DEPARTMENT of AGRICULTURE, FORESTRY and FISHERIES

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DEPARTMENT of AGRICULTURE, FORESTRY and FISHERIES
Njabulo Nduli Director General 09 June 2009
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? Introductions ? Overview ? Mandate ?
Branches                                         
   - Purpose - Background and Highlights
- Priorities i.t.o 2009/2010 Budget ? Budget
VOTE 23                                    
? Summary and conclusions                       
 
PRESENTATION OUTLINE
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INTRODUCTION and OVERVIEW

• The Strategic plan will realise the Medium Term
  Strategic Framework goals of
• the New Administration of -
• Speeding up growth and transforming the economy
  to create decent work and sustainable livelihoods
• Social and economic infrastructure
• Implementation of a Comprehensive Rural
  Development Strategy linked to land and agrarian
  reform and food security
• Strengthen the investment in skills and human
  resource base
• Improving the nations health profile
• Intensifying the fight against crime and
  corruption
• Develop cohesive, caring and sustainable
  communities
• Improve international cooperation - creation of
  a better Africa and better world
• Implement sustainable natural resource management
  and use
• Democratic developmental state Improvement of
  public service and strengthening democratic
  institutions

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INTRODUCTIONS and OVERVIEW

• For the next 5 years, our mandate will seek to
  fulfil the creation of decent work and
  sustainable livelihoods through enhanced food
  security programmes contribution into the
  Comprehensive Rural Development Programme (CRDP).
  
• Our programmes to realise the mandate will be
  outlined by the presentations of the following
  Core Programmes / Branches
• Production and Resource Management
• Agricultural Support Services
• Trade and Economic Development
• Food Safety and Bio-Security
• Chief Financial Officer

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INTRODUCTIONS and OVERVIEW

• The emphasis in the SONA underlines the
  importance of partnerships and DAFF has many
  linkages
• Our collaboration with the Department of Rural
  Development and Land Reform will continue to form
  part of our strategic response especially to high
  food prices as follows
• Concentrate on focus areas (farm dwellers,
  corridors, commodities etc)
• Aligned comprehensive support (including social
  support)
• Cooperative government (joint planning,
  budgeting, approval and implementation)
• Full use of partnerships for delivery
• Subsidiarity approach including decentralised
  decisions and implementation up to lowest
  practical level
• Success and sustainability of individual
  settlement projects will be the measure of
  success of our efforts

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MANDATE

• Performing Animals Protection Act, Act 24 of 1935
• Fertilizers, Farm Feeds, Agricultural Remedies
  and Stock Remedies Act, Act 36 of 1947
• Animal Protection Act, Act 71 of 1962
• Fencing Act, Act 31 of 1963
• Subdivision of Agricultural Land Act, Act 70 of
  1970
• Plant Breeders Rights Act, Act 15 of 1976
• Plant Improvement Act, Act 53 of 1976
• Veterinary and Para-veterinary Professions Act,
  Act 19 of 1982
• Perishable Products Export Control Act, Act 9 of
  1983
• Agricultural Pests Act, Act 36 of 1983
• Conservation of Agricultural Resources Act, Act
  43 of 1983
• Animal Diseases Act, Act 35 of 1984
• Liquor Products Act, Act 60 of 1989
• Agricultural Research Act, Act 86 of 1990
• Agricultural Product Standards Act, Act 119 of
  1990
• Agricultural Produce Agents Act, Act 12 of 1992

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MANDATE cont

• Groot Constantia Trust Act, Act 58 of 1993
• Societies for the Prevention of Cruelty to
  Animals Act, Act 169 of 1993
• Marketing of Agricultural Products Act, Act 47 of
  1996
• Agriculture Laws Extension Act, Act 87 of 1996
• Genetically Modified Organisms Act, Act 15 of
  1997
• Animal Improvement Act, Act 62 of 1998
• Agricultural Laws Rationalisation Act, Act 72 of
  1998
• Onderstepoort Biological Products Incorporation
  Act, Act 19 of 1999
• Meat Safety Act, Act 40 of 2000
• Agricultural Debt Management Act, Act 54 of 2001
• Animal Identification Act, Act 6 of 2002
• Land and Agricultural Development Bank Act, Act
  15 of 2002
• KwaZulu Cane Growers Association Act Repeal Act,
  Act 24 of 2002
• South African Abattoir Corporation Repeal Act,
  Act 17 of 2005

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PRODUCTION AND RESOURCES MANAGEMENT
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PURPOSE

