PRESENTATION TO THE PORTFOLIO COMMITTEE OF AGRICULTURE, FORESTRY AND FISHERIES

1. PRESENTATION TO THE PORTFOLIO COMMITTEE OF AGRICULTURE, FORESTRY AND FISHERIES 2014/15-2018/19 STRATEGIC AND ANNUAL PERFORMANCE PLAN PRESENTATION DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES 08 July 2014 CONFIDENTIAL

2. Presentation Outline Compliance Statement Overview of the Minister Strategic Overview Strategic goals and objectives Strategic outcomes oriented goals Objective statements Annual Performance Plans Staff Establishment and Organogram Budget CONFIDENTIAL CONFIDENTIAL 2

3. In terms of Section 55 (2) (b) and Section 56 of the Constitution, the National Assembly must provide mechanisms to maintain oversight of any organ of state and may summon/require any institution to report to it. In acknowledgement of the responsibility of the Portfolio Committee, the Department of Agriculture, Forestry and Fisheries (DAFF) herewith: Presents its 2014/15-2018/19 Strategic Plan and 2014/15 Annual Performance Plan (APP) to enable the Portfolio Committee to exercise oversight and to recommend the same to Parliament. Reports that the Strategic Plan and APP was tabled in Parliament on 27 June 2014 This Strategic Plan is in line with the requirements of the Public Finance Management Act and Treasury Regulations. CONFIDENTIAL Compliance Statement

4. Overview The Strategic Plan is premised on key government medium-term priorities that are informed by the National Development Plan (NDP) and the New Growth Path (NGP) which repositions food security and agrarian transformation high on the economic development agenda of the country. In his State of the Nation Address (SONA), on 17 June 2014, President Zumastated that “ we have to embark on radical socio-economic transformation to push back the triple challenge . . . We have identified agriculture as a key job driver.” The President went on to say that Government will provide comprehensive support to smallholder farmers and support will be provided to communities as well to engage in food production and subsistence farming to promote food security, in line with the FetsaTlala food production programme. CONFIDENTIAL

5. Organisational Environment DAFF in its current form was established in 2009. • Forestry was formerly with the Department of Water Affairs and Forestry • Fisheries was with the Department of Environmental Affairs and Tourism • A significant part of the 2009/14 term was devoted to the integration and merging of these functions into a new department delivering a shared mandate. Agriculture is a concurrent function while Forestry and Fisheries are national functions. CONFIDENTIAL CONFIDENTIAL

6. 2014/15 – 2018/19 STRATEGIC PLAN CONFIDENTIAL 6

7. Table of Contents: Strategic Plan Foreword, Statements and Sign-off Strategic Overview Programme and Sub-programme plans Links to other plans Annual Performance Plans Technical Indicator Description Service Delivery Improvement Plan Budget CONFIDENTIAL

8. Strategic Overview VISION United, prosperous and transformed agricultural sector that contributes to food security for all MISSION Advancing food security and agrarian transformation in the agricultural sector through innovative, inclusive and sustainable policies and programmes VALUES • Drive: driven to deliver excellent service through leadership and professionalism • Attitude: being an ambitious, passionate, reliable and dedicated workforce • Fairness: acting with objectivity, empathy, integrity and transparency • Focus: focusing on people, economic and rural development CONFIDENTIAL

9. Legislative and Policy Mandates The Constitutional mandate of DAFF is derived from sections 24(b)(iii), 27(1)(b) of the Constitution. The Legislative mandate of DAFF is derived from 31 Acts of Parliament related to Agriculture, Forestry and Fisheries which are managed by the DAFF. The policy mandates includes: • National Development Plan • Medium Term Strategic Framework • Industrial Policy Action PlanIntegrated Growth and Development Plan • Agricultural Policy Action Plan CONFIDENTIAL

10. Situational Analysis – Key Issues Thousands of hectares of underutilised arable land that can be put back into production, especially with concerted support for input access, mechanisation services, technical support and linkages to local markets Increased movement of goods and people which, in turn, has led to increased risk to the country and the necessity for increased measures to anticipate and prevent possible introductions of animal diseases, plant pests, and other undesirable articles such as unsafe food and feed, including agricultural remedies The growing food insecurity not only in South Africa but in Southern Africa, climate change and inadequate investment in agricultural production Market access for developing producers has also been identified as one of the key challenges for the department. The challenge facing the sector is to diversify its export destinations, as well as to broaden the basket of commodities and value-added products that are destined for export markets. The challenge of growing the smallholder sector is closely tied up with the challenge of making smallholder agriculture more remunerative. Currently, more than half of all smallholder households live below the poverty line CONFIDENTIAL

