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National Agricultural Marketing Council Annual Report 2011/12. Presentation to the Portfolio Committee Mrs. N Msimang (Chairperson) Mr. TR Ramabulana (CEO) Mrs. S Muvhulawa (CFO). Content. PART 1: GENERAL INFORMATION PART 2: ORGANISATIONAL OVERVIEW

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National Agricultural Marketing Council Annual Report 2011/12

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    1. National Agricultural Marketing CouncilAnnual Report 2011/12 Presentation to the Portfolio Committee Mrs. N Msimang (Chairperson) Mr. TR Ramabulana (CEO) Mrs. S Muvhulawa (CFO)


    3. Part 1 General Information

    4. Core Principles • Vision (To be an effective and efficient main advisor to the Minister of the Agriculture, Forestry and Fisheries (DAFF) and Industry on the marketing of agricultural products). • Mission (To advise the Minister of Agriculture, Forestry and Fisheries and directly affected groups on all agricultural marketing issues in the agriculture and food industry, taking into account the needs of stakeholders). • Values (accountable, act with integrity, value individual performance, value personal respect and equal treatment, act in partnerships with directly affected groups).

    5. Strategic Objectives • Increasing market access for all market participants. • Promotion of efficiency in the marketing of agricultural products. • Optimisation of export earnings from agricultural products. • Enhancement of the viability of the agricultural sector.

    6. Part 2 Corporate Governance

    7. Council Members Council Members appointed in October 2011 • Mrs NF Msimang Council Chairperson • Mr LD Maduna Council Vice Chairperson • Mr AM Cronje • Ms MM Gill • Dr LL Magingxa • Dr JL Purchase • Mr SC Symington • Mrs JM van derMerwe • Mr AD Young Council • Mrs TE Zimu

    8. Council Members Out going Council Members • Prof M Karaan (Vice-Chairperson) • Mrs M Mannya • Mrs C Molo • Mr D Montshwe • Mrs SE Moolman

    9. Part 3 Performance against Pre-Determined Objectives


    11. Dissemination of market information 100 % Compliance Disseminate Food Price Monitoring reports, Food Cost Review, Input Cost Monitor, TradeProbe and Fruit Flow reports through media The target number of publications produced and distributed was met: 4 Food Price Monitoring reports 1 Food Cost Review 6 Trade Probes 6 Input Cost Monitoring reports

    12. Trade analysis 100 % Compliance 320 % Compliance 200 % Compliance • All the reports were published and distributed to the media and on the NAMC website. The target number of 6 TradeProbe publications was produced and distributed. The target number for trade profiles was 5, a total of 16 commodity and product specific trade profiles were completed and published in the TradeProbes. The target number for trade profiles was 5, a total of 10 market profiles were completed and published in the TradeProbes.

    13. Linking farmers to markets 300 % Compliance • The following reports were, amongst others, produced: • Case Studies of Emerging Farmers and Agribusiness in South Africa • Potato case study of a successful black farmer fuelled by potato passion • Moringa study – A tree giving life to rural communities • The following reports were, amongst others, produced: • Assessment of Agricultural Contracts For Market Access In South Africa: A Smallholder’s Perspective • Action based reports – Feasibility study reports for the Segalo lamb feedlot enterprise and Hlakanyane potato project were completed The target was 2 reports, a total of 6 reports on issues pertaining to market access to emerging farmers were released and distributed

    14. Mapping, understanding and quantifying agro-food chains (including section 7 reports) 100 % Compliance • The following reports were, amongst others, produced: • Revitalising cotton production on the Makhatini Flats • Value chain study of the South African fertiliser Industry • South African Paprika Value Chain Study • South African Sugar Industry study: Lessons, Justifications and Challenges • The Seychelles Broiler Value Chain Analysis: A Competitive and Comparative Study 200 % Compliance The target of 2 Agri-benchmark reports was met, the reports were published and information were dissemination. The target was 4 agro-food chain reports, 8 reports were finalised and 3 working papers were finalised

    15. Capacity Building • The target of 4 academic research support programmes was met • The target was 8 seminars per year, a total of 15 seminars were presented by agricultural experts 100 % Compliance 187 % Compliance

    16. Statutory Measures The MAP Act makes provision for the introduction of four statutory measures, namely – • Statutory levies (section 15) • Control of exports (section 16) • Records and returns (section 18), and • Registration (section 19) Statutory measures must promote the objectives of the MAP Act, which are as follows – • Increase market access for all market participants • Promote the efficiency of the marketing of agricultural products • Optimize export earnings for agric products, and • Enhance the viability of the agricultural sector

