AGRICULTURAL RESEARCH COUNCIL

Presentation to ParliamentPresented By

Chief Executive Officer Dr Shadrack Moephuli

ARC Group Executives

• Dr. Lukhele – Olorunju – GIC• Dr. Masia – SRL• Ms. Ginindza – BDIR• Dr. Mbati – LBD• Dr. Molope – PSS• Mr. Changfoot – Finance (acting)

MISSION OF THE ARC

To be a nationally and internationally recognized centre of excellence in agricultural science and innovation Conduct research Develop technology Transfer technology that promotes agriculture and industry.

SPECIFIC ARC GOALS IN SUPPORT OF NATIONAL PRIORITIES

– The sustainable use of the natural resource base and the environment

– The competitiveness of the South African agricultural sector

– Increased participation, equity and access to the sector (by resource-poor farmers)

– Support for the production of high quality, safe food, and– Generating knowledge for an informed society

ARC’S CONTRIBUTION TO NATIONAL INITIATIVES

The ARC plays an important role in the following :

• Comprehensive Agricultural Support Programme (CASP), • Integrated Food Security and Nutrition Programme (IFSNP),

Poverty Alleviation, • Land Reform for Agricultural Development (LRAD),• Accelerated and Shared Growth Initiative of South Africa

(ASGISA),• Government regulatory responsibilities, (eg sanitary and

phytosanitary controls)• Ensuring a sustainable use of limited natural resources (soil,

water, and agro-biodiversity)

ARC’S CONTRIBUTION TO THE AGRICULTURAL SECTOR

– Optimum value addition on primary agriculture products to the agricultural value chain

– Sustainable use of natural resources– Research on climate change– Elimination of diseases and pests that undermine

agricultural production– Effective entry point control of “imported” weeds, pests &

diseases– Development and growth of regional and international

markets for agricultural products– Commitment to regional initiatives eg NEPAD & SADC

ARC DIVISIONS AND GEOGRAPHICAL COVERAGEARC DIVISIONS AND ARC DIVISIONS AND

GEOGRAPHICALGEOGRAPHICALCOVERAGE – Four Research COVERAGE – Four Research

Divisions:Divisions:1.1. Grains and Industrial Crops (3 Grains and Industrial Crops (3

main facilities)main facilities)2.2. Horticulture (3)Horticulture (3)3.3. Livestock (2)Livestock (2)4.4. Public Support Services (3)Public Support Services (3)

ARC’S ACHIEVEMENTS IN DELIVERING ON ITS MANDATE

1. Involvement in several communities in the Limpopo province to support farmers to change from their mono-crop maize production system to a system based on principles of conservation farming.

2. Introduced two genes-one rust resistant and the other halo blight resistant thereby increasing dry bean yields by 20% and 18% respectively.

3. Developed a meristem culture technique for producing disease-free dry bean seed.4. Developed ten open pollinated maize varieties and evaluated six experimental hybrids and

four check hybrids on-farm in “Mother-VEVO (verification and observation) Trails” in order to (i) enable farmers to identify the best varieties for their areas and preferences, (ii) get feedback from farmers, (iii) quicken release and adoption and (iv) demonstrate good agronomic practices.

The Grains and Industrial Crops Division

8. Made significant breeding research progress for tolerance to a destructive maize disease, namely Grey Leaf Spot (Cercospora zeae-maydis). Nie in-bred maize lines tolerant to this disease have been released to commercial maize seed companies

9. Successfully introduced pigeon pea in Makhathini, Mokopane, Rustenburg and Groblersdal – high protein source & vit. B.

10. Initiated a programme to enhance the production potential of cassava in South Africa through breeding and agronomical studies, aimed at the utilisation of cassava as both a food crop and for industrial purposes, especially for starch production.

11. Other crops: flax, cotton, khaki bos & hemp.

The Grains and Industrial Crops Division cont….

1. Initiated Timbali Technology Incubator situated in the Mbombela region of Mpumalanga – Consortium to create a centre for the establishment and support of emerging farmers in the cut flower industry.

2. Trials were conducted to reduce or avoid lenticel dis-colouration, which appears mainly on the Mango cultivars Tommy Atkins and Keitt, through adapting pre- and post-harvest practices.

3. Introduced essential oils from herbs in the Eastern Cape and Mpumalanga. 4. During the 2005 season a systems approach to quarantine security was evaluated for

false codling moth on Hass avocado. 5. Supplied 51 thousand blueberry plants and 64 thousand sweet cherry rootstocks to clients

in the Free State, Western and Eastern Cape Provinces as Mpumalanga.6. Extensive research programme on indigenous leafy vegetables7. Developed a potato line that is resistant to the larvae of potato tuber moth (Phthorimea)8. In collaboration with the Department of Food Science of Stellenbosch University, the

Institute of Plant Analysis in Germany and the Raps Foundation of Germany, played a leading role in the development of rapid screening methods for bio-active compounds in green rooibos and honeybush.

The Horticultural Division

1. Research to detect and manage possible outbreaks of African horse sickness (AHS)2. ARC-OVI has been designated as a regional laboratory for testing samples collected in

the course of national surveillance for Al in various African countries.3. Classical swine fever (CSF) surveillance is ongoing and in the affected province of the

Eastern Cape, in excess of 9,000 samples have been received from the Butterworth area, the epicenter of the outbreak

4. In a joint venture with KK Animal Nutrition, we developed a promising new way of combating rumen acidosis, an undesirable and limited condition, with Bolifor Megamilk, thereby increasing energy supply for milk production.

