DAFF Q4 2010/11 REPORT

DIRECTOR – GENERALMr Langa Zita21 JUNE 2011

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PRESENTATION OUTLINE

Overview Highlights of key achievements Challenges/Constraints Conclusion Way Forward

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OVERVIEW

The department presents its Q4 2010/11 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 the department to areas where remedial actions are required.

The department comprises of seven branches/programmes which are:

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CONT…

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.

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HIGHLIGHTS OF KEY ACHIEVEMENTS

The table below reflects on the summary of key achievements during the period under review

All the deliverables were annual targets

Programme Key achievements

1. Administration Fourteen (14) Human Resources Management (HRM) policies were submitted to the Governance and Operational Policy Committee (GOPC) during the period under review. This constitutes almost 90% of the set target.

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Programme Key achievements

1. Administration Micro-agricultural Financial Institutions of South Africa (Mafisa) retailing institutions, disbursed loans to 3 910 clients across the country for various agriculture-related enterprises. This constituted 150% of the set target (2 600) for the period under review and pertains only to loans.

The target for the CASP was exceeded by 194% from the 10% set target of 2 600 farmers. A total of 3 473 subsistence farmers were supported via the Ilima/Letsema projects.

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Programme Key achievements

1. Administration Altogether 100% of the fisheries server migration project was completed, as well as Phases 1 and 2 of the forestry user migration project.

A total of 78% of performance agreements for Senior Management Service (SMS) was submitted by the end of fourth quarter.

2. Policy, Planning, Monitoring and Evaluation

The Monitoring and Evaluation Reporting (MER) framework was approved by the Departmental Executive Committee (DEXCO), published and made available on the departmental intranet.

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CONT…Programme Key achievements

2. Policy, Planning, Monitoring and Evaluation

The Strategic Operational Plan framework was also approved by DEXCO, published and made available on the departmental intranet.

The Strategic plan for the Department of Agriculture, Forestry and Fisheries 2011/12 to 2014/15 was tabled in Parliament. The Service Delivery Improvement Plan (SDIP) for DAFF was completed and published as Annexure 2 in the Strategic plan 2011/12 to 2014/15.

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CONT…Programme Key achievements

3. Economic Development, Trade and Marketing

A feasibility report on the establishment of fresh

produce collation and storage facilities for the IDC,

the Land Bank, the dti and the ECF, with a view to

possible funding was completed during the period

under review.

Furthermore, an agro-logistics model, aimed at

facilitating the efficient transpiration of forestry and

agricultural products, was developed.

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Programme Key achievements

3. Economic Development, Trade and Marketing

Based on preliminary data for the calendar year

2010, some 43% of agriculture exports was exported

to markets other than the EU and SADC. Again

based on preliminary data for the calendar year

2010, some 57% of agricultural exports was

exported to the EU and the SADC—the two biggest

destinations for South African agricultural exports.

39 sustainable rural cooperatives (agriculture,

forestry and fisheries) were established during the

period under review.

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Programme Key achievements

3. Economic Development, Trade and Marketing

The AgriBEE Fund MoA between DAFF and the

Land Bank was signed by both parties and

expectations are that the disbursement of the fund

will resume in Quarter 1 of the 2011/12 financial year.

In addition, the department facilitated a BEE deal in

the vineyard industry between historically

disadvantaged entrepreneurs and the present white

owner of a wine distillery (Northside Distributors (Pty)

Ltd) in Ventersdorp, in the North West Province.

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Programme Key achievements

4. Food Security and Agrarian Reform

Draft Food Security Policy was completed. Draft Zero Hunger Strategy and implementation plan was also completed.

A total of 1 388 have been monitored in the provinces for the period under review.

A total of 973 Youth received training in various skills at colleges of agriculture.

A total of 7 250 Youth received training at:• AgriSETA: 604• FoodBev: 770• FIETA: 705• CASP: 800• GADI: 40 community members trained and 38 PDI’s

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Programme Key achievements

5. Agriculture Production, Health and Food Safety

Gariep aquaculture facility’ construction was completed.

Two Feedlot facilities were established at Blouberg local municipality together with Limpopo Department of Agriculture and the other one with Eastern Cape Department of agriculture

Research solution on wheat production and cultivar were completed and distributed to 6000 producers.

