Annual Report 2015/16 finacial year. Acting Chairperson: Mr. A Young CEO: Mr. Tshililo R Ramabulana CFO: Ms. S Muvhulawa

Transcription

1 Annual Report 2015/16 finacial year. Acting Chairperson: Mr. A Young CEO: Mr. Tshililo R Ramabulana CFO: Ms. S Muvhulawa

2 Acronyms NAMC - National Agricultural Marketing Council DAFF - Department of Agriculture, Forestry and Fisheries MERC - Market and Economic Research Centre APAP - Agricultural Policy Action Plan AIMS - Agricultural Information Management Systems SA - South Africa FPM - Financial Performance Management PDA - Provincial department of agriculture CASP - Comprehensive Agricultural Support Programme PPECB - Perishable Products Export Control Board AGRISETA- Agricultural Sector Education and Training Authority NRMDP - National Red Meat Development Programme MMM - Making Market matter SAGIS - South African Grain Information Services SAMIC - South African Meat Information Company SAMAC - South African Macadamia Growers Association SAWIS - South African Wine Information Services SIP - Strategic Integrated Projects QSE - Qualifying Small Enterprise EME - exempted micro enterprise 2

3 Outline Corporate governance Research Statutory Measures Partnerships Transformation and equity Development Schemes Training and Capacity Building Programs Y Agriculture Budget and administration 3

4 Vision Strategic positioning of agriculture in a dynamic global market. 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. Mission To provide agricultural marketing advisory services to key stakeholders in support of a vibrant agricultural marketing system in South Africa. Core Values Integrity (honest/ethical/trustworthy/transparent) Assertive (accountable/responsible/reliable/taking ownership/confident) Collaborative (consultative/teamwork/participative/cooperative) Service excellence (performance driven/target oriented/service oriented/motivated/committed/diligent) Fairness (equal treatment/respectful/tolerance/consistency) Objective (analytical/rational/attention to detail/conceptual) Innovative (creative/proactive/adaptive/flexible/initiative) 4

5 Council Members 5

6 Committees NAMC Council Mr. Andre Young- Deputy Chairperson & Acting Chairperson Ms Mina Gill- Council Member Mrs JM v/d Merwe- Council Member Dr. John Purchase- Council Member Mr. Andries Cronje- Council Member Dr Litha Magingxa- Council Member Mr. Augustinus Hendricks- Council Member Ms Thami Zimu Council Member NAMC Audit and Risk Mr Paul Slack Chairperson Ms Antoinette Ngwenya Ms Refiloe Dinga Dr Litha Magingxa - Council Member Ms Thamsanqa Zimu - Council Member Human Resources and Remuneration Mrs JM v/d Merwe Acting Chairperson Mr. Andre Young Ms Mina Gill Management Committee Ronald Ramabulana Chief Executive Officer Sarah Muvhulawa Chief Financial Officer Schalk Burger Senior Manager: Statutory Measures Khumbuzile Mosoma Senior Manager: Agribusiness Development Simphiwe Ngqangweni Senior Manager: Markets and Economic Research Centre Virginia Nkobi Senior Manager: Human Resources Zamikhaya Xalisa Senior Manager: Agricultural Trusts Tshepiso Maphatane Compliance and Risk Manager 6

7 National Development Plan Maximising use of communal land and enhancing productivity of land reform projects Opportunities to expand high value crops Policy Alignment Outcomes Seeks to assist in the achievement of Outcome 4, Decent Employment through Inclusive Growth, and That of Outcome 7, Comprehensive Rural Development and Food Security. APAP Infrastructure pillar of APAP (SIP 11) Value chain analysis of target industries Roll-out AIMS 7

8 Audit Opinion The NAMC achieved a clean audit for the year 2015/16 and received an award for Auditor General. 8

9 Partnerships NAMC Trusts Industry bodies (administrators of statutory levies) 12 Industry Trusts Current asset value amounts to a total of R2 424 million 18 industry bodies collected a total amount of R427 million in the past financial year 9

10 Background 18 industries collecting statutory levies In 2015/16 financial year R427 mill collected 20 industries administering statutory measures relating to registrations, records & returns Statutory Measures Examples of statutory information critical to APAP implementation All fruit kinds- Fruit hub, All grains -SAGIS, Wine- SAWIS, and All red meat- SAMIC. Wool- Cape wools Mohair- Mohair SA 10

11 Summary of statutory measures applicable in South Africa 2015/16 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 Macadamias Southern African Macadamia Growers Association (SAMAC) Mangoes Subtrop Milk Milk Producers Organisation Mohair Mohair SA Olives SA Olive Pecan nuts SA Pecan Producers Association 11

12 Levies collected per commodity survey Product Total value at first point of sale R Levy income R Levy income as % of the value of the product % Citrus (exported) ,56 Cotton lint ,37 Dairy products ,33 Deciduous fruit ,83 Dried fruit ,82 Fynbos ,84 Lucerne ,50 Mangoes ,84 Olives ,52 Pecan nuts ,17 Pork ,48 Potatoes ,45 Red meat ,14 Sorghum ,43 Table grapes ,46 Wine ,82 Winter cereal ,74 TOTAL ,37 12

13 Functions Financed Through Statutory Levies 2015 Survey Functions Amount spent R Percentage of total levy expenditure % Administration Transformation ,3 Research ,9 Local promotions ,7 Export Promotions ,8 Information ,4 Quality control ,9 Plant improvement ,0 Production development ,9 TOTAL ,0 13

14 Economic Research Broadly stated the NAMC aims to: gauge the efficiency of the market for every agricultural commodity on an ongoing basis (Agro-food Chains Focus Area); undertake market and trade research to inform interventions aimed at enhancing the viability of agro-food (Trade Focus Area); and intensify research efforts on options to link smallholder farmers to agro-food value chains (Smallholder Market Access Focus Area formerly Linking Farmers to Markets Focus Area) 14

