Agriculture Research CouncilAnnual Report

April 2011 to March 2012

Presentation to Parliament

9 October 2012

ARC TEAM Council (Board) Mr. Jonathan Godden – Chairperson Prof. Sibusiso Vil-Nkomo – Deputy Chairperson Ms. Bubi Aphane Mr. Hamish McBain Mr. Mzolisi Dyasi

Management Dr. S. R. Moephuli: CEO Ms. Anati Canca – Technology Transfer Ms. Makgomo Umlaw – HR Dr. Mohammed Jeenah – R & D Mr. Frans Monkwe – Chief Information Officer Mr. Gabriel Maluleke

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OBJECTIVES OF THE ARC AS PER ACT

To CONDUCT RESEARCH, DEVELOPMENT & TECHNOLOGY TRANSFER IN ORDER TO:Promote agriculture & industry;Contribute to better quality of life;Facilitate/ensure natural resource

conservation

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Policy Mandate Considerations

Government’s National Priority• Medium Term Strategic Framework• New Growth Path

– Industrial Policy Action Plan

• DAFF Strategic Plan for Agriculture– Strategy for Small Holders– Zero Hunger Campaign

• Comprehensive Rural Development Programme• Ten Year Plan for Science and Technology

African Agenda (NEPAD)• Consolidated Science and Technology Plan of Action• Comprehensive African Agricultural Development Plan

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Institutional Reviews (2006)

• Management process to identify necessary changes in operations and to implement them;

• Consistency & interconnectedness of KPI with actual results achieved

• Poor record of disseminating results of own research• Need to establish formal partnerships with HEIs • Review effectiveness in planning and implement

continuous improvement in strategic thinking• Ensure alignment of design, structure and coordination

of internal business units• Conduct customer satisfaction reviews (e.g. CSIR &

MINTEK models)

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Institutional Review -- continued

Transformation: • HR, • Culture,• Research agenda

Capacity development strategy Career paths for junior & middle ranking staff Rewards & incentives to encourage innovation,

knowledge & technology generation External communication strategy integral to

annual strategic plans & KPIs

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COUNCIL STRATEGIC REVIEW Growth in agriculture – increased productivity Food Security (Zero Hunger Campaign) Bio – security Job Creation Optimal Technology Platform/s Support Government’s Development Agenda SADC integration i.t.o. markets & resources Bio – economy (water, climate, carbon footprint, energy,

sustainable & healthy production methods etc) Agrarian Reform Agenda Small – Holder Farmers R & D Across Value Chain

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POTENTIAL IMPACTS ON ARC STRATEGY

CLIMATE CHANGE Emergence and management of new pests & diseases Utilization of water resources & ability to replenish Energy sources and utilization Biodiversity conservation – preservation of genetic resources

POPULATION NEEDS Increased demand for food -- FOOD SECURITY Reducing post – harvest losses Food distribution systems

URBANIZATION Protein demands Changes in land use and impact on agricultural production & productivity

SCIENCE AND TECHNOLOGY DEVELOPMENTS SUCCESSFUL AGRARIAN TRANSFORMATION ECONOMIC COSTS OF BUSINESS REGULATORY SYSTEMS

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PROPOSED STRATEGIC OBJECTIVES

1.1. To ensure sustainable use & mgt of natural resourcesTo ensure sustainable use & mgt of natural resources2.2. To enhance nutrition & food securityTo enhance nutrition & food security3.3. To improve ability of the sector to manage & mitigate To improve ability of the sector to manage & mitigate

agricultural risksagricultural risks4.4. To improve efficiency and competitiveness of the sector To improve efficiency and competitiveness of the sector 5.5. To ensure support for a transformed agrarian landscapeTo ensure support for a transformed agrarian landscape6.6. To improve operational & organizational efficiency & To improve operational & organizational efficiency &

effectivenesseffectiveness

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ARC ALIGNMENT TO DAFF STRATEGIC GOALS

ARC OBJECTIVES Sustainable use of natural resources Enhance nutrition, food security & safety

Enhance ability of sector to manage & mitigate risksTechnology Transfer

Organisational growth & sustainability

DAFF GOALS Sustainable use of natural resourcesIncrease profitable production of food, fibre & timber productsIncreased contribution …National regulatory & risk management systems A transformed & united sectorEffective Governance

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INDICATORS FOR ARC

SCIENCE COUNCILInnovation in scienceBasic/fundamental researchApplied research (technologies)Intellectual assetsSkilled scientists & engineersScientific publications - qualityScientist ratingsNumber of PhDsNumber of doctoral fellowsNumber of postdoc fellowsScientific awards

AGRIC. DEVELOPMENToEconomic link to InnovationoApplied researchoTechnology Transfer/disseminationoIntellectual Asset UseoAgricultural Production oAgricultural Productivity – efficiency oFood Security – hunger oEnvironmental SustainabilityoImport SubstitutionoExport PromotionoAgrarian TransformationoNew products (vaccines, cultivars etc)

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Enhancing the Competitiveness of Our Fruits

Access to ARC technologies & information to all farmers, especially resource poor

Early Blush Pears- CheekyTM

– Estimate to cover 37% of blush peers in 2012– Potential to add R354m/yr to economy– Secure 3611 farm jobs

