PERISHABLE PRODUCTSPERISHABLE PRODUCTS EXPORTEXPORT

CONTROL BOARD CONTROL BOARD (PPECB)(PPECB)

Presentation Presentation

to the to the

Portfolio CommitteePortfolio Committee

for for

Agriculture, Forestry & Fisheries Agriculture, Forestry & Fisheries

09 October 201209 October 2012

Annual Report

on

PPECB 2012

5 Divisions

1. Support Services

2. Statutory Operations

1. Human Resources

2. Finance

1. Value Added Services

           1. VESSELS TOTAL REASONS FOR REJECTIONS  

 No of vessels

surveyed108 Glass (some inbound vessels

carried motor vehicles), dirt, taint, faulty recording equipment, damaged cartons and pallets.

 

 No of preventions 11

 

  Percentage 10,10%           

           2. COLD STORES TOTAL REASONS FOR REJECTION  

 

No of cold stores inspected

452 Faulty temperature recording equipment, maintenance issues, damage panels, product at incorrect temp., damaged lights, water leakages, no pest control traps, gas forklifts without purifiers.

 

 no of preventions 24

 

 Percentage 5,30%

          

         

 3. CONTAINER

DEPOTS TOTALREASONS FOR

REJECTION  

 No of containers

inspected109 895

Taint, oxidation, damaged panels, wet containers

 

  no of rejections 11 347  

  Percentage 10,30%           

Ms Mnqeta

           5. RRMT’s TOTAL REASONS FOR REJECTION  

  No of RRMT’s inspected 391

Faulty recording equipment, faulty probes, damaged panels

 

 no of preventions 46

 

 Percentage 11,70%

          

         

  4. TERMINALS TOTAL REASONS FOR

REJECTION  

  No of containers monitored 107 402Incorrect settings, faulty alarms, no power supply (or not connected to power supply), containers found in general purpose stack and not reefer stacks

 

  no of preventions 993  

  Percentage 1,00%  

  No of terminals 8           

Savings: R 150 million +

Mr Makhaye

PPECB Board

PPECB EXCO

Employment Equity (2012) Employment Equity (2012)

Demographic Profile %Demographic Profile %

EE 2012 ActualEE 2012 ActualEE 2011 ActualEE 2011 Actual

Skills DevelopmentSkills Development

• Agriculturalist Export TechnologistAgriculturalist Export Technologist

Programme Programme o In partnership with DAFFo 2011= 35o 2012= 14

• Unemployed Graduate DevelopmentUnemployed Graduate Development

ProgrammeProgrammeo 2011= 33o 2012= 45

• Small Scale Farmers Development Small Scale Farmers Development

ProgrammeProgrammeo SAPIP 2o Kat River Valley Citrus Farmers

* 21 Black Small Scale Citrus Farmers in the Eastern Cape

* Partnership with the government and CGA

    Target F2012 F2011  

  BBBEE ElementAgriBEE Codes R'000 R'000  

             Total Procurement Spend   R 35 483 R 38 049             

  BBBEE procurement spend from all suppliers 50% 71% 77%        R 25 193 R 29 298             

 

BBBEE procurement spend from qualifying small enterprises (QSEs) or exempted micro-

enterprises (EMEs) 15% 64% 57%        R 22 709 R 21 688             

 

BBBEE procurement spend from black-owned suppliers 15% 26% 22%  

      R 9 226 R 8 371             

Preferential Procurement Preferential Procurement

Ensured that development initiatives took place in at

least 3 provinces

oTraining and development took place in all 9 provinces

oTypes of initiatives run were:

Private Certification Standards, Market Access,

Cold Chain, Product Quality, Grading, Food Safety, Good

Agricultural Practices, Responsible use of Pesticides,

Quality Control in the pack house

Trained 600 individuals across the various initiatives

oFor the period under review 1401 individuals were

trained across all development initiatives across all 9 nine

provinces

Enterprise Enterprise DevelopmentDevelopment

Mr Martin

Established a National Smallholder Farmer Working Group

o Training and development took place in all 9 provinceso A National Smallholder Farmer Working Group was

established through the SAPIP 2 initiative. A total of 3 meetings were held with representation from all 9 provinces

