Service Level Agreement

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 AGRICULTURAL RESEARCH COUNCILPresentation to
ParliamentPresented By Chief Executive
Officer Dr Shadrack Moephuli
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ARC Group Executives

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

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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.

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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

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ARCS 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)

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ARCS 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

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ARC DIVISIONS AND GEOGRAPHICAL COVERAGE

• ARC DIVISIONS AND GEOGRAPHICAL
• COVERAGE Four Research Divisions
• Grains and Industrial Crops (3 main facilities)
• Horticulture (3)
• Livestock (2)
• Public Support Services (3)

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• ARCS ACHIEVEMENTS IN DELIVERING ON ITS MANDATE

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The Grains and Industrial Crops Division

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

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The Grains and Industrial Crops Division cont.

• 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
• Successfully introduced pigeon pea in Makhathini,
  Mokopane, Rustenburg and Groblersdal high
  protein source vit. B.
• 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.
• Other crops flax, cotton, khaki bos hemp.

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The Horticultural Division

• 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.
• 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.
• Introduced essential oils from herbs in the
  Eastern Cape and Mpumalanga.
• During the 2005 season a systems approach to
  quarantine security was evaluated for false
  codling moth on Hass avocado.
• Supplied 51 thousand blueberry plants and 64
  thousand sweet cherry rootstocks to clients in
  the Free State, Western and Eastern Cape
  Provinces as Mpumalanga.
• Extensive research programme on indigenous leafy
  vegetables
• Developed a potato line that is resistant to the
  larvae of potato tuber moth (Phthorimea)
• 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.

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The Livestock Division

• Research to detect and manage possible outbreaks
  of African horse sickness (AHS)
• 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.
• 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
• 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.

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The Public Support Services Division

• Irrigation System Evaluation Courses
• Introduced the ripper planter which enables
  small-scale farmers to cultivate and plant in one
  operation.
• Silt fences for combating soil erosion
• Land Care Project in the KwaMhlanga district of
  Mpumalanga
• Conducted Impact Assessment Survey to evaluate
  the influence of the Land Care Project in the
  farming community of Qunu in the Eastern Cape.

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The Public Support Services Division cont..

• Introduced the In-field Rainwater Harvesting
  (IRWH) technology projects
• Developed a new ground-breaking approach to crop
  estimation
• 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.
• National asset register comprised of a collection
  of over 13 000 maps land suitability
• Developed an ELISA (Enzyme Linked ImmunoSorbet
  Assay) kit
• 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.
• 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

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Initiatives Taken By The SRL Division

• Promotion of urban agriculture
• Beekeeping Commerciallisation
• Disease appraisal
• Biofuels research
• Aquaculture Makhathini flats Sekhukhune
• Beef profit partnership
• Field testing of contagious abortion in cattle
• Legume Protein Programme
• Mushroom Farming commercialisation
• Quality fruit production strategies
• Indigenous crops program
• Capacity building programme -- (e.g. 29
  professional RD staff - 19 were from the ARC and
  10 from provincial Department of Agriculture).

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Human Resources Overview

• 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.
• 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.
• 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.

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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
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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
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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
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PROFFESIONAL DEVELOPMENT PROGRAMME
PDP Students enrolled Total Black Female
PHD 9 9 5
MSc 21 21 12
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Financial Overview
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Assets
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Liabilities
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Seven Year Review
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Seven Year Review Graph
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auditor generals report Audit Committee Report
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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.

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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

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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!