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Vision, Mission and Core principle

Vision Strategic positioning of agriculture in a dynamic global market

Mission To provide agricultural marketing advisory services to key stakeholders in

support of a vibrant agricultural marketing system in South Africa.

Core Business Principles Integrity Assertive Collaborative Service Excellence Fairness Objective Innovative

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Legislative Framework

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Strategic Outcomes Oriented Goals

Goal Statement To provide agricultural marketing advisory services to key stakeholders in

support of a vibrant agricultural marketing system.

Strategic Objectives Increasing market access to all market participants More efficient marketing of agricultural products Increased export earnings from agricultural products Enhanced viability of agricultural sector

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Corporate Governance

Council Committees Audit and Risk Committee Human Resources and Remuneration Committee Risk Management Committee Management Committee

NAMC Divisions Markets and Economic Research Centre Statutory Measures Agribusiness Development Agricultural Trusts

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Council Members

• Mrs. Msimang (Chairperson)• Ms. Marie Van Der Merwe• Mr. Andries Cronje• Ms. Thami Zimu• Dr. Litha Magingxa• Dr. John Purchase• Ms. Mina Gill• Mr. Andrew Young

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AGRIBEE Threshold Study

• Special Project

• NAMC was appointed to review the AGRIBEE Sector Codes Threshold,

• The study objective was to review of the thresholds for Qualifying Small Enterprises (QSEs) and Exempted Micro Enterprises (EMEs) contained in the AgriBEE Transformation Charter for the purpose of the AgriBEE Sector Codes.

• The final report was presented to DAFF in July of 2013.

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Recommendations

8

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Markets and Economics Research Centre

Strategic objective

Planned Targets Achieved Targets

Increase market access

2 Reports on issues pertaining to market access

Piggery Case study Dairy case study Tunnel case study

1 Baseline study Macadamia nuts

Linking Farmers to Markets

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Trade Focus Area

Strategic objective

Planned Targets

Achieved Targets

Optimisation of export earnings

6 Trade Probe Reports

6 Trade Probe Issues: 39, 40, 41, 42, 43 and 44

4 Fruit Trade Flow Reports

4 Fruit Trade Flow Reports with profiles for citrus, sub-tropical and deciduous fruit as well as other profiles

2 Trade Studies

2 Trade Studies:-BRICS studies (compiled into a book)- Liberalisation and regional integration in Southern Africa

100% response to policy inputs (ITAC)

Applications: Increase in duty rate for uncooked pasta; Increase in duty rate for half mussels; Review of the rebate facility for salmon and trout; Removal of the rebate facility on honey; Removal of the duty rate on other milk concentrate; Reduction of duty rate on white pear beans

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Trade Focus AreaStrategic objective

Planned Targets Achieved Targets

Optimisation of export earnings

8 Seminars 8 topics addressed in different seminars

Other:Capacity building and networks

A trip to the USA was supported for exposure and establishments of networks by young agricultural economists.

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Agro-Food Chains

Strategic objective

Planned Targets Achieved Targets

Enhancing the viability of the agricultural sector

4 Quarterly Food Price Monitor (FPM) reports released

Four (4) FPM reports for May 2012, Aug 2012, Nov 2012, Feb 2013 were published

1 Annual Food Cost Review released

One Annual Food Cost Review was published in September 2012.

4 Input Cost Monitoring (ICM) reports released

Four reports were published namely: Story of maize and wheat – an update (1st Quarter); Story of meat and wool – an update (2nd Quarter); An update on administered prices was published and presented at the CEO’s forum (3rd Quarter); An update on selected input products was published.(4th Quarter)

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Agro-Food Chains

Strategic objective

Planned Targets

Achieved Targets

Enhancing the viability of the agricultural sector

2 Agri- Benchmark reports released

The following 2 reports were released:Beef and Sheep; Cash Crops (13 selected reports and working papers are available)

4 Agro-food chain reports

6 agro-food chains reports were released covering a number of industries (Tomato, Seed industry, Mohair, Paprika, Margarine and Essential oils), including a generic study on global food value chains

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Target Performance Achievement

Statutory Measure

Investigations 36 31 86%

Statutory Measures Gazetted 24 19 79%

Report: Status of Statutory

Measures 1 1 100%

Crop Estimated Liaison

Committee Meetings 2 2 100%

Updating of Register for

Directly Affected Groups 1 1 100%

Statutory Measures

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Summary of statutory measures applicable in South Africa 2012/2013

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

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Summary of statutory measures applicable in South Africa 2012/2013

INDUSTRY Administrating body Statutory Measures

Levy Registration

Records & Returns

Milk Milk Producers’ Organisation

Mohair Mohair SA

Olives SA Olive

Pecan nuts SA Pecan Producers’ Association

Pork SA Pork Producers’ Organisation

Potatoes Potatoes SA

Poultry and eggs Southern African Poultry Association

Red meat Red Meat Levy Admin

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INDUSTRY Administrating body Statutory Measures

Levy Registration

Records & Returns

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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FUNCTIONS FINANCED THROUGH STATUTORY LEVIES 2012/2013

Functions Amount spentR

Percentage of total levy expenditur

e%

Administration 19 392 734 6

Transformation 79 842 022 23

Research 91 811 308 27

Local promotions 40 615 282 12

Export Promotions 50 913 157 15

Information 34 220 159 10

Quality control 15 200 307 4

Plant improvement 7 448 390 2

Production development 2 773 883 1

TOTAL 342 217 242 100

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One of the development scheme NAMC designed and developed

Top left: Vineyard scheme originsTop Right: Farmers HarvestingBottom Right: Delivery to markets

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Sweet potatoes scheme

The NAMC collaborated with the ARC and PPECB on the facilitation of sweet potato development scheme in Limpopo province

The scheme was designed to link 100 small scale sweet potato growers with markets

The scheme operates on a 1 117 ha irrigation scheme in Tshiombo in Thohoyandou

The NAMC is providing marketing opportunities and the ARC is assisting with technical support

The support to this growers will continue into the following financial year.

