1. Presentation to the Portfolio Committee on Agriculture, Forestry and Fisheries on the Organisational Performance Report Quarter 3 2010/11 Director General 25 January 2011

2. 2 Presentation Outline Overview Programme 1: Administration Programme 2: Policy, Planning and Monitoring and Evaluation Programme 3: Economic Development, Trade and Marketing Programme 4: Food Security and Agrarian Reform Programme 5: Agriculture Production, Health and Food Safety Programme 6: Forestry and Resources Management Programme 7: Marine Fisheries and Coastal Management

3. 3 Overview  The department presents its 2010/11 Quarter 3 performance against the planned deliverables as reflected in Part 5 of its Strategic Plan.  This report focuses attention on progress made towards targets and alerts managers to areas where remedial actions are required.  After the establishment of the new Department of Agriculture, Forestry and Fisheries (DAFF), some of the services and deliverables, planned initially, had to be reviewed to ensure alignment to the mandate of the new department and the general focus and approach of government.  The department comprises of seven branches/programmes which are: Administration; Policy, Planning and Monitoring and Evaluation; Economic Development, Trade and Marketing; Food Security and Agrarian Reform; Agriculture Production, Health and Food Safety; Forestry and Resources Management; and Marine Fisheries and Coastal Management.

4. 4 Programme 1: Administration 4 KEY ACHIEVEMENTS FOR THE QUARTER:  Reduction of vacancy rate was achieved by 11% - achieved beyond the set targets.  75% of performance agreements were submitted – 5% over the target.  65% of employees have been trained against specified competencies – target achieved by 15%.  96% migration of fisheries users.  92% of server migration.  MAFISA – 21.3% of MAFISA constituted to the annual target of 2600.  CASP – managed to reach 5.4% of the set target and 9.1% by llima/Letsema.  125 stakeholders located within three developmental categories that are commercial, small holding and subsistence.

5. 5 Challenges and Responses To Challenges Sub-Programme: Chief Information Officer Target (2010/11)ChallengesCorrective Measure Identify, collect and audit the documents of the three entities. Telkom takes time to provide infrastructure for connectivity. There was a freezing period during December 2010, which has been lifted and Telkom promised to finalize all the installations scheduled for this financial year.

6. 6 Challenges and Responses To Challenges cont Sub-Programme: Development Finance Target (2010/11)ChallengesCorrective Measure 10%MAFISA: Loans are demand driven, applicants have to meet set eligibility criteria and the national credit act has to be considered in granting loans and these reduces the number of eligible applicants. Market the scheme widely. MAFISA: Most potential applicants are black listed and therefore may not be granted loans. Establish the validity of the listing before rejecting loan applications. MAFISA: The market interest rate is declining and therefore Mafisa interest rate is become less and less attractive as it is almost equal to the market rate. Review the interest rate charged.

7. 7 Challenges and Responses To Challenges cont Sub-Programme: Stakeholder Relations and Communication Target (2010/11)ChallengesCorrective Measure 50% understanding of opportunities and support from DAFF. Limited budget allocations for branding and publishing. Engaged with Directorate Budgets and Reporting to augment funds.

8. 8 Programme 2: Policy, Planning and Monitoring and Evaluation 8 KEY ACHIEVEMENTS FOR THE QUARTER:  Delivery Outcome Agreements have been signed by all participating Ministers and the DPME (Presidency) will be facilitating its second data forum meetings for all outcomes on 18 – 28 January 2011.  MAFISA: Governance and Operational Policy Committee (GOPC) inputs have been made to the framework and it will be tabled at DEXCO in quarter 4.  The Departmental Strategic & Operational Planning (SOP) Framework has been approved by DEXCO. Currently AIS is busy editing and designing the document.  The Departmental Service Delivery Improvement Plan (SDIP) was signed by the DG and submitted to DPSA.

