AGRICULTURAL RESEARCH COUNCIL STRATEGIC PLAN AND …

AGRICULTURAL RESEARCH COUNCIL

STRATEGIC PLAN AND ANNUAL

PERFORMANCE PLAN 2021/22

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MEDIUM TERM STRATEGIC FOCUS PRIORITIES FOR 2019 – 2024

MTSF PRIORITIES FOR ARC:

a) Priority 1: A Capable, Ethical and Developmental

State

b) Priority 2: Economic Transformation and Job

Creation

c) Priority 3: Education, Skills and Health

d) Priority 5: Spatial Integration, Human Settlements

and Local Government

e) Priority 7: A better Africa and World

Cross Cutting Focus Areas:

Women

Youth

People with Disabilities

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ARC MTSF ALIGNED OUTCOMES FOR 2019 – 2024___________________________________________________

1. Increase agricultural production and productivity

2. Sustainable ecosystems and natural resources

3. Improved nutritional value, quality and safety of agricultural products

4. A skilled, capable agriculture sector with innovation, knowledge and

technologies

5. Enhanced resilience of agriculture

6. A high performing and sustainable organization

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ARC ROLE/PURPOSE: ALIGNMENT TO MTSF PRIORITIES __________________________________________________

1. Promote sustainability and equitable economic participation in the

agricultural sector

2. Promote agricultural development and growth related industries

3. Facilitate sector skills development and knowledge management

4. Facilitate and ensure natural resource conservation

5. Promote national food and nutrition security; and,

6. Contribute to improved health and better quality of life

ARC MANDATE, VISION & MISSION _______________________________________________

MANDATE

In terms of the Agricultural Research Act, to promote the agricultural

and related sectors through Research, Development and Technology Transfer

VISION

Excellence in research and innovation for sustainable agricultural systems and economic development

MISSION

To conduct research, develop partnerships and human capital,

to foster innovation for a sustainable agriculture sector

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ARC VALUES

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DESIRED IMPACT

SUSTAINABLE AGRICULTURAL SYSTEM FOR AGRARIAN TRANSFORMATION, FOOD AND

NUTRITION SECURITY

DESIRED OUTCOMES AND INTERVENTIONS

Outcome 1

Increased agricultural

production and productivity

Outcome 2

Sustainable ecosystems

and natural resources

Outcome 3

Improved nutritional value, quality

and safety of agricultural products

Outcome 4

A skilled and capable

agriculture sector

Outcome 5

Enhanced resilience of

agriculture

Crops with improved

characteristics Biodiversity Management Product Development Skills Development Climate Resilient Solutions

Diagnostic and Analytical

Services Soil Health Assessment Broadening the Food Base Technology TransferDiagnostic and Analytical

Services

Weed ControlProcessing, preservation, and

storage methods

Smallholder Farmer

Support

Low carbon technologies Knowledge Generated

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OUTCOME 1: Increased agricultural production and productivity

RESPONSIBLE BUSINESS

DIVISIONOUTPUT OUTPUT INDICATORS

MEDIUM-TERM TARGETS

2021/22 2022/23 2023/24

Crop Sciences

Crop production

technologies

developed and

information

dissemination

Number of cultivars registered 6 11 10

Number of field trials 271 249 235

Number of technical reports 170 164 189

Number of cultivar evaluations 40 40 40

Animal SciencesAnimal improvement

services

Number of farmers participating in each of

the animal improvement schemes210 220 230


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2021/22 PLANS TO SUPPORT INCREASED AGRICULTURAL PRODUCTION AND PRODUCTIVITY OF GRAINS

• During 2021/22 financial year, the ARC will continue to offer scientific solutions that address

deficiencies in quality of produce, inconsistent volumes, and transformation of the grains and oilseed

industry.

• The ARC will contribute to South Africa’s self-sufficiency in wheat by breeding high performing wheat

cultivars for all wheat production areas in South Africa. Cultivar evaluation trials will be conducted for all

wheat producing areas in order to guide and inform planting decisions by farmers.

