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FOODBEV SETA FOODBEV SETA Food and Beverages Manufacturing Higher Education and Training Portfolio Committee 27 th October 2010 Ravin Deonarain CEO

FOODBEV SETA Food and Beverages Manufacturing

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FOODBEV SETA. FOODBEV SETA Food and Beverages Manufacturing. Higher Education and Training Portfolio Committee 27 th October 2010 Ravin Deonarain CEO. Introduction and Appreciation. Thanks and Appreciation: Hon Minister of Higher Education and Training - PowerPoint PPT Presentation

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Page 1: FOODBEV SETA Food and Beverages Manufacturing

FOODBEV SETA

FOODBEV SETAFood and Beverages Manufacturing

Higher Education and Training Portfolio Committee

27th October 2010

Ravin Deonarain

CEO

Page 2: FOODBEV SETA Food and Beverages Manufacturing

Introduction and Appreciation• Thanks and Appreciation:

– Hon Minister of Higher Education and Training– Hon Chairperson of Higher Education and Training Portfolio

Committee – Hon Committee Members

• Representatives of FoodBev Seta– Council Chairman: Mr Willie Prinsloo– Corporate Services Manager: Ms Liezl Gerryts– CFO: Mr Raj Rajcoomar– Skills Development Projects Manager: Mr Khotso N Potele– CEO: Mr Ravin Deonarain

Ravin Deonarain

Page 3: FOODBEV SETA Food and Beverages Manufacturing

Presentation Outline• Food & Beverages Manufacturing Sector

• Funds Management

• NSDS Performance

• Customer Satisfaction

• Portfolio Committee’s Specific Emphasis

• Strategic Plans F2010/11

• SWOTs Analysis

• Provincial Allocations

• Youth Unemployment

Ravin Deonarain

Page 4: FOODBEV SETA Food and Beverages Manufacturing

FoodBev SectorEconomic Characteristics

• Diverse sector

• Price sensitive products

• High production volumes – costs driven

• Capital intensive and technology driven

• Intense brand competitiveness

• Dominance - large companies and multinationals

• Large number small food manufacturers (85%)

• Mergers and acquisitions (brands)

Ravin Deonarain

Page 5: FOODBEV SETA Food and Beverages Manufacturing

FoodBev Sector

• Typical Companies

SA Breweries, Kellogg's, Nestle, Frito-Lay Simba, ABI, Coke

Cola, Tiger Brands, Pioneer Foods Premier Foods, Clover,

Oceana Fishing, Enterprize Meats, Nabisco, McCain's Foods,

Beacon, Cadbury’s

Bokomo, Distell, KWV ………….

Ravin Deonarain

Page 6: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

Economic Characteristics

• Manufacturing Sector Output 28 % of GDP

• FoodBev Contribution 18% of manufacturing sector

• Wages 13,7 % of manufacturing

• GDP Contribution 5% of GDP

• Employment 2 % of total economy

• Employees 220 000 (80% large comp)

• Companies 7 500 registered/1800 levy

(BER, 2009)

Page 7: FOODBEV SETA Food and Beverages Manufacturing

Income/Expenditure Trend (Rm)

Ravin Deonarain

Page 8: FOODBEV SETA Food and Beverages Manufacturing

Highlights

• Unqualified Audit Report (10 yrs)

• Expenditure Rate 96%

• Surplus R 7 m– Ploughed back into grants

• Sector Challenge – Companies to accelerate progress of learning programmes– Increase Disbursement Rate - Reduce cash-on-hand

Ravin Deonarain

Page 9: FOODBEV SETA Food and Beverages Manufacturing

NSDS Targets Performance

Service Level Agreement

2009/10

Ravin Deonarain

Page 10: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

2.1 80% OF LARGE FIRMS’ AND 60% OF MEDIUM FIRMS’ EMPLOYMENT EQUITY TARGETS SUPPORTED BY SKILLS

DEVELOPMENT. IMPACT ON OVERALL EQUITY PROFILE OF FIRMS AND SECTORS MEASURED

Success Indicator 2009/10

TargetPERF %age

80% LARGE 118 148 125%

60% MEDIUM 130 162 125%

Page 11: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

2.2 SKILLS DEVELOPMENT IN AT LEAST 40% OF SMALL LEVY-PAYING FIRMS SUPPORTED AND

IMPACT MEASURED

Success Indicator 2009/10

TargetPERF %age

40% SMALL 330 435 132%

Page 12: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

2.5 ANNUALLY INCREASING NUMBER OF SMALL BEE FIRMS AND BEE CO-OPERATIVES SUPPORTED BY SKILLS

DEVELOPMENT. SURVEY PROGRESS AND MEASURE IMPACT.

