AGRICULTURAL RESEARCH COUNCIL Strategic Plan 2010/11- 2014/15 DR. Shadrack. R. Moephuli President & CEO

1. AGRICULTURAL RESEARCH COUNCILStrategic Plan2010/11- 2014/15DR. Shadrack. R. MoephuliPresident & CEO

2. To CONDUCT RESEARCH, DEVELOPMENT & TECHNOLOGY TRANSFER IN ORDER TO: Contribute to better quality of life; Facilitate/ensure natural resource conservation Promote agriculture & industry; ARC MANDATE PER ACT

3. Dr. Mohammed Jeenah (R & D) Ms. Anati Canca (Tech Transfer) Mr. Gabriel Maluleka (CFO) Mr. Michael Netsianda (HR & Support) Ms. Tobey Matlaisane (Communications) Mr. Craig Matthews (Company Secretary) ARC TEAM

4. DAFF Agriculture Production Strategy Comprehensive Rural Development Programme (CRDP) National R & D Strategy Agriculture R & D Strategy Ten Year Innovation Plan for Science & Technology African Agenda – NEPAD Consolidated Science & Tech Plan of Action Comprehensive African Agricultural Enablers & alignment to KRAs

5. Alignment with Medium Term Strategic Framework (MTSF) Priorities Strategic approach to R & D and Technology Transfer Alignment of strategic approach with Council mandate Alignment with resources PFMA requirement PURPOSE OF STRATEGIC REVIEW

7. Growth in agriculture – increased productivity Growth in exports – innovation (products & processes) Reduction in rural poverty – productivity improvements Mitigation of agricultural risks Business analysis – optimize performance & reduce duplication Synergy & collaboration Ratio of scientists – critical mass & optimum performance Improve efficiency Improve reporting controls MANDATE FROM COUNCIL

8. VISION: “Excellence in Agricultural Research and Development” MISSION: “The ARC is a premier science institution that conducts fundamental and applied research with partners to generate new knowledge, develop human capital and foster innovation in agriculture, through technology development and dissemination, and competitive commercialization of research results, in support of developing a prosperous agricultural sector” VISION AND MISSION

9. Batho Pele principles Ons maak ‘n plan TARGET Truth Accountability Respect Growth Excellence Trust VALUES

10. ARC Mandate: To conduct research, development and technology transfer in order to: • promote agriculture & industry; • contribute to a better quality of life • facilitate/ensure natural resource conservation Mission Statement: The Agriculture Research Council is a premier science institution that conducts fundamental and applied research with partners to generate new knowledge, develop human capital and foster innovation in agriculture through technology development and dissemination, and competitive commercialisation of research results in support of developing a prosperous agricultural sector. Vision: Excellence in Agricultural Research and Development Generate, develop and apply new knowledge and technology Sustainable use and management of natural resources Enhance Nutrition, Food Security and Safety Enhance the ability of the agricultural sector to manage and mitigate agricultural risks Achieve organisational growth and sustainability Technology Transfer

11. MINISTER COUNCIL (BOARD) Vacant CHIEF EXECUTIVE OFFICER & Accounting Authority (interim) COMPANY SECRETARY CHIEF RISK OFFICER CHIEF FINANCIAL OFFICER MR. MALULEKE EXEC. DIR HR & SUPPORT MR. NETSIANDA EXEC. DIR. R & D Dr. JEENAH EXEC. DIR. TECH. TRANSFER MS. CANCA

12. Product Portfolio Total Value Chain VEGETABLES LIVESTOCK HORTICULTURE • Primary • Agriculture Processing Packaging / Additional Value add GRAINS Primary Agricultural activity Primary Agricultural activity Primary Agricultural activity Processing Processing Processing Packaging / Additional Value add Packaging / Additional Value add Packaging / Additional Value add LANDSCAPE FOR ARC PRIORITIES Start with • Industries that deliver growth now and/or are positioned for further growth: collaborate & de-bottleneck • Industries that are important for desired outcomes but are not yetcompetitive: lead the way AGRO -- PROCESSING Primary Agriculture Processing Packaging / Value add the Foundation • Fix the basics: scientific solutions • Research & Development Strategy • Human Capital Development • Knowledge Infrastructure • Mitigate agricultural risks • Enablers for Innovation Cross-Cutting Issues • New & improved technologies • Technology Transfer strategy • Support CRDP • Competitiveness of SA Agric. • Organizational Sustainability

13. Integrating Multi – disciplinary Strategic Objectives

14. CRDP Goals, Strategies & Objectives Poverty Eradication Goals Goals Good Governance Govt. Policies Govt. Policies Job Creation Economic Growth Access & Participation Profitability & Competitiveness Sustainable Agricultural Resource Use Exports Land Reform Production Agribusiness Services & Infrastructure ARC Interventions ARC Interventions

15. Competitive & comparative advantage (e.g. ostrich industry) Research towards desired outcomes Creating a critical mass on specific focus areas Technology Transfer to communities for economic growth Identifying areas of future potential research Broadening the base of resource mobilization (EU, Gates Foundation, NRF, MRC etc) Diversifying capacity building initiatives & collaboration RESEARCH STRATEGY

