1. STRATEGY PLAN 2008/9 – 2010/11 SELECT COMMITTEE ON LAND AND ENVIRONMENT 06 May 2008 By Dr Kgabi Mogajane Acting Director General Department of Agriculture

2. 2 PRESENTATION OUTLINE Overview Programme 1 Programme 2 Programme 3 Programme 4 Programme 5 Vote 23: Estimate of National Expenditure 2008/09 Conclusion

3. 3  The Strategic Plan 2008/09 - 2010/11 addresses intergovernmental coordination as raised by this Committee last year  It outlines our implementation plans with specific emphasis leadership alignment with the DLA and all sector stakeholders in Apex Project 7; the Land and Agrarian Reform Project (LARP)  Land Bank, CASP and MAFISA were extensively addressed recently  Other issues raised last year e.g. drought relief, will be addressed by the relevant line function.  The sector will be operating in an environment of low commodity stocks and high demand and food and agricultural prices globally  The Strategic Plan outlines our businesses philosophy and approach for the coming five years aligned to our Strategic Objectives  It outlines funding and work priorities for all programmes for the MTEF cycle  Lastly, it contains annual performance plans with specific deliverables per quarter 1. Overview

4. 4 OVERVIEWOVERVIEW Escalating food prices  The low availability of grains world wide  Unfavourable climatic conditions –Climate change in major grain producing  Trade restrictions in major grain exporting countries - Argentina  The increased demand for animal feed  Increasing energy and fuel costs making road transport of grains more expensive  Misuse of the market power  Bio-Fuel – USA  Electricity – Currently not much because challenges started late for summer crops, Winter crops pose a challenge.

5. 5 OVERVIEWOVERVIEW Agri-business Cost and availability of electricity; Overall cost of doing business in SA. Cost of transport (emphasizing on both fuel prices, inaccessible railway, terrible status of roads) Cost of quality technology; Cost and availability of water; Cost of finance (high interest rates) Cost of crime

6. 6 OverviewOverview  Argentina controlled exports early last season by closing registration for new exports  Zambia – export ban on grains  Australia – drought. In June 2007 Australia changed the wheat marketing Act – right to veto bulk wheat exports  China – introduced value added Tax  India, Kazakhstan, Pakistan, Russia and Ukraine –Exports  Brazil and the USA –livestock producers –export taxes

7. 7 OVERVIEWOVERVIEW  Morocco, Nigeria and turkey – reduced the grain export tariffs  Saudi Arabia – import subsidy for specific grains  Bangladesh, Turkey and Yemen – grain import trade in competition with private sector to depress private margins  Mexico –Cash transfers to the poor.  Kenya, Mexico and the USA –school lunch programmes

8. 8 OVERVIEW -INTERVENTION  Food parcels Strengthen food parcels (Challenges) or Vauchers or Cash for the next 3 months Inputs supply – starter packs – Family and Community gardens  School feeding programme Need to be strengthened “Apple a day and an Orange a day” Partnership with industry.  Social relief for the distressed - vulnerable children  Small holder production systems Vegetable gardens and Milk production  Increase the number of VAT exempt /Zero rating food items  Private –public partnership.

9. 9 OVERVIEW -INTERVENTION  Increase Agricultural production Incentives for farmers –rebates on certain agricultural goods Transport – rail Removing barriers to entry –across the value chain –Agro-processing - thedti incentive programme should also include SMME in the food processing Fast track LARP – LETSEMA-ILIMA Capital intensive projects  Agricultural tariffs – review

10. 10 Apex Project 7 on land and agrarian reform (LARP)  Concentrate on focus areas (farm dwellers, corridors, commodities and others)  Aligned comprehensive support  Cooperative government (joint planning, budgeting, approval and implementation)  Full use of partnerships for delivery  Decentralised decisions and implementation to lowest practical level  Success and sustainability of individual settlement projects will be the measure of success of LARP 1. LARP

11. 11 Apex Priority 7 (LARP)  Redistribute 5 million hectares of white-owned agricultural land to 10 000 new agricultural producers  Increase Black entrepreneurs in the agribusiness industry by 10 %  Provide universal access to agricultural support services to the target groups  Increase agricultural production by 10-15% for the target groups, under the LETSEMA-ILIMA Campaign  Increase agricultural trade by 10-15% for the target groups  In addition, together with provincial departments of Agriculture we further added the following to our joint Land and Agriculture Programme of Action:  Biosecurity  Governance 1. Overview

12. 12  The Departmental Strategic Objectives are:  Ensure availability and access to sufficient safe and nutritious food  Eliminate skewed participation and inequity in the sector  Increase growth, income and remunerative job opportunities in agriculture  Enhance the sustainable management and efficient use of natural agricultural resources and production inputs  Ensure efficient and effective governance and partnerships  Ensure knowledge and information management  Ensure national biosecurity and effective risk management 1. Overview (continued)