11. Situational Analysis – Key Issues One of the main limitations with fisheries is that catch volumes depend on fish stocks, which vary naturally and/or are subject to depletion owing to overexploitation. Inshore species, especially, tend to be in a state of stock depletion, increasing illegal fishing and poaching, and increasing demand for access to the finite marine resources. Promote transformation in the sector by modifying its licensing regime as per the Small-scale Fisheries Sector Policy in South Africa. Decline in both softwood and hardwood plantation area planted since the mid-1990s,and secondly, there has been a marked increase in the area for pulpwood purposes as compared to the area for saw logs and mining timber. Shortages of timber products; biased equity distributing in the value chain; slow afforestation uptake owing to cumbersome licensing processes and the impact of natural hazards which threaten food security. It is important to note that the competitiveness of agriculture is being eroded by high and rising input costs. Unsustainable land-use practices are intensifying and this has contributed to the deterioration of soils. CONFIDENTIAL

12. Strategic Planning Process Strategic Planning, and performance monitoring and reporting, is an institutionalised business process. It is a iterative annual process • May: The Department commences with the planning process by conducting environmental scan • June: Consolidate research, and identify high level priorities • July-August: The planning Quarterly Review meeting takes place to prepare the first draft strategic plan with APP • August: First draft strategic plan submitted to DPME and Treasury • October: Develop second draft strategic Plan , refine the indicators and align to government wide priorities • November- Submit second draft strategic plan submitted to DPME and Treasury • December, January-February: Refine the strategic plan, align the budget and all the requirements in preparation for tabling CONFIDENTIAL

13. Strategic Goals and Objectives CONFIDENTIAL

14. Strategic Outcome Oriented Goals CONFIDENTIAL

15. Objective Statements – Programme 1 Maintain a sound system of internal control and risk management through the development of the Risk Management Plan and continuous updating of Risk Register and development of Internal Audit Plan and performance reports. Strengthen the skills and human resource base through implementation of the HR Plan and HRD Strategy. Improve financial management to obtain an unqualified audit opinion annually. Provide an enabling environment for the implementation of policies and Bills to Cabinet Integrated funding framework approved and implemented. Strengthen relations between national and provincial, local and international stakeholders through coordination of 38 stakeholder engagements and implementation of communication strategy per annum. Integrate the departmental planning processes and mechanisms to reflect the broad strategic outcomes of government with a focus to implement performance measures to improve decision making. Coordinate policy and research agenda to align with the department’s mandate and key strategic priorities. CONFIDENTIAL 15

16. Objective Statements – Programme 2 Promote animal, plant production and products for prioritised value-chain commodities through monitoring, implementation of animal improvement schemes and plant legislated certification and improvement schemes. Enforce regulatory framework to reduce level of disease outbreaks in production areas and interception at export channels. Ensure Integrated Animal Disease Management Plan is developed and implemented. Enforce regulatory framework to reduce level of disease outbreaks in production areas and interception at export channels to a minimum by implementing regulatory compliance and monitoring interventions to prevent plant and animal pest/disease outbreaks (quarantine inspections, surveillance and testing). Ensure access to primary health care services for 23 district municipalities by finalising Compulsory Community Services (CCS) regulations, delivering mobile units and deploying veterinary graduates to rural areas. Endangered Indigenous agricultural genetic resources conserved in situ and ex situ to prevent extinction of animal species and landrace crops per year. CONFIDENTIAL 16

17. Objective Statements – Programme 3 Institutionalise the national policy on food and nutrition security by facilitating the development and implementation of the Food and Nutrition Security Implementation Plan, coordinate establishment of food security committees and support to 80 000 smallholder producers. Improve delivery capacity in support of sustainable growth in the sector through the implementation of the AFF National Education and Training Strategy and National Extension and Advisory Policy/ Provide strategic leadership to ensure effective and efficient utilisation of all farmer development support through the development and implementation of norms and standards on comprehensive support to different categories of producers. CONFIDENTIAL 17

