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annual report2009-2010

PPECB | annual report | 2009 - 2010 01

This annual report presents PPECB’s operating and

financial performance for the year 1 April 2009 to

31 March 2010. It integrates sustainability outcomes

of interest to PPECB stakeholders.

about this report

PPECB | annual report | 2009 - 201002

To build competitive capacity in our people

and systems in Industries we serve in order

to inst i l l world-wide confidence in South

African Perishable Products

our mission

A Partner in Global Competitiveness of South

African Perishable Products

our vision

contents


Highlights

Business Overview

Executive Overview

Sustainability Report

Operational Report

Corporate Governance

Financial Statements

04

08

14

34

44

54

64


highlightsfinancial highlights

Net working capital improved from R61 million to R82 million.

Current ratio improved from 3,5 in 2009 to 4,3 in 2010.

Trade receivables collection period improved from an average of 38 days in 2009 to 36 days in 2010.

Bad debt as % of total revenue improved from 0,2% in 2009 to 0,1% in 2010.

Goods and services of R20,1 million were procured from BEE recognized suppliers of which 29% was from Black-owned

Entities and 42% from Qualifying Small Enterprises and Exempted Micro Enterprises.

Financial Management


Significant projects:

New systems:

operational highlights

A new business strategy, incorporating Value Added Services and

balancing objectives of short term productivity and longer

term growth strategies was defined and accepted by the Board.

PPECB entered into a number of significant business partnerships:

Improved stakeholder relations:

JFPM for training and small scale farmer development.

University of Stellenbosch for synergies in Cold Chain

R&D, including technology transfer.

NAMC for capacity building in the emerging

horticultural sector.

SAAGA local market campaign preventing immature

avocados on South African local markets.

Partnership formed with DAFF on inland Citrus Black

Spot inspections.

Networks established with 17 African countries leading

from the International Harmonization Workshop.

Improved relations with international organizations such

as the United Nations Economic Commission (UNECE),

Organization for Economic Development (OECD).

Improved relationships with leading inspectorates

around the globe, i.e KCB in Holland, HMI in the UK,

BLE in Germany, etc.

Continuation of sector specific stakeholder

management increased service delivery levels to the

various industries.

International Harmonization Workshop on Commercial

Quality Standards of Fresh Fruit and Vegetables for

Countries of Africa. (Africa Products Standards

Workshop.)

Alternative sampling methodology project.

EDI.

Employee Wellness Programme.

The PPECB laboratory in Pretoria added to its capability

by introducing Gas Chromatography to complement

its already successful validated analysis using HPLC

techniques. The GC capability allows us to identify and

quantify the amount of individual fatty acids present in

an oil sample. It is the method of choice for these

analyses because of convenience and sensitivity.

The Harmonization Programme increased its consistency

measures to include pome and stone fruit as well as

the Cold Chain. The programme was further enhanced

by increasing the number of consistency measures

which ties in with the programme’s strategic theme.

As part of the capacity building trajectory of the

organization, the Harmonization Programme increased

its scope for accelerated skills transfer to include pome

and stone fruit, and developed a new programme for

accelerated skills transfer on grain and grain products.


The PPECB Cold Chain monitoring function, coupled

with the integrated partnership management of cargo

temperature between PPECB, Exporters and Lines has

lead to a unique value added en route monitoring

service, one of a kind in the world of shipping.

Alternative sampling methodology project – work

continued on risk-based model.

Support to innovation was provided within the ambit

of our responsibilities. Due to successful trials we now

find that new standards and the creation of certain

shipping processes, like continuous 24 hour shipments

to Japan and controlled ambient citrus loads in

containers, have become the norm.

External capacity building saw the introduction of

capacity building initiatives at packhouse level on

product standards quality, with emerging farmers as

the main target market. Sessions were held in the

Eastern Cape, Western Cape, Mpumalanga, Limpopo

Province, Kwazulu Natal and in neighbouring country

Swaziland.

Target Country and Target Region Codes were

introduced in the deciduous and citrus industries

at intake level to ensure correct application of

phyto and quality standards, as well as improved

accuracy of inspection statistics. These codes are also

building blocks for the EDI project and will be rolled

out in 2010 and 2011.

Accreditations:

ISO 22000 is a food safety management system

standard that offers specific requirements whereby an

organization in the food chain needs to demonstrate

its ability to control food safety hazards in order to

ensure that the food is safe at the time of human

consumption. Thus addressing food safety aspects

throughout the food chain. PPECB completed 2

ISO 22000 audits in preparation for accreditation from

SANAS during 2010 and another 3 audits have been

confirmed. Full accreditation is expected in November

2010.


businessoverview

Historic Timeline

Strategic Intent

Mandate

Business Model

Services

Operational Reach

10

12

12

12

13

13

contents


Historic Timeline1926 - 2010

1926

1927

1928

1929

1930

1932

1935

1937

193919411947

1951

1955

1957

19591962

1968

1970

1971197219731974

1975

1977

The Perishable Products Export Control Board

is founded.

Almost 4 million fruit trees are planted in commercial

orchards.

The number of citrus trees in South Africa reaches

3 million.

The PPECB enters into a shipping contract with the

Union Castle Shipping Company.

The 2 million mark for the export of Deciduous

Fruit Exchange appoints Mr Martin Dykes as its

overseas representative.

Direct shipping to Sweden is introduced – now our

most important market after U.K.

All South African citrus are exported under the

name “Outspan”.

Dr A.J.M. Smith is appointed as the technical advisor

of the PPECB.

The development of pre-cooling tunnels.

Export terminated due to World War II.

Mr J.A. Gibson is appointed as Chairperson of

the PPECB.

First direct export to West Germany.

The conference, Government officials and the PPECB

sign a new Ocean Freight Agreement in Pretoria.

Mr Danie Joubert is appointed as Chairperson of

the PPECB.

All boxboard is obtained locally for the first time.

The PPECB appoints a planning committee, tasked

to determine how the industry must deal with

the large amount of perishable produce available

for export.

The container terminal at Southampton comes into

operation.

The use of woodwool in grape packing is

discontinued.

Gross fruit exports total R59 million.

The PPECB introduces mandatory banker’s guarantees.

Safmarine takes over the South African Line.

The deciduous fruit industry’s plant improvement

organisation (SAPO) is founded.

A fire ravishes 15 pre-cooling tunnels at the Port

Elizabeth harbour.

Official opening of the Conference Line’s container

service on 1 July.


19781979

1981198219831986

1988

1989

19901991

1994

1997

1998

20002001

Cartons replace wooden boxes for grape exports.

A composite carton for peaches and nectarines is

introduced.

A label for export grape bunches is introduced.

Exports reach 24 million cases.

The PPECB commercialises.

PPECB advises the South African Defence Force on

the transportation of their food.

Late harvest grapes exported for the first time

and several new local grape varieties are also

commercially exported.

Official opening of the PPECB’s new Head Office

building in Plattekloof, near Cape Town.

All Cape fruit is subjected to quality evaluation.

Government rules that the PPECB must take over

the quality inspection function from the Directorate

of the Agricultural Product Standards.

PPECB obtains a building in Grabouw, and after

renovation turns it into a Regional Office and training

centre.

Deregulation of the fruit industry causes chaos in

the export market.

A meeting is held between PPECB and the

Conference Lines at Lanzerac Wine Estate in

Stellenbosch, where the SAECS contract is rescinded

with immediate effect.

A new PPECB Board is appointed.

PPECB achieves ISO 9001: 2000 certification and

becomes the first SA service provider to receive

preliminary EUREPGAP accreditation. PPECB

celebrates 75 years of service to South Africa’s

Perishable Products Export Industries.

2002

2003

2004

2005

2006

20072008

2009

2010

DAFF appointed PPECB as the assignee, to inspect

dried fruit.

The EU 1148 accreditation for PPECB inspection

systems was received.

Sector Programme Management was introduced,

the aim being to get closer to the stakeholder

needs. The Official Food Safety Mandate was

received from DAFF.

A successful donor-funded project, South African

Pesticide Initiative Programme (SAPIP I), was hosted

within PPECB for a period of 3 years.

A differentiated Levy Structure was introduced for

main products.

PPECB was successfully audited by The Food

and Veterinary Office (FVO) on pesticide residues

in food stuffs.

The new PPECB Board is appointed.

New CEO, Mr Luvuyo Mabombo, was appointed.

PPECB enters into the first agreement with the

National Agricultural Marketing Council (NAMC)

to assist low income farmers to access local and

international markets.

The Harmonization Programme, focusing on

consistency in the execution of mandated functional

activities, was approved by the PPECB Board.

PPECB, together with UNECE and DAFF hosted an

International Harmonization Workshop on

commercial quality standards for fresh fruit and

vegetables for African countries. A total of 109

delegates from 18 African countries were in

attendance.

PPECB entered into an agreement with The Egyptian

Horticultural Export Improvement Association (HEIA)

and the Industrial Modernisation Centre (IMC), to

assist HEIA in establishing a premium brand for the

export of Egyptian Horticultural produce.


strategic intent

PPECB is committed to building confidence in South African produce and establishing the country as a globally recognised

competitor in the perishable industry. PPECB gives meaning to its strategic intent through the implementation of the initiatives

in its approved strategic plan.

mandate

PPECB

Ministry

LEGISLATIONAgricultural

Products StandardsAct 119 of 1990

Quality

MRL

Food Safety Traceability

Exportcertificate

LEGISLATION

LEGISLATION

Perishable ProductsExport ControlAct 9 of 1983

Temperature and Coldtreatment management

Equipment certification

Temperature Instruction

Letter

Agricultural PestsAct 36 of 1983

Phytosanitaryrequirements

Bilateral agreements

Phytocertificate

business model

Governance

Statutory Operations Value Added Services HR ITFinance

Operations Corporate Services


operational reachPPECB Offices

services

Product and Equipment Certification.

Private Standard Certification.

Cold Chain Management.

Statistical Information.

Food Safety Auditing.

Advisory Services.

Training.


executiveoverview

Board of Directors

Chairperson’s Report

Executive Committee

Chief Executive Officer’s Report

Annual Performance Report

Chief Financial Officer’s Report

15

16

18

19

21

32

contents


Elaine Alexander

chairperson

Charles AtkinsMaxwell HawesLouis VorsterChristina Engelbrecht

Anton RabeCynthia Sixolo

Molefe Mokoene

vice chairperson

Manie Booysen

observer

Makgoro Mannya

observer

board of directors2009 / 2010


The current Board’s term has not been without its highlights

and certainly not without the lows. However, I believe that

when critically reviewed the Board has discharged its duties

with due diligence, remaining at all times cognisant of the

responsibilities delegated by the Minister of Agriculture,

Forestry and Fisheries and expected of it by both clients and

stakeholders in regards the regulation of South African

exports of perishable produce.

BackgroundInitially the Board was appointed for a period of only 1 year

with its main task being the much needed review of the

PPEC Act. Subsequent to the completion of the 1 year

term the previous Minister of Agriculture extended the

Board’s term for another 2 years allowing the Board to

fulfill the mandated 3 year term, as per the Act.

In that time the Board has had 2 Chairpersons, the first

resigning to take up a position in the Department of

Agriculture. It also appointed a new Chief Executive Officer.

The Board, in these 3 years, has also achieved 2 significant

firsts for the company, which I believe they should be

commended for; 1. The appointment of the first women

Chairperson and 2. The appointment of the first person of

colour as the CEO in its history.

Review of the ActThe Board has reviewed the PPEC Act and recommendations

and proposals were forwarded to the Department of

Agriculture, Forestry and Fisheries (DAFF). At this stage, there

chairpersonElaine Alexander

report by the

has been no significant feedback from the Department nor

has there been movement toward finalisation of the reviewed

Act. I believe that it will be important for the incoming Board

to relook the recommendations as they may no longer be

as relevant, as it is now clear that the new administration

has a greater role for the Board to play.

StrategyA 5 year strategy has been developed, the period will be

completed in 2013. This strategy has been presented to both

DAFF and to the Portfolio Committee, where it has been

well accepted. It has also been shared with clients and

stakeholders who have, in the majority, supported the new

direction.

The main intent of the strategy is for the PPECB to provide

services which support the ongoing development of the

export competitiveness of South African perishable products

all the while remaining cognisant of the role of a Public Entity

in the developmental state. This strategy has brought the

company into a position where, at times, it has been considered

to be operating outside of its mandate under the PPEC Act.

Hence the need for the incoming new Board to ensure that,

going forward, the PPEC Act revision is fully completed and

promulgated. I must state categorically that the current Board

has spent many hours debating the merits of the strategy

and its possible consequences and has identified the fact

that the current Act is drafted broadly enough to allow the

Board the scope to respond to the ever changing and

increasing demand from South Africa’s export markets.


In this area, a major breakthrough was achieved when this

Board was finally able to conclude a long term debate

involving the provision of Value Added Services, requested

time and again by our clients and an area which we believe

is critical to PPECB’s strategic objectives. This debate was

current at the commencement of our term and my

understanding was that it had been constantly debated

throughout the term of a number of previous Boards.

I believe, in respect to the implementation of the strategy,

that the PPECB’s Executive has worked extremely hard to

ensure that all annual objectives are being achieved.

Unfortunately, there is the fact that often their efforts are

hampered because of blockages experienced by non-delivery

of other critical stakeholders.

Corporate GovernanceA key issue for the Board is corporate governance, and is

especially difficult given the nature and makeup of the PPECB

Board as mandated under the Act, i.e. the fact that Board

appointees are nominated from the client base despite being

appointed by the Minister. Under the King III recommendations

on corporate governance, the question of whether or not

there are enough independent Directors is questionable.

However, until the Act is reviewed and this issue given serious

objective consideration, it may continue to be an issue.

In this context, I am pleased to report that I believe that this

Board has taken giant leaps forward to bring maturity to the

discharging of its duties in respect to the member’s obligations

to the company and shareholder, whilst being directly linked

to the client base of the company.

The Board has introduced an independent annual review

both as a team as well as individuals and has spent time

in ensuring that the members of the Board have a full

understanding of governance issues. It has also reviewed its

charters for the Board, the Audit and the HR Committees

to ensure compliance to corporate governance within the

King III report.

FinanceThis area will be covered in more depth by the report of the

Audit Committee Chairperson, however, I wish to commend

the Chair on his leadership as well as the CEO and the CFO

for attaining unqualified audits for the past few years.

Human ResourcesThis area will also be covered in more depth by the HR

Executive’s report and, as previous, I wish to thank the

Chairperson of the HR Committee for his leadership in an

area which needed a great deal of change from the

commencement of the Board’s term. As PPECB’s services are

delivered by its people, who are of a higher skills level than

in many other companies, it is critical that this function is

given the same consideration as that of the finance function.

I am pleased to report that there have now been a proliferation

of well thought out initiatives in this area, which I believe

will ensure that the company has, as is reasonably possible,

a satisfied work force. A special mention and thanks must

be given to the HR Executive who has tirelessly pursued the

well-being of our employees.

Employment Equity has been a particular challenge but the

Executives have made great strides in this area. The process

has, of course, not been without its casualties but these are

being managed and the demographic profile of the company

has changed significantly over the past 2 years.

ConclusionReflecting on the past 3 years, being a member and

Chairperson of the PPECB Board has been a personally

satisfying experience. It has often been extremely challenging

and much hard work but I would not have missed it.

On behalf of my Board, I want to thank the Minister of

Agriculture, Forestry and Fisheries for her confidence in

extending our term and allowing us to continue whilst the

appointment of the new Board was finalised. I also want to

thank my fellow Board members for their confidence in

appointing me as Chairperson and giving me the privilege

of guiding an entity critical to the export competitiveness of

South Africa’s perishable produce.

Finally, on behalf of the PPECB Board, I would like to thank

the PPECB Executives for their continued commitment to

the implementation of the company’s strategy and for a job

well done. I would like to mention and recognise the PPECB

employees and their commitment to servicing our clients in

often difficult circumstances and far flung locations for,

without them, we would not have been able to have achieved

much of what we did.

Elaine Alexander

Chairperson


Luvuyo Mabombo

chief executive officer

executive committee2009 / 2010

Johan Schwiebus

chief financial officer

Adela Fortune

head: legal services and

company secretary

Dean Martin

executive:

value added services

Zakhe Makhaye

executive:

human resources

Nokulunga Maswana

executive:

statutory operations

chief executive officerLuvuyo Mabombo

report by the

“IN PURSUIT OF SUPERIOR PERFORMANCEIN A COMPETITIVE WORLD”

Making judgement on the suitability of a client’s perishable

export consignment, the appropriateness of Cold Chain

paraphernalia and the carrying temperature regime for fresh

produce and other perishables is a critical responsibility the

Perishable Product Export Control Board. We do all of this

work mindful of our task to facilitate order and efficiency in

the perishable products export chain. We equally do this

work focused on supporting South Africa’s competitiveness

in the global trade in fresh produce. As a regulator for the

quality of fresh produce exported from our country, we

influence the day-to-day South African fresh produce

consumption decisions of the overseas consumers as well as

the decisions of the local producers of fresh fruit and vegetables.

This is the ultimate impact our day-to-day work has.

The 2009/10 Financial Year was yet another historic year at

the PPECB, with the business having posted positive financial

results in the midst of a challenging global recession. We

have done this through careful management of our costs,

whilst working on increasing efficiency of our resources, in

particular our people, who are the most important resource

that this organisation has. We continue to strive for brand

visibility in corners where the brand has not been seen before.

PPECB also continues to play a significant role in the country’s

“Food Control System” for regulated agricultural products

destined for exports; all in pursuit of being “a Partner in

Global Competitiveness of South African Perishable Products”.

STRATEGY HIGHLIGHTSOur Strategic Plan 2009-13 formed the basis for all service

delivery achievements that the business obtained. In line

with our strategic objectives, we successfully hosted an

inaugural International Harmonization Workshop on

Commercial Quality Standards for Fresh Fruit and Vegetables

for Countries of Africa in partnership with the UNECE. The

success of this workshop has opened opportunities for the

PPECB to assist in capacitating other African countries on

quality standards for fresh fruit and vegetables, which are

key for global trade in fresh produce.

Full roll-out of our Harmonization Program for the

competency of our inspectors. This program will go a

long way in supporting our ISO 17020 accreditation

as an Inspection Body.

Consolidate and fast-track the Electronic Data

Interchange project.

Initiate a PPECB Training Academy.

Assist Government in benchmarking a South African

Food Safety System against globally recognised good

agricultural practice.

Some of the year’s highlights include:

We have realised these successes only because of our

unwavering commitment in reversing some of the mindset

we had in the past, that of following a strategic direction

dictated to us by the outside world.

OPERATING PERFORMANCEBased on performance targets the business had set itself,

we have more than achieved our own expectations.

