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DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES SUMMARY OF QUARTER 1 PRELIMINARY ORGANISATIONAL PERFORMANCE FOR 2016/17. PRESENTATION TO THE PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES 13 SEPTEMBER 2016. PRESENTATION OUTLINE. ACRONYMS POLICY AND STRATEGIC ALIGNMENT
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DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES SUMMARY OF QUARTER 1 PRELIMINARYORGANISATIONAL PERFORMANCE FOR 2016/17 PRESENTATION TO THE PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES 13 SEPTEMBER 2016
PRESENTATION OUTLINE ACRONYMS POLICY AND STRATEGIC ALIGNMENT SUMMARY OF DAFF QUARTER 1 (2016/17) PERFORMANCE 3. PERFORMANCE PER PROGRAMME Programme 1: administration Programme 2: agricultural production, health and food safety Programme 3: food security and agrarian reform Programme 4: trade promotion and market access Programme 5: forestry and natural resource management Programme 6: fisheries management 4. STATE OF EXPENDITURE
ACRONYMS AFF - Agriculture, Forestry and Fisheries AG - Auditor-General APHFS - Agricultural Production, Health and Food Safety CAADP - Comprehensive African Agricultural Development Programme CASP - Comprehensive Agricultural Support Programme CBS - Citrus Black Spot CCS - Compulsory Community Service CFO - Chief Financial Office COMESA - Common Market for Eastern and Southern Africa DAFF - Department of Agriculture, Forestry and Fisheries DORA - Division of Revenue Act DRDLR - Department of Rural Development and Land Reform EAC - East African Community EC - European Commission EIA - - Environmental Impact Assessment EFSA - European Food Safety Agency EU - European Union FM - Fisheries Management FNRM - Forestry and Natural Resources Management FSAR - Food Security and Agrarian Reform FTA - Free Trade Agreement FTE - Full Time Equivalent
ACRONYMS ..… GAP - Generally Accepted Principles IDC - Industrial Development Cooperation MFN - Most Favoured Nation MLRF - Marine Living Resource Fund MoU - Memorandum of Understanding NAMC - National Agricultural Marketing Council NEDLAC - National Economic Development and Labour Council ODG - Office of the Director-General PDA - Provincial Department of Agriculture PDALF - Preservation and Development of Agricultural Land Framework PPECB - Perishable Products Exports Control Board PPME - Policy, Planning and Monitoring and Evaluation SACU - South African Customs Union SADC - Southern African Customs Union SA-GAP - South African Good Agricultural Practices SAMSA - South African Maritime Safety Association SAPA - South African Poultry Association SDP - Service Delivery Plan SIP - Strategic Infrastructure Projects SSA - State Security Agency TPMA - Trade Promotion and Market Access thedti - the Department of Trade and Industry
POLICY AND STRATEGIC ALIGNMENT NGP (New Growth Path) MTSF (Medium-Term Strategic Framework) NDP (National Development Plan) Outcomes 4, 7 and 10 • The Nine Point Plan • Revitalisation of Agriculture and Agro-processing Value Chains • Fast Tracking Land Reform • Market Access • Producer Support • Production • 145,000 new jobs in agro-processing by 2020 • 300 000 new smallholders • Increase % ownership of productive land by PDIs from 11.5% (9.40m ha) to 20% (or 16.2 m ha) by March 2019. • Reduction of rural unemployment from 49% (2013) to 40%, by 2019 • Improved land administration and spatial planning • Fast tracking Land Reform • 1 million additional sector jobs • 1 million hectares under production • Food Security • Land under irrigation • Agricultural Policy Action Plan • Nine prioritised commodity value chains • Transversal Indicators
PROGRAMME 1 – HUMAN RESOURCE ISSUES As at 30 June 2016 the post establishment of the Department totalled 6 198 posts. During the period under review, the vacancy rate of the department increased from 10% to 10.4%. During the period under review eight (8) employees were appointed/promoted to the SMS cadre. Fourteen (14) SMS posts were advertised in the media during the period under review, 3 SMS posts were short listed and 3 interviews were conducted, including the interview for the vacant position of Director-General which took place on 6 May 2016 and Cabinet concurred with the appointment of the Director-General on 8 June 2016. Challenges that contribute to the increase in the vacancy rate is the budget constraint on the compensation of employees; the delays in the filling of vacancies as a result of grievances as well as delays in the verification of citizenship and criminal checks by the State Security Agency (SSA). In terms of the National Vetting Strategy, it is required that a candidate must be subjected to specific personnel suitability checks before an appointment can be made).
