PERISHABLE PRODUCTS

EXPORT CONTROL BOARD

Parliamentary Portfolio Committee on

Agriculture, Forestry and Fisheries

March 2016

Strategic Plan and Budget

2

The PPECB Board

Left to right : EURICA SCHOLTZ, ANTON RABE, JILL ATWOOD-PALM, MONO MASHABA,

ANGELO PETERSEN (Chairperson), LUYANDA KUTTA, DONALD WESTCOTT,

CHRISTINA ENGELBRECHT, WILLIAM STEENKAMP

3

GENCO Team

Coastal

Left to right : PINKI LUWACA (Human Resources), JOHAN SCHWIEBUS (CFO), DHARMARAI NAICKER (Laboratory

Services), CYRIL JULIUS (Operations Coastal), SAREL VAN WYK (Operations South),

SINOVUYO MATAI (Operations North), LUCIEN JANSEN (CEO), YANESH RAMIAH (CIO) not in photo

4

Vision

Enabling our customers to become the

preferred suppliers of perishable products worldwide

Mis

sio

n

Empowering our people to execute their mandate so as

to give integrity to their customers’ products

Strategic Objective

No 1

Enhance the

credibility of the

South African

export certificate

Strategic Objective

No 2

Support the export

competitiveness of

South Africa’s

perishable products

industries

Strategic Objective

No 3

Strengthen the

PPECB’s capacity to

provide a professional

suite of services for

its customers

Valu

es

AccountabilityConfidence PassionCollaboration Professionalism Integrity

Strategic GoalsO

bje

cti

ves

Strategic Objective

No 4

Contribute to the

socio-economic

transformation of the

agricultural sector

5

PPECB contextual environment influenced by:

• New Growth Path (NGP)

• National Development Plan (NDP)

• Industrial Policy Action Plan (IPAP)

• State of the Nation Address (SONA)

• Agricultural Policy Action Plan (APAP)

• 9 Point Plan

Government Imperatives (Ref: Pg7)

6

SONA 2016

• The development of Public Private Partnerships.

• Investment into Information and Communication

Technology infrastructure (ICT).

• Creation of jobs through innovation.

• The introduction of cost cutting measures.

Government Imperatives (Ref: Pg7)

7

SONA 2016 continued

• The Monitoring of Performance of Organs of State

• Intra Africa Trade

• Increase Exports

• Skills Development

Government Imperatives (Ref: Pg7)

8

APAP

• An annual increase in gross value add for

Agriculture, Forestry and Fisheries.

• Increase in the number of small holder farmers.

• Increase the number of jobs by 1 million in 2030.

• Increase the contribution of processed

products to manufacturing annually.

Government Imperatives (Ref: Pg7)

9

APAP continued

• Reduce households vulnerable to food insecurity.

• Percentage Biomass increase of stock levels in

Deep-water hake.

• Reduced vulnerability and risks associated with

climate change impacts.

Government Imperatives (Ref: Pg7)

10

President’s 9 Point Plan

• Revitalisation of agriculture

• Agro-processing

• Role of State Owned Entities

Government Imperatives (Ref: Pg7)

11

• Citrus black spot (CBS) not resolved with the EU.

• Effects of the drought on farm output.

• SOE as Implementing Agencies vs Government

as the policy makers.

• Assistance to SADC countries, Namibia.

• Training and assistance to small holder farmers.

• Investment in mobile technology.

Other factors influencing the PPECB

contextual environment (Ref: Pg8)

12

• Re-capacitate the R&D department within PPECB.

• Drive transformation through core competencies

to add to Government’s transformation agenda.

• Align the current inspection methodology with

global trends.

• Re-position the PPECB Lab to increase support

to Government and the Export industry.

• Create a stable infrastructure to support mobile

technology.

PPECB Focus Areas 2016/17 (Ref: Pg9)

13

PPECB core mandates are derived from 2 Acts:

Agricultural Products Standards Act 119 of 1990

• for quality inspections and food safety audits

Perishable Products Export Control Act 9 of 1983

• to oversee the orderly export of perishable

produce

Legislative Mandate (Ref: Pg10)

14

• Both Acts are currently under review.

• Been published for public comment.

• Stakeholder engagement will take place in

March/April 2016.

• Hopefully be passed by Parliament late 2016.

Legislative Mandate (Ref: Pg10)

15

Medium Term Expenditure Framework (Ref: Pg12)

R thousandRevised

EstimateMedium-Term Estimate

2015/16 2016/17 2017/18 2018/19

REVENUE

Sale of goods and services 268,623 320,141 355,357 392,669

Interest Received 3,769 4,526 4,843 5,182

Transfers received 600 848 848 848

TOTAL REVENUE 272,992 325,515 319,942 353,754

EXPENSES

Compensation of employees 186,592 216,589 238,248 263,264

Goods and services 91,844 105,178 115,696 127,265

Depreciation 3,428 6,156 7,018 8,000

Interest paid 10 13 13 13

TOTAL EXPENSES 281,874 327,936 360,975 398,543

Surplus/(Deficit) -8,800 -2,421 73 156

16

Strategic Programmes (Ref: Pg15)

17

Summary of focus areas 2016/17

New Inspection Methodology

Research & Development

Transformation

Laboratory

Cost Containment

Mobile Technology

Infrastructure

18

Impact

(A)

Probability

(B)

Inherent

(C)=(A)x(B)Residual

Non-compliance to the

APS (Agricultural Product

Standards Act) mandate

4.4 3.4 15.0 7.8

The PPECB Act does not

fit into the current

deregulated environment

3.8 3.8 14.4 9.9

Financial Instability 4.1 3.4 13.9 8.1

Misalignment of the Act,

the mandate and the

business model

3.8 3.6 13.7 9.3

Insufficient disaster

recovery4.4 3.0 13.2 3.0

Risk Profile (Ref: Pg20)

19

THANK YOU