NAMC STRATEGY and BUDGET By TR Ramabulana CEO

NAMC STRATEGY and BUDGET By TR Ramabulana CEO: NAMC National Agricultural Marketing Council

STRUCTURE OF PRESENTATION • Introduction • Framework of the Strategy – Strategic Overview – Key Result Areas – Planned Expenditure per programme • Overall 2008/09 Budget National Agricultural Marketing Council

Farmer & Agribusiness Needs Supply-Side All farmers 1 st economy farmers – Limited water – Scarcity of arable land – Soil degradation – Climate change – Rising input costs – Limited innovation in risk management – Limited access to financial services – Poor infrastructure – Inadequate basic services nd 2 – Limited access to capital economy – Limited skills farming National – Slow Pace Marketing Council Agricultural of Land Reform challenges Demand-Side – Inadequate access to market information – Inadequate focus on new markets – Limited product innovation – Limited access to markets – Limited access to local markets Business Environment – Lack of shared vision across role players – Negative impact on competitiveness – Cost of compliance to SPS & TBT standards – High cost of compliance to labour legislation – Limited supporting institutions – Limited settlement support

INTRODUCTION • This strategic plan positions the NAMC as an organization that aims to assist the Do. A achieve its objectives as highlighted in the: – – • Objectives of the NAMC as highlighted in the MAP Act: – – • LARP & Do. A strategic plan Sector plan Increasing market access for all market participants Promotion of the efficiency of the marketing of agricultural products Optimisation of export earnings from agricultural products Enhancement of the viability of the agricultural sector Mission of the NAMC: – – – Provide accurate and well-informed policy advice on marketing of agro-food products to the Minister, Do. A and Directly Affected Groups Support developing farmers in terms of market access, knowledge acquisition and training Leverage centers of excellence and own resources to enhance equity, competitiveness, profitability and sustainability of the sector Contribute to the agric sector growth objectives by supplying useful information and policy positions using globally tested and proven analysis tools Focus efforts on the strategic positioning of the sector in dynamic global markets National Agricultural Marketing Council

OVERALLL OBJECTIVES – Acceleration economic growth and social inclusion; – Addressing structural challenges of the organization and capacity constraints; – Stabilization of food prices; – Reaching out to the youth and women; and – Improving the country’s skills base. National Agricultural Marketing Council

FUNCTIONS OF THE COUNCIL • Investigate the establishment, continuation, amendment or revocation of statutory measures and other regulatory measures • Prepare and submit to Minister for consideration, statutory measures • Undertake investigations and advise the Minister regarding: – Agricultural marketing policy and the application thereof; – The coordination of agricultural marketing policy in relation to national economic, social and development policies, and international trends and development; – The effect that marketing of products has on the objectives of the Act. • Monitor the application of statutory measures and report thereon to the Minister at least every two years. National Agricultural Marketing Council

NEW COUNCIL MEMBERS • • • Mrs. Ntombi Msimang (Chairperson) Dr. ASM Karaan (Vice-Chairperson) Prof. HD Van Schalkwyk Mr. AD Young Prof. JF Kirsten Mrs. SE Moolman Mrs. C Molo Mr. DB Montshwe Mrs. M Mannya Mrs. M Gill National Agricultural Marketing Council

CORPORATE GOVERNANCE COMMITTEE • Audit committee – Mr. Victor Nondabula (Chairperson) – Prof. HD Van Schalkwyk – Ms. M Moja – Mrs. M Gill – Mr. R Matlou • Human Resources Committee – Mr. AD Young (Chairperson) – Mrs. SE Moolman – Mrs. M Mannya – Mr. TR Ramabulana National Agricultural Marketing Council

COUNCIL & COMMITTEES’ SCHEDULE OF MEETINGS COUNCIL AUDIT COMMITTEE HR COMMITTEE CHAIRPERSON COMMITTEE 1 21 April 26 May 21 April 5 June 2 4 August 24 July 4 August 20 October 3 8 December 27 November 8 December 4 16 February 9 February 16 February National Agricultural Marketing Council

INFORMATION DEVELOPMENT National Agricultural Marketing Council

MAPPING, UNDERSTANDING AND QUANTIFYING VALUE CHAINS (INCLUDING SECTION 7 COMMITTEES) • FOCUS – To map, describe and quantify the value chain for each sub-sector in terms of, among others, the following factors: • • • Structure & Performance Export orientation Market situation Macro-economic issues SWOT analysis • MEASURABLE OBJECTIVE – To produce a series of value chain reports and in addition, when required, to produce Section 7 investigation reports. • PERFORMANCE INDICATOR – Annual production and distribution of at least one agro-food chain report and, in addition, production of Section 7 reports according to demand. National Agricultural Marketing Council