PROGRAMME 1 - HUMAN RESOURCE ISSUES ..… Employment Equity • Gender distribution at SMS level is 43% female and 57% male. • Gender distribution across whole of DAFF is 46% female and 54% male. • Disability status across DAFF is 1,02%. • The Department is well on track to achieving 50/50 gender target and 2% disability target by 2030.
PROGRAMME 1 – FINANCIAL ISSUES Chief Financial Office The annual financial statements for 2015/16 were submitted to National Treasury and the Auditor-General on 31 May 2016. The Auditor-General is currently busy with the annual audit of DAFF. MAFISA – R2,9 million disbursed to 294 beneficiaries and R4,98 million was collected as MAFISA loan repayments. A total of 1 619 jobs were created during Q1. DAFF revenue collected for services rendered and forestry products sold until 30 June 2016, amounted to R48,9 million against R51,1 million for Q1 of 2015/16. 92,5% of payments to suppliers were made within 30 days.
AUDITOR-GENERAL’S REPORT FOR 2015/16 A “clean” or unqualified opinion - information provided presents a fair and accurate picture and complies with generally accepted principles (GAP). A qualified opinion - information provided is limited in scope and/or GAP accounting principles have not been maintained.
PROGRAMME 2 - APHFS Animal Improvement Schemes In terms of animal improvement schemes for prioritised value chain commodities, Kaonafatso ya Dikgomo and Poultry schemes were monitored; - Over 50 poultry farmers participated at the annual AVI-Africa Conference in Johannesburg. - The MoU between DAFF and SAPA on the poultry scheme has been compiled. Compulsory Community Service (CCS) 124 applications received from final-year veterinary students at the University of Pretoria wishing to participate in the 2017 CCS programme. Animal Health Care In terms of Primary Animal Health Care, the plan to procure 32 primary animal health care clinics (LDVs) is progressing well, although the project has been severely affected by budget cuts.
PROGRAMME 2 – APHFS ..… Animal Disease Surveillance Two planned animal disease surveillances [Avian Flu and Peste des Petits Ruminants (PPR)] were conducted to detect, prevent and mitigate entry, establishment or spread of these diseases. - South Africa is currently free from Highly Pathogenic Avian Influenza and is able to export Ostrich meat to the EU. Veterinary Strategy The legal implications of the veterinary strategy were compiled with allocation of responsibilities in relation to the veterinary strategy being completed. Regulatory Interventions Report on regulatory interventions implemented (quarantine, inspections, surveillance and testing) was compiled.
PROGRAMME 2 – APHFS ..… Exotic Fruit Fly Surveillance During Q1 the plant pest surveillance for exotic fruit flies continued. Surveillance of the quarantine pest Bactrocera dorsalis was interrupted due to funding constraints. The pest is present and subject to official control in Limpopo, Mpumalanga and North West. In Gauteng its present only seasonally, and in KZN its present in low prevalence. Plant Conservation/Improvement Schemes In terms of the National Plan for the Conservation and Sustainable Use of Plant Genetic Resources, an inventory on the current status of national plant genetic resources was developed, and a community-based conservation organisation for indigenous goats was established in Limpopo. The monitoring of plant legislated certification and improvement schemes for prioritised value chain commodities focused on the seed and fruit schemes with a total of 21 units being registered in Q1. These schemes are aimed at ensuring that farmers use good quality propagation material in support of increased production and productivity.
PROGRAMME 2 – APHFS ..… SPS Measures Import Requirements South Africa is in the process of implementing revised import requirements for cattle, sheep and goats from Botswana, Lesotho, Namibia and Swaziland, effective from 1 July 2016. The SOP for the import of cattle, sheep and goats for direct slaughter/feedlot purposes from the relevant countries was discussed at a meeting between the stakeholders and the Minister in May 2016. Citrus Black Spot Interdepartmental activities and technical communication with the EU continued on the issue of CBS, specifically seeking relief from the phytosanitary import requirements, which South Africa considers to be technically unjustified. During Q1 the new EU import requirements were published, which South Africa has to comply with in the current export season; the latest European Food Safety Authority (EFSA) opinion published in May 2016, supports the previous EFSA opinion on CBS published in 2014, namely that commercial citrus fruit presents a risk to the EU. In line with a Cabinet decision, the Ministers of AFF and the Department of Trade and Industry had requested the relevant directorates in the EC for further technical discussions on the CBS issue.
