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PRESENTATION OF THE ANNUAL REPORT OF
THE   NATIONAL AGRICULTURAL MARKETING
COUNCIL TO  THE PORTFOLIO COMMITTEE 12 NOVEMBER
2004 BY  

Mr MG Rathogwa Chairperson Ms D. Ndaba
Council member Mr V.W. Mvabaza Council member
Market driven production pays
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LEGISLATIVE MANDATE
The NAMC was established in terms of sections 3
and 4 of the Marketing of Agricultural Products
Act, No. 47 of 1996 (hereinafter referred to as
the Act) as amended by Act No. 59 of 1997 and Act
No. 52 of 2001.   The mandate of the NAMC is
spelled out in section 9(1)(a) of the Act, which
reads as follows   The NAMC shall, when
requested by the Minister or of its own accord,
investigate the establishment, continuation,
amendment or revocation of statutory measures and
other regulatory measures affecting the marketing
of agricultural products, evaluating the
desirability, necessity or efficiency of the
measures and, if necessary, proposing
alternatives to the establishment, continuation,
amendment or repeal of a statutory measure or
other regulatory measure and report to and advise
the Minister accordingly.

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• Furthermore, section 9(1)(e) of the Act
  stipulates that the NAMC may undertake
  investigations and advise the Minister regarding
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• agricultural marketing policy and its
  application
• the coordination of agricultural marketing policy
  in relation to national economic, social and
  development policies and international trends and
  developments
• the possibilities for promoting the objectives of
  the Act, mentioned in section 2(2) of the Act
  and
• the effect that marketing of products has on the
  objectives mentioned in section 2(2) of the Act.

