NAMC Annual Report Presentation to the Portfolio Committee on Agriculture and Land Affairs by
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Transcript of NAMC Annual Report Presentation to the Portfolio Committee on Agriculture and Land Affairs by
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NAMC Annual Report Presentation to the Portfolio
Committee on Agriculture and Land Affairs
by
TR Ramabulana
Strategic Positioning of SA Agriculture in Changing Global Markets
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Content of Presentation
• Business Plan 2005/06
• Annual Report 2005/06
• New developments 2006/07 – Markets and Economic Research Centre– Enterprise Development
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NAMC Strategic Programmes
• Council Activities
• Outreach/ Marketing Schemes
• Statutory Measures
• Research (Section 7 Investigation)
• Food Price Monitoring
• Budget
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Output & Service Delivery Trends of Council
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Sub-programme Outputs
Outputs Indicators Performance
Council Meetings
Agenda items Expected number
Actual numbers
Council sittings 11 7
Submissions to the Minister 26 31
Ministerial enquiries 31 4
Executive Committee meetings
2 2
Management Committee meetings
46 44
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Corporate Governance Structures
• Audit Committee
• Human resources Committee
• Risk Management Committee
• Executive Committee
• Management Committee
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Outreach/Marketing Schemes
• Target: 38 workshops reaching 2500 farmers
• Achieved: 21 workshop reaching 1736 farmers
• Reasons: Changed strategy since outreach didn’t provide key support such as markets access, capacity building, finance, etc
• New strategy focused on business linkages using Agribusiness and Technical Assistance Fund – Example of farmers assisted on database attached
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Enterprise Development
• Main ED deliverables are development of a database of black owned enterprises, the implementation of a business linkages model & use of Agribusiness Technical Assistance Fund .
• The assistance provided to emerging enterprises could be group into the following categories:
– Training courses: Making Markets Matters, International Negotiation Skills and Business Management skills
– Production of Promotional material: Business Cards, Information Booklets and Pull-ups stands
– Business plans and Feasibility studies– Attendance of Major Conferences: All Fresh Conference,
Market Access Conference & Southern Hemisphere Fresh Produce Conference
– International Marketing Visits: Major supermarkets in Netherlands and United Kingdom Royal Agricultural Show
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Enterprise Development
• Marketing Schemes- Government Supported Industry Driven.
– Detailed black farmers consultation • Farmers business support models
– Business linkages model– Franchise model– Co-operative model
• Management and growth of Database of emerging enterprises
• Agribusiness Technical Assistance Fund• Linkages with major buyers• Export promotion• Distribution of Market information to emerging
enterprises• Re-alignment of trusts to empowerment objectives
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Statutory Measures• 11 industries collected statutory levies
• R130 million was collected – this represents only 0.7% of production value at first point of sale
• Approximately 43% of levies were collected to finance research, 15% for information, 14% for transformation and 13% for export promotion
• In August 2005, the NAMC’s guideline of levies for transformation purposes changed from 10% to 20% of levies collected
• In the past 5 years, the market share of emerging farmers in the 10 industries (production) increased from 1.2% to 4.1%
• Cotton industry the highest – approximately 20% of production is coming from emerging farmers
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Statutory Measures
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Total value of production R’000
Levies collected R’000
Levies available for PDI R’000
Levies collection success rate
Citrus 2 600 15.0 1.3 94%
Cotton 240 4.8 0.6 100%
Deciduous Fruit - Pome fruit - Stone - Table grapes
2 124737
1 796
14.56.1
11.2
1.90.30.7
96%98%95%
Dried fruit 136 1.5 0.2 97%
Potato 2 529 14.3 1.4 99%
Sorghum 200 1.2 0.1 89%
Wine - Wintech (grapes) - WOSA - SAWIS
2 79112.716.9
6.0
4.13.40.9
100%100%100%
Dairy 3 812 6.3 1.9 28%
Winter cereals 2 847 19.6 1.3 90%
Total 19 812 130.1 18.1
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Estimated funding for Research in Autralia(2003)
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Industry Industry contribution Gov. contributionPork A$ 3,990,000 A$ 3, 340,000
Wool A$ 60, 220,000 A$ 16, 170,000
Dairy A$ 13, 450,000 A$ 14, 050,000
Fisheries A$ 5, 120,000 A$ 17, 390,000
Forest & wood products A$ 3, 690,000 A$ 2, 950,000
Grains A$ 65, 050,000 A$ 39, 150,000
Grapes and wines A$ 7, 850,000 A$ 7, 050,000
Horticulture A$ 31, 050,000 A$ 29, 620,000
Livestock A$ 26, 650,000 A$ 26, 650,000
Sugar A$ 5, 240,000 A$ 4, 310,000
Tobacco A$ 0, 210,000 A$ 0, 210,000
Cotton A$ 7, 140,000 A$ 7, 280,000
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Statutory Measures Introduced
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Sub-Programme Measure
Livestock New dairy statutory measure (Levy, record & returns, registration)
New red meat statutory measure (Levy, record & returns, registration)
Horticulture Appointment of Inspectors in Potato Industry
Amendment of the notice for statutory measure in the potato industry
Four year wine statutory measure
