Annual Report of the Department of Agriculture Portfolio Committee : Agriculture and Land Affairs

1. Annual Report of the Department of AgriculturePortfolio Committee : Agriculture and Land Affairs Presented by Director General Njabulo Nduli 18 November 2008

2. TABLE OF CONTENTS • Introduction of team • Overview by Director General • Livelihoods, Economics and Business Development • Bio-Security and Disaster Management • Production and Resource Management • Sector Services and Partnerships • Financial Performance • Summary and conclusion

3. Overview by Director General • 2007/8, reviewed post settlement support, commenced with the fast-tracking of land delivery to attain the Presidential Priority 7 • Challenge of accelerating and aligning land and agrarian reform • DoA, DLA and PDAs developed the Land and Agrarian Reform Project (LARP) – accepted as Apex priority 7 • Aligns functions for improved service delivery and restructured consultative structures to include all relevant stakeholders. • “One-stop shop” delivery paradigm for comprehensive support services • Objectives of the LARP: • Increasing black agribusiness entrepreneurs by 10 - 15%; • Providing universal access to agricultural support services to the emerging black farmers; • Increasing agricultural production by 10 - 15% • Increasing agricultural trade by 10 - 15 % • The DoA initiated the development of a Project Management Support Office to facilitate the translation of policy into implementation.

4. Livelihoods, Economics and Business Development • The Livelihoods, Economics and Business Development promotes equitable access to the agricultural sector, growth and commercial viability of emerging farmers, and work towards achieving food security and rural development. The programme facilitates market access for South African agricultural products nationally and internationally by developing and implementing appropriate policies and targeted programmes. It promotes Broad-Based Black Economic Empowerment (BBBEE) in the sector. • Sub-programmes: • Livelihoods Development Support provides post-settlement support to emerging farmers, promotes farmer co-operatives and villages and is responsible for food security policy and legislation, programmes and information.

5. Livelihoods, Economics and Business Development • Sub-programmes (continued): • Trade and Business Development facilitates international and domestic marketing access for South African agricultural products and promotes BEE in the sector. It also interacts with the National Agricultural Marketing Council. • Economic and Statistical Services provides for the collection and analysis of agricultural statistics, monitors and evaluates the economic performance of the sector and produces quarterly reports on sector trends. It also interacts with Statistics South Africa.

6. Livelihoods, Economics and Business Development

7. Livelihoods, Economics and Business Development

8. Livelihoods, Economics and Business Development

9. Livelihoods, Economics and Business Development

10. MAFISA • Mafisa-funded projects during the first quarter included ostrich projects, broiler production, cash crops projects, and piggery projects. • 13 clients to the value of R1 175 000, for 26 clients to the value of R100 000, for 4 clients to the value of R107 000, implements for one client to the value of R10 000 and a for one client to the value of R10 400. loans to the value of R15 million were disbursed to 45 emerging-farmer clients in the Eastern Cape Province • A total of 27 poultry enterprises valued at R81 369 and cash-crop projects valued at R24 650 were funded from Mafisa during this quarter. This amounts to a total of R106 019 to 36 clients in the Eastern Cape Province for the quarter.

11. LARP and Farmer Support • 7 Land Reform Revitalisation Projects (LRRPs) were assisted in the Gauteng Province. • The Farmer-to-farmer Mentorship Programme was implemented in 23 projects. A total of 16 land-reform projects from Gauteng and Mpumalanga have benefited from the LRRP and 14 Settlement Land Acquisition Grant (SLAG) projects benefited from CASP during the 2007/08 financial year. • the LRRP five projects were completed in Gauteng Province and the total number submitted was eight. In Mpumalanga, 30 projects were submitted and two completed, at a cost of R679 270. • Farmer-to-farmer Mentorship Policy began in the Northern Cape, Western Cape and Eastern Cape. Tenders for North West and Free State were resubmitted. The total number of projects was 667, and the number of beneficiaries 37 230.

