ANNUAL REPORT 2009/10 PRESENTATION – PRODUCTION AND RESOURCES MANAGEMENT

1. ANNUAL REPORT 2009/10 PRESENTATION – PRODUCTION AND RESOURCES MANAGEMENT THE SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS 08 FEBRUARY 2011 PROGRAMME 2

2. Background Purpose To promote agricultural productivity and profitability through the identification of opportunities, sustainable use and protection of land, water and genetic resources and infrastructure development to ensure household food security. The programme comprises of two subprogrammes:

3. PRODUCTIONAND RESOURCE MANAGEMENT Agricultural production: Focuses on ensuring national food security and creating an enabling environment for increased and sustainable agricultural production through appropriate policies, legislation, norms and standards, technical guidelines and other programmes and services. Engineering and Resources Management: Facilitates the development of agricultural infrastructure and the use of agricultural resources. Other activities include auditing natural resources, controlling migratory pests, rehabilitating and protecting agricultural land and running the community-based LandCare programme. ;\

4. EXPENDITURE TRENDS Total expenditure increased an annual average rate of 13.7 per cent from 2006/07 to 2009/10 mainly as a result of ; • a once-off allocation of R221 million for the Ilima/Letsema projects to improve agricultural production • R76 million for starter packs in the 2008/09 financial year. Over the medium term additional allocations of R200 million, R400 million and R420 million are made to further strengthen the Ilima/Letsema production initiative giving rise to an annual average growth rate of 29.4 cent.

5. ACHIEVEMENTS Tilapia – catfish cage culture project. During this financial year, Tilapia were grown in a cage system in the Jozini dam in Kwa Zulu Natal. Animal breeding support program – Training on a limited number of cattle to emergent beef cattle producers through the National Emergent red Meat Producers Organisation (NERPO) was done In addition, there was an increase of 80 participants on the Kanofatso ya di Kgomo program run by the ARC on behalf of DAFF. Promotion of appropriate production technologies – The Directorate revised and published production guidelines for pigs, broiler and egg production and beef cattle. The first fish production manual was finalized in collaboration with the Water Research Commission and Rhodes University and a beef cattle owner’s manual that includes a comprehensive veld management guide was finalized in collaboration with NERPO The development of aquaculture training manuals has been completed and 20 extension officers were trained in milk goat production.

6. ACHIEVEMENTS Norms and standards for Subdivision of Agricultural Land were approved. 61 Unique Agricultural zones for Gauteng Province and 64 unique Agricultural zones for Limpopo province were identified for development of norm and standards . 14 042 beneficiaries on 748 compliant farms adopted sustainable technologies on Landcare projects and land reform farms. A total of 264 602 ha of land were under sustainable natural resource Management practices A total of  129 boreholes  were drilled across the country of which  95 had adequate water whilst 34 were dry

7. ACHIEVEMENTS Fencing for animal health disease control totaling  91 km was constructed Authorisations to import 608808 cattle, 509519 sheep and 567122 goats for feedlot and slaughter purposes were issued. Authorisations to import 868283 poultry 1462596 doses of semen, 549 embryos and 4849 animals were also issued during the year. 473 donor animals and 15 reproduction centres were registered during the year.

8. ACHIEVEMENTS Fruit production support scheme was piloted in the Vhembe district of Limpopo. About 50 farmers participated and were assisted to establish close to 200 ha of fruit orchards. The farmers were provided with close to 52 000 seedlings comprising of mangoes, avocadoes, macadamia and bananas. Close to 100 jobs were created. 40 beef and 40 goats’ farmers have been supported as new entrants in animal improvement schemes. Surveys were undertaken in Gauteng and Northwest Provinces to assess the status of the farm animal genetic resources (FAnGR) amongst emerging and subsistence farmers. Over 2 000 export certificates were issued to seed companies that that exported to various countries across the world. The bulk of these exports were destined for Africa.

9. HIGHLIGHTS Community based seed production schemes. Seed schemes on maize, sorghum and dry beans were implemented in Limpopo and Mpumalanga. Close to 250 farmers were involved. Schemes implemented in collaboration with ARC, SANSOR and PDA’s. These seeds are exported to Zimbabwe, Mozambique and Botswana. A programme to improve seed security of the community. Partnership with Sterkspruit (Eastern Cape) community to develop a programme to improve seed security of the community. In KwaZulu-Natal (50 participants) and Limpopo (30 participants) community members have been trained on management of their indigenous seeds. Four (4) Food Banks were launched to date (Cape Town, Johannesburg, Durban and Port Elizabeth). The current operations of the Food Banks is providing meals to 84 800 individuals per day..

10. Challenges and response to challenges

11. Challenges and response to challenges

12. Challenges and response to challenges

13. THANK YOU

14. ANNUAL REPORT 2009/10PRESENTATION- AGRICULTURAL SUPPORT SERVICES The SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS 08 FEBRUARY 2011 PROGRAMME 3

15. Purpose Develop and facilitate the implementation of appropriate policies and targeted programmes aimed at promoting equitable access to the agricultural sector to promote shared growth and the commercial viability of emerging farmers. The programme comprises of two subprogrammes: Livelihoods Development Support: Facilitate the provision of past settlement support for emerging farmers, promotes black economic empowerment (BEE), provides for agricultural development finance, promotes cooperative and manages agricultural risk and natural disasters. Sector Services and Research: Directs and supports agricultural Education and Training, research, extension and advisory services in support of targeted groups and also manages the transfer of funds to the ARC.