9. 9 Challenges and Responses To Challenges Sub-Programme: Monitoring and Evaluation Target (2010/11)ChallengesCorrective Measure Quarterly and annual performance reports. Programmes not adhering to reporting time-frames.Implementation of MER guidelines. DDG’s to also take responsibility in making sure that sub-programmes do adhere to time-frames.

10. 10 Challenges and Responses To Challenges cont Sub-Programme: Policy Development and Planning Target (2010/11)ChallengesCorrective Measure 3 policies reviewed and approved. Policy Development Unit still not established due delays in implementing the organisational structure and placements. This deliverable will be performed under the new unit (Policy Development) established on the departmental structure, which awaits implementation. All strategic plans concluded by January 2011. The delay in the implementation of the organisational structure poses a critical challenge on the development of the Departmental 2011/12 Strategic Plan. The process of producing the draft Strategic Plan is still on course for end of January 2011. Approved departmental planning framework. The development of PDA Planning Framework has been placed on hold pending consultations with PDAs on the Outcomes Process. The process of reviewing PDA budget structures and performance indicators, which is detrimental for the development of the Planning Framework, will commence in Quarter 4 thus providing the platform for the framework process to continue.

11. 11 Programme 3: Economic Development, Trade and Marketing KEY ACHIEVEMENTS FOR THE QUARTER:  Submitted a feasibility report on the establishment of fresh produce collating facilities to IDC, Landbank, the dti for EU Funding as well as provincial Development Corporations for possible funding.  Work was undertaken with regard to the EU/EPA negotiations and the TDCA review in an attempt to increase our market access.  The review process of the SACU/EFTA (free trade agreement) also started and will be used to try and obtain additional market access.  We started work on the agreed concept of a SADC-EAC-COMESA tripartite free trade area.  All the work undertaken in the different negotiations multilaterally and bilaterally include the increase of possible market access for processed products.  Agreements with the following countries were signed: Egypt, Congo Brazzaville and Kenya.  16 sustainable rural cooperatives have been established.

12. 12 Challenges and Responses To Challenges Sub-Programme: International Relations and Trade Target (2010/11)ChallengesCorrective Measure Imports = 7 % Exports = 35 % Availability of import and export information at the end of the year. Final figures only available after six months. All the work regarding the negotiations, multilateral and bilateral, is undertaken with the objective of increasing trade. 52 % of export processed products Availability of export data after the end of the year only available six months after end of the year. All the work regarding the negotiations. Multilateral and bilateral, is undertaken with the objective of increasing trade.

13. 13 Challenges and Responses To Challenges cont Sub-Programme: Cooperatives and Rural Enterprise Development Target (2010/11)ChallengesCorrective Measure As per scorecards of the sector charters Reliance on the DTI IT Portal to report the implementation of the scorecards in the agricultural sector. The statistics on this portal have not changed since March 2010. AgriBEE Charter Council is still in a process of finalizing the section 9 sector code that will have its own IT Portal. 3Poor coordination of co-operative function among the Department, Provincial Departments of Agriculture and other government agencies which often results in duplication of efforts and resources. A proposal to address these issues is being crafted and will be sent to H.O.Ds.

14. 14 Programme 4: Food Security and Agrarian Reform KEY ACHIEVEMENTS FOR THE QUARTER:  Monitoring of DAFF supported projects by Land settlement:  342 CASP projects.  192 projects geo-referenced.  Monitoring of state farms supported by DAFF:  51 farms supported, 5 renewed lease, caretaker ship & transfer; 46 visited for Monitoring and Evaluation.  A total of 7 218 community members have received training through:  AgriSETA (2241)  FoodBevSETA (1923)  CASP ( 1254)  FIETA (1800)

15. 15 Programme 4: Food Security and Agrarian Reform cont. KEY ACHIEVEMENTS FOR THE QUARTER:  Departmental inputs and review on the CEDAW and the vegetables starter packs in the 16 houses for victims of Gender-based Violence in areas identified by the Ministry for Women, Children and Persons with Disabilities.  Two colleges (GADI and Elsenburg) are considered operating as centres of rural wealth creation.  National Extension: 222 Community members (212 PDI’s) received training in Q3.  A draft plan has been developed for the implementation of Zero Hunger in South Africa.  5000 households have been supported (provision of seeds and seedlings) for nutrition security.  The pilot report on Integrated Phase Classification for Gauteng has been produced.  The Livelihood Zoning activities have been initiated in the Western Cape.