12. Self Help Groups • A total of 304 agricultural co-operatives and SHGs were profiled, including 8 SHGs in Gauteng, 4 co-operatives (poultry) Eastern Cape, 152 co-operatives and SHGs in Free State, 7 SHGs in KwaZuluNatal, 30 SHGs in Mpumalanga, 91 co-operatives/SHGs in the Northern Cape and 5 co-operatives and 7 SHGs in Limpopo. • A total of 89 SHGs were established in all provinces through the Jobs for Growth Community Based Organisation (CBO) Programme. • A total of 178 bank accounts for SHGs were recorded . These includes accounts opened by Corn Masoyi (Mpumalanga)co-operative members, Udengezi project ( KwaZulu-Nata ,SHGs in Mangaung (Free State),Msinga Peace and Development Co-operative (KwaZulu-Natal), Udengezi project (KwaZulu-Natal), Vosloorus Farmers’ Co-operative (Gauteng), De Deur Farmers’ Co-operative (Gauteng) and Umzimbuvu Goat Co-operative (Eastern Cape).

13. Cooperatives • A training program on co-operative governance and management was rolled out, with members of the co-operative, local economic development officers and extension offices participating, mainly in the Free State province. • Total of 105 agricultural co-operatives were established in all the provinces. Two secondary co-operatives (the Bakenberg poultry secondary co-operative and Vhembe fresh produce marketing co-operative) were established, and • a total of 189 agricultural co-operatives and SHGs were profiled to identify associated challenges. • Three Agricultural Co-operative Chambers of Commodities were established in the Eastern Cape (at Tsolwana Municipality), in North West (the Bojanala Chamber) as well as a sisal production and agro-processing chamber.

14. Permits and Economic Information Support • A total of 287 market-access permits were issued on time, and R37 500 was raised in respect of issuing permits. • The Agricultural market outlook report , Economic review of the South African agriculture 2006 , The Crops and markets report , and the Fruit and Vegetable sales on the major South African fresh produce markets.

15. AGRI Bee & Marketing • The draft Marketing of Agricultural Products Amendment Bill was completed and discussed with all provinces for inputs and comments • A draft proposal to link the permit allocation policy with the AgriBEE Policy has been completed. The proposal could only be concluded after the AgriBEE Charter was approved. This project will now be concluded in quarter 1 of 2008/09. • Funds were disbursed to two Centres of Excellence. The MoU was signed with Tompi Seleka College of Agricultural on the establishment of a Centre of Excellence within Limpopo Province

16. BIO-SECURITY AND DISASTER MANAGEMENT - PURPOSE This programme seeks to develop and implement policies for food safety, agricultural risk and disaster management strategies in order as to control animal and plant diseases and ensure food safety. The programme as two sub-programme - Plant health and inspection services (PHIS) and Food Animal health and disaster management –(FAHDM). During the year under review, the programme looked into reduction of incidence of animal and plant disease and pests, and also to ensure compliance with international and national agricultural risk

17. BIO-SECURITY AND DISASTER MANAGEMENT

18. BIO-SECURITY AND DISASTER MANAGEMENT

19. BIO-SECURITY AND DISASTER MANAGEMENT - PURPOSE

20. BIO-SECURITY AND DISASTER MANAGEMENT - Agric Disaster Relief

21. BIO-SECURITY AND DISASTER MANAGEMENT - Agric Disaster Relief

22. Draught Coping Strategies • Coping strategies for drought were completed and translated into 10 official languages. A total of 1 500 fruitfly bookmarks were distributed and 3 900 pamphlets on activities of the Directorate Plant Health and plant health matters were distributed. A draft pamphlet on South African quarantine matters was finalised. .

23. Inspections/Surveys/Assessments/Analyses • An audit inspection of wood was done simultaneously with import and export inspections. Inspections conducted, amounted to 10 852 and included physical inspections, nursery, field, bulk and liquor inspections. A system has been put in place to detect importers who do not comply with the extended detections. The golden cyst nematode survey protocol is being revised and updated, and the survey is ongoing • Two interceptions were assessed; 26 import requirements were finalised; two import protocols; and seven interceptions were assessed. Assessments made on the export of regulated articles included eight phytosanitary certification requests and finalising 12 noncompliance assessments. • A total of 15 287 diagnostic assessments were made; 9 779 detections and identifications; and 11 quarantine interceptions. ,

24. Production and Resource Management This programme manages productivity and sustainability in agriculture, it also monitors and controls genetically modified organisms, develop and implement policies and legislation on the sustainable use of agricultural land and water resources. The programme’s two sub-programmes are Agricultural Production and Engineering, Energy, Resource Use and Management. Through Agriculture Production facilitates improvement in agricultural productivity with emphasis on sustainable animal, aquaculture and plant production systems and administers the Plant Improvement Act of 1976, Plant Breeders Rights Act of 1976 and the Animal Improvement Act of 1998.