    17. Levies collected past 11 years


    19. Summary of statutory measures applicable in South Africa 2012

    20. Summary of statutory measures applicable in South Africa (cont...)

    21. Levies collected per commodity - 2011 survey

    22. Performance against Pre-determined objectives 2011/12 financial year

    23. NAMC’s monitoring functions (4 aspects)

    24. 1. Level of statutory levies • Section 15 of the MAP Act stipulates that statutory levies should not be more than 5% of the price of an agricultural product at the first point of sale • Evaluation over a period not longer than three years • Currently it is 0.6%

    25. 2. Administration costs • The NAMC guidelines say that less that 10% of levy income be used for admin cost • The NAMC has other guidelines stipulating what should be regarded as admin cost • Currently, total admin cost is app 6% of total levy income

    26. 3. Transformation costs • NAMC guidelines stipulate that app 20% of levy income be spent on transformation • We also have a transformation policy indicating what should be regarded as transformation activities • Currently, 23% of total levy income is used for transformation activities

    27. 4. Status of statutory measures report • In terms of section of the MAP Act, the NAMC has to monitor the application of statutory measures • Shall evaluate and review such measures at least every two years • We decided to do it annually • Reports to be released by July every year

    28. Agribusiness Development

    29. Agribusiness Development • During the 2011/2012 financial year the NAMC through its Agribusiness Development Division collaborated with various institutions in the public and private sectors to • increase market access, • encourage new market development, and • build capacity of the developing producers • Apart from our agricultural industry partners, the NAMC collaborated with other institutions to support emerging producers, for example • Provincial Governments; • Land Bank; PPECB; DTI and its agencies • International Trade Centre of the United Nations (ITC)

    30. Development Schemes • The NAMC continued developing and implementing schemes with its industry partners and other public and private institutions. • The main purpose of the schemes are • to encourage the integration of black producers into the commercial mainstream • During the year under review the NAMC continued facilitating the implementation of the Vineyard scheme in collaboration with the Northern Cape department of Agriculture • Over 400 beneficiaries are benefiting from this scheme • Over 100 on-farm jobs have been created through this scheme

    31. Development Schemes continues..... • The NAMC collaborated with the Land Bank in facilitating the implementation of the Sunflower scheme in the North West • Initially there were 27 farmers targeted, but due to the unavailability of funds only 9 participated • The producers planted sunflower on 1200 ha • An off-take agreement was secured from an oilseed trader • Efforts are being made to include more farmers this coming planting season

    32. Training • During the 2011/2012 financial year the NAMC supported close to 225 emerging producers on various training programmes • One of the training courses is tailor-made for women entrepreneurs • Below are some of the highlights • Agribusiness Training course for Women • The NAMC hosted a three day training course for 32 women entrepreneurs • The objective of the course was to capacitate women entrepreneurs through marketing, financial and strategic management to assist them to built successful and thriving businesses. • The NAMC collaborated with provincial department, Land Bank, SAWEN, Cornell University and Buhle Farmers Academy

    33. Training continues... • Making Markets Matter Training Course • The NAMC in collaboration with its industry partners supported 20 agribusinesses to attend an intensive 5 day business development training workshop, which was also attended by other African agribusinesses, • The workshop is an intensive business development training workshop that prepares black agribusinesses from all over the African continent to operate their businesses successfully • The workshop was hosted by the NAMC in collaboration with Cornell University from the USA • The NAMC collaborated with Agri MEGA Empowerment Solutions, Hortgro,South African Pork Producers’ Organisation and Mpumalanga Economic Growth Agency to financially support the emerging producers to attend the training workshop

    34. Training continues... • Collaboration with Agricultural Colleges • Fort Cox College • Sixteen (16) fruit growers attended the course which was facilitated by Perishable Product Export Control Board (PPECB). • The objective of the training course was to equip fruit growers that are exporting through agents and those with potential to export with the necessary knowledge on • food quality and • safety standards • In order to comply with the importing countries’ procurement requirements

    35. Training continues... • Madzivhandila Agricultural College • Fifteen (15) emerging producers from Limpopo Province were capacitated on GlobalGap issues. • The training was facilitated by PPECB, and Madzivhandila • College provided the logistics. • The objective of the workshop was to introduce farmers in fruit production to the importance and technicalities of GlobalGap. • Glen College • Sixty-nine (69) producers from around the Free State • Province were capacitated during this collaboration.