• To promote agricultural productivity and
  profitability through the identification of
  opportunities, sustainable use and protection of
  land, water and genetic resources and
  infrastructure development to ensure household
  food security
• Sustainable use of genetic resources for food
  and agriculture
• On-farm conservation projects
• On-farm multiplication projects
• Community gene banks
• Fruit production and support scheme for black
  farmers
• Plant improvement schemes
• Community-based seed production

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BACKGROUND and HIGHLIGHTS

• The following are highlights of where the
  Department is coming from
• To support the sustainable use and management of
  genetic resources for food and agriculture, the
  following were undertaken and completed
• National Gene Bank Management Strategy,
• Status Report on Livestock Development Centres
  across South Africa,
• Standard Material Transfer Agreement for the
  exchange of genetic, material.
• Training workshop for SADC member countries on
  Plant Variety Protection,
• Development of a community-based seed scheme on
  maize, dry beans and sorghum were piloted in
  Limpopo and Mpumalanga,
• Development of community-based production models
  for fruits, essential oils and agro-processing,
• Policies on animal improvement, wildlife
  ranching, veld and forage and aquaculture.
• Development of the Integrated Food Security and
  Nutrition Programme (IFSNP).

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PRIORITIES i.t.o 2009/10 BUDGET

• Implement food security programmes in support of
  the Social and Community Cluster with emphasis on
  
• Lessening our dependency on imports
• Affordable food
• Improved food distribution logistics
• Expanded access to food production schemes
• Ensuring food relief programme to the poorest
• Roll-out of the livestock massification programme
  in support of black emerging beef, cattle and
  poultry farmers
• Roll-out Household Food Production Programme
  through Ilima/Letsema campaign in support of war
  on poverty
• Implement the integrated Household Food programme
  in response to high food prices
• Collaborate with the Department of Rural
  Development and Land Reform in the implementation
  of the fencing programme

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PRIORITIES i.t.o 2009/10 BUDGET

• Enhance productivity through
• Land use planning and land care programmes
• Comprehensive agricultural support including
  mechanisation, production inputs, extension and
  veterinary service and technology
• Investment in agricultural infrastructure
  including irrigation, access roads, warehousing
  and fencing
• Capacity building, investing in women and youth,
  establishing food gardens
• and Access to land
• Implementation of the 4 Agricultural Commodity
  Strategies
• Grain
• Livestock
• Fruit
• Cotton

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AGRICULTURE SUPPORT SERVICES
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PURPOSE

• The programme develops and facilitate the
  implementation of appropriate policies and
  targeted programmes aimed at promoting access to
  the agricultural sector to promote shared growth
  and commercial viability of emerging farmers. It
  also manages agricultural risk and disaster
  management, agricultural education and training,
  extension and advisory services, scientific
  research and technology development.
• Livelihoods and Development Support aims at
  facilitating the provision of post settlement
  support to emerging farmers, promotes BEE,
  provides for agricultural development finance,
  promotes farmer cooperatives and manages the
  transfer of funds in respect of CASP, MAFISA,
  AgriBEE, Ncera Farms (Pty) Ltd and agricultural
  disasters.
• Sector Services and Research directs and supports
  agricultural educations, training, extension,
  research and advisory services in support of
  targeted groups. It also manages the transfer of
  funds to the Agricultural Research Council.

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BACKGROUND and HIGHLIGHTS

• These are the highlights of where the Department
  is coming from
• Extension Recovery Plan
• The plan is funded to the tune of R500 million
  over the MTEF period 2008-2011
• A total of R100 million was disbursed to
  provinces in 2008/09 financial year. By end March
  2009 R81.6 million was spent by Provinces.
• A target to recruit 334 extension personnel in
  2008/09 was exceeded as 348 were recruited
• A target was set to provide short course/targeted
  training to 1000 extension personnel in the area
  of generic, technical and computer skills however
  a total of 1200 officers were trained
• As a plan to provide support to extension
  personnel about 500 were targeted for ICT Support
  however, 1231 have been provided with ICT
  equipment like access to cellphones, 3G cards and
  computers
• Three out of nine provinces namely Free State,
  KZN and North West have procured the Decision
  Support System commonly known as extension
  online.

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BACKGROUND and HIGHLIGHTS

• Commodity based mentorship
• Service Level Agreement were signed with eleven
  commodity organisation to support the development
  of emerging farmers including youth and women
  projects
• About 527 projects were reached throughout the
  country
• AgriBEE
• AgriBEE council established to perform an
  oversight role
• AgriBEE equity fund in place
• MAFISA
• - 10 institutions appointed to handle
  MAFISA funds
• - R250 million of MAFISA funds redirected
  to kick start Ilima/Letsema Campaign of 2008/
  09.