Field Crops Appointment of Ministerial trustees on the Lucerne, Sorghum & oil and protein seed development trust
Extension of the maize marketing scheme
New four year Winter Cereal statutory measure
Continuation of measures (registration, record and returns) in cotton
Amendments to statutory measures (registration, record and returns) maize, winter cereals, sorghum and oilseed
New statutory levy on sorghum
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CONTROL BOARDS STILL IN EXISTENCE AS AT 31 MARCH 2006
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NAME OF ENTITYNUMBER OF EXTENSIONS
GRANTED
REASON FOR CONTINUED EXISTENCE
Maize Board 11 Outstanding issues including court cases relating to the collection of outstanding levies
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Section Seven Investigations
• Fresh Produce section 7 investigation
• Game (wildlife ranching) section 7 investigation
• Solutions for sustainable export in the citrus industry
• Sorghum industry study
• Purpose:– Advise the Minister on any statutory intervention need– Provide industry with intelligence necessary to
increase competitiveness of the sector
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Markets & Economic Research Centre (MERC)
• The NAMC has established the MERC • Research Areas:
– Trade intelligence– Competitiveness– Supply chains analysis– Statistics – Rural Livelihoods
• Products:– Markets and Economic Research Fund– Section 7 Committees– Academic support programmes– Research library
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Examples of Research Projects
• Possibilities for fruit exports to Russia• Study to assess the impact of RSA class 1 fruit exports
to African and Indian Ocean Island countries• ASGI-SA Sub-sector studies (Regulatory constraints &
challenges, possible government intervention to remove bottlenecks)
• SA-New Zealand comparative study on effects of deregulation
• Study on taxes on the agricultural sector• Supply and demand models for potato industry• Rural and Urban Food price monitoring• Input cost monitoring• Input of deregulation on agricultural efficiency and
productivity
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Marketing and Trade
• Trade Intelligence
• 3rd Generation issues
• Tariffs
• Industry growth perspective
• Marketing of Brand SA Agriculture
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Trade Intelligence
• Monitor traditional markets and inform export industry
• Provide intelligence about new markets
• Use Agriculture Trade Attaches– Lobby for increase in number of Agric. Trade Attaches– Improve relations between SA agric export industries and
Trade Attaches
• Generate intelligence on:– Products– Markets and Constraints– Competitors– Price
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Trade Attaches
• South Africa has Agricultural Trade Attaches in the following countries:
– Brussels- Mr. Winston Makabanyane
– China- Mr. Mono Mashaba
– USA- Dr. Simphiwe Mkhize
– Italy- Ms. Margaret Mogapi
– Switzerland- Ms. Gerda van Dyk
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Trade Intelligence
• The NAMC undertook numerous studies aimed at assisting the fresh produce export industry to monitor developments in traditional markets as well as explore emerging markets. Studies undertaken include amongst other the following:
– Possibilities for fruit exports to Russia
– A study to assess the impact of RSA Class 1 exports to African and Indian Ocean island countries.
– Foreign market development for potato industry
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Tariff
• Forge close working relationship with International Trade Administration Commission (ITAC)
• Objective: – Assist industries with the necessary research that will
help build a good case for any tariff application
– Undertake research that will also help incorporate development issues (rural development, employment, AgriBEE, job creation) into any tariff investigation process.
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Food Price Monitoring
Targets achieved:
• Produced an annual publication known as Food Cost Review
• Distributed as widely as possible • Produced quarterly food price trends press release
• Monitor 75 different products
• Monitor both urban and rural food prices (2006)
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UTILIZATION OF 2005/06 NAMC BUDGET
INCOME R14,042,000
Made up of:• Transfer from DoA R12,163,000• Other income (Interest earned and roll-over) R
1,879,000
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ACTUAL EXPENDITURE R14,109,000
Made up of:• Personnel expenditure R 7,393,000• Administration R 3,203,000• Professional services R 1,542,000• Surplus R 1,971,000
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Emphasis of Matter
• Without qualifying the audit opinion, the AG drew attention to the following:
– Implementation of supply chain management
– Performance information
– Value added tax
– Irregular expenditure
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Staff Representation as at 31 March 2006
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Job Category
Council Secretariat
Historical background Historical backgroundAdvantaged
Disadvantaged
Total Advantaged
Disadvantaged
Total
Part-time 5 5 10 10Section Head
2 3 5
Economist
2 3 5
Financial staff
- 2 2
Secretaries
3 - 3
Admin staff
1 1 2
Support - 2 2Total 5 5 10 8 11 29
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Limitations and Future
• Limited execution powers: to be addressed through the review of the MAPA
• Limited funding: R16 million/ year.
• Other countries, e.g. AbareEconomis in Australia A$125 million/ year; ERS in USA US$65/year.
• Future focus areas:– Economic and market research– Trade intelligence– Export promotion– Marketing schemes– Statutory measures
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