16. 16 Challenges and Responses To Challenges Sub-Programme: Food Security Target (2010/11)ChallengesCorrective Measure Monitor progress and food insecurity status in the country. Delays in signing lease agreements are still experienced by the directorate due to lack of Ministerial delegations. An interim agreement should be reached with DPW and DAFF on the leasing of state land as it happens on caretakership.

17. 17 Challenges and Responses To Challenges cont Sub-Programme: Sector Capacity Development Target (2010/11)ChallengesCorrective Measure Monitor training support to 10 000 members of communities, including Smallholder farmers and farm workers. Number of drop-outs or beneficiaries who entered for training but did not complete. Workshops took place to outline how sector- funded training programmes should be coordinated, delivered and monitored. NQF Level and competency rate not indicated in some of the reports from provinces (CASP). Only a small portion of youth are registered in scarce and critical study fields. The envisaged Implementation Protocol between DAFF and D:HET will assist in addressing this problem. Audit departmental processes and deliverables aimed at vulnerable groups, youth, subsistence and smallholder producers. Creating an enabling environment for transformation. Strengthening structures such as the Transformation and sub-transformation Units across all stations in DAFF. Participation in short listing and interviews of personnel in the different Directorates.

18. 18 Challenges and Responses To Challenges cont Sub-Programme: National Extension Support Services Target (2010/11)ChallengesCorrective Measure 1 000GADI: FET program terminated due to lack of funds. Several requests for budget reprioritization but unsuccessful up until now. 4The process towards the promulgation of the ATI Bill is moving quite slow. A process to consult the 1st draft Bill internally in the Department is due to commence during the 4th quarter. Monitor the implementation of targeted research and technology development programmes. There may be a slight variation in commencement and conclusion date, due to the delay in finalizing the SLA. Variations will be taken into consideration during review of the projects. Lack of funding.Research planning and proposals should incorporate flexible delivery schedules/timeframes. Completion time of projects affected by external factors, largely natural disasters.

19. 19 Programme 5: Agriculture Production, Health and Food Safety KEY ACHIEVEMENTS FOR THE QUARTER:  Training of animal surveyors (Comprehensive Provincial Breed Survey): Survey was completed in all districts identified in the sample frame, namely: Motheo (302), Xhariep (173), Thabo Mofutsanyana (450), Fezile Dabi (300), Lejweleputswa (212). An average number of 41 surveyors were employed per district.  Milk production and husbandry: A national milk production strategy has been finalized for internal discussion.  Baseline studies: Baseline studies for milk, poultry and pig producers have been completed. An article on the role of pedigree livestock breeders was published in the November edition of SA Stud breeder to highlight the importance of this sector in providing affordable seed stock to the production sector – particularly the emergent production sector.  Cultivar Performance Trials: Cultivar harvesting happened in 20 of the 22 localities.  Production factors in no-till systems: Crop sequencing trials were completed during the quarter under review.  Effect of late maturity alpha amylase in wheat :15 cultivars were assessed.

20. 20 Programme 5: Agriculture Production, Health and Food Safety KEY ACHIEVEMENTS FOR THE QUARTER:  Advisory services on good production practices: Close to 480 farmers and 85 extension officers had been provided with technical advice on production practices of a wide range of crops.  Regulations for wheat and potatoes: Published Regulations in the Government Gazette on 12 November 2010.  Pesticides Policy : Approved by the Minister and on route for gazetting.  Standard Operating Procedure (SOP) for Exporting Rooibos: has been approved and is implemented.  Regulations relating to the ban of the use of chlorpyrifos have been completed.

