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National Agricultural Marketing Council. Annual Report 2012/2013 Confidential. Vision, Mission and Core principle. Vision Strategic positioning of agriculture in a dynamic global market Mission - PowerPoint PPT Presentation
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Confidential
Confidential
Vision, Mission and Core principle
Vision Strategic positioning of agriculture in a dynamic global market
Mission To provide agricultural marketing advisory services to key stakeholders in
support of a vibrant agricultural marketing system in South Africa.
Core Business Principles Integrity Assertive Collaborative Service Excellence Fairness Objective Innovative
Confidential
Legislative Framework
Confidential
Strategic Outcomes Oriented Goals
Goal Statement To provide agricultural marketing advisory services to key stakeholders in
support of a vibrant agricultural marketing system.
Strategic Objectives Increasing market access to all market participants More efficient marketing of agricultural products Increased export earnings from agricultural products Enhanced viability of agricultural sector
Confidential
Corporate Governance
Council Committees Audit and Risk Committee Human Resources and Remuneration Committee Risk Management Committee Management Committee
NAMC Divisions Markets and Economic Research Centre Statutory Measures Agribusiness Development Agricultural Trusts
Confidential
Council Members
• Mrs. Msimang (Chairperson)• Ms. Marie Van Der Merwe• Mr. Andries Cronje• Ms. Thami Zimu• Dr. Litha Magingxa• Dr. John Purchase• Ms. Mina Gill• Mr. Andrew Young
Confidential
AGRIBEE Threshold Study
• Special Project
• NAMC was appointed to review the AGRIBEE Sector Codes Threshold,
• The study objective was to review of the thresholds for Qualifying Small Enterprises (QSEs) and Exempted Micro Enterprises (EMEs) contained in the AgriBEE Transformation Charter for the purpose of the AgriBEE Sector Codes.
• The final report was presented to DAFF in July of 2013.
Confidential
Recommendations
8
Confidential
Confidential
Markets and Economics Research Centre
Strategic objective
Planned Targets Achieved Targets
Increase market access
2 Reports on issues pertaining to market access
Piggery Case study Dairy case study Tunnel case study
1 Baseline study Macadamia nuts
Linking Farmers to Markets
Confidential
Trade Focus Area
Strategic objective
Planned Targets
Achieved Targets
Optimisation of export earnings
6 Trade Probe Reports
6 Trade Probe Issues: 39, 40, 41, 42, 43 and 44
4 Fruit Trade Flow Reports
4 Fruit Trade Flow Reports with profiles for citrus, sub-tropical and deciduous fruit as well as other profiles
2 Trade Studies
2 Trade Studies:-BRICS studies (compiled into a book)- Liberalisation and regional integration in Southern Africa
100% response to policy inputs (ITAC)
Applications: Increase in duty rate for uncooked pasta; Increase in duty rate for half mussels; Review of the rebate facility for salmon and trout; Removal of the rebate facility on honey; Removal of the duty rate on other milk concentrate; Reduction of duty rate on white pear beans
Confidential
Trade Focus AreaStrategic objective
Planned Targets Achieved Targets
Optimisation of export earnings
8 Seminars 8 topics addressed in different seminars
Other:Capacity building and networks
A trip to the USA was supported for exposure and establishments of networks by young agricultural economists.
Confidential
Agro-Food Chains
Strategic objective
Planned Targets Achieved Targets
Enhancing the viability of the agricultural sector
4 Quarterly Food Price Monitor (FPM) reports released
Four (4) FPM reports for May 2012, Aug 2012, Nov 2012, Feb 2013 were published
1 Annual Food Cost Review released
One Annual Food Cost Review was published in September 2012.
