Title: DAFF ANNUAL REPORT 2010/11: PERFORMANCE INFORMATION
1DAFF ANNUAL REPORT 2010/11 PERFORMANCE
INFORMATION
- DIRECTOR GENERAL
- Mr Langa Zita
- 11 OCTOBER 2011
2PRESENTATION OUTLINE
- 1. Mandate, Vision and Strategic Goals
- 2. Overview
- 3. Sectoral Economic Environment
- 4. Programme 1 Administration
- 5. Programme 2 Policy, Planning, Monitoring and
Evaluation - 6. Programme 3 Economic Development, Trade and
Marketing - 7. Programme 4 Food Security and Agrarian
Reform - 8. Programme 5 Agriculture Production, Health
and Food Safety - 9. Programme 6 Forestry and Natural Resources
Management - 10. Programme 7 Fisheries Management
- 13. Financial Statements
- 14. Way Forward
3VISION AND STRATEGIC GOALS OF DAFF
- VISION
- The vision of the department is a leading,
dynamic,united, prosperous and people-centred
sector. - STRATEGIC GOALS
- increased profitable production of food, fibre
and timber products by all categories of
producers(subsistence,smallholder and commercial) - Sustained management of natural resources
- Effective natural regulatory services and risk
management systems - A transformed and united sector
- Increased contribution of the sector to economic
growth and development - Effective and efficient governance
4MANDATE, VISION AND STRATEGIC GOALS.
- DAFF works with the Provincial Departments and
compliment each others activities to achieve the
shared goals of reducing poverty and improving
lives - DAFF also work cooperatively with the SOEs (ARC,
NAMC, PPECB, Land Bank ,Ncera and OBP) that
reports to the Minister in achieving the above
objectives. - DAFF was allocate R 3.9 billion to execute its
mandate during the financial 2010/11 -
5OVERVIEW
- The Department presents its Annual Report
for 2010/11 financial year - This presentation focuses attention on the
departmental achievements made during 2010/11
period, - The amalgamation process to incorporate forestry
and fisheries functions within the agriculture
setup has been completed. - Of the 12 key Outcomes identified for
implementation over the coming four years, DAFF
directly contributes to Outcomes 4, 7 and 10. - The operating environment was also influence
by the following new government-wide policies - New Growth Path , Industrial Policy Action Plan
and Comprehensive Rural Development Plan. - The Integrated Growth and Development Plan for
the AFF sectors guiding sectoral response to the
abovementioned policies in addressing national
challenges.
6SECTOR ECONOMIC HIGHLIGHTS
- The Strategic Plan 2010 -11 was implemented in
the following domestic and global economic
environment - Global financial and economic uncertainty and the
debt crisis in Europe continue to keep global
markets jittery with the talk of another global
recession gaining momentum. - The prevailing global economic situation has
impacted negatively on exports especially to
countries that are our biggest importers in
Europe. - During the past year (especially since August
2010) agricultural commodity markets experienced
significant volatility as the balance between
demand and supply tightened and adverse weather
conditions occurred.
7 SECTOR ECONOMIC HIGHLIGHTS.
- Gross farming income from all agricultural
products for 2010/11 is estimated at R131,7
billion, which is 0,4 lower than for the
previous corresponding period. - Gross farming income from field crops decreased
by 12,0 and amounted to R27,6 billion. - The income from horticultural products rose by
0,6, from R35,3 billion to R35,5 billion. Income
from animal products amounted to R68,6 billion,
which showed an increase of 4,7. - Prices received by farmers for agricultural
products and prices paid by farmers for farming
requisites increased on average by 4,3 and 13,2
, respectively, resulting in the terms of trade
weakening from 0,93 to 0,86 during 2010/2011.