Success Indicator 2009/10

TargetPERF %age

BEE Co’s supported 32 48 150%

Page 13: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

2.7 700 000 workers have achieved ABET Level 4

Success Indicator

ABET Level 1- 4

2009/10

TargetPERF %age

– Entered 367 998 272%

– Completed 75 503 671%

Page 14: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

2.8. 125 000 WORKERS ASSISTED TO ENTER AND AT LEAST 50% SUCCESSFULLY COMPLETE

APPROVED PROGRAMMES

Success Indicator

Learning Programmes

2009/10

TargetPERF %age

– Entered 768 1760 229%

– Completed 460 1058 230%

Page 15: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

3.2. 2000 non-levy paying enterprises, NGOs, CBOs, and community-based co-operatives supported by skills development. Impact of support

on sustainability measured with a targeted 75% success rate.

Success Indicator

Skills Dev Support

2009/10

TargetPERF %age

NGOs, CBOs, Co-ops

Non Levy Paying

Companies

66 115 174%

Page 16: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

4.1. 125 000 unemployed people assisted to enter and 50% successfully complete programmes

Success Indicator

Learning Programmes

2009/10

TargetPERF %age

– Entered 500 1057 211%

– Completed 385 695 181%

Page 17: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

4.2. 100% of learners in critical skills programmes covered by sector agreements and Nat Priorities from local FET and HET institutions

assisted to gain work experience. 70% find placement in employment or self-employment.

Success Indicator 2009/10

TargetPERF %age

To Gain Work Experience

- - -

Find placement after

completion

50 69 138%

Page 18: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

4.3. 10,000 young people trained and mentored to form sustainable new ventures and at least 70% of new ventures in

operation

Success IndicatorNew Venture Creation

2009/10

TargetPERF %age

– Entered - 31 310%

– 70% operational after 12 months

21 47 224%

Page 19: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

5.1. By March 2010 each SETA recognises and supports at least five Institutes of Sectoral or Occupational Excellence (ISOE) within public and

private institutions and through Public Private Partnerships (PPPs)

Success Indicator 2009/10

TargetPERF %age

ISOE’s recognised/supported

1 1 100%

Page 20: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

5.2. Each province has at least two provider institutions accredited to manage the delivery of a new venture creation

qualification. 70% of new ventures still operating after 12 months

Success Indicator 2009/10

TargetPERF %age

New Venture Creation Provider

4 5 125%

Page 21: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

5.3. Measurable improvements in the quality of the services delivered by skills development institutions

Success Indicator 2009/10

TargetPERF %age

SAQA Audit of FoodBev SETA

1 1 100%

Page 22: FOODBEV SETA Food and Beverages Manufacturing

Customer Satisfaction

Ravin Deonarain

Page 23: FOODBEV SETA Food and Beverages Manufacturing

Customer Satisfaction

Ravin Deonarain

Page 24: FOODBEV SETA Food and Beverages Manufacturing

Major Highlights• Exceeded Targets

• Unqualified Audit Report – 10 yrs

• Strong Focus

– Artisan Development

– Processing and Packaging Operations

– Leadership and Management Development

• World Cup 2010

– Training of food and beverages vendors/suppliers - fanparks

Ravin Deonarain

Page 25: FOODBEV SETA Food and Beverages Manufacturing

Performance ScorecardF 2009/10

Ravin Deonarain

Percentage Score

0% - 60% 61% - 80% 81% - 100% 101% - 120% >120%

Rating 1 2 3 4 5

Performance Description

Performance is Poor

Performance is below

Requirements

Performance meets

Requirements

Performance is above

Requirements

Performance is Excellent

Score: 4.80 = Excellent

Page 26: FOODBEV SETA Food and Beverages Manufacturing

Year-on-Year PerformanceYear 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10