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BACKGROUND and HIGHLIGHTS

• Research and Development
• Agricultural Research and Development Strategy
  was concluded
• Research Agenda i.e. priority research focus in
  the short, medium and long term was developed and
  is currently under discussion with stakeholders
  within the National Research System.
• Increase access to state land, financial services
  and entrepreneurial support
• R146 million will be channeled via Land Bank to
  the 10 accredited financial intermediaries
• A minimum of 200 projects is targeted this
  financial year R6 million will be allocated for
  young graduates in need of work experience and
  combination of postgraduate studies and
  industrial placement.

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BACKGROUND and HIGHLIGHTS

• Accelerate the implementation of the AgriBEE
  Charter
• - An AgriBEE equity fund to the tune of R48.6
  million will be made available.
• Increased targeted training, research and
  extension support programmes through distribution
  of R 170.7 million to the provinces to
• Supply farmers with green books
• Recruit 272 personnel to support land reform and
  rural development
• Register 800 officers for qualifications
  upgrading on a part time basis
• Enroll 1000 officials in short courses
• Provide ICT equipment to 327 officials
• 6 provinces to acquire the extension online
  suite-Decision Support System.
• Implement the comprehensive disaster risk
  management system by rolling-out the Flood
  Disaster Management Plan

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PRIORITIES i.t.o 2009/10 BUDGET

• Develop a One Stop Shop to consolidate the
  funding structure and provide financial services
  and entrepreneurial support
• Implement the National Funding Facility which
  will address all funding related needs of
  emerging farmers
• Increase access and support to capacity building
  initiative
• Accelerate the implementation of the AgriBEE
  Charter
• Increase new commercialised farming enterprises
  and agribusinesses
• Increase targeted training, research and
  extension and support programmes
• Implement comprehensive disaster risk management
  system

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TRADE and ECONOMIC DEVELOPMENT
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PURPOSE

• To facilitate market access for South African
  Agricultural products nationally and
  internationally. The program provides
  agricultural economic and statistical information
  to support economic growth and development and
  also monitors the economic performance of the
  sector.
• The program is comprised of the following
  portfolios
• CHIEF DIRECTORATE ECONOMIC AND STATISTICAL
  SERVICES
• Directorate Agricultural Statistics
• Directorate Economic services
• CHIEF DIRECTORATE TRADE AND MARKETING
  DEVELOPMENT
• Directorate Marketing,
• Directorate International Trade

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BACKGROUND and HIGHLIGHTS

• Developed an agricultural tariff policy framework
• Trained more than three hundred farmers on
  commodity based agricultural marketing,
• Concluded the review of the agricultural
  marketing environment as a precursor to the
  review of the marketing of Agricultural Products
  Act No 47 of 1996
• Published agricultural commodity marketing
  profiles for grains and horticulture,
• Published agricultural marketing outlook reports,
• Disseminated agricultural marketing information
  using web-based technology,
• Participated in various trade negotiations
  representing South Africa's agricultural trade
  interests,
• Oversee the effective implementation and
  monitoring of the SACU-EFTA FTA,
• Participated and are monitoring the SACU-MERCOSUR
  preferential trade agreement,
• Participated in the SACU-EPA negotiations
• Issued bulletins, advisories and trade information

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PRIORITIES i.t.o 2009/10 BUDGET

• Finalize the amended of the Marketing of
  Agricultural Products A
• Finalize the Agricultural Marketing Policy and
  Strategy
• Finalize the Model for the restructuring of fresh
  produce markets in South Africa
• Finalize the business plans for the establishment
  of fresh produce collation infrastructure in the
  provinces,
• Continue to participate in the WTO Doha Round of
  multi-lateral negotiations SADC-EC EPA
  negotiations
• Implement SACU Agreement and SADC Trade Protocol
  and SACU-MERCOSUR PTA,
• Continue with SACU-India trade negotiations
• Continue with new strategic interventions planned
  for the year.

