated during the planning process

Service level agreement are now being considered

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Challenges and response to challenges

Challange Corrective measure

Most of the interventions are collaborative efforts with sector partners and all times, because of unforeseen circumstances MoUs are not signed . This affects the delivery of planned outputs at targeted periods

It will help to have an agreed project plan with allocated resources which has been agreed upon with the relevant partners before the initiation of any collaborated intervention.

Loss of key personnel such as the Gene Bank Curator and delays in filling of positions may affect delivery

Improve turnaround times for filling of positions

Limited funding and access to funds for research projects

Collaborations have to be strengthened with research institutions to improve economic allocation of resources

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Challenges and response to challenges

Challange Corrective measure

A shortage of animal scientists, Veterinarians and technologists, pasture scientists and technologists, animal nutritionists and aqua culturists.

Bursaries linked to service contracts

Appoint specialists at competitive salaries – the OSD should help as far as Provinces are concerned.

Insufficient financial support for key livestock production interventions to improve fertility and production efficiency

Look at partnerships with other State Departments

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THANK YOU

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ANNUAL REPORT 2009/10PRESENTATION- AGRICULTURAL SUPPORT SERVICES

THE SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS

08 FEBRUARY 2011

PROGRAMME 3

Purpose

Develop and facilitate the implementation of appropriate policies and targeted programmes aimed at promoting equitable access to the agricultural sector to promote shared growth and the commercial viability of emerging farmers.

The programme comprises of two subprogrammes:

Livelihoods Development Support: Facilitate the provision of past settlement support for emerging farmers, promotes black economic empowerment (BEE), provides for agricultural development finance, promotes cooperative and manages agricultural risk and natural disasters.

Sector Services and Research: Directs and supports agricultural Education and Training, research, extension and advisory services in support of targeted groups and also manages the transfer of funds to the ARC.

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EXPENDITURE TRENDS

Within the CASP allocation of R715 million, R170 million was allocated for the implementation of an extension recovery plan (ERP).

A total amount of R153 million was spent during 2009/10 financial year which is 90% of the allocated budget for the ERP.

HIGHLIGHTS (ACHIEVEMENTS)

The plan was to capacitate 10 000 beneficiaries in the sector. By the end of the financial year:

A total of 2566 beneficiaries were trained through commodity based mentorship in partnership with the Wool Growers Association, Citrus Growers Association, Milk Producers Organization, National Emergent Red Meat Producers Organization and other Commodity Organization throughout the country.

Through the use of extension Recovery Plan funds 2346 extension personnel were trained both in accredited soft and technical skills programmes and 646 were registered for qualification upgrading

A total of 54 extension officers and 1123 farmers were capacitated on the use of the cooperative tool kit and cooperative guidelines

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A further 544 farmers received training in the area of sheep and goat farming at Grootfontein Development Institute (GADI).

A total of 217 extension officers were recruited against a target of 250. The shortfall was due to KZN delays in finalizing the appointments

A total of 1405 clients received financial services through MAFISA. These clients were reached through the use of financial intermediaries.

A total of 1190 direct permanent job opportunities were created for cooperative administrators.

A total of 7495,7 hectares of state land was disposed of during the period under review

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MAJOR CHALLENGES & PROPOSED INTERVENTIONS

Challenges Corrective measures

Delays in the signing of lease agreements on state land.

A request to delegate the signing powers for leasing state land from the Minister of Public Works to the Minister of Agriculture, Forestry and Fisheries was made

Lack of funds to implement the National Research and Development Strategy.

Treasury have commissioned a study looking at the comprehensive funding of Research with special focus on the ARC.

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DEPARTMENT of AGRICULTURE, DEPARTMENT of AGRICULTURE, FORESTRY and FISHERIESFORESTRY and FISHERIES

DEPARTMENT of AGRICULTURE, DEPARTMENT of AGRICULTURE, FORESTRY and FISHERIESFORESTRY and FISHERIES

ANNUAL REPORT 2009/10

SPENDING TRENDS PROGRAMMES 2 AND 3

ANNUAL REPORT 2009/10

SPENDING TRENDS PROGRAMMES 2 AND 3

PER SCOA BUDGET EXPENDITURE % R’000 R’000 SPENT

Compensation of employees 89 187 89 124 99,9 Goods and services 68 192 68 115 99,9 Financial transactions in assets and liabilities 136 133 97,8 Transfer and subsidies 111 752 110 271 98,7 Capital assets 36 040 35 666 99,1 TOTAL 305 307 303 309 99,3

Of which transfer payments:

Illima/Letsema 50 000 50 000 100,0

LandCare 51 417 50 100 97,4

Food Bank SA 8 000 8 000 100,0

PROGRAMME 2:PRODUCTION AND RESOURCES MANAGEMENT

Challenges and achievements

Budget was reprioritised to provide funds for Food Bank South Africa – R8,0 million An additional R25,0 million was allocated in the Adjustments Appropriation Act for an

outbreak of locusts and quela.

