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PRESENTATION OF THE ANNUAL REPORT OF THE 

NATIONAL AGRICULTURAL MARKETING COUNCILTO

 THE PORTFOLIO COMMITTEE25 OCTOBER 2005

BY 

Ms D Ndaba – Vice-Chairperson Mr P Dall – Council memberMr NP Siala – Chief Financial Officer

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LEGISLATIVE MANDATE The NAMC was established in terms of sections 3 and 4 of the Marketing of Agricultural Products Act, No. 47 of 1996 (hereinafter referred to as the Act) as amended by Act No. 59 of 1997 and Act No. 52 of 2001.  The mandate of the NAMC is spelled out in section 9(1)(a) of the Act, which reads as follows: 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, if necessary, proposing alternatives to the establishment, continuation, amendment or repeal of a statutory measure or other regulatory measure and report to and advise the Minister accordingly.

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Furthermore, section 9(1)(e) of the Act stipulates that the NAMC may undertake investigations and advise the Minister regarding: •agricultural marketing policy and its application;•the coordination of agricultural marketing policy in relation to national economic, social and development policies and international trends and developments; •the possibilities for promoting the objectives of the Act, mentioned in section 2(2) of the Act; and•the effect that marketing of products has on the objectives mentioned in section 2(2) of the Act.

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In addition, in terms of section 9(1)(f) of the Act, the NAMC shall monitor the application of statutory measures and report thereon to the Minister and shall review such measures at least every two years.

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   RELEVANCE OF THE NAMC IN THE DEREGULATED MARKETING ENVIRONMENT:

 1. Globalization is taking place at a faster pace and this demands

provision of timeous, accurate and relevant information to participants.

2.  The second economy needs more support, more especially in marketing information, which is the key to business operations.

 3.   Demand for government intervention in terms of statutory levies is increasing. This needs a dedicated institution to investigate application and monitor implementation.

 4.   In a sector such as agriculture you need an institution, which has the necessary capacity and experience to advise government on various policies and strategies. This is provided for in the Act in terms of categories in which members of the Council are appointed.

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NAMC ACTIVITIES FOR 2005/06 IN SUPPORT OF THE OBJECTIVES OF THE DEPARTMENT OF AGRICULTURE

Encouraging the growth and development of the first economy and increasing its possibility to create jobs  The NAMC investigates, advises and monitors the implementation of statutory measures in the agricultural sector. These measures relate to the registration of role-players, rendering of records and returns and collection of levies.  These actions support gathering and distribution of information, and provide resources for agricultural research and development. These are fundamental to agricultural sustainability for both commercial and emerging sectors of the two economies. In addition, the NAMC ensures that over and above research and information, 10% of the funds collected from role-players is used for specific emerging sector development projects.

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Increase support to agricultural activities 

The NAMC conducts investigations together with role-players in order to address problems in agricultural marketing and also to identify opportunities. The information coming out of these investigations is useful for both commercial and emerging sectors for devising strategies to take advantage of opportunities and sort out bottlenecks. 

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 Increase support to agricultural activities in emerging sector  NAMC will provide marketing information to emerging

farmers by holding 36 workshops nationally. The target is to reach 3600 farmers and distribute information booklets. In this way emerging farmers will be:

 -       more market oriented in their farming activities;-  connected with organized agriculture and will thus be more

informed about agricultural marketing issues;-    assisted to identify potential markets and how to access

them.

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MISSION STATEMENT

To provide strategic advice to the Minister of Agriculture and directly affected groups (DAGs) on all agricultural marketing issues in the agriculture and food industries, taking into account the needs of stakeholders.

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To be the most efficient and effective marketing advisor in the marketing of agricultural products in South Africa.

VISION

CORE BUSINESS

CORE VALUES

Provide accurate, relevant, independent and timely information.

To be accountable, to act with integrity, to value individual performance, to value personal respect and equal treatment, to act in partnership with directly affected groups.