18. Objective Statements – Programme 4 Smallholder and commercial producers in rural areas organised and linked to mainstream markets. Coordinate processes aimed at resolving value-chain problems with the purpose of enhancing value chain competitiveness and meeting consumer needs institutionalising fresh produce, fruit, poultry, and the grain and dairy value chain. Establish new cooperatives through mobilisation of smallholder producers into organised structures and provide support (training) to existing cooperatives. Ensure compliance to charters through monitoring the implementation of the AgriBEE Sector Code and Forestry Sector Code and align these sector codes to the Amended BBBEE codes. Implement initiatives to support producers to access international markets through the implementation of the Trade Strategy and International Relations Strategy. CONFIDENTIAL CONFIDENTIAL 18

19. Objective Statements – Programme 5 Ensure sustainable irrigation by supporting the revitalisation and expansion of irrigation schemes through developing an irrigation strategy that is approved by EXCO and revitalising ha on irrigation schemes. Replanting ha in Temporary Unplanted Places areas caused by clear-felling operations and other factors such as fire damage. Restore ha of agricultural land through rehabilitation. Restore ha of land through rehabilitation of state indigenous forests and woodlands. Implement climate change programmes in order to improve the adaptability and productivity of livestock and plant species. CONFIDENTIAL CONFIDENTIAL 19

20. Objective Statements – Programme 6 Provision of technical and advisory support services to fish farms. Aquaculture Bill developed to create an enabling environment for the sector growth. Conduct aquaculture research projects to support sustainable development of the aquaculture sector. Framework for allocation of fishing rights (access to harvest fish for a specific period of time) to commercial fishing sectors to ensure sustainable utilisation, as well as equitable and orderly access to the marine living resources. Implement Small Scale Fishing Policy to alleviate poverty and promote food security through the cooperative development and support programme. Implement compliance through enforcement mechanisms (inspections, investigations on rights holders, partnerships with law-enforcement agencies, development of marine data monitoring system and capacity building in respect of the enforcement of Marine Living Resources Act (MLRA) of the Integrated Fisheries Security Strategy (IFSS) in order to combat illegal fishing activities. Measure the percentage of fish stock levels to rebuild threatened fish stock (hake, West Coast rock lobster and abalone). Implement efforts to recover prioritized fish stocks (hake, west coast rock lobster and abalone) to ensure resource and industry sustainability. CONFIDENTIAL 20

21. Programme 1 - Administration Develop an efficient and effective internal controls to ensure that we maintain the status of an Unqualified audit report. Approve and implement Human Resource Plan and implemented. Develop a framework to Integrate Development Funding. Table 14 Bills to Cabinet. Establish and coordinate Institutional structures and ensure their functionality. Align the Strategic plan and APP to MTSF, while ensuring also reviewing all the DAFF policies for compliance and relevance to the needs of the sector. Research aligned to key strategic priorities and protocols. CONFIDENTIAL CONFIDENTIAL

22. Programme 2 - Agricultural Production, Health and Food Safety Provide animal improvement schemes for prioritised value chain commodities and plant legislated certification Improvement schemes Conduct planned animal disease risk surveillance to detect, prevent and mitigate animal diseases and pests Implemented regulatory compliance and monitoring interventions in plant and animal to prevent pest and disease outbreaks Develop and implement Animal Disease Management Plan to ensure effective Management of biosecurity and related sector risks Compulsory Community Service Programme will be implemented Primary Animal Health Care Programme will be implemented through the delivery of clinics to provinces Conserve indigenous/ Endangered agricultural Genetic resources in situ and ex situ CONFIDENTIAL

23. Programme 3 - Food Security and Agrarian Reform Lead and coordinate government food security initiatives by implementing Food Security and Nutrition Policy , continuously support smallholders producers. Cultivate hectares for food in communal areas and land reform projects. Enhance Skills capacity for efficient Service delivery in the sector by reviewing and implementing National Education and Training Strategy and the National Extension and Advisory Policy. Develop norms and standards for comprehensive producer development support to strengthen planning, implementation and monitoring of comprehensive support. CONFIDENTIAL CONFIDENTIAL

24. Programme 4 - Economic Development, Trade and Marketing Ensure support for market access and processing of AFF products by : Linking producers to markets and Institutionalise Value-chain networks Establish commodity based cooperatives and continue to support existing with training Report on implementation of the AgriBEE Sector Code and the implementation of the Forestry Sector Code Implemented Through Trade Strategy DAFF will monitor and implement trade Agreements and participate in trade negotiations, facilitate capacity building on market Research and market Intelligence in partnership with ITC Facilitate SADC and AU engagements Strategic engagement of partners within Africa and Africa multilateral agencies for implementation of joint projects and action plans Through International Relations Strategy implementation, CAADP compact will be signed Strategic engagement of partners within South-South, North-South and multilateral agencies/ forums CONFIDENTIAL

