People and Transformation

Transcription

1 PERISHABLE PRODUCTS EXPORT CONTROL BOARD ANNUAL REPORT Parliamentary Portfolio Committee on Agriculture, Forestry & Fisheries OCTOBER 2011

2 Presentation Outline Business Overview Enterprise Risks Top Six Performance Highlights People and Transformation Financial Results Concluding remarks

3 Presentation Outline Business Overview Enterprise Risks: Top Six Performance Highlights People and Transformation Financial Results Concluding remarks

4 Perishable Products Export Control Board (since 1926) Official Quality Inspection & Certification Agency in South Africa

5 Our vision A Partner in Global Competitiveness of South African Perishable Products Our mission To build competitive capacity in our people & systems in Industries we serve in order to instill world-wide confidence in South African Perishable Products

6 PPECB Responsibility Responsible for the Orderly Exports of Perishable Products Responsible for Export Quality and Food Safety Inspection and Certification In South Africa. Inland Phytosanitary Inspections for Non- Cold Treatment Markets

7 Legislative Mandate PPEC Act 9 of 1983 Establishes and mandates PPECB Provides for control & management of orderly of South African perishable products exports Appoints PPECB as assignee/public service provider (1991) APS Act 119 of 1990 Ensures export food safety and quality standards of regulated agricultural products are complied with PFM Act 1 of 1999 Regulates financial management and good governance in government and public entities Accountable to executive authority

8 Statutory Outputs APS Act 119 of 1990 PPECB responsibility PPEC Act 9 of 1983 PPECB responsibility Agricultural Pest Act 36 of 1983 DAFF Responsibility Quality MRL Food safety Traceability Temperature & Cold treatment management Equipment certification Phytosanitary requirements Bilateral agreements Export Certificate Equipment & Facility Certifications Temperature instruction letter Phyto Certificate EU approval 1580/2007

9 Export Value Chain Orchard Pack house Inspection Cold Store Inland Depot Loading Inspection Cold Store Export Port Inspection Ship Import Port Discharge Inspection Cold Store Consumer Retail Inspection Depot

10 Service Segmentation Statutory Non-Cold Treatment Markets (EU) APS Inspections on regulated fruit & vegetable products Food Safety Audits PPEC Services on perishable products Statutory Cold Chain Special Market Protocols Phytosanitary services for Japan, IRAN, USA PPECB Services Value added services Services that enhance the competitiveness of industry Aflatoxin laboratory Commercial certifications Research and Development Capacity Building AETP Programme Training Fresh Market

11 PPECB link to best practices FARM PRODUCTION PACKING DISTRIBUTION FORK GOOD AGRICULTURAL PRACTICES (SAGAP/GLOBALGAP) GOOD MANUFACTURING PRACTICES (GMP/HACCP/BRC) GOOD DISTRIBUTION PRACTICES (Temp, equipment/cold Chain) TRACEABILITY/TRACKABILITY/INFORMATION PRODUCT QUALITY / CONDITION / FOOD SAFETY HARMONISATION/AETP/R & D 11

12 PPECB Accreditations Statutory Inspection Services EU1580 approved 3 rd country inspection authority Business Processes ISO guide 65 (Globalgap, BRC) ISO 17021(HACCP certifications) ISO (Laboratory services) ISO Certifications Body TESCO nurture (V10) Leaf 360 quality grasp (globalgap risk assessment on social practices) 12

13 Historic Fruit Volumes Thousands 3,000 2,500 Average growth 4.17% 2,000 Pallet ts 1,500 1, '98 '99 '00 '01 '02 '04 '05 '06 '07 '08 '09 '10 '11 Years Pallets

14 Major Export Markets Ex xport % Europe UK Middle East Far East Russia North America Other 14

15 Historic Financial Results R 180,000 R 160,000 R 140,000 R 120,000 R'00 00 R 100,000 R 80,000 R 60,000 R 40,000 R 20,000 R 0 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 Years Income Expenditure

16 Presentation Outline Business Overview Enterprise Risks: Top Six Performance Highlights People and Transformation Financial Results Concluding remarks