8SECTOR ECONOMIC HIGHLIGHTS
- Apart from the floods experienced during the last
quarter of the year under review, stronger
linkages between agricultural commodities and
energy markets through inputs such as fuel and
fertiliser, and through the demand for feedstock
in the bio-fuels industry - have impacted negatively on inputs and food
prices. - The total catches and the free on board value of
the production output of the fishing industry
from 2010 is approximately 650 000 tons and R6,5
billion. - Over the next decade the demand for food is
expected to grow consistently in line with
population growth, whilst in real terms, world
commodity prices are likely to remain fairly
stagnant albeit at a higher plateau compared to
the previous period from 2000 to 2010.
9 SECTOR ECONOMIC HIGHLIGHTS
- The FAO food price index reached a record high in
February 2011, mainly due to increased prices of
cereals, meat and dairy products globally. - In Western and Central Africa the prices of
domestically produced staple foods have been
relatively stable. As for Eastern and Southern
Africa, prices of locally produced coarse grains
have increased. For example, Somalia has been
hard-hit with sorghum and maize prices soaring
over 200 between October 2010 and April 2011. - The situation is even worse In North Africa,
which is traditionally dependent on cereal
imports as production has declined as a result of
drought and erratic rains as well as civil
strife. - Consequently, rising international grain prices
will remain a major concern for food security in
many African countries.
10 SECTOR ECONOMIC HIGHLIGHTS ..
- The forestry industry is showing steady
recovery since the 2008 recession and the
resulting decline in pulp and paper demand. This
is driven mostly by packaging and tissue grades.
With the exception of fluting and kraft papers,
tonnages across all grades have recovered from
their 2008/09 lows. - The Rand value of production is significantly
higher due to higher global prices, which appear
to be driven by the global trend of rising
resource prices, labour, energy and water costs
in the forestry industry. - The imports of paper and packaging grades (except
for tissue products) continue to rise strongly
showing a 28 increase since 2006 outstripping
domestic production which has declined by about
4. - This is partly attributable to the relatively
strong Rand of recent years. The lack of any
trade tariffs also make South Africa an easy
target for dumping, which even when not in great
quantities, disrupts local markets.
11 ECONOMIC SECTOR Conti
- South Africa is a net exporter of fish and fish
products. In some cases, like Rock Lobster,
Squid, Tuna and Demersal Longline, almost the
entire production is exported, - The country is also exporting about 52 of the
total demersal trawl catches (economically the
largest fishery). The products are mainly
destined for Europe, Japan and the USA. - The fisheries industry employment is about 27000
direct jobs as well as additional 81000 jobs in
the sectors that are at least partly dependent in
the fishing industry. - Increasing job losses (an average decrease of 5
per quarter in employment) leaving agriculture
with a total of 598 000 jobs, remains a
challenge. - By improving the competitiveness of the
commercial sector, labour absorptive capability
and supporting smallholders to become
commercially viable, the country positively
overcoming the challenges of a concentrating
sector and an increasingly competitive global
market. - The above achievements will be further enhanced
through the implementation of the Provincial Job
Creation Projects, the Smallholder plan, and the
Zero Hunger Programme.
12BUDGET PROGRAMME PERFORMANCE
- ADMINISTRATION
- POLICY, PLANNING, MONITORING AND EVALUATION
- ECONOMIC DEVELOPMENT, TRADE AND MARKETING
- FOOD SECURITY AND AGRARIAN REFORM
- AGRICULTURE PRODUCTION, HEALTH AND FOOD
SAFETY - FORESTRY AND NATURAL RESOURCES MANAGEMENT
- FISHERIES MANAGEMENT
13 ADMINISTRATION
14 ADMINISTRATION
- The biggest challenge facing the Department
during the period under review, was the
finalisation of the macro organisation of the
newly created Department, this has now been
completed. - The matching and placement of members of the
Senior Management Service (SMS) and the
configuration of the micro structure and the
concomitant alignment of the post establishment
and incumbents. - On 31 March 2011 the post establishment of the
Department totaled 7043 posts. - The department has spent R1, 189 billion on
employee compensation - During the reporting period the vacancy rate on
the Departments post establishment decreased
from 14,8 to 11,3. - The delays in the personnel suitability checks
conducted by National Intelligency Agency (NIA)
(security checks and citizenship checks) and
South African Qualification Agency (SAQA)
(qualification verifications) however poses a
challenge in terms of the turn around times to
fill vacant posts.