25. Production and Resource Management Engineering, Energy, Resources Use and Management facilitates the development of agriculture infrastructure and use of agricultural resources. Other activities include auditing of natural resources, controlling migratory pests, rehabilitating and protecting agricultural land and running the community-based LandCare Programme. During the year under review, the programme sought to improve productivity and profitability in the agriculture sector, and sustainable use and protection of land and waster resources.

26. Production and Resource Management

27. Production and Resource Management

28. Production and Resource Management A total of 375 inspections were conducted on 33 887 hectares for CASP, LRAD and related projects A further 111 inspections were conducted on 8 246 hectares of land to resolve malpractice relating to CARA regulations and 56 inspections were conducted on 32 380 hectares of land to monitor CARA compliance on LandCare projects

29. Production and Resource Management

30. Infrastructure At Kosi Bay, a 45-km fence was completed and 21 culverts constructed. At Punda Maria, a 28-km elephant fence was erected and one structure across dongas was completed. At Letaba River, a 12-km elephant fence was completed and a large river crossing is in the process of being constructed. At Altien, a 12-km elephant fence and at Kruidfontein, a 9-km fence were completed. At Malala Drift, 15 km of fence was cleared and at Bray, a 6-km fence was completed.

31. Sector Services and Partnerships Programme Overview The programme manages and coordinates stakeholder and international relations, agricultural education and training, extension and advisory services as well as scientific research and development. The programme has two sub-programmes, namely, Sector Services and Intergovernmental, International and Stakeholder Relations.

32. Sector Services and Partnerships

33. Sector Services and Partnerships

34. Sector Services and Partnerships

35. Sector Services and Partnerships

36. Capacity Building • Eight agricultural commodity organisations that entered into a service level agreement with the DoA during the 2006/07 submitted their Year 2 workplans for the 2007/08 financial year. In total, for all eight commodity organisations, there are 397 mentorship programmes in place. • All nine provinces are covered by one or the other of these projects. The projects involve 29 qualified Master Mentors. The total number of mentors developed is 49 and the total number of mentees developed is 6 999. Altogether 4 188 mentees are women, 2148 males and 722 youth. • A total of 9 000 beneficiaries associated with commodity organisations benefited from the mentorship programme. Based on the reports presented, improvements and achievements have been recorded. • The GADI research report was finalised and submitted to the ASRDC for notification. The training of 100 extension staff recruited from all nine provinces in accredited Project Management training commenced during September 2007

37. Capacity Building continues……… • Pretoria University, Fort Hare, Free State, Free State Technikon, Stellenbosch and KwaZulu-Natawere identified to provide short, accredited generic training programmes to 100 government-employed extension officers and a service level. Level agreement was reached with these institutions to provide accredited Project Management training to 100 extension officers. • An agreement between the DoA and the FAO was signed on 30 April 2007. A list of 50 names of extension officers linked to CASP projects together with their respective profiles was finalised in consultation with the PDAs to undertake an exchange programme with Kenya. • An orientation workshop with these 50 officers was conducted in Pretoria on 26 June 2007, in preparation for the visit. And a group of 25 extension officers from all nine provinces successfully visited Kenya on a Technical Exchange Programme. The visit took place from 14 to 22 October 2007

38. Trade Agreements /Relations • European Community (EC) agreed to address South African concerns on GIs, taxation, use of certain vine varieties, labelling of certain wines and other oenological practices., South Africa and the EC also agreed on the conditions and principles of normalising the Trade, Development and Co-oeration Agreement (TDCA) text • The Africa Strategy was reviewed and the Stakeholder Engagement Strategy developed. The review undertaken identified a need for financial and human resources to allow the DoA to engage effectively and to make an impact on the continent. The review also proposed specific interventions to guide future engagements in Africa, as well as on international emerging issues of interest to South Africa. • The DoA was engaged in the implementation of signed agreements and bilateral engagements with China, the USA and the EU. South African exports to China were promoted through the participation of the agricultural sector in the first phase of the 10th Anniversary celebrations of diplomatic relations between the People’s Republic of China and the Republic of South Africa