TRADE ANALYSIS • FOCUS – To produce research under the following broad trade areas: • Agricultural tariffs • Tariff rate quotas • Non-tariff barriers • Inter- and intra-trade flows • MEASURABLE OBJECTIVE – To produce a series of trade policy-relevant research reports on current trade issues and challenges • PERFORMANCE INDICATOR – Produce and distribute 11 newsletters on trade related issues – Produce and distribute 5 trade profiles (commodity and product specific) National Agricultural Marketing Council

LINKING FARMERS TO MARKETS • FOCUS – Produce case studies on black farmers who have been successfully integrated into the mainstream economy and to draw from such studies lessons that can be practically implemented elsewhere. • MEASURABLE OBJECTIVE • To produce research on best practices of linking black farmers to markets and to facilitate the integration of black producers into the mainstream of commercial agriculture. • PERFORMANCE INDICATOR – Regular production and distribution of research reports, articles and working papers on linking emerging farmers to markets (2 annually). National Agricultural Marketing Council

RISK MANAGEMENT • FOCUS – To produce research that applies tools for market risk management in agro-food chains – To produce research that quantifies agric market risk and provide guidance on management • MEASURABLE OBJECTIVE – To produce a series of research reports on agric market risk management • PERFORMANCE INDICATOR – Produce 3 research papers on market agric risk management that can be applied in the planning and implementation of projects by the Do. A and DAGs National Agricultural Marketing Council

INFORMATION MANAGEMENT SYSTEMS • FOCUS – To produce reports that cover trends and other developments regarding food prices, input costs and other variables across sub-sectors and along the agricultural agro-food chains and, among other things, provide policy input. • MEASURABLE OBJECTIVE – To produce a series of reports containing marketing data and information for all stakeholders in the agricultural sector and to develop/maintain sufficient database capacity to provide easy access to relevant marketing information. • PERFORMANCE INDICATOR – Produce and distribute four quarterly Food Price Trends reports; – Produce and distribute one annual Food Cost Review report; – Produce and distribute four Input Cost Trends report. National Agricultural Marketing Council

OUT-REACH, IN-REACH AND CONFERENCES • FOCUS – To send staff to training programmes locally and internationally. – To promote collaboration between experienced researchers within partner academic institutions and the NAMC. • MEASURABLE OBJECTIVE – To award bursaries to deserving staff members or targeted future employees on research pertaining to the marketing and trade of agricultural products. • PERFORMANCE INDICATOR – Regular collaborations between staff and other researchers in academia through collaborative research programmes (establish at least three such programmes). – Regular attendance at local and international training programmes by staff (at least two staff should attend training programmes relevant to marketing and trade). – Award at least three bursaries per annum. – Regular interactive seminars within NAMC (at least two seminars per month). National Agricultural Marketing Council

STATUTORY MEASURES National Agricultural Marketing Council

WHAT WE EXPECT FROM INDUSTRY PARTNERS • • Fairness to all producer segments Responsiveness to industry challenges Focus on long term strategic planning Good financial management Education sessions for all trustees on roles and responsibilities Clear communication strategy with grassroots Succession planning (empowerment) National Agricultural Marketing Council

STATUTORY MEASURE INVESTIGATIONS • Focus – Investigate and recommend for approval any of the five statutory measures, namely statutory levies, records and returns, registration, control of exports of agricultural products and conducting of pools as provided for in the MAP Act. • Strategic goal – To provide the Minister with recommendations regarding the approval or disapproval of a statutory measure. – To promulgate statutory measures in the relevant agricultural sectors in order to improve their operations. • Strategic Outcome – Undertake 9 statutory measures investigations. National Agricultural Marketing Council

AGRICULTURAL TRUSTS • Focus area: – The NAMC facilitates the appointment of Ministerial Trustees in agricultural trusts. Agricultural trusts were entrusted with safeguarding and utilizing former control boards assets to the benefit of the whole industry. • Strategic goal: – To facilitate the process to appoint ministerial trustees. – To influence trusts to bring transformation to the heart of their activities. • Strategic outcomes: – We expect: • Bursary schemes to support black students • Funding for schemes aimed at increasing market access • Export promotion schemes for black producers • Mentorship projects • Schemes aimed at reducing the transaction cost of doing business with black farmers National Agricultural Marketing Council

MAIZE BOARD SCHEME • Focus area: – The NAMC was tasked with the responsibility of advising the Minister of Agriculture on the closure of all control boards and transfer assets to trusts. – The only remaining scheme is the Maize Board Scheme. • Strategic goal: – To finalize all outstanding Maize Board cases before 31 July 2008. • Strategic outcomes: – To prevent a further extension of the Maize Marketing Scheme. National Agricultural Marketing Council

CROP ESTIMATES LIAISON COMMITTEE • Focus – The NAMC was mandated to establish a Crop Estimates Liaison Committee (CELC) to formally monitor the crop estimation process in South Africa. The CELC has the following focus areas: • Establishment of a completely independent and objective committee free of commercial bias; • Delivery of accurate, timely and credible crop estimate; • Monitoring the performance of the CELC. • Strategic goal: – Provide leadership required to improve the acceptance of crop estimates within industry in general. • Strategic outcomes: – Hold three (3) CELC meetings per annum - May, October and November. National Agricultural Marketing Council

