Administration 388.6 332.0 33.3 23.3 416.9 448.
Production and Resources Management 300.2 188.8 105.1 6.3 465.8 683.
Agriculture Support Services 1 696.1 181.6 1 514.3 0.2 1 732.2 1 951.
Trade and Economic Development 77.1 51.0 26.0 0.1 84.3 91.
Food Safety and Biosecurity 330.8 321.1 6.3 3.4 390.0 428.
Total expenditure estimates 2 792.8 1 074.4 1 685.0 33.4 3 089.1 3 602.
Website address www.nda.agric.
The Department of Agriculture aims to lead and support sustainable agriculture and promote rural development through: ensuring access to sufficient, safe and nutritious food; eliminating skewed participation and inequity in agriculture; maximising growth, employment and income in the sector; improving the sustainable management of natural agricultural resources and ecological systems; ensuring effective and sufficient governance; and ensuring knowledge and information management.
Purpose: Provide strategic leadership, management, corporate and financial services and operations management.
Purpose: Optimise agricultural productivity and profitability through the identification of opportunities, the sustainable use and protection of land, water and genetic resources, and infrastructure development to ensure household food security.
Purpose: Develop appropriate policies and targeted programmes for equitable access to the agricultural sector for the promotion of shared growth and commercial viability of emerging farmers. Provide risk and disaster management. Provide agricultural education and training, extension and advisory services, scientific research and technology development.
Purpose: Facilitate market access for agricultural products. Provide agricultural economic and statistical services.
Purpose: Manage the risks associated with animal and plant diseases and pests, and genetically modified organisms. Register products used in the agriculture. Promote food safety to safeguard human life.
While national income statistics suggest that the agricultural sector presently accounts directly for 3 per cent of GDP, agriculture's contribution to the overall economy is much greater than this. The sector's strong indirect role in the economy is a function of its backward and forward links to other sectors. Its demand for goods such as fertilisers, chemicals and implements forms links back to the manufacturing sector, while forward links are formed through the supply of raw materials to industry.
In terms of exports, agriculture contributes about R30 billion annually. The sector's share of the country's total exports is about 8 per cent, and processed agricultural products constitute about 60 per cent of all agricultural exports. Formal agriculture provides both contract and seasonal employment for about 800 000 workers, and the smallholder sector provides full or part time employment for at least a further 1 million households. This represents about 8.5 million people. Agro-processing and the food industry are major sources of employment and the number of jobs created per unit of investment is higher in agriculture compared to other sectors. This implies that growth in agricultural output overall has a greater impact on employment creation.
Over the medium term, the department intends to: increase agricultural production by supporting farmers, agrarian reform beneficiaries, entrepreneurs and agribusiness; improve access to markets for agricultural products, and maintain effective biosecurity and risk management systems.
A major challenge for the Department of Agriculture has been to accelerate the pace of land and agrarian reform and to initiate an integrated programme for rural development. The land and agrarian reform project was developed during 2007/08 to provide a new framework for delivery and collaboration on land reform and agricultural support to accelerate the rate and sustainability of transformation.
increase the number of black entrepreneurs in the agribusiness industry by 10 per cent provide universal access to agricultural support services for emerging black farmers increase agricultural production by emerging black farmers by 10 per cent under the Ilima/Letsema campaign increase agricultural trade by previously disadvantaged people by 10 to 15 per cent.
The land and agrarian reform project will provide agricultural and other support services in one-stop shop service centres located close to farming and rural beneficiaries. National, provincial and local governments are committed to jointly implementing this initiative to accelerate land and agrarian reform.
A second challenge for the department is the rapid rise in food prices. Contributing factors include the low availability of grains worldwide, increased demand, unfavourable weather conditions, the rise in fuel prices and high agricultural input costs - especially fertiliser. In 2007, Cabinet instructed the government departments in the social and economic clusters to expand programmes that support groups and communities that are vulnerable to high food prices. These include providing agricultural starter packs for household vegetable production and promoting food gardens as a short term intervention. In support of this imperative, additional funds were allocated for production projects, such as the revitalisation of irrigation schemes, mass food production and the construction of a rooibos tea processing plant during 2008/09. More funds have also been made available for accelerating and improving agricultural crop production through the Ilema/Letsema campaign. The campaign was initiated by the Department of Agriculture as a national effort to ensure that no land lies fallow and that communities and all role players leverage land as a resource to fight poverty and hunger, and increase food security.
