DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES2013/14 THIRD AND FOURTH QUARTER PERFORMANCE AND

EXPENDITURE REPORTS

PRESENTATION TO THE PORTFOLIO COMMITTEE ON AGRICULTURE,

FORESTRY AND FISHERIES

29 JULY 2014

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PRESENTATION OUTLINE

Vision and Strategic Goals of the Department of Agriculture, Forestry and Fisheries

Overview Achievements Non-achievements Performance by Programmes Financial Statements Actual Spending per Programme Actual Spending per Economic Classification 2013/14 Financial Year-end results

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VISION AND STRATEGIC GOALS OF DAFF VISION

A leading, dynamic, united, prosperous and people-centered sector.

STRATEGIC GOALS

Increased profitable production of food, fibre and timber products by all categories of producers (subsistence, smallholder and commercial).

Sustained management of natural resources. Effective national regulatory services and risk management systems. A transformed and united sector. Increased contribution of the sector to economic growth and development. Effective and efficient governance.

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OVERVIEW

The Department presents its Quarter 3 & 4 Organisation Performance Report for the 2013/14 financial year.

This presentation focuses attention on the departmental achievements for the last 2 quarters of 2013/14, and highlights the performance status of planned deliverables and challenges encountered.

DAFF contributes directly to three of the 12 Outcomes to achieve related outputs: 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 deliverables were guided by government's key policies, namely the National

Development Plan (NDP), New Growth Path (NGP), the Industrial Policy Action Plan (IPAP), the Comprehensive Rural Development Programme (CRDP) and the draft Integrated Growth and Development Plan (IGDP) for Agriculture, Forestry and Fisheries.

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OVERVIEW CONTINUED• The Portfolio Committee has been provided with detailed narrative reports for each

quarter.• This presentation contains a selection of achievements and non-achievements as well

as an overall summary for each quarter. • Quarterly targets are milestones towards the achievement of the annual target• in some instances it can be made-up in subsequent quarters (e.g. planning of rain-

fed crops) and in other instances it cannot (e.g., artificial insemination of indigenous genetic resources as the gestation period cannot be fast-tracked)

• The audit of the 2013/14 financial and non-financial information has been concluded:

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ACHIEVEMENTS Successive unqualified audit opinions on the annual financial statements indicating

commitment to good governance. Positive trade balance of Agriculture, Forestry and Fisheries (AFF) sector increased

from R3,1 billion in 2012 to R15,1 billion in 2013, with exports increasing by 26% and imports by 10%.

Trade agreements concluded with other emerging economies and trade into Africa has been accelerated, especially SADC region.

After losing its Foot and Mouth Disease (FMD) free status (with vaccination) in 2011, RSA regained an World Animal Health Organisation (OIE) recognised FMD free status without vaccination on 14 February 2014.

23 panel mobile animal clinics were delivered to EC, LP, MP, NW and GP in 2013, while 30 additional mobile clinics will be delivered in 2014.

Regulatory measures applied to identify Citrus Black Spot (CBS) orchards in order to ensure continued exports of citrus to the EU – market worth R3,7 billion and 80 000 jobs involved.

ACHIEVEMENTS cont… Although export of fresh ostrich meat to the European Union (EU) was banned in

2013 due to Avian Influenza, a protocol with additional biosafety measures was approved in February 2014.

Assisted emerging farmers adopt and apply new technology to increase productivity and profitability of their herds through Kaonafatso ya Dikgomo.

The Food and Nutrition Security Policy was approved by Cabinet in September 2013, followed by the launch of the Fetsa Tlala (eradicate hunger) initiative by the President in October 2013.

In terms of the integrated food production programme, about 148 888 ha of fallow agricultural land was placed under production of maize and beans.

A total of 268 tons of white maize was supplied by 60 smallholder producers to the World Food Programme during 2013, destined for Lesotho.

DAFF continued to provide targeted support programmes such as CASP and Ilima/Letsema in order to realise enhanced food production at national and household level.

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ACHIEVEMENTS cont…

Tsolo College in Eastern Cape is now fully accredited by Council for Higher Education (CHE), except for final approval of the para-veterinary programme.

Through its Female Entrepreneur of the Year Awards event, DAFF continued recognising and empowering women as contributors to food security and development.

Since the inception of the DAFF experiential training and internship programme in 2003, 1 988 qualified unemployed graduates have participated in the programme and 599 were able to secure permanent employment, of whom DAFF employed 192.