Nectarine – ColorburstTM – has potential for R16 million profit per year, – increase of 120 jobs on the farms

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Sector Skills Development – Training

Training of 900 para professionals in agricultural production a highlight

Funded through a grant from the DRDLR

Platforms used to disseminate agricultural information saw a pleasing performance above target: 2037 events against a target of 1556

Technologies transferred under license almost doubled the target, from 12 to 23

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Technology Transfer and Training

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Agriculture Impact Analyses and Support

Several economic feasibility studies, includingMoringa, sisal production

Lachenalia project impact assessment finalisedCreates employment for 40 people, albeit seasonalCapacity to produce in excess of 3 million bulbs per

year

Models for technology transfer Economic Analysis -- Collaboration with UP

leveraged for capacity building in ARC and sector at post graduate level in agricultural economics

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Managing Intellectual Assets for Development

IP protection measures increasedCompletion of a photo libraryPreservation of the images owned by the ARC

will allow better copyright managementUse will be given free of charge to users with an

educational intention

Knowledge and Library ManagementKnowledge audit initiatedOutcomes of the 2010 user satisfaction survey

implemented through the ARCLIS Increased access to e-resources prioritised

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R & D Solutions for Livestock Development

Poor quality bulls among Small Holder Farmers Calving rate of 40% vs 65-85% in Commercial farms

Embryo transfer allows for introduction of superior genes from high class bulls

Demonstrated embryo transfer on communal land in Limpopo, KwaZulu Natal and Eastern CapeBirth of first Nguni calf in April 2011Expanded roll out in 2012/13 Supported by Technology Innovation Agency R12m/yr

Expanded on Kaonafatso ya Dikgomo

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EMBRYO TRANSFER CALF IN VHUVHA, LIMPOPO

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R & D Solutions for Livestock Health

Rare Tick identified in 1931 (Nuttallielia namaqua) Last described in 1984 Identified in 2011 in Namaqualand Possibly due to climate change Shares common features with soft and hard body

ticks Commonality could hold key to developing

vaccine that protects against multiple tick species FMD vaccine – process development successful

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R & D Solutions for Wheat Production Identified unique lines which resist multiple

diseasesLeaf rust, yellow rust, stem rust and Russian

wheat aphid Breeding into high yielding and high quality lines

Outcome: Increased yields and productivityImprove food security,reduce high cost of fungicides and insecticides

Continuing research on Ug-99 resistant cultivars

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R & D Solutions for Horticulture

Macadamia fastest growing crop in SAStink Bugs -- estimated loss of R25m /yrIdentified cycles in Stink bugsCritical dates identifiedDeveloped appropriate management

systemsReduces cost of sprayingReduces environmental impact

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CRITICAL RESEARCH INFRASTRUCTURE FOR SUCCESSS

High throughput

Genome sequencingDNA analysisBioinformaticsMolecular breedingDNA fingerprintingDisease diagnostics

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ARC Contributing to Knowledge through Scientific Publications

Year No. of Scientific Peer Reviewed Journal Articles

2007/2008 160

2008/2009 144

2009/2010 183

2010/2011 199

2011/2012 269

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ARC HUMAN RESOURCES

STRENGTHENING HUMAN RESOURCES• Research and science leadership: identify training initiatives

in research and science leadership skills, research career management, innovation, Intellectual Property management and

commercialisation management.• Pipeline development: introduce higher numbers of students

into the research and science career through bursaries, internships, postdoctoral fellowships and professional development programmes.

• Operations support: streamline HR processes such recruitment, performance management, retention and remuneration to deliver objectives.

• Non core skills: Identify a range of training and development options both formal and informal that will benefit and develop employees who are not core.

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Employee Qualifications

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Employee Skills Development

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ARC Professional Development Programme

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TRANSFORMATION INITIATIVES

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ARC SCIENTIFIC CAPACITY

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INFRASTRUCTURE AND OTHER ASSETS

Implementation of integrated security measures – security risk assessments at all ARC service delivery points

Consistent security vetting Implementation of a fraud-prevention plan –

measures to identify fraud were explored and implemented

Optimising revenue from leased properties Asset Management Plan – an inventory of ARC

assets was compiled ICT Strategy approved for implementation in 2012

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Managing Our Finances For a

Sustainable ARC

PURPOSE

To ensure that the ARC’s business is maintained and sustained and that the ARC makes effective use of all financial resources at its disposal to achieve its strategic objective.

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Finance Performance in Comparison

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IMPROVEMENTS PAST 5 YEARS

Financial disciplineCash ManagementUnqualified auditsNew competent Staff membersSupply chain policies and procedures

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Key Strategic Issues (Financial)

1.External Income Growth

2.Cost Containment (Other Operating Costs)

- improvement and standardization of costing and pricing

- improvement in project management

3. Replacement and upgrading of infrastructure

4. Improving organizational processes to eliminate adverse audit findings.

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Key Challenges for ARC

External Income growth.Limited funding for capex.Limited funding to fill the required number of

critical vacancies.ARC competitiveness for skills

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COMMENTS/QUESTIONS• Engage each other for innovation• Thinking out of the box• Work within current Govt & other stakeholder

planning cycles• New Strategic Plan under implementation • Critical Success Factors yearly for 5 yrs

• MAKING OUR STRATEGY SUSTAINABLE

THANK YOU43