• The OR Tambo District soya bean project is a key interventions where ARC will provide support

towards planning and production of soya bean on 1 500 hectares at the beginning, with a view to

increase to 20 000 hectares for the benefit of 11 000 households in Lusikisiki and Flagstaff. This project

will result in the production of 3 900 tons of soya bean initially, which will increase to 60 000 tons for

agro-processing, using four (4) ARC non-GMO cultivars.

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INCREASED AGRICULTURAL PRODUCTION AND PRODUCTIVITY

ARC has developed a mobile app to assist dairy

farmers with day-to-day herd management to improve

productivity and profitability

The app is known as the Livestock Manager

It is linked to the National Animal Improvement

Database (locally called the Integrated Registration and

Genetic Information System - INTERGIS)

Livestock Manager is used by farmers at different level

of development or scale of production

Smallholder, emerging and commercial dairy farmers

The app has been successfully deployed in South

Africa

It is used by more than 150 farmers country-wide

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OUTCOME 2: Sustainable Ecosystems and Natural Resources



MEDIUM-TERM TARGETS

2021/22 2022/23 2023/24

Crop Sciences

RIS

Natural Resource

Management



Number of services rendered 500 582 595

Number of biological control solutions

developed1 1 1

Soil and Water Science

Number of samples analysed for soil

health and water quality95 155 160

Number of scientific solutions 1 0 0



Weed ScienceNumber of technical reports 12 12 12


Ecosystem servicesNumber of technical reports 1 2 3


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OUTCOME 2: SUSTAINABLE ECOSYSTEMS AND NATURAL RESOURCES

Fall Armyworm

Migration Links to Desertification, Land Degradation and Drought

Disasters can be classified into forms which are

geophysical (e.g.. land degradation and

desertification) and climatological such as

extreme temperature, drought, wild fire,

meteorological ( cyclones and storms)

Land degradation-reduction or loss in the capacity

of soil and land resources to produce food, fodder

and other ecosystems services, and

desertification is land degradation that occurs in

drylands

It is commonly acknowledged in scientific

literature that “extreme weather and climate or

slow-onset events may lead to increased

displacement” (IPCC 2019).

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OUTCOME 2: SUSTAINABLE ECOSYSTEMS AND NATURAL RESOURCES

• Biosecurity – Plant Health Research & Services

• Biological Control of Alien Invasive Species

• Water Use & Soil Analysis for Crop Suitability

• Land Use Planning – PLAS lessons

• Agriculture Master Plans

• Early Warning for Climate Risk

Squash infected

Fall Armyworm

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OUTCOME 3: Improved Nutritional Value, Quality and Safety



MEDIUM-TERM TARGETS

2021/22 2022/23 2023/24

Crop Sciences

Broadening the food base

Number of cultivars registered 0 4 2



Number of cultivar evaluations 60 64 54

Number of new products

developed0 6 6


Post-harvest handling and

agro-processing

Number of cultivars developed

with improved shelf life1 1 1

Number of new post-harvest

solutions developed 2 1 1

Number of solutions for

controlled atmosphere0 1 1


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OUTCOME 3: PRODUCT DEVELOPMENT, IMPROVED NUTRITIONAL VALUE, AND SAFETY AND QUALITY OF AGRICULTURAL PRODUCTS - STATE OF THE ART

WINE RESEARCH & COMMERCIAL PRODUCTION FACILITY

Rooibos Tea Research and Processing;

Fruit agro processing into Juice and Jam.