The Marine Living Resources Amendment Bill was approved by Parliament, to enable the Small-scale Fisheries Policy to be implemented to assist and support the small-scale fisheries sector.

The four vessels at sea at end of financial year (3 patrol and 1 research vessel). Fisheries Management Branch was able to make Total Allowable Catch (TAC) and Total

Allowable Effort (TAE) recommendations in all 22 commercial sectors. Long term fishing rights were allocated in eight sectors. The appeal process is

underway, while the allocation process is also being audited.

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NON-ACHIEVEMENTSOnly 92% of SMS Performance Agreements were finalised and submitted to the DPSA.Only 50% of SMS members submitted their mid-term assessments and 73% of level 1- 12 employees finalised and submitted their bi-annual assessments.Integrated Human Resources Management Plan not submitted timeously.Knowledge and Information Management (KIM) Strategy was not implemented but, fast tracking of change management plan is underway.The Programme/Project Decision Support Management System was not implemented (this is a tool which can support APAP and is necessary to Monitoring and &Evaluation)Legislation Review project not completed. Suspended on the advice of the Executive Authority until after the 2014 Elections.Conservation of a number of indigenous Agricultural Genetic Resources were not achieved (Zulu sheep and Africana cattle)Total of 36 678 subsistence producers were supported. Shortfall of 93 322 subsidence producers. Rely on Provinces for performance evidence which was inconsistent. National Department also failed in verifying the evidence against the information provided.

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NON-ACHIEVEMENTS continued

Agro-processing Strategy not implemented due to poor leadership in the Branch. Not all the activities relating to the International Relations Strategy were implemented. Only provided evidence of support to 36 Small growers instead of 125 in KZN. Only 25, 1 ha out of 40 were rehabilitated in Mpumalanga and Limpopo, while zero were

rehabilitated in North West. 9 500 ha of Agricultural land, Woodlands and indigenous forests were to be rehabilitated

in terms of DORA - actual ha not available. Only 62 ha were revitalised at Vaalharts irrigation scheme, while zero ha was revitalised

at Makhathini. However, the annual target for the All planned sea-based inspections of vessels in priority Fisheries Sectors , except one

(169 and not 170) conducted despite vessels being docked. Commissioned services of vessels management provided

Comprehensive Africa Agricultural Development Plan (CAADP): The Department only commenced the implementation in 2012. However, the consultation process was robust and the draft Compact was concluded by the end of the financial year

2013/14 QUARTER 3

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2013/14 QUARTER 4

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PROGRAMME 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 the sustainable use, and to achieve economic growth, job creation, food security, rural development and transformation.

Corporate Services: To render sound human resources management and development, security and information management.

Chief Financial Office: To provide the Department with sound financial services. Policy Planning, Monitoring and Evaluation: To direct the provision of policy

analysis, formulation, planning and monitoring and evaluation in order to facilitate the improvement of the Department’s performance.

Stakeholder Relations, Communication and Legal Services: To provide the Department with legal and communication services and promote intergovernmental and stakeholder relations.

HUMAN RESOURCES MANAGEMENT

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HUMAN RESOURCES MANAGEMENT cont…

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HUMAN RESOURCES MANAGEMENT cont…

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STAKEHOLDER RELATIONS, COMMUNICATION & LEGAL SERVICES

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STAKEHOLDER RELATIONS, COMMUNICATION & LEGAL SERVICES cont…

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PROGRAMME 2: AGRICULTURAL PRODUCTION, HEALTH AND FOOD SAFETY

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 sub-programmes, namely Plant Production and Health; Animal Production and Health; and Inspection and Laboratory 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 disease risk management principles, an informed extension service and sustainable natural resources management.

Inspection and Quarantine Services: Focuses on the provision of leadership, guidance and support in ensuring compliance with agricultural legislation and regulatory frameworks and overseeing the effective implementation of risk management strategies and plans for regulated agricultural products.

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ANIMAL PRODUCTION AND HEALTH

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ANIMAL PRODUCTION AND HEALTH cont…

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PLANT PRODUCTION AND HEALTH

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PLANT PRODUCTION AND HEALTH cont…

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INSPECTION AND QUARANTINE SERVICES

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PROGRAMME 3: FOOD SECURITY AND AGRARIAN REFORM

Purpose The programme facilitates and promotes food security and agrarian reform programmes and

initiatives. It comprises three sub-programmes, namely Food Security; Sector Capacity Development; and National Extension Support Services.