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Organisational structure of the NAMC

Economists (2)

Communication Officer

Audit Committee

Finance Clerk

Chairperson

Chief Financial Officer

Section HeadField Crops

Economists (3)

Cleaner

PA

Registry Clerk

Personnel Officer(Vacant)Finance Officer

Economists (2)

Section HeadLivestock

Section HeadHorticulture

Bookkeeper (Vacant)

Section Head Administration

Messenger/Driver

Secretary

Council

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The activities of the NAMC were drawn from:

- The Marketing of Agricultural Products Act, No 47 of 1996.- The Agricultural Sector Strategic Plan. - State of the Nation Address- Minister’s Budget Speech

2004/05 BUDGET UTILIZATION

Council Meetings (including Executive Committee meetings)

Committee Meetings of Council

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UTILISATION OF 2004/05 NAMC BUDGET

  INCOME R11 162 000 Made up of:      Transfer from DoA R 10 601 000     Interest and other R 561 000

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ACTUAL EXPENDITURE R11 162 071

Made up of:      Personnel expenditure R 5 585 746     Administration R 2 547 825     Professional services R 1 135 884     Provision for audit fees R (130 461)     Surplus R 1 762 155 

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OUTPUTS AND SERVICE DELIVERY TRENDS – COUNCIL Sub-programmes

Outputs Indicator Performance

Council

Agenda items Expected number

Actual number

Council sittings 11 11Presentations by delegates 13 13

Submissions to the Minister 26 26Ministerial enquiries 31 31Executive Committee meetings

3 3

Management Committee meetings

49 49

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WORKSHOPS HELD WITH BLACK FARMERS

PROVINCE NUMBER OF WORKSHOPS

FARMER ATTENDANCE

AVERAGE ATTENDANCE

Eastern CapeFree StateGautengKwazulu-NatalLimpopoMpumalangaNorthern CapeNorth WestWestern Cape

440043342

378328

--

314272283333

38

9582

--

7991948319

TOTAL 24 1 946 81

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FORMER CONTROL BOARDS AND DATES OF DISBANDMENT

NAME OF CONTROL BOARD DATE SCHEME REPEALED

1.2.3.4.5.6.7.8.9.10.11.12.13.

Canning Fruit BoardCotton BoardDried Fruit BoardLucerne Seed BoardMilk BoardMohair BoardOilseeds BoardSorghum BoardCirtus BoardDeciduous Fruit BoardWheat BoardMeat BoardWool Board

30 September 19975 January 199831 December 199830 August 19975 January 199831 December 199731 March 199830 September 199731 October 200331 October 200331 July 2003

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CONTROL BOARDS STILL IN EXISTENCE AS AT 31 MARCH 2004

Name of entity Number of extensions

granted

Reasons for continued existence

Maize Board 6 months to Jun 98

6 months to Dec 98

7 months to Jul 99

12 months to Jul 00

12 months to Jul 01

12 months to Jul 02

12 months to Jul 03

12 months to Jul 04

Outstanding issues include the transfer of trademarks to the Maize Trust and court cases relating to the collection of outstanding levies.

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OUTPUTS AND SERVICE DELIVERY TRENDS - ADMINISTRATION Sub-programmes Outputs

Service delivery indicatorsActual performance

PFMA

requirements 

Internal auditingThe PFMA requires for internal

auditing to be done.

Internal auditing was done during

the 2004/05 financial year.

Audit Committee Committee has to convene twice

in a financial year.

The Committee met four times

during the year under review.

Obtaining 2004/05

budget approval

The NAMC’s business plan and

budget had to be submitted for

approval by February 2005.

Business plan and budget were

submitted as required by the

PFMA.

Human

resources

Review of service

conditions

The NAMC set itself the target of

finalising and adopting the reviewed

service conditions.

Final draft of the reviewed service

conditions was available but not

adopted at year end

Staff evaluations

The target was to evaluate staff

three times during the financial

year.

Staff were evaluated once

in the year under review.

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OUTPUTS AND SERVICE DELIVERY TRENDS - HORTICULTURE

Sub-programmes Outputs Service delivery indicators

Actual performance

Application for the implementation of new four-year period of statutory measures in the Citrus Industry.

Investigation regarding the application for implementation of new four-year period of statutory measures in the Citrus Industry was completed and report compiled.

Delivery of report to the Minister.