17 Stakeholder Perception Issues raised by Fruit South Africa in a discussion paper are: Quality inspections: Costly and inconsistent quality in service Cold Chain: PPEC Act is outdated Information: Incomplete and unreliable data Electronic data interchange: Delays in delivery of EDI solution Loss of accreditation: Reputational damage and loss in access to markets Unwanted services: Input into food safety, local market and imported product activities Stakeholder Communications: Industry is not informed of developments Board representation: PPEC Act determines representation Small growers: DAFF should not use PPECB to address small grower needs that fall outside PPECB s mandate

18 Enterprise Risks 1. Delivery of a cost efficient statutory service Risk: System unaffordable to user and reduced SA Competitiveness Action: Alternative Methodologies 2. Access to accurate information Risk: Poor decision making and reduced SA Competitiveness Action: Electronic Export Certification System 3. Maintain credibility in SA quality & food safety system Risk: Limited access to global markets Action: Clarify PPECB s role and liaise with government on policy issues

19 Enterprise Risks (continued) 4. Value Added Services are financially self sustainable Risk: Increased cost to PPECB and reduced SA Competitiveness Action: Enhance service delivery and cost efficiencies 5. Sufficient capacity and appropriate skills Risk: Failure in delivering to mandate Action: Competency assessments, coaching, mentoring, training and development programmes 6. Responds effectively to changes in environment Risk: Reduced global competitiveness Action: Review PPEC Act

20 Presentation Outline Business Overview Enterprise Risks: Top Six Performance Highlights People and Transformation Financial Results Concluding remarks

21 Strategic Objectives 1. Enhancing the credibility of the South African Export Certificate 2. Supporting the export competitiveness of the South African perishable products industries 3. Strengthening PPECB s capacity as a credible source of information for serving industries and stakeholders 4. Supporting Government in ensuring confidence in the quality assurance and food safety systems for local perishable product markets 5. Supporting Government in building systems to ensure compliance to South African quality and food safety standards for imported perishable products

22 Credibility of Export Certificate International Harmonisation Workshop on Commercial Quality Standards 108 delegates from 18 African Countries International standards forum meetings OECD, UNECE, Head of Inspectorates Meeting Alternative Risk-based Sampling Methodology Studied and submitted a concept on an to DAFF Continue research on appropriate sampling sizes

23 Credibility of Export Certificate PPECB Cold Chain Benchmarked current cold chain protocols Continue with alternative container loading and monitoring methodologies Continue with implementation of port activity auditing and introduction of consistency measures PPECB Laboratory Proven reliability in mycotoxin analysis by PPECB Laboratory All FAPAS measured results (z scores) between -2 and 2 Harmonisation Programme Practical competency evaluations with competency ratings of 80% on majority of products Accelerated skills transfer programme.. 82 participants Specialists Harmonisation workshops.. 98 sessions

24 Support Export Competitiveness Research and development in Cold Chain Completed post harvest research trials on temperature storage for garlic products with article published in an international research journal Completed project on cold storage for Leuadendron and Leucospernum Developed post harvest and shipping protocols for South African Pomegranate with article published in an international research journal Investigated non-destructive monitoring and prediction of rind quality in citrus International good practices Benchmarked SAGAP against GlobalGap V3 Discuss with NAMC to revive initiative

25 Support Export Competitiveness Accreditations Completed validation for Fumonisons in pet food and maize Moisture analyser testing methodology reduced lead times from 48 hours to 20 minutes Established a PMU for SAPiPII Limpopo - Technology Transfer.. 40 farmers North West - Responsible Pesticide Usage farmers Limpopo and Eastern Cape - Product Quality.. 49 participants Johannesburg Fresh Produce Market Internal capacity building.. 17 training interventions

26 Reliable Source of Information Inspection information Information accuracy 90% in week 1 and 98% in week 2 Export information Reliance on third party service providers Implementation of EDI due in December 2011 Access to information Created web portal for users to register and extract statistical information Management Information Completed the design and development of a Tool Implementation in November 2011

