FOODBEV SETA Food and Beverages Manufacturing

1. FOODBEV SETA FOODBEV SETAFood and Beverages Manufacturing Higher Education and Training Portfolio Committee 27th October 2010 Ravin Deonarain CEO

2. Introduction and Appreciation • Thanks and Appreciation: • Hon Minister of Higher Education and Training • Hon Chairperson of Higher Education and Training Portfolio Committee • Hon Committee Members • Representatives of FoodBev Seta • Council Chairman: Mr Willie Prinsloo • Corporate Services Manager: Ms Liezl Gerryts • CFO: Mr Raj Rajcoomar • Skills Development Projects Manager: Mr Khotso N Potele • CEO: Mr Ravin Deonarain Ravin Deonarain

3. Presentation Outline • Food & Beverages Manufacturing Sector • Funds Management • NSDS Performance • Customer Satisfaction • Portfolio Committee’s Specific Emphasis • Strategic Plans F2010/11 • SWOTs Analysis • Provincial Allocations • Youth Unemployment Ravin Deonarain

4. FoodBev SectorEconomic Characteristics • Diverse sector • Price sensitive products • High production volumes – costs driven • Capital intensive and technology driven • Intense brand competitiveness • Dominance - large companies and multinationals • Large number small food manufacturers (85%) • Mergers and acquisitions (brands) Ravin Deonarain

5. FoodBev Sector • Typical Companies SA Breweries, Kellogg's, Nestle, Frito-Lay Simba, ABI, Coke Cola, Tiger Brands, Pioneer Foods Premier Foods, Clover, Oceana Fishing, Enterprize Meats, Nabisco, McCain's Foods, Beacon, Cadbury’s Bokomo, Distell, KWV …………. Ravin Deonarain

6. Economic Characteristics • Manufacturing Sector Output 28 % of GDP • FoodBev Contribution 18% of manufacturing sector • Wages 13,7 % of manufacturing • GDP Contribution 5% of GDP • Employment 2 % of total economy • Employees 220 000 (80% large comp) • Companies 7 500 registered/1800 levy (BER, 2009) Ravin Deonarain

7. Income/Expenditure Trend (Rm) Ravin Deonarain

8. Highlights • Unqualified Audit Report (10 yrs) • Expenditure Rate 96% • Surplus R 7 m • Ploughed back into grants • Sector Challenge • Companies to accelerate progress of learning programmes • Increase Disbursement Rate - Reduce cash-on-hand Ravin Deonarain

9. NSDS Targets Performance Service Level Agreement 2009/10 Ravin Deonarain

10. 2.1 80% OF LARGE FIRMS’ AND 60% OF MEDIUM FIRMS’ EMPLOYMENT EQUITY TARGETS SUPPORTED BY SKILLS DEVELOPMENT. IMPACT ON OVERALL EQUITY PROFILE OF FIRMS AND SECTORS MEASURED Ravin Deonarain

11. 2.2 SKILLS DEVELOPMENT IN AT LEAST 40% OF SMALL LEVY-PAYING FIRMS SUPPORTED AND IMPACT MEASURED Ravin Deonarain

12. 2.5 ANNUALLY INCREASING NUMBER OF SMALL BEE FIRMS AND BEE CO-OPERATIVES SUPPORTED BY SKILLS DEVELOPMENT. SURVEY PROGRESS AND MEASURE IMPACT. Ravin Deonarain

13. 2.7 700 000 workers have achieved ABET Level 4 Ravin Deonarain

14. 2.8. 125 000 WORKERS ASSISTED TO ENTER AND AT LEAST 50% SUCCESSFULLY COMPLETE APPROVED PROGRAMMES Ravin Deonarain

15. 3.2. 2000 non-levy paying enterprises, NGOs, CBOs, and community-based co-operatives supported by skills development. Impact of support on sustainability measured with a targeted 75% success rate. Ravin Deonarain

16. 4.1. 125 000 unemployed people assisted to enter and 50% successfully complete programmes Ravin Deonarain

17. 4.2. 100% of learners in critical skills programmes covered by sector agreements and Nat Priorities from local FET and HET institutions assisted to gain work experience. 70% find placement in employment or self-employment. Ravin Deonarain

18. 4.3. 10,000 young people trained and mentored to form sustainable new ventures and at least 70% of new ventures in operation Ravin Deonarain

19. 5.1. By March 2010 each SETA recognises and supports at least five Institutes of Sectoral or Occupational Excellence (ISOE) within public and private institutions and through Public Private Partnerships (PPPs) Ravin Deonarain

20. 5.2. Each province has at least two provider institutions accredited to manage the delivery of a new venture creation qualification. 70% of new ventures still operating after 12 months Ravin Deonarain

21. 5.3. Measurable improvements in the quality of the services delivered by skills development institutions Ravin Deonarain

22. Customer Satisfaction Ravin Deonarain

23. Customer Satisfaction Ravin Deonarain

24. Major Highlights • Exceeded Targets • Unqualified Audit Report – 10 yrs • Strong Focus • Artisan Development • Processing and Packaging Operations • Leadership and Management Development • World Cup 2010 • Training of food and beverages vendors/suppliers - fanparks Ravin Deonarain

25. Performance ScorecardF 2009/10 Score: 4.80 = Excellent Ravin Deonarain

26. Year-on-Year Performance • NSDS/SLA target performance for sector • Financial Performance Ravin Deonarain

27. Committee’s Specific Emphasis • SWOT’s Analysis • Strategic Plans F2010/11 • Provincial Allocations • Youth Unemployment Ravin Deonarain

28. Potential Internal Strengths Ravin Deonarain

29. Potential Internal Strengths Ravin Deonarain

30. Potential Internal Weaknesses Ravin Deonarain

31. Potential Internal Weaknesses

32. Potential External Opportunities Ravin Deonarain

33. Potential External Threats Ravin Deonarain

34. BUDGET F2010/11 Ravin Deonarain

35. Discretionary Projects Ravin Deonarain

36. Ravin Deonarain

37. Youth Unemployment Ravin Deonarain

38. PROVINCIAL SPREAD (Poverty Alleviation) NVC NGO Ravin Deonarain

39. “……the SETAs do not provide training. They have a legal duty to disburse 80% of the skills development levy funds and are constituted in governance structures to represent a partnership between government, business and labour to direct skills training in various sectors. The SETAs also work at different levels of the training hierarchy and are intermediaries between business and training institutions using organised networks for workplace training.” Min Blade Nzimande Skills Summit 9 Sept 2010 Ravin Deonarain

40. Thank You Ravin Deonarain