25. Forestry and Natural Resources Management Ensure the conservation, protection and rehabilitation of hectares of agricultural land, woodlands and Indigenous forests Ensure appropriate responses to climate change through the implementation of effective prescribed frameworks and including implementation of Climate change programme Increase production and productivity In prioritised value chains by planting of hectares in Temporary Unplanted Places Develop Irrigation Strategy in support of irrigated agriculture CONFIDENTIAL

26. Programme 5 - Fisheries Management Increase production and productivity through supporting fish farms supported Develop Aquaculture Bill and conduct aquaculture research projects Develop and implement framework for Fishing Rights Allocation Process (FRAP) to address the process in allocating Rights Small-scale fisheries policy will be implemented Regulations promulgated under MLRA amended to include the management of the Small-scale fisheries Sector DAFF will implement the Integrated Fisheries Security Strategy (IFSS) in response to the protection of natural resources Recovery of prioritized depleted fish stocks will be achieved through Recovery plans and a research report will be produced to indicate the levels of stock CONFIDENTIAL

27. Planned Policy and Programme Initiatives The Integrated Growth and Development Plan (IGDP) for Agriculture, Forestry and Fisheries : developed in response to the policy requirements of Outcomes 4 and 7 that relate to job creation, rural development and food security. APAP: The high-level responses offered in the IGDP have been translated into the new APAP, serving as the implementation arm of the IGDP. The encompassing objectives of APAP are to promote labour absorption and broaden market participation, strategic interventions aimed at increasing value-chain efficiencies and competitiveness, focusing on selected subsectors/value chains. The Integrated Food and Nutrition Security Policy CONFIDENTIAL

28. Staff Establishment CONFIDENTIAL

29. BUDGET CONFIDENTIAL 29

30. Per Programme Programme2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Administration 694 570 725 558 763 904 807 409 Agricultural production, health & food safety 2 199 796 2 252 651 2 089 434 2 200 434 Food security & agrarian reform 1 711 095 1 718 832 1 768 669 1 857 469 Economic development, trade & marketing 294 223 247 491 309 945 274 219 Forestry & natural resources management 1 364 923 1 233 410 1 279 342 1 351 002 Fisheries management 427 776 443 267 462 871 488 541 TOTAL 6 692 3836 621 2096 674 1656 979 074 CONFIDENTIAL

31. Per Economic Classification 2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Compensation of employees 1 695 265 1 833 428 1 934 616 2 056 497 Goods and services 834 953 857 209 866 436 908 309 Interest and rent on land 1 119 1 228 1 292 1 357 Payments for financial assets - - - - Transfers and subsidies 4 036 260 3 832 383 3 771 388 3 907 457 Payments for capital assets 124 786 96 961 100 433105 454 TOTAL 6 692 3836 621 2096 674 1656 979 074 CONFIDENTIAL

32. Detail per programme 1 - Administration 2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Ministry 31 887 33 364 35 131 37 151 Department Management 23 851 26 419 27 296 28 884 Financial Administration 150 341 155 059 163 298 173 103 Internal Audit 8 515 8 860 9 323 9 877 Corporate Services 159 000 164 068 172 606 182 826 Stakeholder Relations, Communication & Legal Services 74 779 74 813 78 748 83 416 Policy, Planning, Monitoring and Evaluation 79 503 84 468 88 507 93 707 Office Accommodation 166 694 178 507 188 995 198 445 Total 694 570 725 558 763 904 807 409 CONFIDENTIAL

33. Programme 1 – Per economic classification 2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Compensation of employees 369 727 388 832 408 484 434 218 Goods and services 300 646 311 008 327 912 344 307 Interest and rent on land - - - - Transfers & subsidies 16 795 18 426 20 029 21 031 Payment for capital assets 7 402 7 292 7 479 7 853 Payment for financial assets - - - - Total 694 570 725 558 763 904 807 409 CONFIDENTIAL

34. Detail per programme 2 – Agricultural Production, Health and Food Safety 2014/15 2015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Management 2 866 2 997 3 156 3 343 Inspection & Laboratory Services 315 530 330 813 347 535 368 643 Plant Production & Health 541 047 567 191 596 138 626 843 Animal Production and Health 311 202 470 883 213 037 225 559 Agricultural Research 1 029 151 880 767 929 568 976 046 Total 2 199 796 2 252 651 2 089 434 2 200 434 CONFIDENTIAL