4 Input Cost Monitoring (ICM) reports released
Four reports were published namely: Story of maize and wheat – an update (1st Quarter); Story of meat and wool – an update (2nd Quarter); An update on administered prices was published and presented at the CEO’s forum (3rd Quarter); An update on selected input products was published.(4th Quarter)
Confidential
Agro-Food Chains
Strategic objective
Planned Targets
Achieved Targets
Enhancing the viability of the agricultural sector
2 Agri- Benchmark reports released
The following 2 reports were released:Beef and Sheep; Cash Crops (13 selected reports and working papers are available)
4 Agro-food chain reports
6 agro-food chains reports were released covering a number of industries (Tomato, Seed industry, Mohair, Paprika, Margarine and Essential oils), including a generic study on global food value chains
Confidential
Target Performance Achievement
Statutory Measure
Investigations 36 31 86%
Statutory Measures Gazetted 24 19 79%
Report: Status of Statutory
Measures 1 1 100%
Crop Estimated Liaison
Committee Meetings 2 2 100%
Updating of Register for
Directly Affected Groups 1 1 100%
Statutory Measures
Confidential
Summary of statutory measures applicable in South Africa 2012/2013
INDUSTRY Administrating body Statutory Measures
Levy Registration
Records & Returns
Citrus (export only) Citrus Growers Association
Cotton Cotton SA
Dairy Milk SA
Deciduous fruit (pome & stone)
HORTGRO Services
Dried fruit Dried Fruit Technical Services
Fynbos (proteas) HORTGRO Services
Grains (Maize, Oilseeds, Sorghum, and Winter Cereals)
The South African Grains and Information Services (SAGIS)
Lucerne Lucerne Seed Organisation
Mangoes Subtrop
Confidential
Summary of statutory measures applicable in South Africa 2012/2013
INDUSTRY Administrating body Statutory Measures
Levy Registration
Records & Returns
Milk Milk Producers’ Organisation
Mohair Mohair SA
Olives SA Olive
Pecan nuts SA Pecan Producers’ Association
Pork SA Pork Producers’ Organisation
Potatoes Potatoes SA
Poultry and eggs Southern African Poultry Association
Red meat Red Meat Levy Admin
Confidential
INDUSTRY Administrating body Statutory Measures
Levy Registration
Records & Returns
Sorghum Sorghum Trust
Table Grapes exported
SA Table Grape Industry
Wine SAWIS, WIDA, Winetech and WOSA
Winter Cereals Winter Cereal Trust
Wool Cape Wools SA
Summary of statutory measures applicable in South Africa (cont...)
Confidential
FUNCTIONS FINANCED THROUGH STATUTORY LEVIES 2012/2013
Functions Amount spentR
Percentage of total levy expenditur
e%
Administration 19 392 734 6
Transformation 79 842 022 23
Research 91 811 308 27
Local promotions 40 615 282 12
Export Promotions 50 913 157 15
Information 34 220 159 10
Quality control 15 200 307 4
Plant improvement 7 448 390 2
Production development 2 773 883 1
TOTAL 342 217 242 100
Confidential
One of the development scheme NAMC designed and developed
Top left: Vineyard scheme originsTop Right: Farmers HarvestingBottom Right: Delivery to markets
Confidential
Sweet potatoes scheme
The NAMC collaborated with the ARC and PPECB on the facilitation of sweet potato development scheme in Limpopo province
The scheme was designed to link 100 small scale sweet potato growers with markets
The scheme operates on a 1 117 ha irrigation scheme in Tshiombo in Thohoyandou
The NAMC is providing marketing opportunities and the ARC is assisting with technical support
The support to this growers will continue into the following financial year.