15ADMINISTRATION CONT
- All SMS posts were subjected to job evaluation
during the period under review. - A total of 56 employees attended and completed
the Adult Basic Education and Training (ABET)
Programme during the reporting period, while 1
155 employees attended credit-bearing skills
programmes and learnerships. A total of 208
employees were awarded bursaries, totaling R 1,7
million. - The departmental Internship Programme attracted
175 students. - During the period of reporting 17 SMS members
were trained on Disciplinary Procedures in the
Public Service.
16 POLICY, PLANNING, MONITORING AND EVALUATION
17 POLICY, PLANNING, MONITORING AND EVALUATION
- The Transfer of Rights Policy and the Small-scale
Fisheries Policy were gazetted. The Policy on the
Transfer of Commercial Fishing Rights was
published and gazetted. The programme continued
with the granting of interim relief measures
pertaining to exemptions/permits. - The list of protected trees under the National
Forest Act was gazetted for public comment. - The Pesticides Policy was approved by the
Minister and has been gazetted. - A discussion document was finalised towards the
provision of primary plant health diagnostic
services in rural areas in partnership with the
ARC and in synergy with departmental extension
support services.
18 POLICY, PLANNING, MONITORING AND EVALUATION
- Draft policy on organic agriculture is at a
stakeholder consultative stage. -
- A discussion document was finalised towards the
provision of primary plant health diagnostic
services in rural areas in partnership with the
ARC. -
- Draft Food Safety Policy was widely consulted and
is currently in the Cluster and Cabinet process
before gazetting. - The list of protected trees under the National
Forest Act were gazetted for public comment. - Frameworks for both planning, monitoring and
evaluations have been completed to ensure
alignment and accurate reporting of performance
information. - The budget structures of provincial dept of
agriculture have been standardised for
cooperative planning and reporting on national
targets.
19 ECONOMIC DEVELOPMENT, TRADE MAKERTING
20ECONOMIC DEVELOPMENT, TRADE MARKETING
- The department continue to strengthen South
Africa trade relations with African countries
through (Comprehensive African Agricultural
Development Programme) CAADP. Below are
Initiatives achieved within the year - Memoranda of Understanding (MoUs) and agreements
with Zimbabwe, Swaziland and Uganda were
finalised. The programme also participated in
bilateral meetings with Namibia, Lesotho,
Mozambique, DRC and Algeria. - Participated in Southern African Development
Community (SADC) and African Union (AU)
initiated multilateral meetings to enhance
agriculture, forestry and fisheries development
and trade among African countries - Participated in South African Custom Union (SACU)
meetings to facilitate the adoption of standards
to ensure proper movements of goods in the custom
union and also the negotiation of free trade with
other regions
21 ECONOMIC DEVELOPMENT, TRADE MARKERTING Cont
- Facilitated the exports of 57 products into the
EU and the SADCthe two biggest destinations for
South African exports and the remaining 43
exported to other markets. - Continued to participate vigorously in World
Trade Organisation(WTO) Doha Development Agenda
negotiations regarding modalities for further
reform of agriculture. Unfortunately, the other
areas of negotiations have been halted. - Since becoming a full member of the
Brazil,Russia, India, China and South Africa
(BRICS) group, new markets and trade
opportunities have been created and work is
continuing building on IBSA to strengthen
technical cooperation to maximise the trade and
development opportunities offered by each member
country. - After more than ten years of negotiations with
Japan, market access was achieved for one variety
of South African Table grapes (Barlinka).
22PROGRAMME 3 ECONOMIC DEVELOPMENT, TRADE Cont
- Participated in the Shanghai World Expo 2010 for
six months (May-October) to promote our products
to the new East Asian market. - Continued to engage the developed countries under
the G20 umbrella to allocate more funding to
agriculture, forestry and fisheries development
for the most food insecure countries in the World
- Organizing the African Ministerials summit on
Climate-Smart Agriculture (CSA) which was held
from 13-14 September 2011 in Johannesburg. - The outcome of the summit was a Communiqué which
was translated into French, Arabic and Portuguese
and noted by the African Ministerial Conference
on the Environment (AMCEN).
23FOOD SECURITY AND AGRARIAN REFORM
24 FOOD SECURITY AND AGRARIAN REFORM
- A draft Food Security Policy was developed and
its initial implementation strategy, the Zero
Hunger Programme was initiated. - The National Delivery Forum for Vulnerable
Workers on farms and in forestry and fisheries
was established after the Terms of Reference
(ToR) for its establishment had been adopted. - The plan to convert the 12 colleges of
agriculture into national Agricultural Training
Institutes is at an advanced stage. An audit has
been completed to ascertain the feasibility of
the programme. - The centres of excellence will be developed in
commodity lines for the training and development
of smallholder producers.
25FOOD SECURITY AND AGRARIAN REFORM.
- Capacity building workshops on the understanding
of the National Forest Act and the National Veld
and Forest Fires were conducted for various
stakeholders including communities an the fire
protection associations. - Weather and climate capacity-building workshops
were conducted for officials in the North West
and Limpopo provinces where 68 officials
participated . - A total of 670 extension officers were enrolled
with various universities and universities of
technology for qualification upgrading, 1 947
were trained on different skills programmes - Owing to effective coordination of training, a
total of 31 474 members of communities, including
10 298 smallholder farmers were trained through
CASP of which, 3 929 women and 6 369 males were
trained, 2 606 were the youth.
26FOOD SECURITY AND AGRARIAN REFORM.
- In terms of the NGP, agriculture has a
significant potential to create jobs. About 9 361
jobs were created through CASP, 854 permanent and
8 507 temporary. - 3 581 jobs were created through Ilima/Letsema.
504 of these jobs were permanent and 3 077
temporary. -
- A total of 8221 job opportunities have been
created by Mafisa funded enterprises during the
2010/11 financial year. Of this figure, 5560 were
casual opportunities while 2467 constituted
permanent opportunities. - These job opportunities include owner operators
and workers employed by enterprise owners. The
number does not include workers employed by
contractors contracted to provide services to the
funded farmers
27FOOD SECURITY AND AGRARIAN REFORM.
- Micro-agricultural Financial Institutions of
South Africa (MAFISA) retailing institutions
disbursed loans to 3 910 clients across the
country for various agriculture-related
enterprises . - A total of 27 972 targeted beneficiaries were
supported through Ilima/Letsema 75 207
beneficiaries were supported with production
inputs for their household and food gardens. - 5 650 subsistence farmers were supported with
production inputs and mechanisation through
Ilima/Letsema projects, planting on 127 198
hectares of land. - Mpumalanga province through the Masibuyele
Emasimini and the use of mechanisation provided
by DAFF, planted 75 575 hectares of grain and
sorghum for their subsistence farmers.
28AGRICULTURE PRODUCTION, HEALTH AND FOOD SAFETY
29 AGRICULTURE PRODUCTION, HEALTH AND FOOD SAFETY
-
- In spite of improved control measures, there was
an outbreak of Rift Valley fever in the Western
Cape in January 2011 FMD in KZN , African horse
sickness and avian influenza in the Western Cape
during February 2011. Avian influenza has
impacted on the export of poultry meat, including
ostrich meat. - The Foot and Mouth Disease is currently well
under control ,over 120 000 animals were
vaccinated and thus far no cases has been
reported since April 2011. - African Horse Sickness has been found in the
Western Cape areas and there have been no exports
of Horses to EU since March 2011 - Avian Influenza infected Ostriches In Western
Cape (infected area described as Klein Karoo
Valley) and 35 000 birds were culled and R33
million compensation was paid by end August 2011. - Detections of African invader Fruit fly in
Limpopo province were successfully eradicated and
trading partners accordingly informed.
30AGRICULTURE PRODUCTION, HEALTH AND FOOD
SAFETY..
- Research and technology development is
looking at new approaches which could optimise on
the existing capacity to achieve increased food
production. - Undertook collaboration work with the ARC to
enhance livestock production for small-holder
farmers through various schemes - A total of 1415 beef farmers with a herd size of
15113 animals were assisted in the beef
improvement scheme - A total of 729 herds (dairy) and 17 goat herds
participated in the milk recording scheme to
increase milk production ( 6)
31AGRICULTURE PRODUCTION, HEALTH AND FOOD
SAFETY..
- Due to increased numbers of tourists for 2010
FIFA World Cup, DAFF strengthened disease
surveillance systems and improved control
measures at all ports of entry and this
initiative proved to have been a success. - Thanks to the commercial farming community who
worked closely with the department to speedily
act against the pest. -
32 FORESTRY AND RESOURCES MANAGEMENT
33FORESTRY AND RESOURCES MANAGEMENT
- Forestry Development focused on renewed growth as
well as on transformation and sustainability of
the sector and the value chain. - A total of 1 000 ha was afforested in the Eastern
Cape and 1 962 ha in KwaZulu-Natal. The
Afforestation licensing process still presents a
major constraint in reaching the target of 10
000ha committed in the Forestry Transformation
Charter. - Devastating veld and forest fires occurred which
affected the rural economies and endangered
indigenous flora and fauna, while also affecting
the quality of the soil. - The enforcement of legislation was stepped up to
ensure the protection and conservation of our
natural resources. - The Department has finalised the State of the
Forest Report 2007 2009 which highlights major
challenges and responsive measures.
34FORESTRY AND RESOURCES MANAGEMENT
- DAFF participated in COP 16 in Mexico in
November/ December 2010, the conference added
value to the Copenhagen accord discussions
leading to the Cancun Agreements including the
establishment of the Green Fund. - A national climate change stakeholder conference
to solicit inputs not only for a COP17 common
position but also the development of Sectoral
Climate Change Mitigation and Adaptation Plan
was held from 11-12 August 2011 in Pretoria where
various stakeholders including members of the
Portfolio Committee participated. - DAFF also formed part of the Climate negotiations
under the United Nations Framework Convention on
Climate Change (UNFCCC). - The Department has successfully won the bid to
host the 14th World Forestry Congress 2015. The
conference will be hosted in Durban,
KwaZulu-Natal.
35FORESTRY AND RESOURCES MANAGEMENT
- Funding has been made available for the floods
that occurred in December 2010, the Flood
Assistance Scheme has been established and the
focus is on the repair of damaged infrastructure.
- A vulnerability assessment on climate change was
conducted and three vulnerable areas were
identified in the south-western parts of the Free
State and adaptation strategies are being
developed. - 571 commercial farmers, 2 024 smallholders and 2
134 subsistence farmers adopted land-use best
practices. - 25 fire protection associations (FPAs) were
registered.
36 FISHERIES MANAGEMENT
37PROGRAMME 7 FISHERIES MANAGEMENT
-
- The Transfer of Rights Policy and the Small-scale
Fisheries Policy were gazetted. - The Policy on the Transfer of Commercial Fishing
Rights was published and gazetted. -
- The programme of granting of interim relief
measures pertaining to exemptions/permits
continued. - In Fisheries, all Abalone diving surveys were
completed in Zone B (20 survey points). A
preliminary joint survey was carried out in
conjunction with industry stakeholders. -
- The stock assessment report on Eastern Cape
abalone was reviewed.
38PROGRAMME 7 FISHERIES MANAGEMENT Cont.
- Joint partnerships with law enforcement and
conservation agencies, have been established and
are maintained. - e.g. with the SAPS, the South African National
Defence Force (SANDF), South African National
Parks (SANParks), the SARS, KwaZulu-Natal/Ezemvelo
Wildlife and Swellendam Municipality. - Concluded a draft Fisheries Policing Strategy
which is currently going through a consultative
process. - The research project on spawning sea urchins was
successful. Phase 1 of the scallops grow out
trials was completed. - An initiative to expand aquaculture into rural
areas is at an advanced stage, Negotiations were
concluded with the Universities of Cape Town,
Rhodes, KwaZulu-Natal, Stellenbosch and the
Western Cape to enter into MoUs with DAFF to
undertake aquaculture research.