Food Security: The sub-programme provides national frameworks to promote sustainable household food security programmes through improving the production systems of subsistence and smallholder producers in the agriculture, forestry and fisheries sector to achieve food security livelihoods and facilitate the provision of inputs, implements and infrastructure support.

Sector Capacity: Facilitates the provision of agriculture, forestry and fisheries education and training in support of sustainable growth and equitable participation in the sector. This will be achieved by facilitating and supporting education and training skills, promoting the development of centres of excellence on skills training and development, manage and coordinate the sector transformation policy and strategy in line with the government objectives for the Department.

National Extension Support Services: Provides national extension policies, norms and standards on research and technology development. The sub-programme provides strategic leadership and guidance for the planning, coordination and implementation of extension and advisory services in the sector. It also provides leadership and strategic support in the implementation of norms and standards for extension.

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FOOD SECURITY

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FOOD SECURITY cont…

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FOOD SECURITY cont…

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SECTOR CAPACITY DEVELOPMENT

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PROGRAMME 4: ECONOMIC DEVELOPMENT, TRADE AND MARKETING

Purpose

Ensure value chain integration; facilitation of market access for agriculture, forestry and fisheries products in support of economic growth, job creation and development.

The programme comprises the following three sub-programmes, namely International Relations and Trade; Agro-processing and Marketing; and Cooperatives and Rural Enterprise Development.

International Relations and Trade: Facilitates, coordinates and supports international relations and international trade for the agriculture, forestry and fisheries sector through the development and implementation of appropriate policies and programmes.

Cooperatives and Rural Enterprise Development: Facilitates and supports the implementation of programmes and initiatives to ensure the promotion and participation of the agriculture, forestry and fisheries sector in the economic development of businesses.

Agro-processing and Marketing: Ensures the conversion/transformation of primary agriculture, forestry and fisheries products into value-added commodities and ensures domestic and international market access.

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AGRO-PROCESSING AND MARKETING

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AGRO-PROCESSING AND MARKETING cont…

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COOPERATIVES AND RURAL ENTERPRISE DEVELOPMENT

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INTERNATIONAL RELATIONS AND TRADE

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INTERNATIONAL RELATIONS AND TRADE cont…

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INTERNATIONAL RELATIONS AND TRADE cont…

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INTERNATIONAL RELATIONS AND TRADE cont…

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PROGRAMME 5: FORESTRY AND NATURAL RESOURCES MANAGEMENT

Purpose

Develop and facilitate the implementation of policies and targeted programmes to ensure management of forests, sustainable use and protection of land and water as well as managing agricultural risks and disasters.

There are three sub-programmes in the Forestry Programme, namely Forestry Operations; Forestry Development and Regulations; and Natural Resources Management.

Forestry Operations: Ensures sustainable management of forestry operations through managing state forests and woodlands, other state assets in the region and to render coordination and operational support.

Forestry Development and Regulations: Ensures effective development of policies for forestry regulation and oversight by promoting the optimum development of arboriculture, commercial and urban forestry 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 sub-programme facilitates climate change mitigation and adaptation, risk and disaster management as well as promotes, regulates and coordinates the sustainable use of natural resources (land and soil).

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FORESTRY OPERATIONS

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FORESTRY OPERATIONS cont…

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FORESTRY DEVELOPMENT AND REGULATIONS

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FORESTRY DEVELOPMENT AND REGULATIONS cont..

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NATURAL RESOURCES MANAGEMENT

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NATURAL RESOURCES MANAGEMENT cont…

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NATURAL RESOURCES MANAGEMENT CONT…

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PROGRAMME 6: FISHERIES MANAGEMENT

Purpose

Promote the development, management, monitoring and sustainable uses of marine living resources and the development of South Africa’s fisheries sectors. Sustainable livelihoods will be achieved through aquaculture growth and fisheries economic development.

The programme comprises four sub-programmes, namely Aquaculture and Economic Development; Fisheries Research and Development; Marine Resource Management; and Monitoring, Control and Surveillance.

Aquaculture and Economic Development: Ensures aquaculture growth and fisheries economic development for sustainable livelihoods by providing public support and an integrated platform for the 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 Resource Management: Ensures the sustainable utilization 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 the sustainable use of marine living resources by intensifying enforcement and compliance.