16. Themes: Cross – Cutting Programmes Multidisciplinary approach across institutes e.g. Climate Change, renewable energy Institute Specific Programmes Single institute & commodity specific e.g. wheat at SGI; maize at GCI; citrus at ITSC etc Technology Platforms Resource for Themes & Institutes – e.g. Genomics, biotechnology etc RESEARCH APPROACH

17. RATIONALE: Critical component of a knowledge based economy and people; Underpins generation of new (novel) products/processes/ technologies; Contributes towards excellence and scientific knowledge; Enables ARC to use best science to address agricultural problems unique to RSA & Africa; Generates intellectual property essential for economic development Strategic Objective 1Generate, Develop and Apply new Knowledge and Technology

19. RATIONALE: Improve efficient use of agricultural natural resources for food production; Ensure sustainable use and management; Reduce risks of failure in agricultural productivity; Comparative advantage to industries dependent on natural resource – based agriculture Strategic Objective 2Sustainable use and management of natural resources

21. RATIONALE: Increase access and availability of nutritious food; Broadening the food base to enhance food security and nutrition; Improving the inherent nutritional quality of food at source; Broadening participation in the value chain and reducing waste; Integrated approaches to optimize impact and adoption of new technologies. Strategic Objective 3Enhance Nutrition Food security and Safety

23. RATIONALE: Reduce vulnerability to climate change; Solutions and management of emerging pests, diseases, weeds and alien invasives; Management of natural disasters in agriculture; Manage risks to increased agricultural productivity and trade Improved utilization of bio – resources Strategic Objective 4Manage and mitigate agricultural risk

25. RATIONALE: Creation of value through Agricultural R&D Transfer ability to utilize new & improved technologies Contribute to growth in agricultural sector through Tech Transfer and adoption programmes Contribute to increase in exports through the dissemination of technological innovations Effective management of Intellectual Property as per law STRATEGIC OBJECTIVE 5Technology Transfer

26. OUTCOMES ARC Profile Effective Agric-Sector Socio-economic Benefits PROCESSES Commerciali-sation Business Generation Training DECISION SUPPORT: Agric. Economic Services & Biometry ENABLERS IP Protection & Awareness Knowledge Management Research and Development Relationships between the Technology Transfer Elements

28. Attraction & Retention Human Capital Development Compliance to Policies & Procedures Organizational & Individual Performance Effective Legal Services ARC Image & Culture Integrated physical & ICT Security Effective utilization of ICT services SUPPORT FOR SUCCESS

29. Culture of Excellent Performance throughout ARC. Recruitment of senior scientists to drive research agenda Implementation of HRD strategies to grow new skills base. Accelerate joint appointments with academic institutes and research bodies Maintaining harmony with organised labour Manage Transformation and change management interventions Implementation of a robust reward & retention strategies HR STRATEGIC IMPERATIVES

30. Implementation of a robust ICT strategy; Effective governance and management practices to align ICT and core business; Maximise value for money from existing and future technology investments; Ensure access to appropriate skills and resources. Ensure a secure ICT infrastructure ICT STRATEGIC IMPERATIVES

31. Image & brand management. Development & implementation of an integrated communication strategy Managing our clients & stakeholders Ensuring positive media coverage and reputation Dissemination of information to facilitate technology transfer. MARKETING & COMMUNICATION

32. Physical security appraisals/evaluations. Implementation of an Asset Management Strategy Monitoring & evaluation of Fraud Prevention Plan. Legislative compliance assessment Contract review and drafting Management of servitude applications within the ARC with regard to ARC property and ensured that the ARC get value with regard to those servitudes SECURITY & LEGAL SERVICES

33. Operational PG still minimal- 6% Limited External Income Growth - 3% Cost Containment (Other Operating Costs) – 9% Replacement and upgrading of infrastructure Improving organisational processes to eliminate adverse audit findings. BUDGET FOR IMPLEMENTATIONKEY CONSIDERATIONS

34. PG (Operational) increase 6% Including Capex 15% External Income Increase 3% General salary increase 6% Other operating Costs 9% Budget Surplus 2009/10 R33m Cash and Cash equivalents 2009/10 R45m BUDGET ASSUMPTIONS

37. Revenue PG: R590m External: R277m Other: R 16m Expenditure Personnel: (R508m) Operating Costs: (R304m) Depreciation (R23m) ADD Depreciation: R23m WC Movement: R20m Cash at Beginning Of Year Capex (R86m) Total R884m Total(R835m) Total R43m Total R45m Total (R86m) ARC Consolidated Budget: 2010/11 SurplusR 49m Cash Ex OpsR92m Net Cash for YearR6m Cash end of YearR52m

40. Audit Issues Project costing/management Cash Management Supply Chain Management Capacity Funding (for sustainable growth) AREAS OF FOCUS IN 2010/11

41. Aging Infrastructure Ageing scientific capacity (demographics) Reduced skills base for recruitment (scientists, engineers & researchers etc) Urban encroachment – increasing costs of security and competing demands for land use Meeting its transformation obligations e.g. 50/50 gender representation; ICT information systems requiring upgrade Insufficient funding (PG and contract income) that may lead to staff lay-offs CHALLENGES

42. Re a Leboha Siyabulela Siyabonga Siyathokoza Ha khensa Ria livhuwa Baie dankie THANK YOU