27 Presentation Outline Business Overview Enterprise Risks: Top Six Performance Highlights People and Transformation Financial Results Concluding remarks

28 Values Professionalism Confidence Accountability Integrity Passion

29 Demographic Profile % EE Plan 2011 Target March % 2% 29% 1% 42% 3% 43% 4% 30% African Coloured Indian White Disability 24% African Coloured Indian White Disability Total number of employees: 358 employees

30 Gender Profile % Male Female African Coloured Indian White African Coloured Indian White Target 2011 Target End Target 2011 Target End Total number of employees: 358 employees Total Economically Active Population: Source: Stats SA, LFS, March

31 Training Interventions Assessor training: 25 inspectors Occupational Health & Safety: 23 representatives Change Management: All managers Project Management Senior Management Development Programme: 4 managers New Management Development Programme: 6 Inspectors Team effectiveness Study assistance Coaching & mentoring: 25 senior inspectors

32 Development Change management: all managers Assessor training: 25 inspectors Project Management Senior Management Development Programme

33 Presentation Outline Business Overview Enterprise Risks: Top Six Performance Highlights People and Transformation Financial Results Concluding remarks

34 Highlights Income Expenditure Debtors collection R173.8 million, up by 4% on budget R3.4 million, 2% below budget 35 days against a target of 59 days Bad debt as % of income 0% Preferential Procurement Fruitless & wasteful expenditure Irregular expenditure Unauthorized expenditure External Audit Report 56% in value from BEE scored entities R0 R0 R0 Unqualified

35 Financial Performance This Year R 000 Budget R 000 Prior Year R 000 Income R R R Interest received R5 771 R5 484 R5 312 Expenses R R R Net result R R1 700 R19 540

36 Financial Performance Performance % change Rm R 180 R 160 R 140 R 120 R 100 R 80 R 60 R 40 R 20 R 12 R 2 R 161 R 165 R 20 R 133 % change 25% 20% 15% 10% 5% 0% 4% -2% 14% 21% R budget % budget expenses surplus income -2% 21%

37 Income & Expenditure Value Added Services 8% Container inspection 2% Other Services 3% Income Capacity Building 1% Interest 3% Computer 3% Capacity Building 2% Rental 3% Expenses Other 9% Activity 13% PPECB Export Levies 22% APS Inspection Fees 62% Employee 70%

38 Major Expenditure % This year R 000 Budget R 000 Prior year R 000 Ind Bud Ind PYr Personnel expenses 70% R R R % 121% Activity cost 14% R R R % 121% Computer expenses 3% R5 436 R5 103 R % 136% Rental & maintenance 3% R4 248 R4 690 R % 137% Training 2% R3 273 R5 264 R % 101% Corporate identity 1% R1 915 R2 759 R % 115% Depreciation 2% R2 192 R2 238 R % 117% Administrative expenses 5% R8 290 R8 876 R % 118% Total expenditure 100% R R R % 121%

39 Financial Position This year R 000 Prior year R 000 Reserves R R Non-current assets R R Receivables R R Investments held and cash R R Liabilities R R24 428

40 Financial Position R 15,662 R 19, R 24,428 R 86,677 R 16,201 R 21, R 46,192 R 118,318 R 0 R 20,000 R 40,000 R 60,000 R 80,000 R 100,000 R 120,000 Rm non-current assets receivables liabilities cash

41 Presentation Outline Business Overview Enterprise Risks: Top Six Performance Highlights People and Transformation Financial Results Concluding remarks

42 In Conclusion World in recovery Volumes sensitive to market and economic forces Volumes under pressure Prices remain firm Relatively high input costs grower inflation Reduced credit availability Worldwide aging in population Outlook for PPECB Cautiously confident, but have liquid assets and strong cash reserves Higher risk in credit accounts Focus on real efficiency improvement Reprioritization of funds limited people 70%, activity 13% other 17%

43 Thank You Creating World-Wide Wide Confidence in South African Perishable Export Products