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AQUACULTURE AND ECONOMIC DEVELOPMENT

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AQUACULTURE AND ECONOMIC DEVELOPMENT cont...

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MONITORING, CONTROL AND SURVEILLANCE

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MONITORING, CONTROL AND SURVEILLANCE cont…

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MONITORING, CONTROL AND SURVEILLANCE cont…

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MARINE RESOURCE MANAGEMENT

MARINE RESOURCES MANAGEMENT cont…

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MARINE RESOURCES MANAGEMENT cont…

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EXPENDITURE QUARTER 3 & 4: PER PROGRAMME

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EXPENDITURE TRENDS

QUARTER 3 – 2013/14

EXPENDITURE QUARTER 3: PER PROGRAMME

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PROGRAMMES BUDGET OCT NOV DEC QUARTER 3 % R’000 R’000 R’000 R’000 R’000 SPENT

Administration 670 880 84 691 55 709 46 257 186 657 27.8

Agricultural Production,Health and Food Safety 2 036 519 342 259 120 418 116 635 579 312 28.4

Food Security andAgrarian Reform 1 599 316 448 983 33 300 21 475 503 758 31.5

Trade Promotion and Market Access 258 208 15 835 14 679 19 237 49 751 19.3

Forestry 1 183 623 92 957 66 922 75 638 235 517 19.9

Fisheries 433 736 77 810 16 644 14 777 109 231 25.2

TOTAL 6 182 282 1 062 535 307 672 294 019 1 664 226 26.9

EXPENDITURE QUARTER 3:PER ECONOMIC CLASSIFICATION

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ECONOMIC BUDGET OCT NOV DEC QUARTER 3 % CLASSIFICATION R’000 R’000 R’000 R’000 R’000 SPENT

Compensation ofemployees 1 586 556 128 457 143 537 126 344 398 338 25.1

Goods and services 782 934 90 240 66 400 50 253 206 893 26.4

Interest and rent on land 1 073 0 0 0 0 -

Total transfers and subsidies 3 639 745 828 676 86 184 102 788 1 017 648 28.0

Payments for capitalassets 171 974 15 145 11 550 14 634 41 329 24.0

Payments for financialassets 0 17 1 0 18 -TOTAL 6 182 282 1 062 535 307 672 294 019 1 664 226 26.9

Reasons for over/underspending against 25% targetProgramme 1• Payments in respect of property management from D:PWD were made.

Programme 2• Double payment to Agricultural Research Council and payments for conditional grants to provinces

for Ilima/Letsema were made.

Programme 3• Payments to provinces in respect of CASP conditional grant were made.

Programme 4• Claims in respect of foreign offices from D:IRCO are awaited.

Programme 5• Payment of CASP: Flood disaster funds to Northern Cape withheld in accordance with DORA

Programme 6• Payments to Marine Living Resources Fund were made.

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EXPENDITURE TRENDS

QUARTER 4 – 2013/14

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EXPENDITURE QUARTER 4: PER PROGRAMME

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PROGRAMMES BUDGET JAN FEB MARCH QUARTER 4 % R’000 R’000 R’000 R’000 R’000 SPENT

Administration 704 671 63 621 57 722 80 623 201 966 28.7

Agricultural Production,Health and Food Safety 2 010 320 202 759 41 786 84 825 329 370 16.4

Food Security andAgrarian Reform 1 604 592 278 042 32 465 40 599 351 106 21.9

Trade Promotion and Market Access 256 452 10 048 17 749 25 431 53 228 20.8

Forestry 1 168 579 342 440 70 908 88 302 501 650 42.9

Fisheries 437 668 73 899 14 062 20 306 108 267 24.7

TOTAL 6 182 282 970 809 234 692 340 086 1 545 587 25.0

EXPENDITURE QUARTER 4:PER ECONOMIC CLASSIFICATION

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ECONOMIC BUDGET JAN FEB MARCH QUARTER 4 % CLASSIFICATION R’000 R’000 R’000 R’000 R’000 SPENT

Compensation ofemployees 1 534 392 125 922 122 787 132 846 381 555 24.9

Goods and services 791 825 59 823 78 824 129 007 267 654 33.8

Interest and rent on land 353 0 0 272 272 77.1

Total transfers and subsidies 3 648 592 774 254 20 336 6 584 801 174 22.0

Payments for capitalassets 205 753 10 809 12 704 71 254 94 767 46.1

Payments for financialassets 1 367 1 41 123 165 12.1TOTAL 6 182 282 970 809 234 692 340 086 1 545 587 25.0

Reasons for over/underspending against 25% targetProgramme 1• Payments in respect of property management from D:PWD were made.