Breeding superior and adaptable cultivars

Addressing malnutrition – Orange Flesh Sweet

Potato rich in Vitamin A (informal market & school

gardens)

Commercial niche markets

Very high root yield; Long storability

Smooth appearance, low oxidation

Crop protection research: nematode, bacterial wilt

Maintenance of disease-indexed material

Agroprocessing and enterprises development

Farmer support and training

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OUTCOME 4: A Skilled & Capable Agriculture Sector Thru Innovation,

Knowledge Management & Technologies

RESPONSIBLE

BUSINESS DIVISIONOUTPUT OUTPUT INDICATORS

MEDIUM-TERM TARGETS

2021/22 2022/23 2023/24

Crop Sciences

Animal Sciences

RIS

Impact and Partnerships

Skills development

Number of people trained 328 382 406

Number of Postgraduate students supported

by ARC23 40 40

Technology Transfer

Number of technologies/IP

registered/developed3 4 3

Number of enterprises supported 3 3 3

Number of technologies transferred under

license30 30 30

Smallholder farmer

supported

Number of farmers trained 765 870 954

Number of technical assessments for

commercial readiness30 40 50

Number of smallholder farmers participating in

KyD4000 4500 5000


Number of farmer field days 3 4 3

Farmer support

Number of farm assessments 30 35 40

Number of farmers supported 154 238 283

Number of farmer field days 68 22 53


Knowledge generated

and dissemination

Number of scientific publications 234 245 253

Number of popular publications 204 189 224

Number of public awareness events 72 198 200

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OUTCOME 4: A Skilled and Capable Agriculture Sector through Innovation & Knowledge Management

Kaonafatso ya Dikgomo (KyD) Scheme:The following technical services will be provided to farmers:

• Animal identification to combat stock theft & possible traceability;

• Animal recording and improvement to improve quality of livestock;

• Rangeland planning and management to prevent overgrazing;

• Alternative feeding strategies to mitigate against drought and climate change;

• Animal health services.

The ARC training of 625 National Rural Youth Service Corps Programme (NARYSEC) on behalf of DALRRD as

part of the Comprehensive Rural Development Programme (CRDP)

Participants/Trainees from Ethekwini (KZN), Waterberg (Limpopo), OR Tambo (Eastern Cape) as part of the

District Development Model (DDM)

Training is various aspects of agriculture (production, business skills, social facilitation, etc.)

513 youths have been trained to date

The ARC is collaborating with agricultural colleges in the three (3) provinces in delivering the training and for

hands-on training:

Cedara College in KwaZulu-Natal;

Tompie Seleke College in Lompopo; and

Fort Cox College in the Eastern Cape

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AGRICULTURE SKILLS THROUGH SCHOOL GARDENS

Vegetable school gardens in two schools (Bula Dikgoro and Mahlasedi

Masana public primary schools) in Mamelodi East, Pretoria, Gauteng Province.

The total number of learners involved in the school feeding programmes of the

two schools were 1182 and 1753, respectively. Aim: To establish sustainable and

productive vegetable gardens in the schools, to improve access to vegetables.

The project identified that food garden programmes should involve a component

on the training of educators and garden personnel, provision of gardening

equipment and technical advice.

AgriSETA accredited vegetable production training to learners in school

gardens. New biofortified crops (e.g. orange-fleshed sweet potatoes), as well as

healthy new crops (e.g. moringa), were introduced to promote consumption in

the schools and the community. Open field vegetable production systems were

supplemented with vegetable tunnel production and bag production systems to

improve vegetable accessibility, pest and disease management and to optimum

resource utilisation.

The project will be rolled-out to other schools in Gauteng and other

Provinces during 2021/22, and the funders has expressed interest to fund the

roll-out. It is important for schools to encourage children to report at home what

they are doing at school, invite families to visit the gardens, create model

gardens and distribute seedlings in the community.

Figure 4A: In situ rainwater harvesting technique implemented at

Bula Dikgoro and Mahlasedi Masana primary schools.

Figure 4B: Supply of fresh leafy vegetables to the kitchen and

learners eating at the Bula Dikgoro primary school.

Figure 4C Climate-smart, low-

cost hydroponic production

system for the vertical cultivation

of vegetables and deficit

irrigation at a primary school in

Mamelodi, Gauteng Province.