21. 21 Programme 6: Forestry and Resources Management KEY ACHIEVEMENTS FOR THE QUARTER:  58 jobs created in KZN and an area of 2 000 ha converted through wattle jungle conversions. 70 jobs created through rehabilitation programmes.  Final draft of the Sawlog Strategy produced and will be tabled at Forestry Function Management Committee (FFMC), Forestry Branch and DEXCO in Q4.  SMME framework & strategy developed and approved by FFMC.  Afforestation strategy approved by FFMC and protocols approved by FFMC.  Fuel wood strategy approved by FFMC.  ToRs for transport infrastructure requirements developed and tender advertised.  Partnerships have been developed to fund Forestry Development projects i.e DBSA (Development Bank of South Africa) and National Development Agency.  Draft Strategy endorsed by the Forestry Branch and recommended to ARDSTC for approval. Draft Strategy to be presented to ARDSTC in Q4.

22. 22 Programme 6: Forestry and Resources Management Cont. KEY ACHIEVEMENTS FOR THE QUARTER:  An area of 12 962 ha has been licensed for afforestation, this include applications for Genus exchange.  4 FPA (Fire Protection Associations) registered in the quarter.  A total of 4410 job opportunities were created through Land Care during Q3.  147 Commercial farmers adopted on 40134 ha.  525 Smallholder farmers adopted on 78544 ha.  868 Subsistence farmers adopted on 20281 ha.  The Policy Framework on Irrigation in South Africa was presented at Eastern Cape province during Q3.

23. 23 Challenges and Responses To Challenges Sub-Programme: Forestry Operations and Forestry Management Target (2010/11)ChallengesCorrective Measure 10 targets as reflected in the 2030 Roadmap met. Progress is currently dictated by external dynamics. Awaiting Forest Stewardship Council (FSC) Board approval for the National Certification Standard (NCS). Continue to strengthen the relationship with the Council. Planning phase for assessment completed. Status in the institutional change process creates an uncertain environment for progress. Finalisation of restructuring. Staff shortages result in conflicting priorities.Staff Recruitment.

24. 24 Challenges and Responses To Challenges cont Sub-Programme: Resources Management Target (2010/11)ChallengesCorrective Measure Assess extent of adoption per farmer category and implement programmes to enhance adoption. Time lack after submission to obtain feedback from National Treasury. Strengthen liaison with National Treasury. Review and development of agricultural land protection policy. Long legal process.Engage legal service to fast track the process. 25000Provincial reports inadequate to report accurately on number of green jobs established. Liaise with provincial LandCare project coordinators to ensure reporting on number of green jobs established. Identify vulnerable areas in the sector. Lack of resources (personnel and financial).To request funds for climate change.

25. 25 Programme 7: Marine Fisheries and Coastal Management KEY ACHIEVEMENTS FOR THE QUARTER:  3 Section 21 applications for the transfer of rights received & 3 finalised.  Security and Community project implemented at 5 selected harbours.  Re-activated 3 previously dormant Harbour User Committees.  4 Priority slipway maintenance contracts were initiated in partnership with NDPW (National Dept of Public Works).  About 40% of the Food and Veterinary Office’s (FVO’s) recommendations have been implemented:  Improved communications with laboratories regarding turnaround times and reporting of results.  The end product is being randomly sampled by the NRCS.  Reduced the turnaround time for ASP testing from the date of sampling to the time that the testing is conducted.