Achievement would have been more than what is reported

had our legislative enabling environment allowed the business

to. Detail of the financial results equally reflects a positive

outcome for an organisation exposed to challenges of

international trading trends and global recession. The business

will ensure that, in future, it utilises its accumulated reserves

to invest in sustaining the business well into the future.

Management of the PPECB, yet again commits itself to

building a world class organisation, worthy of the South

African brand it represents around the world. With

professionalism, our integrity will stand the test of times.

Luvuyo Mabombo

Chief Executive Officer


annual performance report

StrategicObjective

KeyPerformance

Indicators

2009/10 Financial Year

Year 1: 2009/2010

Target Action Plan/Activities

PerformanceProgress

1.Enhance thecredibility of

the SouthAfricanExport

Certificate.

Align deliverycapability with

globallyrecognized

methodologies.

Investigatewith DAFFalternative

sampling plansand systemdesigns to

build up a riskdatabank.

Present riskprofile and

benchmarkedQA

methodologyto DAFF.

The PPECB concluded the data gathering for the“Alternative Sampling Methodology Project” usingits Business Intelligence tools. Risk profiling howeverremains ongoing. A joint Project Team of the PPECB andDepartment of Agriculture Forestry and Fisheries (DAFF)was set-up. The PPECB completed and signed off aProject Definition Report. The remaining activities include:- Documentation of a scientific justification for deviation

from current 2% sampling procedure.- Developing quality assurance methods for a risk based

system.

Emerging Issues / Challenges: Scientific justification fordeviation from 2% sample as requested by DAFF.Current phytosanitary risks with regard to Citrus Black Spotand False Codling Moth are capable of having impact onprogress.

Continueddata gathering

to enhancerisk database.

The PPECB concluded a risk profiling exercise detailed perinspection point, incorporating product and processesrisk.

Documentprocesses,proceduresand resultsand obtainsign-off ofcompleted

work.

This activity is ongoing, delayed due to DAFF non-committal participation in the project. Conclusion of thedata-sanitising exercise also impacted on the sign-off.

Impact analysison existingBP’s andfinances.

Investigation into functionality of Navision ERP systemcompleted. Latest release of Navision assessed to bealmost 99% of ERP required for PPECB. Activity ongoingas long as the decision has not yet been made onimplementation of the latest Navision Version.

Emerging Issues / Challenges: Re-engineeringcustomised modules is possibly going to be a challengeduring the implementation of the new Release and mightrequire huge BPR and Change Management intervention.

Increasedeffectivenessof our current

statutoryresponsibilities.

Increasedcompliance to

food safetystandards.

Inputs torevised foodsafety andstandards

requirements.

The PPECB actively participated in the Technical WorkingGroup of the Food Safety Forum (FSF) to develop thestandards and requirements for the food safety standard.

The PPECB participated in developing response to externalRapid Alert System for Food and Feed (RASFF). Theoperational audit by DAFF to confirm the implementationof suggested corrective actions on external RASFF audit isstill outstanding.

Emerging Issues / Challenges: Decrease in available SAFood Safety Audits due to policy changes.


StrategicObjective

KeyPerformance

Indicators


Year 1: 2009/2010


PerformanceProgress

Increasedeffectivenessof our current

statutoryresponsibilities.

PPECB participated in setting up an implementation planfor Regulation R707 : ”Standards regarding thehygiene and food safety of regulated agriculturalproducts of plant origin destined for export”. Thedocument was forwarded to the Food Safety Forum fordiscussion and endorsement. The aim of the document isto inform the revision of Regulation R707 and thedrafting of a Food Safety Regulation by DAFF. StandardOperating Procedures for Microbiological Testing of Teawere also developed. Implementation is yet to beconfirmed by FSQA.

Increasedcompliance to

food safetystandards.

Drafting ofregulation incollaborationwith DAFF.

Enhancerequirementsto support thecredibility ofthe ExportCertificate.

The PPECB actively participated in the SteeringCommittee convened by DAFF for the development of theFBO Database. The FBO Database is scheduled to beconcluded during 2010.

Conclusion ofFBO Database

Project.

FBO Service Level Agreement between PPECB and DAFFwas finalised within the Steering Committee and PPECBManagement, currently with DAFF Management for finalsign-off.

Signed SLAwith DAFF.

Following an increasing number of aflatoxin interceptionson groundnuts, new measures for control of mycotoxinsat export level were proposed to the DAFF. These controlsincluded 2 pilots initiated during the 2009 groundnutseason, one being the Critical Control Point (CCP) atprocedure stacks before the actual processing and thesecond CCP at the point of export in Durban. DAFFincluded these measures as part of the decision toindefinitely suspend Official Food Safety Audits (R707standard) on groundnut farms.

Guidelines on the responsible management of mycotoxinswere also drafted by PPECB. The PPECB gave the first setof feedback to stakeholders in October at the GroundnutForum on the first phase of pilot. DAFF indications arethat the Mycotoxin SOP would continue to functionseparately from the applicable Standards andRequirements.

Engage DAFFto transform

StandardOperatingProcedures(SOP) for

mycotoxinsinto

Standards andRequirements.

PPECB completed SOP for mycotoxin sampling andtesting but were not considered by DAFF in an officialregulation format.

Collaborationwith DAFF ondrafting new

Standards andRequirements

formycotoxins.

The PPECB continues to evaluate ways in which it couldhelp enhance efficiency in the administration of MRL SOP.Plans are in place to make firm proposals to DAFF during2010.

Implementationof MRL

resource andupdating MRL

Database.

A study was done on the new imposed requirements(decree) from Indonesia. An implementation plan in thisregard was drafted and proposed to the DAFF forimplementation.

Implementationof actionsdecided atFood Safety

RiskWorkshops.


StrategicObjective

KeyPerformance

Indicators


Year 1: 2009/2010


PerformanceProgress

This work is integral to the EDI Project and its completionis linked to the EDI Project.

Engage DAFFon electronicverification ofinformation

onaddendumsand UniquePallet ID’s.

The PPECB completed Phase 1 of the EDI Project whichincluded the standardisation of codes, development ofbusiness rules and business process review for exportcertification process. Phase 2, which includes piloting theUnique Pallet ID, to ensure that the inspection volumesmatches the export volumes was completed withassistance from SATGI and 2 “big” table grape exporters.The test combined issuance of a mock export certificate.Other business rules were also tested or validated beforea mock certificate could be issued.

Pilot use ofUnique Pallet

ID during2009 citrusseason withidentifiedclients.

Pilot for the Stone Fruit deferred to full EDIimplementation.

Pilot palletID’s and

ElectronicExport

Certificationfor Stone Fruit

This activity was completed, however a response fromDAFF is awaited on the way forward.

Handover ofdraft

regulationsand standards

andrequirements

to DAFF.

ReviewedPolicy on food

safety andproductquality.

Concludeinputs to the

review ofregulationsgoverningCold Chainactivities.

Engagement with stakeholders could not be initiated dueto no response from DAFF on Submitter Regulations andS&Rs.

Engagestakeholders.

The PPECB partnered with the Cool Chain Association, toconduct a series of trials to identify GAPS in the ColdChain. Initial results indicated certain GAPS that require tobe addressed through regulation. The evaluationincluded:- Analysis of cold stores on Own Check Systems,

electronic temperature reporting capabilities, status of trained or dedicated supervisors.

- Compiling training syllabus and checklist capabilities.- Observing loading points (Eastern Cape) to launch audit

method in April 2010 in SLA format.

DetermineGAPS

betweencurrent Cold

Chaininspection

methodologyand CCQI.

Evaluate anaudit

approachwithin theCold Chain

environment.

Local evaluation completed and documented. Identifiedpilot loading points (Eastern Cape) on course to launchaudit method in April 2010 in SLA format.

Evaluation ofCCQI

principles inlocal and

overseas leg.


StrategicObjective

KeyPerformance

Indicators


Year 1: 2009/2010


PerformanceProgress

Internalcapacity

building, forknowledgeand skillstransfer.

The PPECB implemented Regional Training Programmesby assigning Chief Inspectors the overall responsibility toensure adequately trained technical staff. Updating ofindividual profiles continue. Permanent HarmonizationSpecialists (Subject Matter Experts) and trainedfacilitators were appointed. Certificates are awaitedfrom AgriSeta. Harmonization Program hosted 3accelerated skills transfer interventions during thereview period; these are on pome fruit, stone fruitand table grapes.

Establish anin-servicetraining

programmeas a feederprogram to

limit riskexposure and

reduce thereliance on

contract staffby 50%.

Ensureadequatenumber ofqualifiedtraining

facilitators perregion.

The PPECB trained all Harmonization Specialists asqualified facilitators. Training roles were clarified amongstSpecialists. Performance contracts reflecting specifictraining roles on internal central training (acceleratedskills transfer) and support towards external training(PPECB Training Academy) was aligned. HarmonizationSpecialists were included in accelerated skills transferintervention for ensuring consistency in the depth andlevel of training applicable.

Emerging Issues / Challenges: New internationalinspector competency norms.

Definetraining roles,

assignresponsibilityand updateperformancecontracts ofdesignated

trainers.

The PPECB published articles through Indaba CorporateNewsletter and conducted a number of presentations tocllients individually or through Client and StakeholderForums. These include 3 articles published during thereview period, 1 on Port Auditing and 2 on PPECBpackhouse demonstrations aimed at setting standards.The PPECB approved a corporate communicationsstrategy to guide communication of the HarmonizationProgramme both internally and externally.

Communicationplan to launch

theHarmonizationProgramme

withinindustrymedia.

HarmonizationProgramme to

ensureconsistent

application ofstandards.

Review andupdate

Harmonizationdeliverableswith new

strategies andemergingissues inmacro

environment.

Management meetings were used as communicationplatforms. Presentation of the Harmonization strategywas made at the Technical Expert Seminar (TES)facilitating understanding of the strategy amongst seniortechnical personnel. Regional visits were also conductedto facilitate understanding of strategic objectives amongstall operational personnel.

Communicationstrategy toinform andenhance

understandingthroughout

PPECB.

Roles and responsibilities were assigned to all members ofthe Harmonization Programme as planned.

Assign rolesand

responsibilities.

Introductionof PortActivity

Auditing.

Activity successful as per report in “Port Auditing” reportabove.

Establish andimplementfeedback

loop.

Started as planned and ongoing programme.Link commun-ication and

process flowto inland

activities forimprovement.Inject measuresfor consistencyinto internal

audit.


StrategicObjective

KeyPerformance

Indicators


Year 1: 2009/2010


PerformanceProgress

Port Auditing was implemented in the port of Durban andsurrounding cold stores handling citrus products during themonth of May 2009, with huge success. Feedback toinspection operations was established and quality reportswere found to be invaluable by technical inland staff.130 Consignments were “spot checked” in Durban duringthis period. The process was also introduced in PortElizabeth, albeit sporadically. A troubleshooting concept wastested further, with a complete new model to be introducedduring the table grape export season. All these efforts wereaimed at consistency. Specialists’ findings in port werereported to line structures on an ongoing basis including, inmany instances, risks identified for correction. Structurecreated for specialists’ findings were incorporated in regionaloperational risk registers. Consistency measures weresmooth, databank supportive and evident of these activitieson citrus and grapes. The activity was rolled out to stone andpome fruit during the third and fourth quarters respectively.Cold Chain Harmonization activities also took off during theperiod under review, on 5 of the 14 elements of Cold Chaindisciplines at this stage. New competency frameworkdeveloped for 6 Cold Chain disciplines.

Introducequality controlauditing in all

ports.

A conceptual framework for the workshop wascompleted and a project plan approved by ExecutiveCommittee. The conceptual was broadened to include allcountries in Africa trading in fresh fruit and vegetables.Agreement was reached to collaborate with UNECE as apartner. MOU with UNECE was agreed to and signed.

Develop aconceptualframework

for aworkshop forHarmonisationof Standards

for SADCCountries.

Harmonizationof product

qualitystandards in

Africa.

PPECB attended the International HarmonizationMeeting, hosted by the United Nations EconomicCommission for Europe (UNECE) in Kenya, wherecontacts were made with Kenyan Plant HealthInspectorate Service (KEPHIS). Contacts were also madewith representatives from Morocco during attendance ofthe 27th International Meeting for Inspectorates in Bonn,Germany.

Identify andbuild

relationshipswith other

Africaninspectoratesand relevantdestinationcountries.

The PPECB investigated and developed a web-basedonline debtor registration system. Development of thissystem was split into 2 phases, with Phase 1 consisting ofregistration and migration of data and Phase 2 consistingof accessing of account information for new and existingcustomers via the website. Phase 1 was completed duringthe period under review whilst Phase 2 is scheduled to becompleted in 2010/11.

Create anonline debtors

registrationsystem.

Debtorsregistrationsystem withonline credit

controlfacilities.

Effective andefficient

debtors webdriven

managementsystem.

This work is ongoing but is linked to the now completedonline debtors’ registration system.

Link onlineregistration to

creditinformation.

This work was completed. Electronic statements andinvoices are being sent to clients.

Electronicstatements

and invoicescreated via

the BI portal.


StrategicObjective

KeyPerformance

Indicators


Year 1: 2009/2010


PerformanceProgress

Confidence inbusiness and

financialsystems of the

PPECB.

Cross Functional Audits, including BMS audits, wereconducted in various areas covering both Inspection andCold Chain services in regions Worcester, Paarl, Durban,Citrusdal, Port Elizabeth, Tzaneen, Grabouw andGauteng. Internal Audit and BMS audit plans wereintegrated into a 3 year risk-based audit plan.The audit plan was approved by EXCO and the AuditCommittee. 95% of the 2009/10 internal audits plan wascompleted within the agreed plan.

Emerging Issues / Challenges: Need for continuousreview of business processes is a necessity.

Integratefinancial

audits withBMS audits.

ConductCross

Functional.

DAFF conducted an independent audit and all findingswere closed out by the end of December 2009. As aresult of this, Standardised Checklists based on all thePPECB SOPs, Procedures and Work Instructions weredeveloped before the beginning of the first cycle of auditsand scoring is based on the severity of findings. A qualityreview on internal audit was also completed by KPMG inJune 2009. No significant findings were raised with only 3observations noted. Recommendations for improvementwere implemented in July 2009.

Independentquality review

on auditscompleted.

An internal audit scorecard to monitor performance wasimplemented in October 2009.

Develop andimplement a

auditscorecard.

EXCO approved the CCQI project plan. First trials wereconducted on soft citrus and the first report completed.Trials were repeated during the table grapes season.

Emerging Issues / Challenges: Lack of investigativeresults on the overseas leg of the trials in order to confirmend-to-end implications of CCQI.

Design, planand

implementCCQI project,

whichidentifies and

closes thecool chain

GAPS throughan audit-

basedapproach.

Improve thecool chain

qualitythrough

identifyingand bridgingthe GAPS in

the coolchain.

IncreaseInvestment inR&D initiatives

within ColdChain.

2.Support the

exportcompetitive-

ness ofSouth

Africa’sPerishables

ProductsIndustries.

The PPECB resolved that the HAF technology hasbeen completely developed, refined, and in use byindustries like stone fruits and some vegetablestakeholders. It has been proven to be functionaltechnology and no more trials were necessary.Results had been comprehensively documentedand further trials would be done on request.

Research trialson differentcommoditiesto continue.

Improvecontainerairflow.

Research on improved packaging on-going in partnershipwith industry players including exploring new or otheruseful engineering techniques.

Engage withthe various

stakeholdersto establishpotentialGAPS and

opportunitiesfor R&Dactivities.

Improvepackagingdesigning.


StrategicObjective

KeyPerformance

Indicators


Year 1: 2009/2010


PerformanceProgress

New plastic pallet concept introduced to evaluate properairflow, tested for strength and durability. Comparativetrials carried out between a 7, 9, and 11 slat pallet basesand 1 plastic pallet base. Evaluation still ongoing.

Improvestandards for

pallets.

Draftstandard

specificationsfor fruitpallet.

Increasepartnerships

initiatives with“donor”

developmentinstitutions.

Activity proving difficult to achieve. Memorandum ofUnderstanding entered into with NAMC resulting intraining conducted in Vhembe GlobalGAP. 67 trained,9 audited, 4 certified.

Conduct atleast 2

“donor”development

fundedprojects in theSADC region.

Growdevelopmentinitiatives of

PPECB.

Roll out thePPECB

TrainingAcademy.

PPECB Training Academy established, steered by aSteering Committee. 4 Categories of training agreed toconstitute the offering during start-up. Course materialdevelopment in the progress. 16 Candidates from theJohannesburg Fresh Produce Market (JFPM) trained in linewith the MOU of the 2 institutions as a pilot project forTraining Academy.

Emerging Issues / Challenges: Training materialsdevelopment capacity demands.

Ensureaccreditation

of coursematerials.

Externalcapacity

building, forknowledgeand skillstransfer.

Minimal activity undertaken.Marketing ofconcept to

stakeholdersto continue.

Minimal activity undertaken.Complianceto trainingcalendar.

Minimal activity undertaken.Introduce theAcademy to

relevantindustries.

Minimal activity undertaken. Progress limited to work atJFPM.

Conductaccreditedcourses inareas offocus.

Minimal activity undertaken.AppointProject

Coordinator.

- PPECB Certifications maintained accreditation toISO 17021 and ISO guide 65 after SANAS completed their audit.

- The PPECB Laboratory maintained its ISO 17025 accreditation.

- HACCP Witness Audit was also completed.

Emerging Issues / Challenges: SANAS capacity to doWitness Audits. Draft Organic Standard under APS Actmight not be accepted by SANAS for accreditation.

Increase thescope of

accreditationsto enter other

markets.

Maintainaccreditations.

Increaseservices in

support of thecompetitive-

ness of the SAPerishableIndustries.


StrategicObjective

KeyPerformance

Indicators


Year 1: 2009/2010


PerformanceProgress

The PPECB completed the first unaccredited ISO 22 000audits Namibia. Stage 1 ISO 22000 certification wascompleted for Lakeland foods.

Achieve ISO22000 and

organiccertification.

Increase thescope of

accreditationsto enter other

markets.

Increaseservices in

support of thecompetitive-

ness of the SAPerishableIndustries.

Customer feedback has maintained a 90% positivefeedback. Key issues being pricing, audit timing andtechnical interpretation.

PPECB maintained a 100% positive customer feedback atthe PPECB Laboratory, indicating that the analyticallaboratory service quality as either excellent or good.

New laboratory customers added in the commercialbusiness segment, have increased the total laboratorycustomer numbers by 5%.

Maintaincustomerloyalty.

- 6 Staff members from Certification Services completed the GlobalGAP “Train the Trainer” Workshop.

