PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES

PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES PRESENTATION ON OUTSTANDING ISSUES 13 June 2017

CONTENTS Forestry and Natural Resources Management Food Security and Agrarian Reform Animal Production, Health and Food Safety Revitalisation of Agriculture and Agro-processing Value Chain Chief Financial Officer Policy, Planning, Monitoring and Evaluation Fisheries Management Portfolio Committee on Agriculture, Forestry and Fisheries reports recommendations on the Onderstepoort Biological Products and the Agricultural Research Council

FORESTRY AND NATURAL RESOURCES MANAGEMENT Boreholes The presentation and report on the status on Boreholes was submitted to the Portfolio Committee on Agriculture, Forestry and Fisheries in March 2017. The report (Annexure A1) and presentation (Annexure A2) is attached.

FORESTRY AND NATURAL RESOURCES MANAGEMENT Forestry Bills Ensure that all relevant stakeholders that will be required to take responsibility for the implementation of the Forestry Bills are consulted e.g. Department of Environmental Affairs (DEA) in the National Forests Amendment Bill and the South African Local Government Association (SALGA), the Department of Public Works and Department of Defence and Military Veterans in the Veld and Forest Fire Amendment Bill. Response from the Department of Agriculture, Forestry and Fisheries • The Department of Agriculture, Forestry and Fisherieshas extensively consulted with the Department of Environmental Affairs on the National Forest Amendment Bill. • The Department of Agriculture, Forestry and Fisheries is awaiting further guidance from the Portfolio Committee on Agriculture, Forestry and Fisheries on the National Forest Amendment Bill and the Veld and Forest Fire Amendment Bill.

FORESTRY AND NATURAL RESOURCES MANAGEMENT Appeals Relook and rectify the clause on the appeals process for people aggrieved by the decisions taken by the Minister and/or the Minister’s delegated authority in both Forestry Bills. Response from the Department of Agriculture, Forestry and Fisheries The Department of Agriculture, Forestry and Fisheries awaits the guidance of the State Law Advisors (SLA), and will report back to the Portfolio Committee on Agriculture, Forestry and Fisheries.

FORESTRY AND NATURAL RESOURCES MANAGEMENT Climate change and Climate Smart Agriculture The Department of Agriculture, Forestry and Fisheries and the Department of Environmental Affairs should ensure that policies on climate change and climate smart agriculture are coherent, well-coordinated and effectively implemented for the benefit of the country and by extension, the region. The two Departments should jointly present to the Committee, a progress report on the implementation of climate change adaptation plans and progress towards the Paris Agreement in the next term. Response from the Department of Agriculture, Forestry and Fisheries The presentation progress report is attached (Annexure B).

FORESTRY AND NATURAL RESOURCES MANAGEMENT The Department of Agriculture, Forestry and Fisheries should work closely with the Food and Agriculture Organisation of the United Nations (FAO) to ensure that the integration of water resource management is prioritised within the country and across the region. Response from the Department of Agriculture, Forestry and Fisheries The Department will collaborate with the FAO through the Department of Water and Sanitation as the lead Department on Integrated Water Resource Management National Drought Indaba • Submit to Committee Report on the Resolution of the National Drought Indaba that was held in September 2016. Response from the Department of Agriculture, Forestry and Fisheries • The report on the resolutions of the National Drought Indaba is attached (Annexure C).

FOOD SECURITY AND AGRARIAN REFORM NCERA Present a detailed report on the corrective measures that will be taken against the Chief Executive Officer (CEO) of Ncera Farms (Pty) Ltd for the 51% salary increase that he gave himself during the 2015/16 financial year. Response from the Department of Agriculture, Forestry and Fisheries The investigation has established that the awarding of the salary was irregular and therefore it be will be adjusted in line with the directive of the Minister of Public Service and Administration on cost of living adjustment for Senior Management Service members. The internal investigation has been conducted by the Employee Relations unit of the Department of Agriculture, Forestry and Fisheries and the report has been referred to the State Attorney for implementation of labour related recommendations.

FOOD SECURITY AND AGRARIAN REFORM Update on the deregistration of Ncera Farms (Pty) Ltd The updated document (Annexure D1) and presentation (Annexure D2) is attached.

FOOD SECURITY AND AGRARIAN REFORM Consider the reporting procedure by Provinces on Conditional grants to ensure that they report directly to the Department of Agriculture, Forestry and Fisheries, which disburses the grants to Provinces. Response from the Department of Agriculture, Forestry and Fisheries • The Provincial Departments, according to the Division of Revenue Act, are required to provide monthly financials, quarterly performance and annual performance reports to the Department of Agriculture, Forestry and Fisheries . The Department of Agriculture, Forestry and Fisheries receives these reports on a monthly, quarterly and annual basis from the Provinces.