DoL

Rating

Excellent

5/5

Excellent

5/5

Excellent

5/5

Above

Reqm

4/5

Above

Reqm

4/5

Excellent

5/5

Excellent

5/5

NSDS 1 NSDS 2

• NSDS/SLA target performance for sector• Financial Performance

Ravin Deonarain

Page 27: FOODBEV SETA Food and Beverages Manufacturing

Committee’s Specific Emphasis

• SWOT’s Analysis

• Strategic Plans F2010/11

• Provincial Allocations

• Youth Unemployment

Ravin Deonarain

Page 28: FOODBEV SETA Food and Beverages Manufacturing

Potential Internal StrengthsYES NO

Core competences in key areas

Adequate financial resources

Well thought of by market

Well-conceived functional/operational strategies

Access to economies of scale

Insulated from strong competitive pressures

Proprietary technology e.g. Learnerships

Ravin Deonarain

Page 29: FOODBEV SETA Food and Beverages Manufacturing

Potential Internal Strengths

YES NO

Cost advantages Better advertising campaigns Product innovation skills Proven management Ahead on experience curve Better processing capability Superior technological skills

Ravin Deonarain

Page 30: FOODBEV SETA Food and Beverages Manufacturing

Potential Internal WeaknessesYES NO

No clear strategic direction

Obsolete facilities

Subpar effectiveness because…

Lack of managerial depth and talent

Missing some key skills or competences

Poor track record-implementing strategy

Plagued with internal operating problems

Ravin Deonarain

Page 31: FOODBEV SETA Food and Beverages Manufacturing

Potential Internal Weaknesses

YES NO

Falling behind in R & D Too narrow a product range Weak market image Unable to finance needed changes in strategy

Higher overall unit costs relative to key competitors

Page 32: FOODBEV SETA Food and Beverages Manufacturing

Potential External Opportunities

YES NO

Serve more customers Enter new/other markets or segments Expand product line - broader range of customer needs

Look into related products Faster market growth

Ravin Deonarain

Page 33: FOODBEV SETA Food and Beverages Manufacturing

Potential External ThreatsYES NO

Entry of lower-cost competitors Rising attractiveness of substitute products (non accredited skills)

Costly regulatory requirements Vulnerability to recession and business cycle

Changing customer needs

Ravin Deonarain

Page 34: FOODBEV SETA Food and Beverages Manufacturing

BUDGET F2010/11SKILLS LEVY BUDGET SPLIT

NSF 46.3

ADMINISTRATION 21.2

MANDATORY GRANTS 106 .0

DISCRETIONARY GRANTS 42.4

NSF PROJECT 5.2

INTEREST/PENALIES 10 .1

TOTAL 231.2

Ravin Deonarain

Page 35: FOODBEV SETA Food and Beverages Manufacturing

Discretionary Projects

Ravin Deonarain

Page 36: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

Page 37: FOODBEV SETA Food and Beverages Manufacturing

Youth UnemploymentProjects Spend (Rm)

Entrepreneur Development through New Venture Creation 1 500 000

Young Entrepreneur Support

o Mentorship

oBusiness Plans

o Linkages - support organizations (SEDA, banks, etc.)

o CIPRO Registrations

750 000

Community Based Organisation Grants 1 800 000

Internships & Work Experience Grants 9 600 000

Ravin Deonarain

Page 38: FOODBEV SETA Food and Beverages Manufacturing

PROVINCIAL SPREAD (Poverty Alleviation)

NVC

NGO

Ravin Deonarain

Page 39: FOODBEV SETA Food and Beverages Manufacturing

Ravin Deonarain

“……the SETAs do not provide training. They have a legal duty to disburse 80% of the skills development levy funds and are constituted in governance structures to represent a partnership between government, business and labour to direct skills training in various sectors. The SETAs also work at different levels of the training hierarchy and are intermediaries between business and training institutions using organised networks for workplace training.”

Min Blade NzimandeSkills Summit9 Sept 2010

Page 40: FOODBEV SETA Food and Beverages Manufacturing

Thank You

Ravin Deonarain