Programme 2• Expenditure in respect of Primary Animal Health Care Programme did not realise as anticipated as

procurement processes were not completed.

Programme 3• Expenditure in respect of the Economic Competiveness Support Package for colleges of

agriculture did not realise as anticipated as procurement processes were not completed. Furthermore, in respect of transfer payments, the relevant memoranda of understanding were not finalised.

Programme 4• Expenditure in respect of foreign offices from DIRCO did not realise as anticipated.

Programme 5• Payment of CASP: Flood disaster funds to Northern Cape were made in accordance with DORA.

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EXPENDITURE QUARTERS 1, 2, 3 AND 4: PER PROGRAMMEEXPENDITURE QUARTERS 1, 2, 3 AND 4: PER PROGRAMMEPROGRAMMES Budget Q1 Q2 Q3 % Spent Q4 % Spent Q1+Q2+Q3+ Q4 R’000 % Spent % Spent R’000 R’000 R’000 % Spent

Administration 704 671 19.4 22.1 186 657 26.5 201 966 28.7 681 583 96.7

Agricultural Production, Health and Food Safety 2 010 320 27.2 27.1 579 312 28.8 329 370 16.4 2 000 946 99.5

Food Security and AgrarianReform 1 604 592 12.2 33.7 503 758 31.4 351 106 21.9 1 590 101 99.1 Trade Promotion and MarketAccess 256 452 34.7 25.1 49 751 19.4 53 228 20.8 256 334 100.0

Forestry 1 168 579 19.5 15.3 235 517 20.2 501 650 42.9 1 144 699 98.0

Fisheries 433 668 24.3 26.0 109 231 25.0 108 267 24.7 437 650 100.0

TOTAL 6 182 282 21.1 25.8 1 664 226 26.9 1 545 587 25.0 6 111 313 98.9

EXPENDITURE QUARTERS 1, 2, 3 AND 4:PER ECONOMIC CLASSIFICATION PROGRAMMES Budget Q1 Q2 Q3 % Spent Q4 % Spent Q1+Q2+Q3+

Q4

R’000 %Spent % Spent R’000 R’000 R’000 % Spent

Compensation of employees 1 534 392 24.1 24.4 398 338 26.0 381 555 24.9 1 525 024 99.4

Goods and services 791 825 14.1 20.3 206 893 26.1 267 654 33.8 746 426 94.3

Interest and rent on

land 353 22.7 0.3 0 0.0 272 77.1 353 100.0

Transfers and subsidies 3 648 592 21.5 28.3 1 017 648 27.9 801 174 22.0 3 637 949 99.7

Payments for capital assets 205 753 16.9 14.3 41 329 20.1 94 767 46.1 200 206 97.3

Payments for financial

assets 1 367 0 0.1 18 0 165 0 1 355 99.1

TOTAL 6 182 282 21.1 25.8 1 664 226 26.9 1 545 587 25.0 6 111 313 98.9

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2013/14 FINANCIAL YEAR-END RESULTS• THE AUDIT OF THE 2013/14 FINANCIAL AND NON-FINANCIAL INFORMATION HAS

BEEN CONCLUDED:• Sixth successive Unqualified Audit Opinion on financial information.

• There is significant room for improvement in the planning and monitoring of non-financial performance information.

• Programmes 2, 3 and 5 were audited.• Programme 2 moved from a Qualification to an Unqualified Opinion.

• Food Security and Agrarian Reform remained Qualified.

• Forestry Management moved from a Disclaimer to a Qualification.• Areas of concern

• Performance Monitoring has improved. However, the impact of these measures will only be evident at the end of 2014/15.

• Problems in Risk Management and Internal Audit were raised as matters of concern. However, it has been corrected and will not present as a repeat finding.

• Irregular expenditure was identified but disciplinary action was instituted.

• Inadequate monitoring of conditional grants (CASP). Evaluation done by the Department of Performance Monitoring and Evaluation. Draft Report issued and the plan for corrective action still being finalised.

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