NAMC STRATEGIC PLAN AND BUDGET PRESENTATION PORTFOLIO COMMITTEE ON AGRICULTURE; 09 March 2006

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NAMC STRATEGIC PLAN AND BUDGET
PRESENTATIONPORTFOLIO COMMITTEE ON
AGRICULTURE09 March 2006
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STRUCTURE OF PRESENTATION

• Questions from last Portfolio Committee briefing
• Highlights for the 2005/06
• The Strategic Plan for 2006/07
• Budget 2006/07

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QUESTIONS ANSWERS

• How much is expected from the Wool Trade Mark
  when will the funds be transferred?
• The financial statements will be published before
  end of March 2006
• Expect R15,4 million
• Translate the NAMC booklet to other official
  languages
• The Parliamentary Officer on Agriculture received
  copies of translated documents
• We need copies of your research reports on
  competitiveness
• The Parliamentary Officer Received copies of the
  Competitiveness report,, as well as copies of the
  Food Cost Review and the report on Statutory
  Measures
• Employ someone with expertise on assisting black
  agribusiness in marketing
• Restructured the administration and hired a
  Senior Person to Head the Enterprise Development
  Division
• What is your capacity to undertake Economic
  Research
• Created an Economic Research Division, with key
  staff, research strategy and funding.

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GUIDING DOCUMENTS

• Marketing of Agricultural Product Act
• The Strategic Plan for South African Agriculture
• Draft Transformation Charter for Agriculture
• Accelerated and Shared Growth Initiative for
  South Africa

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MANAGEMENT

• Leadership
• Council headed M Karaan 9 other Council Members
  all part-time
• Management
• Appointed CEO
• CFO
• MANCOM

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HIGHLIGHTS
7
FOOD PRICE MONITORING

• Collaboration with DoA, University of Pretoria
  StatSA
• Published Food Cost Review Quarterly (4) Food
  Price Trends
• Trained 80 Provincial Food Price Monitors (PDA
  Extension personnel)
• Captured rural food price data from identified
  rural stores Spazas
• Working on an MOU between NAMC, StatSA, DoA and
  PDA
• NB See the latest copies of the Food Price Trend
  Press Release and Food Cost Review Report

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STATUTORY MEASURES INVESTIGATIONS

• Dairy- Recommended Approved (Industry requested
  to submit a transformation plan)
• Red Meat- Recommended Approved (for only 2 yrs)
• Sorghum- Recommended Approved
• Imported Cotton Lint-Recommended non-approval
  immediate implementation of the Cotton Strategic
  Plan
• Winter Cereal- On-going
• Cotton- Registration, Records and Returns
• Conditions on the use of levy funding
• 20- Transformation
• 10- Administration
• 70- Research, Development, Consumer Assurance,
  Communication
• NB See the 2005 Report on Statutory Measures.

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USE OF STATUTORY LEVIES COLLECTED
Total value of production R million Levies collected R million Levies available for PDIs R million Levy collection success rate
Citrus 2 600 15.0 1.3 94
Cotton 240 4.8 0.6 100
Dairy 3 812 6.3 1.9 28
Deciduous Fruit Pome Fruit Stone Fruit Table Grapes 2 124 737 1 796 14.5 6.1 11.2 1.9 0.3 0.7 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 Winetech (Grapes) WOSA SAWIS 2 791 12.7 16.9 6.0 4.1 3.4 0.9 100 100 100
Winter Cereal 2 847 19.6 1.3 90
Total 19, 812 130.1 18.1
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SECTION 7 INVESTIGATIONS

• Fresh Produce Markets
• Competitiveness Study
• Game Section 7 Investigation
• Sorghum Section 7 Investigation
• Citrus Exports Section 7 Investigation
• Input Cost Monitoring Section 7 Investigation

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MARKETING SCHEMES(On-going)

• Red Meat (with MIT Structures)
• Market based Incentives on livestock marketing
  (Auction, Feedlot, Direct to Abattoir, Local
  market)
• AgriBEE ownership options
• Infrastructure requirements
• Stock improvement requirements
• Training
• Grains (Cooperatives)
• Working through Co-operatives on Contract growing
  models (Input Finance, Machinery, Marketing,
  Skills Development )
• AgriBEE ownership options
• Citrus
• Marketing (Export incentives schemes, local
  markets through retailers)
• Orchards Ownership Models
• BEE options in logistics
• AgriBEE ownership options in Fruit Exporting
  Companies

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SRATEGIC PLAN FOR 2006/07
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RESTRUCTURING

• Changed administration from a Commodity base to
  Competency base
• The Marketing Act Review Process will in future
  inform the structure and mandate of the Council
• Four Key competencies are
• Marketing Trade
• Economic Research
• Enterprise Development
• Statutory Measures

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MARKETING TRADE
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MARKETING