- 6 Auditors passed the GlobalGAP online exam.- 1 Auditor was approved for BRC version 5.- The Scheme Manager attended the GlobalGAP Scheme

Managers Workshop in Amsterdam.- 1 Certifications staff member completed a Btech Degree

in Food Technology.- PPECB LAB successfully completed monthly laboratory

internal audits, as per ISO 17025 quality manual protocols. The LAB also updated the mycotoxin equipment software protocols and technical procedures,to maximize analytical efficiency. Updated methods and trained analysts on additional laboratory HPLC mycotoxin analytical methods for complex food and feed samples were completed.

Build capacityand

competencyof skilled

personnel.

GC equipment purchased and installation partiallycompleted.

Developing ofGC

techniquesand partial

implementation.

Concept note developed during 2008/09 reporting periodalready but feedback from DAFF still awaited. Newengagement with National Agricultural Marketing Councilaims to revive SA GAP vs. International GAPbenchmarking initiative during 2010.

Engage DAFFon the policy

and themotivation forbenchmarking

of SA GAPinternationally.

Benchmarkingof SA GAP

againstinternationalgood practice

on GAP.

BenchmarkedSA GAPagainst

internationalrecognised

goodpractices on

GAP.

An ISO 17020 multidisciplinary project team wasestablished with the first meeting held in April 2009.Standard training was provided to the project team inJuly 2009, and Chief Inspector (signatory) training wasdone during October 2009.

Establish aproject team.

Evaluate Org.capacity to beISO accredited

InspectionsInstitution inorder to instill

worldwideconfidence inSouth African

perishableproducts.

InstitutionalisePPECB’sinternal

processesthrough ISOaccreditation

as SouthAfrica’sCertified

InspectionBody.

Quality Manual completed and presented to SANAS atthe end of March 2010. First assessment planned towardsthe end of October 2010. Compilation of manual forCold Chain on track and in progress.

Compilationof QualityManual.


StrategicObjective

KeyPerformance

Indicators


Year 1: 2009/2010


PerformanceProgress

Activity completed.ConductChief

Inspector,Service

Manager andCoordinatortraining onstandard.

Pre-assessment by SANAS during July 2010 to beinvestigated with SANAS.

First SANASassessment.

Management accounts with specific information were inthe process of being finalised for implementation forDevelopment Services. Training Projects Company was setup in Navision and invoiced its first training billing to theJohannesburg Market. Application approved by NationalTreasury for an additional bank account for the PPECBTraining Academy. Business Plan for VAS to be based onclear measurements for performance for developmentinitiatives.

Develop andimplementsystems,

proceduresand

measurementsfor

developmentinitiatives.

Effectivemanagement

andaccounting

fordevelopment

initiatives.

Invoicing system of Certifications was looked at in orderto report back on service types. Measurement indicatorsrequired by Certification Services were identified andimplemented in Navision. Financial performance efficiencycan now be determined via Management Accounts. MAP:Measurement indicators required by MAP have beenidentified and defined. Implementation in Navisiontogether with effective financial performance efficiencyreporting will be in place by 1 April 2010.

Measurefinancial

performanceof

certificationsper servicetype and

client.

Work to rebrand the website, intranet and the web-portalwas started and will be completed by 2011. The PPECBdeveloped and improved tools to ensure that it deliversaccurate information and meets its Service LevelAgreements. Several measurements were developed tomonitor and control the capturing process in order toensure that SLA agreement targets are achieved. Theseincluded a measurement scorecard and proceduresimplemented to ensure accurate reporting of information.These procedures and measurements were also used toreport discrepancies in information when it happens. BIassessment analysis was completed to find the correcttool required to ensure accurate information. The datawarehouse is now automatically updated by PPECB’scaptured and the information service provider’selectronically received information after necessaryverifications, completeness checks and validations.

Implementtools,

proceduresand a

measurementscorecard to

ensureaccurate

reporting ofinformation.

Deliverinformationthat meetaccuracy

requirementsas definedwithin the

SLA’s.

Achievingaccurate SLAbusiness and

statisticsinformation.

3.Strengthen

PPECB’scapacity as a

crediblesource ofstrategic

informationfor servingindustries

andstakeholders.

The PPECB Business Information Portal was completedand launched as per targeted date. Business ContinuousImprovements Initiatives also in progress to find betterways to use current infrastructure to achieve greaterresults as well as to develop efficiencies in the datawarehouse system.

Emerging Issues / Challenges: Skills shortages withinBusiness Intelligence environment.

Create PPECBInformationWeb-Portal.


StrategicObjective

KeyPerformance

Indicators


Year 1: 2009/2010


PerformanceProgress

DAFF Policyon “FoodSafety and

ProductQuality”.

The PPECB participated in pome and stone fruit industryquality standards setting for the local markets. Cold Chainservices are investigating all relevant Acts and BestOperating Practices with a view to have them analysedand to table a report by March 2010. The main goal is toidentify GAPS and/or opportunities. However, Policydetermination on Food Safety for local market and therole of PPECB is still awaited from Government.

Emerging Issues / Challenges: Promulgation of theConsumer Protection Act.

Review of theDAFF “FoodSafety and

ProductQuality”Policy.

Contribute inthe review

and/ordevelopment

of country“Food Safetyand Product

Quality”Policy.

4.Support

Governmentin ensuringconfidencein qualityassuranceand food

safetysystems for

localperishables

productsmarkets.

Engagement with DAFF on policy development isongoing. The PPECB started a process to evaluatehandling process and transport requirements on localscene including investigating local procedures and liaisingwith local companies. Capacity building at JohannesburgMarket was also intended to contribute towardscapacitating stakeholders on the local market. StatutoryOps planned to preliminary conduct data-gathering abouthandling process and transport requirements on localmarket.

Developmentof Minimum

CountryCapacity to

monitor localperishables

market.

Contribute inthe

assessmentand

establishmentof

“minimum”capacity to

monitor localperishables

market.

DAFF Policyon “FoodSafety and

ProductQuality”.

The PPECB’s engagement with DAFF on Policydevelopment is ongoing. Cold Chain services continuedto investigate relevant Acts and Best Operating Practiceswith a view to have them analysed and table a report byMarch 2010. The main goal is to identify GAPS and/oropportunities. Policy determination on Food Safety forand the role of PPECB is however still awaited fromGovernment.

Emerging Issues / Challenges: Promulgation of theConsumer Protection Act.

Review of theDAFF “FoodSafety and

ProductQuality”Policy.

Contribute inthe review

and/ordevelopment

of DAFF“Food Safetyand Product

Quality”Policy.

5.Support

Governmentin buildingsystems to

ensurecompliancewith South

Africanquality andfood-safetystandards

for importedperishablesproducts.


This year's results are characterised by good volumes exported,

strong income growth and positive cash generation.

The key results are:

Financial PerformancePPECB’s income for the 2010 Financial Year increased by

6.9% to R152,6 million (2009: R142,7 million). The increase

was achieved despite the adverse impact of the global

economic downturn experienced in South Africa’s exports.

The PPECB’s primary sources of income are the fees and

levies received for statutory services rendered to the perishable

product industries. A total of R130,5 million (2008: R121,2

million) has been raised from this source compared to the

budget of R120,1 million. The increase of R9,3 million (7%)

can be attributed to the annual inflationary adjustment in

fees and levies as exported volumes have moved sideways

for most products.

Income received from delivering value added services to our

clients totalled to R11,7 million (2008: R10,7 million), which

is an improvement of R1,9 million on the budget of

R9,8 million. These services include certifications and

laboratory analysis. Other income includes income received

for delivering training and development of R1,9 million

(2009: R1,6 million) and interest received of R5,3 million

(2009: R6,2 million).

The uncertain economic environment required the PPECB to

be dynamically managed with the business focusing on

operational efficiencies and cash flow management in order

to maintain financial stability. A robust cost awareness and

management intervention at the onset of the economic

crisis resulted in a reduction of R11,8 million (9%) in

total expenditure compared to budgeted expenditure,

notwithstanding high increases in activity costs such as fuel,

accommodation and technical equipment. Consequently

operating expenditure before depreciation increased by 5%

to R131 million.

Depreciation and amortisation of assets for the year increased

from R836 thousand to R1,9 million. The increase is due to

the replacement of critical information technology equipment

in 2009.

No provision for taxation has been made as the Board is not

subject to normal tax.

The increase in revenue of R7,7 million together with the

reduction in expenditure of R11,8 million against budget

resulted in a retained surplus for the year of R19,5 million.

This surplus is transferred to the General Reserve Account

in terms of the PPECB Act.

Financial PositionThe balance sheet reflects a strong financial position in that:

The value of PPECB’s total assets is R121,9 million. This is

represented by non-current assets of R15,7 million and

current assets of R106,2 million. This is an increase of

R12,9 million if compared against the previous year.

Non-current assets decreased by R1 million to R15,7 million

which is mainly due to assets being written down to their

residual values.

chief financial officerJohan Schwiebus

report by the

Income increased by 6,9% on budget to reach

R152,6 million.

Expenses increased by 6,1% on budget.

Surplus is R19,5 million.

Cash equivalents and investments held to maturity

improved by R15,1 million.

Cash reserves amount to R23,2 million

(2009 : R25,1 million).

Accounts receivable amount to R19,6 million

(2009 : R20,8 million).

Current liabilities to R24,4 million (2009 : R31 million).

Current and liquidity ratios - 4 times (2009 : 3 times).


Financial assets, cash and equivalents increase by R15,1

million to R86,7 million. The PPECB has adequate cash

reserves to meet its future commitments. PPECB holds

deposits at banks with Fitch ratings of AA and higher.

Accounts receivables of R19,6 million decreased by R1,3

million (6%) on last year’s R20,8 million. This reduction was

achieved through a focused attention on outstanding debt.

The total amount outstanding for longer than 60 days

decreased from R585 207 in 2009 to R46 833 in 2010. A

provision of R218 466, or 1% of total debtors, has been

made for irrecoverable debt.

Trade payables of R23,3 million are R1,7 million higher than

the previous year. The increase is largely due to accrued

expenses on the replacement of field and laboratory

equipment at the end of the financial year.

The realised surplus increased the reserve funds by R19,5

million to R95,5 million that meets PPECB’s reserve plan.

These reserves are accumulated to fund shortfalls during

times of economic and seasonal downturns, realisation of

uninsured risks as well as to provide for future capital outlays

in replacing laboratory, technical and information technology

equipment.

Cash FlowsCash and equivalents decreased by R2,1 million to R23,1

million, mainly due to increased investments. Operating

activities generated cash of R16 million as compared to

R21 million in the previous year. Significant focus on the

collection of outstanding debt resulted in an inflow of an

additional R1,2 million.

Capital expenditure for the year amounted to R1,1 million

(2009: R4,1 million). Last year significant investments were

made to replace critical information technology and laboratory

equipment. The decrease in capital expenditure compared

to the prior year can be attributed to the reprioritisation of

capital projects due to the possible impact of the recession

on exports and PPECB’s cash flow. Capital investments are

planned for replacing and expanding critical information

technology as well as laboratory equipment. The capital

replacement and investment plan is aimed at supporting

PPECB’s strategic plan.

Surplus cash of R17,2 million has been invested in interest-

bearing investments held to maturity.

Credit Risk on DebtorsAlthough there is an increased risk of default by trade debtors

in the current economic climate, to date we have not

experienced any adverse consequences in this regard. In

order to manage this risk as effectively as possible, we have

tightened our credit criteria, particularly in those areas where

we experience default in payments.

Debtor balances will continue to be closely monitored and

managed going forward, both from the perspective of

minimising the risk of bad debts and maximising collections.

ConclusionThere have been no events after the reporting period data

that would have a material impact on reported results.

We expect that the global and local markets will continue

to show signs of slow recovery. Consequently, it is forecasted

a somewhat strengthened demand for South African

perishable products.

PPECB will continue to explore opportunities to add public

value to its stakeholders but balance it with prudent and

conservative measures to maintain financial stability.

We would like to thank all of the financial and administrative

staff in PPECB for their sterling efforts in the last year and,

in particular, for all their hard work in delivering these financial

results and this annual report. Their commitment and ongoing

support has enabled us to consistently deliver quality financial

information to our stakeholders.


sustainabilityreport

Ethics and Values

The PPECB Brand

Accountability and Governance

Measurement Framework

The Green Uhambo Project

Overview of Human Resources

Technology

Crime and Related Activities

Caring for the Communities

35

36

36

37

37

39

42

43

43

contents


PPECB is committed to compliance with good corporate governance practices and strives for improvement in its practices in

order to build on the organisation’s long term sustainability.

PPECB’s performance is inextricably linked to its corporate governance practice and it accounts to its stakeholders for sustainable

decision making processes, which integrate principles of economic, prosperity, social equity and environmental quality.

We are driving a culture of sustainability by integrating sustainable management into our business strategies, accounting,

performance management and reporting processes.

ethics and values

EthicsThe PPECB has taken a stance and reaffirmed its commitment

to good corporate governance. In a bid to promote ethical

behaviour, which is the bedrock of trust, we recently launched

a campaign aimed at raising awareness of the Fraud and

Ethics Hotline. PPECB appeals to all stakeholders to utilise the

Ethics Hotline to report any incidents of fraud, corruption or

unethical practices. Silent observers erode the values we wish

to uphold.

The PPECB constantly encourages all employees to behave

in a manner consistent with what is right or moral.

ValuesValues form the foundation for everything that happens

within the PPECB. The PPECB has a set of values which it

subscribes to, with the expectation that the leaders within

the organization will model these values and employees will

buy into the value system prescribed.

The PPECB values are a vehicle for achieving on the mission

and vision of the company. The PPECB strives to hiring people

who share the organization’s values.

The value proposition is based around the idea of

strengthening market access and to developing confidence

in South African products, South African systems and South

African people.

PPECB subscribes to the following values:

Professionalism

It is the duty of the PPECB to perform to the highest

standards of professionalism. We are determined to

deliver outstanding quality so that we have long

lasting relationships with our clients.

Accountability

We are obliged to bear the consequences for failure

to perform as expected.

Passion

We are dedicated and have the willingness to take

on challenges and embrace them. We have a “can

do” attitude and believe in making possibility a reality.

Integrity

We are committed to integrity in all that we do,

always, everywhere - behaving in a consistent manner

towards our stakeholders.

Confidence

The PPECB strives in ensuring that it instills world-

wide confidence in South African perishable products

and its people.


PPECB acts as an independent service provider of quality

certification and Cold Chain management services for

producers and exporters of perishable food products. Its

services therefore reduce risk for the producers and exporters

of these products.

Certification ServicesPPECB’s certification service is accredited by the South African

National Accreditation System (SANAS). The service delivers

HACCP, food and packaging and GlobalG.A.P. certifications.

The certification body also delivers TN (Tesco Nurture), LEAF,

360 Quality Audits and second party audits to clients in the

fresh produce environment as well as the general food and

packaging sector.

PPECB provides compliance certificates (third party sampling

services) for the export general food sector.

the ppecb brand

accountability and governance

Board GovernanceExecuting the fiduciary duties of the Board of Directors in

directing PPECB business in the pursuit of its strategic

objectives and mandates.

Executive ManagementExecuting and managing the implementation of the strategic

objectives and mandates in a proper and lawful way.

Risk ManagementDisclosing and regularly updating the risk management

framework which informs the risk management process and

execution.

Legal and Compliance ManagementPPECB acknowledges the laws, rules and mandate governing

PPECB and discloses its compliance to its stakeholders.

Assurance ManagementGiving assurance through disclosure of its internal and

external control environment.

Business IntelligenceSharing information on PPECB’s business processes in a

credible and consistent way to assist in collecting and analysing

business information, being mindful of the legal parameters

and framework within which the business operates.

Ethical CultureConducting the business by applying the values and code

of ethical conduct in everything we do.

SustainabilityDeveloping a sustainable framework and reporting on PPECB’s

approach in such a way that sustainability issues are integrated

into business operations.

Communication and ReportingPPECB’s business performance is reported in a clear and

transparent way on a monthly, quarterly and annual basis.

Stakeholder EngagementPPECB acknowledges its stakeholders and discloses all relevant

information to seek mutual and beneficial relationships.

TransformationHighlighting the actions required to optimally deliver on its

strategic initiatives.


These strategic themes were carefully selected and provide the outline for sustainable reporting, as well as strategic initiatives.

measurement framework

1. Enhance the credibility

of South African Export

Certificate.

2. Support the export

competitiveness of South

Africa’s Perishable Products

Industries.

3. Strengthen PPECB’s

capacity as a credible

source of Strategic

information for serving

Industries and

Stakeholders.4. Support

Government in

ensuring confidence in

quality assurance and

food safety systems for

local perishable products

markets.

5. Support Government

in building systems to

ensure compliance with

South African quality and

food safety standards for

imported perishable

products.

the green uhambo project

Team members are to investigate and report on saving

initiatives of their departments.

PPECB solutions are to be communicated to HQ and

the Regions as a directive.

The project should form part of the sustainability report

in the annual report.

An external audit of our carbon footprint.

An awareness campaign on improving our green

contribution.

Fact finding (Km, electricity, miles flown and paper

usage).

Identify the baseline on 2009 statistics.

Design of the template forms, on which Regions must

report.

Planned: Regular audits – as part of BMS system.

Identify external body – should we decide to donate

money on green project of choice, and in doing so

contribute towards our carbon footprint.

ObjectivesTo contribute to greening, limiting PPECB’s carbon footprint and in doing so support actions to enhance the environment and

to be seen as a partner in food security in this long term journey (UHAMBO) that lies ahead.

The following actions were undertaken:Actions


human resourcesoverview of

We Value our PeopleAt PPECB we believe that the success in the implementation

of our business strategy lies in the hands of our employees.

We have revised our People Strategy to support business

priorities. Key in the strategy is empowering our people

through training and development, and measured through

our intensive performance management system.

Investment in People DevelopmentDespite tough economic climate, spend on people

development was in the region of R3 322 316 which

constitutes 3, 45 % of the salary bill.

Focus has been on an integrated approach to human capital

development based on our adopted organisational

development framework which advocates delivery on 3 main

streams namely; professional development, skills and

capacity building and organisational effectiveness.

Leadership Development

Leadership development has remained a main focus for

creating people capacity with 6 technical employees being

enrolled for the New Managers Development Programme

with the Stellenbosch Business School.

A formal assessment of management competencies for

specific middle management levels was initiated. This process

will assure the organisation a targeted and needs-driven

management development intervention tailored to individual

competency level. The effect of this talent management

and development approach will be measured as the roll out

milestones are reached.

Assisted Study Scheme

In recognition of the role played by further education in skills

development as its contribution towards the success and

sustainability of the business and in order to assist staff to

achieve their current and future personal development goals,

we have continued providing employees with study assistance.

It covers all National Qualifications Framework aligned

training and development that results in recognized formal

qualifications in the following categories:

Adult Basic Education and Training.