FOOD SECURITY AND AGRARIAN REFORM The Department of Agriculture, Forestry and Fisheries and the Department of Planning, Monitoring and Evaluation provide the Committee with the detailed copy of the draft report on Food and Nutrition Security Implementation Plan including the 2016 evaluation report (Annexure E). Response from the Department of Agriculture, Forestry and Fisheries Update the Portfolio Committee on Mechanisation Policy. An update on the Mechanisation Policy is attached (Annexure F)

ANIMAL PRODUCTION, HEALTH AND FOOD SAFETY Research and feasibility on Hemp The Department of Agriculture, Forestry and Fisheries to lead and coordinate its entities such as the Agricultural Research Council (ARC) and National Agricultural Marketing Council (NAMC) including other relevant Departments and the private sector to compile a comprehensive report on research and feasibility studies that have been done on hemp in the country. The report should also include challenges and proposals on a way forward. The inter-departmental group should present the report to the Portfolio Committee by the end of April 2017. Response from the Department of Agriculture, Forestry and Fisheries The Department of Agriculture, Forestry and Fisheries had consolidated all the work done by ARC, NAMC and other stakeholders and compiled one integrated report. Meetings were also held with Department of Health, Department of Justice, and SAPS as well as the ARC, CSIR and NAMC to chart the way forward on a comprehensive regulatory framework for hemp. Areas that needs to be amended in the affected legislation had been identified. The report (Annexure K1) and presentation (Annexure K2) is attached.

ANIMAL PRODUCTION, HEALTH AND FOOD SAFETY Update the Committee on the registration of Animal Health Technicians with the South African Veterinary Council (SAVC) and the Department of Agriculture, Forestry and Fisheries communication channels to stakeholders on notifiable animal diseases. Response from the Department of Agriculture, Forestry and Fisheries Animal Health Technicians (AHTs) are registered with the South African Veterinary Council (SAVC) under the Veterinary and Para-Veterinary Professions Act, 1982. There is a number of Animal Health Technicians who cannot be registered with the SAVC because their qualifications are not recognised by the SAVC for automatic registration as AHT. The SAVC allowed them to undergo an 18 months programme at Tsolo College of Agriculture in order to be able to be registered upon successful completion of the programme. Eighty two Tsolo students sat the SAVC examination during 2016.

ANIMAL PRODUCTION, HEALTH AND FOOD SAFETY Thirty students passed the examination. Fifty three students have to rewrite the examination at their own cost. In order to accommodate the students, Council has resolved that it will halve the examination fee, as it did in 2016, and that the examination will be conducted in the Eastern Cape again in order to save the students travelling costs. The examination will take place during September 2017. The Department of Rural Development and Agrarian Reform (Eastern Cape) has paid the student’s fees for the 2016 Council examination, but has indicated that it will not do so again.

ANIMAL PRODUCTION, HEALTH AND FOOD SAFETY Regulation of traditional African Beer Relook at the regulation of traditional African beer and its variants that are produced for sale for inclusion in the Liquor Products Amendment Bill. (June 2017) Response from the Department of Agriculture, Forestry and Fisheries • The Liquor Products Amendment Bill is currently before the National Assembly more specifically, the Portfolio Committee on Agriculture, Forestry and Fisheries. The Bill has included the provision regarding the regulation of African beer and its variants which are produced for sale purposes. Ensure that funding to address climate change, disease/pest outbreaks and commercialisation of smallholder farmers form part of its 2017/18 Annual Plans. • Response from the Department of Agriculture, Forestry and Fisheries Provision was made for the prevention and mitigation of disaster risks for an amount of R52.6 million for the 17/18 financial year.

ANIMAL PRODUCTION, HEALTH AND FOOD SAFETY Training of Extension Workers on Fall Armyworm The Department of Agriculture, Forestry and Fisheries should ensure that workshops are arranged to train extension officers in all provinces on the Fall Armyworm so that they can effectively assist farmers in dealing with the outbreak. Response from the Department of Agriculture, Forestry and Fisheries Fall Armyworm (FAW) is managed through integrated role player involvement. A Fall Armyworm Steering Committee (FAWSC) was initiated and is chaired by Plant Health Early Warning systems. The FAWSC members include representatives from the pesticide industry, seed industry and grain industry, all nine provinces and directorates Plant Health, Inputs Control, Inspection Services and Food Import Export Standards and research organisations

ANIMAL PRODUCTION, HEALTH AND FOOD SAFETY Maize is the main host of this pest and most provinces are not producing maize over the winter months so the FAWSC meets during the outbreak period on a weekly basis and during winter on a monthly basis. During the past months, regular extension support awareness and training meetings were arranged by the provincial departments. The Department of Agriculture, Forestry and Fisheries officials attend these workshops to provide information and training. Furthermore an action group was formed to develop training material to train experts in provinces on how to identify FAW. These experts will then train extension support personnel. It was also identified that specific training for scouting, surveillance and damage assessment will be developed and provided in the same manner. The Directorate Food Import Export Standards from the Department of Agriculture, Forestry and Fisheries is mainly driving these awareness and training sessions with regard to FAW and would have available past schedules regarding this.