35. Programme 2 – Per economic classification 2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Compensation of employees 409 126 478 647 502 189 533 827 Goods and services 154 987 131 765 139 043 145 995 Interest and rent on land - - - - Transfers & subsidies 1 627 286 1 640 991 1 446 928 1 519 274 Payment for capital assets 8 397 1 248 1 274 1 338 Payment for financial assets - - - - Total 2 199 796 2 252 651 2 089 434 2 200 434 CONFIDENTIAL

36. Detail per programme 3 – Food Security and Agrarian Reform 2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Management 2 796 2 922 3 077 3 259 Food Security 1 067 524 1 070 661 1 116 196 1 172 712 Sector Capacity Development 251 485 269 420 247 683 259 588 National Extension Support Services 389 290 375 829 401 713 421 910 Total 1 711 095 1 718 832 1 768 669 1 857 469 CONFIDENTIAL

37. Programme 3 – Per economic classification 2014/15 2015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Compensation of employees 125 078 132 513 139 694 148 495 Goods and services 149 257 151 500 123 205 127 915 Interest and rent on land - - - - Transfers & subsidies 1 396 241 1 392 950 1 461 924 1 535 021 Payment for capital assets 40 519 41 869 43 846 46 038 Payment for financial assets - - - - Total 1 711 095 1 718 832 1 768 669 1 857 469 CONFIDENTIAL

38. Detail per programme 4 – Economic Development, Trade and Marketing 2014/15 2015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Management 2 792 2 918 3 073 3 259 International Relations & Trade 117 156 115 495 121 052 127 858 Cooperatives & Rural Business Development 118 014 70 007 123 656 77 622 Agro-Processing & Marketing 56 261 59 071 62 164 65 480 Total 294 223 247 491 309 945 274 219 CONFIDENTIAL

39. Programme 4 – Per economic classification 2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Compensation of employees 88 507 93 597 98 096 104 276 Goods and services 43 728 46 002 49 184 51 645 Interest and rent on land - - - - Transfers & subsidies 161 606 107 563 162 319 117 935 Payment for capital assets 382 329 346 363 Payment for financial assets - - - - Total 294 223 247 491 309 945 274 219 CONFIDENTIAL

40. Detail per programme 5 – Forestry and Natural Resources Management 2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Management 6 580 6 908 4 380 4 635 Forestry Operations 485 182 509 773 537 725 569 725 Forestry Regulations & Oversight 58 995 60 588 63 836 67 474 Natural Resources Management 814 166 656 141 673 401 709 168 Total 1 364 923 1 233 410 1 279 342 1 351 002 CONFIDENTIAL

41. Programme 5 – Per economic classification 2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Compensation of employees 529 028 555 195 591 723 629 002 Goods and services 207 612 216 934 227 092 238 448 Interest and rent on land 1 169 1 228 1 292 1 357 Transfers & subsidies 582 175 413 830 411 747 432 333 Payment for capital assets 44 939 46 223 47 488 49 862 Payment for financial assets - - - - Total 1 364 923 1 233 410 1 279 342 1 351 002 CONFIDENTIAL

42. Detail per programme 6 – Fisheries 2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Management 2 065 2 168 2 283 2 427 Aquaculture 32 373 33 836 35 629 37 873 Monitoring Control and Surveillance 69 772 73 427 77 326 82 197 Marine Resources Management 18 648 19 164 20 180 21 451 Fisheries Research & Development 53 587 56 049 59 012 62 730 Marine Living Resources Fund 251 331 258 623 268 441 281 863 Total 427 776 443 267 462 871 488 541 CONFIDENTIAL

43. Programme 6 – Per economic classification 2014/152015/16 2016/17 2017/18 R’000 R’000 R’000 R’000 Compensation of employees 176 445 184 644 194 430 206 679 Transfers & subsidies 251 331 258 623 268 441 281 863 Total 427 776 443 267 462 871 488 541 CONFIDENTIAL

44. That the Portfolio Committee on Agriculture Forestry and Fisheries Recommends the DAFF’s 2014/15-2018/19 Strategic Plan to Parliament; Sustains its support for the long-term sustainability of the DAFF such that the organisation can maintain and accelerate its distinctive role in delivering on its mandate in the most marginalised communities on behalf of government. CONFIDENTIAL Recommendations

45. Thank you !!!