Submission sent to the Minister.

Application for the implementation of new four-year period of statutory measures for the Deciduous Fruit (table grapes).

Investigation regarding the application for implementation of new four-year period of statutory measures for Deciduous Fruit (table grapes) was completed and report compiled.

Delivery of report to the Minister.

Submission sent to the Minister.

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Application for the implementation of new four-year period of statutory measures for Dried Fruit.

Investigation regarding the application for implementation of new four-year period of statutory measures for Dried Fruit was completed and report compiled.

Delivery of report to the Minister.

Submission sent to the Minister.

Deciduous Fruit Industry Trust (DFIT)

A submission on the proposed amendment of the DFIT deed and the appointment of Ministerial Trustees to the proposed newly constituted Trust was compiled. It was proposed amongst other things that the trust be given a more developmental focus and the name be changed to the Deciduous Fruit Industry Development Trust (DFIDT).

Reports (submissions) on the appointment of Ministerial Trustees were delivered to the Minister.

Submission on appointment of trustees forwarded to the Minister.

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OUTPUTS AND SERVICE DELIVERY TRENDS - FIELD CROPS

SAGIS Inspectors A submission on the appointment of inspectors was compiled.

Delivery of submission to the Minister.

The Minister approved submission on 15 July 2004.

National Lucerne Organisation Inspectors

A submission on the appointment of inspectors was compiled.

Delivery of submission to the Minister.

The Minister approved submission on 23 February 2005.

Deregulation:

Extension of theMaize MarketingScheme

A submission on the extension of the validity of the Scheme and Notices were compiled.

Delivery of submission to the Minister.

The Minister approved the submission on 8 July 2004 and it was published in the Government Gazette.

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Monitoring of statutory levies:

Cotton SA Budget for 2004/05

A submission on the budget for levies income and expenditure was compiled.

Delivery of submission to the Minister.

The Minister approved the submission on 29 September 2004.

Directly affected groups:

Notices to invite any group of persons to register as a Directly Affected Group

A submission and Notices were compiled.

Delivery of submission and Notices to the Minister.

Minister signed and Notices was published in government Gazette.

Trust Issues:Appointment of ministerial trustees on the Maize Trust

A submission was compiled and persons nominated by the NAMC.

Delivery of submission to the Minister.

Forward to the Minister.

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Food Price Monitoring

- Six monitoring points in each Province

- Monitors work in collaboration with Provincial Departments of Agriculture

- Collect food price data and forward to NAMC for processing and analysis

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OUTPUTS AND SERVICE DELIVERY TRENDS - LIVESTOCK

Sub-programmes Outputs Service delivery indicators

Actual performance

Application for new statutory measures in the red meat industry

A Working Group was appointing to investigate the proposed statutory measures (levies, registration of secondary role-players and the submission of records and returns) in the red meat industry.

Completion of the NAMC investigation into the application for statutory measures within 60 days (or longer period as may be approved by the Minister) after the Minister referred it to the NAMC.

The investigation was completed within the period that was approved by the Minister.

Application for new statutory measures in the wool industry

A Working Group was appointed to investigate the proposed statutory measures (registration and records & returns) in the wool industry.

Completion of the NAMC investigation into the application for statutory measures within 60 days after the Minister referred it to the Council.

The investigation was completed within the period that was approved by the Minister.

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Meat Industry Trust Report (submission) was compiled advising the Minister on the expiry of the term of Ministerial trustees.

Submission of a request for the appointment of Ministerial trustees to the Minister.

On 15 December 2004 the Minister appointed three new Ministerial representatives on the Red Meat Industry Trust.

Mohair Trust Report (submission) was compiled advising the Minister on the expiry of the term of Ministerial trustee.

Submission of a request for the appointment of a Ministerial trustee to the Minister.

On 23 September 2004 the Minister appointed a new Ministerial representative on the Mohair Trust.

Wool Trust Report (submission) was compiled advising the Minister on the expiry of the term of Ministerial trustee.

Submission of a request for the appointment of a Ministerial trustee to the Minister.

On 5 August 2004 the Minister appointed a new Ministerial representative on the Wool Trust.