General Education and Training.

Further Education and Training.

Higher Education and Training.

One of the beneficiaries of this programme is an employee

involved in PhD studies in the agri-science.

Skills and Capacity Building

Job specific development need, aimed at addressing skills,

knowledge and attributes has received equal attention by

alignment of these to the Workplace Skills Plan. This has

had positive spin-offs on capacity building and skills

development. This has positioned us better for SETA grants

which will be ploughed back in people development initiatives.


Agri-Export Technologist Programme

PPECB still remains committed, with its distinctly strong

position and depth of technical knowledge and experience,

to providing previously disadvantaged learners who have a

3 year National Diploma in an Agricultural Field, opportunity

to develop skills in the agri-export industry through the

collaborative arrangement with DAFF.

101 Learners have been enrolled on the programme since

its inception. 78, 21 % have been employed in the agricultural

sector. PPECB is committed to this programme for the ensuing

period.

Creating an Enabling EnvironmentStaff Engagement

In order to keep employees fully engaged, structures and

processes have been enhanced by the formalisation of

these through staff engagement framework. As a new

initiative the framework prioritises communication between

PPECB stakeholders by constituting the Development and

Transformation Committee, briefs from the office of the

CEO, Technical Experts BI, Annual Symposium and Talk to

the CEO Email Facility with 48 hour turnaround time.

Company-wide Dialogue Sessions were initiated. These

facilitated focus group sessions culminated in a report of

issues that needed addressing being presented to the

executive. Proper responses were provided. This process not

only helped clear the air but assisted in gauging the mood

within the organisation thus providing scientific pointers.

This will be followed by the perception survey in the ensuing

reporting period.

Transformation

We have not taken our eyes off building a diverse workforce

representative of the South African society, this being the

key driver for our Employment Equity Plan. Progress has been

recorded in the reporting period. While keeping an eye on

the numeric goals, organisational effectiveness relating to

transformation and inclusion, culture, climate and embedding

values will occupy our organisational development future

space.


Entrenching Employee WellnessBig strides have been made in entrenching employee wellness with the implementation of the Occupational Health and Safety

Policy and the Employee Wellness Policy. The epitome has been the appointment of a professional service provider

to oversee our Employee Wellness Programme.

Supporting Business Strategy Through Application of Best People PracticesOur Human Resources policies are being review continuously to address business needs and keep abreast of the latest

developments. Through a reputable independent Remuneration Consultant, we benchmark ourselves against the market and

ensure that the Board is apprised of the market movements and latest thinking in best human resources practices.

Our staff profile expressed as percentage of our permanent employees over a 3 year period is as follows:


Technology enables the PPECB to perform its core activities

as stipulated in the Agricultural Product Standards Act

(No. 119 of 1990), PPEC Act as well as the provision of

statistical information to the agricultural industry.

The IST Strategic Plan addresses the following objectives:

technology

Provide the necessary infrastructure with respect to,

technology stability, bandwidth speed, internet and

data security and availability at an optimal cost.

Maintain architecture solutions that are adaptable and

interoperable to achieve PPECB strategic objectives.

Leverage information technology investments to benefit

internal and external users.

Ensure the security of PPECB’s networks, data, portal

and IT equipment.

Monitor, measure, and manage the technology output

with respect to key performance indicators through

the new performance management systems.

Empower the IST staff members with necessary training

to enable them to be more effective and efficient.

This requires the ongoing provision of stable computing

platforms, ICT architectures, infrastructures and solutions.

In performing its duties of facilitating the enhancement of

ICT capabilities, PPECB continuously exploits the opportunities

and benefits offered by new and emerging technologies.

The environmental factors that impacts ICT in general include

moving towards environmentally sustainable computing IT

equipment. This will improve the environment by encouraging

the reduction in use of hazardous materials, will maximize

energy efficiency during the lifetime of the IT product, and

will promote the recyclability ad biodegradability of defunct

IT products and IT factory waste.

In terms of IT Governance the department’s objectives are

as follows:

Ensure delivery of effective information that is relevant

to the business as well as being delivered in a timely,

correct, consistent and usable manner.

Ensure efficient provision of information through

optimal, productive and economical use of resources

by ensuring optimal investment in, and the proper

management of critical IT resources such as applications,

information, infrastructure and people.

Ensure confidentiality and integrity by protecting

sensitive information from unauthorized disclosure.

Ensure availability and reliability by providing

appropriate information to management to operate

the organization and to exercise their fiduciary and

governance responsibilities, as well as ensuring

information is available when required by business

now and in the future.

Focus on ensuring the linkage of business and IT plans

and on aligning IT operations with enterprise operations.

Tracks and monitors strategy implementation of

IT initiatives, project completion, resource usage,

process performance and service delivery to achieve

business goals.

The following projects are focus areas for the nextFinancial Year:

Electronic Export Certification Project.

Microsoft Navision Upgrade.

Storage Area Networks and Virtualization Project.

Office Mobile Implementation Project.


PPECB reports a single case of fraud for the year under

review. The total value is less than R20 000 and involves a

single employee who has been disciplined and subsequently

dismissed from our employment.

We have maintained our stance of zero tolerance to crime

and adopted a proactive crime prevention approach. At

the start of 2010, the Fraud and Ethics Hotline awareness

crime and related activities

campaign was rolled out aimed at creating awareness amongst

all stakeholders and reinforcing our stance on crime.

The Hotline provides an anonymous source for employees,

service providers and the general public to report instances

of fraud, corruption and unethical behaviour. The line is

externally managed by KPMG and all reports flow to

the Board via the Risk Management Committee.

As a Corporate Citizen, the PPECB has the obligation to

invest in disadvantaged communities that it operates from.

The primary aim of PPECB’s Corporate Social Investment is

premised on addressing the developmental imperatives of

South Africa as a developing country.

Our contribution to civil society is evident in the support we

have offered to Babble and Krabble, a day care facility

running in one of the areas we operate in, in the Western

Cape. This is the beginning of many initiatives we will roll

out in the near future.

The PPECB is passionate about giving back to the communities

in which we operate.

caring forthe communities


operationalreport

Statutory Operations Overview

Value Added Services

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The focus of Statutory Operations for the period under review

was on business processes for efficacy, risk management

and consistency in execution. For this reason, optimisation

of operational processes, a review of current business

processes in lieu of ISO 17020 accreditation, as well as

harmonization were priorities of the Statutory Operations

strategic deliverables.

Focus was subsequently placed on the Harmonization

Programme supportive to the aforementioned objectives

and providing the mechanism for consistency, thereby

enhancing the credibility of the South African export

certification process recognized under the EU 1580

accreditation for third country exports to the EU. Key business

process engineering projects included inter alia the

“Alternative Sampling Methodology Project” which gained

some momentum with DAFF acknowledging the risk-based

sampling approach on quality inspections. Pilots are currently

underway to explore different sampling systems in 4 main

production regions to gather sufficient data for addressing

concerns around phytosanitary risk-based sampling.

Statutory Operations has strengthened the engagement with

DAFF and key partners in managing South Africa’s risks in

the export value chain. For this reason, international

interceptions for phytosanitary risks like Citrus Black Spot

(CBS) have placed a renewed focus on local controls and

the PPECB’s support towards influencing policy in this regard.

Following the adoption of a new CBS risk management

system mid citrus season in 2009, Statutory Operations staff

and supportive programmes should be applauded for the

manner in which they responded to this challenge.

Preventative measures inherent within the PPECB Cold Chain

delivery system, continued to support risk management

practices, prior or during shipments, thereby contributing

towards significant savings for logistical companies and

shipping lines. These measures involving the monitoring of

refrigeration and temperature management en route over

long distances contributed towards South African export

perishables reaching established and new markets in optimum

quality. The PPECB Cold Chain monitoring function, coupled

with the integrated management of cargo temperature

between PPECB, exporters and lines has lead to a unique

value added service, one of a kind in the world of shipping.

Concerning the financial results of this R116 million business

unit, cost recovery was favourable across all service types

however cost management practices posed continued

challenges bearing in mind a steady increase in inland

containerisation and door-to-door containerised shipping.

Despite these challenges, Statutory Operations managed to

post positive year-end financials and maintained our

contribution towards company overheads.

Programme: HarmonizationThe Harmonization Programme, with its key objective of

ensuring uniform interpretation and application of product

quality standards and Cold Chain protocols and processes

countrywide, finds itself within its second year since formal

adoption within the organization in 2008. The internationally

benchmarked harmonization system is now operational

within the main commodity products handled by the PPECB

at inspection level, and emerged in several disciplines of the

PPECB Cold Chain system during the review period. With

the objective of consistency and uniformity at the forefront,

a considerable effort is put into developing the skills and

knowledge of new technical personnel as a baseline for

ensuring consistency over time. The Harmonization

Programme therefore committed to no less than 4 internal

training interventions based on an accelerated skills transfer

programme charter uniquely developed for PPECB inspections.

statutory operations overview

The Harmonization Programme continued to develop its

systems on consistency with the introduction of Port Auditing

and Troubleshooting sporadically pursued at critical control

areas of the PPECB inspection system. In an endeavour to

alleviate risks associated with South African exports, this

component of the programme is aligned to the inspection

delivery stream and provided some prolific results in combating

non-compliance and possible inconsistency in the process.

The annual review of standards and intense discussions

amongst specialists, coupled with practical sessions for

standardising specialists, formed the basis of uniform

interpretation and application of technical instructions

internally. The 2009/10 year also marked the very first

harmonization session between PPECB and container depots,

thereby harmonizing the inspections of key defects eminent

on refer containers. The Harmonization Programme, with

its continued philosophy of learning and innovation, has

introduced no less than 8 PPECB packhouse demonstrations

in various table grape areas attempting to harmonize the

interpretation of quality standards applied at packhouse level

at the PPECB.

Concerning International Standards development, the PPECB

has attended at 3 international meetings on product quality

standards. These meetings included both workgroup and

plenary meetings of the OECD in Paris, the UNECE Specialised

Section for Fresh Fruit and Vegetables in Geneva, Switzerland

and the bi-annual attendance of the UK Harmonization

Meeting in Reading, London. The PPECB’s contribution

towards these meetings have been paramount considering

the deregulation of standards within the EU mid 2009,

re-affirming the importance of standards benchmarking

critical for market access. The attendance of these meetings

allowed also for sustaining networks with international policy

makers and import authorities in lieu of the EC 1580

accreditation for the South African inspection system

recognized within the EU.

The year under review highlighted the hosting of the inaugural

International Harmonization Workshop on Commercial

Quality Standards for African Countries. Partnering with the

UNECE and DAFF on this initiative, the PPECB delivered a

well organised event of international quality; at the forefront

of this workshop being the objectives of capacity building

of the emerging region within Southern Africa and the rest

of the continent, including capacitating the South African

small scale sector; a venture supported by the NAMC. This

workshop saw the attendance of 18 countries within the

continent of Africa as well as 22 small scale farmers within

various parts of the country across different product types.

To continue building on the objectives of this workshop, the

Harmonization Programme pursued further capacity building

initiatives amongst the same constituencies, involving the

same farmers during its first PPECB packhouse demonstrations

on citrus fruit product quality standards during 2010.

Programme: Inspection ServicesDuring the 2009/10 Financial Year, the certification desk

around the country processed 60 427 certificates, a significant

increase of 12,7% recorded on the previous fiscal. For the

duration of this period 2 780 certificates had errors and

reissued and 5 326 were cancelled due to various reasons.

These certificates represent just short of 200 million cartons

and in excess of 235 million kg’s of vegetables, flowers,

maize, red tea and other products.

PPECB has assisted DAFF in the drawing of audit samples to

determine the minimum residue levels on all export products

prior to export. During this period 10 121 samples were

analysed in the Pretoria and Stellenbosch laboratories of

DAFF. Corrective actions were applied where exceeding

occurred.

The PPECB inspection services managed to respond positively

to all activity points with the aid of the national resource

planning office. This office ensured that all activity points

were manned and that mandated functions were executed

successfully.

The Agricultural Export Technologist Programme (AETP)

proved hugely beneficial to the agricultural industry as well

as PPECB. PPECB has successfully recruited new inspectors

from this programme into permanent posts all around the

country. New inspector training and development continued

once employed permanently as per the recruitment of our

internal competency framework. Of the 22 students trained

in 2009/10, 8 were successfully employed within.

Programme: Cold Chain ServicesThe Cold Chain value stream members were primarily

involved with physical inspection of equipment, as well as


the monitoring of product temperatures and overseeing

stowage conditions in all modes and the supplying of export

data according to predetermined requirements. These

requirements were designed to conform to both Board’s

and accepted international standards and meeting local

conditions during storage and shipments.

Container loading supervision over vast distances, as part of

the so called door-to-door concepts, where PPECB had to

ensure that all criteria was met. This also includes the very

strict special shipment container programmes in and around

port areas to 17 different sterile destinations.

Reefer Vessel loading supervision in all ports included Maputo,

where Cold Chain services ensured that inspected products

were loaded according to strict guidelines into correctly

allocated decks. This also includes the highly specialised

shipments to Japan and the USA, whereby PPECB participated

and contributed to the successful arrivals to these very

stringent destinations.

Container inspections executed at all 23 depots nationally

resulted in 148 139 containers inspected with a rejection

rate of 7,51%.

A total of 487 cold stores were inspected in all PPECB regions

of which 3,9% did not conform to the standards and

requirements as published. PPECB also surveyed 188 vessels

before the loading of South African perishable products. Of

these vessels surveyed a notable 11,2% were found to be

unsuitable to carry SA perishable products. All activities

successfully mitigated risks in the supply chain for our clients,

shipping lines, cold store operators and South African fruit

in general.

For the duration of the 2009 season a total of 88 276

containers were exported on 1 858 vessels with 1,4%

unsuitable containers identified prior to loading and 0,68%

identified and rejected while in Transnet Terminal stacks.

The supervision of specialised Reefer Vessels loading took

place in all 4 ports. A total of 365 119 pallets were exported

on 201 shipments.

During the period under review a total of 2 577 manifests

were audited which equates to 88 812 containers. We

recorded an 8,7% rejection rate emanating from erroneous

documentation in this regard. This includes the checks and

audits prior sailing in all Ports of all reefer manifests for

various container shipments.

The auditing of temperature and ventilation settings of

80 951 containers on 1 035 en-route vessels from the Cape

Town port office for predetermined products resulted in

corrective actions on 822 containers.

All activities successfully mitigated risks in the supply chain

for our clients, shipping lines, cold store operators and South

African fruit in general.

Programme: Food SafetyFood Safety is, and will remain, a critical aspect of perishable

products intended for export and will remain a top priority

within PPECB. Continuous collaboration with the Department

of Agriculture, Forestry and Fisheries (DAFF), the industry

and PPECB exists to enhance the current South African

system ensuring its compliance to international and national

legislation. The Official Food Safety Standard is continuously

reviewed to ensure that changes and adaptations triggered

by the audits are incorporated into the standard.

For the year under review PPECB remained vigilant in its

application of the Official Food Safety Standards by conducting

261 new audits and 116 surveillance audits. All FBO’s

remained committed to the standard by clearing out findings

in the allocated time, thus no FBO’s where prohibited from

exporting their produce. The decline in surveillance audits

is conducive to an ever changing environment. During

2009/10 Fiscal Year we experienced those food business

operators that were in compliance with the official food

safety system opted for a commercial certification, as this

opened more markets for them to service. In contrast, the

decline can also attributed to an unsteady economic

environment forcing food business operators not to export.

PPECB remains active in awareness creation regarding food

safety within the industry by means of published articles in

magazines, on the internet as well as radio talks. Building

strong partnerships within the industry ensures that the issue

regarding food safety does not become dormant and that

it remains a top priority within the agricultural sector.

Programme: CitrusWhile the 2007 and 2008 citrus seasons proved to be record

breaking seasons the 2009 season saw a drop in export

volumes which can be attributed to a number of reasons

but difficult marketing conditions in especially Europe and

the strengthening of the Rand were the main contributors.

As if the application of the normal Citrus Black Spot (CBS)

strike system was not complicated enough, PPECB inspectors

also had to deal with a new CBS risk management system

aimed at the European markets. The new system was rolled

out in August 2009 after the Valencia season had already

commenced and our staff as well as the Harmonization

Programme should be congratulated for the manner in which

they responded to the challenge. One aspect that will continue


to receive attention through the Harmonization Programme

is the correct identification of CBS lesions. This aspect is non-

negotiable as there are dire consequences for producers

whose fruit were intercepted with CBS.

A total of 100,2 million actual cartons were budgeted for

but at the end of March 2010 only 91,9 million cartons were

inspected and this was mainly due to the decline in demand.

In terms of quality rejections increased overall from 2,01%

in 2008 to 2,48% in 2009. This can be attributed to the

zero tolerance approached followed this season with regard

to decay as well as False Codling Moth (FCM) infestation.

On a national basis the main rejection reasons were FCM

on grapefruit and oranges, decay on soft citrus and blemishes

on lemons.

All citrus types except for grapefruit were down when

measured against the 2008 season. The biggest decline was

experienced on the Valencia types. When looking at the

markets the European markets took less fruit while the

Russian Federation, the Middle East and the Far East were

the star performers.

A total of 1 231 720 pallets were exported in 2009 and

whilst there were calls for Maputo to be utilised optimally,

more than half of the citrus crop were still exported through

Durban. Volumes through Cape Town port declined further

whilst Maputo and Port Elizabeth remained stable. Much

effort was put into opening Port Elizabeth up for exports to

Japan for the first time and it is hoped that producers will

take full advantage of this opportunity as it will benefit the

region immensely. It will also take some truckloads off the

road as the need for road transport to Durban will be reduced.

Programme: Pome and Stone FruitThe impact on the volumes for the 2009/10 season were

more than a million cartons downward, largely due to

damage caused by adverse weather conditions (hail, rain,

wind and heat waves) during the first months of production.

Compared to the previous season the biggest impact was

experienced on the 2 main plum cultivars Laetitia (-18 %)

and Songold (-11%). A record nectarine crop of 2, 5 million

(+29%) equivalent cartons were exported during the period

under review. Amidst threatening economic forces faced by

stone fruit marketers and nature’s challenges, the industry

managed to export 11, 6 million cartons (1% down on

budget for the fiscal) for export. The lighter crop, the global

economic crisis, the strong Rand and the adverse weather

conditions in the EU continent combined made it a challenging

2009/10 season. The production of plums in the Southern

Hemisphere was 17% down (SA -12% and Chile -21% after

the earth quake). Although the demand was very strong

during the latter part of the season due to the shortage of

plums, the income of producers was under threat due to a

fairly strong Rand.