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OUTCOME 5: Enhanced Resilience of Agriculture

RESPONSIBLE

BUSINESS DIVISIONOUTPUT OUTPUT INDICATORS

MEDIUM-TERM TARGETS

2021/22 2022/23 2023/24

Crop Sciences

Animal Sciences

RIS

Climate resilient

solutions

Number of climate resilient solutions adopted 3 3 3

Number of drought tolerant cultivars 1 2 2




Number of tools for measuring climate change 281 321 321

Vaccine production

Number of blood vaccine doses produced 235 000 235 000 235 000

Number of different types of vaccines

developed0 0 0

Number of FMD vaccine doses produced 0 0 0

Number of vaccine clinical trials 0 0 0

Laboratory services

Number of tests performed for animal health 15 006 15 008 16 010

Number of tests performed for food and feed 2 255 2 355 2 460



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OUTCOME 5: Enhanced Resilience of Agriculture

• Vaccines are the most cost-effective of controlling livestock diseases – difficult to develop;

• Most vaccines perform poorly especially in the African rural setting that lacks a cold chain;

• Challenge in preventative potential of animal vaccines in Africa is maintaining

an effective cold chain;

• FMD Production Facility;

• Heartwater Vaccine – transfer to OBP.

Climate Change and Adaptation

• Monitoring of Climate patterns;

• Crop Suitability and Prediction

Models;

• Drought Tolerant Crops (e.g. Maize);

• Water Use Efficiency.

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CLIMATE CHANGE: EARLY WARNING SYSTEM FOR RIFT VALLEY FEVER Understanding impact of Climate Change on distribution of pests and diseases

• An increase in temperature will not only increase vector populations (mosquitoes, midges) but will also shorten both the time span between blood meals (increased biting rate) and the intrinsic incubation period by increasing the speed of virus development within the insect.

• Early warning systems for disease outbreaks could provide short- and long-term decision support for risk management and production of vaccines and diagnostic kits. A RVF early warning system was developed in a geographical information system (GIS) environment by retrospective analysis of rainfall and rainfall-associated climate variables in target areas during the 2008-2011 RVF epidemics in South Africa. This model correctly identified the risk in nearly 70% of instances at least a month before an outbreak.

OUTCOME 6: PERFORMING & SUSTAINABLE ORGANISATION

HUMAN RESOURCES: EFFECTIVE MANAGEMENT OF ARC ASSETS – PEOPLE

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OUTCOME 6: Human Resources – Key Areas

ORGANISATIONAL CULTURE (assessing the current organizational climate, developing feedback

mechanisms for employees on the achievement of the desired culture, designing & delivering activities to

embed the desired culture into the organization)

EMPLOYER BRAND (initiatives aimed at improving the ARC reputation and brand both with its employees

and within the sector)

EMPLOYEE ENGAGEMENT (consulting and negotiating with employees & developing initiatives that will

result in cost reduction, loyal and motivated employees)

CHANGE MANAGEMENT (initiatives assisting individuals or teams to shift from a current state/situation to a

desired state during the current unprecedented times of COVID 19 and technological adaptations)

RESEARCH CAPACITY DEVELOPMENT (initiatives to grow and develop research capacity within the ARC,

with advanced core and behavioral skills to grow the ARC business)

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OUTCOME 6: Human Resources – Demographics

ARC CAPACITY PER RACE ARC CAPACITY PER GENDER

52,98%

45,71%

1,30%

Male Female including Female Foreigners Male Foreigners

71,51%

9,71%

0,46%16,55%

1,76%

African Coloured Indian White Foreigners

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ARC SCIENTIFIC CAPACITY PER RACE ARC SCIENTIFIC CAPACITY PER GENDER

52,46%

4,47%

1,19%

36,96%

4,92%

African Coloured Indian White Foreigners

43,37%

52,76%

3,87%

Male Female including Female Foreigners Male Foreigners

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PROFESSIONAL DEVELOPMENT PROGRAMME – ARC NRF FUNDED

PROFESSIONAL DEVELOPMENT PROGRAMME – DSI IPBS FUNDED

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Post-Doctoral

PhD

Male Female

0 2 4 6 8 10 12 14

PhD

D Tech

MSc

Female Male

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EMPLOYEE DEVELOPMENT - FORMAL TRAINING