The Livestock Division

1. Irrigation System Evaluation Courses2. Introduced the ripper planter which enables small-scale farmers to cultivate and plant in one

operation.3. Silt fences for combating soil erosion 4. Land Care Project in the KwaMhlanga district of Mpumalanga5. Conducted Impact Assessment Survey to evaluate the influence of the Land Care Project in

the farming community of Qunu in the Eastern Cape.

The Public Support Services Division

8. Introduced the In-field Rainwater Harvesting (IRWH) technology projects9. Developed a new ground-breaking approach to crop estimation10. Utilised coarse resolution satellite imagery (used for drough monitoring and crop estimation) to develop

products from data retrieved from the geostationary MSG (Meteosat Second Generation) satellite.11. National asset register comprised of a collection of over 13 000 maps – land suitability 12. Developed an ELISA (Enzyme Linked ImmunoSorbet Assay) kit 13. The ICOSAMP network (Information Core for Southern African Migrant Pests) is mandated by the

SADC-FANR Secretariat to monitor migrant pest movements in the SADC region and has fostered co-operation between Ministry of Agriculture officials in 13 SADC member countries.

14. The National Collections of insects, arachnids, nematodes and fungi of the ARC are among the most important and comprehensive biological and taxonomic reference resources of their kind in Africa,

16. Spiders as biological control agents

The Public Support Services Division cont…..

1. Promotion of urban agriculture:2. Beekeeping Commerciallisation:6. Disease appraisal:7. Biofuels research 8. Aquaculture – Makhathini flats & Sekhukhune 9. Beef profit partnership:10. Field testing of contagious abortion in cattle:11. Legume Protein Programme:12. Mushroom Farming & commercialisation: 13. Quality fruit production strategies:14. Indigenous crops program:15. Capacity building programme -- (e.g. 29 professional R&D staff - 19 were from the ARC and 10 from

provincial Department of Agriculture).

Initiatives Taken By The SRL Division

1. The ARC Invested 3% of our labour cost (including statutory skills-levy contributions) in human resource development. Alarge portion of this was invested in the Professional Development Programme and the ARC Transformational Capacity Building Programme on the formal and informal training of core staff. The bulk of the budget went to skills development to support employment equity.

2. The Professional Development Programme had 60 candidates, 26 males and 34 females. Of the 60candidates, two completed their PhD studies and eight completed MSc degrees.

3. Continued with the capacity building programme which was launched in April 2005. The purpose of the programme is to create a pool of young scientists from the previously disadvantaged groups. During the period under review the programme had 43 candidates.

Human Resources Overview

QUALITY OF SCIENTIFIC CAPACITY Qualifications of Staff Number % of Total Staff

Research staff with PhD degrees

146 5.4%

Research staff with masters degree

257 9.5%

Staff enrolled for Honours degree

6 0.2%

Staff enrolled for Masters degrees

36 1.2%

Staff enrolled for PhD degrees

36 1.3%

Total Staff 2,698

DEVELOPMENT OF SCIENTIFIC CAPACITY 2004/05 Staff Qualifications

Number Percentage # of Black

% Black # of Woman

% Woman

Research staff with PhD degrees

139 16.13% 15 10.79% 40 28.78%

Research staff with MSc degrees

250 29.00% 49 19.60% 114 45.60%

Total PhD and MSc 389

Research Staff 862

Total Staff complement 2,643

DEVELOPMENT OF SCIENTIFIC CAPACITY ANALYSIS OF STAFF CURRENTLY ENROLLED ON

PHD AND MSC STUDIES Staff Qualification Total

Number Black Female

Core Research Staff enrolled for PhD degrees

36 9 12

Core Research Staff enrolled for MSc degrees

34 14 21

Non-core staff enrolled for PhD degrees

2 2 0

Non-core staff enrolled for MBA degrees

5 4 1

PROFFESIONAL DEVELOPMENT PROGRAMME

PDP Students enrolled

Total # Black # Female

PHD 9 9 5

MSc 21 21 12

Financial Overview

Assets

Liabilities

Seven Year Review

Seven Year Review Graph

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1998/9 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06

Parliamentary Grant External Income Total ExpenditureTotal Remuneration Cost Other Expenditure

auditor general’s report & Audit Committee Report

Audit Qualification • Non-compliance with IAS 16 Property, Plant and Equipment

-The useful lives and residual values of property, planand equipment were not reviewed in the current periodas required by IAS16 Property, Plant and Equipment

• Existence of Accounts Receivable– The receivables balance includes an amount of R49,7 million which the entity claims is

due to it in respect of VAT on the Parliamentary grant that is recoverable from the transferring agent. At the date of this report, the entity had not received any confirmation from the transferring agent in respect of the acceptance of this liability.

Audit Emphasis of MatterAuditor-General raised Emphasis of matter items:

• Weaknesses in internal control • Implementation of Supply Chain Management • Changes to financial statements• Performance information

conclusion• The ARC is a world-class research organisation. It is our intention to raise our relevance and

visibility to higher levels and to address the needs of the South Africa public more effectively. We will also continue to seek opportunities for adding value to important initiatives that are taking place in the SADC and NEPAD. It is important therefore for us to get increased support to enable us to fully mature locally and to maintain regional and international credibility.

THANK YOU!