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Training

During the 2012/2013 financial year the NAMC facilitated 4 training programmes to capacitate the producers to operate their businesses successfully

One of the training courses was tailor-made for women entrepreneurs

Agribusiness Training course for Women The NAMC hosted a three day training course for 32 women entrepreneurs

The objective of the course was to capacitate women entrepreneurs through marketing, financial and strategic management

The NAMC collaborated with provincial department, Land Bank, South African Women Entrepreneur

Network, Cornell University and Buhle Farmers Academy

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Quality Assurance Training Thirty-two growers attended the NAMC facilitated training course on food

safety The training was held in Limpopo province on the farms of the growers The NAMC collaborated with industries and the Limpopo department of

Agriculture

The training focused on Product quality; Responsible use of pesticides and General Agricultural Practices

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Export Programme

During the 2012/2013 financial year, the NAMC collaborated with its industry partners and international organisations to support emerging producers to export their products

Below are some of the highlights

The NAMC collaborated with Subtropical Association, IDC and Limpopo agriculture to support macadamia growers

14 growers were targeted in Vhembe districts The growers were supported with technical interventions to produce good

quality products Markets were sourced internationally through export agents

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Industry Trusts

Industry Trusts submitted reports on their performance Report was submitted to Minister Mohair Trusts: Sarah Louw term expired and was replaced by Mr Thukelo

Mashologu Capacity Training Programme conducted for 26 Ministerial Trustees

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Employment Equity

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Finance & Administration

Income ( Grant received ) R36 million

Interest generated R724,000.00

Sponsorship received R4,6 million

Expenditure R38.5 million, 5% above income

Creditors payment period 26 days against a target of 30 days

Debtors collection period 16.8 days against a target of 30 days

Fruitless & wasteful expenditure R40,000.00

Irregular expenditure R2,9 million

Unauthorized expenditure R0

External Audit Report Unqualified

Financial Overview

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Statement of Financial Performance for the year ending 31 March 2013

2011/12 2012/13 % Change

R’000 R’000

Revenue 37,541 36,743 -2%

Non- Exchange revenue 36,604 36,019 -2%

Exchange revenue 937 724 -23%

Expenses 36,577 38,445 5%

Administrative Expenses 2,999 2,840 -5%

Personnel Expenditure 22,848 22,301 -2%

Operating Expenditure 10,232 12,695 24%

Depreciation & Amortisation 458 577 26%

Finance cost 40 32 -20%

Profit/(Loss) on disposal of asset

(8) (59) 638%

Surplus / (Deficit) for year 956 (1,761)

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Expenditure Categories: 31 March 2013:

2011/12 2012/13 % Change

Expenditure Categories: R’000 R’000

Personnel 22,848 22,301 -2%

Operating 4,050 7,024 73%

Rental: Office space 944 948 0.4%

Research, workshops & investigations

5,238 4,723 -10%

Other administrative 3,505 3,508 3%

Total 36,585 38,504 5%

Baseline Allocation 36,049 31,409 -13%

Donor funds 555 4,610 731%

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Expenditure per category as a percentage of total expenditure: 31 March 2013: Cont’

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Expenditure trends per programme:

Name of Programme

Actual expendi

ture

2011/12

R’000

Actual expenditure

2012/13

R’000

Variance

R’000

Reasons for variances

Finance & Admin

7,632 7,630 -2 Variance of -0.03%.

Human Resources

3,398 3,387 -11 Variance of -0.3%..

Agribusiness Development

3,158 3,302 144 Variance of 5%. The increase is directly related to increase on expenditure

related to the Agribiz training workshop.

Agricultural Trust

4,042 4,008 -34 Variance of -0.8%.

Statutory Measures

2,091 2,214 123 Variance of 6%. This is due to increase on operational expenditure, which

includes travelling, conferencing, printing and editing.

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Expenditure trends per programme:

Name of Programme

Actual expendi

ture

2011/12

R’000

Actual expendit

ure

2012/13

R’000

Variance

R’000

Reasons for variances

MERC 11,251 13,469 2,218 Variance of 20%. Increase in number of Section 7 and workgroup investigations, which includes the AgriBEE and Agri-benchmark projects.

Council 1,269 1,197 -72 The variance -5.5% due to the number of meetings attended by each council member.

Administration (CEO’S OFFICE)

3,744 3,297 -447 Variance of 1-2%. The decrease is directly related to the cut in MTEF budget

allocation.

Total 36,585 38,504 1,919

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Statement of Financial Position

2011/12:R’000

2012/13:R’000

% change

Reserves 2,498 737 -70%

Non-current assets

1,500 1,402 -7%

Receivables 662 354 -47%

Cash & Inventories

1,957 1,686 -14%

Liabilities 1,621 2,705 67%

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Conclusion

• The NAMC Council humbly submits this report as the true state of affairs for the 2012-13 Financial Period.

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Thank You

NAMC ANNUAL Report

2012-13