15 Research Strategy Research Agenda Strategic partnerships Dissemination Quantity Quality MERC Research Strategy Research capacity Relevance Funding Research tools 15

16 Market & Economic Research Outputs Portfolio Deliverables 1. Price analysis Food Basket Price Monthly Quarterly Food Price Monitor Annual Food Cost Review Quarterly Input Cost Monitor Quarterly Farm-to-Retail Price Spreads Grain & Oilseeds Supply and Demand Estimates Reports 2. Markets Sectoral market studies - fruit exports into Africa Trade Probe Fruit flow 3. Competitiveness Value chain studies (Poultry) 4. Policy Transformation monitoring report Levy evaluations Marketing schemes 16

17 Research products NAMC s regular report include Food Price Monitors, Food Cost Reviews, Input Cost Monitors, Trade Probes, Fruit Flow reports, and lately the South African Supply & Demand Estimates report. 17

18 Enterprise development Transformation and equity Pillar Activities (examples) Percentage Production material/inputs Extension services Mentorship Soil preparations Accreditation (certification for accessing export markets) Market facilitation (Assist smallholder farmers to access the markets) Business plan development Industries to assist black farmers to gain access to finance More than 50% Skills development Employment equity Management control Preferential procurement Socio Economic Development Ownership Bursaries Farmers and other role players in value chain Farm workers (if motivated properly due to AgriSETA cuts) To promote equity in the workplace Salaries for transformation managers Procuring from Black owned enterprises/businesses (QSE s/eme s) Provision of good housing, clean water, sanitation, electricity, recreation facilities and health care programmes Increase the number of Black People to participate in the economy. Approximately 20% Approximately 30% 18

19 Examples of transformation projects funded by statutory levies 1. Grain Trusts 2. Mohair Trust Doornrivier Project 19

20 Examples of transformation projects funded by statutory levies 3. Wool Trust 4. Potato Industry Dev Trust 20

21 Examples of transformation projects funded by statutory levies 5. Deciduous Fruit Industry Dev Trust 21

22 Agricultural development Schemes Project title Vineyard Development Scheme 70 farmers participating within the Scheme Total number of hectares of cuttings have been planted since inception of project Total number of jobs created 1371 Number of Income projects generated Amount (R) 13 R

23 Agricultural development Schemes Project National Red Meat Development Number of Income title Programme (NRMDP) custom feeding generated programme Amount (R) facilities Facilities have taken 2594 animals for feeding during the financial year 11 R

24 Training and Capacity Building Programs Making Markets Matter - MMM AGRIBIZ for Women Agribusiness training and mentorship program aimed at emerging agribusiness entrepreneurs Driven by the need for Human Capital development in agriculture to meet the goals of South Africa and to redress past imbalances Develop entrepreneurs in agribusiness - necessary business skills - successfully and sustainably competition locally and internationally. Collaboration DAFF & PDAs female famer of the year nominees and funding CASP Funded projects participants & funding PPECB compliance and certification Buhle Farmers Academy facilitation The management training for women in agribusiness branded AGRIBIZ. Designed for women entrepreneurs engaged in on- and off-farm production and services and in the entire value chain of natural products, food and agricultural products. The MMM and AGRIBIZ training programmes take place every year in May in Cape Town. MMM farmers trained since 2008 AGRIBIZ famers trained since

25 Training and Capacity Building Programs 25

26 Y - Agriculture Concept of NAMC in partnership with AgriSeta and DAFF. The following achievements have been obtained: Total interns since Total interns who are now permanently employed Agricultural economics Animal production Administration Information Technology Current Interns

27 Model 27

28 28

29 NAMC Organogram 29

30 Human Resources Administration (47) permanent employees and 18 employees contracted 65 employees. The gender distribution is as follows: (03) Female African at management (12) Female African (1) Female Coloured (9) Female White (38) Male African (2) Male white (03) employees tendered their resignation (02) employees were dismissed due to misconduct. 30

31 Financial Overview 2015/16 Income (Grant received) Interest generated Sponsorship received Expenditure Amount of surplus for the year Amount of assets (current assets less inventory and prepayments) Amount of total current liabilities Amount of year-end bank balance Fruitless, wasteful, irregular & Unauthorised expenditure External Audit Report R34,6 million R2,8 million R25,3million R61,9 million R1,8 million R74,7 million R77 million R66,9 million R0,00 Clean Audit 31

32 Statement of Financial Performance for the year ended 31 March 2016 vs March / /16 % Change R 000 R 000 Revenue % Non- exchange revenue % Exchange revenue % Expenses % Administrative Expenses % Personnel Expenditure % Operating Expenditure % Depreciation & Amortisation % Finance cost (44%) Profit/(Loss) on disposal of assets (78) (7) (91%) Loss on disposal of inventory (12) 0 0% Surplus / (Deficit) for year ,753 32

33 Budget vs Actual for the period ended 31 March 2016 Description Final budget Actual amounts on a comparable basis % of actual against budget R'000 R'000 % Revenue Grant received Other income and sponsorship received Interest received % Total revenue % % of actual expenditure per category against total expenditure Expenses Personnel expenditure (12%) 48% Personnel expenditure (Projects) Administration expenses % 8% Operating expenses (55%) 41% Operating expenses (projects) Depreciation & amortisation (159%) 3% Finance cost % Total expenditure % 33

34 Budget vs Actual expenditure graphic analysis Approved budget Actual expenditure 34

35 Expenditure per category as a percentage of total expenditure: 31 March 2016: Cont Expenditure Categories: Personnel - 48% Administration - 8% Operating - 41% Depreciation & Amortisation-3% 35

36 Thank you 36