0 20 40 60 80 100 120 140 160 180 200

PhD

MSc

BSc Hons

BSc

D Tech

M Tech

B Tech

NDipl

MBA/MBL/MPHIL/MCom

N Dipl Public Relations

B Degree

Prof Certificate

Male Female

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OUTCOME 6: Human Resources – Vacancies

0 500 1000 1500 2000 2500

Crops

Animals

SCW&E

I&P

Corporate

TOTAL

Headcount

2019/2020 Vacancies 2019/2020 Headcount 2019/2020 Approved Posts

FY2021/22 BUDGETS

OUTCOME 6: PERFORMING &

SUSTAINABLE ORGANISATION

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TABLE OF CONTENTS

1. Budget Assumptions

2. ARC Funding Sources

3. Total Expenditure Trend

4. Financial Position Overview

5. Key Performance Indicators / Targets – FY2022 to FY2024

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1. BUDGET ASSUMPTIONS

The following assumptions were applied, as far as possible, during the Budgeting process for FY2021/22 – FY2023/24

A Zero Budgeting Approach was used

Parliamentary Grant reduction of 4% year – on – year (FY2021 vs FY2022)

Parliamentary Grant from DSI assumed to be Zero

External Income guideline 8 – 20% [not achieved due to current economic climate]

Other Income – Rental income: the lesser of 10% annual increase / per lease agreement [not

achieved under current market conditions]

Personnel costs – 0% salary increases.

Targeted Inflation used for budget purposes 4.2%

Training Costs (formal and Informal) = 6% of Salary Costs

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2. ARC FUNDING SOURCES

0

200

400

600

800

1000

1200

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021(forecast)

2022 2023 2024

R' 0

00

ARC Funding Overview - (2010 - 2024)

Operational PG - DALRRD Operational PG - DSI ECSP Projects - Treasury Baseline Capex - DALRRD External Income Other Income

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2. ARC FUNDING SOURCES (continued)

The PG Funding averages R1.1 billion per annum and remains the major revenue source for the ARC.

The Provision of National Services funding is dedicated to the following programmes namely: Climate Monitoring; SADC

Activities; Intergis; Crop forecasting and Diagnostic services.

The Maintenance of National Assets funding is received from the Departments of Agriculture (DALRRD) as well Science &

Innovation (DSI). It is earmarked for the following: Gene banks; National collections; inventories; Databanks; Surveys and

Information system and other national public goods assets.

External Income sources are from: Revenue Services (Breeding. Agronomy. Disease Control. Research Materials);

Diagnostics services (Analytical services. Disease diagnostics.); Advisory Services (Consulting services. Training.

Agricultural Engineering Services.); Farm Products (Consumable products)

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Key ratios (Funding Sources)

FY2020/21

(forecast) FY2021/22 FY2022/23 FY2023/24

Operational PG / Total Funding 65% 60% 60% 60%

External Income /Total Funding 22% 24% 24% 24%

Other Income / Total Funding 5% 8% 8% 8%

Capex / Total Funding 8% 7% 7% 7%

Funding Overview – MTEF (FY2022 – FY2024)

No DSI PG from FY2021 onwards

Capex PG averages R111 million per annum

External Income R378 million per annum

Other Income averages R127 million per annum

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3. TOTAL EXPENDITURE TREND

490 511 518612

685 685768 755

817 820 795699

807 807 807

265 282 312 350

491 491 509 490 508 472358

471 552 577 603

773 811 854

1015

1227

1344 1317 12871346 1336

1 235 1 170

1 359 1 384 1 409

0

200

400

600

800

1000

1200

1400

1600

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (forecast)

2022 2023 2024

R' 000

OPEX TREND (2010 - 2024)