A third challenge for the department is to ensure that animal and plant products are disease free, thus protecting public health. This is an ongoing priority as it has a direct bearing on the sector's ability to produce safe and nutritious food, as well as optimising trade opportunities. Inspection services at all South African land, sea and air ports of entry are being upgraded.
Initiatives by the Micro Agricultural Financial Institutions of South Africa and the comprehensive agricultural support programme are ongoing. The department intends to increase the number of financial institutions providing loans to emerging black farmers, and is expanding extension services through the comprehensive agricultural support programme.
To support beneficiaries of land reform and other black farmers, norms and standards for extension and advisory services have been developed. Strategies have also been designed for agricultural education and training, and research and development.
The department distinguishes between the strategic management, project management and performance management processes, and has developed synergies between them to improve performance. The department completed the development of its project management policies, processes, methodology, procedures and templates for its project management support office at the end of October 2008, and has provided project planning support to 64 departmental initiatives in 2008/09.
Other key areas of focus include food safety and biosecurity. The department is developing an effective inspectorate service at all ports of entry to ensure law enforcement and compliance with regulations that control the import and export of agricultural products. The sniffer dog unit at OR Tambo International Airport will be expanded to other ports of entry. The plant health component is also receiving special attention to respond to constraints that currently expose the agricultural sector to risks associated with plant pests and diseases. The department's science based decision making system, which complies with international and national biosecurity obligations and responsibilities, will be strengthened in support of the agricultural industries.
The department has revised its 2008 selected performance indicators to bring them in line with its strategic planning for 2009/10. The new indicators are based on the new programme of action.
R million 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 1. Administration 247.8 279.7 333.9 368.6 368.6 388.6 416.9 448.1 2. Production and Resources Management 341.6 225.6 233.2 553.4 523.4 300.2 465.8 683.4 3. Agriculture Support Services 1 005.9 1 288.0 2 370.0 1 475.3 1 425.3 1 696.1 1 732.2 1 951.7 4. Trade and Economic Development 49.9 47.4 60.9 69.2 69.2 77.1 84.3 91.2 5. Food Safety and Biosecurity 263.7 383.2 334.7 471.2 433.1 330.8 390.0 428.
Total 1 909.0 2 224.0 3 332.8 2 937.7 2 819.6 2 792.8 3 089.1 3 602.
Change to 2008 Budget estimate 403.1 285.0 165.0 338.0 682.
Current payments Compensation of employees 718.3 871.8 869.8 1 006.3 998.2 1 074.4 1 181.6 1 276.7 358.7 434.8 448.8 550.1 542.0 649.6 725.6 787.
Consultants and professional services: Laboratory service - - - 0.6 0.6 0.7 0.7 0.
Provinces and municipalities 411.2 401.8 762.1 898.4 868.4 877.2 1 117.3 1 437.
Departmental agencies and accounts 385.7 532.8 522.2 612.7 612.7 567.5 653.2 742.
Universities and technikons - - 3.8 6.2 6.2 4.0 4.2 4.
Public corporations and private enterprises 146.8 245.5 1 000.1 155.6 105.6 197.2 55.3 58.
Foreign governments and international 155.1 10.0 32.9 33.8 33.8 32.5 34.4 36.
Non-profit institutions 0.8 7.7 5.8 17.6 17.6 6.3 6.6 6.
Biological and cultivated assets 0.0 0.1 0.5 0.3 0.
Software and other intangible assets 5.4 1.7 1.3 0.8 0.8 0.1 0.1 0.
Expenditure increased from R1.9 billion in 2005/06 to R3.3 billion in 2007/08, and is expected to grow at a further average annual rate of 7.0 per cent over the medium term, to reach R3.6 billion in 2011/12. The increase of 49.9 per cent in 2007/08 was due to a once-off allocation to the Land Bank for the purpose of recapitalisation.
Transfer payments account for on average 63 per cent of the department's budget, apart from 2007/08, when they topped 72.6 per cent due to the once-off allocation to the Land Bank. In 2009/10, the following transfer payments were made: R525.4 million to the Agricultural Research Council; R48.6 million to the Land Bank; R146 million to the Micro Agricultural Financial Institutions of South Africa; R816.8 million to the provincial departments of agriculture for the comprehensive agricultural support programme, LandCare, Ilima/Letsema and veld fires interventions; R197.2 million to public corporations and private enterprises; and R32.5 million to international organisations.