16. EXPENDITURE TRENDS Within the CASP allocation of R715 million, R170 million was allocated for the implementation of an extension recovery plan (ERP). A total amount of R153 million was spent during 2009/10 financial year which is 90% of the allocated budget for the ERP. HIGHLIGHTS (ACHIEVEMENTS) The plan was to capacitate 10 000 beneficiaries in the sector. By the end of the financial year: A total of 2566 beneficiaries were trained through commodity based mentorship in partnership with the Wool Growers Association, Citrus Growers Association, Milk Producers Organization, National Emergent Red Meat Producers Organization and other Commodity Organization throughout the country. Through the use of extension Recovery Plan funds 2346 extension personnel were trained both in accredited soft and technical skills programmes and 646 were registered for qualification upgrading A total of 54 extension officers and 1123 farmers were capacitated on the use of the cooperative tool kit and cooperative guidelines

17. A further 544 farmers received training in the area of sheep and goat farming at Grootfontein Development Institute (GADI). A total of 217 extension officers were recruited against a target of 250. The shortfall was due to KZN delays in finalizing the appointments A total of 1405 clients received financial services through MAFISA. These clients were reached through the use of financial intermediaries. A total of 1190 direct permanent job opportunities were created for cooperative administrators. A total of 7495,7 hectares of state land was disposed of during the period under review

18. MAJOR CHALLENGES & PROPOSED INTERVENTIONS

19. DEPARTMENT of AGRICULTURE, FORESTRY and FISHERIES ANNUAL REPORT 2009/10 SPENDING TRENDS PROGRAMMES 2 AND 3

20. PER SCOABUDGET EXPENDITURE % R’000 R’000 SPENT Compensation of employees 89 187 89 124 99,9 Goods and services 68 192 68 115 99,9 Financial transactions in assets and liabilities 136 133 97,8 Transfer and subsidies 111 752 110 271 98,7 Capital assets 36 040 35 666 99,1 TOTAL 305 307 303 309 99,3 Of which transfer payments: Illima/Letsema 50 000 50 000 100,0 LandCare 51 417 50 100 97,4 Food Bank SA 8 000 8 000 100,0 PROGRAMME 2:PRODUCTION AND RESOURCES MANAGEMENT

21. Challenges and achievements Budget was reprioritised to provide funds for Food Bank South Africa – R8,0 million An additional R25,0 million was allocated in the Adjustments Appropriation Act for an outbreak of locusts and quela. PROGRAMME 2:PRODUCTION AND RESOURCES MANAGEMENT

22. PROGRAMME 3:AGRICULTURAL SUPPORT SERVICES PER SCOABUDGET EXPENDITURE % R’000 R’000 SPENT Compensation of employees 82 399 82 228 99,8 Goods and services 73 522 73 077 99,4 Financial transactions in assets and liabilities 78 75 96,2 Transfer and subsidies 1 842 903 1 839 898 99,8 Capital assets 2 519 2 473 98,3 TOTAL 2 001 421 1 997 751 99,8 Of which transfer payments: CASP 715 394 692 669 96,8 Agric disasters 156 900 156 900 100,0 ARC 537 153 537 153 100,0 Land Bank 415 600 415 600 100,0

23. Challenges and achievements An additional R50,0 million was allocated to manage the floods in the Western Cape An additional R46,9 million was allocated for drought in the Western Cape and Eastern Cape Departmental revenue of R221,0 million from repayments from farmers for agricultural loans awarded before 1994 was provided in the Adjustments Appropriation Act to augment the Micro Agricultural Financial Institutions of South Africa Scheme (MAFISA) Underspending by provinces in respect of the Comprehensive Agricultural Support Programme (CASP) PROGRAMME 3:AGRICULTURAL SUPPORT SERVICES

24. DORA ACTUAL AMOUNT % TRANSFER SPENT SPENT R’000 R’000 R’000 Eastern Cape 120 364 120 364 111 310 92,5 Free State 65 659 65 659 58 822 89,6 Gauteng 33 844 33 844 33 844 100,0 KwaZulu-Natal 117 762 117 762 117 762 100,0 Limpopo 108 483 108 483 108 483 100,0 Mpumalanga 70 892 70 892 70 892 100,0 Northern Cape 49 232 49 232 49 232 100,0 North West 91 518 91 518 84 684 92,5 Western Cape 57 640 57 640 57 640 100,0 TOTAL 715 394 715 394 692 669 96,8 Comprehensive Agriculture Support Programme (CASP)

25. THANK YOU

26. AGRICULTURE, FORESTRY AND FISHERIES NEW FUNDING MODEL PRESENTATION TO SELECT COMMITTEE 08 FEBRUARY 2011

27. PRESENTATION OUTLINE 27 CASP Allocation and Expenditure Ilima/Letsema Allocation and Expenditure Challenges

28. CASP ALLOCATION AND EXPENDITURE PER PROVINCE

29. ILIMA-LETSEMA ALLOCATION AND EXPENDITURE PER PROVINCE

30. CHALLENGES TO BE OVERCOME Poor planning resulting in delayed implementation Changes in projects originally agreed to. Supply Chain Management (systematic and cumulative delays in processes and procurement practices). Inadequate capacity of HDI contractors, leading to poor performance of contractors. Changes in financial system (North West changed from Walk-in-system to Basic Accounting System (BAS)). Capacity challenges (insufficient with particular emphasis to engineers). Seasonal nature of Agriculture delaying spending on certain planned crops. In-fighting of beneficiaries on already agreed projects delays implementation. Non-response on advertised tenders (Northern Cape), and slow issuing of invoices by service providers.

31. CASP AND ILIMA-LETSEMA FUNDS WITHHELD FOR QUARTER FOUR (4) CASP Funds for quarter 4 are withheld for a period longer than 30days but not exceeding 120 days from: Eastern Cape Free State North West Ilima-Letsema Funds for quarter 4 are withheld for a period longer than 30days but not exceeding 120 days from: Eastern Cape Gauteng Kwazulu Natal

32. END OF REPORT THANK YOU