13. 13 PURPOSE The programme provides the DoA with strategic leadership and management, as well as overall administrative and performance oversight, including managing returns on resource investments. COMPONENTS of the PROGRAMME Director – General’s Office Chief Operating Office Chief Financial Office Chief Programmes Office Chief Communications Office Internal Audit Office In addition, these offices give support to the four budgetary programmes namely; Livelihoods, economics and Business Development; Biosecurity and Disaster Management; Production and Resource Management; and Sector Services and Partnerships Programme 1: Administration

14. 14 Programme 2: Livelihoods, Economics and Business Development (LEBD) by Mr Sam Malatji

15. 15 Programme 2: LEBD PURPOSE  Develop and facilitate the implementation of appropriate policies and targeted programmes aimed at promoting equitable access to the agricultural sector,  Promote shared growth and the commercial viability of emerging farmers and ensure household food security.  Facilitate market access for South African agricultural products nationally and internationally, promote BEE in the agricultural sector, provide economic and statistical services to support economic growth and development and monitor the economic performance of the sector.

16. 16 Programme 2: LEBD COMPONENTS of the PROGRAMME  Livelihoods Development Support facilitates the provision of post- settlement support to emerging farmers, agricultural development finance, promotion of farmer co-operatives and village banks as well as food security through policies, norms, legislation, programmes and information.  Trade (Marketing) and Business Development facilitates international and domestic market access for South African agricultural products and promotes BEE in the sector. It also interacts with the NAMC.  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.

17. 17 Programme 2: LEBD Key Result Area and Measurable Objective:  To improve emerging farmers’ access to, and  Sustained participation in agriculture, and to  Improve food security in the medium term, by providing improved opportunities and more equitable access, in order to maximise growth and employment in the sector.

18. 18 Sub programme OutputMeasure/IndicatorTarget Livelihoods Development Support Improved livelihoods of emerging farmers/ households/ entrepreneurs Number of farmers and/or entrepreneurs gaining access to financial services; and number of member-based financial Institutions linked to financial markets Increased number of sustainable land and agrarian reform projects/beneficiaries Number of vulnerable households and emerging farmer groups supported by means of agricultural starter packs. 7 000 farmers and/ or entrepreneurs gaining access to financial services 80 000 land and agrarian reform beneficiaries. 70 000 households Programme 2: LEBD

19. 19 Sub programme OutputMeasure/IndicatorTarget Trade and Business Development Equitable participation in trade, marketing and business development Number of farmers and entrepreneurs Sector specific strategies incorporating broad-based BEE Number of interventions and support frameworks established 1100 farmers trained 100 entrepreneurs facilitated 3 commodity 8 Economic and Statistical Services Report on the economic performance of the sector Number and range of reports published Publish 16 economic reviews, 8 topical reports and 6 statistical reports by March 2009 Programme 2: LEBD

20. 20 Planned Expenditure : LEBD Livelihood Development Support: R744 783 000 Trade and Business development: R110 341 000 Economic and Statistical Services R 22 187 000 National Agriculture Marketing R 22 459 000

21. 21 Programme 3: Biosecurity and Disaster Management (BDM) by Dr Kgabi Mogajane

22. 22 Programme 3: BDM PURPOSE To manage the risks associated with animal diseases, plant pests, genetically modified organisms (GMOs) and registration of products used in the agricultural field. This is done to ensure food safety and security and safeguard human health. It also develops the agricultural risk and disaster management plans to reduce risks associated with natural disasters. COMPONENTS of the PROGRAMME Plant Health and Inspection Services develops policies and systems to manage risks associated with plant pests and diseases, genetically modified organisms, promote trade of products of plant origin and the movement of regulated articles and products. It also ensures good quality control of regulated products. Food, Animal Health and Disaster Management manages and reduces risks associated with animal diseases, promotes trade of products of animal origin, ensures food safety and developing agricultural risk and disaster management strategies.

23. 23 Programme 3: BDM KEY RESULT AREA and MEASURABLE OBJECTIVE  Reduce the incidence of animal and plant diseases and pests and ensure food safety,  Compliance with international and national norms and standards, and  Disaster management measures through improved risk management systems.

24. 24 Programme 3: BDM SUB PROGRAMME OUTPUTMEASURE/INDICATORTARGET Plant Health and Inspection Services Biosafety regulatory guidelines Approved guidelines for the appeal process in terms of GMOs Act March 2009 Border control inspection training manual SAQA accredited border control inspection training manual March 2009 Plant Protection BillApproved plant health policyMarch 2009

25. 25 Programme 3: BDM SUB PROGRAMME OUTPUTMEASURE/INDICATORTARGET Food, Animal Health and Disaster Management Food Safety/ Control Strategy Approved strategy for the food safety system for South Africa March 2009 Agricultural climate change sector plan Approved agricultural climate change sector plan March 2009 Primary Animal Health Care Programme Approved Primary Animal Health Care Programme March 2009

26. 26 Planned Expenditure : BDM Plant Health and Inspection Services: R169 737 000 Food, Animal Health an Disaster Management: R139 957 000

27. 27 Programme 4: Production and Resources Management (PRM) by Dr Motseki Hlatshwayo

28. 28 Programme 4: PRM PURPOSE Identify opportunities and develop strategies in order to optimise agricultural productivity and profitability within the agricultural sector through sustainable use and protection of land and water resources. COMPONENTS of the PROGRAMME Agricultural Production facilitates improvements in agricultural productivity with the emphasis on sustainable animal, aquaculture and plant production systems and administers the Plant Improvement Act, 1976; Plant Breeders’ Rights Act, 1976; and the Animal Improvement Act, 1998 Engineering Services and Resources Management facilitates the development of agricultural infrastructure and use of agricultural resources. This also includes auditing of natural resources, controlling migratory pests, rehabilitation and protection of agricultural land and promotion of the community-based LandCare Programme.