Personnel Costs Operating costs Total OPEX

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3. OPERATING EXPENDITURE RATIOS

Key Ratios

FY2020/21

(forecast) FY2021/22 FY2022/23 FY2023/24

Personnel costs as % Operational PG 81% 90% 86% 82%

Personnel costs as % Total OPEX 60% 59% 58% 57%

Personnel Costs remains a significant cost driver for the ARC

Zero % salary increase

Vacancies budgeted at R63 million (refer to next slide)

6% Training Costs (Formal and Informal) budgeted at R43.8 million – to improve on skills development

ARC Sustainability and Financial Turnaround plan to be implemented to reduce the Personnel Costs as %

Operational PG to 60%

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4. OUTCOME 6 (Continued): FINANCIAL POSITION OVERVIEW

402

1 76

3

314

249

1 60

2

591

1 92

1

374

384

1 75

4

669

2 01

0

350 44

8

1 88

1

554

2 09

2

327

330

1 98

9

374

2 19

2

356

152

2 05

8

C U R R E N T AS S E TS N O N - C U R R E N T AS S E TS

C U R R E N T L I AB I L I T I E S

N O N - C U R R E N T L I AB I L I T I E S

N E T AS S E TS V AL U E

R' M

ILLI

ON

FINANCIAL POSITION OVERVIEW

Audited 2019/20 Forecast 2020/21 Budgeted 2021/22 2022/23 2023/24

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ARC SUSTAINABILITY FOCUS AREAS

Governance and Financial Management

Revenue sources composition and

optimization (organic growth)

Growth through acquisitions and

partnerships

Improve efficiencies –resulting in cost

reduction and value for money

Prioritization of Capex PG to key strategic projects

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FINANCIAL SUSTAINABILITY AND TURNAROUND____________________________________________________

The key initiatives the ARC will be embarking on during the next 5 years are as follows:

1. Optimisation of the personnel costs, with a target to reduce the baseline by R320 million;

2. Consolidation of the Pretoria Campuses, from 8 to 3. The pre-feasibility assessment is

underway. To result in additional rental income / once-off proceeds on sale of assets;

reduction in fixed costs such as electricity, maintenance and electricity;

3. Cost Saving Initiatives: energy, equipment, transport, animal feed etc, throughout the

ARC;

4. Rationalization of ARC Properties: unutilized and under-utilized land and properties;

5. Procurement and Sourcing Strategies: reduction of costs through procurement

savings.

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COVID-19 IMPACT ON 2020/21 ORGANISATIONAL PERFORMANCE

OPERATIONAL AREA

AFFECTED

MITIGATION MEASURE

International collaboration

projects

Second TELA Maize Project Annual Review & Planning Meeting will take place via Microsoft

Teams on 13-14 May 2020, after it was delayed by one month wherein it was planned to take

place in Mozambique from 13-18 April, 2020. Project teams will make up for lost time in decision

making.

Other collaboration projects that require in-loco acquisition of research material from international

destinations will require extension of completion dates.

Implementation of

commercialsiation projects

Wine making and commercial sales at the ARC commercial cellar can only resume during Level 3

or lower levels of lockdown.

Farmer training interventions Pro-active farmer engagement interactions to increase demand for ARC services. Training teams

are developing on-line training modules for farmers and Work In-service Learners (WILs) to

ensure that revenue from these services is not lost.

Planting of winter trials and

harvesting of summer trials

Provision of personal protective clothing and related safety guidelines has provided assurance to

employees, and there is commitment to ensure that important research trials are conducted

effectively.

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COMMENTS/ QUESTIONS _________________________________

Re a Leboha! Siyabonga! Ria Livhuwa!

Ha Khensa! Siyathokoza! Re a leboga

Thank YouBaie Dankie!Siyabulela!

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COMMENTS/ QUESTIONS _________________________________

Re a Leboha! Siyabonga! Ria Livhuwa!

Ha Khensa! Siyathokoza! Re a leboga

Thank YouBaie Dankie!Siyabulela!

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