NAMC STRATEGIC PLAN AND BUDGET PRESENTATION PORTFOLIO COMMITTEE ON AGRICULTURE; 09 March 2006

1. NAMC STRATEGIC PLAN AND BUDGET PRESENTATIONPORTFOLIO COMMITTEE ON AGRICULTURE;09 March 2006

2. STRUCTURE OF PRESENTATION • Questions from last Portfolio Committee briefing • Highlights for the 2005/06 • The Strategic Plan for 2006/07 • Budget 2006/07

3. QUESTIONS & ANSWERS • How much is expected from the Wool Trade Mark & when will the funds be transferred? • The financial statements will be published before end of March 2006; • Expect R15,4 million • Translate the NAMC booklet to other official languages • The Parliamentary Officer on Agriculture received copies of translated documents • We need copies of your research reports on competitiveness • The Parliamentary Officer Received copies of the Competitiveness report,, as well as copies of the Food Cost Review and the report on Statutory Measures • Employ someone with expertise on assisting black agribusiness in marketing • Restructured the administration and hired a Senior Person to Head the Enterprise Development Division • What is your capacity to undertake Economic Research • Created an Economic Research Division, with key staff, research strategy and funding.

4. GUIDING DOCUMENTS • Marketing of Agricultural Product Act • The Strategic Plan for South African Agriculture • Draft Transformation Charter for Agriculture • Accelerated and Shared Growth Initiative for South Africa

5. MANAGEMENT • Leadership: • Council headed M Karaan; 9 other Council Members; all part-time • Management: • Appointed CEO • CFO • MANCOM

6. HIGHLIGHTS

7. FOOD PRICE MONITORING • Collaboration with DoA, University of Pretoria & StatSA • Published Food Cost Review & Quarterly (4) Food Price Trends • Trained 80 Provincial Food Price Monitors (PDA Extension personnel) • Captured rural food price data from identified rural stores & Spazas • Working on an MOU between NAMC, StatSA, DoA and PDA • NB: See the latest copies of the Food Price Trend Press Release and Food Cost Review Report

8. STATUTORY MEASURES INVESTIGATIONS • Dairy- Recommended & Approved (Industry requested to submit a transformation plan) • Red Meat- Recommended & Approved (for only 2 yrs) • Sorghum- Recommended & Approved • Imported Cotton Lint-Recommended non-approval & immediate implementation of the Cotton Strategic Plan • Winter Cereal- On-going • Cotton- Registration, Records and Returns • Conditions on the use of levy funding: • 20%- Transformation • 10%- Administration • 70%- Research, Development, Consumer Assurance, Communication • NB: See the 2005 Report on Statutory Measures.

9. USE OF STATUTORY LEVIESCOLLECTED

10. SECTION 7 INVESTIGATIONS • Fresh Produce Markets • Competitiveness Study • Game Section 7 Investigation • Sorghum Section 7 Investigation • Citrus Exports Section 7 Investigation • Input Cost Monitoring Section 7 Investigation

11. MARKETING SCHEMES(On-going) • Red Meat (with MIT Structures) • Market based Incentives on livestock marketing (Auction, Feedlot, Direct to Abattoir, Local market) • AgriBEE ownership options • Infrastructure requirements • Stock improvement requirements • Training • Grains (Cooperatives) • Working through Co-operatives on Contract growing models (Input Finance, Machinery, Marketing, Skills Development ) • AgriBEE ownership options • Citrus • Marketing (Export incentives schemes, local markets through retailers) • Orchards Ownership Models • BEE options in logistics • AgriBEE ownership options in Fruit Exporting Companies

12. SRATEGIC PLAN FOR 2006/07

13. RESTRUCTURING • Changed administration from a Commodity base to Competency base • The Marketing Act Review Process will in future inform the structure and mandate of the Council • Four Key competencies are: • Marketing & Trade • Economic Research • Enterprise Development • Statutory Measures

14. MARKETING & TRADE

15. MARKETING • Marketing Schemes on Citrus, Grains & Red Meat (Incentives, viable empowerment models, etc) • Produce a series of Annual Industry Specific Growth Perspectives • Collaborate with Table Grape Industry to undertake Market Research on Russia & China • Collaborative market research with other sectors will be undertaken • Address marketing issues coming from the CEO’s Forum and the Presidential Working Group on Commercial Agriculture (competition, business costs, exports, food safely, etc

16. ECONOMIC RESEARCH

17. ECONOMIC RESEARCH • Create a Research Fund - NAMC to contribute an amount to start the Fund • Other donor encouraged to contribute • Fund ring-fenced for Economic Research purpose only • Research committee to come-up with research themes • Call for proposals from Universities & other research associates

18. RESEARCH FOCUS AREAS • Competitiveness • FPM, Input Cost Monitoring, Trade Data • Price Analysis • Consumer Markets, Emerging Markets, Competitor Analysis • Markets • Sector Studies, Repositioning, Trade Strategy, Generic Marketing of SA Products • Supply Chains • Transaction Costs, Benchmarking, Logistics, Cross Border Supply Chains • Policy • Levy, Transformation, Marketing Schemes, AgriBEE • Research Interns

19. ECONOMIC RESEARCH • Undertake Section 7 Investigations on: • Input Cost Monitoring • Goats • Citrus • Food Price Monitoring • Food Cost Review • Quarterly Food Price Trends • Forge closer links with the AEASA (Present Fresh Produce Investigation Report at AEASA conference) • Partnerships with international research orgs eg. IFPRI

20. ENTERPRISE DEVELOPMENT

21. KEY ACTIVITIES • Develop & implement models for Agribusiness Support • Models: • Business Linkages as an empowerment model • Cooperatives/ agribusiness as key points of leverage • Work with structures currently receiving levies (eg, citrus, livestock, dairy and potato) to address AgriBEE targets eg, procurement, ownership, training, etc • Engage Fresh Produce Markets to develop strategy for increased black farmers/wholesaler/transporters/processors participation • NB: Target CASP and MAFISA as a key incentive

22. DATABASE • Supplier database with profiles of Commercial Black Agribusinesses • Develop supplier relations with major buyers of Ag. Products in RSA • Link agribusiness in supplier database to identified buyers • Use ATAF to support Agribusinesses technical requirements

23. AGRIBUSINESS TECHNICAL ASSISTANCE FUND • Create an Agribusiness Technical Assistance Fund to support Agribusinesses in database - NAMC to contribute an amount to start the Fund • Trusts and Forums encouraged to contribute • Fund ring-fenced for Black Agribusiness Technical Support only • A policy on the use of the fund will be developed • The fund will be used on a cost sharing basis with agribusiness contributing a certain amount • Agribusiness will be encouraged to apply for specific technical assistance, eg. Appointment of technical advisors on AgriBEE transactions, Business Plan, Certification such as EuroGap, etc

24. EXPORT EXPOSURE VISITS • Develop policies on export exposure visits • Identify agribusiness in Supplier Database ready for export • Identify Exports & Training opportunities • Partner with other organizations to facilitate visits

25. STATUTORY MEASURS

26. KEY ACTIVITIES • Investigations • Monitoring and review • Reports to Department of Agriculture • Registration of Directly Affected Groups • Crop Estimate Liaison Committee oversight

27. PLANNED WORKSHOPS • Planning four workshops • Industry Specific Competitiveness meetings • Trade strategy workshop in collaboration with DoA & OECD • Marketing incentives for the emerging sector • Report of the Fresh Produce Investigation (at AEASA conference) • Planning Breakfast Meetings • Launch of Quarterly Food Price Trends • Presentation of Annual Food Cost Review

28. BUDGET

29. THANK YOU