Enhanced the Technological Knowledge of Smallholder Farmers

o Collaboration with Provincial Departmentso 24 Technology Transfer days held across all 9 provinceso A total of 1569 participants

Enterprise DevelopmentEnterprise Development

Financial ResultsFinancial Results

Mr Schwiebus

Enterprise RisksEnterprise Risks

1. Delivering cost-effective services to the industry relative to derived benefits. Risk - The PPECB operates within a statutory mandate that is defined by

government. The current statutory inspection methodologies are human-intensive and do not necessarily entail risk.

2. Giving internal and external stakeholders access to accurate information. Risk - Inaccurate information delivery may lead to industries (customers)

making poor (marketing) decisions that may result in financial losses.

3. Executing strategic and operational plans and achieving organisational objectives with support from government and industry. Risk - The PPECB is a national public entity with government imperatives,

yet its funds and customers are from the private sector. Therefore, the PPECB’s customer base may have misaligned expectations.

Enterprise Risks (continued)Enterprise Risks (continued)

4. Objective - Ensuring that external stakeholders understand and support the role and value of the PPECB in the export industry. Risk - Miscommunication of the PPECB’s role to its stakeholders

and their consequent misunderstanding of it may lead to reputational damage of the organisation.

5. Making available sufficient human resource capacity and skills to effectively execute the PPECB’s mandate. Risk - Losing valuable institutional knowledge and skills due to

inadequate upskilling of a dynamic workforce, and being dependent on a large percentage of seasonal workers due to unavoidable, seasonal peaks.

Financial HighlightsFinancial Highlights

Income R186 million, up by 4,8% on budget

Expenditure R202 million, up by 10% on budget

Debtors’ collection 36 days against a target of 59 days

Bad debt as % of income 0,3%

Preferential Procurement 71% in value from BEE scored entities

Fruitless & wasteful expenditure R80k

Irregular expenditure R80k

Unauthorized expenditure R 0

External Audit Report Unqualified

Financial PerformanceFinancial Performance

This Year

R’000

Budget

R’000

Prior Year

R’000

Income R179 254 R171 369 R168 028

Interest received R6 835 R6 273 R5 771

Expenses R202 405 R183 657 R161 483

Net result (R16 315) (R6 014) R12 316

Financial PerformanceFinancial Performance

Performance % change

Net Result Variance AnalysisNet Result Variance Analysis

Budget Net Result 2012 (R 6,014)

IncomeVolume variance R 8,447

Expenditure Variance  Personnel (R12,070)Operating expenses (R3,019)Administration expenses (R1,953)Office rental (R 2,255)Other R 550

Actual Shortfall (R16,315)

Total ExpenditureTotal Expenditure

%This year

R’000

Budget

R’000

Prior year

R’000Ind Bud

Ind PYr

Personnel expenses 68% R137 703 R125 632 R113 219 110% 122%

Activity cost 15% R30 623 R27 603 R22 909 111% 134%

Computer expenses 3% R5 227 R4 373 R5 436 120% 96%

Rental & maintenance 4% R8 424 R6 169 R4 248 137% 198%

Training 2% R4 613 R4 295 R3 273 107% 141%

Corporate identity 1% R2 092 R3 180 R1 915 66% 109%

Depreciation 1% R1 685 R2 332 R2 192 72% 77%

Administrative expenses 6% R12 014 R10 061 R8 290 119% 145%

Finance cost 0% R24 R12 R27 200% 89%

Total expenditure 100% R202 406 R183 657 R161 509 110% 125%

Income & ExpenditureIncome & Expenditure

Income Expenses

Financial PositionFinancial Position

This year

R’000

Prior year

R’000

Reserves R93 489 R109 805

Non-current assets R15 966 R16 200

Receivables R20 811 R21 477

Investments held and cash R101 934 R118 318

Liabilities R45 221 R46 192

Financial PositionFinancial Position

Thank You