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In addition, in terms of section 9(1)(f) of the
Act, the NAMC shall monitor the application of
statutory measures and report thereon to the
Minister and shall review such measures at least
every two years.
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   RELEVANCE OF THE NAMC IN THE DEREGULATED
MARKETING ENVIRONMENT   1. Globalization is
taking place at a faster pace and this demands
provision of timeous, accurate and relevant
information to participants. 2.  The second
economy needs more support, more especially in
marketing information, which is the key to
business operations.  3.   Demand for government
intervention in terms of statutory levies is
increasing. This needs a dedicated institution
to investigate application and monitor
implementation.  4.   Looking outside the
country, many countries have dedicated marketing
institutions to promote their agricultural
products.   5. In a sector such as agriculture
you need an institution, which has the necessary
capacity and experience to advise government on
various policies and strategies. This is
provided for in the Act in terms of categories in
which members of the Council are appointed.
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NAMC ACTIVITIES FOR 2004/05 IN LINE WITH THE
STATE OF THE NATION ADDRESS BY THE PRESIDENT ON
21 MAY 2004
  Encouraging the growth and development of the
first economy and increasing its possibility to
create jobs   The NAMC investigates, advises
and monitors the implementation of statutory
measures in the agricultural sector. These
measures relate to the registration of
role-players, rendering of records and returns
and collection of levies.   These actions
support gathering and distribution of
information, and provide resources for
agricultural research and development. These are
fundamental to agricultural sustainability for
both commercial and emerging sectors of the two
economies. In addition, the NAMC ensures that
over and above research and information, 10 of
the funds collected from role-players is used for
specific emerging sector development projects.
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Increase support to agricultural activities  
The NAMC conducts investigations together with
role-players in order to address problems in
agricultural marketing and also to identify
opportunities. The information coming out of
these investigations is useful for both
commercial and emerging sectors for devising
strategies to take advantage of opportunities and
sort out bottlenecks.   In addition the NAMC
is going to investigate how the different
policies that have been passed in agriculture
impact on agricultural development. The aim is
to advise on how these policies can best be
coordinated so that they complement one another.
This will also ensure effective co-operative
governance between the implementing bodies of
government and other agencies.
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  Increase support to agricultural activities in
emerging sector   NAMC will provide
marketing information to emerging farmers by
holding 36 workshops nationally. The target is
to reach 3600 farmers and distribute information
booklets. In this way emerging farmers will
be   -       more market oriented in their
farming activities -  connected with
organized agriculture and will thus be more
informed about agricultural marketing
issues -     assisted to identify potential
markets and how to access them.    
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Contribution to the conclusion of the WTO
negotiations   NAMC is conducting a study on
international agricultural Support and
Competitiveness and this is to be finalized by
July 2004. Information emanating from this study
will be used at WTO negotiations where South
African negotiators will have specific
information about levels of government support to
farmers in different countries. The information
will also be used by commercial and emerging
farmers in their interaction with government and
other investors.
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MISSION STATEMENT
To provide strategic advice to the Minister of
Agriculture and directly affected groups (DAGs)
on all agricultural marketing issues in the
agriculture and food industries, taking into
account the needs of stakeholders.
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VISION
To be the most efficient and effective marketing
advisor in the marketing of agricultural products
in South Africa.
CORE BUSINESS
Provide accurate, relevant, independent and
timely information.
CORE VALUES
To be accountable, to act with integrity, to
value individual performance, to value personal
respect and equal treatment, to act in
partnership with directly affected groups.
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Organisational structure of the NAMC
Council
Chairperson
Audit Committee
Secretary
Chief Financial Officer
Section Head Horticulture
Section Head Administration
Section Head Field Crops
Section Head Livestock
Economists (3)
Bookkeeper (Vacant)
Secretary
Economists (2)
Economists (2)
Personnel Officer (Vacant)
Finance Officer
Communication Officer (Vacant)
Finance Clerk
Messenger/Driver
Registry Clerk
Cleaner (Vacant)
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2003/04 BUDGET UTILIZATION
The activities of the NAMC were informed by-
The Marketing of Agricultural Products Act, No 47
of 1996.- The Agricultural Sector Strategic
Plan. - State of the Nation Address -
Ministers Budget Speech
Council Meetings (including Executive Committee
meetings) Committee Meetings of Council
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UTILISATION OF 2003/04 NAMC BUDGET
    INCOME R 10 422 411   Made up of       
Transfer from DoA R 10 109 000      Interest
and other R 313 411
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ACTUAL EXPENDITURE R 9 664 203 Made up
of        Personnel expenditure R 5 096
234      Administration R 2 177 529     
Professional services R 2 424 049     
Provision for audit fees R (33 609)     
Surplus R 758 208  
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OUTPUTS AND SERVICE DELIVERY TRENDS COUNCIL
Sub-programmes Outputs Indicator Performance
Council Agenda items Expected number Actual number
Council Council sittings 11 11
Council Presentations by delegates 10 13
Council Submissions to the Minister 45 51
Council Ministerial enquiries 50 62
Council Executive Committee meetings 4 3
Council Management Committee meetings 45 42
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WORKSHOPS HELD WITH BLACK FARMERS
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FORMER CONTROL BOARDS AND DATES OF DISBANDMENT
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CONTROL BOARDS STILL IN EXISTENCE AS AT 31 MARCH
2004
Name of entity Number of extensions granted Reasons for continued existence
Meat Board 6 months to Dec 98 7 months to July 99 12 months to Jul 00 12 months to Jul 01 12 months to Jul 02 12 months to Jul 03 12 months to Jul 04 The only remaining issue is the court case regarding medical benefits between the Meat Board and ex-employees on the one side and a medical scheme on the other. In February 2004 the Board indicated that this matter had been resolved and that the Scheme could be repealed by 31 July 2004.
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CONTROL BOARDS STILL IN EXISTENCE AS AT 31 MARCH
2004
Name of entity Number of extensions granted Reasons for continued existence
Maize Board 6 months to Jun 98 6 months to Dec 98 7 months to Jul 99 12 months to Jul 00 12 months to Jul 01 12 months to Jul 02 12 months to Jul 03 12 months to Jul 04 Outstanding issues include the transfer of trademarks to the Maize Trust and court cases relating to the collection of outstanding levies.
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CONTROL BOARDS STILL IN EXISTENCE AS AT 31 MARCH
2004
Name of entity Number of extensions granted Reasons for continued existence
Wool Board 6 months to Jun 98 6 months to Dec 98 7 months to Jul 99 12 months to Jul 00 12 months to Jul 01 12 months to Jul 02 18 months to Dec 03 12 months to Jul 04 The Wool Board reached a settlement with its Australian counterparts regarding its share of the intellectual value of the Woolmark. The Board also decided to write off all outstanding debts. It is envisaged that it will not be necessary to extend the Wool Scheme for another period.
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OUTPUTS AND SERVICE DELIVERY TRENDS -
ADMINISTRATION
 
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OUTPUTS AND SERVICE DELIVERY TRENDS -HORTICULTURE
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Citrus and Deciduous Fruit Industry Trust Reports (submissions) advising the Minister on the expiry of terms of Ministerial trustees were compiled. Reports (submissions) on the appointment of Ministerial trustees were delivered to the Minister. Submission on appointment of trustees forwarded to the Minister.
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OUTPUTS AND SERVICE DELIVERY TRENDS - FIELD CROPS
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Sorghum Trust, Oil and Protein Seeds Development Trust, Winter Cereal Trust, and Maize Trust Submissions were compiled advising the Minister on the expiry of the terms of office of Ministerial Trustees. Submissions on the appointment of Ministerial Trustees were delivered to Minister. The Minister confirmed the appointment of six Winter Cereal Ministerial Trustees on 11 July 2003 and a Cotton Ministerial Trustee on 1 August 2003. The appointment of Ministerial Trustees for the Sorghum Trust and Oil and Protein Seeds Development Trust is still pending.
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Food Price Monitoring Committee

• Six monitoring points in each Province
• Monitors work in collaboration with Provincial
  Departments of Agriculture
• Collect food price data and forward to NAMC for
  processing and analysis

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OUTPUTS AND SERVICE DELIVERY TRENDS - LIVESTOCK
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OTHER PROJECTS AND INVESTIGATIONS
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