AGRIBUSINESS DEVELOPMENT National Agricultural Marketing Council

DEVELOPMENT SCHEMES • Strategic goal: – To increase market access for the emerging producers. • Focus: – Capitalise and facilitate implementation of development schemes that will integrate emerging producers into the commercial mainstream. • Strategic outcome: – Oversee the rollout of the Grain Development Scheme and the General Development Scheme. National Agricultural Marketing Council

FARMER BUSINESS SUPPORT MODELS • Strategic goal: – To design and implement demand led projects in collaboration with Do. A that will link black producers in the fruit industry to retailers. • Focus: – To link black agribusinesses to market either as an individual agribusiness or as a project involving more than one agribusiness. • Strategic outcome: – Identify, design and implement four such projects. National Agricultural Marketing Council

PROMOTIONS • Focus: – To expose black owned agribusinesses to international markets and procurement requirements of those markets by • supporting the agribusinesses to attend international and local trade shows in collaboration with industries and other agencies. • Strategic goal: – To identify export-ready agribusinesses and support them with exporting their produce. • Strategic outcome: – Support fifteen agribusinesses to attend international trade shows; – Support fifteen agribusinesses to attend local shows and interact with buyers. National Agricultural Marketing Council

RE-ALIGNMENT OF LEVY ADMINISTRATORS • Focus: – To assist Levy Administrators in developing and implementing best practices on transformation. • Strategic goal: – To assist levy collecting industries in integrating NAMC transformation guidelines into their daily operations. • Strategic outcome: – One (1) report on the status of statutory levies collected in terms of the MAP Act. National Agricultural Marketing Council

TRAINING • Strategic goal: – To capacitate black agribusiness through marketing and management training courses. • Focus: – Host training courses in collaboration with universities and industries that will improve the technical and managerial skills of agribusinesses. • Strategic outcome: – Three Courses for the next financial year • Making Markets Matter Course - 50 agribusiness • Agribiz Matter Course - 30 women owned agribusiness • Market Access for Exporters - 5 agribusiness National Agricultural Marketing Council

CORPORATE SERVICES National Agricultural Marketing Council

• Focus: FINANCE – To provide effective, efficient financial and accounting management systems and services for the NAMC. The division provides the Council with corporate governance structures, namely: • Council • Audit and Risk Committee • HR and Remunerations Committee • Strategic goal: – To implement effective, efficient and transparent financial management and internal control systems in compliance with the PFM Act, 1999, and Treasury Regulations. • Strategic outcomes: – Produce monthly and annual audited financial statements. – Provide support to the Council & HR, at least four times a year. – Provide support to the Audit Committee, which meets six times a year. National Agricultural Marketing Council

BUDGET PROGRAMMES INCOME 2008/09 2009/101 2010/11 Grant & transfers (MTEF) 22, 459, 000 23, 722, 000 25, 056, 000 Interest Earned 300, 000 315, 000 330, 000 TOTAL INCOME 22, 759, 000 24, 037, 000 25, 386, 000 EXPENDITURE 2008/09 2009/10 2010/11 Compensation of Employees 10, 847, 000 11, 624, 000 12, 412, 000 Goods and Services-Standard Items 4, 593, 001 4, 785, 000 4, 996, 001 Operational Expenditure 7, 319, 000 7, 628, 000 7, 929, 000 Assets 285, 000 270, 000 TOTAL EXPENDITURE 22, 759, 000 24, 037, 000 25, 386, 000 National Agricultural Marketing Council

HUMAN RESOURCES MANAGEMENT • Focus: – Focus on corporate staffing, learning, renewal, succession/talent management, incentives and monitoring and evaluating compliance with the Equity Employment Plan for the NAMC. • Strategic goal: – To achieve effective human resource management and development within the NAMC. • Strategic outcomes: – Have three performance assessments for each staff member per annum. – Arrange one corporate governance course for all ten Council members. – Hold one training session with all staff members on staff evaluation and the differentiation policy (NAMC performance incentive policy). – Arrange for ten staff members to participate in formal and informal training courses each year. National Agricultural Marketing Council

COMMUNICATIONS • Focus: – To implement a communication strategy that will include advertorials in different agricultural magazines and newspapers as well as slots on radio stations, especially community stations. • Strategic goal: – To ensure proper communication of the NAMC programmes and activities to all directly affected groups. • Strategic outcomes: – Release quarterly four price trends – Three media briefings to communicate NAMC programmes – Manage the dissemination of NAMC corporate information to functions such as AEASA, and other NAMC marketing training courses. National Agricultural Marketing Council

THANK YOU National Agricultural Marketing Council