ANIMAL PRODUCTION, HEALTH AND FOOD SAFETY The Department of Agriculture, Forestry and Fisheries should interact with the different provinces to determine their rescue efforts for struggling poultry companies in order to save jobs. The Department of Agriculture, Forestry and Fisheries should report back to the Committee on interventions and/or how it plans to assist the poultry industry. Response from the Department of Agriculture, Forestry and Fisheries The Department of Agriculture, Forestry and Fisheries has been through the Directorate : Animal Production, capacitating farmers with the relevant skills to manage their businesses and sustain them. Through this initiative, farmers have been exposed to the latest technology and industry roleplayers.

REVITALISATION OF AGRICULTURE AND AGRO-PROCESSING VALUE CHAIN The Department of Agriculture, Forestry and Fisheries should brief the Committee about issues surrounding the Court Case between the South African Pork Producers Organisation (SAPPO) and the Department of Agriculture, Forestry and Fisheries regarding the bypassing of the Veterinary Procedural Notice (VPN) route for United States pork shoulder cuts. Response from the Department of Agriculture, Forestry and Fisheries The matter relates to the African Growth Opportunity Act (AGOA). There is no bypassing of a VPN as we argued in our court papers. The Department of Agriculture, Forestry and Fisheries should ensure that the APAP-linked Roundtable discussions on the Poultry Value Chain resume to ensure the development and sustenance of the industry. Response from the Department of Agriculture, Forestry and Fisheries The Poultry Industry has indicated willingness to partake in a Poultry Value Chain Roundtable. Through the RAAVC and grant based programmes (CASP and RECAP), there is a list of projects per province to revitalise the Industry.

CHIEF FINANCIAL OFFICER Update the Committee on the Integrated Development Funding Model The document on the Integrated Development Funding Model is attached (Annexure G).

CHIEF FINANCIAL OFFICER EQUITABLE SHARE 21

POLICY, PLANNING, MONITORING AND EVALUATION In all future briefings on Annual Performance Plans (APPs) and Quarterly Reports, the Department of Agriculture, Forestry and Fisheries should ensure that they present service delivery impact of its interventions Response from the Department of Agriculture, Forestry and Fisheries The Department of Agriculture, Forestry and Fisheries has Strategic Objectives Indicators with a 5 year target. • The Strategic Objectives Indicators pre-determines what would be achieved over the medium term. The set targets are intended to be achieved quarterly and annually. Over the medium term the annual targets will be aggregated to five year target Service delivery impact of interventions will be determined by the five year target of strategic objective indicator.

POLICY, PLANNING, MONITORING AND EVALUATION When the Department of Agriculture, Forestry and Fisheries is presenting its Strategic and Annual Performance Plans in the next term, it should ensure that those issues from Operation Phakisa that were reported as being part of the Plans, and will be implemented in the coming financial year, are identified with time-frames. Response from the Department of Agriculture, Forestry and Fisheries

POLICY, PLANNING, MONITORING AND EVALUATION Include in its Annual Performance Plans (APPs), Strategic Plan and Annual Report Presentations, impact of their interventions and/or plans on service delivery, sector development and transformation. Response from the Department of Agriculture, Forestry and Fisheries Development of regulations to enforce AgriBEE sector codes Enabling environment for food security and sector transformation through: • Coordination and implementation of the National Policy on Food and Nutrition Security • Increasing the number of households benefiting from food and nutrition security initiatives • Supporting smallholder producers and cultivating underutilised land in communal areas for production.

POLICY, PLANNING, MONITORING AND EVALUATION Improve delivery capacity in support of sustainable growth in the sector through: • Implementation of the National Agriculture, Forestry and Fisheries Training and Education Strategy, • National Policy on Extension and Advisory Services, as well as deploying extension support practitioners to commodity organisations

POLICY, PLANNING, MONITORING AND EVALUATION FARMER REGISTER The milestones reached: We have a functional Technological Farmer Register system, well aligned with a completed Questionnaire, which due to delays by the Departmental Information Technology Committee (DITC) capacity, it’s not well aligned with provincial needs, therefore is causes delays in capturing especially now since February 2016. We created sufficient awareness amongst provinces even though there is not satisfactory support from Senior Management in DAFF to enforce this within the Provincial Heads so that they accept responsibility of the activities involved. Use of Extension in the field. We completed the Capricorn District Pilot in 2012 and a report is available.