26. 26 Programme 7: Marine Fisheries and Coastal Management KEY ACHIEVEMENTS FOR THE QUARTER:  The Liquid Chromatography Mass Spectrophotometer (LCMS) is running in screening mode using the library of biotoxins that has been provided by international experts. Four DAFF officials have received training on the instrument in November 2010.  Assessment of Right Holders (RHs) in Cluster C & D fisheries finalised.  Survey results finalised and being incorporated in letters to RHs.  Hake Resource: Newly revised Operational Management Plan has been developed and implemented. Permit conditions revised and improved for 2010/2011 to take into account ecosystem impacts.  Abalone: Scientific Working Group (SWG) met twice to update data, and refine research strategy.  Diving surveys (FIAS) carried out in Zones A & D and Robben Island.  Sampling of commercial catches ongoing, and of confiscated product, as well as ranched product from Port Nolloth.  Status of resource was reviewed and TAC recommendations were compiled and approved.  Permit conditions reviewed and improved for 2010/2011

27. 27 Programme 7: Marine Fisheries and Coastal Management Cont. KEY ACHIEVEMENTS FOR THE QUARTER:  West Coast Rock Lobster: There was a decrease in the Recreational TAC for 2010/2011 season from 77 days to 44 days, meaning that a 44.16% reduction was implemented.  2.5 % Right holders in the Hake sector investigated.  2.5 % Right holders in the Abalone sector investigated and Section 28 proceeding against 5 infringing abalone rights holders initiated.  2.5 % Right holders in the West Coast Rock Lobster (WCRL) sector investigated and Section 28 proceeding against 1 infringing WCRL rights holder initiated.  2.5 % Right holders in the Squid sector investigated.  20% cases and tip-offs investigated according to Services Standards.  11 Cases registered  12849 Units of abalone seized  19 Units of WCRL seized  One case finalized and Fine of R10 000 and WCRL R190 000 forfeited to the state.

28. 28 Challenges and Responses To Challenges cont Marine Fisheries and Coastal Management Target (2010/11)ChallengesCorrective Measure Implementation of policies.Lack of in-house capacity to finalise small-scale fisheries policy. Approval sought for the appointment of an outside service provider to finalise small-scale fisheries policy. Lack of in-house capacity to process all applications for the transfer of rights. Appointment of more staff in the near future in order to build capacity. 25 % implementation of recommendations. Final approval for principles. Funding. Rollout of road show to release study. Ministerial approval (DAFF & DPW) Submissions prepared for two Ministers. Funding and road shows dependant on outcomes of discussions between Ministers. Achievement of 50% of EU requirements. Lack of phytoplankton monitoring, communication & lab participation. Training for phytoplankton identification, meetings with role-players. 70 % of the fisheries reviewed by cluster. Lack of capacity and time to finalise project.Additional capacity was provided and the project plan deliverables were adjusted. Continuous review of strategy for hake and abalone in respect of research, management and compliance. More funds need to be directed to the gathering of data via the various surveys conducted by the Research Chief Directorate. Standard Operating Procedures being finalised. Lack of synergy between units.Improved coordination and facilitation required. Collective buy-in form all relevant partners.

29. 29 Observations  The department has shown a major progress/ a great improvement towards achieving its set targets. Most programmes are showing positive signs that deliverables will be achieved as planned by the end of the financial year. However, challenges were encountered in some deliverables due to the fact that the approved structure is still yet to be implemented.  However the following must still be highlighted for the period under review:  The current DAFF structure in operation is not aligned to Part four and five of the 2010/11 strategic plan and this is still causing some confusion among programmes.  The unavailability of performance information by certain sub-programmes still persists and more emphasis is still needed in this area.  It is difficult to confirm the actual performance due to a lack of supporting evidence to validate and substantiate the actual performance reported by programmes therefore.  There are difficulties experienced in tracking the progress made on deliverables due to a lack of time-bound milestones.  Non completion of confirmation of annual performance plans for the year under review has resulted in major reporting challenges, therefore proper planning moving forward is advised in order to avoid similar mistakes in the next financial year.  The department is currently on the planning process for 2011/12 financial year.

30. 30 THANK YOU