39. FINANCIAL STATEMENTS: 2007/08

40. FINANCIAL STATEMENTS Financial Statements • Vote 24 - Unqualified - No emphasis of matter - other matters performance information • Reporting at QRMs • Financial and non-financial • Compilation of quarterly reports and signing off • Agricultural Debt Account - Clean report

41. ACTUAL SPENDING R’000 Main estimate 2 281 166 Plus: Special adjustments 700 000 Adjustments estimate 488 437 Total amount appropriated 3 469 603 Less: Actual expenditure 3 328 417 Surplus 141 186

42. ACTUAL SPENDING R’000 Surplus 141 186 Less: CSF claims awaited 96 311 Capital projects (PWD) 19 766 Drilling rig not delivered 3 970 Not spend by the Department 21 139 % of total appropriation 0,6

43. PROCUREMENT:2007/08 - In terms of monthly reporting to the National Treasury R’000 % Contracts allocated as follows: Black enterprises 69 423 67,9 White woman-owned enterprises 2 287 2,2 Non-HDI enterprises 30 552 29,9 Total value of contracts 102 262

44. HR ISSUES: 2007/08 POST ESTABLISHMENT Total post establishment 3 056 Posts filled 2 638 Vacancies (numbers) 418 Vacancies (percentage) 13,6% Turnover rate 10,7% VETTING/VERIFICATION With effect from I January 2008 Criminal record check Citizenship verification Financial/asset record check - Qualification verification Previous employment verification

45. Summary of Challenges (Livelihoods, Economics and Business Development) • Uncoordinated government support programme. Lack of ccoordination of social sector department’s activities in all the three government spheres is still a challenge to be tackled for CASP • Lack of funds and delegations for disposal of state land caused delays in the disposal of farms for land settlement • The only institution involved in disbursement is Uvimba in the Eastern Cape province. Other institutions are to be brought on board after an accreditation process in the next financial year for Livelihood Development Support • Time delays to endorse meaningfully any BEE initiatives in the sector for AgriBEE implementation. The complete staffing complement is critical for implementing AgriBEE. • AgriBEE also faces the issue of collaboration with sector stakeholder which takes time, is complex and has direct bearing on rate of progress.

46. Summary of Challenges (Bio-Security and Disaster Management) • The Sniffer Dog programme faces insufficient supply of local dogs as well as • delays in the appointment of personnel • Delay in completion of plant health policy and use of unregistered products as • well as the interpretations of phytosanitary requirements are some concerns • facing Plant Health and Inspection Services • Food, Animal Health and Disaster Management faces the following challenges: • 0 Poor implementation of policy on animal health, • 0 Line of command for provision of Veterinary services not harmonised • 0 Meat imported –manufacturing • 0 Loss of market of export of animal products to the EU • 0 No record keeping in subsistence farming systems • 0 Delay in completing country profile • 0 Improper use of pesticides • 0 Microbiological contamination of products • 0 Poor record keeping

47. Summary of Challenges (Production and Resource Management) • Agricultural Production - Withdrawal of drilling Machinery / Equipment Monitoring the genetic integrity of accessions in the Gene Bank • Discontinuation of projects • Engineering, Energy, Resource Use and Management - Lack of Cooperation and commitment from beneficiaries and officials, budget constraint, limited skilled, personnel among PDA on irrigation, engineering and natural resource management and also non-availability of ASGI-SA funds to plan implementation

48. Summary of Challenges (Sector Services and Partnerships) • Human resource capacity and budget to meet international commitments • Due to the extension recovery funds being DORA framework the DoA could not establish a unit responsible for coordination and therefore lacked that capacity • Although the mentorship programme has proven useful and popular the budget allocated has proved insufficient as result targets were revised. • The annual budget for the external bursary scheme is acutely insufficient. Although the number of application have increased over the years, the budget remained the same

49. Thank You