AGRICULTURAL RESEARCH COUNCIL Presentation to Parliament 11 October 2007 Presented By Chief Executive Officer Dr Shadr

1. AGRICULTURAL RESEARCH COUNCILPresentation to Parliament11 October 2007Presented By Chief Executive Officer Dr Shadrack Moephuli

2. ARC DELEGATION • Ms. Jean Davidson – Council Chair • Mr. Elton Bosch – Council Deputy Chair • Mr. Thabiso Mudau – Stakeholder relations

3. MANDATE OF THE ARC • OBJECTIVE: To promote agriculture and the industry in order to contribute to the improvement of the quality of life of the people of RSA • THROUGH: • Conduct research • Develop technology • Transfer technology that promotes agriculture and industry.

4. 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

5. 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)

6. Agricultural Research Council Research Farms, institutes & Offices 34 30 52 Potgietersrus 53-62 29 21-22 65 33 8 Johannesburg 38-42 80 50-51 28 Vryburg 75-78 25 26-27 17-18 5 24 16 Upington 37 45-48 Bloemfontein 6-7 Durban 32 35-36 Middelburg 72-73 9 2 1 20 79 43-44 East London 23 66-71 31 10 74 12-15 81 3 11 64 Cape Town 83 49 4 19

7. 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

8. ARC’S ACHIEVEMENTS IN DELIVERING ON ITS MANDATE

9. Sugar Dry Bean • The speckled sugar dry bean cultivar Sederberg was bred at ARC-GCI to improve the resistance of dry bean cultivars to fungal diseases. • Sederberg is resistant to the fungal diseases rust and angular leaf spot and is resistant to bean common mosaic virus (BCMV). • It is high yielding and widely adapted especially in the high rainfall areas where fungal diseases are a problem. • ARC released Sederberg, a red speckled sugarbean (Type II growth habit) with rust (UR-11 and UR-13), ALS and Bean Common Mosiac Virus resistance.

10. PRODUCTION GUIDELINES • Another focus on competitiveness is improved production practices that lower production costs, increase profitability and add value to products: 9000 copies of Maize Information Guide (MIG 2006) containing technical information were printed and mailed to 7000 producers. A total of 1000 copies were also supplied to the Small-Scale farmer section of Grain SA for use in their study groups. • Two Production guidelines, namely “Guidelines for the Production of small grains in the Summer Rainfall Region” and “ Guidelines for the Production of small grains in the Winter Rainfall Region” were made available during April 2006 to 6500 producers, extension officers and scientists. These production guides contain technical information and updated improved technologies such as effective growth regulators, herbicide resistance, seeding density, pest and disease control as well as information on explained cultivars.

11. MAIZE • A quality protein maize (QPM) cultivar SAM1109 has been developed and breeder seed produced for seed companies, 420 tons of certified maize seed of open-pollinated cultivars were produced for resource poor and developing farmers, primarily in Limpopo, Mpumalanga and the Eastern Cape provinces, in partnerships with a small seed company.

12. Vitamin A deficiency – 33% Model for household food production – nutrition education, cultivation & growth monitoring programm MRC + ARC + International Collaboration Food based approach to alleviate vitamin A deficiency Introduction of orange fleshed sweet potato, other vit. A rich vegetables – carrots, swiss chard, butternut etc. Biofortification Training in 6 provinces: E. Cape, Free State, Limpopo, Gauteng and Mpumalanga – 200 school garden projects Food Security, Nutrition and Health

13. Establishment of vineyard Low cost soil preparation Planting of cuttings from vines known for mass grape production Production of Villard blanc 39 tons per Hectare Eksteenskuil producers CULTIVATION OF GRAPES

14. 45% SA drief fruit industry depends on nectarines New nectarine cultivars Yellow skin – world first Plant Breeders Rights Red/yellow skin – good for poor handling and storage environments Fruit don’t lose firmness as rapidly; easier to harvest and market over a longer time COMPETITIVENESS & MARKET ACCESS

15. Mango scale is a major pest. In 1996 a parasitoid was imported from Thailand, mass-reared at the ARC in Nelspruit, released in many mango producing areas of Mpumalanga and Limpopo for the biological control of mango scale. In 2006, another major survey was conducted in most mango producing areas ranging from Mussina in the north of Limpopo to Port Edward in the south of KZN to determine the current status of the imported biocontrol agent. The parasitoid was recovered from all sites, even in areas such as Tshipise and Thohoyandou in Limpopo and the entire KwaZulu/Natal, where it had never been released. This confirms the successful establishment and remarkable distribution of the parasitoid in all mango producing areas in South Africa. Impact of biological control enables most mango producers to rely on natural control, using an estimated 40% less toxic insecticides. BIOCONTROL

16. ANIMAL PRODUCTION • PUTUVELD model + GIS prediction for production potential and climate risk for grasslands • Production traits for Dairy Cattle – 1000 Farmers benefitted. • Breeding index for feedlot profitability completed, used in 9 provinces and reached +/- 1000 farmers. • Established rangeland monitoring programme with DoA. • Technology to control and manage build up of lactic acid in ruminants – feedlot animal can eat more and produce more milk, improved weight gains etc. • LidcatTM technology for positive identification of livestock – stock theft deterrent • Performance tests on livestock owned by communal farmers – raised market prices of beef animals from black farmers