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FOOD SAFETY and BIOSECURITY
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PURPOSE
The purpose of the programme is to manage the
risk associated with animal diseases, plant
pests, genetically modified organisms (GMOs),
registration of products used in the agricultural
field and provision of food safety to safeguard
human life. The programme comprises two
subprogrammes Plant Health and Inspection
Services focuses on sound plant health risk
management frameworks, contributes to a
compliance system for assessing potential risks
associated with GMOs and regulates border and
national inspection services on regulated
agricultural products intended for import, export
and local trade. Food and Veterinary Services
manages animal diseases and assists with
negotiating protocols for importing and exporting
animals and animal products, ensures that animal
products are of good quality and safe for
human consumption.
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BACKGROUND and HIGHLIGHTS

• The highlights of the branch has been
• Managed to control classical Swine fever
  successfully
• Managed to maintain exports especially for
  ostrich meat and game
• Successfully concluded a protocol of co-operation
  with the provinces on the delivery of veterinary
  services
• Managed to main exports for fruit and vegetables
  of which citrus and deciduous fruit amounts to
  R20 billion
• Managed to get funding from treasury to
  strengthen our border control.
• - Employed 160 inspector at borders
• Expanded on the Sedupe K5 project
• The programme has also experienced the following
• - The surge in trade and increased movement of
  people have resulted in an increase in
  bio-security risks.
• - Recently we have seen outbreaks of both plant
  and animal disease in areas which they have
  never occurred.
• - Climate change also has impact on outbreak of
  diseases.

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PRIORITIES i.t.o 2009/10 BUDGET

• Eliminate skewed participation in the sector
• - Primary animal health Programme
• - Plant health programme
• - Pilot for access to laboratory services
• - Rabies Campaign in September
• - Promotional material
• - Awareness workshop on GMOs
• - Schemes TB, Brucellosis, Rabies cost R3 000
  000
• Ensure national bio security and effective risk
  management
• - Food safety strategy
• - Expansion of the Sedupe K5 project
• - Conducting surveys
• - National exotic fruit fly survey R3 000000
• - SIT (Sterile insect Technique) - R5 000000
• - Surveys for animal diseases (Classical swine
  fever ,Avian Influenza, FMD control, PRRS,
  Swine flu)

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PRIORITIES i.t.o 2009/10 BUDGET

• Ensure national bio security and effective
  risk management
• Conducting research
• Research conducted by the ARC for animal diseases
  R8 000 000
• Residue monitoring programme for Ostrich and
  game farming R9 000 0000
• Food Safety strategy
• Review of Agricultural pest Act
• Review of the PPECB Act
• Animal Feed Bill
• Policy on liquor products
• Participation at standard setting bodies (IPPC,
  OIE and Codex Alimentarius)

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• CASP PROJECTS
• And
• BENEFICIARIES

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COMPREHENSIVE AGRICULTURAL SUPPORT PROGRAMME

• CASP is funded to the tune of R2.5 billion over
  the MTEF period 2008-2011
• Last financial year a total of R534 million
  including ERP was disbursed to provinces. By the
  end of the financial year R472 million was spent
  by Provinces
• Out of 1016 projects targeted for support in
  2008/09, 703 projects were completed at end of
  the year of which 458 (65) were land reform
  projects
• A total of R76 million for food security was also
  disbursed to provinces during 2008 mid term
  budget review, of which R64 million has been
  spent
• CASP Expenditure performance this financial year
  is fairly better at 91 compared to previous
  years. The under spending is mainly due late
  implementation and changes in management
• About three provinces (KZN, EC NW) could not
  do well, particularly KZN
• In our view procurement plans are not finalized
  in time thus resulting in late implementation

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OVERALL CASP EXPENDITURE
Province Allocation Total expenditure Not Spent Spent
EC 90 018 82 001 8 007 91
FS 49 089 41 726 7 363 85
GP 25 329 23 394 1 935 95
KZN 88 037 63 900 24 137 73
LP 81 103 79 343 0 98
MP 53 019 53 019 0 100
NC 36 807 30 502 5 409 83
NW 68 432 54 993 13 439 91
WC 43 084 43 840 0 100
TOTAL 534 918 472 718 60 290 91
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EXPENDITURE TRENDS
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CASP CHALLENGES

• CASP Funding (DORA) mechanism too rigid, once a
  year, based on preapproved business plans
• Business planning not focusing on long term
  sustainability
• Whenever management changes tendency is that CASP
  freezes
• Procurement planning is inadequate and often
  late, thus peaks in last quarter
• Expenditure not comprehensive (doesnt cover all
  CASP pillars)
• Quality of spending inadequate and often focuses
  on infrastructure and easily purchased items
  (tractors, fencing, computers)