PROGRAMME 2:

PRODUCTION AND RESOURCES MANAGEMENT

PROGRAMME 3:AGRICULTURAL SUPPORT SERVICES

PER SCOA BUDGET EXPENDITURE % R’000 R’000 SPENT

Compensation of employees 82 399 82 228 99,8Goods and services 73 522 73 077 99,4Financial transactions in assets and liabilities 78 75 96,2

Transfer and subsidies 1 842 903 1 839 898 99,8Capital assets 2 519 2 473 98,3 TOTAL 2 001 421 1 997 751 99,8

Of which transfer payments:

CASP 715 394 692 669 96,8

Agric disasters 156 900 156 900 100,0

ARC 537 153 537 153 100,0

Land Bank 415 600 415 600 100,0

Challenges and achievements

An additional R50,0 million was allocated to manage the floods in the Western Cape An additional R46,9 million was allocated for drought in the Western Cape and Eastern Cape Departmental revenue of R221,0 million from repayments from farmers for agricultural loans

awarded before 1994 was provided in the Adjustments Appropriation Act to augment the Micro Agricultural Financial Institutions of South Africa Scheme (MAFISA)

Underspending by provinces in respect of the Comprehensive Agricultural Support Programme (CASP)

PROGRAMME 3:AGRICULTURAL SUPPORT SERVICES

DORA ACTUAL AMOUNT % TRANSFER SPENT SPENT R’000 R’000 R’000

Eastern Cape 120 364 120 364 111 310 92,5

Free State 65 659 65 659 58 822 89,6

Gauteng 33 844 33 844 33 844 100,0

KwaZulu-Natal 117 762 117 762 117 762 100,0

Limpopo 108 483 108 483 108 483 100,0

Mpumalanga 70 892 70 892 70 892 100,0

Northern Cape 49 232 49 232 49 232 100,0

North West 91 518 91 518 84 684 92,5

Western Cape 57 640 57 640 57 640 100,0

TOTAL 715 394 715 394 692 669 96,8

Comprehensive Agriculture Support Programme (CASP)

THANK YOU

AGRICULTURE, FORESTRY AND FISHERIES NEW FUNDING MODEL

PRESENTATION TO SELECT COMMITTEE08 FEBRUARY 2011

PRESENTATION OUTLINE

1. CASP Allocation and Expenditure

2. Ilima/Letsema Allocation and Expenditure

3. Challenges

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CASP ALLOCATION AND EXPENDITURE PER PROVINCE

Table 1: CASP expenditure as at end of 31 December 2010 (quarter 3)

Province Allocation ‘R 000

Total transferred ‘R 000

Total spent ‘ R 000

% spent

EC 160 004 144 000 68 821 47

FS 75 772 68 194 29 416 43

GP 42 187 37 967 20 811 55

KZN 135 804 122 222 91 974 75

LP 144 567 130 109 83 278 64

MP 81 947 73 751 41 846 57

NC 58 275 52 447 27 839 53

NW 100 745 90 669 32 746 36

WC 63 064 56 756 49 819 88

Total 862 365 776 115 446 559 58

ILIMA-LETSEMA ALLOCATION AND EXPENDITURE PER PROVINCE

Table 2:Ilima-letsema expenditure as at 31 December 2010 (quarter3)

Province Allocation Total transferred ‘R 000

Total spent ‘ R 000

% spent

‘R 000

EC 20 000 15 000 5 276 35

FS 26 000 19 500 12 710 65

GP 10 000 7 500 1 475 20

KZN 30 000 22 500 3 942 18

LP 20 000 15 000 15 448 102

MP 20 000 15 000 16 121 107

NC 30 000 22 500 22 053 98

NW 20 000 15 000 19 013 126

WC 24 000 21 600 21 260 98

Total 200 000 153 600 117 298 76

CHALLENGES TO BE OVERCOME

Poor planning resulting in delayed implementation Changes in projects originally agreed to. Supply Chain Management (systematic and cumulative delays in processes and

procurement practices). Inadequate capacity of HDI contractors, leading to poor performance of

contractors. Changes in financial system (North West changed from Walk-in-system to Basic

Accounting System (BAS)). Capacity challenges (insufficient with particular emphasis to engineers). Seasonal nature of Agriculture delaying spending on certain planned crops. In-fighting of beneficiaries on already agreed projects delays implementation. Non-response on advertised tenders (Northern Cape), and slow issuing of

invoices by service providers.

CASP AND ILIMA-LETSEMA FUNDS WITHHELD FOR QUARTER FOUR (4)

CASP Funds for quarter 4 are withheld for a period longer than 30days but not exceeding 120 days from: Eastern Cape Free State North West

Ilima-Letsema Funds for quarter 4 are withheld for a period longer than 30days but not exceeding 120 days from: Eastern Cape Gauteng Kwazulu Natal

END OF REPORT

THANK YOU