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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