• Marketing Schemes on Citrus, Grains Red Meat
  (Incentives, viable empowerment models, etc)
• Produce a series of Annual Industry Specific
  Growth Perspectives
• Collaborate with Table Grape Industry to
  undertake Market Research on Russia China
• Collaborative market research with other sectors
  will be undertaken
• Address marketing issues coming from the CEOs
  Forum and the Presidential Working Group on
  Commercial Agriculture (competition, business
  costs, exports, food safely, etc

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ECONOMIC RESEARCH
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ECONOMIC RESEARCH

• Create a Research Fund - NAMC to contribute an
  amount to start the Fund
• Other donor encouraged to contribute
• Fund ring-fenced for Economic Research purpose
  only
• Research committee to come-up with research
  themes
• Call for proposals from Universities other
  research associates

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RESEARCH FOCUS AREAS

• Competitiveness
• FPM, Input Cost Monitoring, Trade Data
• Price Analysis
• Consumer Markets, Emerging Markets, Competitor
  Analysis
• Markets
• Sector Studies, Repositioning, Trade Strategy,
  Generic Marketing of SA Products
• Supply Chains
• Transaction Costs, Benchmarking, Logistics, Cross
  Border Supply Chains
• Policy
• Levy, Transformation, Marketing Schemes, AgriBEE
• Research Interns

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ECONOMIC RESEARCH

• Undertake Section 7 Investigations on
• Input Cost Monitoring
• Goats
• Citrus
• Food Price Monitoring
• Food Cost Review
• Quarterly Food Price Trends
• Forge closer links with the AEASA (Present Fresh
  Produce Investigation Report at AEASA conference)
• Partnerships with international research orgs eg.
  IFPRI

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ENTERPRISE DEVELOPMENT
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KEY ACTIVITIES

• Develop implement models for Agribusiness
  Support
• Models
• Business Linkages as an empowerment model
• Cooperatives/ agribusiness as key points of
  leverage
• Work with structures currently receiving levies
  (eg, citrus, livestock, dairy and potato) to
  address AgriBEE targets eg, procurement,
  ownership, training, etc
• Engage Fresh Produce Markets to develop strategy
  for increased black farmers/wholesaler/transporter
  s/processors participation
• NB Target CASP and MAFISA as a key incentive

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DATABASE

• Supplier database with profiles of Commercial
  Black Agribusinesses
• Develop supplier relations with major buyers of
  Ag. Products in RSA
• Link agribusiness in supplier database to
  identified buyers
• Use ATAF to support Agribusinesses technical
  requirements

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AGRIBUSINESS TECHNICAL ASSISTANCE FUND

• Create an Agribusiness Technical Assistance Fund
  to support Agribusinesses in database - NAMC to
  contribute an amount to start the Fund
• Trusts and Forums encouraged to contribute
• Fund ring-fenced for Black Agribusiness Technical
  Support only
• A policy on the use of the fund will be developed
• The fund will be used on a cost sharing basis
  with agribusiness contributing a certain amount
• Agribusiness will be encouraged to apply for
  specific technical assistance, eg. Appointment of
  technical advisors on AgriBEE transactions,
  Business Plan, Certification such as EuroGap, etc

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EXPORT EXPOSURE VISITS

• Develop policies on export exposure visits
• Identify agribusiness in Supplier Database ready
  for export
• Identify Exports Training opportunities
• Partner with other organizations to facilitate
  visits

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STATUTORY MEASURS
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KEY ACTIVITIES

• Investigations
• Monitoring and review
• Reports to Department of Agriculture
• Registration of Directly Affected Groups
• Crop Estimate Liaison Committee oversight

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PLANNED WORKSHOPS

• Planning four workshops
• Industry Specific Competitiveness meetings
• Trade strategy workshop in collaboration with DoA
  OECD
• Marketing incentives for the emerging sector
• Report of the Fresh Produce Investigation (at
  AEASA conference)
• Planning Breakfast Meetings
• Launch of Quarterly Food Price Trends
• Presentation of Annual Food Cost Review

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BUDGET
Council and Administration Marketing Trade Enterprise Development Statutory measures Economic Research Total
Salaries R4,100,113.00 R830,000.00 R830,000.00 R830,000.00 R1,287,700 R7,877,813.00
Administration R3,097,520.00 R575,600.00 R365,000.00 R231,000.00 R608,000.00 R4,877,120.00
Professional Services R1,140,000.00 R160,000.00 R855,000.00 R120,000.00 R3,860,000.00 R6,135,000.00
Stores R140,000.00 0 R10,000.00 R10,000.00 R15,000.00 R175,000.00
Total R9,115,673.00 R1,565,600.00 R2,060,000.00 R1,191,000.00 R5,770,700.00 R19,702,973.00
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THANK YOU