NAMC Annual Report Presentation to the Portfolio Committee on Agriculture and Land Affairs by

1. NAMC Annual Report Presentation to the Portfolio Committee on Agriculture and Land Affairs by TR Ramabulana

2. Strategic orientation • Take cognisance of the mandate of the NAMC as instituted in terms of the MAPA (1996) • Most important in this respect are the following sections of the MAPA,(see App for detail): • Section 2(2); • Section 7; • Section 9(1) (to comply with Section 9(2)); • Sections 16 and 17.

3. Objectives of the MAP Act • The increasing of market access for all market participants • Promotion of efficiency of marketing of agricultural products • Optimization of export earnings from agricultural products • The enhancement of the viability of the agricultural sector

4. 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 and changes to statutory measures which the Minister directs it to prepare • When requested by Minister and at least annually, report on the activities • Undertake investigations and advice 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 possibilities of promoting the objectives mention above • The effect that marketing of products has on the objectives mentioned in above • Monitor the application of statutory Measures and report thereon to the Minister at least every two years.

5. Legislative Mandate • Established in terms of section 3 and 4 of the MAPA, No.47 of 1996 “The NAMC shall, when requested by the Minister or of its own accord, investigate the establishment, continuation, amendment or revocation of statutory measures and other regulatory measures affecting the marketing of agricultural products, evaluating the desirability, necessity or efficiency of the measures and, it necessary, proposing alternatives to the establishment, continuation, amendment, or repeal of a statutory measure or other regulatory measures and reports to and advise the Minister accordingly”

6. Governance Structures • Audit Committee • Human Resources committee • Risk committee • Executive Committee • Research committee • Bargaining committee • Management committee

7. Previous Council Members • Dr. ASM Karaan (Chairperson) • Mrs. D Ndaba (Vice-Chairperson) • Mr. GP Dall • Prof. JFK Kirsten • Mrs. SE Moolman • Mr. F Lawrence • Mrs. L Keyter • Mr. Z Duze • Mrs. C Maku • Mr. A Jefta

8. New Council Members • Mrs. Ntombi Msimang (Chairperson) • Dr. ASM Karaan (Vice-Chairperson) • Prof. HD Van Schalkwyk • Mr. AD Young • Prof. JFK Kirsten • Mrs. SE Moolman • Mrs. C Molo • Mr. DB Montshwe • Mrs. M Mannya • Mrs. M Gill

9. Corporate Governance Committee • Audit committee • Mr. Victor Nondabula (Chairperson) • Mr. GP Dall • Ms. M Moja • Mr. F Lawrence • Mr. R Matlou • Human Resources Committee • Mr. GP Dall (Chairperson) • Ms. D Ndaba • Ms. SE Moolman • Ms. C Maku • Ms. L Keyter • Mr. Z Duze • Mr. TR Ramabulana • Risk Management Committee • Ms. J Sethu (Chairperson) • Mr. C Gladwin • Mr. TPN Siala

10. Outputs and Service Delivery Trends

11. Staff Representation as of 31st March 2007

12. Section 7 Investigation • Solutions for sustainable exports in the citrus industry • Fresh produce section 7 • Wildlife section 7 • Sorghum section 7 • Wine industry section 7

13. Food Price Monitoring • One of the recommendations from the 2003 food price monitoring committee was that SA should have a food price monitoring desk for both urban and rural food prices. • One annual Food Cost review • Section on rural food price monitoring • Four quarterly food price trends

14. Research Programmes • Sub-sector studies • Beef, Chicken meat, citrus, Viticulture, wool, Deciduous fruit, Potatoes, Goats, Rooibos, Honey bush) • Opportunities in the Russian fruit market • Impact of RSA class 1 exports to African, Indian Ocean Island countries • SA Agricultural protection: How much policy space is there? • Examining the India, Brazil and SA (IBSA) triangular trading relations • Support for potato market development in North and West Africa • Strategies to promote competitiveness and equity in SA agribusiness: the case of BEE in the SA wine industry • BFAP: Annual baseline • Impact of deregulation on agricultural efficiency and productivity in South Africa • www.namc.co.za/publications/published reports/ 2006 or 2007

15. Academic Support Programmes • An enquiry into the potential for change management by selected wine producers cooperatives in the Robertson wine district. MSc programme • Institutional analysis of SA’s new cooperative Act. MSc programme • Factors influencing the sustainability of smallholder co-operatives in Kzn. MSc programme • An economic analysis of Thohoyandou Town and Tshakhuma informal fruit and vegetable markets. MSc programme

16. Market Development Programmes • Strategic Objective: • Increased market access by black farmers • Grain and oilseed: • Approved by Council and submitted to Minister • Funding allocated by Maize Trust • Implementation through Trusts • Citrus: • Approved by Council and submitted to Minister • Currently negotiating with donors • Red Meat: • Approved by Council and submitted to Minister • Possible funding through the new red meat levy

17. Advice on marketing and trade • Strategic goal was to address issues that negatively affect the export of agricultural products • Facilitated two workshops on: • Comparative country experiences with agricultural trade • Application for exemption in terms of the competition Act

18. Export Promotions • Netherlands • Five agribusinesses visited Netherlands. • Partnership with SA Agri Academy and Centre for the Promotion of imports from Developing Countries • Purpose was to expose agribusinesses to different markets in Netherlands • United States • Black woman owned wine label, Sibeko wines launched in the US • In partnership with Delta Airlines • The following labels are now part of Delta’s menu • Cape Concert • African Whisper • Pssst! • Sibeko

19. Skills Development and Training • Making Markets Matter • Export readiness course with CDI and Agri Academy • Fair trade • Marketing and technical requirements • Finance, costing and farm management

20. Statutory Measures applicable during 2006/07 financial year

21. STATUTORY LEVIES APPROVED

22. TOTAL AMOUNT OF STATUTORY LEVIES COLLECTED

23. Overview of status of statutory measures • 10 industries collected just over R149 million • Spending • 42% spend on research • 17% spend on emerging farmers development projects • 15% on information • 10 on export promotion • Collection rate: • The lowest rate was in sorghum at 67%

24. Function Financed through levies

25. Total levy expenditure for the period under review compared to the previous two surveys

26. Commodity Related Activities • Dairy • Milk SA restructured following recommendations of the task team appointed by industry to ensure proper representation at the board • Cotton • Industry still in distress • The recent increases in price pf cotton will bring relief to farmers, but the sustainability of cotton SA and cotton trusts still in question

27. CONTROL BOARDS STILL IN EXISTENCEAS AT 31 MARCH 2007

28. SUMMARY OF THE FINANCIAL STATUS OF INDUSTRY TRUSTS

29. Budget Utilization INCOME R13,639,000 Made up of: • Transfer from DoA R12,710,000 • Other income (Interest earned and Sponsorships) R 929,000 EXPENDITURE R18, 972,000 Made up of: • Personnel expenditure R 8,243,000 • Administration R 2,376,000 • Professional services R 7,992,000 • Depreciation R 305,000 • Finance Costs R 56,000

30. Irregular Expenditure

31. Issues • Funding • Ministerial approval for R30 million • Received R13,2 million • New Marketing Act • Outline the proper positioning of the NAMC