All data from National Cultivar Evaluation Programme in the different production regions were processed and reports were finalised and accepted by National Cultivar Evaluation Workgroup

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Programme Key achievements

5. Agriculture Production, Health and Food Safety

The cotton strategy was finalised and endorsed by stakeholders in the cotton industry and major progress was achieved in terms of reviewing both the grain and fruit strategies.

Pesticides Policy was approved by the Minister and has been gazetted.

6. Forestry and Resources Management

A total of 492 green jobs were created via Forestry Livelihood Strategy: 292 in Kwazulu Natal and 200 in Limpopo

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Programme Key achievements

6. Forestry and Resources Management

The Integrated Forest Protection Strategy was developed and approved by the Forestry Branch Management Committee.

A total of 2 414 green jobs were created via the LandCare Programme (FS: 112; EC 543; GP: 100; MP:37;WC 92; LP: 1 254; KZN:50 and NW: 101)

A total of 165 commercial farmers on 45 213 ha of land, 885 smallholders on 20 412 ha and 795 subsistence farmers on 21 287 ha adopted best land use practices

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Programme Key achievements

7. Fisheries Management The hake recovery strategy yielded good results and there are definite signs that the stocks are increasing—albeit at a slower rate

The latest Standardised Catch per Unit (CPUE) showed an overall increase at both the South and West Coasts.

Some 2,2% (53) of rights holders in the hake sector was investigated and 5,3% (124) rights holders in the squid sectors as well as 1,3% (31) rights holders in the line fish sector

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CONSTRAINTS/CHALLENGESProgramme 3: Economic Development, Trade and Marketing

Sub-Programme: AGRO-PROCESSING AND MARKETING

Measure/Indicator Target (2010/11)

Challenges Corrective Measure

Increased share of

agricultural, forestry and

fisheries products handled

through additional

investment in storage

capacity

31,8 mt There was limited public and private

investment in storage facilities to support

smallholder farmers who experienced

limited or no access to storage

infrastructure in the agricultural and forestry

sectors.

Submitted requests to the Land Bank, the IDC,

the Development Bank of Southern Africa

(DBSA) and the ECF for possible financial

support.

An increased share of

agricultural, forestry and

fisheries products processed

via additional investment

37 mt There was limited public and private

investment in processing to support

smallholder farmers who experienced

limited or no access to processing facilities

infrastructure in the agricultural and forestry

sectors

Submitted requests to the Land Bank, the IDC,

the DBSA and the ECF for possible financial

support

Increased share of

agricultural and forestry

products transported through

rail

15,6 mt

transported on

rail

Transnet Freight Rail (TFR) does not see

agriculture and forestry freight as important

compared to other commodities such as

coal and platinum hence low share of

agriculture and forestry freight to total

freight moved by TFR.

The Department is in continuous discussions

with the Departments of Transport and Public

Enterprises as well as TFR to get more

agricultural and forestry products transported

through rail.

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Sub-Programme: COOPERATIVES AND RURAL ENTERPRISE DEVELOPMENT

Measure/Indicator Target (2010/11)

Challenges Corrective Measure

Number of BEE deals

accessed

12 Delays in the signing of the AgriBEE Fund

MoA between DAFF and Land Bank

The AgriBEE Fund MoA between DAFF and

Land Bank has now been signed by both

parties and it is expected that the

disbursement of the fund will resume in Q1 of

the new 2011/12 financial year.

Value of BEE deals

accessed (R/c)

R 48 610 000 Delays in the signing of the AgriBEE Fund

MoA between DAFF and Land Bank

The AgriBEE Fund MoA between DAFF and

Land Bank has now been signed by both

parties and it is expected that the

disbursement of the fund will resume in Q1 of

the new 2011/12 financial year.

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CONCLUSION

The 2010/11 was one of the most challenging year that the department had to go through; adapting to the new mandate, restructuring of the department and the late placements of SMS in new established units. The overall performance of the department was therefore influenced by these factors.

The other challenge was that the current DAFF structure in operation was not aligned to Part four and five of the 2010/11 strategic plan

The department did in overall show major progress towards achieving its set targets.

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WAY FORWARD

The new structure was fully implemented with effect from 01 April 2011

Planning processes for 2011/12 was concluded with more emphasis around contribution to Presidential Outcomes: 4, 7 & 10 .

The department is working on aligning and standardizing all M&E responsibilities incl. reporting and verification in DAFF PDA’s and SOE’s.

DAFF is also working with PDAs to improve quality on performance information.