PROGRAMME 3 - FSAR Food Security Food prices for a basic food basket increased by 16,4 % from R516 to R601 between April 2015 and April 2016, by 16,0% from R519 to R602 from May 2015 to May 2016, and by 15,6% from R516 to R597 from June 2015 to June 2016 (NAMC Food Price Monitor). Producer support Draft 3 version 1 Policy on Comprehensive Producer Development Support has been developed. It was consulted with the commodity associations. 37 of targeted 120 boreholes for drought relief drilled in North West province. Fencing guideline completed and norms and standards developed, which will be shared with Provinces and DRDLR.
PROGRAMME – FSAR ..… Producer support….. A list of 263 prospective smallholders to supply Tiger Brands was compiled in line with the DAFF-Tiger Brands initiative. 63 producers have already signed offtake agreements with Tiger Brands (34 in Limpopo, 14 in North West and 15 in the Western Cape). CASP Monitoring CASP and Ilima/Letsema Q4 performance review meeting for 2015/16 was held with Provinces on 11-13 May 2016 to validate reported information and the report has since been submitted on the 5th May 2016, as prescribed by Division of Revenue Act (DORA). DAFF received an allocation from National Treasury for 2016/17 financial year in order to increase its capacity for project management, monitoring and reporting. Governance activities which includes signing agreements with provinces; framework discussions have been concluded.
PROGRAMME 3 – FSAR ..… Extension Practitioners Draft implementation guide for the deployment of extension practitioners was developed and consulted with PDAs through the Public Sector Forum for Extension and Advisory Services. The national policy on extension and advisory services to be tabled on 19 August 2016 at the Cabinet Committee on Economic Sectors, Employment and Infrastructure Development. National policy on corporate wear / uniforms for extension practitioners and its implementation plan was endorsed and adopted by MinTech in April 2016. Baseline report on configuration of provincial extension directorates has been developed.
PROGRAMME 3 – FSAR ..… Graduate and Youth Programmes Profiles of 2016 completing bursary holders compiled in May 2016, and distributed to all Directors within DAFF and sector partners for possible appointment after completion to ensure return on investment. 12 DAFF-China scholarship students graduated with MSc degrees in June 2016 from Jilin Agricultural University (5) and China agricultural University (7) in animal science, plant production, agricultural economics, clinic veterinary science, plant pathology, animal nutrition and feed science. 22 graduates recruited and deployed to sector organisations and companies. 25 graduates deployed with the PPECB. 8 graduates placed on 3 approved farms for agricultural graduates, namely Waldburg in Limpopo; ZonOnder farm in the Northern Cape; and Arnold farm in KZN.
PROGRAMME 3 – FSAR ..… Graduate and Youth Programmes….. 175 agricultural graduates recruited and deployed to 120 farms. The young producers and entrepreneurs strategy was approved by the Departmental EXCO. Education and Training National Education and Training forum for AFF was established and will give effect to the implementation of the national education and training strategy for DAFF. First meeting of the forum took place in Q1 where members were orientated and sub-committees for the implementation of the strategy were established.
PROGRAMME 4 - TPMA Market Access The following programmes are implemented to facilitate market access support for small producers and processors: - Enterprise and supplier development; - SA-GAP and marketing infrastructure; - Codes of best practice for fresh produce markets; - Agro-processing infrastructure. Through the success of the enterprise and supplier development programme in connecting processors to retailers, Woolworths and IDC have committed to support the establishment of a wet-pet food manufacturing plant – Woolworths with a 5-year off-take agreement worth R180m and IDC with a R35m loan for operational costs. The capital costs are under consideration through the AgriBEE Fund. This programme is also supported by SA-GAP with PPECB and the programme with SABS to train processors in the HAACP certification system to control all potential hazards in the processing system. Q1 saw 16 processors trained on HAACP and 40 processors trained in basic practices skills of production; extraction, separation and batch processing..
PROGRAMME 4 – TPMA ..… Market Access….. The marketing and agro-processing unit is supporting Agri-Parks and Special Economic Zones (thedti) and an appraisal template was developed in partnership withthedtiand DRDLR to evaluate the current status of Agri-Parks and future development opportunities. The codes of best practice for fresh produce markets, which are supported by the above efforts, are gaining momentum with 3 more produce markets implementing the codes, namely Vereeniging, Bloemfontein and Kimberley. Three new cooperatives were established, two to support collective marketing and bulk buying of inputs and the third to support the access to processing facilities. Members of 18 existing cooperatives were trained on the ‘FARMtogether’ programme and business planning guidelines. Regarding infrastructure, there are 26 SIP 11 anchor projects of which 4 have commenced with construction; 5 are at post feasibility phase; and the rest are either at conceptual or feasibility phases. There is a challenge of misalignment between production and infrastructure investment.