    36. Export Programme • During the 2011/2012 financial year, the NAMC collaborated with its industry partners and international organisations to support emerging producers with their endeavours to export Below are some of the highlights • The NAMC in collaboration with Western Cape department of agriculture are collaborating on a Flemish funded government to support 15 emerging producers to export their products • The NAMC signed four (4) strategic agreements with exporters and industry associations to support the emerging producers • The collaboration will continue in the next financial • Fifteen (15) land reform projects with an average of 20 beneficiaries were identified for support.

    37. Agricultural Trusts

    38. Objectives of the Agricultural Trust Division • The Agricultural Trust division was established to manage and coordinate the communication process between the Minister for Agriculture, Forestry and Fisheries and Agricultural Industry Trusts. • The Industry Trusts are bodies that were established after the disbandment of the control boards in the 70’s, the assets were then transferred into the 13 Agricultural Trusts. • To date, the assets of the Industry Trusts amount to R1,7 billion that are managed by board of trustees, in which the Minister is represented. • The 26 ministerial trustees are entrusted to ensure that the Industry Trusts carry out the objectives in the Trust deeds, by aligning them to government transformation mandate.

    39. 26 Ministerial Trustees

    40. 26 Ministerial Trustees Cont…

    41. 26 Ministerial Trustees

    42. Capacity Building • Induction of new ministerial trustees • Four (4) new ministerial trustees went through an induction programme, were they were orientated on background of the NAMC, the objectives of the respective Trusts, their role in the respective trusts and their responsibility to the NAMC as well as the Minister. • Training workshop on Corporate Governance • All ministerial trustees attended a workshop on King III: Corporate Governance. The purpose of the workshop was educate trustees on good governance in business environment, as well as roles and responsibilities of being a Trustee • Agricultural Trust Workshop • On the 8 March 2012, the Agricultural Industry role players, has an opportunity to be addressed by the Minister. The Minister further stressed the need of working together to grow the sector. • Industry Trusts were also given the opportunity to present their transformation initiatives for the year.

    43. National Red Meat Development Programme (NRMDP) • Also house within the Agricultural Trust Division, is the National Red Meat Development Programme. • The programme is aimed at providing markets for the rural livestock farmers. Although presently based in EC, the programme will be expanding KZN, NW and MP in the coming financial year. • Custom Feeding Programme • The NRMDP maintained the operations of the 3 Custom Feeding Programmes in Nchora, Mount Frere and Fort Cox College of Agriculture. Part of the intake of animals, 180 farmers were educated on animal health, husbandry and markets for livestock. • Three (3) additional herdmen were employed for the Nchora CFP. A intern in animal production was also employed to manage the 2 CFP’s.

    44. Auctions • The programme has been a pioneer in the re-establishment of auctions in the Province, in particular amongst the communal areas. In total, a gross income of R7 577 840 has been injected into the NRMDP activity areas of the Eastern Cape, with 1 978 cattle going through the formal market and the income directly into the rural economy. • Pre-slaughter Agreements • The programme has made tremendous strides to securing a market for the animals with the large retail chains. Further negotiations still pending.

    45. Beef Cattle Farming Indaba ‘Prosperity Through Livestock Farming’. • The NAMC went on an aggressive fundraising drive for the programme by hosting the Beef Cattle Farming Indaba on 27 October 2011 at the Fort Cox College of Agriculture. • Beside fundraising the event was also an education tool to farmers in the areas to educate farmers of the the wealth they have of livestock and opportunities available. • The event was graced by all role players within the Red Meat Industry as well as government

    46. Human Resources Management

    47. To develop workforce plans and strategies that seeks toattract; develop and retain talent The HR developed the terms of reference to review the Human Resource Plan. The service provider was identified. Three positions were created on the structure: Information Technology Manager Technical Assistant Post Doctorate Fellowship

    48. Attract; develop and retain talent Conti… The following positions were advertised and filled: Communication Officer Trust Officer Economist Receptionist Administrator Internships for the Red Meat Project

    49. Attract; develop and retain talent Conti… Five (05) employees tendered their resignations and exist interviews were conducted: Senior Researcher Economist: Finance Clerk: Administrator and Internship

    50. Learning & Development As part of skills development sixteen (16) employees registered for various Degrees. Sixteen (16) employees were sent for various training. A workshop on the Disciplinary hearing was conducted and (09) employees attended the workshop.