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CASP RECOMMENDATION

• Coordinate all DORA funding for agricultural
  support by creating one funding facility
• This facility will also coordinate funding with
  other government departments like
• DRD and LR
• thedti
• DEAT
• Consider changing DORA funds from schedule 4
  grant to schedule 5 grant
• Establish a system within DAFF to coordinate
• Project recording
• Project approval
• Monitoring and evaluation of projects
• Some projects such as the food for All are
  cluster projects but implementation is with DAFF

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• ESTIMATES OF NATIONAL
• EXPENDITURE
• 2009/10
• VOTE 23 AGRICULTURE

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ENE ALLOCATION 2009/10
R000 R000 MTEF allocation
1 947 931 Plus LandCare
51 417 CASP
628 410 2 627
758 Plus NAMC 3 000
Inflation related adjustment
Compensation of employees 20
970 Inflation related adjustment
Payments for capital assets 1 508
Inflation related adjustment
Capital transfers 2 688
Ilima/Letsema Projects Grant 50
000 Inflation related adjustment CASP
86 984 Agricultural Disaster
Management Grant 60 000
225 150 Less Adjustments to baseline
60 149 TOTAL APPROPRIATION
2 792 759
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SUMMARY PER PROGRAMME

• 2008/09 2009/10
  
• R000 R000
• Administration 356 094
  388 582 9,1
• Production and Resources Management
  259 235 300 175 15,8
• Agriculture Support Services 1 546 466 1 696
  136 9,7
• Trade and Agricultural Development
  68 737 77 107 12,2
• Food Safety and Bio-security 304 139
  330 759 8,8
• 2 534 671 2 792 759
  10,2

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SUMMARY PER ECONOMIC CLASSIFICATION
2008/09 2009/10
R000
R000 Compensation of employees 585 811
649 601 10,9 Goods and services
435 974 424 843
(2,6) Transfers and subsidies 1 473 338
1 684 953 14,4 Payments for capital assets
39 548 33 362 (15,6)
2 534 671 2 792 759 10,2
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(No Transcript)
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VOTE 23 AGRICULTURE 2009/10
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VOTE 23 AGRICULTURE 2009/10
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WAY FORWARD

• In this new administration, service delivery will
  be enhanced by the newly configured department
  with its expanded mandate which includes forestry
  and fisheries
• One of the key areas is remodelling financing and
  funding to create a facility, the National
  Funding Facility, to stimulate the sector
• This facility will further restructure the debt
  of emerging farmers
• It will also enhance shareholding of commercial
  farmers in enterprises of emerging farmers to
  ensure market access
• The facility will support the Integrated
  Agricultural, Forestry and Fisheries Development
  Programme which will drive
• Global competitiveness and profitability
• Equity and participation, and
• Sustainable resource management

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REALIGNMENT of FORESTRY and FISHERIES FUNCTIONS

• Whole of Forestry Branch -gt DAFF
• Staff complement 3 565
• Fisheries Marine aquaculture
• Staff complement 19
• DoA Freshwater aquaculture
• Staff complement 14

-gt DAFF (merge)
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ALIGNMENT BETWEEN DAFF AND DRDLR (CRDP)

• Increased production sustainable use of natural
  resources
• Livestock farming related value chain
  development (exploring all possible species for
  food economic activity)
• Cropping related value chain development
  (exploring all possible species, especially
  indigenous plants, for food economic activity)
• Promote sustainable natural resource management
  to sustain rural livelihoods (including forestry
  and marine aquaculture)
• Strengthening rural livelihoods for vibrant local
  economic development (production, market access,
  entrepreneurship, support services and trade)

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ALIGNMENT BETWEEN DAFF and DRDLR (CRDP)

• Use of appropriate technologies, modern
  approaches indigenous knowledge systems (RD)
• Ensure food security (household or subsistence,
  smallholder, large scale)
• Fibre and renewable energy supply
• Contributions from Strategy for the Agricultural
  Sector (competitiveness and profitability,
  equitable access and sustainable resource
  management)

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PUBLIC ENTITIES and STAKEHOLDERS

• The new mandate / agenda will be conveyed to the
  following stakeholders as follows
• Industry and stakeholders
• Ministers Advisory Council
• CEO Forum
• Sector Plan Steering Committee
• National Forestry Advisory Council
• AgriBEE Forestry Charter Councils
• SOEs through ITCAL and MINMEC
• Perishable Products Export Control Board,
• Agricultural Research Council
• National Agricultural Marketing Council
• Onderstepoort Biological Products (Pty) Ltd
• SAFCOL

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THANK YOU