PROGRAMME 4 – TPMA ..… Trade The SACU reached an agreement on how trade agreements and negotiations with SACU must be conducted. Tripartite Free Trade Area (COMESA, SADC and EAC) negotiations regarding outstanding matters on the Annexure relating to rules of origin, as well as product specific rules of origin continued. At meeting of the negotiating forum of the Continental Free Trade Area (CFTA), the definitions around the guiding principles for the negotiations were agreed upon, except for the most favoured nation (MFN) treatment where SACU submitted a reservation. A market opportunity profile report was completed for the fruit industry and agreement reached on priority markets to assist with work on phytosanitary measures. Data collection commenced for a market profile report for the fresh and processed vegetable industry.
PROGRAMME 4 – TPMA ..… AgriBEE Fund 9 new business proposals to the value of R169m were received for consideration, but only 2 were submitted for due diligence assessment. Main challenge with the proposals is the status of businesses requiring funding as many proposals are for bail-out funds for bankrupt businesses, which is not the objective of the fund. Tablet Technology Joint ICT cellular project with Vodacom to improve access market information for fishing communities. Project to be rolled-out to Eastern Cape, KwaZulu-Natal and Northern Cape. Use of cellular technology to provide market information to fresh produce producers. BEE Sector Codes AgriBEE and Forestry Sector Codes realigned to revised thedti BEE Codes. Minister of Trade and Industry approved the draft amended AgriBEE and Forestry Sector Codes in November 2015, which were published for comment. Finalising draft AgriBEE enforcement regulations.
PROGRAMME 5 - FNRM Drought Current drought – worst since 1904 – has had a devastating effect on the sector and agricultural value chain. Provinces used R188m from their equitable share to assist smallholders and DAFF provided interim feed aid for livestock of smallholders and drilling and equipping of boreholes for R263m using CASP and Ilima/Letsema funds. DAFF Joint Operating Centre has been established and coordinated weekly. DAFF has facilitated that the IDC make R500m available to Land Bank for lending to all producers. Domestic production of staple foods like maize and beans has been reduced by at least 30% leading to price increases. About 189 750 livestock producers, including approximately 3,6 million livestock units, also affected by the drought. To mitigate the impact of the drought, just under R1,0 billion was set aside to procure feed for livestock, establish fodder banks and drill boreholes. .
PROGRAMME 5 – FNRM ..… Producer Support Bid for the procurement of seedlings for the Eastern Cape, KwaZulu-Natal, Limpopo/Mpumalanga was finalised in preparation for the planting season in Q3 and Q4. Communities have been assisted with EIAs covering 10 500 ha, of which 5 000 ha was issued with licences. Communities and private sector planted areas estimated at 2 000 ha. Service Level Agreement entered into with private sector company on Western Cape re-commissioning and a land rights enquiry for communities in the Western Cape approved to commence by 2 May 2016. EIAs for 5 000 ha in KZN underway, but delays in finalising specialist studies due to drought. 1 339 ha of agricultural land rehabilitated against an annual target of 16 000 ha. 506 work opportunities and 126,24 FTEs created through LandCare in Q1.
PROGRAMME 5 – FNRM ..… Legislation The Preservation and Development of Agricultural Land Framework (PDALF) Bill was to be presented at NEDLAC on 19 July 2016. The Minister has instructed the Department to prioritise and fast-track the PDALF Bill for Cabinet consideration, as the sector is increasingly losing arable land to mining and human settlements, which may pose a serious threat to food security in the near future. Facilitated approval of the National Forests Amendment Bill by Cabinet National Forests Advisory Council Hosted the first meeting of the National Forests Advisory Council. The Council must ensure that forestry contributes to job creation, economic growth and rural development.
PROGRAMME 6 - FISHERIES Compliance and Inspections 4 Chinese vessels that were in South Africa`s territorial waters without the necessary permits were arrested and successfully convicted in two separate incidents. One arrested vessel was taken to Cape Town and fined R70 000, while the three other vessels arrested outside East London were fined R700 000 collectively. 8 joint inspections and operations with partners were conducted through the Operation Phakisa Initiative 5 of the Oceans Economy programme and included 11 compliance operations; 3 monitoring and surveillance operations; and 7 fisheries protection vessel operations. 1 840 compliance and enforcement measures were conducted in 6 prioritised fisheries sectors, namely hake, abalone, rock lobster, line fish, pelagics and squid. This entailed 1 197 compliance inspections and 643 inspections by fisheries protection vessels.