29. 29 Programme 4: PRM KEY RESULT AREAS and MEASURABLE OBJECTIVE Improve the efficiency of agricultural production for livestock, fisheries and crops, area-wide planning, mechanisation, irrigation development and the enhancement, conservation and rehabilitation of degraded natural agricultural resources.

30. 30 Programme 4: PRM Sub programme Output Measure/ Indicator Target Agricultural Production Crop and livestock massification Community gene banks Animal Breeding Support Programme Community seed production scheme 2 gene banks established 500 breeding materials distributed 3 schemes established Engineering Services and Resource Management Natural resources management and enhancement Agricultural Mechanisation Programme Land Use Planning and Zoning Programme Guidelines for irrigation development 200 power hoes distributed 3 Local municipalities zoned 100 000 ha established/rehabilitated

31. 31 Planned Expenditure : PRM Agricultural Production: R56 729 000 Engineering Services and Resources Management: R201 290 000

32. 32 Special Projects / Highlights: PRM Agricultural Production: -Animal Massification Programme -Plant Massification Programme -Biofuels Feedstock Production Programme Engineering Services and Resources Management: -Rehabilitation of Degraded Lands -Revitalization of Irrigation Schemes -Area-wide Planning

33. 33 Programme 5: Sector Services and Partnerships (SSP) by Ms Vangile Titi

34. 34 PURPOSE Manage and co-ordinate intergovernmental stakeholders and international relations, agricultural education and training, extension and advisory services as well as research and technology development. COMPONENTS of the PROGRAMME Sector Services: Directs and supports agricultural education, training, extension, research and advisory services in support of targeted groups. It also manages the transfer of funds to the ARC. International, Intergovernmental and Stakeholder Relations: Provides leadership and co-ordination in all facets of international relations within agriculture and creates an enabling environment for constructive relations among all stakeholders. Programme 5: SSP

35. 35 KEY RESULT AREAS and MEASURABLE OBJECTIVE Maximising growth in the sector by providing support services to emerging and established farmers including women, youth and the disabled through targeted skills development, extension and technology development programmes. Programme 5: SSP

36. 36 SUB PROGRAMME OUTPUT MEASURE/ INDICATOR TARGET Sector Services Training, research and extension support programmes Number of black entrepreneurs receiving targeted training, research and extension support 3 000 black entrepreneurs receiving targeted training, research and extension support by March 2009 Norms and standards for agricultural training institutions Adoption of the norms and standards by sector partners By June 2008 National Research Agenda An approved agendaBy March 2009

37. 37 Programme 5: SSP SUB PROGRAMME OUTPUT MEASURE/ INDICATOR TARGET International, Intergovernmental and Stakeholder Relations Structured partnerships with local and international stakeholders in support of black entrepreneurs Number of structured partnerships approved and implemented By March 2009 Strategy on engagement with national and international public and private sector stakeholders Approved strategy documentBy June 2008

38. 38 Planned Expenditure : SSP Sector Services: R 188 264 000 International, Intergovernmental and Stakeholder Relations: R 55 730 000 Agriculture Research Council R 514 556 000

39. 39 ESTIMATE OF NATIONAL EXPENDITURE 2008/09 VOTE 23: AGRICULTURE by Mr Tommie Marais

40. 40 ENE ALLOCATION: 2008/09 R’000 R’000 MTEF allocation 1 901 069 Plus: LandCare 48 969 CASP 434 9182 384 956 Plus: Salary adjustments 13 023 Inflation 14 552 Accommodation charges 3 150 Import/export inspections 30 000 Extension/advisory services 100 000 160 725 2 545 681 Less: Baseline efficiency saving 15 000 Plus: Functional shift 3 990 TOTAL APPROPRIATION2 534 671

41. 41 SUMMARY PER PROGRAMME 2007/082008/09 % R’000R’000 Administration 283 335300 364 6,0 Livelihoods, economics and business development 886 951901 814 1,7 Bio-security and disaster management 243 611311 721 28,0 Production and resources management 247 780 259 900 4,9 Sector services and part- nerships 619 489 760 872 22,8 Total 2 281 166 2 534 671 11,1

42. 42 SUMMARY PER ECONOMIC CLASSIFICATION 2007/08 2008/09 % R’000 R’000 Compensation of employees 500 191 585 811 17,1 Goods and services 421 216 435 974 3,5 Transfers and subsidies 1 308 824 1 473 338 12,6 Payments of capital assets 50 935 39 548 (22,4) Total 2 281 166 2 534 671 11,1

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46. 46 Thank You