POLICY, PLANNING, MONITORING AND EVALUATION

FISHERIES MANAGEMENT Amagagasoshintsho Provide an explanation on why Amagagasoshintsho was appointed on the 01 April 2016, 3 months before the expiry of the KZN Ezemvelo Wildlife contract while a month after the appointment has been made, the DDG of Fisheries reported and assured the Committee on 24 May 2016, that DAFF will no longer use service providers to service smallscale fishers in KZN but will open an office and appoint a Deputy Director and other officials to handle fisheries issues in KwaZulu-Natal. A full explanation should be submitted and presented to the Committee by March 2017. Response from the Department of Agriculture, Forestry and Fisheries DAFF entered into an MoU with KZN Ezemvelo Wildlife (KEW). Under this umbrella agreement, many projects were undertaken under separate agreements with certain chief directorates, including Compliance with Monitoring, Compliance and Surveillance, Research with Fisheries Research and Development, and catch data monitoring and implementation of small-scale fisheries with Marine Resources Management. The latter was a separate project funded under the Extended Publics Work Programme (EPWP). DAFF was instructed that the latter project should be immediately terminated with KZN Ezemvelo Wildlife.

FISHERIES MANAGEMENT (continuation) Before the project was terminated, a process was conducted under the EPWP to appoint an implementer that could take over the work from KEW. The EPWP contract with KEW was terminated on the 31 March 2016 and Amagagasoshintsho was appointed as the new implementer on 1 April 2016, while the other contracts with KEW were terminated later in 2016. Ensure that the contract with Amagagasoshintsho is terminated as a matter of urgency and also provide the rationale for appointing the company with EPWP funding while DAFF have previously assured the Committee that they will be opening an office in KwaZulu-Natal. Report to the Committee by March 2017. Response from the Department of Agriculture, Forestry and Fisheries The Department is still trying to find an amicable and workable way to resolve Amagagasoshintsho contract as requested by the Portfolio Committee.

FISHERIES MANAGEMENT Present to the Committee a two-page report with timeframes on how the Department is going to address the grievances from smallscale fisheries stakeholders and implement the proposals it has made. Submit report by March 2017. The response is attached as Annexure L.

PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES REPORTS RECOMMENDATIONS ON ONDERSTEPOORT BIOLOGICAL PRODUCTS AND THE AGRICULTURAL RESEARCH COUNCIL OnderstepoortBiological Products (OBP) Ensure that a strong business case and funding requests are submitted to National Treasury for the OBP, which is a National Key Point, to get the necessary funding to fully upgrade and modernise its facilities; and a specific grant to enable OBP to assist smallholder farmers. Report to the Committee by April 2017. Ensure that a meeting is arranged in the next term between the Department of Agriculture, Forestry and Fisheries, National Treasury and Parliamentary Committees on Finance and Agriculture, Forestry and Fisheries to discuss National Treasury Regulations (e.g. TR10) that constrain the ability of provinces to procure vaccines from OBP. With the TR10 tender system, the OBP gets disadvantaged in terms of pricing as it has to compete with companies that do not manufacture vaccines but sell imported tariff-free pharmaceuticals. The response from the OBP is attached (Annexure H).

AGRICULTURAL RESEARCH COUNCIL • DAFF and the ARC should submit to the Committee the copy of the submission for additional funding to the National Treasury for the FMD facility by April 2017. • The documents are attached (Annexure I). • The Agricultural Research Council should submit to the Committee a maintenance plan including responsible personnel for the new incinerator by April 2017. • The documents are attached (Annexure J).

ACRONYMS APAP - Agricultural Policy Action Plan APP - Annual Performance Plan ARC - Agricultural Research Council CASP - Comprehensive Agricultural Support Programme CEO - Chief Executive Officer DITC - Departmental Information Technology Committee DAFF - Department of Agriculture, Forestry and Fisheries DDG - Deputy Director General DEA - Department of Environmental Affairs EXCO - Executive Committee EPWP - Expanded Public Works Programme FAO - Food and Agriculture Organisation of the United Nations FAW - Fall Armyworm FAWSC - Fall Armyworm Steering Committee

ACRONYMS KEW - KwaZulu-Natal Ezemvelo Wildlife KZN - KwaZulu-Natal MINMEC - Minister and Member of the Executive Council NAMC - National Agricultural Marketing Council OBP - Onderstepoort Biological Products PPECB - Perishable Products Exports Control Board RECAP - Recapitalisation and Development Programme RAAVC - Revitalisation of Agriculture and Agro-processing Value Chain SALGA - South African Local Government Association SAPPO - South African Pork Producers Organisation SLA - State Law Advisors SAVC - South African Veterinary Council VPN - Veterinary Procedural Notice

PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES