Strategic Plan for the Department of Agriculture, Forestry and Fisheries 2013/14 to 2017/18

agriculture, forestry & fisheries Department: Agriculture, Forestry and Fisheries REPUBLIC OF SOUTH AFRICA 2013/14 to 2017/18 for the Department of Agriculture, Forestry and Fisheries Strategic Plan MARCH 2013MARCH 2013 2013/14 to 2017/18 for the Department of Agriculture, Forestry and Fisheriesfor the Department of Agriculture, Forestry and Fisheries Strategic PlanStrategic Plan 2013 Printed and published by Department of Agriculture, Forestry and Fisheries Design and layout by Directorate Communication Services Private Bag X144, Pretoria 0001 ISBN: 978-1-86871-371-4 iii ContentsContents Acronyms ................................................................................................................................................................. v Foreword by the Minister of Agriculture, Forestry and Fisheries ............................................................................. vii Statement by the Deputy Minister ........................................................................................................................... ix Overview by the Director-General ........................................................................................................................... x Official sign-off ......................................................................................................................................................... xii PPARTART A: Strategic overview A: Strategic overview Mission statement .................................................................................................................................................... 2 Legislative and other mandates ............................................................................................................................... 2 Situational analysis .................................................................................................................................................. 6 Organisational environment ..................................................................................................................................... 16 Strategic goals and objectives ................................................................................................................................. 18 Risk management .................................................................................................................................................... 20 PPARTART B: Programme deliverables B: Programme deliverables Administration .......................................................................................................................................................... 24 Agricultural Production, Health and Food Safety ..................................................................................................... 29 Food Security and Agrarian Reform ........................................................................................................................ 33 Economic Development, Trade and Marketing ........................................................................................................ 36 Forestry and Natural Resources Management ........................................................................................................ 40 Fisheries Management ............................................................................................................................................ 44 PPARTART C: Links with other plans C: Links with other plans Acquisition and asset management ......................................................................................................................... 48 Public entities and other agencies ........................................................................................................................... 50 • Agricultural Research Council ........................................................................................................................... 50 • Marine Living Resources Fund .......................................................................................................................... 50 • National Agricultural Marketing Council ............................................................................................................. 51 • Ncera Farms (Pty) Ltd ....................................................................................................................................... 51 • Onderstepoort Biological Products .................................................................................................................... 51 • Perishable Products Export Control Board ........................................................................................................ 51 • Resource allocation of public enitities ................................................................................................................ 52 AnnexuresAnnexures 1. Annual performance plans ................................................................................................................................. 54 2. Service Delivery Improvement Plan ................................................................................................................... 79 DAFF Strategic Plan 2013/14–2017/18 iv AcronymsAcronyms AFF Agriculture, Forestry and Fisheries AG Auditor-General AgriBEE Agricultural Black Economic Empowerment APP Annual Performance Plan ARC Agricultural Research Council ARMC Audit and Risk Management Committee ATI Agricultural Training Institute AU African Union BCC Benguela Current Commission BRICS Brazil, Russia, India, China and South Africa CAADP Comprehensive African Agricultural Development Programme CARA Conservation of Agricultural Resources CASP Comprehensive Agricultural Support Programme CC climate change CD Chief Director CFO Chief Financial Officer CHE Council for Higher Education CPI Consumer Price Index DAFF Department of Agriculture, Forestry and Fisheries DDG Deputy Director-General DEAT Department of Environmental Affairs and Tourism DEXCO Departmental Executive Committee DG Director-General DPSA Department of Public Service and Administration DPW Department of Public Works DRDLR Department of Rural Development and Land Reform dti Department of Trade and Industry EC Eastern Cape EDMS Electronic Document Management System EFTA European Free Trade Association EIA Environmental Impact Assessment EPA Economic Partnership Agreement EPWP Extended Public Works Programme ERM Enterprise Risk Management ERP Enterprise Resource Planning/Extension Recovery Plan EU European Union FAO Food and Agriculture Organization FTA free trade area FTE full-time equivalent GFI gross farm income GDP gross domestic product GIS Geographic Information System GMO genetically modified organism GMP good manufacturing practice HR Human Resources HRD Human Resources Development HRMP Human Resources Management Plan IBSA India, Brazil and South Africa ICT Information and Communication Technology IFS Interim Financial Statement IFSS Integrated Fisheries Security Strategy IGDP Integrated Growth and Development Plan IMF International Monetary Fund IPAP Industrial Policy Action Plan ITSC International Trade and Security Cluster KIM Knowledge and Information Management KZN KwaZulu-Natal DAFF Strategic Plan 2013/14–2017/18 v LIMP Limpopo Mafisa Micro-agricultural Financial Institutions of South Africa MCM Marine and Coastal Management MDG Millennium Development Goal M&E Monitoring and Evaluation MLRF Marine Living Resources Fund MoU Memorandum of Understanding MSP Master Systems Plan MTEF Medium Term Expenditure Framework MTSF Medium Term Strategic Framework NAMC National Agricultural Marketing Council NDP National Development Plan Nedlac National Economic Development and Labour Council NGP New Growth Path NFAP National Forestry Action Programme NFP National Forestry Programme NT National Treasury NW North West OBP Onderstepoort Biological Products OECD Organisation for Economic Cooperation and Development PDA Provincial Department of Agriculture PDI previously disadvantaged individual PFMA Public Finance Management Act PICC Presidential Infrastructure Coordinating Commission PMDS Performance Management and Development System PPECB Perishable Products Export Control Board PPP Public Participation Programme PSETA Public Service Sector Education and Training Authority PSP project service provider QRM Quarterly Review Meeting R&D Research and Development RFMO Regional Fisheries Management Organisation RSA Republic of South Africa SA South Africa SADC Southern African Development Community SACU Southern African Customs Union SAQA South African Qualifications Authority SDIP Service Delivery Improvement Plan SFM Sustainable Forest Management SG strategic goal SHG self-help groups SIP Strategic Integrated Project SITA State Information Technology Agency SLA Service Level Agreement SMS Senior Management Service SMME small, medium and micro enterprises SONA State of the Nation Address SO strategic objective SOE state-owned entity SRPP Social Responsibility, Policies and Programmes SSA State Security Agency TAC total allowable catch TAE total allowable estimate TUP temporary unplanted areas UN United Nations VoIP Voice over Internet Protocol WC Western Cape WFFP Working for Fisheries Programme WFFP World Forum of Fisher Peoples WTO World Trade Organization DAFF Strategic Plan 2013/14–2017/18 vii I hereby present the Strategic Plan for the Department of Agriculture, Forestry and Fisheries 2013/14 to 2017/18 to Parliament for the Medium Term Expenditure Framework (MTEF) period. In this Strategic Plan, we focus on challenges facing the agriculture, forestry and fisheries sectors and set new targets to improve service delivery for the next five years. In our planning we were guided by government’s key policies to develop programmes and projects for the next five years. These policies are the National Development Plan (NDP), the New Growth Path (NGP), the Industrial Policy Action Plan 2 (IPAP2) and the work of the Presidential Infrastructure Coordinating Commission (PICC). We will only reach the goals of a developmental state when our people gain access to food within an economy that promotes sustainable livelihoods. For this reason, we are actively participating in government’s drive in ending the triple challenges of poverty, inequality and unemployment by adapting policies and strategies that prioritise the basic needs of our people, especially in rural areas. Our focus is to ensure production by means of promoting entrepreneurship in the agricultural, forestry and fisheries sectors. FOOD SECURITY Various factors pose a threat to South Africa’s food security status, particularly climate change and increasing food prices. Although the country is food secure at national level, at household level more than 20% of the population is vulnerable to food insecurity. Two main factors contribute to food vulnerability, namely unavailability and unaffordabil ity. While government has introduced a number of job-creation programmes to address this, if there is not enough food produced locally, communities would still suffer food insecurity. This is, in fact, the situation with many communities in South Africa at the moment. Ms Tina Joemat-Pettersson DAFF Strategic Plan 2013/14–2017/18 viii The Food Security Production Programme is therefore aimed at ensuring food availability at local and household levels. The aim of government is to support farmers to ensure food production on the identified 1 million ha of underutilised land through mechanisation services, production inputs and marketing of produce. Maize and beans will be prioritised as most of our rural communities already produce these crops. As part of this programme, provinces will identify com munities, smallholder farmers and businesses to participate. The involvement of private contractors will be beneficial in supporting communities to utilise the land, particularly underutilised high-potential production areas. Furthermore, the use of contractors will also speed up the creation and support of small, medium and micro enterprises (SMMEs) and in this way, contribute towards employment creation and economic growth. SMALLHOLDER FARMERS AND COOPERATIVES The provision of assistance to cooperatives and smallholder farmers remains a major task for the department. Through the establishment of small-scale cooperatives smallholder farmers can be developed to increase productivity and in come by helping them collectively to negotiate better prices for seeds, fertiliser, transport and storage. Cooperatives further help farmers expand market access and capture more of the value chain by getting involved in agro-processing activities. Through the cooperatives unit of the Department of Trade and Industry, the establishment of small-scale cooperatives has been facilitated. AGRO-PROCESSING Investment in agro-processing will be increased as a means of reinvigorating specific strategic value chains such as soya beans, rooibos, beverages, fruit and vegetables, as well as forestry. An equitable food-security economy will im prove access to markets, especially for smallholder farmers. It is important that we seek to increase the extent to which we export processed rather than unprocessed agricultural products. FORESTRY Forestry is regarded as a vehicle for social upliftment and provides an opportunity for thousands of small entrepreneurs to enter the formal forestry markets. Forests and woodlands, as well as the commercial tree plantation industry, support the livelihoods of millions of South Africans, particularly in rural areas. Challenges such as stressed environments and looming climate change threats, have forced government to rise to the occasion to adhere to new stringent regimes for sustainable forest management, as well as legal protection for all natural forests. FISHERIES One of our main focus areas in the fisheries sector is to provide development and assistance to communities in coast al areas. Several research and development projects have been identified, including aquaculture. The aquaculture sector provides direct permanent employment opportunities mostly to poor coastal communities, alleviating poverty in disadvantaged areas. The fisheries sector can also largely benefit from development and assistance through SMMEs. Through the Small-scale Fisheries Policy we aim to broaden access to communities, promote partnerships and joint management of limited marine resources. CONCLUSION In conclusion, I wish to extend my appreciation to my Deputy Minister, Dr Pieter Mulder, for his commitment towards the agricultural, forestry and fisheries sectors. Secondly, I would like to express my gratitude to the Chairpersons and Members of the Portfolio and Select Committees on Agriculture, Forestry and Fisheries in the National Assembly and the National Council of Provinces for their guidance and oversight. I would also like to thank the agricultural industry, organised agriculture and our agribusiness partners for their efforts to achieve the economic prosperity of the sector. Lastly, I want to thank the department, provincial departments and state-owned entities for their spirit of cooperation in meeting the objectives of the department. As South Africans we should strive to make our country a truly great and prosperous nation! Ms Tina Joemat-Pettersson MINISTER OF AGRICULTURE, FORESTRY AND FISHERIES DAFF Strategic Plan 2013/14–2017/18 ix The Agriculture, Forestry and Fisheries sectors are facing huge challenges. As the Strategic Plan for the Department of Agriculture, Forestry and Fisheries 2013/14 to 2017/18 is presented, South 8 Africa faces a big crisis with regard to unemployment. The sectors have the potential to contribute significantly to job creation. However, there are many political and economic factors which compromise this potential. We now, more than ever, require a committed partnership between the private and public sector organs. We must strive to keep this partnership aligned in order to realise our strategic objectives. The department’s key priorities are ranged to effectively address food security and safety, amid the current socio economic circumstances and an ever-changing environment with a growing population and urbanisation. These key priorities still remain food security, job creation and rural and economic development. I thank the Minister for her commitment and the department, organised agriculture, state-owned entities and the industry for their cooperation. Dr Pieter Mulder DEPUTY MINISTER OF AGRICULTURE, FORESTRY AND FISHERIES Dr Pieter Mulder DAFF Strategic Plan 2013/14–2017/18 x The Strategic Plan for the Department of Agriculture, Forestry and Fisheries 2013/14 to 2017/18 is hereby submitted to8 the Minister of Agriculture, Forestry and Fisheries for approval and tabling in Parliament. The Strategic Plan complies with the guidelines provided by National Treasury and the Department of Public Service and Administration (DPSA). In compiling this Strategic Plan, we were guided by government’s broad national challenges in terms of the Medium Term Strategic Framework (MTSF) priorities for the next five years. Our service delivery targets are aligned with the 12 key outcomes for government to be implemented through intergovernmental cooperation over the MTEF period. The Department of Agriculture, Forestry and Fisheries (DAFF) focuses on the implementation of three of the 12 outcomes to achieve related outputs. These three national outcomes are: Outcome 4: Decent employment through inclusive economic growth Outcome 7: Vibrant, equitable and sustainable rural communities contributing towards food security for all Outcome 10: Protect and enhance our environmental assets and natural resources. During our planning for the next five years, the department was also guided by government’s key policies, namely the National Development Plan (NDP), the New Growth Path (NGP), the Industrial Policy Action Plan 2 (IPAP2) and the Presidential Infrastructure Coordinating Commission (PICC). The department integrated the IPAP2 and NGP into the Integrated Growth and Development Plan (IGDP) for agriculture, forestry and fisheries. The goals of the IGDP include attaining equity and transformation, economic growth and competitiveness, as well as environmental sustainability and good governance. The NGP has identified agriculture as a significant sector for the creation of jobs and an area with the potential for growth and development. Although the contribution of agriculture to the gross domestic product (GDP) is just below 3%, the total contribution, including industries dependent on agriculture, is about 23%. The agriculture value chain is one of the priority sectors in government’s IPAP2 for economic growth and job creation. Mr Sipho Ntombela DAFF Strategic Plan 2013/14–2017/18 xi A modest economic growth rate of 3% is expected for 2013 compared to the slow average rate of 2,5% in 2012. The expected rate is mainly supported by the depreciation of the Rand (which is favourable to exports), the effects of the strikes in the mining and transport sectors, the effect of the farm workers’ strikes in the Western Cape, improved busi ness confidence index, the Infrastructure Capital Investment Programme and the NDP. Weather conditions, commodity prices, input costs, stock levels, consumption demand and exchange rates, are also expected to influence production. The impact of the drought in the US and other grain-producing countries has led to higher maize and wheat prices worldwide and resulted in significant increases in local maize-meal and bread prices. This will unfortunately have a negative impact on the affordability of food and food insecurity in our country. Expectations for the local market are positive for 2013, as both field crops and livestock industries are expected to grow. At present, product prices for the production of field crops are at record levels, while livestock and dairy enter prises will be under considerable strain until grain and oilseed prices decline as a result of a supply response. Local meat and dairy prices should improve as production is expected to be relatively stagnant because of high feed prices. Other new policy initiatives have been aimed at achieving the objectives of Outcome 4 and Outcome 7 relating to job creation, food security and rural development. Planned policies to be developed in a number of important areas in 2013 include the following: • Strategic Infrastructure Project (SIP) 11, which aims to improve investment in infrastructure to support agricul tural production, employment (with the focus on forestry and fisheries), small-scale farming and rural development. • Extension Recovery Programme, which aims to develop a national policy on extension and advisory services to, among others, consider alternative extension methodologies, alternative institutional arrangements for providing services and creating a professional body to advance the extension profession. • National Mechanisation Programme, initiated in 2010/11, will be revised to improve institutional arrangements regarding the operation and maintenance of implements; ensure broader access; and advance the shift towards agro-ecological agriculture. • Policy and programme on inland fisheries with the focus on developing economic opportunities around existing storage dams and rivers will be prioritised. • Agro-ecological agriculture (conservation agriculture), with the aim of developing a comprehensive approach to agro-ecological agriculture has been identified for urgent attention. • A policy on supporting labour-intensive commercial agriculture will be developed to address the concern of pos sible loss of wage jobs on commercial farms. • A strategy on urban agriculture (including peri-urban agriculture) has been identified for development. In this Strategic Plan, we will focus on major social and economic challenges facing the agriculture, forestry and fisher ies sectors by means of actions to accelerate service delivery regarding employment creation, food security, rural de velopment and skills development. The DAFF will continue to work towards clear, measurable targets and objectives, assessing our performance on a quarterly basis to ensure maximum performance on the deliverables in terms of the MTSF priorities. Budgets have also been aligned to address government’s national challenges and our output will be determined by clear targets to increase the pace of service delivery over the next five years. This Strategic Plan is structured in three parts. Part A provides a strategic overview and the mission statement of the DAFF, legislative and policy mandates, a situational analysis of the agriculture, forestry and fisheries sectors, the organi sational environment, as well as strategic goals and objectives. Part B focuses on deliverables for the MTEF cycle andB provides an overview, a problem statement, an implementation strategy and planned expenditure for the six budgetary programmes for 2013/14 to 2017/18, as allocated by National Treasury. Part C contains information on the public entities, i.e., the Agricultural Research Council, the Marine Living Resources Fund, the National Agricultural Marketing Council, Ncera Farms (Pty) Ltd, Onderstepoort Biological Products Ltd and the Perishable Products Export Control Board. Lastly, the Annual Performance Plans (APPs) of the six departmental programmes are reflected in Annexure 1 and contain performance indicators and targets, presented in relation to the strategic goals and objectives. Annexure 2 contains the department’s Service Delivery Improvement Plan (SDIP), with the focus on the improvement of service delivery standards. I wish to express my appreciation to the Minister, the Deputy Minister and the Chairpersons of the Parliamentary Committees for their guidance and support. Secondly, I would like to extend my gratitude to the agricultural state owned entities, the agribusiness community and farmers’ organisations for their contribution. Lastly, I would like to thank my management team and all the staff members in the department for their dedication and efforts in contributing to the development of this Strategic Plan. Mr Sipho NtombelaMr Sipho Ntombel ACTING DIRECTOR-GENERAL: AGRICULTURE, FORESTRY AND FISHERIES DAFF Strategic Plan 2013/14–2017/18 xii agriculture, forestry & fisheries Department: Agriculture, Forestry and Fisheries REPUBLIC OF SOUTH AFRICA OFFICIAL SIGN-OFF It is hereby certified that this Strategic Plan was developed by the management of the Department of Agriculture, Forestry and Fisheries under the guidance of Ms T.M. Joemat-Pettersson, taking into account all the relevant policies, legislation and other mandates for which the department is responsible for. Accurately reflects the strategic outcome oriented goals and objectives which the department will endeavour to achieve over the period. Mr J.B. Hlatshwayo CHIEF FINANCIAL OFFICER Mr A.M. Hawes HEAD OFFICIAL RESPONSIBLE FOR PLANNING Mr S.I.S. Ntombela ACCOUNTING OFFICER Approved by: Ms T.M. Joemat-Pettersson EXECUTIVE AUTHORITY PART A Strategic overviewStrategic overview DAFF Strategic Plan 2013/14–2017/18 2 VISION A leading, dynamic, united, prosperous and people-centred sector MISSION Our vision will be achieved through developing and sustaining a sector that contributes and embraces: • Economic growth (and development) • Job creation • Rural development • Sustainable use of natural resources • Food security VALUES Drive: driven to deliver excellent service Attitude: being an ambitious, passionate, reliable and dedicated workforce Fairness: acting with objectivity, empathy, integrity and transparency Focus: focusing on people, economic and rural development Legislative and other mandates Legislative and other mandates The Department of Agriculture, Forestry and Fisheries’ legal mandate covers the agriculture, forestry and fisheries value chains: from inputs, production and value adding to retailing. LEGISLATIVE MANDATE The entire legislative mandate of the DAFF is derived from section 27(1) (b) of the Constitution. The department is primarily responsible for Acts related to agriculture, forestry and fisheries. The following Acts reflect the legislative mandate of the department: • Performing Animals Protection Act, 1935 (Act No. 24 of 1935) • Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act, 1947 (Act No. 36 of 1947) • Animal Protection Act, 1962 (Act No. 71 of 1962) • Fencing Act, 1963 (Act No. 31 of 1963) • Subdivision of Agricultural Land Act, 1970 (Act No. 70 of 1970) • Plant Breeders’ Rights Act, 1976 (Act No. 15 of 1976) • Plant Improvement Act, 1976 (Act No. 53 of 1976) • Veterinary and Para-veterinary Professions Act, 1982 (Act No. 19 of 1982) • Perishable Products Export Control Act, 1983 (Act No. 9 of 1983) • Agricultural Pests Act, 1983 (Act No. 36 of 1983) • Conservation of Agricultural Resources Act, 1983 (Act No. 43 of 1983) • Sea Fishery Act, 1988 (Act No. 12 of 1988) (certain sections i.e.: (i) section 29; (ii) sections 1, 47, 48 and 50 insofar as they relate to the powers and functions transferred by section 29) • Animal Improvement Act, 1988 (Act No. 62 of 1988) • Liquor Products Act, 1989 (Act No. 60 of 1989) • Agricultural Research Act, 1990 (Act No. 86 of 1990) • Agricultural Product Standards Act, 1990 (Act No. 119 of 1990) Mission statementMission statement PART A: Strategic overview 3 • Animal Diseases Amendment Act, 1991 (Act No. 18 of 1991) • Agricultural Produce Agents Act, 1992 (Act No. 12 of 1992) • Groot Constantia Trust Act, 1993 (Act No. 58 of 1993) • Societies for the Prevention of Cruelty to Animals Act, 1993 (Act No. 169 of 1993) • Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996) • Agriculture Laws Extension Act, 1996 (Act No. 87 of 1996) • Genetically Modified Organisms Act, 1997 (Act No. 15 of 1997) • Marine Living Resources Act, 1998 (Act No. 18 of 1998) (certain sections i.e. : (i) sections 5 to 7, 10 to 15, 17, 18 to 27 and 29 to 41, 44 to 50; (ii) sections 1 to 4, 8, 9,13, 16, 28, 42 and 51 to 83 insofar as they relate to the powers and functions transferred under item (i) above) • Subdivision of Agricultural Land Act Repeal Act, 1998 (Act No. 64 of 1998) • Agricultural Laws Rationalisation Act, 1998 (Act No. 72 of 1998) • National Forests Act, 1998 (Act No. 84 of 1998) • National Veld and Forest Fire Act, 1998 (Act No. 101 of 1998) • Onderstepoort Biological Products Incorporation Act, 1999 (Act No. 19 of 1999) • Meat Safety Act, 2000 (Act No. 40 of 2000) • Agricultural Debt Management Act, 2001 (Act No. 45 of 2001) • Animal Identification Act, 2002 (Act No. 6 of 2002) • Animal Health Act, 2002 (Act No. 7 of 2002) • KwaZulu Cane Growers’ Association Act Repeal Act, 2002 (Act No. 24 of 2002) POLICY MANDATES Key policy developments DAFF began to work on the Integrated Growth and Development Plan (IGDP) for Agriculture, Forestry and Fisheries, in 2009/10. Over the past year, DAFF has integrated the IPAP2 and the New Growth Path to the Integrated Growth and Development Plan (IGDP) for Agriculture, Forestry and Fisheries. The IGDP seeks to provide a strong intellectual under pinning to DAFF’s vision and programmes, taking cognisance of the dynamics of each of the three sectors, including their economic, social and environmental dimensions. Otherwise, most of the new policy initiatives at DAFF are focused on fulfilling the requirements of Outcome 4 and Outcome 7, relating respectively to job creation, rural development and food security. The following are highlighted: The Food Security Production Programme seeks to link subsistence producers and smallholder producers to govern ment institutions such as government schools (i.e. to supply the School Nutrition Programme), public hospitals and prisons, and in the medium term be a conduit through which food produced by smallholders can be used to meet the nutritional needs of low-income individuals and households in communities at large. As such, the Food Security Production Programme seeks to provide a boost to existing smallholder producers and an opportunity through which heretofore subsistence producers can start generating a sustainable income through farming and thereby become smallholder producers in their own right. The Food Security Production Programme implementation is already being tested and refined through the collaboration of DAFF/DRDLR and the provincial departments of agriculture and is being linked to the Ilima/Letsema Programme. The Strategic Plan for Supporting Smallholder Producers is a broader initiative that seeks to improve coordination of support to smallholder producers and in doing so improve the success and number of smallholder producers. It seeks to do this by means of better aligning—and where necessary adjusting—what are in effect a large number of distinct functions of support, e.g., extension, cooperatives development, marketing, mechanisation, financial services, spatial planning, etc. The plan also seeks to identify innovative means by which support to encourage the participation can be made more meaningful to smallholder development, for instance by promoting land rental markets and by effectively using land acquired via land redistribution. Work on the Strategic Plan for supporting Smallholder Producers began in 2011/12 and will be completed and formalised in July 2013. As a complementary measure, in order to fast track the shift towards a more efficacious way of supporting the smallholder sector, DAFF has initiated the Smallholder Development Working Group, which comprises representatives from provincial departments of agriculture, the Agricultural Research Council, the DRDLR, the Economic Development Department, and DAFF. The Aquaculture Programme is at present being implemented by means of fish production projects around the country, in partnership with the Department of Trade and Industry. The programme is guided by the National Aquaculture Strategic Framework, which is undergoing final consultation. While at present focusing on primary production, the programme is DAFF Strategic Plan 2013/14–2017/18 4 attentive to the upstream and downstream parts of the value chain. DAFF has established an Aquaculture Development Zone in the Eastern Cape, through a partnership with East London Industrial Development Zone. Two further identified zones are undergoing EIA processes. DAFF has completed the establishment of an Aquaculture Demonstration Centre in partnership with Free State Agriculture and the Chinese government. To date, DAFF has facilitated the establish ment of at least 10 fish farms. DAFF has initiated the elaboration of its Agro-processing Strategic Framework, covering up to 2016. Agro-processing is one of the sectors identified in both the IPAPs and NGP as potentially capable of creating jobs on a large scale. This is validated by the fact that agro-processing—and in particular food processing—is one of the sectors with the highest employment multipliers in the economy. The NGP forecasts the creation of 145 000 jobs in agro-processing by 2020. The central challenge that remains is how the potential that has been identified can be realised in practice. The Strategic Framework, which was approved by DAFF in March 2012, is a contribution towards the efforts of the rest of the economic cluster departments in terms of how the agriculture, forestry and fisheries sectors could be supported to achieve the agro-processing job creation and related government priority targets. PLANNED POLICY INITIATIVES In the coming year, DAFF anticipates to develop policies in a number of important areas, including the following: • The SIP 11 aims to improve investment in infrastructure that supports the expansion of agricultural production and employment (understood here to include forestry and fisheries), small-scale farming and rural development. This SIP will be implemented in coordination with a number of other SIPs, especially those focused on rural areas and those addressing bulk transport infrastructure. • While there are infrastructural challenges across South Africa that have the effect of hampering the competitiveness of our agricultural sector, in the former homeland areas the problem is especially severe. In effect, the long era of unequal development has not been corrected yet, meaning that large swathes of potentially productive land are not being used optimally, further contributing to rural unemployment and underemployment. • While the Extension Recovery Programme can claim a number of successes—for instance by materially increas ing the presence of extension officers on the ground—it is widely recognised that it is not adequate in either scale or scope. DAFF is embarking on a process of creating a national policy on extension and advisory services, which, among other things, will consider alternative extension methodologies, possible alternative institutional arrange ments for providing extension services (including the “public-private partnerships” in the overall extension system), and the creation of a professional body to help advance the extension profession. • While a National Mechanisation Programme was initiated in 2010/11, it is broadly recognised that it requires an overhaul. The key issues that require further elaboration are: what kind of institutional arrangements should be re sponsible for the operation and maintenance of such implements; how to ensure broader access to mechanisation services on a sustainable basis; and how to use the Mechanisation Programme as a means of advancing the shift towards agro-ecological agriculture. • Following on the heels of DAFF’s promising launch of its Aquaculture Programme, in the coming year, DAFF antici pates creating a policy and programme on inland fisheries. The development of inland fisheries involves develop ing further economic opportunities around generally existing fish stock within freshwater bodies and rivers. In the South African context, the main target is storage dams, of which there are over 3 000 around the country. (Aquaculture by contrast usually involves more purpose-built earthworks and/or other infrastructure, as well as modification of the water environment to make it nutrient rich.) The job creation potential of such an initiative is in the tens of thousands, most likely without requiring massive investment. Another virtue of this development is that it has particular potential to promote job creation within the former homelands, where many storage dams have been built, and where their recreational and fish-harvesting potential have been especially neglected. Most dams in South Africa are under the jurisdiction of the Department of Water Affairs, while the fish in these dams are under the Department of Environmental Affairs. The development of an inland fisheries policy will, therefore, require close collaboration with these two de partments. • In the previous Strategic Plan, agro-ecological agriculture (roughly synonymous with “conservation agriculture”) was identified as an area for urgent attention, however, little progress has been made. DAFF has since entered into discussions with the Food and Agriculture Organization of the UN, for assistance in developing a comprehensive approach to agro-ecological agriculture. • The loss of wage jobs on commercial farms is of increasing concern. DAFF therefore intends to develop a policy for supporting labour-intensive commercial agriculture, possibly as part of a broader policy to render greater tar geted support to those commercial farms at the smaller end of the commercial spectrum; these farms account for a disproportionate share of employment, but are at particular risk of going out of business. PART A: Strategic overview 5 • While urban agriculture is supported by various levels of government and certainly by civil society organisations, there remains a need to create an encompassing strategy on urban and peri-urban agriculture. The purpose of such a strategy would be to promote best practice, enhance the role of agriculture in urban and peri-urban livelihoods and improve coordination and cooperation among role players in this field. A particular focus of such a strategy would possibly be on using agriculture to support residents of informal settlements at the fringes of towns and cities. SECTOR JOBS Expanded Public Works Programme jobs by Land Use and Soil Management The LandCare Programme, resorting under the Expanded Public Works Programme (EPWP), participates within the land-based livelihoods category of the Environment and Culture sector. The programme deploys labour intensive mechanisms within its project implementation under the SoilCare, VeldCare and WaterCare themes. The labour inten siveness of the LandCare Programme is among the best in the country, being above 30% of the project allocations going to labour wages and other allocations used to advance the skills development of the beneficiaries. The pro gramme remains the key driver in attaining green jobs within the framework of a green economy, thereby addressing the presidential outcome on job creation. The programme is targeting to achieve 874 000 job opportunities, which is equal to 3 800 Full-time Equivalents (FTEs), over four years through LandCare. During the 2013/14 financial year, the programme is targeting 1 100 FTEs. The FTEs targeted by the programme reflect almost 299 000 man days of a person working for the entire year. This presents huge job opportunities for many unemployed people to have decent work for 230 days of the year and being paid in line with EPWP labour ministerial determination. The programme has a potential to create three times the number of jobs owing to its well-established community-based natural resource management and governance systems if additional funds could be added to this programme. The programme is currently among the best programmes in terms of EPWP, with an allocation of R115 million a year even outcompeting most of the multimillion rand programmes. DAFF’s contribution to job creation over the MTSF Key outcome 4: Decent employment through inclusive economic growth Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 1: Increased growth, income and sustainable job opportunities in the value chain Indicator 2013/14 2014/15 2015/16 2016/17 Number of LandCare jobs created (874 000 opportunities = 3 800 FTEs) 1 100 FTEs 900 FTEs 900 FTEs 900 FTEs Number of jobs created through refurbishment of Category B and C plantations 2 725 jobs 2 200 jobs 2 400 jobs 2 400 jobs Increased the number of job opportunities (Working for Fisheries Programme) 1 100 jobs 1 150 jobs 1 200 jobs – Job creation through refurbishment of Category B and C plantations Category B and C plantations comprise an estimated 64 000 ha of plantations managed by the department throughout the country and are mainly situated on state land or Ingonyama Trust land. These plantations remained the responsibil ity of the department after the majority of the most economically viable plantations categorised as A, were transferred to the private sector during the restructuring of state assets. These plantations are less productive owing to delayed maintenance regimes such as replanting, tending, delayed felling and lack of sound fire protection measures. The activities or operations listed above are labour intensive in nature and, as demonstrated in the past, have the poten tial to create job opportunities for rural communities who reside in the vicinity of these plantations. Given their current state, a huge workforce would be sought to turn them around into viable entities. The kind of intervention needed to turn around these plantations would, among others, require a considerable work force to conduct the weeding, road maintenance, thinning, pruning and harvesting of matured stands. During winter most of the plantations are exposed to fire risk owing to dry seasons. To mitigate fire spread into plantations and sur rounding properties, firebreaks must be cleaned or ploughed. In some cases, herbicides are used to spray weeds on these fire belts or breaks. DAFF Strategic Plan 2013/14–2017/18 6 Owing to lack of funding, most of the plantations are not planted, which results in the decline of timber production in the long term. To plant these areas that are lying fallow, a huge number of workers would be needed. A hectare requires at least four workers a day. If an average 30 000 ha of land under plantation forestry are to be turned around over a period of time, an estimated 7 500 jobs would have to be created. The EPWP also provides an opportunity for forestry through its credit system for the number of workers that the depart ment employs. If an estimated 7 500 jobs are to be created by the department over a period of five years, the number of FTEs would increase to 3 750 over a period of five years. The Working for Fisheries Programme The Working for Fisheries Programme (WFFP) of the DAFF is a product of the Social Responsibility, Policies and Programmes (SRPP) of the former Department of Environmental Affairs and Tourism (DEAT). The programme was established after the transfer of the former Marine and Coastal Management (MCM) Branch of DEAT to DAFF. The main objective of the programme is to contribute towards poverty alleviation through interventions that are public driven. The programme contributes to the following government-wide outcomes: Outcome 4: Decent employment through inclusive economic growth. Outcome 7: Vibrant, equitable and sustainable rural communities contributing towards food security for all. Outcome 10: Protect and enhance our environmental assets and natural resources. The vision of the programme is to have fishing communities and individuals adopt ecologically sustainable approaches to the management of South Africa’s fisheries resources, while improving their livelihoods. This implies that cultivation (aquaculture) and harvesting of fisheries resources should be managed in such a manner that degradation of aquatic environments and overexploitation of fish stocks are curtailed. The programme also aims to provide alternative liveli hood options for rural and coastal communities. The following are expected outcomes of the programme: • Successful partnerships between communities, the private sector and government in the management of aquatic environments and fisheries resources; • Strong institutional arrangements to develop and implement policies, programmes and practices that will encourage the sustainable use of fisheries resources; • Skilled community members to promote sustainable development and livelihood options; • EPWP jobs created in fishing communities, curtailing high unemployment rates; • Established business enterprises with a sustainable fisheries management and related focus; • Long-term productivity of fisheries resources. Situational analysisSituational analysis PERFORMANCE ENVIRONMENT—SECTOR PERFORMANCE Economic setting It is difficult to imagine that it is already five years since the start of the global financial crisis of 2007/08 and accompany ing deep worldwide recession. Its effects are still being felt, and will continue to do so for a long while. With governments and households focused on paying off debt in the developed countries, the next five years will likely see modest growth in these markets. In contrast, emerging markets have performed reasonably well. Indeed, emerging markets—especially China—have largely been responsible for driving the global economy in recent years. With lower overall debt levels, emerging market economies have been more responsive to stimulus in the form of extra state spending and interest rate cuts. However, even in emerging markets, growth slowed in 2012, because in the globalised world, even dynamic emerging markets rely on the big developed markets as sources of demand. During 2012, the local economy also showed signs of slowing down and grew at an average rate of about 2,5% compared to an expected growth rate of 3,0% in 2013. Sluggish growth in 2012 can mainly be ascribed to the recession in Europe and the economic slowdown elsewhere (most of our agricultural and manufacturing exports go to Europe, while most of our commodity exports go to China), and no country is immune to the impact of an American slowdown. Modest eco nomic growth is expected in 2013, supported mainly by the depreciation of the rand, which theoretically makes local ex ports more competitive, the conclusion of strikes in the mining and transport sectors, although farm workers` strikes in the PART A: Strategic overview 7 Western Cape are a cause for concern, government’s infrastructure capital investment programme, improved business confidence index and emphasis on the National Development Plan, are seen as a blueprint for accelerating economic growth and job creation. The Reserve Bank also faces an increasingly tricky balancing act with a slowing economy and inflation creeping up. Inflationary pressures are mainly in the form of rising food, fuel and electricity prices. Agricultural commodity markets experienced significant volatility during 2012 as the balance between supply and de mand tightened, while markets were also influenced by exogenous forces. Apart from the weather, stronger linkages between agricultural commodities and energy markets through inputs such as fuel and fertiliser, and through the de mand for feedstock in the biofuels industry, have strengthened the transmission of volatility in the energy markets to agricultural markets. This implies that world economic growth and volatility not only direct agricultural markets through food demand, but also through energy demand. In this regard, projections by the OECD and IMF show a gradual de cline in GDP growth rates for all major economies beyond 2013. These projections are based on the assumption that the major developing economies such as China and India will attempt to curb inflation, which is likely to result in energy prices remaining at reasonable levels. Therefore, with declining economic growth rates and stable energy prices, the long-term outlook on world prices is at a higher level than the past decade, but relatively flat for most of the agricultural commodities. Regarding prospects for the local market during 2013, the production of field crops is expected to expand as product prices are currently at record levels, all livestock and dairy enterprises will come under great strain until grain and oil seed prices decline owing to a major supply response under the assumption of normal weather conditions. Local meat and dairy prices should improve as production is expected to be relatively stagnant on the back of high feed prices. Therefore, in 2013 both the field crop and livestock industries are expected to grow. The real gross income of the agri cultural sector is also projected to grow by 7% in 2013, following an increase of 6% in 2012. However, over the long term, growth rates are expected to decline in real terms as agricultural commodity prices trade sideways under the assumption of a slowing down of the world economic growth rate and the expansion and intensification of agricultural production practices. The Quarterly Labour Force Survey of Statistics SA shows that for Q3 of 2012, there were an estimated 661 000 farm jobs in South Africa, indicating an increase of 23 000 from Q2 of 2012, and representing a year-on-year improvement of 37 000 jobs. From an all-time low of 598 000 jobs in Q2 of 2011, it represents an increase of 10,5%. Furthermore, estimates based on the General Household Survey of Statistics SA suggest that between 2009 and 2011, the number of smallholder households has increased by almost 87 000 from 109 000 to 195 000. This is relative to a targeted in crease of 50 000 between 2009 and 2014, but with a recalculated baseline. In addition, the number of subsistence households has increased by 370 000. AGRICULTURAL SECTOR Production The estimated volume of agricultural production in 2011/12 was 2,1% higher than in 2010/11. The volume of field crop production reflected a 5,2% increase, mainly as a result of an improvement in the production of winter cereals, maize and sugar cane. Wheat production increased by 577 554 tons or 40,2% and maize production increased by 551 000 tons or 5,0% from the previous season. Sugar cane showed an increase of 2,1 million tons or 12,5% from 2010/11. Horticultural production also showed an increase of 1,7%, which can mainly be attributed to an increase in the produc tion of citrus and deciduous fruit. The production of oranges increased by 80 724 tons or 5,7% and that of grapefruit by 72 544 tons or 21,2%. Deciduous fruit, specifically wine grapes and table grapes, increased by 41 549 tons (2,5%) and 11 342 tons (4,3%), respectively. Furthermore, animal production increased by 1,0% as a result of increases in poultry meat (by 19 093 tons or 1,3%) and eggs (by 40 504 tons or 5,2%) from 2010/11. Field crops Horticulture Animal products 140 130 120 110 100 90 2 0 0 5 = 1 0 0 Volume index of agricultural production 2007/08–2011/12 (July to June) Year 2007/08 2008/09 2009/10 2010/11 2011/12 DAFF Strategic Plan 2013/14–2017/18 8 Factors such as weather conditions, commodity prices, input costs, stock levels, consumption demand and exchange rates are once again expected to influence production. In 2013, the country is expected to reach its highest area under the production of field crops since 2004 by expanding production by almost 300 000 ha on the back of increases in commodity prices that are expected to exceed the increase in input costs by a significant margin in the 2012/13 produc tion season. The impact of the drought in the US and other important grain producing countries has led to higher world and local maize and wheat prices, resulting in significant increases in local maize-meal and bread prices. Producer prices of agricultural products Producer prices of agricultural products increased on average by 15,5% from 2010/11 to 2011/12. The weighted average price of field crops increased by 31,7%. There were increases in the prices of summer grains (65,2%), dry beans (27,9%), hay (16,6%), cotton (14,0%), sugar cane (8,1%), winter cereals (3,7%), oilseeds (2,1%) and tobacco (1,1%). Producer prices of horticultural products rose by 5,9% from 2010/11 to 2011/12. Prices of vegetables and fruit in creased by 9,1% and 4,6%, respectively, while the average price of viticulture products remained virtually unchanged. Prices of animal products increased by 10,8%. The average prices of pastoral products, slaughtered stock, dairy products and poultry meat increased by 21,4%, 16,5%, 10,4% and 5,7%, respectively. 270 240 210 180 150 120 90 2 0 0 5 = 1 0 0 Producer price indices 2007/08–2011/12 (July to June) Field crops Horticulture Animal products Year 2007/08 2008/09 2009/10 2010/11 2011/12 Gross value of agricultural production The total gross value of agricultural production (total production during the production season valued at the average n basic prices received by producers) for 2011/12 is estimated at R158 557 million, compared to R140 433 million the previous year—an increase of 12,9%. This increase can be attributed mainly to an increase in the value of field crops. Year R ’ m il li o n Gross value of agricultural production 2007/08–2011/12 (July to June) 2007/08 2008/09 2009/10 2010/11 2011/12 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Field crops Horticulture Animal products The gross value of animal products, field crops and horticultural products contributed 47,7%, 27,3% and 25,0%, respec tively, to the total gross value of agricultural production. The poultry meat industry made the largest contribution with 16,9%, followed by cattle and calves slaughtered with 15,9% and maize with 13,5%. Farm sector income The gross income of producers (the value of sales and production for other uses, plus the value of changes in inventories)s for 2011/12 amounted to R161 131 million, compared to R132 189 million the previous year, an increase of 21,9%. The PART A: Strategic overview 9 increase in income can be ascribed to a combination of increases in prices that farmers received for their products, better than expected production and earlier deliveries of maize in particular. The gross income from field crops increased by 63,1% to R45 893 million for 2011/12. Income from maize at R25 872 mil lion was R14 206 million or 121,8% higher than in the previous year. Income from sugar cane at R6 122 million was R1 545 million or 33,7% higher than the previous year. Income from groundnuts increased by 50,9% to R568 million. However, income from sunflower seed showed a decrease of 18,2% to R2 529 million. The gross income from horticultural products increased by 9,2% to R39 623 million, from R36 278 million in 2010/11. s Income from citrus and deciduous fruit increased by 5,2% and 7,6% and amounted to R6 934 million and R10 060 mil lion, respectively. Income from subtropical fruit increased slightly by 0,8% to R2 367 million and viticulture by 0,8% to R3 630 million. Income from vegetable production increased by 13,5% to R14 138 million. The gross income from animal products was 11,6% higher than in 2011/12 and amounted to R75 615 million, compareds to R67 768 million for the previous year. Producers earned R17 643 million from slaughtered cattle and calves, as against the previous R15 089 million—an increase of 16,9%. Income from slaughtered sheep increased by 13,0% to R3 909 mil lion. Income from poultry meat production rose by 7,9% to R26 874 million and income from egg production at R7 447 million was 8,3% higher than in the previous year. Producers earned R10 148 million from milk production, which is 11,5% more than in the previous year. However, income from ostrich products decreased by 26,0% to R295 million. Gross income from major products 2011/12 compared to 2010/11 (July to June) Poultry meat (+7,9%) Red meat (+16,0%) Maize (+121,8%) Fruit (+5,9%) Vegetables (+13,5%) Milk (+11,5%) Sugar cane (+33,7%) 3 0000 6 000 9 000 12 000 15 000 18 000 21 000 24 000 R’ million 2011/122010/11 27 000 The net farm income (after the deduction of all production expenditure, excluding expenditure on fixed assets and e capital goods) amounted to R51 547 million for 2011/12, which is 56,9% higher than in 2010/11. The increase in net farming income is the result of the increase of 21,9% in gross farming income as against an increase of 12,4% in ex penditure on intermediate production inputs and services. Payments for salaries and wages, which represent 11,3% of the total farming costs, amounted to R12 941 million. Interest paid by producers to banks and other financiers during 2011/12 is estimated at R5 451 million, or 4,8% of the total farming costs. R ’ m il li o n 60 000 50 000 40 000 30 000 20 000 10 000 0 Year Net farm sector income (NFI) 2007/08–2011/12 (July to June) 2007/08 2008/09 2009/10 2010/11 2011/12 40 35 30 25 20 15 P e rc e n ta g e NFI (left axis) NFI as % of GFI (right axis) DAFF Strategic Plan 2013/14–2017/18 10 Expenditure on intermediate goods and services Intermediate expenditure refers to the value of goods and services that were purchased for consumption as inputs during the production process. Expenditure on intermediate goods and services during 2011/12 is estimated at R89 353 million, which represents a rise of 12,4% from R79 465 million in 2010/11. Large increases occurred in expenditure on packaging materials (18,4%), dips and sprays (18,2%), seed and plants (18,0%) as well as maintenance and repairs of machinery and implements (16,3%). R ’ m il li o n 10 000 8 000 6 000 4 000 2 000 0 Year Expenditure on intermediate goods and services 2007/08–2011/12 (July to June) 2007/08 2008/09 2009/10 2010/11 2011/12 Maintenance and repairs Packaging materials Dips and sprays Seed and plants Expenditure on farm feeds remained the biggest expenditure item, accounting for 21,6% of total expenditure, followed by 13,9% for fuel, 13,1% for farm services and 10,9% for maintenance and repairs of machinery and implements. Prices of farming requisites Prices of farming requisites rose by 13,8% in 2011/12, compared to an increase of 13,0% the previous year. The price index s of machinery and implements showed an increase of 12,8% for 2011/12. The price index of materials for fixed improvements increased by 7,0% and the combined index of prices of intermediate production inputs and services by 14,2%. 250 225 200 175 150 125 100 2 0 0 5 = 1 0 0 Price indices of farming requisites 2007/08–2011/12 (July to June) Machinery and implements Fixed improvements Intermediate goods and services Year 2007/08 2008/09 2009/10 2010/11 2011/12 The increase of 20,8% in the price of fertilisers made the most significant contribution to the increase in the prices of inter mediate goods and services. The prices of packaging materials, seeds and farm feeds rose by 17,8%, 16,0% and 14,6%, respectively. Domestic terms of trade in agriculture (2005 = 1) The terms of trade indicate the extent to which producer prices received by farmers kept pace with the prices paid for farming requisites. The terms of trade in agriculture strengthened by 1,2%, from 0,85 in 2010/11 to 0,86 in 2011/12. 1,30 1,10 0,90 0,70 2 0 0 5 = 1 Terms of trade in agriculture 2007/08–2011/12 (July to June) Year 2007/08 2008/09 2009/10 2010/11 2011/12 Field crops Horticulture Animal production PART A: Strategic overview 11 The terms of trade for field crops increased by 16,0%, from 1,01 in 2010/11 to 1,17 in 2011/12. In the case of the hor ticultural industry, the terms of trade decreased by 7,0%, from 0,80 to 0,74. The terms of trade for the animal production industry declined by 2,5%, from 0,80 to 0,78. Capital assets and investment in agriculture The value of capital assets in agriculture as at 30 June 2012, is estimated at R257 417 million, as against R232 708 million at the end of June 2011—an increase of 10,6%. Land and fixed improvements constituted R152 247 mil lion, machinery and implements R49 049 million and livestock R56 121 million of the total value of capital assets. The gross investment in respect of fixed improvements increased by 3,7% to R4 158 million. In the case of machinery, im plements and vehicles, investment increased by 42,0% and amounted to R9 300 million. The livestock inventory rose by R214 million from the previous year. R ’ m il li o n Year 2007/08 2008/09 2009/10 2010/11 2011/12 11 000 9 000 7 000 5 000 3 000 1 000 –1 000 Fixed improvements Machinery and implements Change in live stock inventory Investment in agriculture 2007/08–2011/12 (July to June) Farming debt The total farming debt as at the end of June 2012, is estimated at R85 130 million (R75 250 million), an increase of 13,1%. Year Agricultural debt 2007/08–2011/12 (July to June) 2007/08 2008/09 2009/10 2010/11 2011/12 R ’ m il li o n 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 35 32 29 26 23 20 P e rc e n ta g e Debt (left axis) Debt as % of assets (right axis) Cash flow of producers The cash flow of producers amounted to R52 017 million for 2011/12, compared to the previous R33 976 million, a significant increase of 53,1%. This was mainly the result of a significant increase in the gross income of producers. Year Cash flow of farmers 2007/08–2011/12 (July to June) 2007/08 2008/09 2009/10 2010/11 2011/12 R ’ m il li o n 60 000 50 000 40 000 30 000 20 000 10 000 0 38 34 30 26 22 P e rc e n ta g e Cash flow (left axis) Cash flow as % of GFI (right axis) DAFF Strategic Plan 2013/14–2017/18 12 Consumption expenditure on food The consumption expenditure on food for the year which ended 30 June 2012 increased by 12,4% and amounted to R401 300 million, as against the R356 970 million of the previous year. Expenditure on meat increased by 12,0% to R130 519 million, on bread and grain products by 16,4% to R111 379 million, on sugar by 16,5% to R6 578 million, on milk and milk products and eggs by 7,7% to R41 800 million. Fruit and vegetables (including potatoes) as well as oils and fats also showed increases of 6,3% to R54 966 million and 34,8% to R8 702 million, respectively. Meat represented 33% of the expenditure on the food component; bread and grains 28%; fruit and vegetables (includ ing potatoes) 14%; milk and milk products and eggs 10%; and sugar and oils and fats 2% each. R ’ m il li o n Year Private consumption expenditure on major food items 2007/08–2011/12 (July to June) 2007/08 2008/09 2009/10 2010/11 2011/12 140 000 120 000 100 000 80 000 60 000 40 000 20 000 0 Meat Bread and grains Vegetables and fruit Milk, milk products and eggs Oils and fats Consumer prices The Consumer Price Index (CPI) (with base year 2005 = 100) of all items increased by 5,8% during 2011/12. The CPI of food increased by 9,1% and that of non-food items by 5,0%. Meat prices rose by 11,6%, while the prices of grain products increased by 9,3%. The CPI of vegetables increased by 5,7%, and that of fruit by 5,9%. In the case of dairy products and eggs, prices rose by 5,0 %, while an increase of 11,9% was recorded for sugar and related products. Imports and exports of agriculture, forestry and fisheries products The estimated value of imports for 2011/12 came to R64 924 million, an increase of 23,2% compared to R52 688 million for 2010/11. The value of exports increased by 11,4%, from R62 716 million in 2010/11 to R69 881 million in 2011/12. According to the 2011/12 export values, citrus fruit (R7 032 million), wine (R5 743 million), chemical wood pulp, dissolving grades (R5 146 million), maize (R4 778 million) and grapes (R4 107 million) were the most important export products. Rice (R4 520 million), wheat and meslin (R3 650 million), poultry (R3 280 million), palm oil (R3 203 million) and un denatured ethyl alcohol (R2 637 million) accounted for the highest imports in terms of value. During 2011/12, the Netherlands, with exports to the value of R5 918 million, the United Kingdom (R5 394 million), Zimbabwe (R5 305 million), Mozambique (R3 212 million) and Japan (R2 984 million) were the five largest trading partners of South Africa in terms of export destinations. About 16,2% of the total value of agricultural exports during 2011/12 went to the Netherlands and the United Kingdom. The five largest trading partners for imported products during 2011/12 were Argentina (R5 531 million), China (R5 075 million), Brazil (R4 931 million), Germany (R4 112 million) and the United States (R3 861 million). R ’ m il li o n 75 000 65 000 55 000 45 000 35 000 25 000 Imports Exports Year Imports and exports of agricultural products 2007/08–2011/12 (July to June) 2007/08 2008/09 2009/10 2010/11 2011/12 PART A: Strategic overview 13 Forestry sector Following two decades of shrinkage of the country’s plantation resources and increasing pressure on natural forests and woodlands, forestry’s goal is to ensure renewed growth, transformation and sustainability throughout the value chain, in economic, social and environmental terms, in ways which continue to improve the lives of the poor. Of increasing importance is the role which plantations and the timber processing and manufacturing industries which they support, can play in both South Africa’s energy security and commitments to addressing climate change. In general there are three categories of forests, namely, indigenous forests, woodlands and plantation forests. Forestry activities in indigenous forests and woodlands are not limited to the protection of the resource as a natural heritage, but include its development, use and management, as well as the management and processing of non-timber forest products. Plantation forestry practices include, among others, the establishment of vast areas of land with exotic species that are harvested and processed into pulp for the paper and packaging industries, sawn timber, furniture, shelving, flooring, etc. In terms of land use, the area under forestry is about 1,28 million ha or approximately 1,0% of the total RSA land area of 122,3 million ha. The forestry sector (forestry and forest products) contributes about 1,2% to the GDP. In terms of regional GDP, forestry in KwaZulu-Natal contributes 4,5%; in Mpumalanga 4,7%; in the Eastern Cape 0,9% and in the Limpopo Province about 0,5%. The South African plantations (planted forests) produced over 18,9 million m³ (or 16,2 Mt) of commercial roundwood, worth R6,7 billion in 2009. The total industry turnover was about R20,4 billion, including R11,4 billion worth of wood pulp. Pulpwood intakes of about 12,9 million m³; mining timber of 759 000 m³; charcoal of 264 000 m³; saw logs of 4,1 million m3 and veneer logs and poles of about 546 000 m³ were transferred to processing plants in 2009. Industry and exports The industry was a net exporter of almost R2,91 billion worth of goods in 2009, of which more than 99% took the form of converted value-added products. The export of forest products has increased from R9,5 billion in 2001 to R12,5 billion in 2009, reaching the all-time high of R14,8 billion in 2008. Imports totalled R9,6 billion in 2009. In 2009, paper products were the most important exports (R6 139 million or 42% of the total), followed by pulp (R4 643 million or 34%), solid wood products (R2 573 million or 21%) and other products (R330 million or 3%). Woodchip exports, which are ex ported mainly to Japan, accounted for 61% (R1 578 million) of total solid-wood product exports. The forest sector employs around 201 025 workers. The forestry sector provides about 77 000 direct jobs and 30 000 indirect jobs. Forestry provides livelihood support to 2,3 million people of the country’s rural population. The pulp and paper industry provides approximately 13 200 direct and 11 000 indirect employment opportunities. Some 20 000 workers are employed in sawmilling, 6 000 in the timber board and 2 200 in the mining timber industries, while a further 11 000 workers are employed in miscellaneous jobs in forestry. In 2009, the total investment in the forestry industry amounted to R24,8 billion. This investment comprised 58,5% in trees; 19,4% in land; 13,0% in roads; 6,2% in fixed assets; and 2,8% in moveable assets. Regarding the investment in the forest product sector by type of processing plant for 2009, the total book value of investments amounted to R15,7 bil lion. This investment comprised 82,7% in pulp and board plants; 11,8% in sawmills and veneer plants; 1,0% in pole plants; 0,3% in mining timber; and 4,2% other plants. The forestry industry is one of the strategic economic sectors in South Africa with a significant contribution towards economic growth and job creation. In view of the important role of the forestry sector in the economy of the country, and in line with the provisions of the Forestry Charter, steps have been taken by role players to ensure that there is continued and sustainable use of forestry land for timber production. Labour intensity in the forestry and forest product sector can change significantly over time. For example, if proportionately more land is used for pulpwood production, overall labour intensity will decline, both in the forests and in the processing plants. On the other hand, a move to higher value addition within South Africa, for example through high-value saw-log production, and processing and marketing of quality solid wood products from this resource, could contribute to higher and more rewarding employment. Ownership in the forestry sector is skewed, with the majority of forestry plantations owned by a handful of grower processor multinational corporations. Ownership in forestry is similar to other parts of the world, where given the long term nature of the investments required in growing timber and the highly capital intensive nature of large-scale processing and manufacturing, there is a fairly high concentration in ownership among the larger companies. The majority of forestry plantations are therefore owned by 11 large companies, some of which are multinationals. DAFF Strategic Plan 2013/14–2017/18 14 There are two further cooperatives which control a significant percentage of the independent small and medium grow ers and this is a model regarded as useful for the more than 30 000 other small growers in the country. There is also a rapid development of black ownership and management in the form of out-grower timber schemes and increasing ownership of larger companies with a number of recent empowerment transactions concluded. Although the area under plantations has decreased over the past few years, from a peak of 1 518 138 ha in 1997 to about 1 274 869 ha in 2009, the volume of production has increased from 18,6 million m³ to 18,9 million m³ during the same period. South Africa is approaching the limits of increasing productivity from a declining resource. As a result, government has prioritised the expansion of the plantation area in areas where it is economically, environmentally and socially appropri ate to do so. This is not only important for the country’s growth, but also for transformation as it is difficult to achieve meaningful change in any of the key transformation areas in a stagnant or declining sector. This is why the IPAP of the dti has prioritised growing the area under plantations and the Forestry Transformation Charter is both a transformation and growth strategy. South Africa is facing a looming shortage of both softwood sawn timber and hardwood pulpwood over the medium and long term. The estimated shortage of timber saw logs currently is approximately 14%. Challenges facing forestry are as follows: • Forest fires, pests and diseases • Regulatory environment • Limited forestry research and development • Skills shortage • Lack of funding to invest in forestry • Shortage of timber in the country • Forest degradation Opportunities for action in forestry are as follows: • Implementation of an Integrated Fire Management Programme • Integrated Land Use Resource Assessment • Expansion of the Afforestation Programme in the Eastern Cape and KwaZulu-Natal • Rehabilitation of degraded natural forests and woodlands • Implementation of forest conservation programmes • Rehabilitation of existing plantations • Expansion of the Wattle Jungle Conversion Programme • Up-scaling of the Million Trees Programme • Development of the Working for Forestry Programme • Greening and maintenance of open spaces FISHERIES SECTOR The mandate and core business of fisheries (marine and coastal management) is to manage the development and sustainable utilisation of marine and coastal resources; to utilise the economic potential of the fisheries sector; and to protect the integrity and quality of the country’s marine and coastal ecosystems. The main challenge in fisheries is to create a balance between maximising the social and economic potential of the fisheries sector, while protecting the integrity and quality of the country’s marine and coastal ecosystems and addressing transformation in the sector. Expansion of the fisheries sector’s total activity is limited by the natural productive capacity of the living marine re sources from which the activities derive, and the necessity to limit and control the harvesting pressure according to what the resources can sustain on a long-term basis. South Africa has a well-established fishery sector, comprising two components, namely, wild capture fisheries and an aquaculture component, which is under development. Wild capture fisheries currently includes three distinct compo nents (commercial, recreational and subsistence fisheries), each of which requires specific research and management interventions. The commercial fishing sector can be further broken down into highly industrialised capital-intensive fisheries, which generally operate in deep water (e.g. hake trawl and pelagic purse seine fisheries) and near shore fisheries that are more easily accessible and use more traditional types of gear (line fishery and near shore rock lobster hoop net fishery). PART A: Strategic overview 15 Fishing contributes approximately 0,5% to the GDP and is regionally important, especially in the Western Cape where it contributes about 2% to the GDP. South Africa is a net exporter of fish and fish products and 55% of the commercial trawl catches are exported. In rock lobster, squid, tuna and commercial longline, almost the total production is exported. On average, South Africa exports about 160 000 tons of fish a year and imports approximately 55 000 tons. The value of exports and imports during 2008 was approximately R3,1 billion and R1 billion, respectively. The commercial fishing industry currently employs approximately 27 000 people directly and approximately 100 000 indirectly, while aquaculture provides about 1 850 direct employment opportunities on farms. Regarding commercial fisheries, marine living re sources are considered to be fully utilised and high-value species largely overexploited. However, some rebuilding strategies are underway, for example in hake, rock lobster and abalone. The annual production of commercial fisheries is more than 600 000 tons, valued at R5,8 billion. Commercial fishing industries contribute about 70% of the total value of fishing. Large-scale capital investment (e.g. in vessels, factories) is generally a prerequisite for commercial participation. Long-term commercial rights have been allocated in 22 fishing industries, with just over 2 900 rights holders and about 1 788 vessels. New fisheries introduced since 1994 include: Large pelagics longline, Patagonian toothfish and an experimental fishery for octopus. Certain other fisheries such as horse mackerel and round herring have potential for expansion. However, further research in the form of surveys is required to improve population estimates. There is potential for value addition and job creation in, for example, the pelagic fishery for anchovy, but an implementation strategy and incentives are needed to stimulate its development. Participation in subsistence fisheries is broad—coastal communities have traditionally made use of intertidal and shallow water resources as a source of food. Only surplus not consumed by fishers is sold locally. Some 147 fishing communities, 28 338 fisher households and about 29 233 people are considered as true subsistence fishers. A draft policy (for the recognition, allocation and management of small-scale fishing rights) is being developed for small-scale fishing. Annual recreational fishing licences (all industries) total approximately 300 000 with income generated from these licenses amounting to R18 million. However, the number of licensed recreational anglers is estimated at around 186 000. The actual annual catch is about 17 000 tons of high-value species. Aquaculture production is currently underdeveloped and focuses mainly on high-value products (abalone, oysters and mussels). The current aquaculture production level is 3 543 tons worth—about R218 million. Production can increase to over 90 000 tons worth (about R2,4 billion) over the next 10 to 20 years. Most marine aquaculture is capital and skills intensive. It also has limited potential because of the coastline—few protected areas, high energy coastline and high cost of land-based activities. Distance from the markets means the focus is on high-value products. There are also concerns about the genetic contamination and environmental impact on sensitive areas. Challenges facing fisheries are as follows: • Value of production is restricted by the size of the national resource and threatened by declining fish stocks in certain fisheries. The profitability of the fishing industry is largely determined by factors such as the international prices, exchange rates, fuel prices, quota allocations and the actual biomass of fish present. • Growth in the industry is not only dependent on labour and capital inputs, but is determined by the stock of fish avail able. • Currently there are over 2 900 rights holders utilising 1 788 vessels in 21 different fisheries. This has decreased since 2002, which is in line with the international trend to decrease the number of fishing vessels to reduce the pressure on the resources. Opportunities for action in fisheries are as follows: • Rehabilitation programmes such as rebuilding of depleted fish stocks that contribute to job creation and sustainable livelihoods. • Investing in sustainable management and efficient use of marine living resources can make a significant contribution to job creation, while improving the environment. • Enforcement programmes such as the Green Scorpions and environmental courts. • The allocation of additional fishing rights in certain fishing industries can contribute to job creation and sustainable livelihoods. • Infrastructure development and investment in the 12 fishing harbours can contribute to increased socio-economic and tourism opportunities. • Aquaculture development programmes also have the potential to play an important role. DAFF Strategic Plan 2013/14–2017/18 16 Organisational environmentOrganisational environment Following the restructuring of DAFF, refinement investigations were undertaken but could only be done within the cur rent MTEF budget allocation, which resulted in critical functional areas that could not be capacitated efficiently to im prove service delivery to the demanding agriculture, forestry and fisheries sectors, respectively. Challenges of align ment and optimal use of resources (human, facilities and financial) owing to the partially integrated organisation structure model, resulted in the desired impact not being achieved. During this period the reconfiguration of the current approved organisational structure into an integrated model will be investigated with the aim to address the economic, efficient and effective performance of the department and to improve service delivery. The department will also be focusing on reducing its vacancy rate and strengthening its knowledge and information management systems. Details of approved establishment and personnel numbers according to salary level Personnel post status as at 30 September 2012 Number of posts filled on funded establishment Level Number of posts on approved establish ment Number of funded posts Number of posts in addition to establish ment Actual 30 Sep. 2012 Medium-term estimate 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Department 7 062 7 062 57 7 042 7 094 7 083 7 062 7 131 7 131 7 131 Salary levels 1–6 4 252 4 252 24 4 334 4 348 4 335 4 252 4 294 4 294 4 294 Salary levels 7–10 2 214 2 214 13 2 237 2 163 2 127 2 214 2 236 2 236 2 236 Salary levels 11–12 465 465 15 362 452 489 465 469 469 469 Salary levels 13–16 131 131 5 109 131 132 131 132 132 132 The strategic planning process Government-wide planning and the MTSF inform and align the department’s plans on three levels of planning, namely, the five-year Strategic Plan and Annual performance plans (APPs) which are broken down into quarterly targets and operational plans. The plans are cascaded respectively into the lowest level planning of branches, chief directorates and directorates. The individual performance agreements of SMS members are aligned to these plans. DAFF identified the relevant focus on the basis of broader government priorities and the new policy mandates emanating from the Lekgotla, NDP and NGP. The review and reprioritisation of plans was facilitated on the basis of the latter pol icy mandates. Issues of alignment were addressed by demonstrating how DAFF’s future plans would reflect alignment to the mandate of the department and the national outcomes 4, 7 and 10, the IPAP2, NGP and NDP with achievable targets. DAFF integrated the IPAP2 and the NGP into the IGDP for Agriculture, Forestry and Fisheries. The goals of the IGDP include attaining equity and transformation, equitable growth and competitiveness, environmental sustainability and good governance. The IGDP seeks to provide a strong intellectual underpinning to DAFF’s vision and programmes, taking cognisance of the dynamics of each of the three sectors, including their economic and social environmental dimen sions. For the planning period 2013/14–2016/17, as expected by statutory requirement for the MTEF, DAFF maintained strategic goals and objectives considering relevancy and appropriateness. The department-wide planning, which is informed by the mid-term performance review, was conducted at the Quarterly Review Meeting (QRM). The objectives of the strategic review process were to highlight critical areas of DAFF’s performance, reprioritise current activities, performance targets and to define future targets that will align to the newly defined focus. All branches were facilitated PART A: Strategic overview 17 and interventions reviewed at strategic level to ensure the indicators and targets are responding to the national outcomes 4, 7 and 10, the IGDP and NDP. The current backlog was reviewed, reprioritisation for 2013/14 was done and indicators and targets refined, based on the criteria provided for the next four years. At the level of operational plans, strategic outputs are broken down into clear milestones with implementable activities. Plans highlight various action steps to be undertaken in order to address the respective unit’s priorities, the various deliverables and its associated performance indicators, responsible persons, target dates, etc. Individual workplans are at this level aligned to the operational plans. The plans and budgets are integrated and operational or line managers are held accountable for the inputs that are allocated to resource their strategic plans. Better budgeting, in terms of the PFMA, extends accountability not only to the expenditure of inputs, but more importantly, to the efficient and effective achievement of outputs in line with strategic priorities. The implementation strategy will reflect on the aspects of daily service delivery activities of DAFF to ensure that the DAFF business community is well informed. Programme 2 Agricultural Production, Health and Food Safety Programme 3 Food Security and Agrarian Reform Programme 4 Economic Development, Trade and Marketing Programme 5 Forestry and Natural Resources Management Programme 6 Fisheries Management Programme 1 Administration Plant Production and Health Food Security International Relations and Trade Forestry Operations Aquaculture and Economic Development Corporate Services Animal Production and Health Sector Capacity Development Cooperatives and Rural Enterprise Development Forestry Development and Regulation Fisheries Research and Development Chief Financial Office Inspection and Quarantine Services National Extension Support Services Agro Processing and Marketing Natural Resources Management Marine Resources Management Policy, Planning and Monitoring and Evaluation Monitoring, Control and Surveillance Stakeholder Relations, Communication and Legal Services DIRECTOR-GENERAL Chief Director Operations Support BRANCHES CHIEF DIRECTORATES Departmental structure DAFF Strategic Plan 2013/14–2017/18 18 The following steps outline the departmental planning process: Step 1: In May, the department commences with the strategic planning process, undertakes an environmental scan and reviews strategic goals, objectives and key priorities. Step 2: From the Lekgotla, the department identifies high-level priorities to inform department-wide planning. Step 3: The department undertakes detailed planning to ensure that the priorities outlined in the July Lekgotla and SONA are considered. This process has to be completed by the end of August/September. Step 4: The detailed facilitated consultations with branches to unpack high-level priorities into actionable plans, there by determining interventions, setting targets and reviewing indicators takes place in October to November. Step 5: During February and March, the priorities are communicated to the entire department. This is when detailed annual operational plans are developed at implementation levels. Monitoring and evaluation The department uses an electronic system known as the knowledge bank for reporting purposes. The Strategic Plan deliverables together with the operational plans are loaded into the knowledge bank reporting system to be reported against on a monthly basis. The reports of operational plans are aligned to the status reported against strategic outputs in strengthening the authenticity and verifiability of the reported status. Key services are also reported against their service standards on the system. Underperforming services will be isolated through analysis of in-year reports for con sideration in developing an SDIP. Reported performances are analysed and obstacles identified and this assists with the timeous implementation of corrective measures. The department is placing greater emphasis on evidence-based monitoring in which evidence for reported statuses gets analysed to determine its admissibility. There are regular meetings between M&E and Strategic Planning to dis cuss performance status and mechanisms that can yield improved performance. Performance reports play a key role in guiding the process of strategic and performance reviews and are discussed at different levels of management meet ings to guide decision-making processes. DAFF’s strategic goals and objectives were conceptualised from the priorities in the Medium Term Strategic Framework (MTSF). The MTSF was analysed and issues relevant to the department were identified and developed into six strategic goals and a number of strategic objectives to support each goal. The following strategic goals and objectives will be implemented over the medium term through strategic action programmes: SG 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objectives SO 1: Promote effi cient production, handling and processing of food, fi bre and timber SO 2: Coordinate government food security initiative SO 3: Improve production systems anchored in commodities with a competitive and comparative advantage in each province SO 4: Comprehensive support towards rural development SG 2: Sustained management of natural resources Strategic objectives SO 1: Ensure the sustainable management and effi cient use of natural resources SO 2: Ensure protection of indigenous genetic resources SO 3: Increase contribution to green jobs to improve livelihoods Strategic goals and objectivesStrategic goals and objectives PART A: Strategic overview 19 SG 3: Effective national regulatory services and risk management systems Strategic objectives SO 1: Manage the level of risks associated with food, diseases, pests, natural disasters and trade SO 2: Establish and maintain effective early-warning and mitigation systems SG 4: A transformed and united sector Strategic objectives SO 1: Increase equity, ownership and participation of PDIs SO 2: Enhance systems to support the effective utilisation of assets SO 3: Improve social working conditions in the sector SO 4: Provide leadership and support to research, training and extension in the sector SG 5: Increased contribution of the sector to economic growth and development Strategic objectives SO 1: Increase growth, income and sustainable job opportunities in the value chain SO 2: Increase the level of public and private investment in the sector SO 3: Increase market access for South African and African agricultural, forestry and fi sh products, domestically and internationally SO 4: Increase production of feedstock to support the manufacturing sector SG 6: Effective and efficient governance Strategic objectives SO 1: Establish and strengthen cooperative governance and functional relations with local and international stakeholders SO 2: Strengthen policy, planning, monitoring, evaluation, reporting and sector information SO 3: Provide effective audit, investigative and legal, human resources and fi nancial risk management SO 4: Improve departmental service excellence through implementation of quality standards, Batho Pele principles and the general legislative mandate SO 5: Provide leadership and manage communication and information Strategic outcomes oriented goals MTSF priority area Strategic goal Outcome Programme 1. Speed up economic growth and trans form the economy to create decent work and sustainable livelihoods 2. Massive programmes to build economic and social infrastructure 3. A comprehensive rural development strategy linked to land and agrarian reform and food security 4. Strengthen the skills and human resource base 5. Improve the health profile of society 6. Intensify the fight against crime and corruption 7. Build cohesive, caring and sustainable communities 8. Pursuing regional development, African enhancement and enhanced international cooperation 9. Sustainable resource management and use 10. Build a developmental state, including improving of public services and strengthening democratic institutions 1: Increased profitable production of food, fibre and timber products by all categories of producers 7: Vibrant, equitable, sus tainable rural communities contributing towards food security for all 2, 3, 4, 5 and 6 2: Sustained management of natural resources 10: Protect and enhance our environmental assets and natural resources 5 and 6 3: Effective national regulatory services and risk management systems 7: Vibrant, equitable, sus tainable rural communities contributing towards food security for all 2 and 5 4: A transformed and united sector 12: An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship 1 5: Increased contribution of the sector to economic growth and development 4: Decent employment through inclusive economic growth 1, 4, 5 and 6 6: Effective and efficient governance 11: Create a better South Africa, a better Africa and better world 4 and 1 DAFF Strategic Plan 2013/14–2017/18 20 Risk managementRisk management Risk management is a systematic approach to setting the best course of action under uncertainty by identifying, as sessing, understanding, acting on and communicating risk issues and opportunities, as well as the financing of the consequences of loss. RISK MANAGEMENT POLICY STATEMENT The DAFF contributes to an enterprise risk management process that enables the entire organisation-wide perspective. It will ensure that all risks that could prevent the achieving of organisational objectives are identified and response plans are implemented, evaluated and managed on an organisation-wide basis. Reporting to the Audit and Risk Management Committee (ARMC) will take place on predefined criteria to ensure adequate monitoring of critical risks. ENTERPRISE-WIDE RISK MANAGEMENT Enterprise-wide risk management is a continuous, proactive and systematic process to understand, manage, communi cate and finance risk from an organisation-wide perspective. It is about optimising strategic risk decisions that contribute to the achievement of the MLRF’s overall corporative objectives. ENTERPRISE RISK MANAGEMENT POLICY Organisation-wide vision The department is committed to realising its vision. In achieving this vision, the department will face risks to its business strategy, operational risks and risks associated with the protection of its people, property and reputation. The Enterprise Risk Management (ERM) Policy covers the effective managing of the entire spectrum of these risks. ENTERPRISE RISK MANAGEMENT PLAN The department defines a risk as any potential event, which could prevent the achievement of an objective. It is measured in terms of severity or potential impact, frequency and probability or likelihood. Risks arise as much from the likelihood that an opportunity will not happen, as it does from the threat or uncertainty that something bad will happen. The department’s responsibility is to identify, analyse and respond appropriately to all the risks. The risk responses selected are determined by the demand and tolerances of risks. These will vary over time according to the specific business objectives, for example, strategic operational and asset protection. The effectiveness of risk management and control measures will be regularly reported on and acted upon by the ARMC that will, in turn, report to the Director-General. In addition, periodic independent review on the effectiveness will be conducted by an internal audit and reporting thereon done through their normal process. This ERM Framework will be supported by a detailed procedure document, which will contain guidance on the process, roles and responsibilities. RESPONSIBILITIES Director-General The Director-General is responsible for providing governance, guidance and oversight for the department in the follow ing manner: • to review the extent to which management has established an effective enterprise risk management process within the department; • to review and concur with the risk appetite; • to review the most significant risks and risk responses within the department. Management The Deputy Director-General: Fisheries ultimately accounts to the Director-General for risk management and accepts ownership of the enterprise risk management processes. Executive management, in turn, assigns responsibility for the PART A: Strategic overview 21 establishment of more specific risk management policies and procedures to personnel responsible for each division. Staff functions such as Finance, Human Resources and Technology have responsibilities that are not limited to their functional area, but cut across the organisation. Other employees Risk management is everybody’s business. The ERM process involves all levels of employees within the organisation. Risk awareness is created and the importance of the contribution from everybody in the process of risk management is highlighted to ensure that the objectives of the department are being met ultimately. Internal Audit Internal Audit plays an important role in the monitoring and evaluation of ERM and the quality of performance as part of their regular duties or upon special request from management or the ARMC. Internal Audit assists both the ARMC and the management through monitoring, examining, evaluating, reporting and recommending improvements to the adequacy and effectiveness of management’s risk management processes. Risk owner After the risks identification process, a risk owner will be assigned. The risk owner will be responsible for documenting the risk responses, including the detail of mitigation. KEY PRINCIPLES IN MANAGING RISK • In order to achieve the department’s business objectives, risks must be considered and managed on an enterprise wide basis. • Risk management is integral to the strategic planning process, business decision making and daily operations. • Risks are identified, analysed, responded to, monitored and reported on, in accordance with the department’s policy and procedures. • Risk responses must be tailored to each particular business circumstance. • Management must regularly assess the status of risk and risk responses. • Compliance with the ERM Framework must be monitored and reported on. PART B Programme deliverablesProgramme deliverables DAFF Strategic Plan 2013/14–2017/18 24 PURPOSE Provide strategic leadership, management and support services to the department. The aim of the programme is to lead, support and promote agricultural, forestry and fisheries resource management through policies, strategies and programmes to enhance sustainable use, and to achieve economic growth, job creation, food security, rural develop ment and transformation. The programme comprises the Ministry, Office of the Director-General, Chief Financial Of fice, Internal Audit, Corporate Services, Stakeholder Relations and Legal Services, Policy Planning, Monitoring and Evaluation and Office Accom mo dation. Chief Financial Office: Provides the department with sound financial services. Corporate Services: Renders sound human resources management and development, security and information manage ment services. Stakeholder Relations, Communication and Legal Services: Provides the department with legal support services, establishes and strengthens intergovernmental and stakeholder relations, manages communication support services and fisheries partnership management services. Policy, Planning and Monitoring and Evaluation: Directs the provision of policy analysis, formulation, planning and monitoring and evaluation in order to facilitate the improvements of the department’s performance. PROGRAMME DELIVERABLES Corporate Services—strategic intervention • Strengthen Human Resources Management and Development to support the core business towards the achieve ment of strategic objectives and improve organisational performance and culture • Improve Knowledge Management and ICT capacity for optimal DAFF service delivery in support of SIP 11, NDP, NGP, IPAP2, MDG and IGDP • Ensure a safe and secure environment Strategic outcome Effective and efficient governance Goal statement Improved business processes and systems Strategic objective Strengthen policy, planning, monitoring, evaluation, reporting and sector information Objective statement ICT Strategic Plan based on the approved Master Systems Plan Baseline 90% of Master Systems Plan developed Justification This objective will contribute to the development and implementation of the Master Systems Plan to enable the effective use of technology within DAFF Links Improve ICT capacity for optimal DAFF service delivery in support of SIP 11, NDP, NGP, IPAP2, MDG and IGDP Strategic outcome Effective and efficient governance Goal statement Improved business processes and systems Strategic objective Strengthen policy, planning, monitoring, evaluation, reporting and sector information Objective statement KIM Strategy implemented through Electronic Document Management System (EDMS) change management plan PROGRAMME 1 PART B: Strategic objectives 25 Strategic objective Strengthen policy, planning, monitoring, evaluation, reporting and sector information (cont.) Baseline KIM Strategy approved by DEXCO Justification This objective will contribute to the development and implementation of the KIM Strategy for preservation of institutional memory Links Improve knowledge and information management for optimal DAFF service delivery in support of SIP 11, NDP, NGP, IPAP2, MDG and IGDP Strategic outcome Effective and efficient governance Goal statement Improved human resource management and development support Strategic objective Provide effective audit, investigative and legal, human resources and financial risk management Objective statement HRMP approved by the Minister and submitted to DPSA Baseline Implemented the HRMP by adhering to the Performance Management Development System, 1% reduction to vacancy rate and HRD Strategy Justification This objective will contribute to integrated human resources practices Links Strengthen the skills and human resources base to attract, develop and retain professional and skilled officials in order to improve organisational performance and culture Chief Financial Office—strategic intervention • Improve financial services Strategic outcome Improved sound financial management and accountability Goal statement Effective and efficient governance Strategic objective Provide effective audit, investigative and legal, human resources, financial management and risk management Objective statement To improve financial management controls Baseline Unqualified audit report Justification This objective will ensure effective and efficient use of financial resources in the department Links PFMA, Treasury guidelines Stakeholder Relations, Communication and Legal Services Strategic outcome Effective and efficient governance Goal statement Updated, effective and streamlined legislation aligned with the Constitution, reflecting the departmental mandate Strategic objective Improved departmental service excellence through implementation of quality standards, Batho Pele principles and the general legislative mandate Objective statement Review and/or amend legislations to ensure alignment to the Constitution Baseline Initiate a legislation review project and submit the project proposal to DEXCO/departmental committee Justification Strengthened coordination of legislation review processes Links This objective will contribute to reviewed legislation in the agriculture, forestry and fisheries sector Strategic outcome Effective and efficient governance Goal statement Well-informed internal and external publics DAFF Strategic Plan 2013/14–2017/18 26 Strategic objective Provide leadership and manage communication and information Objective statement DAFF Communication Strategy implemented Baseline Refined and implemented the DAFF Communication Strategy Justification This objective will contribute to increasing awareness of the DAFF mandate and services Links Align the DAFF Communication Strategy to the government’s National Communication Strategy Policy, Planning and Monitoring and Evaluation—strategic intervention • Improve and align M&E systems in DAFF, provincial departments of agriculture (PDAs), state-owned entities (SOEs) and monitor economic performance of the sector • Develop and review DAFF policies and facilitate the alignment of policies and plans to the electoral mandate and the MTSF • Guide and support research and development in the DAFF sectors Strategic outcome Aligned and coordinated policy and planning system(s) for improved strategies, programmes and plans in line with government Goal statement Effective and efficient governance Strategic objective Strengthen policy, monitoring, evaluation, reporting and sector information Objective statement To develop (design) a programme/project decision support management system Baseline Programme/project decision support management system implemented: programme planning and development support Justification Strengthening planning and policy formulation by updating and aligning policies and plans for national, provincial and local spheres to the electoral mandate and MTSF Links PFMA, MTEF, Treasury Regulations and government-wide planning, monitoring and evaluation Strategic outcome Aligned and coordinated policy and planning system(s) for improved strategies, programmes and plans in line with government Goal statement Effective and efficient governance Strategic objective Strengthen policy, monitoring, evaluation, reporting and sector information Objective statement To update and align policies Baseline Policy framework developed: Review existing policies Justification Strengthening planning and policy formulation by updating and aligning policies and plans for national, provincial and local spheres to the electoral mandate and MTSF Links PFMA, MTEF, Treasury Regulations and government-wide planning M&E Strategic outcome Aligned and coordinated policy and planning system(s) for improved strategies, programmes and plans in line with government Goal statement Effective and effective governance Strategic objective Strengthen policy, monitoring, evaluation, reporting and sector information Objective statement To monitor, coordinate and report on targeted R&D Programme Baseline Implement approved targeted R&D Programme Justification Service Level Agreements on R&D commissioned to the ARC and other service providers to develop relevant/appropriate technologies in support of DAFF mandate Links PFMA, MTEF, Treasury Regulations and government-wide planning M&E PART B: Strategic objectives 27 OVERVIEW Within the Administration Programme, there are four branches, namely, Corporate Services; Stakeholder Relations, Communication and Legal Services; Chief Financial Office (CFO); Policy, Planning and Monitoring and Evaluation. Each branch is divided into chief directorates which are managed by the Deputy Directors-General, Chief Directors and Directors, respectively. All the branches are linked to the five strategic objectives which ultimately contribute and sup port strategic goal number six (6). Performance indicators will be used to measure the achievement of strategic objec tives over the MTEF period. Each performance measure will be attached to the relevant branch’s chief directorate. PROBLEM STATEMENT Since the amalgamation of the Agriculture, Forestry and Fisheries functions into a new department in 2009, not all the functions in the department, with specific reference to the corporate services support functions, were integrated to al leviate duplication and ensure optimal utilisation of resources and optimal service delivery. As a result of financial constraints, sufficient Human Resources Management and Development and ICT capacity is not sufficient to provide an efficient service to the regional offices. The filling of vacant posts within the shortest time frames remains a challenge with the delays of the personnel suitability checks as is required in terms of the National Vetting Strategy by the State Security Agency (SSA) and the South African Qualifications Authority (SAQA). The implementation and application of the Performance Management and Development System still remains a challenge in the department whereby there is minimal correlation between employees’ performance assessments and the organisational performance. ICT procure ment is still obstructed by SITA procurement processes which, in some cases, run over a budget year period, resulting in resource surrender. Lack of comprehensive consultation with stakeholders, particularly the rural stakeholders and improper organisation of smallholder producers, fishers and foresters have led to poor access to markets for this group. Establishing proper communication channels and legal support to the department, and engaging these groups of stakeholders, will bring major improvements. IMPLEMENTATION STRATEGY During 2013/14, the reconfiguration of the current approved organisational structure into an integrated model will be investigated with the aim to optimise the organisation’s performance and ensure the efficient and effective use of the current resources. Additional capacity will be created to serve the regional offices. The department identified the impor tance of three strategies, namely, Stakeholder Engagement Strategy; Intergovernmental Strategy and the Communi cation Strategy to ensure the achievement of its objectives. EXPENDITURE TRENDS The spending focus over the medium term will be on the acquisition of offices for the forestry and fisheries branches and provision of effective support services to the department. An amount of R8,4 million was transferred from the Department of Water Affairs in 2012/13 for lease accommodation for the forestry branch and over the medium term, the budget for office accommodation is expected to increase by R28,1 million to provide offices for the forestry branch. Between 2009/10 to 2012/13, expenditure in the Financial Administration subprogramme decreased because of a one-e off allocation of R367 million in 2009/10 for the Micro-agricultural Financial Institutions of South Africa (Mafisa) scheme, while expenditure in the Corporate Services subprogramme increased over the same period owing to the upgrading ofe IT systems (computer services). This accounts for the increase in expenditure on computer services over the period. Expenditure in the Stakeholder Relations, Communication and Legal Services subprogramme grew significantly be-e tween 2009/10 and 2012/13 when the department was restructured to include the fisheries function and the Marine Living Resources Fund. As part of the cabinet approved budget reduction, the department reduced the allocation for spending on travel and subsistence in 2013/14 by R2,9 million. The reduction is not expected to have an adverse effect on service delivery, as personnel in the programme have been encouraged to use video conferencing instead of travelling to meetings and limits have been placed on the number of delegates going on foreign trips. The programme had a funded establishment of 1 115 posts and 7 posts additional to the establishment, of which 929 were filled as at 30 September 2012. There were 193 vacancies in this programme as a result of the extended recruitment procedure. These vacancies are to be filled in 2013/14. Consultants are mainly used for research, external audit services and task teams appointed by the Director-General. They are only used as and when the need arises. Spending on consultants is expected to decrease over the medium term, as the department is filling vacancies and becoming less reliant on consultants. DAFF Strategic Plan 2013/14–2017/18 28 RESOURCE ALLOCATION Subprogramme Medium-term expenditure estimate 2013/14 2014/15 2015/16 R thousand Ministry 30 444 31 887 33 364 Department Management 22 756 22 283 25 798 Financial Administration 145 517 152 718 158 603 Internal Audit 8 257 8 629 9 017 Corporate Services 151 695 157 090 164 369 Stakeholder Relations, Communication and Legal Services 62 981 66 514 65 853 Policy, Planning, Monitoring and Evaluation 77 676 85 393 89 797 Office Accommodation 164 623 190 643 203 141 Total 663 949 715 157 749 942 HUMAN RESOURCES MANAGEMENT PLAN The Human Resources Management Plan (HRMP) for the MTEF period 2011/12 to 2014/15 has been approved by the Minister. Key priority areas were identified and an action plan was developed that indicates the challenges, activities to address it, milestones and target dates, to give effect to the objectives of the HRMP. In developing the HRMP various skills and competencies were identified as necessary to achieve the strategic objectives of DAFF, analyses were con ducted on the current and future supply and demand of our workforce and recommendations were proposed on how we plan to attract and develop employees, which will be responsive to delivering on our mandate. Following from this, key priority areas were identified and an Action/Implementation Plan was developed that indicates the challenges, activities to address it, milestones and target dates, to give effect to the objectives of the HRMP. Biannual implementation reports are also drafted, as required by the DPSA, in order to monitor and evaluate the pro gress on the implementation of the HRMP. With the establishment of the HR Planning Steering Committee, chaired by the Director-General, in which the CFO will also play an integral role, it is believed that HR planning will be elevated to the strategic level that is required. Training, development and performance management The established Performance and Development unit will work closely with line function through workshops and training to ensure that employees’ performance outputs are aligned with the operational plans. The department will continue capacitating the performance management and development unit that will inculcate the promotion of the performance management culture in the department. A Skills Audit will be conducted to identify the skill gaps and the department will continue to address the challenges brought forth by the amalgamation of the new functions through training and develop ment. HR will adopt an activist approach to improve organisational performance. To this end, the HR vision, mission and service charter will be developed and implemented. Underpinning this will be the application of business partnering principles where HR and business will be jointly committed to direct achievement of the identified strategic outcomes. Employee health and wellness To provide effective and efficient services the DAFF will continue to render services and advocacy programmes in disease management, HIV counselling and testing, psychosocial services and access to health information through the Health Promotion and Employee Assistance Programme. The department will continue to ensure that employees deployed in high-risk areas attend safety-related training and that they are subjected to risk assessments and a medical surveillance exercise. ICT Strategy Modernising information management to support prompt decision making, effective processing and storage of informa tion will be done through the provision of the EDMS. In the implementation of the ICT Strategy (MSP), priority ICT invest ment projects will continue. These will mainly focus on completion of the technology refresh project at Pretoria and Foretrust Buildings. Furthermore, in 2013, connections at all DAFF offices will continue, upgrading datalines in preparation for VOIP. In ad dition, the Remote Access System will be deployed, workstations will be migrated to a newer Microsoft software and end-users trained accordingly. Lastly, GIS will support spatial planning, as well as setting up DAFF regional data centres. The File Plan for the entire DAFF has been approved by the National Archives and Record Services of South Africa. For the 2013/14 financial year, the focus will be on initiating processes to deal with change management and aware ness campaigns, as well as development of supportive policies. PART B: Strategic objectives 29 PURPOSE Manage the risks associated with animal diseases, plant pests, genetically modified organisms (GMOs) and registration of products used in agriculture. Promote food safety and create an enabling environment for increased and sustainable agricultural production. The programme comprises three subprogrammes, namely, Plant Production and Health; Animal Production and Health; and Inspection and Quarantine Services. Plant Production and Health: Focuses on increasing agricultural productivity with the emphasis on a sustainable plant production system, efficient use of genetic resources and manages risks associated with plant pests, diseases and GMOs. Animal Production and Health: Aims to improve livestock production through the implementation of animal production and health strategies, projects and programmes founded on sound animal health and production management principles, an informed extension service and sustainable natural resource management. Inspection and Quarantine Services: Focuses on the provision of leadership, guidance and support in ensuring com pliance with agricultural legislation and regulatory frameworks and overseeing the effective implementation of risk management strategies and plans for regulated agricultural products. PROGRAMME DELIVERABLES Strategic outcome Sustainable agrarian reform Goal statement Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective Coordinate government food security initiative Objective statement 1 300 producers benefiting in two animal improvement schemes to improve production efficiency of livestock and address the socio-economic needs of emerging livestock farmers and contribute to their socio-economic needs Baseline Number of new producers benefiting in two animal improvement schemes: 1 300 Justification Increasing agricultural production requires maximum stakeholder participation; the department will work with all stakeholders within the sector on initiatives and interventions to increase production within the subsistence, smallholder and commercial environments. Links These objectives will contribute to improved livelihoods and sustainable agrarian reform Strategic outcome Sustained management of natural resources Goal statement Conserved indigenous agricultural biodiversity and sustained management of indigenous genetic resources Strategic objective Ensure protection of indigenous genetic resources Objective statement Conservation and sustainable use of genetic resources for food and agriculture will be improved through increased ex situ collections of indigenous and exotic plant species and farm animals, complemented by u the establishment of community-based in situ or on-farm conservation projectsu Baseline Zulu sheep characterised in Zululand Municipality, ex situ conserved Afrikaner cattle material in the u North West Province (Dr Ruth Segomotsi Mompati) and on-farm conservation projects established in Mpumalanga (plant). Justification This objective will contribute to the conservation of important agricultural genetic resources under threat and the need for increased food production to provide sufficient food for an increasing population Links This objective will contribute to the protection and conservation of natural and indigenous biological resources PROGRAMME 2 DAFF Strategic Plan 2013/14–2017/18 30 Strategic outcome Secured agricultural production systems Goal statement Effective national regulatory services and risk management systems Strategic objective Establish and maintain effective early-warning and mitigation systems Objective statement To conduct planned surveillance on animal and plant diseases and pests, as well as coordinate animal and plant disease control interventions Baseline Reports on animal and plant disease control interventions and surveillance conducted Justification Improved early detections and reaction time to outbreaks of plant and animal diseases and pests Links Improved response to food/feed safety incidents and outbreaks of animal and plant diseases and pests Strategic outcome Enhanced biosecurity and food safety Goal statement Effective national regulatory services and risk management systems Strategic objective Manage the level of risks associated with food, diseases, pests, natural disasters and trade Objective statement To implement regulatory interventions aimed at ensuring compliance to legislative requirements and monitoring certain quarantine pest and disease statuses in different areas Baseline Quarterly reports on regulatory and compliance monitoring intervention submitted and approved Justification This objective will contribute to the minimisation of pests and diseases entering the territory of SA at ports of entry by conducting regulatory compliance and monitoring interventions through quarantine, inspections, surveillance and testing Links Effective management of the risks associated with the introduction of pests and diseases into the territory of SA though disease and pest surveillance interventions and undertaking the required port of entry inspections OVERVIEW Several obstacles lie in the path of achieving increased agricultural production in South Africa. These challenges are scattered across the entire spectrum of the agricultural production value chain. At the apex is climate change as it in creases the risk of reducing our national and household food security. With the change in climatic patterns, yields are expected to decrease and the distribution of plant and animal pests and diseases is likely to change, adversely affecting both crop and livestock production (in the absence of any adaptive responses). Our crop and livestock production strategies, early-warning systems for quarantine pests and diseases and sustainable use of genetic resources will have to be responsive to the imminent threat posed by climate change to ensure sustainable food production. The agricultural sector is facing serious competition for the use of land and water while the rising input costs globally and domestically seriously threaten the sustainability of the sector. The increase in production costs is unfortunately accompanied by slowing productivity within the sector. Further substantial investments in productivity enhancement are needed to ensure that the sector meets the rising demands of the future. Additionally, there is a need for high-value addition of agricultural produce to make farming economically viable while supplying good-quality and healthy food at affordable prices. The supply of food relies heavily on the provision of credible regulatory instruments which regulate the quality of inputs from fertilisers, new varieties of plants and adaptable breeds. Globalisation and increased agricultural trade have led to a corresponding increase in the potential for the introduction and spread of animal and plant pests and diseases. The introduction and spread of pests and diseases of economic importance has a profound impact on food safety and security and the economic development of the country because the presence of certain pests and diseases prohibits South Africa from exporting affected agricultural commodities and therefore denies the country much needed foreign earnings. Globalisation has also led to the proliferation of international standards, especially relating to sanitary and phytosanitary measures, as well as technical requirements that may result in technical barriers to trade, with which South Africa must comply in order to trade internationally. In mitigation of these threats, South Africa will continue to improve its regulatory framework and ensure active participation in the relevant international standard-setting bodies. PART B: Strategic objectives 31 PROBLEM STATEMENT According to the New Growth Path (NGP), agriculture has the potential to create close to one million jobs by 2030. In achieving this target, the NGP proposes, among other interventions, the expansion of irrigated agricultural production, the conversion of underutilised communal land into commercial production and the support of commercial agricultural sectors with the highest growth potential. The world population is estimated to increase to 9 billion by the year 2050. This increase in the population numbers will require agricultural production to increase by 70%. The required increase in agricultural production will have to take place in a context of increasing competition for land resources, a decreasing natural resources base, variable and un predictable weather patterns and disease and pest outbreaks. In response to these challenges, the branch Agricultural Production, Health and Food Safety will implement policies, programmes and strategies which support sustainable agricultural production while ensuring that the produced food is safe. IMPLEMENTATION STRATEGY Increasing agricultural production requires maximum stakeholder participation across the full value chain. To this effect, the department will work with all stakeholders within the sector on initiatives and interventions to increase production within the subsistence, smallholder and commercial environments. The branch will also engage all spheres of govern ment to support institutional capacity towards the comprehensive implementation of its programmes and strategies. Job and wealth creation lie at the epicentre of these programmes and strategies; coordinated implementation is there fore crucial in delivering the expected targets. The strategic interventions for the programme will aim to support production and enable safe and fair trade through the implementation of plant and animal production policies and strategies and managing and maintaining risk management systems. This will be achieved by: Maintaining and, where required, strengthening the regulatory and policy frameworks for agricultural production, health and veterinary public health; responding to the threat of quarantine pests and diseases of economic importance through periodic surveillance and maintenance of early-warning and response plans; contributing to the conservation of indig enous plant and animal genetic resources and increasing public sector contribution to agricultural production; invigorat ing participation at international standard-setting forums and promoting public awareness of national and international regulatory measures; improving compliance with legislation and international requirements through effective bio security and food safety frameworks and the effective implementation of risk management strategies. The branch is also responsible for several pieces of legislation which aim to manage the risks associated with food, diseases, pests and trade, as well the safety and quality of agricultural inputs and remedies. In an effort to improve the administration of these pieces of legislation, a process of systematic amendments had been initiated under the depart ment’s legislative review process. In general, all amendments aim to bring about technical enhancements, alignment with other relevant legislation and the post-1996 constitutional framework. To this end, the branch has submitted the Feeds and Fertilizers Bill to Parliament in 2012/13; a final decision is still awaited. The branch will continue further work on the Liquor Products Amendment Bill, Plant Breeders’ Rights Amendment Bill, Plant Health (Phytosanitary) Bill, National Pounds Bill, Agricultural Product Standards Amendment Bill, Onderstepoort Biological Products Amendment Bill, the Animal Diseases Amendment Bill, Animal Identification Amendment Bill, Animal Improvement Bill, Meat Safety Amendment Bill and the Animal Welfare and Protection Bill. EXPENDITURE TRENDS The spending focus over the medium term will be on providing support to 3 900 smallholder producers participating in animal improvement schemes, improving support for food production through the Ilima/Letsema Programme and im plementing the Primary Animal Health Care Programme. Between 2009/10 and 2012/13, increased expenditure in the Animal Production and Health subprogramme was thee result of an additional allocation of R50 million in 2011/12 and R120 million in 2012/13 to the ARC for the upgrading of the foot-and-mouth vaccine facility. This accounts for the increase in transfer to departmental agencies and accounts over the period. An additional R77 million was allocated in 2012/13 for the economic competitiveness support package. The increase in expenditure on machinery and equipment between 2009/10 and 2013 was the result of the procure ment of veterinary toolkits and a mobile clinic in the Animal Production and Health subprogramme. Expenditure in this subprogramme goes towards recapitalising and revitalising veterinary infrastructure to create an enabling environment that will see 100 newly qualified veterinarians deployed to rural areas by 2015. DAFF Strategic Plan 2013/14–2017/18 32 The significant increase over the medium term in expenditure in the Animal Production and Heath subprogramme is the e result of additional funding of R492,4 million for Onderstepoort Biological Products to build and modernise vaccine production facilities and equipment, and R54,6 million to upgrade and maintain buildings and laboratories at the Stellenbosch Plant Quarantine Station. The spending focus over the medium term will be on increasing support to smallholder farmers and producers through the Ilima/Letsema Programme, the sustainable plant production systems and the maintenance of effective systems to manage the risks associated with plant pests and diseases. Through the Ilima/Letsema Programme, which is allocated R1,4 billion over the medium term for poverty alleviation, food security and job creation, the department will develop plant-related commodity strategies in 2013/14, with the focus on indigenous food crops. This strategy will guide the monitoring of the trends of genetic resources in food and agriculture by collecting and characterising indigenous land race plant genetic resources. In addition, over the medium term the department will conduct three plant disease and pest surveillance programmes and manage the risks associated with plant pests as part of its plant protection function. The significant increase in expenditure in 2011/12 was the result of an additional allocation of R200 million in 2010/11 to further strengthen Ilima/Letsema projects for poverty alleviation, food safety and job creation in rural areas. As a part of the cabinet approved budget reduction, the department reduced the allocation for spending on travel and subsistence in 2013/14 by R9,3 million. The reduction is not expected to have an adverse effect on service delivery, as personnel in the programme have been encouraged to use video conferencing instead of travelling to meetings and limits have been placed on the number of delegates going on foreign trips. The programme had a funded establishment of 1 516 posts and eight posts additional to the establishment. A total of 1 344 posts were filled and 177 were vacant as at 30 September 2012. The vacancies were because of the scarcity of skilled personnel and the extended recruitment procedure. These posts will be filled in 2013/14. Consultants are used mainly for legal services; activities related to aviation influenza, foot-and-mouth disease and classical swine fever; laboratory services and research. Expenditure on consultants decreased between 2010/11 and 2012/13 because of the conclusion of the avian influenza, foot-and-mouth disease and classical swine fever, laboratory services and research. Expenditure on consultants decreased between 2009/10, as the incidences of avian influenza, foot-and-mouth disease and classical swine fever had subsided. RESOURCE ALLOCATION Subprogramme Medium-term expenditure estimate 2013/14 2014/15 2015/16 R thousand Management 2 740 2 866 2 997 Inspection and Laboratory Services 303 152 315 702 332 263 Plant Production and Health 510 181 537 725 559 337 Animal Production and Health 299 818 340 673 488 390 Agricultural Research 950 254 1 069 151 920 767 Total 2 066 145 2 266 117 2 303 754 PART B: Strategic objectives 33 PURPOSE The programme facilitates and promotes household food security and agrarian reform programmes and initiatives tar geting subsistence and smallholder producers. It comprises three subprogrammes, namely, Food Security, Sector Capacity Development and Extension Support Services. Food Security: Facilitates the development of smallholder producers; provides implements and infrastructure and provides national frameworks to promote the sustainable households and national food production programme by im proving production systems of subsistence, smallholder and commercial producers in the agriculture, forestry and fishery sector to achieve food security livelihoods. Sector Capacity Development: Provides support to sector education and training, as well as colleges; facilitates and coordinates key special programmes, such as the implementation of the resolutions on vulnerable workers in the sector and supports sustainable growth and equitable participation. This entails facilitating and supporting education and train ing skills; promoting the development of centres of excellence on skills training; and developing, managing and coordi nating the sector transformation policy and strategy in line with government objectives. Extension Support Services: Develops national extension policies, norms and standards, and strategic leadership and guidance for the planning, coordination and implementation of extension and advisory services in the sector. This entails ensuring that all extension officers are registered with professional bodies to improve their professionalism and accountability. PROGRAMME DELIVERABLES Strategic outcome Improved food security and sustained agrarian reform Goal statement Increase profitable production of food, fibre and timber products by all categories of producers to improve food security and enhance agrarian reform Strategic objective Coordinate government food security initiative Objective statement Coordinate and provide support mechanisms to subsistence and smallholder producers to improve production of food to ensure food security and agrarian reform Baseline 121 000 subsistence farmers and 21 000 smallholder producers supported in 2012 Justification This objective will reduce the number of people who are food insecure in the country Links The objective will lead to job creation, access to food, improve livelihoods and lead to vibrant and sustainable rural communities Strategic objective Provide leadership and support to research training and extension in the sector Objective statement Improve the quality of education in colleges of agriculture by transforming them into ATIs Baseline 6 colleges were transformed into ATIs by accreditation with CHE Justification This objective will contribute to skills development in the agricultural field Links The objective will lead to improvement in the skills required by the farming, forestry and fisheries sector, thereby creating the competence level required OVERVIEW The sector continues to experience a decline in employment in real terms because of the effects of the global eco nomic recession and lack of investments on bulk infrastructure in rural areas in general and former homeland areas in particular. The sector is facing the challenge of stimulating the productivity of smallholder producers to fight household food insecurity and cost of food in the deep rural areas of the country. PROGRAMME 3 DAFF Strategic Plan 2013/14–2017/18 34 A period of high price volatility in agricultural commodity markets has entered its fifth successive year. High and volatile commodity prices and their implications for food insecurity are clearly among the important issues facing our govern ment today. The view of international bodies like the OECD is that agricultural commodity prices in real terms are likely to remain on a high plateau during the next ten years compared to the previous decade. We therefore need to promote and increase production. In line with Outcome 7 and global challenges, targets have been set to increase the number of smallholder producers from 200 000 to 250 000 by 2014 and to 500 000 by 2020. The critical factor will be the number of smallholder producers who remain viable and contribute meaningfully to food security and job creation in the rural areas. The food security production programmes remain the main solution to boost productivity and sustainability among smallholder producers. These programmes will need strong integrated support services and guaranteed market access from all stakeholders in the next five years and beyond. PROBLEM STATEMENT Previously black dominated areas remained underdeveloped because of a lack of investment. People living in these areas continue to struggle in spite of government efforts to boost food production and increase access to food for all. There is a need to coordinate and integrate all the support provided to smallholder and subsistence producers within the context of value-chain financing and the promotion of contract farming. IMPLEMENTATION STRATEGY The Food Security Policy will be implemented to support food security production programmes. The success of this programme will depend on the creation of one-stop services at local municipality level and the establishment of service centres within the cluster of municipality wards and where the potential for production is high. Spatial planning should supersede all support to smallholder and subsistence producers. This will be followed by targeting specific commodities in line with the food and market demand within a given geographical area, in support of the programmes. Over the medium term, the focus will be on household food production and food security through targeted support to subsistence and smallholder farmers and producers and/or processors. This will include an enhanced mechanisation policy and the implementation thereof, improved public-private partnerships on food production; and improved planning and logistics on the handling, storage and distribution of food products, as well as the revitalisation of colleges of agriculture into agricultural training institutions. EXPENDITURE TRENDS The spending focus over the medium term will be on providing comprehensive support to subsistence and smallholder producers through the Food Security subprogramme. The spending focus will also be on providing infrastructure develop ment, production interventions and improved market access to attain food security. This will be achieved through the Comprehensive Agricultural Support Programme (CASP), which is allocated R2,9 billion over the medium term to provide for the infrastructure needs of 220 000 existing, 80 000 new smallholder producers and 380 000 subsistence producers. The support provided, includes a mechanisation support programme that targets the subsistence and small holder producers in order to increase their production. Expenditure on consultants is projected to increase over the medium term as support is provided to a greater number of producers. The consultants provide engineering services, subsistence farming advice and demonstrations on the use of new and complicated farming machinery and equipment. They also provide advice on the infrastructure requirements of farmers in the CASP. This subprogramme had a funded establishment of 240 posts and 8 posts additional to the establishment. There were vacancies as at 30 September 2012, mainly owing to natural attrition. These posts will be filled in 2013/14. Through the Sector Capacity Development subprogramme there will be upgrading and strengthening of 12 provincial e and rural colleges of agriculture. Between 2009/10 and 2012/13, the significant increase in expenditure in the Sector Capacity Development subprogramme was the result of the allocation of an additional R152,2 million for the infrastructuree of the provincial and rural colleges of agriculture component of the CASP conditional grant in 2011/12; and the subsequent allocation of R197 million earmarked for research, facilities and equipment, as well as the increasing student intake in these colleges. These additional allocations account for the increase in the transfers and subsidies over the period. The subprogramme had a staff complement of 217 in 2012/13. Expenditure in the National Extension Support Services subprogramme increased over the same period owing to thee introduction of CASP, the ERP and the training and recruitment of provincial extension officers. The significant increase PART B: Strategic objectives 35 in expenditure on goods and services in 2012/13 was the result of the one-off reprioritisation of funds from transfers to provincial and rural colleges for goods and services. The subprogramme had a staff complement of 14 in 2012/13. As part of the cabinet approved budget reductions, the department reduced the allocation for spending on travel and subsistence in 2013/14 by R5,5 million. The reduction is not expected to have an adverse effect on service delivery as personnel in the programme have been encouraged to use video conferencing instead of travelling to meetings and limits have been placed on the number of delegates on foreign trips. The programme has a funded establishment of 474 posts and 15 posts are additional to the establishment. There were 80 funded vacancies as at 30 September 2012. The vacancies were owing to the scarcity of skilled personnel and the extended recruitment procedure. These posts will be filled in 2013/14. RESOURCE ALLOCATION Subprogramme Medium-term expenditure estimate 2013/14 2014/15 2015/16 R thousand Management 2 666 2 796 2 922 Food Security 1 015 932 1 064 106 1 111 485 Sector Capacity Development 208 419 249 209 262 444 National Extension Support Services 370 718 392 594 410 620 Total 1 597 735 1 708 705 1 787 471 DAFF Strategic Plan 2013/14–2017/18 36 PURPOSE Promote economic development, trade and market access for agriculture, forestry and fisheries products and foster international relations for the sector. The programme comprises the following three subprogrammes: International Relations and Trade; Cooperatives and Rural Enterprise Development; and Agro-processing and Marketing. International Relations and Trade: Facilitates and coordinates international relations and trade through negotiations, development and implementation of appropriate policies and programmes. Cooperatives and Rural Enterprise Development: Facilitates and supports the development of businesses to ensure transformation of the agriculture, forestry and fisheries sectors. Agro-processing and Marketing: Develops and implements support programmes to promote market access and value addition for agriculture, forestry and fisheries products. Strategic intervention • Lead and monitor the promotion of economic development, trade and market access for agriculture, forestry and fisheries products and the transformation of the sector • Development of commodity-based investment plans PROGRAMME DELIVERABLES Strategic outcome Rural job creation and sustainable economic livelihoods Goal statement Increase profitable production of food, fibre and timber products by all categories of producers Strategic objective Coordinate government food security initiative and provide comprehensive support towards rural development Objective statement To ensure the organisation of smallholder producers into commodity associations to give collective power in negotiations for inputs and marketing and increase jobs in agro-processing Baseline 241 cooperatives established over the medium term Justification This objective will enhance the efficiency, effectiveness and economy of production and maximise the economic potential of the agriculture, forestry and fisheries sector Links IPAP2 Strategic outcome More labour-absorbing growth Goal statement Increase contribution of the sector to economic growth and development Strategic objective Increase growth, income and sustainable job opportunities in the value chain; and increase market access for South African agricultural, forestry and fisheries products domestically and internationally Objective statement Enhance the ability of the sector to maximise job opportunities and wealth creation through implementation of sector charters, improvement of sector value chains and SMME support Baseline AgriBEE Act published in terms of section 9, Fisheries value chain Justification This objective will contribute towards the promotion of sustainable economic livelihoods for previously disadvantaged communities and rural job creation; and ensure market access for agriculture, forestry and fisheries products Links IGDP PROGRAMME 4 PART B: Strategic objectives 37 Strategic outcome Advancement of African agenda and sustainable development Goal statement Ensure effective and efficient governance Strategic objective Establish and strengthen cooperative governance and functional relations with local and international stakeholders Objective statement Coordinate the signing and implementation of cooperative agreements and strengthen regional, continental and global platforms and governance institutions Baseline 18 agreements signed Justification This objective will ensure the promotion and protection of agriculture, forestry and fisheries interests regionally and internationally Links NDP, IGDP OVERVIEW The DAFF will ensure facilitation of market access for agriculture, forestry and fisheries products domestically and inter nationally, through the agricultural, forestry and fisheries marketing support interventions, such as marketing information, training, facilitating the establishment of marketing infrastructure and the issuing of import and export permits in terms of trade agreements signed between South Africa and trading partners. Collaboration with the NAMC will be continued to implement shared projects such as the monitoring of food prices across the country. DAFF will empower and utilise its foreign representatives in the facilitation of market access for agriculture, forestry and fisheries products internationally, as well as building relations with countries. Negotiations with developed and developing countries with the aim of broadening market access for South African agricultural products in various markets through bilateral trade initiatives such as with the European Union (EU), European Free Trade Association (EFTA), Southern African Customs Union (SACU), SADC, India and multilaterally through market access negotiations at the World Trade Organization (WTO), will be improved. The department will facilitate the development of viable and sustainable cooperatives to provide support for increased production on niche markets and products that offer a competitive advantage and integration of agrarian reform enterprises to the overall commercial export producers’ infrastructure. In cooperation with the dti, the programme will enhance export promotion and marketing capacity. New jobs will also be created through expanded sectoral export and access to the domestic market. The programme will engage and conclude agreements with domestic and international partners to provide support in scarce skills develop ment. Through a Memorandum of Understanding (MoU) with other strategic countries, the programme will establish official exchange programmes for skills development purposes and develop relevant skills to support agrarian reform. The other areas of importance will be to facilitate the functioning of the AgriBEE Charter Council towards the finalisation of the AgriBEE sector codes, increase the number of AgriBEE equity deals annually by 10%, facilitate the increase of the number of sustainable land and agrarian reform projects/beneficiaries, increase the number of farmers and/or entre preneurs gaining access to financial services and the number of member-based financial institutions linked to fi nancial markets. PROBLEM STATEMENT Since the advent of deregulation of agricultural markets and liberalisation of international trade, the South African agri cultural sector has become an integral part of the global economy. The re-entry and expansion of the South African agricultural sector into the global trade environment, necessitated the sector to adjust to the new environment so that it becomes relevant to the changed environment, as well as play a significant role in world trade on agriculture, forestry and fisheries products. From the trade point of view, the challenge facing the sector is to diversify its export destinations as well as broaden the basket of commodities and value-added products that are destined for export markets. Market access by developing producers has also been identified as one of the key challenges noted by the department. In pursuit of addressing the challenge, the DAFF will implement the strategy aimed at unblocking market access barriers such as facilitating the DAFF Strategic Plan 2013/14–2017/18 38 establishment of agricultural marketing infrastructure, providing marketing information to farmers, as well as providing capacity-building training programmes as part of increasing the knowledge base of farmers. In the implementation of South Africa’s foreign policy objectives, the DAFF will continue to interact with various agricul tural sector stakeholders at national, regional and international level. Other than the structured interactions through bilateral and multilateral agreements, there are a number of engagements that the DAFF is expected to participate in. A need to expand to the new strategic partners in line with the consolidation of the African Agenda has been identified. A further need was identified to put systems into place to monitor engagements with international partners. IMPLEMENTATION STRATEGY Strategies and interventions aimed at improving market access will continue to be implemented. The interventions will focus on training, providing marketing information and facilitating the establishment of agricultural marketing infrastructure for developing farmers and addressing trade barriers for all exports. The DAFF will participate in trade negotiation sessions aimed at improving the access of South African agricultural products on regional and international markets. The DAFF will continue to work with other government departments to improve the efficiency of the agro-logistics system to promote an efficient and cost-effective flow of agriculture, forestry and fisheries commodities across the economy. In an effort to strengthen international relations, a special focus will be placed on the implementation of agreements, through continuous engagements with bilateral and multilateral partners. A special focus will be put on the new strategic partners in line with the consolidation of the African Agenda. The implementation strategy will focus on putting systems in place to advance the efforts of South Africa to implement the Comprehensive African Agricultural Development Programme (CAADP), strengthen South-South cooperation (India, Brazil and South Africa) and North-South relations and contribute towards the UN reform process. The strategy is informed by foreign policy objectives and the International Trade and Security Cluster (ITSC) priorities. In addition to the signing of agreements with different international partners, the subprogramme will focus on implementa tion and monitoring of agreements, which will take centre stage. Various funding options will be explored to assist with the implementation of the agreements. The success of this process will depend on collaboration and partnership with relevant stakeholders. In this context, there is the questionable ability of partners to implement the agreements be cause of capacity problems. It is therefore critical that partnerships with the SADC and IBSA should be prioritised. Furthermore, as recommended by the ITSC cluster, post-conflict reconstruction efforts will take preference. EXPENDITURE TRENDS The spending focus over the medium term will be on enhancing market access and trade for agricultural, forestry and fisheries products by extending trade, marketing and enterprise development support measures to producers and entre preneurs across the industries’ value chains. The spending focus will also be on ensuring the establishment of and providing support to commodity groups and cooperatives by making transfers to the National Agricultural Marketing Council and the Land and Agricultural Development Bank of South Africa. The department expects the transfers will establish 27 (1 per province per annum) sustainable, commodity-based cooperatives over the medium term and sup port the establishment of 9 sustainable agribusiness deals (1 per province) over the medium term, in line with the AgriBEE Sector Charter. In line with the objective to link farmers to market initiatives, 300 farmers over the medium term will receive training on the basics of marketing and will be provided with marketing information through specially designed website and mobile phones. In addition, over the medium term R83 million will be spent on the facilitation of bilateral and multilateral forums, in pursuit of the goal of negotiating market access for agricultural, forestry and fisheries products, and fostering and maintaining good international relations. The increase in spending in the Management subprogramme between 2009 and 2012/13 was the result of the creatione and filling of programme assistant positions, which accounts for the increase in spending on compensation of employees over the same period. As part of the cabinet approved budget reductions, the department reduced the allocation for spending on travel and subsistence in 2013/14 by R1,9 million. The reduction is not expected to have an adverse effect on service delivery, as personnel in the programme have been encouraged to use video conferencing instead of travelling to meetings and limits have been placed on the number of delegates going on foreign trips. PART B: Strategic objectives 39 As at 30 September 2012, there were 170 funded posts and one post additional to the establishment, of which 29 were vacant. The vacancies were the result of the scarcity of skilled personnel and the length of time it takes to finalise the recruitment process. The posts are to be filled in 2013/14. The increase in expenditure on consultants in this programme over the MTEF period is because of the appointment of the National Agricultural Marketing Council to conduct an economic study on the AgriBEE Sector Charter threshold. RESOURCE ALLOCATION Subprogramme Medium-term expenditure estimate 2013/14 2014/15 2015/16 R thousand Management 2 672 2 792 2 918 International Relations and Trade 106 353 104 586 107 128 Cooperatives and Rural Enterprise Development 72 418 75 524 78 031 Agro-processing and Marketing 50 205 53 131 55 808 Total 231 648 236 033 243 885 DAFF Strategic Plan 2013/14–2017/18 40 PURPOSE To provide strategic direction and leadership to the department with regard to the promotion of the sustainable manage ment, use and protection of forests and natural resources to achieve social and economic benefits and to promote development. There are three subprogrammes in the Forestry and Natural Resources Management Programme, namely, Forestry Operations; Forestry Development and Regulation; and Natural Resources Management. Forestry Operations: Ensures sustainable management of forestry operations through managing state forests and woodlands, as well as other state assets in the nine provinces. Forestry Development and Regulation: Ensures effective development of policies for forestry development and regulation by promoting the optimum development of commercial forestry and greening and the development of small-scale forestry. Natural Resources Management: Facilitates the development of infrastructure and the sustainable use of natural resources through an enabling framework for the sustainable management of woodlands and indigenous forests, the efficient development and revitalisation of irrigation schemes and water use. The subprogramme will facilitate climate change mitigation and adaptation, risk and disaster management as well as promote, regulate and coordinate the sus tainable use of natural resources (land and water). PROGRAMME DELIVERABLES Strategic outcome Sustainable agrarian reform Goal statement Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective Coordinate government food security initiative Objective statement To provide support to 1 300 small producers (growers) with capacity-building interventions, including technical advice, training and linking to potential funders to improve production efficiency of forestry and socio-economic livelihoods Baseline Number of small producers (growers) supported: 1 000 Justification Increasing forestry production requires maximum stakeholder participation; the department will work with stakeholders within the sector on initiatives and interventions to increase production within the subsistence, smallholder and commercial environments Links Forestry Sector Charter, DAFF IGDP, NFAP, White Paper, NFP, Forestry 2030 Roadmap, NGP Strategic outcome Sustainable agrarian reform Goal statement Sustained management of natural resources Strategic objective Ensure the sustainable management and efficient use of natural resources Objective statement To revitalise 250 ha on irrigation schemes using CASP and Ilima/Letsema funding. Revitalisation work entails repairing of pump-houses, installation of electrical components, cleaning and construction of canals, including those for canals for drainage, repair of roads in the irrigation schemes, repair and erection of fences in the irrigation schemes, repair and installation of irrigation infrastructure Baseline Increased number of hectares on irrigation schemes revitalised: 250 Justification The national programme to support the refurbishment and maintenance of smallholder government irrigation schemes Links DAFF IGDP, White Paper, NGP PROGRAMME 5 PART B: Strategic objectives 41 Strategic outcome Sustainable environmental management Goal statement Sustained management of natural resources Strategic objective Ensure the sustainable management and efficient use of natural resources Objective statement To rehabilitate 32 280 ha of rangeland, cultivated land, weeds and invader plants through implementation of protection and conservation measures Baseline Increased number of hectares of agricultural land, woodlands, indigenous forests and TUPs rehabilitated: 11 868 Justification The national programme to coordinate rehabilitation of degraded indigenous forests, woodlands and agricultural land Links Conservation of Agricultural Resources Act (CARA), Forestry Sector Charter, DAFF IGDP, NFAP, White Paper, NFP, Forestry 2030 Roadmap, NGP Strategic outcome Reduced climate change (impact) and improved air/atmospheric quality Goal statement Sustained management of natural resources Strategic objective Ensure the sustainable management and efficient use of natural resources Objective statement To develop and submit climate change adaptation and mitigation programmes through monitoring and evaluating the sensitivity of crop suitability in South Africa to climate change and mitigation; and adaptation to climate variability and change (Biogas Production Integrated Crop-livestock System) Baseline Climate change adaptation and mitigation plan implemented Justification The national programme to coordinate the development, implementation and monitoring of climate change adaptation plans Links DAFF IGDP, White Paper, NGP Strategic outcome Sustainable environmental management Goal statement Increased contribution of the sector to economic growth and development Strategic objective Increase the level of public and private investment for agriculture, forestry and fisheries products Objective statement To implement Forestry Sector Charter undertakings through developing guidelines and toolkits to ensure Sustainable Forest Management (SFM) Baseline Implement DAFF Plantation Growth and SMME Strategies Justification The programme seeks to ensure renewed growth, transformation and sustainability throughout the value chain in economic, social and environmental terms, in ways which continue to improve the lives of the poor Links Forestry Sector Charter, DAFF IGDP, NFAP, White Paper, NFP, Forestry 2030 Roadmap, NGP PROBLEM STATEMENT The sector has experienced a number of challenges which impeded it from realising its full potential for contribution to job and wealth creation as well as conservation of biological diversity. The challenges range from an inadequate supply of timber products; biased equity distribution in the value chain; contribution to poverty alleviation and economic development; slow afforestation uptake to cumbersome licensing processes within government; the impact of natural hazards and climate change which pose a threat to the production of food. Unsustainable land-use practices are also intensifying and this has contributed to increased acidification, reduction in organic matter and soil erosion, the collapse and reduced efficiency of small-farmer irrigation schemes. The sector’s goal following two decades of shrinkage of the country’s plantation resources and increasing pressure on natural forests and woodlands by development is to ensure renewed growth, transformation and sustainability throughout the value chain, in economic, social and environmental terms, in ways which continue to improve the lives of the poor. Of increasing importance, is the role that plantations and DAFF Strategic Plan 2013/14–2017/18 42 the timber-processing and manufacturing industries which they support, can play in both South Africa’s energy security and commitments to address climate change. South Africa is approaching the limits of increasing productivity from a declining resource. As a result, government has prioritised the expansion of the plantation area in South Africa in areas where it is economically, environmentally and socially appropriate to do so. This is not only important for the country’s growth but also for transformation as it is difficult to achieve meaningful change in any of the key transformation areas in a stagnant or declining sector. The challenges the sector faces in terms of equity include skewed or insufficient levels of transformation in terms of BBBEE; equity in terms of access to markets, information and sufficient support provided at required scales and sufficient levels. IMPLEMENTATION STRATEGY The DAFF IGDP identifies the challenges the sector faces and the interventions required to address the challenges. The NFAP was published in 1997 and had the expressed purpose of mobilising and organising national and inter national resources and catalysing action to implement programmes and plans in a coordinated manner. It set out the most important work to be done in the first three years of implementation, identified specific goals for each issue and provided a framework for implementing forest policy as set out in the White Paper, i.e. to promote a thriving, equitable and sustainable forest sector. A review of the NFAP in 2003, led to the development of the NFP, a globally adopted framework for national forest policy development, planning and implementation, which is applicable to all countries and all types of forests. It was designed to address forestry issues within the context of sustainable development, to link all government and non-government forestry plans and strategies, and maximise the contribution of forestry to poverty reduction. The process of developing a long-term strategy for the forestry sector was initiated in 2007, resulting in the Forestry 2030 Roadmap, which was finalised after a two-year period of consultation and deliberation between government and industry. This framework was designed to serve as a roadmap or blueprint for effective and sustainable development of all forestry resources and to assist the forestry sector in addressing its constraints and challenges and realising its full potential in terms of contribution to job and wealth creation as well as conservation of biological diversity. BUDGET CONSTRAINTS Funding for forestry projects has for a very long time been a recurring constraint. The DAFF Sector IGDP acknowledges that there is a need for improved spending strategies, ensuring that government spending is a reflection of government policy and strategy, therefore requiring the Sector IGDP to also propose the development of a financial/spending strategy. EXPENDITURE TRENDS The spending focus over the medium term will be on sustainable forestry management and implementing the LandCare Programme, rehabilitating flood-damaged infrastructure and preventing and mitigating disaster risks. The department projects that 2 900 full-time jobs will be created through the LandCare Programme’s projects. The implementation of the flood assistance scheme has started in the six provinces affected by floods and R909 million will be spent over the medium term on repairing flood-damaged agricultural infrastructure. The allocations to this programme over the medium term, will also be directed towards creating 7 325 jobs through the refurbishment of Category B and C plantations in Limpopo, KwaZulu-Natal, Mpumalanga and Eastern Cape, and re planting 5 340 ha of temporarily unplanted areas in all provinces. Between 2009/10 and 2012/13, expenditure on goods and services decreased owing to budget reductions in expenditure on travel and subsistence, while the increase in expenditure on households over the same period was the result of the compensation paid to farmers for avian influenza. The increase in expenditure on machinery and equipment over the same period was the result of the procurement of fire trucks and weeding equipment. The increase in expenditure in the Natural Resources Management subprogramme in 2011/12 and 2013/14, amounted to a total cost of R105 millione and additional funding of R1,3 billion for flood-damaged infrastructure. As part of the cabinet approved budget reductions, the department reduced all allocations for spending on travel and subsistence over the medium term by R7,4 million. This reduction is not expected to have an adverse effect on service delivery, as personnel in the programme have been encouraged to use video conferencing instead of travelling to meetings and limits have been placed on the number of delegates going on foreign trips. There were 3 184 posts and 17 additional posts, of which 395 were vacant as at 30 September 2012. This is mainly the result of the difficulty in recruiting skilled personnel and the extended recruitment. The posts are to be filled in 2013/14. Consultants are used where specialised skills in forestry management are required. PART B: Strategic objectives 43 RESOURCE ALLOCATION Subprogramme Medium-term expenditure estimate 2013/14 2014/15 2015/16 R thousand Management 3 007 3 270 3 542 Forestry Operations 466 324 493 932 520 239 Forestry Oversight and Regulation 56 094 58 501 62 849 Natural Resources Management 659 049 630 219 659 887 Total 1 184 474 1 185 922 1 246 517 DAFF Strategic Plan 2013/14–2017/18 44 PURPOSE Promote the management, monitoring and sustainable use of marine living resources and the development of South Africa’s fisheries sector. Sustainable livelihoods will be promoted through aquaculture growth and fisheries economic development. The programme comprises five subprogrammes, namely, Aquaculture Management; Fisheries Research and Development; Marine Resources Management; Monitoring, Control and Surveillance and Fisheries Operations Support. Aquaculture Management: Ensures aquaculture growth by providing public support and an integrated platform for management of aquaculture. Fisheries Research and Development: Ensures the promotion of the sustainable development of fisheries resources and ecosystems by conducting and supporting appropriate research. Marine Resources Management: Ensures the sustainability, utilisation and equitable and orderly access to the marine living resources through improved management and regulation. Monitoring, Control and Surveillance: Ensures the protection and promotion of sustainable use of marine living re sources by intensifying enforcement and compliance. Fisheries Operations Support: Provides operational support for fisheries and aquaculture economic development and livelihoods opportunities. PROGRAMME DELIVERABLES Strategic outcome Sustained agrarian reform Goal statement Increase profitable production of food, fibre and timber products by all categories of producers Strategic objective Coordinate government food security initiative Objective statement To promote sustainable agrarian reform initiatives through the support of fish farms, aquaculture development zones and hatcheries Baseline 11 fish farms supported Justification This objective will enhance the efficiency, effectiveness and economy of production and maximise the economic potential of the agriculture, forestry and fisheries sector Links Marine Living Resources Act, 1998 (Act No. 18 of 1998) Strategic outcome Sustained management of natural resources Goal statement Protect and enhance our environmental assets and natural resources Strategic objective Ensure the sustainable management and efficient use of natural resources and the protection of indigenous genetic resources Objective statement To enforce compliance with marine and coastal legislation; ensure maintenance of optimal levels of fish and provide for the recovery of depleted fish stocks Baseline Recovery strategies implemented in four sectors (abalone, hake, linefish and West Coast rock lobster) Justification This objective will contribute towards the economic, efficient and effective use of natural resources Links Marine Living Resources Act, 1998 (Act No. 18 of 1998) Strategic outcome More labour-absorbing growth Goal statement Increase contribution of the sector to economic growth and development PROGRAMME 6 PART B: Strategic objectives 45 Strategic objective Increase growth, income and sustainable job opportunities in the value chain; and increase market access for South African agricultural, forestry and fisheries products domestically and internationally Objective statement To enhance the ability of the sector to maximise job opportunities and wealth creation; and minimise poverty levels and infrastructure dilapidation Baseline 1 000 job opportunities created annually through the Working for Fisheries Programme Justification This objective will contribute towards the promotion of sustainable economic livelihoods for previously disadvantaged communities and rural job creation Links Marine Living Resources Act, 1998 (Act No. 18 of 1998) OVERVIEW Fisheries and aquaculture will be conducting fishery specific research to inform the setting of TACs/TAEs in 22 fishing sectors. The programme will also focus on maintaining the productivity of fish stocks and ecosystems and rebuilding depleted fish stocks through the implementation of the Stock Recovery Strategy for Hake, Abalone, West Coast Rock Lobster and Linefish; supporting the development of the small-scale fisheries sector through the implementation of the Small-scale Fisheries Policy; facilitating investment in production and supporting infrastructure for aquaculture and fisheries; and making fisheries services more accessible to clients. PROBLEM STATEMENT Although South Africa has a well-established fishery sector, the sector faces a number of challenges. The following challenges are highlighted and will therefore inform the key strategic areas that the branch will focus on: • Limited natural resources: the sector is facing declining, and in some instances, collapsing fish stocks while at the same time the country is experiencing a growing reliance on the fish resources as a source of food security. The challenge for the department is to address recovery and rebuilding measures for depleted stocks, broadening the scope of aquaculture as well as supporting fishing communities to find alternative livelihood avenues in order to ensure sustainable food security. • Access to markets: persistent changes in the global market conditions continue to pose challenges to the fishing sector’s ability to access markets for the exportation of fishing products and economic growth. • Climate change: this has resulted in the migration of natural resources from their original habitat, therefore leading to increasing levels of poverty, unemployment, infrastructure dilapidation owing to either closure and/or migration of fish-processing facilities to other areas. • Illegal fishing: Fisheries generally is a highly contested industry, both locally and globally. It is plagued with syndi cated crime, overexploitation of high-value species, corruption and poor compliance levels. Hence, the department must introduce comprehensive responses to this complex, highly technical and technologically advanced challenge of locally and internationally organised crime. • Capacity constraints: the branch does not have the adequate human, financial and infrastructure resources re quired to deliver excellent services to its stakeholders and communities at large. IMPLEMENTATION STRATEGY Fisheries and Aquaculture is guided by national and international obligations and legislations which have to be adhered to at all times. Regional Fisheries Management Organisations (RFMOs) and regional programmes such as the Benguela Current Commission (BCC) and other related programmes will be implemented. The Fisheries Implementation Strategy as aligned to the three national strategic outcomes 4, 7 and 10 will also consider the departmental key strategic thrusts, i.e. job creation, food security and smallholder development strategy. The Working for Fisheries Programme (WFFP) will remain one of our vehicles for economic growth and sustainable livelihoods. While implementing an ecosystem approach for fisheries management, MLRF will continue to embark on fishery specific research, which will inform the setting of TACs/TAEs in 22 fishing sectors and implement the Stock Recovery Strategy for Hake, Abalone, West Coast Rock Lobster and Linefish. The department will also focus on implementation of the Small-scale Fisheries Policy and broaden the scope of the aquaculture sector. DAFF Strategic Plan 2013/14–2017/18 46 The Integrated Fisheries Security Strategy will be implemented in order to coordinate and improve enforcement efforts in the hake, abalone, squid, West Coast rock lobster and linefish sectors. The department will continue to grow the fisheries sector by broadening the scope of the aquaculture subsector through facilitation of investments in production and support infrastructure, provision of support to community-based projects and commercial freshwater and marine fish farms, and by expanding the production base through on-going pilot research projects on the commercial viability of new aquaculture species and full implementation of the Aquaculture Research and Technology Development Programme. Further opportunities and livelihood alternatives in the fishing communities will be created through the implementation of EPWP projects in coastal and rural communities under the WFFP. EXPENDITURE TRENDS The spending focus over the medium term will be on the sustainable use of marine living resources and the Working for Fisheries Programme. A total of R202,8 million over the medium term have been allocated for the implementation of fisheries projects and 3 000 job opportunities are expected to be created in coastal and rural communities. The spending focus will also be on performing an annual fishery specific research to inform the process of setting the TACs in 22 fishing sectors a year until 2015/16. This includes continuing with the finalisation and implementation of the Small scale Fisheries Policy in 2013/14, as well as improving compliance with and enforcement of the Marine Living Resources Act (1998) by finalising the development and implementation of the Integrated Fisheries Security Strategy from 2013/14 onwards. The programme provides for personnel costs and a transfer payment to the Marine Living Resources Fund. The sig nificant increase in expenditure between 2009/10 and 2012/13 was the result of the transfer of the Working for Fisheries Programme from the Department of Environmental Affairs to this programme, and a rollover of R67,3 million in 2012/13 to pay the Department of Public Works for the maintenance and repair of the 12 Western Cape harbours. The programme has a funded establishment of 603 posts and 22 were additional to the establishment. There were 112 vacancies as at 30 September 2012 owing to the difficulty in recruiting skilled personnel and the extended recruitment procedure. The posts will be filled in 2013/14. RESOURCE ALLOCATION Subprogramme Medium-term expenditure estimate 2013/14 2014/15 2015/16 R thousand Management 1 967 2 065 2 168 Aquaculture 29 387 30 780 32 243 Monitoring Control and Surveillance 73 597 77 086 80 751 Marine Resources Management 17 634 18 471 19 350 Fisheries Research and Development 54 323 56 899 59 604 Marine Living Resources Fund 257 128 261 631 273 923 Total 434 036 446 932 468 039 PART C Links with other plansLinks with other plans DAFF Strategic Plan 2013/14–2017/18 48 Acquisition and asset management Acquisition and asset management FIXED CAPITAL ASSETS The department normally plans for the construction of new buildings and repairs and maintenance of fixed capital as sets in conjunction with the official programme of the DPW. Once needs have been identified, a certified needs assess ment is submitted to the DPW as the custodian of all government buildings. Project name Type of infrastructure Service delivery outputs 2013/14 2014/15 2015/16 Foot-and-mouth disease border fence Fence and access roads and water control structures 20 km elephant control fence and 20 km normal fence 23 602 25 674 27 057 Drilling Boreholes 120 boreholes a year 9 650 10 500 11 000 Durban Quarantine station Quarantine station – – – Stellenbosch Office building Additional administrative building – – – King Shaka International Airport Kennels Sniffer dog kennels 1 941 – – Upington Office building and laboratory Office and laboratory building – 1 174 836 Upington Store Store at locust control depot – 333 – Upington Fence Perimeter fence at locust control site – 600 – Stellenbosch Chemical store Chemical store – 480 – Grootfontein Agricultural Development Institute Building New hostel accommodation for students – – – Cape Town Kennels Sniffer dog kennels 1 941 – 771 Pretoria, Roodeplaat Laboratories Diagnostic laboratories 1 000 1 174 6 000 Pretoria, Roodeplaat Office building Additional office space 1 000 7 000 2 700 Pretoria, Agriculture Place Ablution facilities Upgraded ablution facilities, Agriculture Place 2 500 1 100 – Pretoria Reception areas Upgraded reception areas: Agriculture Place, Harvest House and Sefala Building 500 – – Pretoria Power supply to Agriculture Place Upgraded electrical power supply at Agriculture Place 200 400 200 Pretoria Aircon system Central air-conditioning system, Agriculture Place – 600 1 500 Limpopo: Umthali Municipality District Seed bank New seed bank building 560 – – Eastern Cape: Sterkspruit Seed bank New seed bank building 600 40 – Upington Dam Waste containment dam 400 – – Cape Town, Milnerton Office building Additional office space at Animal Quarantine Station 272 1 105 1 395 Stellenbosch: Plant Health Quarantine Station (all buildings) Air-conditioning system Air-conditioning system – 554 1 000 Cape Town, Ministry Refurbishments: Ministry, Cape Town Refurbished offices for Ministry 100 – – Stellenbosch, Plant Health Security system Integrated security system – – 100 Stellenbosch, Plant Health Mycology laboratory Minor alterations 160 2 000 – Stellenbosch, Plant Health Offices/laboratories Minor upgrading at Liquor Products Section 500 42 37 PART C: Links with other plans 49 Project name Type of infrastructure Service delivery outputs 2013/14 2014/15 2015/16 Stellenbosch, Plant Health Main entrance Alterations to entrance, Polka Drive in terms of traffic regulations 400 50 90 Roodeplaat: Sniffer dog training facilities Kennels Sniffer dog kennels 1 941 100 771 Mpumalanga, Skukuza: Alterations to offices/ laboratories Building Upgrading of existing buildings 1 500 1 174 – Stellenbosch Electrical substation Upgrading of electrical substation 200 – 200 Kempton Park Kennels Sniffer dog kennels 500 Pretoria Office building Feasibility study on the instal lation of central air-conditioning system at Agriculture Place: WCS 051648 500 – – Buffelspoort Office building Various repairs and maintenance: WCS 052060 500 – – Durban Quarantine station Construction of Animal Quaran tine Station: WCS 045521 (Project placed on hold pending completion of the site clearance) 29 721 500 – Stellenbosch, Plant Health Office building Upgrade and maintenance of building and laboratory facility 3 500 22 500 28 600 Total 83 188 77 600 82 257 MOVABLE ASSETS The following is a summary of the anticipated acquisition of movable assets and related costs: Asset type 2013/14 2014/15 2015/16 R’000 R’000 R’000 38 432 42 364 45 257 Machinery and equipment 59 184 57 694 60 620 Biological assets 663 657 734 Software and other intangible assets 215 169 172 Total 98 494 100 884 106 783 REHABILITATION AND MAINTENANCE OF PHYSICAL ASSETS All departmental assets are being serviced as and when required or in terms of a maintenance plan. Assets which are not serviceable are normally auctioned off, the proceeds of which are deposited into the National Revenue Fund. CAPITAL TRANSFERS The department plans to transfer the following capital funds: Item 2013/14 2014/15 2015/16 R’000 R’000 R’000 74 507 78 977 82 610 ARC: Agricultural research and infrastructure 14 615 15 492 16 205 CASP: Flood damaged infrastructure 298 959 298 244 311 963 OBP: Building and vaccine facility 96 500 127 500 268 400 Total 484 581 520 213 679 178 DAFF Strategic Plan 2013/14–2017/18 50 MULTIYEAR PROJECTIONS AND PROJECTED RECEIPTS FROM THE SALE OF ASSETS Departmental receipts 2013/14 2014/15 2015/16 R’000 R’000 R’000 Sales of goods and services 118 545 124 472 130 696 Sales of scrap, waste and other used current goods 9 9 9 Transfers received 121 127 133 Fines, penalties and forfeits 28 29 30 Interest, dividends and rent on land 15 750 16 538 17 365 Sales of capital assets 1 050 1 103 1 158 Financial transactions in assets and liabilities 16 800 17 640 18 522 Total 152 303 159 918 167 913 Public entities and other agencies Public entities and other agencies AGRICULTURAL RESEARCH COUNCIL Mandate and goals The Agricultural Research Council (ARC) is a public entity established under the Agricultural Research Act, 1990 (Act No. 86 of 1990 as amended). The primary mandate of the ARC is to conduct research, development and transfer of technology in order to promote agricultural development; facilitate natural resource conservation; contribute to a better quality of life for all South Africans; and alleviate poverty. To achieve its mandate, the ARC conducts fundamental and applied research with partners to generate knowledge, develop human capital and foster innovation in agriculture through technology development and dissemination, and commercialisation of research results. The following six strategic goals form the basis of its strategic plan: undertake and promote research, development and transfer of technology; utilise the technological expertise in its possession and make it generally available; publish in formation concerning its objectives and function; establish and control facilities in those fields of research, development and transfer of technology; and promote cooperatives between the Republic and other countries with regard to research, development and transfer of technology. MARINE LIVING RESOURCES FUND Mandate and goals The Marine Living Resources Fund was established in terms of the Marine Living Resources Act, 1998 (Act No. 18 of 1998). The fund’s mandate and core business is to manage the development and sustainable use of South Africa’s marine resources, and protect the integrity and quality of the marine ecosystem. The goals of the entity over the medium term include: conducting annual fishery specific research to inform the setting of TACs/TAEs in 22 fishing sectors; investigation on the feasibility of six potential new fisheries; implementing the Stock Recovery Strategy for Hake, Abalone, West Coast Rock Lobster and Linefish; finalising and implementing the Small scale Fisheries Policy; broadening the scope of the aquaculture sector by launching 15 aquaculture pilot projects by 2015/16; developing and implementing a proactive stakeholder engagement strategy; setting transformation targets for the allocation of new fishing rights, developing and implementing the Integrated Fisheries Security Strategy to ensure better compliance, monitoring and enforcement efforts; and facilitating the creation of 3 450 job opportunities in the coastal and rural communities through the implementation of projects under the WFFP by 2015/16. These priorities are aligned to the three national strategic outcomes 4, 7 and 10 and take into account the departmental key strategic thrusts, i.e., Job Creation, Zero Hunger Campaign and Smallholder Development Strategy. PART C: Links with other plans 51 NATIONAL AGRICULTURAL MARKETING COUNCIL Mandate and goals The National Agricultural Marketing Council (NAMC) was established in terms of the Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996), to provide strategic advice to the Minister of Agriculture, Forestry and Fisheries on all agricultural marketing issues, to improve market efficiency and market access by all participants, optimise export earnings and improve the viability of the agricultural sector. The goals of the council over the medium term are to achieve the following: increased market access for all market participants; promotion of efficiency in the marketing of agricultural products; optimisation of export earnings from agri cultural products and enhancement of the viability of the agricultural sector. The NAMC will achieve the above by pro viding quality research to key stakeholders in support of agricultural marketing decision making; providing statutory measures and recommendations in support of an effectual agricultural marketing system; providing advisory services relating to trusts to the Minister and by providing development programmes that will link smallholder farmers to markets. NCERA FARMS (PTY) LTD Mandate and goals Ncera Farms (Pty) Ltd is a public company listed in schedule 3B of the Public Finance Management Act, 1999 (Act No. 1 of 1999), with the DAFF a sole shareholder. The mandate granted by the shareholders of the entity is to provide exten sion, mechanical services, and training and agricultural support services to the farmers settled on Ncera farmland, as well as the neighbouring communities. The goals of the entity are to be a dynamic agricultural organisation, which focuses on livestock and crop production, with the view of supporting local farmers, communities and developing partnerships with other stakeholders/entities and institutions. Over the medium term Ncera will provide computer and agriculture training to 75 students. The farm workshop will continue to provide mechanical services for the farm and surrounding communities as well as training in mechanical and preventative maintenance. The department is assessing the viability of Ncera Farms and shall finalise this assess ment in the first half of 2013/14. ONDERSTEPOORT BIOLOGICAL PRODUCTS LTD Mandate and goals Onderstepoort Biological Products (OBP) Limited was established by the Onderstepoort Biological Products Incorpora tion Act, 1999 (Act No. 19 of 1999). The company’s mandate is to prevent and control animal diseases that impact on food security, human health and livelihoods. Over the medium term the company will build a new good manufacturing practice (GMP) facility and increase production of and introduce new viral and bacterial vaccines, improve manufacturing efficiency, reduce the production input costs and ensure that vaccines remain affordable in the market. For OBP to continue being a competitive player in the market and to deliver on its mandate, the company will invest in new product development to meet new market needs, new and emerging diseases and safer and affordable vaccines. OBP will invest in process development capacity as a value-add in the critical path of taking new products to markets (commercialisation) and strategic partnerships to leverage research, development, funding capacities within the national systems of innovation. PERISHABLE PRODUCTS EXPORT CONTROL BOARD Mandate and goals The Perishable Products Export Control Board is mandated by the DAFF in terms of two acts: the Perishable Products Export Control Act, 1983 (Act No. 9 of 1983), which requires the board to ensure the orderly export of perishable agri cultural products and monitor the proper maintenance of a continuous cold chain for exports; and the Agricultural Product Standards Act, 1990 (Act No. 119 of 1990), which requires the board to monitor minimum quality standards of perishable products for export. The goals over the medium term are: enhancing the credibility of the South African Export Certificate; supporting of export competitiveness of South Africa’s perishable product industries; strengthening the board’s capacity as a credible DAFF Strategic Plan 2013/14–2017/18 52 source of information; supporting government in ensuring confidence in quality assurance and food safety systems for local perishable product markets; supporting government in developing systems to ensure compliance with South African food safety and quality standards for imported perishable products. Baseline activities emerging from the above goals have already been initiated, including the approval of the employ ment equity strategy with specific targets, supported by a training programme; the harmonisation programme for prod uct quality inspections; creating standing committees between the DAFF and the board to deal with particular technical issues affecting statutory functions of the board and establishing a viable training academy aimed at assisting all stakeholders in the perishable products export industry. The board will, over the MTEF focus on developing new and improved handling conditions for perishable products, improved processes and services that will ensure a competitive advantage of South African perishable products in export markets. RESOURCE ALLOCATION OF PUBLIC ENITITIES Comprehensive coverage of the following public entities is provided with the more detailed information for the vote at www.treasury.gov.za under the budget information link: • The National Agricultural Marketing Council was established in terms of the Marketing of Agricultural Products Act (1996) to provide strategic agricultural marketing advice to the Minister of Agriculture, Forestry and Fisheries. The council’s total budget for 2013/14 is R34,6 million. • Ncera Farms is a schedule 3B company in terms of the Public Finance Management Act (1999). The company has a mandate to perform development functions on identified land administered by the DAFF. The company’s total budget for 2013/14 is R3,4 million. • Onderstepoort Biological Products is a state-owned company whose mandate is to prevent and control animal diseases that impact on food security, human health and livelihoods. The company’s total budget for 2013/14 is R159,3 million. • The Perishable Products Export Control Board is an official certification agency operating on behalf of govern ment to control all perishable export products. The board’s total budget for 2013/14 is R210,3 million. AnnexuresAnnexures DAFF Strategic Plan 2013/14–2017/18 54 Programme 1: AdministrationProgramme 1: Administration PURPOSE Provide strategic leadership, management and support services to the department. The aim of the programme is to lead, support and promote agricultural, forestry and fisheries resources management through policies, strategies and programmes to enhance sustainable use and to achieve economic growth, job creation, food security, rural develop ment and transformation. The programme comprises the Ministry, Office of the Director-General, Chief Financial Office, Internal Audit, Corporate Services, Stakeholder Relations and Legal Services, Policy, Planning, Monitoring and Evaluation and Office Accom modation. PROGRAMME DELIVERABLES OVER MTEF Key outcome 12: An efficient, effective and development oriented public service and empowered, fair and inclusive citizenship Strategic goal 6: Effective and efficient governance Strategic objective 2: Strengthen policy, planning, monitoring, evaluation, reporting and sector information Indicator Audited/actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Programme/ project decision support management system implemented – Continuous programme planning support Programme planning and development support Develop (design) a programme/ project deci sion support management system Institutiona lisation of the design programme/ project deci sion support management system Institutiona lisation and implemen tation of the design programme/ project deci sion support management system Monitor and evalu ate DAFF’s programme/ project deci sion support management system Policy analysis framework implemented – Current policy development framework (review exist ing policies) Review existing policies Update and align policies Update and align policies Update and align policies Update and align policies R&D Programme approved – National Sectoral R&D Agenda Implement targeted R&D Pro gramme Monitor, coordinate and report on targeted R&D Pro gramme Monitor, coordinate and report on targeted R&D Pro gramme Monitor, coordinate and report on targeted R&D Pro gramme Monitor, coordinate and report on targeted R&D Pro gramme Strategic objective 3: Provide effective audit, investigative and legal, human resources and financial risk management Integrated Human Resources Management Plan submitted to DPSA Human Resources Plan submitted to DPSA after due date Human Resources Plan submitted to DPSA after due date Human Resources Plan submitted to DPSA after due date Adjusted Human Resources Plan approved and submitted to DPSA by 30 June Adjusted Human Resources Plan approved and submitted to DPSA by 30 June Adjusted Human Resources Plan approved and submitted to DPSA by 30 June Adjusted Human Resources Plan approved and submitted to DPSA by 30 June ANNEXURE 1 ANNEXURE 1: Annual performance plans 55 Strategic goal 6: Effective and efficient governance (cont.) Strategic objective 3: Provide effective audit, investigative and legal, human resources and financial risk management (cont.) Indicator Audited/actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Human re source plan implementa tion report submitted to DPSA (Sep tember 2013 and March 2014) Human re source plan implementa tion report submitted to DPSA (Sep tember 2014 and March 2015) Human re source plan implementa tion report submitted to DPSA (Sep tember 2015 and March 2016) Human re source plan implementa tion report submitted to DPSA (Sep tember 2016 and March 2017) Improved financial management controls Unqualified audit report on financial statements Unqualified audit report on financial statements Unqualified audit report on financial statements Unqualified audit report on financial statements Unqualified audit report on financial statements Unqualified audit report on financial statements Unqualified audit report on financial statements Strategic objective 4: Improve departmental service excellence through implementation of quality standards, Batho Pele principles and the general legislative mandate Legislation review project completed – – Initiate legis lation review project and submit proj ect proposal to DEXCO/ departmental committee 24 Acts reviewed Remainder of the Acts reviewed – – Strategic objective 5: Provide leadership and manage communication and information DAFF Com munication Strategy implemented – Refine and oversee the implementa tion of the DAFF Com munication Strategy Refine and oversee the implementa tion of the DAFF Com munication Strategy Refine and oversee the implementa tion of the DAFF Com munication Strategy Develop and review the Communica tion Strategy in line with new the priorities of government Refine and oversee the implementa tion of the DAFF Com munication Strategy Refine and oversee the implementa tion of the DAFF Com munication Strategy MSP implemented – Approved MSP by DEXCO (integrate and review MSP) Approved MSP by DEXCO (integrate and review MSP) ICT imple mentation plan of prio rity projects of the MSP approved Implementa tion of prio rity technology projects (technology architecture) specified by the MSP Implementa tion of prio rity technol ogy projects specified by the MSP Implementa tion of prio rity technol ogy projects specified by the MSP KIM Strategy implemented – Draft KIM Strategy (implement phase 1 of KIM Strategy) KIM Strategy approved Review and implement phase 1 of KIM Strategy Implement stage 1 of the EDMS (testing and rollout of Change Management Plan) Monitor EDMS imple mentation Evaluate implemen tation and applicability of the DAFF EDMS Mainte nance and upgrades of EDMS DAFF Strategic Plan 2013/14–2017/18 56 Quarterly targets for programme performance indicators identified for 2013/14 DIRECTORATE: INFORMATION AND COMMUNICATION TECHNOLOGY Strategic goal 6: Effective and efficient governance Strategic objective 5: Provide leadership and manage communication and information Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 MSP implemented 52% of directorate facilitated for development of MSP SITA has surveyed the other 48% of DAFF and provided final workshopped MSP ICT implementation plan of priority projects of the MSP approved Secure DEXCO approval for MSP Phase 1 and 2 (Business arti culation report and Current ICT assessment report) ICT strategy context document (phase 3) developed and approved by CD ICT strategy plan (phase 4) developed and approved by DDG: Corporate services ICT strategy management framework (phase 5) developed and approved by DEXCO Programme plan developed for prioritised projects and approved by CD Procurement plan developed and approved DITC/Oversight DIRECTORATE: KNOWLEDGE AND INFORMATION MANAGEMENT Strategic goal 6: Effective and efficient governance Strategic objective 5: Provide leadership and manage communication and information Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 KIM Strategy implemented Review and implement phase 1 of KIM Strategy Implement stage 1 of the EDMS (testing and rollout of Change Management Plan) EDMS software options testing phase Implement Change Management Plan Roll out awareness campaign Tender for suitable EDMS product (SITA process) DIRECTORATE: HUMAN RESOURCES MANAGEMENT Strategic goal 6: Effective and efficient governance Strategic objective 3: Provide effective audit, investigative and legal, human resources and financial risk management Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Integrated Human Resource Management Plan submitted to DPSA and implemented 11% vacancy rate Vacancy rate reduced to 11% Identify units with a high vacancy rate and advise Approved jobs evaluated Improve turn around times on verification processes Identify units with a high vacancy rate and advise Approved jobs evaluated Improve turn around times on verification processes Identify units with a high vacancy rate and advise Approved jobs evaluated Improve turn around times on verification processes Identify units with a high vacancy rate and advise Approved jobs evaluated Improve turn around times on verification processes ANNEXURE 1: Annual performance plans 57 DIRECTORATE: EMPLOYEE DEVELOPMENT AND PERFORMANCE MANAGEMENT Strategic goal 6: Effective and efficient governance Strategic objective 3: Provide effective audit, investigative and legal, human resources and financial risk management Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Integrated Human Resources Management Plan submitted to DPSA and implemented 60% of HRD Strategy implemented (5 main areas of skills requirements) HRD Strategy implementation plan approved by DG Work Place Skills Plan developed Develop and approved training report submitted to PSETA, HRD Strategy and M&E report sub mitted to DPSA Approved training report submitted to PSETA Approved training report submitted to PSETA 80% adherence to Performance Management and Development System 100% adherence to PMDS 100% submission of performance agreements 100% sub mission of moderated annual assess ment reports monitored Analysis report on alignment of performance agreement to APP 100% submission of mid-term performance review reports Adherence gap analysed and reported DIRECTORATE: EMPLOYEE RELATIONS Strategic goal 6: Effective and efficient governance Strategic objective 3: Provide effective audit, investigative and legal, human resources and financial risk management Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Integrated Human Resource Management Plan submitted to DPSA and implemented Disciplinary code and procedures; Code of conduct and grievance procedure Conduct management interventions implemented in 4 regions Number of regions in which conduct management interventions have been implemented Conduct management intervention implemented at Mpumalanga Region Conduct management intervention implemented at KZN Region Conduct management intervention implemented at Limpopo Region Conduct management intervention implemented at EC Region Human Resource Management Plan (HRMP) submitted to DPSA after due date Adjusted HRMP approved and submitted to DPSA by 30 June Review the Strategic HRP Submission to the DPSA via the DG and the Minister Communicate the approved plan to DEXCO Monitoring and evaluation of the approved plan Monitoring and evaluation of the approved plan Monitoring and evaluation of the approved plan HR report submitted to DPSA HRMP implementa tion report submitted to DPSA (September 2013 and March 2014) – – Submit the 6 months implementation report to DPSA Submit the annual implementation report to DPSA DAFF Strategic Plan 2013/14–2017/18 58 DIRECTORATE: FINANCIAL ACCOUNTING Strategic goal 6: Effective and efficient governance Strategic objective 3: Provide effective audit, investigative and legal, human resources, financial management and risk management Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Improved financial management controls 2011/12 Unqualified audit report Unqualified audit report on financial statements Submit unaudited annual financial statement to National Treasury (NT) and Auditor General (AG) by 31 May 2013 Submit audited annual financial statement to NT and AG by 31 July 2013 Submit annual report to NT by 31 August 2013 Submit Q1 Interim Financial Statement (IFS) to NT by 31 July 2013 Submit the audit matrix to NT by 30 September 2013 to NT and AG Submit mid year IFS to NT by 31 October 2013 Submit Q3 IFS to NT by 31 January 2014 DIRECTORATE: LEGAL SERVICES Strategic goal 6: Effective and efficient governance Strategic objective 4: Improve departmental service excellence through implementation of quality standards, Batho Pele principles and the general legislative mandate Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Legislation review project completed Initiate legislation review project and submit project proposal to DEXCO/ departmental committee 24 Acts reviewed Advertisement of 9 bills for public com ment and public consul tations with stakeholders on legislations NEDLAC and government cluster process followed and 11 bills forwarded to SLA for pre certification Submit 7 bills to the relevant unit for submission to the Minister and Cabinet approval NEDLAC and government cluster process followed and 5 bill forwarded to SLA for pre certification Submit 9 bills to the relevant unit for submission to the Minister and Cabinet approval Parliamentary process managed by line functions Legal Services offers support to the department when presenting the Bill Parliamentary process managed by line functions Legal Services offers support to the department when presenting the Bill ANNEXURE 1: Annual performance plans 59 DIRECTORATE: COMMUNICATION SERVICES Strategic goal 6: Effective and efficient governance Strategic objective 5: Provide leadership and manage communication and information Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 DAFF Communication Strategy implemented Refined and implemented the DAFF Communication Strategy Refine and oversee the implementation of the DAFF Communication Strategy Media plans for National Assembly and National Council of Provinces budget votes implemented Media plans for Female Entrepreneur and Arbor Week implemented Media plans for World Food Day, Heritage Day and Human Rights Awareness Campaign implemented Media plans for ad hoc campaigns implemented DIRECTORATE: PROGRAMME DEVELOPMENT SUPPORT Strategic goal 6: Effective and efficient governance Strategic objective 2: Strengthen policy, planning, monitoring, evaluation, reporting and sector information Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Programme/ project decision support management system implemented Programme planning and development support Develop (design) a programme/ project decision support management system Programme/ project decision support management system approved by DEXCO Implement programme/ project decision support management system Implement programme/ project decision support management system Implement programme/ project decision support management system DIRECTORATE: POLICY RESEARCH SUPPORT Strategic goal 6: Effective and efficient governance Strategic objective 2: Strengthen policy, planning, monitoring, evaluation, reporting and sector information Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Policy analysis framework implemented Review existing policies Review status of internal policies and procedures Status report on internal policies and procedures Review the status of sectoral policies Status report on sectoral policies Updating and analysing policy framework R&D Programme approved Implement targeted R&D Programme Develop and finalise the targeted R&D Programme with service providers Monitor the implementation of the targeted R&D Programme Monitor the implementation of the targeted R&D Programme Report on the targeted R&D Programme Implement targeted R&D Programme DAFF Strategic Plan 2013/14–2017/18 60 Programme 2: Agricultural Production, Health and Food SafetyProgramme 2: Agricultural Production, Health and Food Safety PURPOSE Manage the risks associated with animal diseases, plant pests, genetically modified organisms and the registration of products used in agriculture. Promote food safety and create an enabling environment for increased and sustainable agricultural production. The programme comprises three subprogrammes, namely, Plant Production and Health; Animal Production and Health; and Inspection and Quarantine Services. STRATEGIC INTERVENTION • Implement plant and animal production policies and strategies to increase production • Improve risk management systems to support production and enable safe and fair trade PROGRAMME DELIVERABLES OVER MTEF Key outcome 7: Vibrant and equitable sustainable rural communities contributing towards food security for all Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 1: Promote efficient production, handling and processing of food, fibre and timber Indicator Audited/actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Number of producers benefiting from animal improve ment schemes Animal production scheme (9 animal schemes implemented and monitored) 1 300 1 300 1 300 1 300 1 300 Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure protection of indigenous genetic resources Number of indigenous agricultural genetic resources conserved – Zulu sheep characterised in the Zululand Municipality Ex situ conserved Afrikaner cattle material in North West Province (Dr Ruth Segomotse Mompati) On-farm conservation projects established in Mpumalanga (plant) 2 animal species conserved (Afrikaner cattle—FS and Zulu sheep— KZN) 5 landrace crops repatriated in Mpumalanga Conserve 3 animal species (Namaqua sheep—NC, indigenous chickens— EC, indigenous goats—NC) 5 landrace crops repatriated in Mpumalanga 3 animal species conserved (chickens— WC, pigs— MP and goats—FS) 5 landrace crops repatriated in the North West Conserve 3 species of animals (Pedi sheep— LIMP, indigenous chickens— FS, Pedi and Tswana cattle LIMP and NW) 5 landrace crops repatriated in the North West Strategic goal 3: Effective national regulatory services and risk management systems Strategic objective 2: Establish and maintain effective early-warning and mitigation systems Planned surveillance conducted – 6 (regulatory and technical support) 2 2 2 2 4 ANNEXURE 1: Annual performance plans 61 Strategic goal 3: Effective national regulatory services and risk management systems (cont.) Strategic objective 2: Establish and maintain effective early-warning and mitigation systems (cont.) Indicator Audited/actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Planned surveillance conducted (cont.) – Regulatory support: phyto sanitary measures, early-warning systems, legislative compliance Technical sup port: norms, standards and guidelines 1 1 1 1 1 Strategic objective 1: Manage the level of risks associated with food, diseases, pests, natural disasters and trade Number of regulatory compliance and monitoring inter ventions imple mented Q1–Q4 reports on regula tory compli ance and monitoring interven tions were compiled 4 reports 4 reports 4 inter ventions (quarantine, inspections, surveillance and testing) 4 inter ventions (quarantine, inspections, surveillance and testing) 4 inter ventions (quarantine, inspections, surveillance and testing) 4 inter ventions (quarantine, inspections, surveillance and testing) Quarterly targets for programme performance indicators identified for 2013/14 DIRECTORATE: ANIMAL PRODUCTION Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 1: Promote efficient production, handling and processing of food, fibre and timber Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of producers benefiting from animal improvement schemes 1 300 1 300 (Kaonafatso ya Dikgomo— 1 200; pig improvement schemes—100) 325 325 325 325 DIRECTORATE: GENETIC RESOURCES Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure protection of indigenous genetic resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of indigenous agricultural genetic resources conserved Zulu sheep charac terised in the Zulu land Municipality 2 animal species conserved (Afrikaner cattle—NW and Zulu sheep— KZN) Consult ARC, Breeders’ Society and the universities Select farmers, nucleolus flocks and herds of animals that will be conserved Execution of the In Situ Conservation Programme (AI/ natural service) In situ Zuluu sheep breed conserved in KZN (100 Zulu sheep progenies born) DAFF Strategic Plan 2013/14–2017/18 62 Strategic goal 2: Sustained management of natural resources (cont.) Strategic objective 1: Ensure protection of indigenous genetic resources (cont.) Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of indigenous agricultural genetic resources con served (cont.) Ex situ conserved u Afrikaner cattle material in North West Province (Dr Ruth Segomotse Mompati) In situ conserved Afrikaner cattle breed in the North West Province (50 Afrikaner cows pregnant) On-farm conservation of Plant Genetic Resources implemented in Mpumalanga 5 landrace crops repatriated in Mpumalanga Initiate project with provincial department Site visits to identify farmers and crops Repatriate landrace crops Monitor project progress DIRECTORATE: ANIMAL HEALTH Strategic goal 3: Effective national regulatory services and risk management systems Strategic objective 2: Establish and maintain effective early-warning and mitigation systems Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Planned surveillance conducted 6 (regulatory support: disease control) 2 Plan animal disease surveillance programmes as required Coordinate surveillance actions Collate and analyse surveillance information Compile surveillance reports Plan animal disease surveillance programmes as required Coordinate surveillance actions Collate and analyse surveillance information Compile surveillance reports Plan animal disease surveillance programmes as required Coordinate surveillance actions Collate and analyse surveillance information Compile surveillance reports Plan animal disease surveillance programmes as required Coordinate surveillance actions Collate and analyse surveillance information Compile surveillance reports DIRECTORATE: PLANT HEALTH Strategic goal 3: Effective national regulatory services and risk management systems Strategic objective 2: Establish and maintain effective early-warning and mitigation systems Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Planned surveillance conducted 2 (regulatory sup port: phyto sanitary measures, early warning systems, legislative compli ance) 1 surveillance Document and analyse surveillance results Document and analyse surveillance results; finalise first report Document and analyse surveillance results Document and analyse surveillance results and finalise second report DIRECTORATE: GENETIC RESOURCES (cont.) ANNEXURE 1: Annual performance plans 63 DIRECTORATE: INSPECTION SERVICES Strategic goal 3: Effective national regulatory services and risk management systems Strategic objective 1: Manage the level of risks associated with food, diseases, pests, natural disasters and trade Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of regulatory compliance and monitoring interventions implemented 4 4 interventions (quarantine, inspections, surveillance and testing) Conduct inspections, surveys, investigations, take appropriate action and compile report Conduct inspections, surveys, investigations, take appropriate action and compile report Conduct inspections, surveys, investigations, take appropriate action and compile report Conduct inspections, surveys, investigations, take appropriate action and compile report DAFF Strategic Plan 2013/14–2017/18 64 Programme 3: Food Security and Agrarian ReformProgramme 3: Food Security and Agrarian Reform PURPOSE The programme facilitates and promotes household food security and agrarian reform programmes and initiatives target ing subsistence and smallholder producers. It comprises three subprogrammes, namely, Food Security, Sector Capacity Development and Extension Support Services. STRATEGIC INTERVENTION • Coordinate the production of food to ensure food security • Coordinate the support and involvement of smallholder producers within the sector PROGRAMME DELIVERABLES OVER MTEF Key outcome 7: Vibrant and equitable sustainable rural communities contributing towards food security for all Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiatives Indicator Audited/actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Number of subsistence farmers supported 75 207 212 467 121 000 130 000 140 000 145 000 150 000 Number of smallholder producers supported – 21 192 identified for support and 10 298 supported 21 000 supported 16 000 16 500 18 000 20 000 Number of infrastructure anchor projects established – – – 2 (Taung and Makhathini irrigation infrastructure projects) 4 5 7 Strategic goal 4: A transformed and united sector Strategic objective 4: Provide leadership and support to research, training and extension in the sector Number of colleges of agriculture accredited by CHE – – 2012/13 baseline is 7 colleges of agriculture accredited (transformed into ATIs) 2 (Tsolo: OR Tambo District; Potchef stroom: Dr Kenneth Kaunda District) 2 1 – Quarterly targets for programme performance indicators identified for 2013/14 DIRECTORATE: SUBSISTENCE FARMING Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiatives Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of subsistence producers supported 121 000 130 000 20 000 35 000 35 000 40 000 ANNEXURE 1: Annual performance plans 65 DIRECTORATE: SMALLHOLDER DEVELOPMENT Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiatives Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of smallholder producers supported 21 000 supported 16 000 3 000 3 000 4 000 6 000 DIRECTORATE: INFRASTRUCTURE SUPPORT Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiatives Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of infrastructure anchor projects established – 2 (Taung and Makhathini irrigation infrastructure projects) Collecting existing planning criteria and compare to international best practices Conduct feasibility study Coordinate construction of anchor projects Finalise construction of anchor projects DIRECTORATE: SECTORAL COLLEGES Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiatives Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of colleges of agriculture accredited by CHE 6 2 (Tsolo: OR Tambo District; Potchefstroom: Dr Kenneth Kaunda District) Conduct needs analysis for Tsolo and Potchefstroom colleges Financially assist Tsolo College for the development of training programmes Financially assist Potchef stroom College for the develop ment of training programmes Accreditation certificates DAFF Strategic Plan 2013/14–2017/18 66 Programme 4: Economic Development, Trade and MarketingProgramme 4: Economic Development, Trade and Marketing PURPOSE Promote economic development, trade and market access for agriculture, forestry and fisheries (AFF) products and foster international relations for the sector. The programme comprises the following three subprogrammes, namely, International Relations and Trade; Marketing and Agro-processing; and Cooperatives and Rural Enterprise Develop ment. STRATEGIC INTERVENTION • Lead and monitor the promotion of economic development, trade and market access for agriculture, forestry and fisheries products; and the transformation of the sector • Development of commodity based investment plans PROGRAMME DELIVERABLES OVER MTEF Key outcome 7: Vibrant and equitable sustainable rural communities contributing towards food security for all Strategic goal 1: Increased profitable production of food, fibre and timbre products by all categories of producers Strategic objective 2: Coordinate government food security initiative Indicator Audited/actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Number of commodity based cooperatives established and supported 90 primary cooperatives 91 primary cooperatives 60 primary cooperatives 9 (one per province) 18 (two per province) 18 (two per province) 18 (two per province) Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 1: Increase growth, income and sustainable job opportunities in the value chain Marketing Strategy implemented – – Implementa tion of the Marketing Strategy facilitated Aquaculture value chain network institution alised Poultry value chain network institution alised Grain value chain network institution alised Horticulture value chain network institution alised Agro processing Strategy implemented – – Contribute to the imple mentation of intergovern mental agro processing programmes 2 agro processing enterprises supported 2 agro processing enterprises supported 2 agro processing enterprises supported 2 agro processing enterprises supported Strategic objective 3: Increase market access for South African agricultural, forestry and fisheries products, domestically and internationally Trade Development Strategy implemented – WTO commitment schedule Report on SADC/ EU/EPA negotiations Review of SACU/EFTA bilateral agreements Implementa tion of the Trade De velopment Strategy reviewed Participate in Tripartite Free Trade Area (FTA) negotiations Participate in Tripartite FTA negotiations Participate in Tripartite FTA negotiations Participate in Tripartite FTA negotiations ANNEXURE 1: Annual performance plans 67 Strategic goal 5: Increased contribution of the sector to economic growth and development (cont.) Strategic objective 3: Increase market access for South African agricultural, forestry and fisheries products, domestically and internationally (cont.) Indicator Audited/actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 International Relations Strategy implemented – SADC and AU engage ments International Relations Strategy implemented Implement the South South Co operation Agreement with empha sis on BRICS Implemen tation of CAADP Implemen tation of CAADP Implemen tation of CAADP Quarterly targets for programme performance indicators identified for 2013/14 DIRECTORATE: AGRO-PROCESSING SUPPORT Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 1: Increase growth, income and sustainable job opportunities in the value chain Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Agro processing Strategy implemented 4 agro processing subsector profiles completed 2 agro processing enterprises supported Undertake feasibility studies for two agro-processing projects Develop business cases Implementation and support through the AgriBEE Fund Implementation and support through the AgriBEE Fund DIRECTORATE: MARKETING Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 1: Increase growth, income and sustainable job opportunities in the value chain Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Marketing Strategy implemented Fisheries value chain network Aquaculture value chain roundtable/ network institutionalised Sittings of the network and its working groups; report on the outcomes of the network facilitated Sittings of the network and its working groups; report on the outcomes of the network facilitated Sittings of the network and its working groups; report on the outcomes of the network facilitated Report to departmental management/ Minister on outcomes of the network DIRECTORATE: COOPERATIVES AND ENTERPRISE DEVELOPMENT Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiative Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of commodity based cooperatives established to support smallholder producers 240 primary cooperatives 9 (one per province) 1 2 3 3 DAFF Strategic Plan 2013/14–2017/18 68 DIRECTORATE: INTERNATIONAL TRADE Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 1: Increase growth, income and sustainable job opportunities in the value chain Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Trade Development Strategy implemented Progress report on Tripartite FTA negotiations Participate in Tripartite FTA negotiations Negotiating mandate approved Progress report on negotiations Progress report on negotiations Progress report on negotiations DIRECTORATE: AMERICAS, AUSTRALASIA, EUROPE AND MIDDLE EAST RELATIONS Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 3: Increase market access for South African agricultural, forestry and fisheries products, domestically and internationally Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 International Relations Strategy implemented 5 international (Thailand, Indonesia, Saudi Arabia, India, Russia and France) agreements signed Implement the South-South Cooperation agreement with emphasis on BRICS Existing bilateral: China and India Existing multilateral: FAO World Forestry Congress, FAO Capacity Building New agreements: Vietnam, Russia, Argentina, Cuba Implementation of bilateral and multilateral engagements and new agreements facilitated (capacity building, market access and technical assistance) Implementation of bilateral and multilateral engagements and new agreements facilitated (capacity building, market access and technical assistance) Implementation of bilateral and multilateral engagements and new agreements facilitated (capacity building, market access and technical assistance) Implementation of bilateral and multilateral engagements and new agreements facilitated (capacity building, market access and technical assistance) ANNEXURE 1: Annual performance plans 69 DIRECTORATE : AFRICA RELATIONS Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 3: Increase market access for South African agricultural, forestry and fisheries products, domestically and internationally Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 International Relations Strategy implemented Signed agreements (Botswana, Mozambique, Swaziland, Zambia, Lesotho, Namibia, DRC, Tanzania, Congo Brazzaville, Burundi, Kenya, Sudan and Egypt) Draft MoUs: (Malawi, Egypt Ethiopia, Zimbabwe, Botswana, Mozambique, Senegal and Nigeria) Implementation of CAADP Alignment of MoUs to CAADP principles and alliance building facilitated Alignment of MoUs to CAADP principles and alliance building facilitated Alignment of MoUs to CAADP principles and alliance building facilitated Alignment of MoUs to CAADP principles and alliance building facilitated DAFF Strategic Plan 2013/14–2017/18 70 Programme 5: Forestry and Natural Resources ManagementProgramme 5: Forestry and Natural Resources Management PURPOSE To provide strategic direction and leadership to the department with regard to the promotion of the sustainable manage ment, use and protection of forests and natural resources to achieve social and economic benefits and to promote development. There are three subprogrammes in the Forestry and Natural Resource Management Programme, namely, Forestry Operations; Forestry Development and Regulation; and Natural Resources Management. STRATEGIC INTERVENTION • Refurbish and maintain smallholder government irrigation schemes • Develop, implement and monitor disaster risk reduction strategies, climate change adaptation and mitigation plans • Protect and rehabilitate indigenous forests, woodland and agricultural land • Ensure sustainable management of forestry and natural resources PROGRAMME DELIVERABLES OVER MTEF Key outcome 7: Vibrant and equitable sustainable rural communities contributing towards food security for all Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiative Indicator Audited/actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Number of small producers (growers) supported 2 898 small growers were reportedly supported 257 (2 500) 1 000 1 300 1 300 1 300 1 300 Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Increased number of hectares on irrigation schemes revitalised At Makhathini Irrigation Scheme, 150 ha have been revitalised and 115 ha refurbished at the Taung Irrigation Scheme 250 ha revitalised (0,5%) 250 ha 250 ha 500 ha 750 ha 1 000 ha Increased number of hectares (agricultural land, woodlands, indigenous forests and TUPs) rehabilitated 31 302 ha of land were rehabilitated 70% land degraded in SA (800 ha of indigenous forest under rehabilitation (800 000 ha) 11 868 ha 32 280 ha 37 280 ha 41 780 ha 46 780 ha ANNEXURE 1: Annual performance plans 71 Strategic goal 2: Sustained management of natural resources (cont.) Strategic objective 1: Ensure the sustainable management and efficient use of natural resources (cont.) Indicator Audited/actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Climate change (CC) Adaptation and Mitigation Plan implemented The draft CC Sector Plan has been developed • Draft CC Sector Plan • Atlas of CC and SA Agricultural Sector • GHG Inventory Report CC adaptation and mitigation plans approved Develop and submit CC adaptation and mitigation programmes for approval Monitor the implementa tion of the CC adapta tion and mitigation programmes Monitor the implementa tion of the CC adapta tion and mitigation programmes Review CC adaptation and mitigation plans Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 2: Increase the level of public and private investment for agricultural, forestry and fisheries products Charter undertakings implemented – – – DAFF plantation growth and SMME strategies implemented EIAs in KZN conducted Grant funding for forestry enterprise established 4 Category B plantations (Hlokozi, Katberg, Hebron and Rossbach) certified Quarterly targets for programme performance indicators identified for 2013/14 DIRECTORATE: KWAZULU-NATAL FORESTRY MANAGEMENT Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiatives Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of small producers (growers) supported 600 small growers 600 small growers 125 125 125 125 Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Increased number of hectares (agricultural land, woodlands, indigenous forests and TUPs) rehabilitated 600 ha 32 280 ha 600 ha (TUPs) 125 ha 125 ha 125 ha 125 ha DAFF Strategic Plan 2013/14–2017/18 72 DIRECTORATE: EASTERN CAPE FORESTRY MANAGEMENT Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiative Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of small producers (growers) supported 100 small growers 100 small growers 50 50 – – Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Increased number of hectares (agri cultural land, woodlands, indigenous forests and TUPs) rehabilitated 1 000 ha 32 280 ha 1 000 ha (TUPs) – – 500 ha 500 ha DIRECTORATE: LIMPOPO AND MPUMALANGA FORESTRY MANAGEMENT Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiative Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of small producers (growers) supported 200 small growers 200 small growers 50 50 50 50 Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Increased number of hectares (agri cultural land, woodlands, indigenous forests and TUPs) rehabilitated 56 ha 32 280 ha 80 ha (TUPs) – – 40 ha 40 ha DIRECTORATE: FORESTRY MANAGEMENT (OTHER REGIONS) Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producer Strategic objective 2: Coordinate government food security initiative Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of small producers (growers) supported 100 small growers 500 small growers 125 125 125 125 ANNEXURE 1: Annual performance plans 73 Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Increased number of hectares (agri cultural land, woodlands, indigenous forests and TUPs) rehabilitated 210 ha 32 280 ha 100 ha (TUPs) 25 ha 25 ha 25 ha 25 ha DIRECTORATE: LAND USE AND SOIL MANAGEMENT Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of hectares (agri cultural land, woodlands and indigenous forests) rehabilitated 30 000 ha 32 280 ha (30 000 ha agricultural land rehabilitated) 2 000 9 000 9 500 9 500 DIRECTORATE: WATER USE AND IRRIGATION DEVELOPMENT Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Increase the number of hectares on irrigation schemes revitalised Revitalised 250 ha of smallholder government irrigation schemes 250 ha 10 ha 50 ha 90 ha 100 ha DIRECTORATE: WOODLANDS AND INDIGENOUS FOREST MANAGEMENT Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of hectares (agri cultural land, woodlands and indigenous forests) rehabilitated 10 000 ha 30 000 ha 32 280 ha (500 ha woodlands rehabilitated) 125 125 125 125 DIRECTORATE: FORESTRY MANAGEMENT (OTHER REGIONS) (cont.) DAFF Strategic Plan 2013/14–2017/18 74 DIRECTORATE: CLIMATE CHANGE AND DISASTER MANAGEMENT Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 CC adaptation and mitigation plans implemented CC adaptation and mitigation plans approved Develop and submit CC adaptation and mitigation programmes for approval Collate project proposals for the implementation of the plans Appoint service providers for the approved projects Monitor and evaluate the following: • sensitivity of crop suitability in SA to climate change • mitigation and adaptation to climate variability and change (biogas production integrated crop livestock system) Develop and submit approved climate change programmes for approval DIRECTORATE: SMALL-SCALE FORESTRY Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Charter undertakings implemented Approved Forestry SMME Strategy DAFF plantation growth and SMME strategies implemented Appoint PSP First draft: guidelines and toolkits Consultation with regions Final draft approved by DDG DIRECTORATE: COMMERCIAL FORESTRY Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Charter undertakings implemented Approved Growth Strategy DAFF plantation growth and SMME strategies implemented Develop implementation plan in consultation with regions Training and mentoring of planners in the regions Field visits in priority areas Review progress on implementation plan ANNEXURE 1: Annual performance plans 75 Programme 6: Fisheries Management Programme 6: Fisheries Management PURPOSE Promote the management, monitoring and sustainable use of marine living resources and the development of South Africa’s fisheries sector. Sustainable livelihoods will be promoted through aquaculture growth and fisheries economic development. The programme comprises four subprogrammes, namely, Aquaculture and Economic Development; Fisheries Research and Development; Marine Resources Management; and Monitoring, Control and Surveillance. STRATEGIC INTERVENTION • Facilitate investment in production and support infrastructure for aquaculture and fisheries • Support the development of small-scale fisheries • Advance transformation of fisheries • Maintain the productivity of fish stocks and ecosystems; and rebuild depleted fish stocks PROGRAMME DELIVERABLES OVER MTEF Key outcome 7: Vibrant and equitable sustainable rural communities contributing towards food security for all Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiative Indicator Audited/Actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Number of fish farms supported 3 3 5 10 15 20 – Key outcome 10: Protect and enhance our environmental assets and natural resources Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Indicator Audited/Actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Depleted fish stocks rebuilt (abalone, hake, West Coast rock lobster and linefish) 4 sectors 4 sectors 4 sectors 4 sectors 4 sectors 4 sectors 4 sectors Enforcement and compliance efforts to combat poaching increased – – – Facilitate approval and implement ation of the Integrated Fisheries Security Strategy (IFSS) Facilitate partnerships with law enforcement agencies Develop marine data monitoring system – DAFF Strategic Plan 2013/14–2017/18 76 Key outcome 7: Vibrant and equitable sustainable rural communities contributing towards food security for all Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 1: Increase growth, income and sustainable job opportunities in the value chain Indicator Audited/Actual performance Estimated performance Medium-term targets 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Increased support to SMMEs within the sector – – Revised General Fishing Policy and 8 sector specific fishing policies; and establish rights allocation processes Allocate 70% of fishing rights in 8 sectors to SMMEs Allocate 70% of fishing rights in 9 sectors to SMMEs – – – – Small-scale Fisheries Implementa tion Plan developed – Allocate fish ing rights to communities in 10 inshore fishing sectors – – Quarterly targets for programme performance indicators identified for 2013/14 DIRECTORATE: AQUACULTURE TECHNICAL SERVICES Strategic goal 1: Increased profitable production of food, fibre and timber products by all categories of producers Strategic objective 2: Coordinate government food security initiative Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Number of fish farms supported 11 fish farms 10 fish farms Technical assessment of 5 business plans and compliance assessment conducted on 5 fish farms Technical support and advisory provided to 5 fish farms Technical assessment of 5 business plans and compliance assessment conducted on 5 fish farms Technical support and advisory provided to 5 fish farms DIRECTORATE: FISHERIES PROTECTION VESSELS Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Enforcement and compliance measures to combat poaching improved – IFSS implemented 160 sea-based inspections of vessels conducted in 4 priority fisheries 155 sea-based inspections of vessels conducted in 4 priority fisheries 115 sea-based inspections of vessels conducted in 4 priority fisheries 170 sea-based inspections of vessels conducted in 4 priority fisheries ANNEXURE 1: Annual performance plans 77 DIRECTORATE: MONITORING AND SURVEILLANCE Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Enforcement and compliance measures to combat poach ing improved – IFSS implemented 73 investig a tions conducted on rights holders in 4 key fisheries sectors 71 investiga tions conducted on rights holders in 4 key fisheries sectors 59 investiga tions conducted on rights holders in 4 key fisheries sectors 72 investiga tions conducted on rights holders in 4 key fisheries sectors DIRECTORATE: COMPLIANCE Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Enforcement and compliance measures to combat poach ing improved – IFSS implemented Conduct 157 inspections on vessel landings in 4 key fisheries sectors Conduct 168 inspections on vessel landings in 4 key fisheries sectors Conduct 205 inspections on vessel landings in 4 key fisheries sectors Conduct 270 inspections on vessel landings in 4 key fisheries sectors DIRECTORATE: INSHORE FISHERIES MANAGEMENT Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Depleted fish stocks rebuilt (abalone, West Coast rock lobster and linefish) – 3 sectors Formulate TAE recommenda tions for linefish Review permit conditions for linefish – Formulate TAC recommenda tions for abalone and West Coast rock lobster Review permit conditions for abalone and West Coast rock lobster Amend the recovery strategy Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 1: Increase growth, income and sustainable job opportunities in the value chain Increased support to SMMEs within the sector – Allocate 70% of fishing rights in 8 sectors to SMMEs Revise the general fishing policy and 8 sector specific fishing policies in the inshore and high seas fisheries sectors Establish the rights allocation process in the inshore and high seas fisheries sectors Allocate fishing rights in the inshore and high seas fisheries sectors Coordinate the appeals process in respect of fishing rights allocated in the inshore and high seas fisheries sectors DAFF Strategic Plan 2013/14–2017/18 78 DIRECTORATE: OFFSHORE FISHERIES MANAGEMENT Strategic goal 2: Sustained management of natural resources Strategic objective 1: Ensure the sustainable management and efficient use of natural resources Performance indicator Baseline Annual target 2013/14 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter 4 Depleted fish stocks rebuilt (hake) – 1 sector Reconciliation of allocations and landings Update the capacity management models Update the capacity management models Update the capacity management models Formulate management recommenda tion towards target set for recovery of hake stocks Hake TAC submission sent to the DDG for approval Formulate revised permit conditions Reconciliation of landings and allocations Update the capacity management models Strategic goal 5: Increased contribution of the sector to economic growth and development Strategic objective 5.1: Increase growth, income and sustainable job opportunities in the value chain Increased support to SMMEs within the sector Allocate 70% of fishing rights in 8 sectors to SMMEs Revise the General Fishing Policy and 8 sector specific fishing policies in the offshore and high seas fisheries sectors Establish the rights allocation process in the offshore and high seas fisheries sectors Allocate fishing rights in the offshore and high seas fisheries sectors Coordinate the appeals process in respect of fishing rights allocated in the offshore and high seas fisheries sectors ANNEXURE 2: Service Delivery Improvement Plan 79 INTRODUCTION The improvement of service delivery standards is a strategic imperative for government, especially in its drive to eradi cate poverty and meet the other millennium development goals (MDGs) to which it is committed. In response to the challenges of service delivery, government has introduced the concept of Batho Pele—People First—which is aimed at changing attitudes and the culture of public service from a “can’t do” to a “o can do and will do” mindset.oo The SDIP is a value addition to service delivery as it is an action plan that outlines details on how the Batho Pele con cept will be implemented. It is the “how” of Batho Pele. The SDIP will focus on bringing the Batho Pele principles to life, ww thereby making service delivery a reality for the citizens. In terms of the Public Service Regulations, 2001, Part III.C.1, an executing author ity must establish and sustain a ser vice delivery improvement plan (according to Batho Pele principles) for his or her department. The DPSA also requires that the SDIP should be planned, developed and implemented in accordance with the MTEF. Departments are ex pected to select and improve key services which have a direct impact on beneficiaries. Progress reporting must be done quarterly and annually to the DPSA. Over the MTEF 2012/13, DAFF has developed the SDIP in line with the Pub lic Service Regulations, 2001, Part III.C.1. DAFF identified the issuing of licences/certificates/permits as a focus area of improvement. The following licences were identified as key services: • Issuing of licences (for consumptive activities) to ensure sustainable forest management • Issuing of registration certificates/approvals for stock and agricultural remedies to ensure effective and safe products. The SDIP has clear targets outlined and these will be achieved within the current budget and further budget improve ments will be considered when the unit costing process for each service has been done. The department will report the progress in monitoring and evaluation on a quarterly basis and review the SDIP annually. BACKGROUND AND CHALLENGES Natural forests and woodlands form an important part of the environment and need to be conserved and developed according to the principles of sustainable management. Plantation forests play an important role in the economy. The National Forests Act, 1998 (Act No. 84 of 1998) allows the department to regulate the use of forests by issuing licences. There are three categories of licences, i.e. section 7 which regulates activities taking place in natural forests, section 15 which regulates cutting down of protected trees and section 23 which regulates activities in the state forest. The current challenges with the service is the time it takes to issue the licences because of incapacity to enforce the Act, inadequate technical assessment skills and difficulties in monitoring each licence. Key services Service beneficiary Current standard Desired standard 2011/12 2012/13 2013/14 2014/15 Issuing of licences (for consumptive activities) to ensure sus tainable forest manage ment Forest indus try, conserva tion agencies, municipalities, property develop ers, communities, telecommunica tion agencies, ESKOM, SANRAL, Trans net, landowners and individual members of the public Quantity 150 days to issue licence 120 days to issue licence 110 days to issue licence 90 days to issue licence ANNEXURE 2 DAFF Strategic Plan 2013/14–2017/18 80 Key services Service beneficiary Current standard Desired standard 2011/12 2012/13 2013/14 2014/15 Issuing of licences (for consumptive activities) to ensure sus tainable forest manage ment (cont.) Forest indus try, conserva tion agencies, municipalities, property develop ers, communities, telecommunica tion agencies, ESKOM, SANRAL, Trans net, landowners and individual members of the public (cont.) Quality Issue according to provisions of the National Forests Act, 1998 (Act No. 84 of 1998) Issue according to provisions of the National Forests Act, 1998 (Act No. 84 of 1998) Issue according to provisions of the National Forests Act, 1998 (Act No. 84 of 1998) Issue according to provisions of the National Forests Act, 1998 (Act No. 84 of 1998) Usage of correct forms and guidelines Usage of correct forms and guidelines Usage of correct forms and guidelines Usage of correct forms and guidelines Consultation Gazette for public inputs Publish information in newspapers and radio presentation Publish public notices on the website Meetings with stakeholders Telephone, e-mail, site inspections and verification through DAFF regional offices Maintain previous consultation mechanism Maintain previous consultation mechanism Access Client access forms from head office and regional offices, or through e-mail and fax Clients to access forms on DAFF website Electronic submission of application forms Maintain previous standard Maintain previous standard Maintain previous standard Courtesy Acknowledging applications within 10 days Acknowledging applications within 7 days Maintain previous standard Maintain previous standard Openness and trans parency Contact details of units respon sible for licence are available on the forms Availability of information (contact details) on the DAFF website Information (guidelines) available at regional offices and other departments (DEA website) Maintain standard Clients aware of appeal processes through licensing guidelines Maintain standard Maintain standard Record of decisions kept and communicated to applicant ANNEXURE 2: Service Delivery Improvement Plan 81 Key services Service beneficiary Current standard Desired standard 2011/12 2012/13 2013/14 2014/15 Issuing of licences (for consumptive activities) to ensure sus tainable forest manage ment (cont.) Forest industry, conservation agencies, municipalities, property developers, communities, telecommunica tion agencies, ESKOM, SANRAL, Transnet, landowners and individual members of the public (cont.) Information Application forms and licensing guidelines (list of protected trees, champion tree list, electronic version of the NFA) available on-line Web-based FORLATS used as licensing tool Awareness campaign on radio (national and local) Easy access of information on DAFF website Maintain standard Maintain standard Maintain standard Redress Appeal com mittee to deal with declined licences Regional head to attend to queries/com plaints (e-mail or telephone) Maintain standard Maintain standard Maintain standard Value for money Forest resources are sustainably managed for lasting benefit of society Forest resources are sustainably managed for lasting benefit of society Forest resources are sustainably managed for lasting benefit of society Forest resources are sustainably managed for lasting benefit of society Licences enable traders in timber (and non timber forest products) to trade and generate revenue/ income Licences enable traders in timber (and non timber forest products) to trade and generate revenue/ income Licences enable traders in timber (and non timber forest products) to trade and generate revenue/ income Licences enable traders in timber (and non timber forest products) to trade and generate revenue/ income Developers enabled to develop properties on licensed land and contribute towards the country’s economic growth while communities are able to derive their livelihoods from the forests Developers enabled to develop properties on licensed land and contribute towards the country’s economic growth while communities are able to derive their livelihoods from the forests Developers enabled to develop properties on licensed land and contribute towards the country’s economic growth while communities are able to derive their livelihoods from the forests Developers enabled to develop properties on licensed land and contribute towards the country’s economic growth while communities are able to derive their livelihoods from the forests DAFF Strategic Plan 2013/14–2017/18 82 Key services Service beneficiary Current standard Desired standard 2011/12 2012/13 2013/14 2014/15 Issuing of licences (for consumptive activities) to ensure sus tainable forest manage ment (cont.) Forest industry, conservation agencies, municipalities, property developers, communities, telecommunica tion agencies, ESKOM, SANRAL, Transnet, landowners and individual members of the public (cont.) Time 150 days to issue licence 120 days to issue licence 110 days to issue licence 90 days to issue licence Cost R3 million (salaries, S&T and promotional materials for awareness raising) R3,2 million (salaries, S&T and promotional materials for awareness raising) R3,3 million (salaries, S&T and promotional materials for awareness raising) R3,4 million (salaries, S&T and promotional materials for awareness raising) Human re sources 3 officials at national office (NO) and regional offices in all provinces (varied) 4 officials at NO and regional offices in all provinces (varied) 5 officials at NO and regional offices in all provinces (varied) 6 officials at NO and regional offices in all provinces (varied) BACKGROUND AND CHALLENGES In South Africa, before agrochemicals (agricultural and stock remedies) are imported, sold, used and advertised they have to be evaluated and registered by the DAFF through the Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act, 1947 (Act No. 36 of 1947). Currently there are delays in evaluating and finalising the registration of these products. A consultative forum was conducted with the industry and the outcome was the agreed turnaround standards. The outcome of the forum informed the improvement in this Service Delivery Improvement Plan. Key services Service beneficiary Current standard Desired standard 2011/12 2012/13 2013/14 2014/15 Issue registration cer tificates/ approvals for stock and agricultural remedies to ensure effective and safe products Agrochemicals industry Quantity Evaluated, processed and finalised 2 400 registration ap plications 80% of agricultural and stock remedy evaluations for registration within stated processing times (see Appendix A) 85% of agricultural and stock remedy evaluations for registration within stated processing times (see Appendix A) Maintain the previous standards Pilot a technical screening ‘com pleteness check’ of application system to re duce turnaround time (see Appendix A) Implement a technical screening ‘completeness check’ of applications system (see Appendix A) Quality Registration certificates issued in line with the governing legislation (Act No. 36 of 1947) and international standards Registration certificates issued in line with the governing legislation (Act No. 36 of 1947) and international standards Registration certificates issued in line with the governing legislation (Act No. 36 of 1947) and international standards Registration certificates issued in line with the governing legislation (Act No. 36 of 1947) and international standards Consultation Quarterly liai son meetings held with stake holders Maintain the standard Maintain the standard Maintain the standard ANNEXURE 2: Service Delivery Improvement Plan 83 Key services Service beneficiary Current standard Desired standard 2011/12 2012/13 2013/14 2014/15 Issue registration cer tificates/ approvals for stock and agricultural remedies to ensure effective and safe products (cont.) Agrochemicals industry (cont.) Consultation (cont.) Stakeholder’s inputs into the development of guidelines/ regulations through e-mails, telephones and letters Participate in multilateral meetings Gazette draft regulations/ polices for public comments Access Clients can request infor mation through DAFF website, telephone, e-mail and letters or visit the office (Registrar’s contact number is 012 319 7303) Maintain the previous standard Avail brochures and pamphlets online Maintain the previous standard Maintain the previous standard Investigate online application submission methods to improve consultation process Courtesy 80% of written correspond ence, including e-mail, acknowledged within 7 working days 80% of written correspond ence, including e-mail, acknowledged within 3 working days 90% of written correspond ence, including e-mail, acknowledged within 3 working days 100% of written correspond ence, including e-mail, acknowledged within 3 working days 80% of tele phone calls returned within 3 working days 80% of tele phone calls returned within 3 working days 90% of tele phone calls returned within 3 working days 90% of tele phone calls returned within 3 working days Registration applications acknowledged within 14 working days (see Appendix A) and inform client on turnaround time Maintain the previous standard Maintain the previous standard Openness and transpar ency Departmental annual performance report published Maintain the previous standards Maintain the previous standards Maintain the previous standards New or amend ments of exist ing regulations gazetted Develop a regulatory communication strategy Information Some operational documents (regulations, guidelines, application forms, etc.) are readily available in the national office 40% of the operational documents are published on the website 60% operational documents (regulations, guidelines, application forms, etc.) will be readily available in the national office and also published on DAFF website 80% operational documents (regulations, guidelines, application forms, etc.) will be readily available in the national office and also published on DAFF website 100% operational documents (regulations, guidelines, application forms, etc.) will be readily available in the national office and also published on DAFF website DAFF Strategic Plan 2013/14–2017/18 84 Key services Service beneficiary Current standard Desired standard 2011/12 2012/13 2013/14 2014/15 Issue registration cer tificates/ approvals for stock and agricultural remedies to ensure effective and safe products (cont.) Agrochemicals industry (cont.) Information (cont.) Participate in 3 stakeholder workshops Conduct/ participate in 4 stakeholder workshops Conduct/ participate in 5 stakeholder workshops Conduct/ participate in 6 stakeholder workshops Redress Stakeholder’s liaison meet ings are used as platforms to address complaints and enquiries There is an appeal process for unsatisfied clients Develop a regulatory communication strategy Pilot the strategy Implement the strategy Value for money Currently is unpredictable and it takes too long for products to be successfully registered, which impacts on the business of the client Reducing the turnaround time allows clients to register products within reasonable time and enables them to do business legally and efficiently Maintain the previous standards Maintain the previous standards (see Appendix A) Registration of stock and agri cultural remedies products will contribute to a sustainable, secure and healthy food supply Time Time-frame performance in place 80% of agricultural and stock remedy evaluations within stated processing times (see Appendix A) 85% of agricultural and stock remedy evaluations within stated processing times (see Appendix A) Maintain the previous time-frame performance Cost Expenditure • R13,3 million for salaries • R1,7 million operational costs Estimated expenditure • R22,8 million for salaries • R1,9 million operational costs Estimated expenditure • R240 million for salaries • R2,6 million operational costs Estimated expenditure • R25,4 million for salaries • R3,2 million operational costs Review of application fees for value for money Implement revised fees by 1 April 2013 Maintain the previous standards ANNEXURE 2: Service Delivery Improvement Plan 85 Key services Service beneficiary Current standard Desired standard 2011/12 2012/13 2013/14 2014/15 Issue registration cer tificates/ approvals for stock and agricultural remedies to ensure effective and safe products (cont.) Agrochemicals industry (cont.) Human re sources Staff numbers: 66 total employees (of which 25 officials provide technical and administrative functions) Use external technical advisors to speed up service delivery Sign MOUs and SLAs with external technical advisors (consultant and other government departments) and to speed up service delivery Recruit 6 more technical officials Recruit 4 more technical officials APPENDIX A: STANDARD TIME FRAMES AGREED TO BETWEEN THE DAFF AND THE INDUSTRY Type of application Acknowledgement (days) Technical screening (days) Target Applications containing new molecule 14 30 18 months Generic applications 14 30 12 months Label amendments 14 30 12 months Formulation change 14 30 6–12 months Additional source/manufacture 7 30 3 months (stock remedies) 6 months (agricultural remedies) Administrative applications 7 30 3 months Packaging 7 30 3 months Change of shelf life 7 14 3 months Import permits 7 7 1 month Advertisement 7 7 1 month ISBN: 978-1-86871-371-4