39PROGRAMME 7 FISHERIES MANAGEMENT Cont.
- A programme aimed at promoting equitable and
sustainable management and efficient use of
marine living resources is progressing well with
the development of small scale fisheries policy. - Additional fishing rights on account of available
Total Allowable Effort (TAE) allocated in Large
Pelagics fishery and appeals finalised. - Stakeholder engagement on alternative livelihoods
and projects identified for implementation. - Management program for rebuilding depleted fish
stock is showing positive results, though at a
slower rate (Rock Lobster and Hake). - The 40 target of landings inspections has been
achieved, to strengthen surveillance and
compliance to permit conditions.
40BUDGETS AND EXPENDITURE
41FINANCIAL STATEMENTS
-
- Vote 25
- Unqualified audit report
- Predetermined objectives
- Presentation of information
- Usefulness of information
- Reliability of information
- Other matters
- Content of strategic plan
- Material misstatement
- Irregular expenditure
- Procurement (three written price
quotations) -
42ACTUAL SPENDING
- R000
- Main estimate
- Agriculture, Forestry and Fisheries 3 657 984
- Plus Adjustments estimate 295 870
- Total amount appropriated 3 953 854
- Less Actual expenditure 3 850 664
- Variance 103 190
43ACTUAL SPENDING
- R000
- Underspending 103 190
- Less Lease payments office accommodation
12 299 - Transfer payments withheld Provinces
underspending - CASP 33
658 - Ilima/Letsema
7 500 - Fencing projects Lesotho border
2 926 - Farmer Register Project 19
509 - Not spent by the Department 27 298
- of total appropriation 0,7
44ACTUAL SPENDING PER PROGRAMME
Final Actual Variance
Appropriation Expenditure Spent R000 R00
0 Administration 476 991 455 492 95.5
21 499 Production and Resources Management
442 159 426 186 96.4 15 973 Agriculture
Support Services 1 744 891 1 710 902 98.1
33 989 Trade and Agricultural Development 97
129 76 538 78.8 20 591 Food Safety
and Biosecurity 363 575 362 583 99.7
992 Forestry 525 451
515 329 98.1 10
122 Fisheries
303 658 303 634
100.0 24 Total
3 953 854 3
850 664 97.4 103 190
- Final Actual
Variance - Appropriation
Expenditure Spent - R000 R000
- Administration 476 991
455 492 95.5 21 499 - Production and
- Resources Management 442 159
45ACTUAL SPENDING PER ECONOMIC CLASSIFICATION
Final Actual
Variance Appropriation Expenditure
Spent R000 R000 Current
Payments Compensation of employees 1 190 848
1 189 923 99.9 925 Goods
and services 603 113 564 246
93.6 38 867 Interest and rent on land
1 380 1 195 86.6
185 Transfers and subsidies 2 036 953
1 983 747 97.4 53 206 Payments for
capital assets 121 300 111 301
91.8 9 999 Payments for financial
assets 260
252 96.9
8 Total 3 953 854 3 850 664
97.4 103 190
46CHALLENGES
- The length of a legislative process against the
pressures of delivery. - Intergovernmental relations as a hindrance to
implementation. - Consolidation of departmental focus
(amalgamation) took a longer period of time. - Pressure on available appropriate technical
skills and experience. - Resources to deal with emergency pest eradication
requirements (financial and procurement
procedures) - Stakeholders relations and engagements.
- 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.
47CHALLENGES CNT
- Low share of agriculture and forestry freight to
total freight moved by Transnet Freight Rail
(TFR) - Funding challenges for commodity strategies makes
it difficult for the DAFF to get a buy-in from
stakeholders
48WAY FORWARD
- The department is working on aligning and
standardizing all ME responsibilities incl.
reporting and verification in DAFF, PDAs and
SOEs. - DAFF is also working with PDAs to improve quality
on performance information.