17. ANIMAL DISEASES • Developed and validated a test for detection of infection of cattle with Brucella abortus – Brucella Rapid Test (BRT) • Easy to use and interpret • Combined with vaccination strategy to protect uninfected female animals • Developed an improved test for Rift Valley Fever that uses a recombinant protein instead of the whole virus. Currently validating the test and will commercialize if successful. • Classical swine fever (CSF) surveillance is ongoing and in the affected province of the Eastern Cape, in excess of 12,998 samples have been tested. • Ongoing surveillance of transboundary animal disease (e.g. Foot and Mouth & African swine fever). • Training on serological diagnosis of avian influenza to enhance SADC country participants’ abilities for surveillance of AI. • Continued the Pesticide Residue Monitoring programme

18. The Public Support Services Division • Poor farming practices – bad crop rotation resulted in accumulation of soil – borne plant pathogens – impact has been diminishing crop yields among commercial and small scale farmers in KZN. • Early warning forecast of locust outbreak information to DoA through the ICOSAMP (Information Core for Southern African Migrant Pests) – ARC coordinates and releases to SADC Countries. • Herbicide trials on pompom weed indicate a growing alien invasive, particularly in Gauteng. • Identified 5 potential biological control agents for an emerging weed (balloon vine) during a field survey in Argentina. • Identified plant feeding mites on imported fruit tree cuttings with pest species not present in RSA. Prevented inadvertent importation of new alien invasive species and potential pests. • Developed land suitability maps for 6 biofuel crops (sunflower, soya bean, maize, grain sorghum, sugar cane and sugar beet).

19. The Public Support Services Division (cont.) • Utilized coarse resolution satellite imagery (used for drought monitoring and crop estimation) to develop products from data retrieved from the geostationary MSG (Meteosat Second Generation) satellite. • National asset register comprised of a collection of over 13 000 maps – land suitability • 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. • Spiders as biological control agents

20. In Partnership with the International Centre for Development Oriented Research in Agriculture (ICRA), ARC has conducted 16 field studies with provinces on various priority research issues identified by provinces. The aim of the studies was: (i) to enhance inter-disciplinary teamwork among researchers, (ii) link research and extension in responding to farmer's priorities, (iii) empower farmers to identify and elaborate on their research needs and enable farmers to contribute their own knowledge into the research agenda, and (iv) provide insight for researchers to design responsive interventions. PARTNERSHIPS & RESEARCH Participatory Research with Farmers

21. Commercialisation of Indigenous plants Devils’ Claw Project: Two hundred farmers (200) are participating in the production and processing of Devils’ Claw indigenous medical plant in Ganyesa, North West Province in partnership with NW Department of Agriculture, Bophirima Municipality, and Traditional Leaders. ARC Skills transferred to farmers include artificial propagation, grading & weighing, packaging ,as well as business management and marketing of the processed product. Commercialisation of This ARC Research Product resulted in the creation of a Public Company owned and operated by beneficiaries: Sekamo Pharmaceuticals cc for Devil’s Claw. INDIGENOUS KNOWLEDGE SYSTEMS Devil’s claw spiny fruit showcasing claw-like structures

22. Oil Seed Crop Production for Biofuels Oil Seed Crop Farmers: In partnership with Limpopo Department of Agriculture,35 farmers in Limpopo, were trained on production technologies, business skills and activities that will enable them to become sustainable SMMEs linked to Biodiesel Production for the Biofuels industry. BIOFUELS/SMME DEVELOPMENT Farmers participating in practical soil preparations at the Farmer Development Centre in Tompi Seleka

23. Human Resources Overview • The ARC Invested 3% of our labour cost (including statutory skills-levy contributions) in human resource development. A large 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. • The Professional Development Programme had 60 candidates, 26 males and 34 females. Of the 60 candidates, two completed their PhD studies and eight completed MSc degrees. • 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 126 candidates.

24. QUALITY OF SCIENTIFIC CAPACITY

25. DEVELOPMENT OF SCIENTIFIC CAPACITY

26. MANAGING OUR FINANCES

27. AUDITOR GENERAL’S REPORT & AUDIT COMMITTEE REPORT FOR 2005/06

28. AUDIT QUALIFICATION • Non-compliance with IAS 16 Property, Plant and Equipment -The useful lives and residual values of property, plan and equipment were not reviewed in the current period as 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.

29. AUDIT EMPHASIS OF MATTER Auditor-General raised Emphasis of matter items: • Weaknesses in internal control • Implementation of Supply Chain Management • Changes to financial statements • Performance information • WHAT’S THE OUTCOME FOR 2006/07?

31. Summary of Financial performance for nine years

32. SEVEN YEAR REVIEW GRAPH

34. NEW DIRECTION • Scientific capacity & excellence • Broadening diversity – skills base • Improving internal systems (HR, Financial & risk management policies) • Communicating research outputs – visibility, relations with user groups • Organizational structure & performance • Competitiveness for research funds • Collaboration – adjunct posts, students • Capital Expenditure – infrastructure

35. CONCLUSION • The year under review has been one of many changes in the ARC, particularly in leadership. • Responding to compliance requirements has brought challenges on Human Resource Management and the need for new policies and systems. • Improvements in performance continue at the forefront of the ARC researchers and other personnel. • The Council and employees of the ARC wish to thank the Honourable Minister, Ms. Lulu Xingwana for her leadership and support. • We also thank the support and leadership of the Agriculture and Land Affairs Portfolio Committee. THANK YOU!