PROGRAMME 6 – FISHERIES ..… FRAP 2015/16 The DAFF did not meet its target of finalising the permit conditions for the fishing rights allocated in 9 commercial fishing sectors. The Minister agreed to a request from stakeholders to extend the period for the collection of application forms to allow potential applicants more time to complete the application forms and collect the additional information that needs to be submitted as annexures. This has caused a delay in the allocation of rights in these sectors, as well as the finalisation of permit conditions. Aquaculture Although the DAFF did not meet its target of providing support to two aquaculture farms under Operation Phakisa, a Marine Aquaculture Right was issued to the Molapong Fish Farm in Saldanah Bay, the Western Cape.
PROGRAMME 6 – FISHERIES ..… Surveys The annual Pelagic Recruit survey, which surveys juvenile sardine and anchovy that will provide fish in the following season, was completed by the Africana between the Orange River and Port Alfred in June 2016, and will be completed in Q2. Survey data is used to finalise catch limits for sardine and anchovy for a fishing season. The annual South Coast survey of bottom-dwelling fish stocks, including hake, was completed by the Compass Challenger fishing vessel. The data collected will be used in determining the catch limits for hake (shallow-water and deep-water) for the 2016/17 fishing season. Jobs created 1 812 Full-Time Equivalent (FTE) jobs were created through the Working for Fisheries Programme, including 1 281 youth; 1 248 women; and 33 disabled.
PROGRAMME 6 – FISHERIES ..… Status of Vessels The DAFF has a fleet of 7 vessels, namely 5 patrol vessels and 2 research vessels. This fleet is currently being managed by the South African Maritime Safety Association (SAMSA). All 5 patrol vessels and the 2 research vessels are active and at sea. The DAFF`s primary research vessel, the FRS Africana has completed sea trials and passed various certification requirements, enabling her to embark on her first survey since 2012. Small-scale fisheries The final small-scale fisheries regulations were gazetted on 8 March 2016, along with the MLRA Amendment Bill signed by the President and now provide the legal mechanism for the implementation of the Small-scale Fisheries Policy.
EXPENDITURE QUARTER 1: PER PROGRAMME PROGRAMMES BUDGET APRIL MAY JUNE QUARTER 1 % R’000 R’000 R’000 R’000 R’000 SPENT Administration 788 053 118 751 64 376 63 920 247 047 31,3 Agricultural Production, Health and Food Safety 1 953 418 216 760 201 673 115 762 534 195 27,3 Food Security and Agrarian Reform 1 889 738 37 417 288 670 44 647 370 734 19.6 Trade Promotion and Market Access 297 596 61 389 64 630 16 514 142 533 47.9 Forestry 945 562 72 056 116 544 37 306 225 906 23.9 Fisheries 458 598 84 841 18 231 18 951 22 023 26,6 TOTAL 6 332 965 591 214 754 124 297 100 1 642 438 25.9
EXPENDITURE QUARTER 1:PER ECONOMIC CLASSIFICATION ECONOMIC BUDGET APRIL MAY JUNE QUARTER 1 % CLASSIFICATION R’000 R’000 R’000 R’000 R’000 SPENT Compensation of employees 2 050 784 158 242 156 542 163 142 477 926 23.3 Goods and services 642 233 126 757 56 965 50 176 233 898 36.4 Interest and rent on land 1 067 8 6 1 15 1,4 Total transfers and subsidies 3 500 780 280 281 533 059 71 815 885 155 25.3 Payments for capital assets 138 101 25 903 7 547 11 833 45 283 32.8 Payments for financial assets - 23 5 133 161 - TOTAL 6 332 965 591 214 754 124 297 100 1 642 438 25.9
REASONS FOR OVER/UNDERSPENDING AGAINST 25% TARGET FOR Q1 Programme 1 Payments in respect of accommodation charges for state owned buildings, leases for private owned buildings and municipal fees were made. Programme 2 Double payment to Agricultural Research Council and Quarter 1 payments for conditional grants to Provinces for Ilima/Letsema were made. Programme 3 Quarter 1 payments to Provinces in respect of CASP conditional grants were made.
REASONS FOR OVER/UNDERSPENDING AGAINST 25% TARGET FOR Q1 Programme 4 Once-off payments to Land Bank of South Africa, NAMC and membership fees to international organisations were made. Programme 5 Quarter 1 payments to Provinces in respect of LandCare and CASP conditional grants were made. Programme 6 Quarter 1 payment to MLRF was made.
PROGRAMME 2: AGRICULTURAL PRODUCTION, HEALTH AND FOOD SAFETY