The 2009 pome fruit season was a normal season and the

pome crop was 1% lower than last season. The total apple

crop was 6% (1,5 million cartons) lower compared to last

year. Forelle pear volumes were 6% higher than last year

mainly due to new hectares that were coming into production.

The total pear crop was also 9% (1,28 million cartons) higher

compare to last year.

Notwithstanding the apple crop in the Southern Hemisphere

at 10,5 million cartons lower than last year, the apple stock

in the EU Continent was 24,8 million cartons (62%) higher

than last year, a record for the last 4 years. This illustrates

the difficult season end for apples due to the world-

wide recession and oversupply of apples. On the whole the

pome season were fairly moderate and volumes were 7%

(2 582 915 cartons) above budget due to the positive

exchange rate during 2009.

DAFF recently lifted the ban on importing apples from the

USA and apples were imported during December 2009 for

the first time from the USA. These apples were imported at

R200 per carton.


Active stakeholder engagement resulted in PPECB contributing

intensely towards actively managing the Cold Chain

requirements for the plum variety Songold; providing a

value added weekly Statement of Fact for plum exports to

the industry, assistance with the development of local

standards and requirements for stone and pome fruit and

the effective execution of the 8 weeks storage period for

Forelle pears. PPECB continued its partnership with the stone

and pome industry in supplying accurate and timely

information.

Programme: Table GrapesFavourable local market conditions and initial inclement

(rainy) weather conditions in the Northern Regions were the

cause for a 2 week late start to the 2009/10 table grape

season. Furthermore poor weather conditions also attributed

to the outbreak of Downy Mildew in Paarl and neighbouring

areas. Preventative actions were unsuccessful with continuous

downfall of rain every second day with high humidity

conditions. Downy Mildew contributed to an estimated

overall loss of 1,4 million (4,5 kg) cartons of table grapes in

the Western Cape.

Despite these negative conditions, the overall condition and

quality of table grapes were very good in the high volume

areas of the Orange River and the Hex River Valley. Producers,

as in the previous season, yet again managed to show

excellent discipline regarding harvesting grapes with an

optimum internal quality.

Market conditions during November, December and the

beginning of January were favourable due to the lack of

supply of competing countries in the Southern Hemisphere.

Market conditions became negative during mid January

with Chile becoming more active in the market and the

strengthening of the Rand during mid January. Good quality

and grapes with good condition were supplied up to the

end of season ensuring sustainability.

Notwithstanding the drop in volume caused due to Downy

Mildew, a total of 52 243 653 cartons were packed.

The 1% below the budgeted volume of 52 972 818 cartons

for 2009/10 budget period was restricted mainly because

of good quality and higher volumes obtained during the

months of February and March.

The review period again saw PPECB continue its partnership

with the grape industry in support of their competitiveness

by providing accurate and timely information that enabled

effective marketing decisions.


Programme: Subtropical and Other ProductsThe 2009 avocado season reached an average export volume

of 9,7 million cartons, well below the record crop in excess

of 12,5 million cartons experienced during the previous season.

The lower volumes were due to unfavourable climatic conditions

and Cercospera in certain areas. Export markets however

remained favourable throughout the season due to the higher

demand and well coordinated volumes during peak delivery

periods. The industry also had to contend with a local market

which continued to absorb large quantities of avocados at

fresh produce markets, retail outlets and the informal sector.

Mango exports continued to decline as has been the trend

for the last few years, and litchi crops saw a 8% below

budgeted figure; reasons which could be ascribed to increased

demand for mangoes on the local market including the

informal sector, and due to high quantities attracted for

processing. Lower onion and other vegetable volumes were

exported due to lower demand and prices overseas resulting

from the global credit crunch.

The groundnut sector experienced a crop of just below

20 000 metric tons recorded for export during the fiscal year

which has been characterised by an additional effort from

the PPECB to reduce aflatoxin risks at the point of export.

Other noteworthy movements were red tea showing an

upward trend.

Due to the volatility of volumes, cost containment within

this program demands a “hands on” approach during

management of key activity drivers.

Further highlights of the programme involve the PPECB’s

contribution to the management of maturity testing on

avocados as part of a SAAGA local market campaign.

The 2009/10 year also saw the commencement of a product

training service for the Johannesburg Market, the biggest

fresh produce market in Africa. QC personnel and floor

inspectors have been trained in at least 6 product modules

in Johannesburg Market’s endeavour to revolutionise its

“market of the future” programme based on food safety and

quality. The PPECB committed to capacity building programmes

with individuals acquiring a basic understanding of the principles

and requirements involved with the inspections of fresh quality

produce commonly traded at the market. This venture is the

beginning of the first phase of capacity building of this strategic

partner with the programme destined to reach the premises

of Johannesburg Market suppliers as well as strategic alliances

within the SADC region over time.


PPECB’s Value Added Services division experienced some

significant staff movements during the year in review. These

staff movements were largely confined to managerial positions

leaving core service delivery capability intact and continuity

unaffected. Notwithstanding these changes, the division also

managed to maintain a clear focus on its strategic direction

as contained in the 5 year corporate strategic plan.

The year in review again saw the organisation’s accreditations

been subjected to scrutiny by the South African National

Accreditation System (SANAS). In this regard management

can very proudly boast that all accreditations including

ISO 17021, ISO guide 65 and ISO 17025 were reconfirmed

which supports our efforts in expanding our service offerings

under these accreditations.

Pursuant to its goal of acquiring the coveted ISO 17020

accreditation for competent inspection bodies, PPECB

recommissioned a project in this regard and together with

its sister Harmonization Programme, which measures

consistent interpretation and application of product quality

standards, have made huge inroads as to the inspectorate’s

state of readiness and eventual accreditation.

PPECB’s Mycotoxin Analytical Laboratory, situated in Pretoria,

posted good financial results on the back of a very good

groundnut export season. Holding the industry benchmark

for turnaround times and volume capacity for mycotoxin

analysis, the lab continues to be one of the biggest mycotoxin

laboratories in the world, with service excellence second to

none. The laboratory is poised to expand its service offerings

to include additional analysis using existing GC and HPLC

techniques mainly due a significant increase in demand for

these services by our current client base.

Our Cold Chain Research and Development Unit took the

opportunity to review its strategy going forward. A completely

revamped R&D strategy has been approved and some of the

plans have already been actioned in the period under review.

The importance of continued Cold Chain research and

development has been reconfirmed by PPECB’s Board of Directors

representing industries and understood by important

stakeholders, such as Government, thereby laying the foundation

for repositioning the unit’s output to further support the export

competitiveness of the industries that PPECB serves.

Further momentum was gained in terms of PPECB’s efforts

to contribute to the overall development of the horticultural

sector in South Africa during the reporting period. PPECB

has partnered with the National Agricultural Marketing

Council and the Johannesburg Fresh Produce Market in

identifying needs in the small scale farmer sector and to

deliver skill transfer programmes and compliance training

and awareness.

PPECB Analytical LaboratoryThe laboratory has excelled in technically optimising its

accuracy and efficiencies of existing and new analytical

methods of mycotoxin analyses. The laboratory utilises

sensitive, ISO 17025 accredited analytical systems for the

testing of mycotoxins. The efficiency of the methods employed

enables the testing facility to expand to the point where it

value added services


can analyse up to 200 samples per day. The laboratory has

also continued to focus on expanding into dried fruit, tree

nuts, spices and consumer food product market segments,

generating income from mycotoxin analyses of these matrices.

Expanding into a fats analytical programme, the laboratory

has seen an increased demand for analyses of food

commodities for fat content (trans fats, unsaturated vs.

saturated fatty acids) and rancidity.

CertificationsThe certifications unit showed positive client growth despite

the economic down turn. This correlated well with a continued

improvement in turnaround times, service delivery and the

national accessibility of our service countrywide. Although

HACCP certifications have showed a distinct upturn,

GlobalGAP certifications remained the major income generator

for the unit in the period under review. The greatly anticipated

publication of the Consumer Protection Act has sparked

renewed vigour and demand in the certification space which

prompted management to track developments and impacts

on the industry closely throughout the review period. During

the reporting period, the certifications unit added ISO 22000

to its service offering which further includes GlobalGAP;

BRC; HACCP; LEAF; 360 Quality; Tesco Nurture and Retail

Supplier audits.

Cold Chain R&DEmanating from its approved 3 year strategy, the R&D

programme has identified and commissioned various applied

research projects during the period under review: Conducting

successive research trials to review and update the current

post harvest recommendations within the Cold Chain, for

all major perishable products destined for export. 2 Further

co-funded projects to record the “Post-harvest Biology and

Technology of Leucadendron and Leucospermum under Cold

Storage” and the “Development of Post-harvest and Shipping

Protocols for South African Pomegranate – An emerging

Export Crop” have already produced initial results in the

reporting period. A further project will look into investigating

the non-destructive monitoring and prediction of rind quality

in citrus fruit in an attempt to use alternative post harvest

methodologies.

Training and DevelopmentThe delivery of training services were limited during the

review period mainly due to the ramp up phase associated

with properly constructed outcomes based training material

that attracted the focus of many subject matter experts at

PPECB. In addition, training was also limited to needs

contained in partnership agreements where predetermined

skills transfer programmes were driving delivery. Once a fully

constituted training services menu has been finalised, the

services will become available to the broader spectrum of

the market.

Our development efforts with small scale farmers has

produced a further 9 farmers certified to globally recognised

good agricultural practices. Furthermore, a total of

8 small scale farmers received good agricultural practice

pre-audits to determine their compliance GAPS. These farmers

will be further assisted to close out all findings to become

compliant.


corporategovernance

Risk ManagementTop 5 Risks

Structure

Materiality Framework

Controls

Looking Ahead

Administration

Audit Committee Statement of Responsibility

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PPECB is committed to the principles and values of good

corporate governance and a fundamental part of this is

effective risk management. In compliance with the provisions

of the PFMA, risk management is not a compliance issue

but a business imperative. We remain committed to

developing and growing the business of PPECB within our

Board-determined risk appetite.

The Board, through the Risk Management Committee, is

ultimately responsible for risk management process and

controls. The Risk Management Committee assists the Board

in fulfilling its oversight role. The Board approves risk

management policies and its strategy and ensures that

management has adequately discharged their responsibility

of designing appropriate structures, systems and controls to

integrate risk management into day-to-day activities.

The Risk Management Committee advises the Board on the

identification and management of the main risks within

PPECB. Annual risk assessments are conducted to ensure

the effectiveness of the risk management policy and

strategies. The Risk Management Committee itself is annually

assessed to ensure its value, effectiveness and to make

recommendations on improvements.

The Risk Management Committee strategy is that risks, by

their very nature, are not static, hence the vigilant approach

to risk management. PPECB mitigating strategies are

constantly being monitored and adapted. Regular feedbacks

and reports are provided to the Risk Management Committee

en route to the Board.

PPECB is committed to increasing value and growing the

business but seek to do this in a controlled environment.

Despite a tough economic environment in 2009, Executive

Management and the Board has remained closely involved

with risk management initiatives and risk management strategies

have proven effective throughout the year under review.

Responsibility and accountability for risk management reside

at all levels within the organisation. Every business unit is

represented on the Risk Management Committee. PPECB

uses the 3 line of defence model: the business unit manager

who is responsible for day-to-day risk management activities;

the Risk Management Committee responsible for the risk

management framework and policy, oversight and

independent reporting; and finally the internal audit function

which provides an independent assessment of the adequacy

and effectiveness of the risk management framework and

risk governance structures.

The Year under ReviewOur focus for the year was aimed at reinforcing the building

blocks that have been established in the previous years. One

of the key focus areas was to strengthen the risk maturity

in the organisation through developing a risk management

culture. During the year under review, PPECB provided risk

management training to all its key business managers. Risk

management strategies are deployed throughout our

organisation in the form of operational strategies, measurable

action plans and projects. This is rigorously monitored by

the responsible project leader.

The Risk Management Committee has refined its risk

management framework, strategies and policies to align

these with best practice.

The main threats to PPECB are emanating from the HR and

IT areas. Capacity and retention of skill remain an area of

concern for PPECB. There is continued focus on employing

and retaining high-quality people. It is essential for PPECB

to remain technologically relevant to be able to deliver on

its objective to be a credible source of information. The Board

has recognised that PPECB needs to invest significantly in IT

infrastructure and capacity.

During the year under review, the annual risk assessment

was attended by members of the Board, Executive

Management and the Risk Management Committee and

was externally facilitated. The purpose was to ensure that

there is a uniform understanding of the risks facing PPECB

and application of risk management strategies.

There has been significant improvement in the risk maturity

of the organisation. To support and grow the culture of risk

awareness in the business, training programmes and systems

will be implemented and will serve to reduce risk exposure

and increase day-to-day accountability within PPECB.

risk management


Top 5 RisksPPECB Discloses its Top 5 Risks:

Operational

RiskNo.

Risk Cause ResponseRisk

Category

ResidualRisk

Exposure

1 Motivatedemployees toensure delivery onoperational andstrategic objectives.

56%- Poor relations with staff.- Non-recognised performance

management system.- Lack in support systems to

staff.

- Employee Wellness Policy implemented.

- Performance Management System that coaches, evaluates and rewards employees for goodperformance implemented.

- Preparing the environment for the Employee Satisfaction Survey will be conducted in 2010 and then every 2 years.

- Dialogue completed and submission made to Exco.

- Development and Transformation Committee approved in May 2010.

- Review the services of the Administrator to the Fund.

- Review the services of the Consultant to the Fund.

- Benchmark the current Fund structure with other similar Funds simultaneously bench-marking the Administration andConsultant services and costs.

- Annual Newsletter, Bi-annual Roadshow, Monthly Index, Intranet (member guide and information guide).

Strategic2 Cost escalation inproviding services.

56%- Current inspection methodologies are expensiveand does not consider risk.

- Escalating inland loading points.

- The impact of quality management systems on the risk of non-complianceneeds to be considered.

- Inspection systems create resource constraints.

- Client perceptions that costsare too high.

- Actively pursuing risk base approach for inspection methodology.

- Investigate and evaluate alternative methodologies for container loading for certain agriculture products.

- Project definition report and Joint Steering Committee formedbetween PPECB and DAFF for strategic projects e.g. alternativesampling methodology.

- Monitor expenses and test budget against a zero base.

- Re-engineer processes to improve process efficiencies and reduce lead times.

Operational3 PPECB’soperational modelis designed toensure theeffective andefficient delivery ofcore functions.

56%- Misaligned processes may lead to reputational damage,claims, loss of clients and notdelivering on PPECB's mandate.

- High demand for timely management information tosupport decision-making in operations and management.

- Inefficiencies of current processes.

- Insufficient skills and capacityto perform business analysis.

- Project team focuses on aligning and integrating export certification processes, both manual and flow of informationprocesses.

- Value Added Services ensure compliance to SANAS accreditation requirements.

- Introduce internal audit on regulatory processes.

- The SLA's between PPECB and customers on deliverables to manage expectations, within reason.

Risk 3 Causes continued on page 57. Risk 3 Responses continued on page 57.


RiskNo.

Risk Cause ResponseRisk

Category

ResidualRisk

Exposure

Sustainability4 Impact of externalinfluences /environment onfinancial results ofPPECB.

56%- Changes in volumes could lead to costs not recovered,financial losses.

- Climatic influence on volumes resulting in loss of business.

- Global warming.- Carbon footprint.- Climatic conditions.- Floods, rain, drought, hail

storms, etc.- Worldwide recession.- Land claims on commercial

farm land may result in reduced production and export.

- Water quality.- Political Influence.- Water footprint.- Illegal exports.

- Continuous environmental scanas part of the strategic management process.

- Volumes are re-estimated on a bi-annual basis.

- Reserves are maintained to sustain operations in case of financial distress.

- Monthly Debtors Management Meeting.

- Operations monitor volumes and performance of activity points and compare results to previous years.

- Established an Academy to provide training in GAP to emerging farmers.

- Carbon footprint project has started. A committee dealing with the reduction of PPECB's carbon footprint has been formed.

- Conducting an analysis of the impact of land claims on our business.

- PPECB reported illegal exports to DAFF and have an interim arrangements in place.

Strategic5 The SA perishableproduct industryhas sufficientcapacity and skillsavailable toimprove SA'sglobalcompetitiveness.

28%- PPECB's second objective is to support the export competitiveness of the SA perishable products industrieswithin its mandate.

- PPECB is unable to fulfill therole due to lack in resourcesand funding.

- Insufficient plans to identifyopportunities.

- Insufficient external skills.

- Project team needs to determinefocus areas, priorities, resource needs and implementation actions.

- Programme needs to be harmonized with ISO 17020 and the AETP programme.

- Source funding opportunities.- New R&D strategy in development.- Establish a Training Academy

to transfer skills.- Capacity building initiative

implemented with JohannesburgMarket.

- MOU development for medium to long term synergies which include broader capacity building.

- Capacity building initiative with Egypt under development.

Operational3 PPECB’soperational modelis designed toensure theeffective andefficient delivery ofcore functions.

56%- All critical business processeshave not been published in policies and procedures.

- National resource planning ensures effective and efficient delivery of core business.

- Evaluation by Harmonization Programme (SOP) support effective and efficient delivery of services (Including specific CBS training interventions).

- ISO17020 certification in process.The document review for the process will be implemented.

- Operational roll out of update procedures (in alignment with ISO 17020)

- Harmonization implemented on all main products excluding sub-tropical products. Partial implement-ation in Cold Chain Services.

This corporate governance statement sets out the governance

framework adopted by the PPECB Board and highlights the

key activities for the year under review.

The Board’s approach to governance is based on the

understanding that sound governance practices are

fundamental to earning the trust of our stakeholders. Our

stakeholders include Government, industries we serve, our

employees, our clients, our service providers and the

communities which we serve.

The governance framework enables the Board to fulfil its

role of providing oversight and strategic counsel in balance

with its responsibility to ensure conformance with legislative

and regulatory requirements and risk tolerance. It also provides

the parameters for delegating its authority.

Compliance with applicable legislation, and in particular

PPECB’s enabling legislation: the PPEC Act 9 of 1983; the

APS Act 119 of 1990 and the Public Finance Management

Act 1 of 1999, as well as regulations, standard, protocols

and codes is an essential characteristic of the PPECB culture.

PPECB welcomes the publication of King III and has invested

wisely in training management and the Board on the

recommendations of the report. Management is analysing

the requirements to ensure implementation in the coming

months.

Board of DirectorsThe PPECB Board is structured in accordance with the PPEC

Act, with the Board members appointed by, and accountable

to, the Minister of Agriculture, Forestry and Fisheries. The

Board is comprised of non-executive Directors, representing

industries in which PPECB operates.

Details of members of the Board are disclosed in the Director’s

report. The roles and responsibilities of the Board are defined

in the PPEC Act.

The Board meets at least 4 times in a year with special or

additional meetings convened as circumstances dictate.

The Board serves under a written and approved Board Charter.

Attendance at Board meetings for the year 1 April 2009 to

31 March 2010 is set out below:

The ChairpersonThe Chairperson of the Board is Mrs Elaine Alexander. She

is responsible for the effective functioning of the Board, with

her primary duties being to:

The Chairperson’s term of service ends on 31 March 2010

and is extended until 30 June 2010. Vice Chairperson is Mr

Molefe Mokoene and he serves the same term of office.

structure

Preside over meetings of the Board of Directors to

ensure their smooth functioning.

Serve as the main informal link between the Board

and the Executive Management to provide support

and advice while respecting executive responsibility.;

Serve as the main link between the Board and the

Minister for Agriculture, Forestry and Fisheries.

Ensure that regular and objective appraisals of

individual directors, as well as of the Board itself and

its committees, are completed to assess the Board’s

effectiveness.

Assist with the formulation of the annual work plan for

PPECB Board and ensure that it is strictly adhered to.

Lead and direct the proceedings, deliberations and

decisions of the Board.

Member 21/5/09 27/8/09 21/11/09 11/3/10

E AlexanderChairperson

CA Atkins

HP Booysen

CH Engelbrecht

AM Hawes

M Mannya

M MokoeneVice Chairperson

A Rabe

C Sixolo

L Vorster

Present Absent with apology


The Executive CommitteeThe PPEC Act provides for the certain powers of the Board to

be delegated and the Board has consequently delegated its

powers pertaining to the day-to-day operations of the business

to the Chief Executive Officer. The Executive Committee assists

the Chief Executive Officer in executing these duties.

The Executive Committee meets formally every 2 weeks and

additional formal and informal meetings are scheduled on

an ad hoc basis.

All Executives, including the Chief Financial Officer,

report to the Board through the Chief Executive Officer.

Recommendations and decisions are taken in accordance

with the delegation of authority.

Mr Luvuyo Mabombo is the Chief Executive Officer.

The Board CommitteesIn order to discharge its duties more effectively, the Board has

approved and delegated authority for specific matters to

various committees. These committees have been established

to ensure that operational performance and risk management

are monitored. These committees serve under written and

approved charters, which are reviewed and updated annually.

The minutes of all Board committee meetings are presented

to the Board for information.

Specific responsibilities are delegated to the following

committees to support the functioning of the Board:

Audit Committee

Human Resource Committee

Risk Management Committee

The Audit CommitteeThe Role of the Committee

The Composition of the Committee

The Audit Committee comprises of 3 non-executive Directors.

Members of management, external and internal audit attend

meetings by invitation. Members of the external and internal

audit have unrestricted access to members of the Audit

Committee and its chairman, thereby maintaining

uncompromised independence.

Members of the committee and their attendance record are

set out below:

The Human Resource CommitteeThe Role of the Committee

Members of the committee and their attendance record are

set out below:

Acts in accordance with the requirements set out in

the Public Finance Management Act and Treasury

Regulations.

Reports to the Board and has the authority to make

recommendations.

Met 3 times this year.

Member 20/5/09 26/8/09 5/3/10

A RabeChairperson

CA Atkins

L Vorster


Reviews all aspects relating to human resources.

Monitors compliance with the relevant employment

and labour legislation.


Member 20/5/09 26/8/09 26/11/09 10/3/10

HP BooysenChairperson

E Alexander

A Rabe



The Risk Management CommitteeThe Role of the Committee

Members of the committee and their attendance record are set out below:

Advises the Board on risk management processes.

Develops risk strategies and policies.


Member 15/4/09 3/6/09 2/10/09 16/11/10

A FortuneChairperson

L Groenewald

N Mbokane

Z Makhaye

J Schwiebus

S van Wyk

W van Zyl

R Robinson

C. Farrell(Internal Audit)

4/3/10

-

Corporate SecretariatPPECB employs a Company Secretary, Ms Adela Fortune, who in addition to

performing statutory functions, also supports the Executives and Directors alike

ensuring the effective functioning of the Board and its committees.

Board members receive annual and ongoing training on corporate governance

by reputable service providers. Board members also have access to appropriate

information and to the advice and services of the Company Secretary.

Present Absent with apology By invitation Resigned-


The framework of acceptable levels of materiality and significance applied during 2009/10, for the purpose of interpretation

of, and compliance with, the PFMA (as amended) is the following:

materiality framework

Section 50 / Fiduciary duties of accounting authoritiesThe accounting authority for a public entity must -on request, disclose to the executive authority responsiblefor that public entity or the legislature to which the publicentity or the legislature to which the public entity isaccountable, all material facts, including those reasonablydiscoverable, which in any way may influence the decisionsor actions of the executive authority or that legislature.

PFMA Section Quantitative (Amount) Qualitative (Nature)

Any fact discovered of whichthe amount exceeds themateriality figure of R625 000after consultation with the AuditCommittee for the year underreview.

- Any item or event of which specific disclosure is requiredby legislation, King III Reportor GRAP.

- Any fact discovered of whichits omission or misstatement,in the Board's opinion, could influence the decisions or actions of the executiveauthority or legislature.

Section 54 / Information to be submitted by accountingauthoritiesBefore a public entity concludes any of the followingtransactions, the accounting authority for the public entitymust promptly and in writing inform the relevant treasuryof the transaction and submit relevant particulars of thetransaction to its executive authority for approval of thetransaction:- participation in a significant partnership, trust,

unincorporated joint venture or similar arrangement.- acquisition or disposal of a significant shareholding in

a company.- acquisition or disposal of a significant asset.- commencement or cessation of a significant business

activity.

Acquisition or disposal of asignificant asset;- Acquisition: Market value

greater than Materiality figure- Disposal: Market value greater

than 50% of Materiality figure.

- Any participation outside of the approved strategic plan and budget.

- Any acquisition or disposal ofany asset that would increaseor decrease the overall operational functions of the Board, outside of the approvedstrategic plan and budget.

- Disposal of the major part of the assets of the Board.

- Any business activity that would increase or decrease theoverall operational functions of the Board, outside of the approved strategic plan and budget.

Section 55 / Annual Report and financial statementsThe annual report and financial statements referred toin subsection (1)(d) must-- fairly present the state of affairs of the public entity, its

business, its financial results, its performance against predetermined objectives and its financial position as at the end of the financial year concerned.

- include particulars of-- any material losses through criminal conduct and any

irregular expenditure and fruitless and wasteful expenditure that occurred during the Financial Year.

- any criminal or disciplinary steps taken as a consequence of such losses or irregular expenditureor fruitless and wasteful expenditure.

- any losses recovered or written off.- any financial assistance received from the state and

commitments made by the state on its behalf.- any other matters that may be prescribed.

- Losses through criminal conduct.- any loss identified.

- Losses through any expenditure.- if the combined total

exceeds the planning materiality figure after consultation with the AuditCommittee for the year under review.

- Any irregular, fruitless and wasteful expenditure as defined by the PFMA will bereported.

Any identified loss throughcriminal, reckless or negligentconduct.

Section 66 (1) / Restrictions on borrowing, guaranteesand other commitments

Rnil This Public entity may notborrow money, nor issue aguarantee, indemnity orsecurity, nor enter into any othertransaction that binds or maybind the institution to any futurefinancial commitment unlessacting through the relevantExecutive Authority. (PFMAsection 66(3)(c)).

(1)(c)

(2)

(b)

(c)

(d)

(2)

(a)

(b)(i)

(ii)

(iii)(iv)

(v)


Internal ControlInternal control is a process designed to provide reasonable

assurance on the achievement of organisational objectives.

The Board has ultimate responsibility for internal control.

The Executive Management, as mandated by the Board, has

established a system of control to manage significant risks.

Ongoing monitoring and reporting processes by the Risk

Management Committee provide for high-level assessment

on the status of internal controls. The Board also receive

assurances from the Audit Committee, which derives some

of the information from regular internal and external reports.

AuditInternal audit is outsourced to KPMG. Internal audit provides the

Audit Committee and Management with reasonable assurance

that the objectives are achieved in the following areas:

Effectiveness and efficiency of operations.

Reliability of financial reporting.

Compliance with laws and regulations.

This is achieved through an independent objective appraisal

and evaluation of the risk management processes, internal

controls and governance processes as well as by identifying

corrective actions and suggested enhancements to the

controls

controls and processes. The risk-based audit plan focuses on

the major risks emanating from the organisation’s internal

risk assessment process.

Internal audit is fully supported by the Board and the Audit

Committee and has unrestricted access to all organisational

activities, records, property and personnel.

The external auditors are, as per statutory requirement,

responsible for independently auditing and reporting on the

financial statements in conformity with International Standards

of Auditing.

The external auditors are PriceWaterhouseCoopers.

Business ConductPPECB has adopted a Code of Ethical Conduct which is

approved by the Board. Compliance to this code is closely

monitored by Executive Management and the Risk

Management Committee and awareness of ethical behaviour

is encouraged by regular communications with employees

and an externally monitored Fraud and Ethics Hotline. PPECB

accepts its duty to address matters of significant interest and

concern to all stakeholders, taking into account greater

demand for accountability.

External Auditors: PriceWaterhouseCoopers

Internal Auditors: KPMG

Business Address: 45 Silverboom Ave, Plattekloof, 7500

Postal Address: PO Box 15289, Panorama, 7506

Telephone: +27 21 930 1134

Facsimile: +27 21 939 6868

Website: www.ppecb.com

administration

The Board is preparing the organisation for implementation of King III requirements. PPECB continues to review and

monitor legislative and regulatory developments to ensure the business is prepared to respond appropriately. Of

significant interest to PPECB is the implementation of new or amended legislation relating to competition, privacy

of information and consumer protection. Finally, the internal governance structures are being assessed to ensure

new requirements are being met.

looking ahead


The Audit Committee reports that it has complied with its responsibilities arising from Section 38(1)(a) of

the Public Finance Management Act 1 of 1999 and Treasury Regulations 3.1.13. The Audit Committee

also reports that it has updated and adopted appropriate formal terms of reference as its Audit Committee

Charter, and have executed its affairs in compliance with this charter and has discharged all its responsibilities

as contained therein.

All weaknesses in internal control reported by the internal and external auditors to the Audit Committee

have been considered for their significance and potential for financial losses and, based on these reports,

the Audit Committee is of the opinion that whilst there are some control issues that have been reported

and are receiving attention, generally the effectiveness of the internal controls are adequate.

The Audit Committee reviews the performance of the external auditors and the level of audit service

provided and has recommended to the Board of Directors the continued appointment of

PriceWaterhouseCoopers for the Financial Year. In the period under review the Committee has reviewed

the scope of the interim review and year end audit including the Materiality level. Auditor independence

is discussed and confirmed at each meeting.

Evaluation of Financial Statements

The Audit Committee has:

Reviewed and discussed the audited annual financial statements to be included in the Annual Report

with the external auditors.

Reviewed the external audit management letter and management’s responses thereto.

Considered matters such as consistency of accounting policies and practices.

Reviewed compliance with legal and regulatory provisions.

We concur with and accept the annual financial statements, and are of the opinion that the audited

financial statements should be accepted and read together with the report of the external auditors.

The Audit Committee has therefore recommended the adoption of the annual financial statements by the

Board of Directors at their meeting held on 19 May 2010.

A Rabe Date

Chairperson of the Audit Committee

statement of responsibilityaudit committee

29 / 07 / 2010


financialannual

statements31 March 2010

Statement of Responsibility by the Board of PPECB

Independent Auditor’s Report

Directors’ Report

Statement of Changes in Net Assets

Statement of Financial Position

Statement of Financial Performance

Cash Flow Statement

Notes to the Financial Statements

Detailed Statement of Financial Performance - unaudited

65

66

68

70

71

72

72

73

89

contents


The Directors are required by the Public Finance Management Act, to maintain adequate accounting records and are responsible

for the content and integrity of the financial statements and related financial information included in this report. It is their

responsibility to ensure that the financial statements fairly present the state of affairs of the entity as at the end of the financial

period and the results of its operations and cash flows for the period then ended, in conformity with the Standards of General

Recognised Accounting Practice (GRAP) of South Africa and in the manner required by the Public Finance Management Act,

1999 (PFMA). The external auditors are engaged to express an independent opinion on the financial statements.

The financial statements are prepared in accordance with GRAP and in the manner required by the PFMA and are based upon

appropriate accounting policies consistently applied and supported by reasonable and prudent judgement and estimates.

The Directors acknowledge that they are ultimately responsible for the system of internal financial control established by the

entity and place high importance on maintaining a strong control environment. To enable the Directors to meet these

responsibilities, the Directors set standards for internal control aimed at reducing the risk of error or loss in a cost effective

manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting

procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout

the entity and all employees are required to maintain the highest ethical standards in ensuring the entity’s business is conducted

in a manner that in all reasonable circumstances is above reproach.

The Directors are of the opinion, based on the information and explanations given by management, that the system of internal

control provides reasonable assurance that the financial records may be relied on for the preparation of the financial statements.

However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material

misstatement or loss.

The going concern basis has been adopted in preparing the financial statements. The Directors have no reason to believe that

the entity will not be a going concern in the foreseeable future, based on forecasts and available cash resources. These financial

statements support the viability of the entity.

The external auditors are responsible for independently reviewing and reporting on the entity's financial statements.

The financial statements have been examined by the entity's external auditors and their report is presented on pages 66 to 67.

The financial statements set out on pages 68 to 88 were approved by the Board of PPECB on 20 May 2010 and are signed

on their behalf by:

E Alexander S E Mokoene

Chairperson of the Board Vice Chairperson

statement of responsibilityby the board of PPECB


INDEPENDENT AUDITOR’S REPORT TO PARLIAMENT AND THE MEMBERS OF THE BOARD OF THEPERISHABLE PRODUCTS EXPORT CONTROL BOARD FOR THE YEAR ENDED 31 MARCH 2010

REPORT ON THE FINANCIAL STATEMENTS

IntroductionWe have audited the accompanying financial statements of the Perishable Products Export Control Board, which comprise

the statement of financial position as at 31 March 2010, and the statement of financial performance, statement of changes

in net assets and cash flow statement for the year then ended, and a summary of significant accounting policies and other

explanatory information, and the accounting authority’s report, as set out on pages 68 to 88.

Accounting Authority’s responsibility for the Financial StatementsThe accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with

South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and in the manner required by

the Public Finance Management Act of South Africa. This responsibility includes: designing, implementing and maintaining internal

control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether

due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable

in the circumstances.

Auditor's ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in

accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and

plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain evidence about the amounts and disclosures in the financial statements.

The procedures selected depend on the auditors judgement, including the assessment of the risk of material misstatement

of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal

control relevant to the Board's preparation and fair presentation of the financial statements in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's

internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness

of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, these financial statements present fairly, in all material respects, the financial position of the Perishable Products

Export Control Board as at 31 March 2010, and its financial performance and its cash flows for the year then ended in

accordance with the Standards of GRAP and in the manner required by the Public Finance Management Act of South Africa.

independent auditor’s report


Other MattersWithout qualifying our opinion, we draw attention to the fact that supplementary information set out on page 89 does not

form part of the annual financial statements and is presented as additional information. We have not audited this schedule

and, accordingly, we do not express an opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In terms of the Public Audit Act of South Africa and General notice 1570 of 2009, issued in Government Gazette No. 32758

of 27 November 2009 we include below our findings on the report on predetermined objectives, compliance with the PFMA

and financial management (internal control).

FindingsPredetermined objectives

There are no significant findings to report.

Compliance with laws and regulations

No material issues were noted relating to legal compliance during the audit.

INTERNAL CONTROL

We considered internal control relevant to our audit of the financial statements and the report on predetermined objectives

and compliance with the PFMA, but not for the purposes of expressing an opinion on the effectiveness of internal control.

No material deficiencies were identified relating to internal control during the audit.

PriceWaterhouseCoopers Inc

Director: JM Calitz

Registered Auditor

Cape Town

28 May 2010


IntroductionThe Board of Directors has pleasure in presenting its report

and the audited financial statements of the Perishable

Products Export Control Board (The Board) for the year ended

31 March 2010.

OwnershipThe Perishable Products Export Control Board is a statutory

entity and is listed as a Schedule 3A, national public entity

in South Africa. It is accountable to the Minister of Agriculture,

Forestry and Fisheries.

Principle ActivitiesThe Board conducts its business by bringing about the orderly

and efficient export of perishable products from the Republic

of South Africa, in terms of the Perishable Products Export

Control Act 9 of 1983. It also operates as an assignee for

the Department of Agriculture, Forestry and Fisheries under

the requirements of the Agricultural Product Standards Act

119 of 1990. PPECB was established in 1926.

PPECB BoardThe present members of the PPECB Board are:

Mrs E Alexander Deciduous Industry Representative

(Chairperson)

Mr S E Mokoene Organised Agriculture Representative

(Vice Chairperson)

Mr CA Atkins Fishing Industry Representative

Mr HP Booysen Observer

Ms MC Sixolo Vegetable Industry Representative

Ms CH Engelbrecht Citrus Industry Representative

Mr AM Hawes Ministerial Representative

Mr A Rabe Deciduous Industry Representative

Mr L Vorster Subtropical Industry Representative

Ms BM Mannya Observer

Financial ResultsThe financial results of the Board are set out in the attached

financial statements.

Going ConcernThe financial statements have been prepared on the basis

of accounting policies applicable to a going concern as the

entity had a reserve fund of R77,914,814. This basis presumes

that funds will be available to finance future operations and

that the realisation of assets and settlement of liabilities,

contingent obligations and commitments will occur in the

ordinary course of business

Events Subsequent to Balance Sheet DateNo matter which is material to the financial affairs of the

Board has occurred between the balance sheet date and the

date of approval of the financial statements.

Compliance with LegislationThe Department of Agriculture is in the process of reviewing

the Perishable Products Export Control Act 9 of 1983 and

Agriculture Products Standard Act 119 of 1990.

Sections 51 and 55 of the PFMA impose certain obligations

on the Board and these relate to the prevention, identification

and reporting of all fruitless, wasteful and irregular expenditure

and collection of all revenue. In order to comply with these

obligations, the Board of Directors has prepared a materiality

framework.

The Directors believe that the Board has, during the year,

complied, in all material respects, with all legislation and

regulations applicable to it, including without limitation, the

Public Finance Management Act, 1 of 1999, the Treasury

Regulations and the Income Tax Act, 58 of 1962.

AuditorsAt a Board meeting held on 21 May 2009, PriceWaterhouse-

Coopers were reappointed as external auditors of the Board.

The Board's internal audit is outsourced to KPMG.