Confidential
Training
During the 2012/2013 financial year the NAMC facilitated 4 training programmes to capacitate the producers to operate their businesses successfully
One of the training courses was tailor-made for women entrepreneurs
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
The NAMC collaborated with provincial department, Land Bank, South African Women Entrepreneur
Network, Cornell University and Buhle Farmers Academy
Confidential
Quality Assurance Training Thirty-two growers attended the NAMC facilitated training course on food
safety The training was held in Limpopo province on the farms of the growers The NAMC collaborated with industries and the Limpopo department of
Agriculture
The training focused on Product quality; Responsible use of pesticides and General Agricultural Practices
Confidential
Export Programme
During the 2012/2013 financial year, the NAMC collaborated with its industry partners and international organisations to support emerging producers to export their products
Below are some of the highlights
The NAMC collaborated with Subtropical Association, IDC and Limpopo agriculture to support macadamia growers
14 growers were targeted in Vhembe districts The growers were supported with technical interventions to produce good
quality products Markets were sourced internationally through export agents
Confidential
Industry Trusts
Industry Trusts submitted reports on their performance Report was submitted to Minister Mohair Trusts: Sarah Louw term expired and was replaced by Mr Thukelo
Mashologu Capacity Training Programme conducted for 26 Ministerial Trustees
Confidential
Employment Equity
Confidential
Finance & Administration
Income ( Grant received ) R36 million
Interest generated R724,000.00
Sponsorship received R4,6 million
Expenditure R38.5 million, 5% above income
Creditors payment period 26 days against a target of 30 days
Debtors collection period 16.8 days against a target of 30 days
Fruitless & wasteful expenditure R40,000.00
Irregular expenditure R2,9 million
Unauthorized expenditure R0
External Audit Report Unqualified
Financial Overview
Confidential
Statement of Financial Performance for the year ending 31 March 2013
2011/12 2012/13 % Change
R’000 R’000
Revenue 37,541 36,743 -2%
Non- Exchange revenue 36,604 36,019 -2%
Exchange revenue 937 724 -23%
Expenses 36,577 38,445 5%
Administrative Expenses 2,999 2,840 -5%
Personnel Expenditure 22,848 22,301 -2%
Operating Expenditure 10,232 12,695 24%
Depreciation & Amortisation 458 577 26%
Finance cost 40 32 -20%
Profit/(Loss) on disposal of asset
(8) (59) 638%
Surplus / (Deficit) for year 956 (1,761)
Confidential
Expenditure Categories: 31 March 2013:
2011/12 2012/13 % Change
Expenditure Categories: R’000 R’000
Personnel 22,848 22,301 -2%
Operating 4,050 7,024 73%
Rental: Office space 944 948 0.4%
Research, workshops & investigations
5,238 4,723 -10%
Other administrative 3,505 3,508 3%
Total 36,585 38,504 5%
Baseline Allocation 36,049 31,409 -13%
Donor funds 555 4,610 731%
Confidential
Expenditure per category as a percentage of total expenditure: 31 March 2013: Cont’
Confidential
Expenditure trends per programme:
Name of Programme
Actual expendi
ture
2011/12
R’000
Actual expenditure
2012/13
R’000
Variance
R’000
Reasons for variances
Finance & Admin
7,632 7,630 -2 Variance of -0.03%.
Human Resources
3,398 3,387 -11 Variance of -0.3%..
Agribusiness Development
3,158 3,302 144 Variance of 5%. The increase is directly related to increase on expenditure
related to the Agribiz training workshop.
Agricultural Trust
4,042 4,008 -34 Variance of -0.8%.
Statutory Measures
2,091 2,214 123 Variance of 6%. This is due to increase on operational expenditure, which
includes travelling, conferencing, printing and editing.
Confidential
Expenditure trends per programme:
Name of Programme
Actual expendi
ture
2011/12
R’000
Actual expendit
ure
2012/13
R’000
Variance
R’000
Reasons for variances
MERC 11,251 13,469 2,218 Variance of 20%. Increase in number of Section 7 and workgroup investigations, which includes the AgriBEE and Agri-benchmark projects.
Council 1,269 1,197 -72 The variance -5.5% due to the number of meetings attended by each council member.
Administration (CEO’S OFFICE)
3,744 3,297 -447 Variance of 1-2%. The decrease is directly related to the cut in MTEF budget
allocation.
Total 36,585 38,504 1,919
Confidential
Statement of Financial Position
2011/12:R’000
2012/13:R’000
% change
Reserves 2,498 737 -70%
Non-current assets
1,500 1,402 -7%
Receivables 662 354 -47%
Cash & Inventories
1,957 1,686 -14%
Liabilities 1,621 2,705 67%
Confidential
Conclusion
• The NAMC Council humbly submits this report as the true state of affairs for the 2012-13 Financial Period.
Confidential
Thank You
NAMC ANNUAL Report
2012-13