Company SecretaryThe Board's Secretary is Ms Adela Fortune.

directors’ report


Remuneration Report

Board of Directors

The Directors of the Board are appointed by the Minister of Agriculture, Forestry and Fisheries for a 3 year term. Fees paid to

the Directors vary based on their appointments to the various committees of the Board. Fees paid to the Directors serving

on the Board of Directors as at 31 March 2010 are:

Executive Management Members

All senior executives of the Board are employed on a full-time basis. Remuneration paid to Executives in service of the Board

on 31 March 2010 are:

A performance bonus was paid to the employees of PPECB according to the principles as approved by the Board of Directors

in March 2010. This bonus payment related to the 2010 financial year. The amount that was allocated to the Executive

Management members totalled to R379,372. The bonus payment is not included in the amounts above.

20092010Other

Payments

Mrs E AlexanderChairperson

145,976145,42438,677106,747

Mr SE MokoeneVice Chairperson

60,02266,6304,22762,403

Mr CA Atkins 121,239109,95935,77274,187

Mr HP Booysen 84,08684,438-84,438

Ms MC Sixolo 50,15844,8782,88041,998

Ms CH Engelbrecht 57,33647,10812,94834,160

Mr AM Hawes 8,131---

Mr A Rabe 110,873121,6633,065118,598

Mr LL Vorster 124,21098,78030,46068,320

44,579Ms BM Mannya 49,1677,16941,998

806,610768,047135,198632,849

Fees

2009Salary

RetirementBenefit FundContribution

AllowancePaid

OtherPayments 2010

Mr L Mabombo 1,745,2571,325,729 223,908130,000 - 1,679,637

Mr D Martin 1,018,610458,572 51,189420,000 28,791 958,552

Dr G Bruwer 1,776,493- -- - -

Mr JA Schwiebus 1,221,604886,638 164,95680,000 20,637 1,152,231

Mr Z Makhaye 571,086709,643 79,21612,000 35,721 836,580

Ms A Fortune 767,050515,166 57,507250,000 339 823,012

7,100,1003,895,748 576,776892,000 85,488 5,450,012


statement of changes in net assets

2009RNotes

2010R

At beginning of year --

Surplus for the year 17,358,32719,540,448

Transfer to self-insurance reserve (530,000)(530,000)

Transfer from / (to) asset replacement fund (1,122,958)-

Transfer of reserve realised on disposal of property --

Transfer from revaluation reserve on revaluation of property --

Transfer to reserve fund (15,705,369)(19,010,448)

At end of year --

Surplus levy for disposal in terms ofSection 18(8) and (9) of Act No 9 of 1983

At beginning of year 43,198,99758,904,366

Transfer from surplus levy for disposal in termsof Section 18(8) and (9) of Act No of 1983

15,705,36919,010,448

At end of year 58,904,36677,914,814

Reserve fund


Excess paid on insurance claim --


530,000530,000

At end of year 3,690,0004,220,000

Self-insurance reserve 2



1,122,958-

At end of year 3,690,0004,220,000

Asset replacement fund 2


Revaluation of property --

Transfer to suplus levy on revaluation of property --

Realised on disposal of property --

At end of year 9,791,2639,791,263

Revaluation reserve 2

The Board applied to the Minister of Agriculture, Forestry and Fisheries on 16 January 2009 for approval to increase the reserve

fund level to R75,000,000 with effect from 31 March 2008 and to be adjusted annually thereafter by the annual CPIX as

announced by SA Statistics. Based on above, the reserve level at 31 March 2010 will be R85,305,150. The current level of

reserve fund, which was approved by the minister in October 2004, is R46,306,834.

Net Assets


2009RAssets

Non-Current assets

Property, plant and equipment 16,640,086

16,640,086

Current assets

Financial assets - Held to maturity 46,369,940

Trade and other receivables 20,803,416

Cash and cash equivalents 25,182,127

Notes

5

6

7

8

92,355,483

Total assets 108,995,569

2010R

15,661,750

15,661,750

63,550,366

19,596,690

23,127,096

106,274,152

121,935,902

2009RLiabilities Notes

2010R

Current liabilities

Trade and other payables 21,656,66523,319,3239

Receiver of Revenue 912,984991,667

Provisions 8,458,220116,76410

31,027,86924,427,754

Total equity and liabilities 108,995,569121,935,902

2009RNet Assets Notes

2010R

Reserves

Reserve fund 58,904,36677,914,814

Self - insurance reserve 3,690,0004,220,000

Asset replacement fund 5,582,0715,582,071

Revaluation reserve 9,791,2639,791,263

77,967,70097,508,148Net assets

statement of financial position


2009RNotes

2010R

Cash flow from Operating Activities 21,145,99316,008,389

Cash and Equivalents at End of Year 25,182,12723,127,0968

Net cash generated by operations 14,923,44910,715,34517

Interest received 6,239,1425,311,586

Interest paid (16,598)(18,542)

Cash Flow from Investment Activities (22,235,923)(18,063,420)

Financing activities --

Increase in Cash and Equivalents (1,089,930)(2,055,031)

Cash and Equivalents at Beginning of Year 26,272,05725,182,127

Purchase of property, vehicles and equipment (4,057,474(1,069,654)

Proceeds on disposal of property, vehicles and equipment 1,517186,660

Increase in investments held to maturity (18,179,966)(17,180,426)

cash flow statement

2009RNotes

2010R

Finance cost (16,598)14 (18,542)

Revenue 134,880,02511 145,405,530

Other income 7,843,81012 7,195,291

Employee compensation and benefits (89,884,988)13, 18 (93,226,892)

Operating expenses (35,463,922)13 (39,814,939)

17,374,92519,558,990Operating surplus

Surplus for the year 17,358,32719,540,448

statement of financial performance


1 General InformationPPECB (The Board) is a statutory organisation which conducts

its business in terms of the Perishable Products Export Control

Act 9 of 1983. The Board also operates as an assignee for

the Department of Agriculture, Forestry and Fisheries under

the requirements of the Agricultural Product Standards Act

119 of 1990.

PPECB is a Section 3A Public Entity in terms of the Public

Finance Management Act of 1999. The registered office is

45 Silverboom Avenue, Plattekloof, Cape Town.

2 Summary of Significant Accounting PoliciesThe principal accounting policies applied in the preparation

of these financial statements are set out below. These policies

have been consistently applied to all the years presented,

unless otherwise stated.

2.1 Basis of Preparation

The financial statements have been prepared in accordance

with the effective South African Standards of Generally

Recognised Accounting Practices (GRAP) issued by the

Accounting Standards Board.

The financial statements have been prepared under the

historical cost convention, as modified by the revaluation of

land and buildings, financial assets and financial liabilities

held at fair value.

The preparation of financial statements in conformity with

South African Standards of Generally Recognised Accounting

Practices (GRAP) requires the use of certain critical accounting

estimates. It also requires management to exercise its

judgement in the process applying its accounting policies.

The areas requiring a higher degree of judgement

or complexity or areas where assumptions and estimates

are significant to the financial statements are set out in

note 4.

a) Standards, amendments and interpretations effective in 2010.

GRAP 09, Revenue from exchange transactions

GRAP 13, Leases

GRAP 14, Events after the reporting date

GRAP 17, Property, plant and equipment

GRAP 19, Provisions, Contingent Liabilities and

Contingent Assets

IAS 32 (AC125), Financial instruments: Presentation -

amended

b) Standards, amendments and interpretations effective in

2010 but not relevant.

Certain new accounting standards, interpretations and

amendments have been published that are mandatory for

accounting periods beginning on or after 1 April 2009 or later

periods but which the Board has not adopted. None of these

new standards, interpretations and amendments, as set out

below, are deemed relevant to the Board's operations.

GRAP 04, The Effects of changes in Foreign Exchange Rates

GRAP 05, Borrowing costs

GRAP 06, Consolidated financial statements

GRAP 07, Investment in associates

GRAP 08, Interest in joint ventures

GRAP 10, Financial Reporting in Hyperinflationary Economies

GRAP 11, Construction Contracts

GRAP 12, Inventories

GRAP 16, Investment property

GRAP 100, Non-current assets held for sale and

discontinued operations

GRAP 101, Agriculture

GRAP 102, Intangible Assets

IFRIC 13, Customer Loyalty Programmes

IFRS 3, Business combinations - revised

IFRS 6, Exploration for and Evaluation of Mineral Resources

IAS 12 (AC 102), Income Taxes

notes to the financial statements


c) Standards, interpretations and amendments to published

standards that are not yet effective.

Certain new standards, amendments and interpretations to

existing standards have been published that are mandatory

for the Board’s accounting periods beginning on or after 1

April 2010 or later periods but which the Board has not early

adopted, as follows:

GRAP 18, Segment reporting

GRAP 21, Impairment of non-cash-generating assets

GRAP 23, Revenue form non exchange transactions

GRAP 24, Budget information

GRAP 25, Employee benefits

GRAP 26, Impairment of cash generating assets

GRAP 104, Financial instruments

IAS 17 (AC 105), Leases

IAS 27 (AC 132) Revised, Consolidated and Separate

Financial Statements ( effective July 2009)

IFRS 3 Revised, Business Combinations

(effective July 2009)

IFRIC 17 (AC 446), Distribution of non cash assets to owners

IFRIC 18 (AC 451), Transfer of assets from customers

Management have considered the above and concluded that

it will not have a material effect on the Board's results. This

will be reassessed in the future.

2.2 Property, Equipment and Vehicles

Land and building comprise mainly office buildings. Freehold

land and buildings are shown at fair value, based on valuations

by external independent valuers every three years, less

subsequent depreciation for buildings. Any accumulated

depreciation at the date of revaluation is eliminated against

the gross carrying amount of the asset, and the net amount

is restated to the revalued amount of the asset. All other

property and equipment is stated at historical cost less

depreciation. Historical cost includes expenditure that is

directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount

or recognised as a separate asset, as appropriate, only when

it is probable that future economic benefits associated with

the item will flow to the Board and the cost of the item can

be measured reliably. All other repairs and maintenance are

charged to the statement of financial performance during

the financial period in which they are incurred.

Increases in carrying value arising on revaluation are credited

directly to revaluation reserve. Decreases that offset previous

increases of the same asset are charged against revaluation

reserve directly in equity; all other decreases are charged to

the statement of financial performance.

Land is not depreciated. Depreciation on other assets is

calculated using the straight-line method to allocate their

cost or revalued amounts to their residual values over their

estimated useful lives. The useful lives are approximately:

Buildings 50 years

Furniture and equipment 3 - 10 years

Technical equipment 3 - 8 years

Motor vehicles 5 years

Computer equipment 3 - 7 years

Costs associated with developing or maintaining computer

software programmes are recognised as an expense as

incurred. Minor assets of R5 000 or less are charged to the

statement of financial performance in full as an expenditure

in the year purchased.

The assets’ residual values and useful lives are reviewed, and

adjusted if appropriate, at each balance sheet date. An asset’s

carrying amount is written down immediately to its recoverable

amount if the asset’s carrying amount is greater than its

estimated recoverable amount.

Gains and losses on disposals are determined by comparing

proceeds with carrying amount. These are included in the

statement of financial performance. When revalued assets

are sold, the amounts included in revaluation reserve are

transferred to reserve funds.

2.3 Impairment of Non-financial Assets

Assets that have an indefinite useful life, such as land, are

not subject to amortisation and are tested annually for

impairment. Assets that are subject to amortisation are

reviewed for impairment whenever events or changes in

circumstances indicate that the carrying value may not be

recoverable. An impairment loss is recognised for the amount

by which the asset's carrying amount exceeds its recoverable

amount. The recoverable amount is the higher of the

asset's fair value less costs to sell and value in use. For the

purpose of assessing impairment, assets are grouped at the

lowest levels for which there are separately identifiable cash

flows. Non-financial assets that suffered an impairment are

reviewed for possible reversal of the impairment at each

reporting date.


2.4 Financial Instruments

Financial instruments carried on the balance sheet include

investments, cash and bank balances, receivables, trade

creditors and borrowings. The particular recognition methods

adopted are disclosed in the individual policy statements

associated with each item. The directors are of the opinion

that the carrying value of financial instruments approximates

fair value.

2.5 Financial Assets

The Board classifies its financial assets as held to maturity.

Management determines the classification of financial assets

at initial recognition.

This applies to investments where there are fixed or

determinable payments and fixed maturity dates and the

Board has the positive intent and ability to keep the

investments until maturity. These investments are measured

and recognised at amortised costs with interest-income

recognised in the statement of financial performance.

Assets in this category are classified as current assets if they

are expected to be realised within 12 months of the balance

sheet date.

The Board assesses at each balance sheet date whether there

is objective evidence that a financial asset or a group of

financial assets is impaired. If any such evidence exists for

available-for-sale financial assets, the cumulative loss – measured

as the difference between the acquisition cost and the current

fair value, less any impairment loss on that financial asset

previously recognised in profit or loss – is removed from equity

and recognised in the statement of financial performance.

2.6 Trade and Other Receivables

Trade receivables are recognised initially at fair value and

subsequently measured at amortised cost using the effective

interest method, less provision for impairment. A provision

for impairment of trade receivables is established when there

is objective evidence that the Board will not be able to collect

all amounts due according to the original terms of receivables.

Significant financial difficulties of the debtor, probability that

the debtor will enter bankruptcy or financial reorganisation,

and default or delinquency in payments are considered

indicators that the trade receivable is impaired. The amount

of the provision is the difference between the asset’s carrying

amount and the present value of estimated future cash

flows, discounted at the original effective interest rate.

The carrying amount of the asset is reduced through the use

of an allowance account and the amount of the loss is

recognised in the statement of financial performance. When

a trade receivable is uncollectible, it is written off against

the allowance account for trade receivables. Subsequent

recoveries of the amounts previously written off are credited

in the statement of financial performance.

2.7 Cash and Cash Equivalents

Cash and cash equivalents includes cash on hand and deposits

held at call with banks and bank overdrafts. Bank overdrafts

are shown within borrowings in current liabilities on the

balance sheet.

2.8 Trade Payables

Trade payables are recognised initially at fair value and

subsequently measured at amortised cost using the effective

interest method.

2.9 Provisions

A provision is recognised in the balance sheet when the

Board has a present legal or constructive obligation as a

result of a past event, and it is probable that an outflow of

economic benefits will be required to settle the obligation.

If the effect is material, provisions are determined by

discounting the expected future cash flows at a pre-tax rate

that reflects current market assessments of the time value

of money and, where appropriate, the risks specific to the

liability. Provisions are reviewed at each balance sheet date

and adjusted to reflect the current best estimate.

2.10 Reserves

i) Self-insurance reserve:

A self-insurance fund was established to manage the

uninsured risks of the Board.

ii) Asset replacement fund:

This reserve was established to provide for the replacement

of computer and technical equipment.

iii) Revaluation reserve:

This reserve was established due to surpluses that were

generated on the revaluation of land and buildings.

2.11 Revenue Recognition

Revenue comprises the fair value of the consideration received

or receivable for the sale of services in the ordinary course


of the Board's activities. Revenue is recognised in the

accounting period in which the services are rendered, net

of Value Added Tax.

Revenue is recognised when the amount of revenue can be

reliably measured and it is probable that future economic

benefits will flow to the Board. The amount of revenue is

not considered to be reliably measurable until all contingencies

relating to the delivery of service have been resolved. The

Board bases its estimates on historical results, taking into

consideration the type of customer, the type of transaction

and the specifics of each arrangement.

Interest income is recognised on a time proportion basis

using the effective interest method. When a receivable is

impaired the Board reduces the carrying amount to its

recoverable amount being the future estimated cash flow

discounted at the original effective interest rate of the

instrument. Interest income on impaired loans is recognised

using the original effective interest rate.

2.12 Offsetting

If the Board undertakes, in the course of its ordinary activities,

transactions that do not generate revenue but are incidental

to its main revenue-generating activities, the results of such

transactions are presented by netting any income with related

expenses arising on the same transaction, when this presentation

reflects the substance of the transaction or other event.

2.13 Leases

Leases of assets in which a significant portion of the risks

and rewards of ownership are retained by the lessor are

classified as operating leases. Payments made under operating

leases are charged to the statement of financial performance

on a straight-line basis over the period of the lease.

2.14 Retirement Benefits

The Board’s contributions to the defined contribution plans

are charged to the statement of financial performance in

the year to which they relate.

3 Financial Risk Management3.1 Financial Risk Factors

The Board's activities expose it to a variety of financial risks:

market risk (including currency risk, fair value interest rate

risk, cash flow interest rate risk and price risk), credit risk

and liquidity risk.

The Board acknowledges its responsibility for establishing

and communicating appropriate risk and control policies and

ensuring that adequate risk management processes are in

place. The Audit Committee is in place to assist the Board

in discharging its risk management obligations.

The principal objectives of risk management are to:

The Board's risk management processes, of which the systems

of internal, financial and operating controls are an integral

part, are designed to control and monitor risk throughout

the Board. For effectiveness, these processes rely on regular

communication, sound judgement and a thorough knowledge

of statutory and operational activities. Management is tasked

with integrating the management of risk into the day-to-

day activities of the Board.

Market Risk

(i) Foreign currency risk

Foreign exchange risk arises when future commercial

transactions or recognised assets or liabilities are denominated

in a currency that is not the entity’s functional currency.

Foreign currency risk is created due to the influence of

exchange rate fluctuations.

The Board has a policy not to take out cover on outstanding

foreign currency transactions due to the fact that these take

place on an ad hoc basis.

At balance sheet date, the Board had no financial assets

held in foreign denominated currencies.

ii) Cash flow and fair value interest rate risk

The Board's interest rate risk arises from investments held

Review the Board's risk philosophy, strategy, policies

and processes recommended by senior management;

Review compliance with risk policies and with the

overall risk profile of the Board;

Review and assess the integrity of the process and

procedures for identifying, assessing, recording and

monitoring of risk;

Review the adequacy and effectiveness of the Board's

risk management function and its implementation by

management;

Ensure that material risks have been identified, assessed

and receive attention.


to maturity as well as from cash and equivalents. The Board's

policy is to maintain its investments across a range of high-

credit-quality financial institutions. Interest rate exposure

and investment allocations are evaluated by management

on a regular basis.

This risk is managed by maintaining an appropriate mix of

investments with registered financial institutions. Interest

bearing investments are held with reputable financial

institutions in order to minimise exposure.

The sensitivity of the Board's cash flow to a change of 100

basis points in interest rates for variable rate instruments at

the reporting date would have impacted net results by R0,87

million (2009: R0,72 million). This analysis assumes that all

other variables remain constant.

Credit Risk

Credit risk is managed on an entity's basis. Credit risk arises

from cash and cash equivalents and deposits with banks and

financial institutions, as well as credit exposures to customers,

including outstanding receivables and committed transactions.

The Board only banks with major financial institutions of

high credit standing.

The table below shows the credit ratings and balances of

the financial institutions in which the Board held deposits at

balance sheet date:

Measures taken by the Board to limit credit risk to acceptable

levels include, inter alia, assesses the credit quality of the

customer taking into account its financial position, past

experience and other factors, the application of standard

credit acceptance procedures to assess potential clients, daily

monitoring of collectible balances at both branch and head

office level and the suspension of services to accounts which

exceed the Board's payment terms.

The table below shows the balances of the major counter-

parties at the balance sheet date:

Standard Bank

Rand Merchant Bank

Nedbank

ABSA

Financial Institutions2010

R2009

RFitch

Credit Rating

AA

AA+

AA

AAA

23,127,096

19,744,517

28,093,406

15,712,443

25,182,127

14,066,931

22,103,516

10,199,493

86,677,463 71,552,067

Account holders with amounts above R500 000 at balance sheet date:

Customer A

Customer B

Customer C

Customer D

2010R

2009R

CreditLimit

3,000,000

2,500,000

1,550,000

650,000

834,788

1,206,158

474,791

540,449

894,683

561,055

1,534,423

374,962

3,056,186 2,990,1617,700,000

The carrying amounts of financial assets included in the balance sheet represent the Board's exposure to credit risk in relation

to these assets. Management does not expect any losses from non-performance by these counterparties.


The Board's exposure to concentrated credit risk is low due

to the large number of customers and their dispersion across

different geographical areas and product sectors. The

dispersion of our income per product sector from statutory

levies is:

Citrus fruit

Grapes

Pome fruit

Stone fruit

Subtropical fruit

Vegetables

Flowers and bulbs

Canned products

Other products

2010 2009

39%

20%

19%

5%

2%

1%

1%

1%

12%

41%

20%

19%

5%

3%

1%

1%

1%

9%

100% 100%

Liquidity Risk

Prudent liquidity risk management implies maintaining

sufficient cash reserves. Due to the dynamic nature of

operational activities, the Board aims to be conservative in

funding by keeping committed cash reserves available.

The table below analyses the Board's financial liabilities into

relevant maturity groupings based on the remaining period

at the balance sheet to the contractual maturity date. The

amounts disclosed in the table are the contractual

undiscounted cash flow. Balances due within 12 months

equal their carrying balances as the impact of discounting

is not significant.

1 Year

2 to 5 Years

Over 5 Years

2010R

2009R

23,319,323

-

-

21,656,665

-

-

23,319,323 21,656,665

Trade andOther Payables

Closing balance

for period

3.2 Capital Risk Management

Capital is regarded as total reserves which is a result of

accumulated surpluses. The Board strive to maintain a

sufficient reserve as to sustain it's statutory obligations. The

level of the reserves are dependant on the approval of the

Minister of the Department of Agriculture, Forestry and

Fisheries as mentioned in the Statement of Changes in Net

Assets on page 70.

3.3 Fair Value Estimation

The carrying value less impairment provision of trade

receivables and payables are assumed to approximate their

fair values. The fair value of financial liabilities for disclosure

purposes is estimated by discounting the future contractual

cash flows at the current market interest rate that is available

to the Board for similar financial instruments.

The Directors are of the opinion that the carrying value of

financial instruments approximates fair value.

4 Critical Accounting Estimates and JudgementsEstimates and judgements are continually evaluated and are

based on historical experience and other factors, including

expectations of future events that are believed to be

reasonable under the circumstances.

The Board makes estimates and assumptions concerning the

future. The resulting accounting estimates will, by definition,

seldom equal the related actual results. The estimates and

assumptions that have a significant risk of causing a material

adjustment to the carrying amounts of assets and liabilities

within the next financial year. These estimates relate to the

provision for bad debts.

The fair value of financial instruments that are not traded in

an active market is determined by using valuation techniques.

The Board uses its judgment to select a variety of methods

and make assumptions that are mainly based on market

conditions existing at each balance sheet date. The asset

replacement reserve balance estimate has been adjusted by

the difference in the dollar foreign exchange and the

production price index for the year ended March 2009 for

imported appliances and instruments for measuring, checking

and testing activities.

5 Property, Equipment and Vehicles5.1 Land and Buildings

Book value as at 1 April

Cost

Accumulated surpluses on revaluation of land and buildings

Accumulated depreciation

Additions in the year

Revaluation of land and buildings

Cost


2010R

2009R

9,518,981

2,000,679

7,644,321

(126,019)

-

-

-

-

9,608,788

2,000,679

7,644,321

(36,212)

-

-

-

-

15,661,750 16,640,086Property, equipment and vehicles

12,219,634 12,356,475Land and buildings

9,429,174 9,518,981Cape Town - Erf 19927, Parow

with office building thereon

Cost



Depreciation for the year

Book value as at 31 March

(89,807) (89,807)

9,429,174 9,518,981

2,000,679

7,644,321

(215,826)

2,000,679

7,644,321

(126,019)

The property was revalued by BM Hofmeyr, a registered valuer as at 31 December 2007. Valuations were made on the basis

of recent market transactions, rentals of similar properties in the area and an insurance valuation of the property.


The property was revalued by C Hearn, a registered valuer as at 1 January 2008. Valuations were made on the basis of recent

market transactions, rentals of similar properties in the area and an insurance valuation of the property.


Cost




Revaluation of land and buildings

Cost


2010R

2009R

2,837,494

753,058

2,146,942

(62,506)

-

-

-

-

2,884,528

753,058

2,146,942

(15,472)

-

-

-

-

2,790,460 2,837,494Durban - Portion 1 of Erf 1736, Wentworth

with office building thereon

Cost





(47,034) (47,034)

753,058

2,146,942

(109,540)

753,058

2,146,942

(62,506)

2,790,460 2,837,494

5.2 Motor Vehicles


Cost

Less: Accumulated depreciation

Disposal in the year

Cost


2010R

2009R

326

103,454

(103,128)

-

(1,754)

1,754

24,310

103,454

(79,144)

-

-

-

- 326Motor vehicles

Cost




(326) (23,984)

- 326

101,700

(101,700)

103,454

(103,128)


5.3 Furniture and Equipment


Cost




Cost


2010R

2009R

595,071

2,696,484

(2,101,413)

442,022

(8,716)

(88,672)

79,956

437,051

2,370,014

(1,932,963)

326,470

-

-

-

692,893 595,071Furniture and equipment

Cost




(335,484) (168,450)

3,049,834

(2,356,941)

2,696,484

(2,101,413)

692,893 595,071

5.4 Technical Equipment


Cost




Cost


2010R

2009R

3,688,214

14,560,806

(10,872,592)

627,632

(160,199)

(6,302,274)

6,142,075

464,446

10,829,811

(10,365,365)

3,731,004

(8)

(8)

-

2,749,222 3,688,214Technical equipment

Cost




(1,406,424) (507,228)

8,886,164

(6,136,941)

14,560,806

(10,872,592)

2,749,222 3,688,214


5.5 Temporary Idle Assets and Assets held for Disposal

Land and buildings

Motor vehicles

Furniture and equipment

Technical equipment

2010R

2009R

-

-

-

-

-

-

-

-

- -

5.6 Cost of Assets with Zero Book Value

Land and buildings

Motor vehicles

Furniture and equipment

Technical equipment

2010R

2009R

-

101,700

390,587

4,094,538

-

1,754

479,288

10,127,643

4,586,825 10,608,685

6 Financial Assets Held to Maturity

Rand Merchant Bank

Nedbank

ABSA

2010R

2009R

19,744,517

28,093,406

15,712,443

14,066,931

22,103,516

10,199,493

63,550,366 46,369,940

7 Trade and Other Receivables

Trade debtors

Provision for impairment of receivables

Sundry debtors

Provision for loss on amounts receivable

2010R

2009R

19,578,370

(218,466)

19,359,904

430,570

(193,784)

20,864,888

(302,592)

20,562,296

434,904

(193,784)

19,596,690 20,803,416


As of 31 March 2010, trade receivables of R16,8 million (2009: R19,4 million) were fully performing.

Trade receivables that are less than 30 days past due are not considered impaired. As of 31 March 2010, trade receivables of

R483 663 (2009: R877,392) were past due but not impaired. These relate to a number of independent customers for whom

there is no recent history of default. The ageing analysis of these trade receivables is as follows:

Less than one year

Between one and three years

Greater than three years

2010R

2009R

183,487

34,060

919

158,143

114,015

30,434

218,466 302,592At 31 March

Between 30 and 60 days after statement

Greater than 60 days after statement

2010R

2009R

436,830

46,833

292,185

585,207

483,663 877,392

As of 31 March 2010, trade receivables of R218,466 (2009: R302,592) were impaired and provided for. The individually

impaired receivables mainly relate to producers and exporters, who are in unexpectedly difficult economic situations.

The ageing of these receivables is as follows:

Movements on the provision for impairment of trade receivables are as follows:

At 1 April

Provision for receivable impairment

Bad debt written off

Unused amounts reversed

2010R

2009R

302,592

218,466

(208,945)

(93,647)

213,663

302,592

-

(213,663)

218,466 302,592At 31 March


Cash at bank and in hand

SA PIP - Current and Call Account (Note 9)

2010R

2009R

18,374,499

4,752,597

21,250,122

3,932,005

23,127,096 25,182,127

8 Cash and Cash Equivalents

The SA PIP balance above is not available for use by the PPECB as it relates to a bank account held by PPECB on behalf of

SA PIP. PPECB is not permitted to use the funds for their own purpose.

For the purpose of the cash flow statement, the cash and cash equivalents comprise the following;

Cash and cash equivalents

2010R

2009R

23,127,096 25,182,127

23,127,096 25,182,127

The effective interest rate is between 0,1% and 7,55%.

Accrued expenses

SA PIP Project Funds (note 8)

External Audit Fees

Internal Audit Fees

Agricultural product samples

Workmen's compensation

Debtor deposits

2010R

2009R

14,315,027

4,752,597

307,237

158,875

122,101

349,996

3,313,490

13,979,226

3,932,005

314,890

187,517

82,410

291,811

2,868,806

23,319,323 21,656,665

9 Trade and Other Payables


10 Provisions

At 1 April

Provision for performance bonus

Used during the year

Provision for performance bonus reversed

Provision for performance bonus utilised

2010R

2009R

8,458,220

116,764

(8,458,220)

3,389,811

5,068,409

1,188,244

8,458,220

(1,188,244)

-

(1,188,244)

The provision

At 31 March

Provision for performance bonus

116,764 8,458,220

- -

116,764 8,458,220

The performance bonus payout is subject to approval by the Board. For the 2010 financial year, the Board approved the

performance bonus, prior to year end. The performance bonus was paid in March 2010. The provision above relates to the

CEO's performance bonus which was paid subsequent to the financial year end.

Agricultural product standards levies

Perishable products export levies

Container inspections

Ancillary services

Other services

2010R

2009R

94,103,830

33,672,528

2,725,006

11,665,989

3,238,177

89,299,614

29,215,435

2,686,094

10,729,810

2,949,072

145,405,530 134,880,025

11 Revenue

Interest received

Training and development

Profit on disposal of fixed assets

2010R

2009R

5,311,586

1,865,960

17,745

6,239,142

1,603,159

1,509

7,195,291 7,843,810

12 Other Income


Employee expenses

Operational activity expenses

Computer expenses

Office occupancy expenses

Administrative expenses

Depreciation

Corporate identity and stakeholder communication

Rental and lease expenses

External audit fees

Current year

Prior year under provision

Other services

Legal fees

2010R

2009R

93,226,892

23,958,961

4,008,140

3,461,613

1,966,240

1,879,075

1,663,266

2,428,992

366,060

352,260

23

13,777

82,592

89,884,988

21,286,870

4,246,023

3,002,762

2,123,887

836,503

1,153,442

2,188,766

396,590

314,890

27,400

54,300

229,079

133,041,831 125,348,910

13 Expenses by Nature

Finance charge

2010R

2009R

18,542 15,598

14 Finance Costs

15 TaxNo provision for tax has been made as the Board is not subject to normal income tax. Refer Income Tax Act (Act 58 of 1962),

Chapter 2, Part 1, Section 10,(1) ,(cA), (i),(bb)

16 CommitmentsCapital Commitments

No contractual commitments for future capital expenditure were made.

Operating Lease Commitments

The future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year

Later than one year and not later than five years

Later than five years

2010R

2009R

1,704,254

2,045,667

-

2,027,252

880,363

614,144

3,749,921 3,521,759


17 Reconciliation of Surplus for the Year

Net surplus for the year

Adjusted for:

Depreciation

Interest received

Interest paid

Loss / (Profit) on disposal of fixed assets

Cash inflow before changes in working capital

Changes in working capital

Decrease in accounts receivable

Increase in accounts payable and provisions

2010R

2009R

19,540,448

1,879,075

(5,311,586)

18,542

(17,745)

16,108,734

(5,393,389)

1,206,726

(6,600,115)

17,358,327

836,503

(6,239,142)

16,598

(1,509)

11,970,777

2,952,672

(5,019,848)

7,972,520

10,715,345 14,923,449Net cash generated by operations

Salaries and wages

Defined contribution costs - retirement fund

2010R

2009R

84,909,656

8,317,236

82,469,772

7,415,216

93,226,892 89,884,988

18 Employee Compensation and Benefits

19 Related Party TransactionRelated party transactions are for services rendered and outstanding balances arising from these services.

Some of the directors of PPECB serve on the boards of companies that have statutory arms length transactions with PPECB

of R2,513,925 (2009: R3,986,767) and are outstanding debtors of R245,927 (2009: R212,809) within the normal terms.

Directors' emoluments

Chairperson of the Board

Board members

Travelling reimbursements

2010R

2009R

768,047

106,747

526,102

135,198

806,610

114,536

541,809

150,265

6,218,059 7,906,710

Key management compensation

Salaries

Defined contribution towards retirement fund

5,450,012

4,873,236

576,776

7,100,100

6,529,851

570,249


Revenue and other income is R7,677,038 above budget. The budget was mainly based on volume estimates received from

the various industry bodies at budget time. Actual volumes inspected and exported during the year however exceeded industry

estimates resulting in higher than budgeted income.

Expenditure is R11,863,408 below budget due to the following main reasons:

Employee expenditure show a saving on budget due to higher than anticipated vacancies during the year.

Training expenditure show a saving on budget due to certain external training initiatives that were not implemented.

Operational expenditure show a saving on budget due to improved planning and efficiencies on staff placement resulting

in savings on travel, accommodation and S&T costs.

Computer expenses show a saving on budget due to the cancellation of certain license fees coupled to improved

efficiencies on network costs.

Depreciation cost is R789,335 over budget due to the majority of CAPEX purchases made early in the year as well as

an under provision in the budget.

20 Actual Income and Expenditure compared to Budgeted Income and ExpenditureThe budget for 2010 was approved by the Board of the PPECB on 5 March 2009.

Revenue and other income

2010 BudgetR

DifferenceR

144,923,783 7,677,038

2 19,540,446

144,923,781

96,605,528

8,746,366

24,851,540

5,232,441

3,303,087

2,913,030

1,089,740

2,083,049

99,000

-

(11,863,408)

(3,378,636)

(5,518,050)

(1,380,953)

(1,224,301)

(205,703)

(527,451)

789,335

(419,783)

(16,408)

18,542

2010 ActualR

152,600,821

Expenditure

Employee expenses

Training

Operational activity expenses

Computer expenses

Office rental and maintenance

Administrative expenses

Depreciation

Corporate identity and stakeholder

communication

Legal fees

Finance charge

133,060,373

93,226,892

3,228,316

23,470,587

4,008,140

3,097,384

2,385,579

1,879,075

1,663,266

82,592

18,542

19,540,448Surplus for the year


Revenue and other income

Agricultural product standards levies

Perishable products export levies

Container inspections

Value added services

Other services

Training and development

Interest on investments

Profit on disposal of fixed assets

2010 BudgetR

2009R

2010R

152,600,821

94,103,830

33,672,528

2,725,006

11,665,989

3,238,177

1,865,960

5,311,586

17,745

144,923,783

89,670,906

28,201,761

2,270,481

9,843,112

2,321,854

6,723,810

5,891,859

-

142,723,835

89,299,614

29,215,435

2,686,094

10,729,810

2,949,072

1,603,159

6,239,142

1,509

2 17,358,327

Expenditure

Administration expenses

Auditors remuneration

Computer expenditure

Consultation fees

Corporate identity and communication

Depreciation on historic cost

Directors' emoluments

Employee cost

Finance charges

Insurance

Laboratory expenses

Legal fees

License and affiliation fees

Movement in provision for bad debt

Office rental and maintenance

Overseas travelling

Publications and membership fees

Replacement of field equipment and consumables

Stationery

Telephone, fax and postage

Training

Travelling and subsistence

Water, electricity, rates and taxes

133,060,373

419,339

366,060

4,008,140

518,198

1,663,266

1,879,075

768,047

93,226,892

18,542

313,935

284,633

82,592

574,834

124,819

3,097,384

472,596

79,876

2,119,801

561,063

2,096,572

3,228,316

16,792,164

364,229

144,923,781

403,750

280,000

5,232,441

735,280

2,083,049

1,089,740

1,104,000

96,605,528

-

390,000

-

99,000

973,733

40,000

3,303,087

585,395

159,787

1,491,567

453,735

2,298,750

8,746,366

18,528,825

319,748

125,365,508

548,387

396,590

4,246,023

619,527

1,153,442

836,503

806,610

89,884,988

16,598

301,160

-

229,079

917,374

94,730

2,698,994

648,392

128,349

2,531,072

581,535

1,776,928

2,157,262

14,488,197

303,768

Surplus for the year 19,540,448

detailed statement of financial performance

unaudited


world cup tickets expenditure schedule

Tickets Acquired

2009 / 2010R’000

2008 / 2009R’000

2009 / 2010Quantity

- - -

- -

Distribution of Tickets

Clients/Stakeholders

Accounting Authority

Executive

Non-executive

Accounting Officer

Senior Management

Other employees

Family members of officials

Other Government entities

Audit Committee members

Other

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total - - -

Travel Costs



Executive

Non-executive

Accounting Officer

Senior Management

Other employees




Other

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

unaudited


2009 / 2010R’000

2008 / 2009R’000

2009 / 2010Quantity

Purchase of Other World Cup Apparel

Corporate and world cup branded shirts 450 56 -

Total world cup expenditure 450 56 -

Tickets Acquired after Year End (30 June 2010)

2010Quantity

2010R’000

- -

Distribution of Tickets acquired after year end



Executive

Non-executive

Accounting Officer

Senior Management

Other employees




Other

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total - -

Corporate Head Office:45 Silverboom Ave, Plattekloof, 7500

021 930 1134 | [email protected]

www.ppecb.com

ww

w.

.co.

za

1298 PPECB Annual Report - Amazon Web...

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