The allocation to the comprehensive agricultural support programme is expected to rise from R538.1 million in 2008/09 to R979.3 million in 2011/12, at an average annual rate of 22.1 per cent, mainly due to increased transfers for assistance to emerging black farmers and communities.
10.6 per cent and 16.6 per cent in total expenditure in 2010/11 and 2011/12.
An additional R650 million is allocated to enhance agricultural production over the MTEF period. These funds will be transferred to the provincial departments of agriculture as conditional grants for projects such as the upgrading of the Vaalharts/Taung and Makhathini irrigation schemes and the food massification (mass food production) programme in Eastern Cape.
In aggregate, savings of R55.9 million in 2009/10, R65.3 million in 2010/11 and R68 million in 2011/12 have been identified in goods and services (including communication, consultants, entertainment and travel and subsistence items) and transfer payments to departmental agencies and public corporations.
The department's spending on infrastructure is R62.5 million in 2009/10 and falls into the small projects category. With the exception of funds made available to build a new quarantine station in Durban (R12.4 million), a new office block in Stellenbosch (R3.3 million), erect and maintain border fences to control the spread of foot and mouth disease (R19 million) and drill bore holes (R16 million), the balance (R11.8 million) of the funds is for maintaining existing infrastructure.
A significant portion of departmental revenue is derived from the sale of goods and services, including: statutory services such as registering fertilisers, farm feeds, agricultural remedies and brands; analysing soil; issuing import and export certificates for agricultural products; issuing liquor control permits; and providing quarantine and inspection services.
Other receipts accrue from interest payments, rent on land and financial transactions in assets and liabilities. The substantial increase in total revenue in 2008/09 was mainly due to repayments by provinces of unspent conditional grants amounting to R106.9 million and which is reflected under financial transactions in assets and liabilities. Furthermore, the increase from 2007/08 to 2009/10 in interest, dividends and rent on land and financial transactions in assets and liabilities is due to the incorporation of the agricultural debt account debtors into the department's books since the repeal of the Agricultural Debt Management Act (2001) in September 2008.
Corporate and Financial Services 96.8 99.3 113.1 134.5 140.6 147.1 157.
Operations Management 77.0 103.2 143.1 118.5 121.8 129.4 137.
Office accommodation 46.1 48.5 45.4 69.2 80.2 91.5 101.
Total 247.8 279.7 333.9 368.6 388.6 416.9 448.
Current payments Compensation of employees Goods and services of which: Administrative fees Advertising Assets less than R5 000 Audit costs: External Bursaries (employees) Catering: Departmental activities Communication Computer services Consultants and professional services: Business and advisory services Consultants and professional services: Infrastructure and planning Consultants and professional services: Legal costs Contractors Agency and support / outsourced servicesInventory: Fuel, oil and gas Inventory: Materials and supplies Inventory: Other consumables Inventory: Stationery and printing Lease payments Owned and leasehold property expenditure Travel and subsistence Training and development Operating expenditure Venues and facilities Financial transactions in assets and liabilities Transfers and subsidies Provinces and municipalities 205.5 240.7 286.2 306.6 332.0 355.6 382.5 96.5 108.7 20.1 2.6 4.9 3.6 0.3 0.4 10.0 17.7 - 1.0 0.2 1.2 9.5 1.8 0.4 0.6 4.4 3.5 6.4 10.8 2.8 0.8 5.7 0.3 107.1 133.5 22.3 7.3 2.0 5.0 0.4 0.5 8.4 13.4 0.3 1.2 0.2 1.4 13.5 1.8 0.7 0.6 5.7 6.1 7.9 18.2 4.4 1.0 11.0 0.1 120.5 165.7 27.01.9 2.5 4.0 0.6 0.5 10.9 14.6 1.0 4.0 1.04.99.8 2.1 0.4 0.6 5.5 8.3 9.4 33.4 4.6 2.8 15.4 0.0 145.8 160.8 33.9 1.6 3.0 4.8 0.6 0.5 18.5 16.0 0.7 5.0 0.3 1.6 12.1 2.0 0.3 0.9 4.8 9.7 8.8 21.7 3.3 2.0 8.6 - 172.1 159.9 37.1 1.8 3.1 5.2 1.0 0.5 15.6 18.5 1.4 6.1 0.1 2.8 5.3 2.3 0.7 1.1 3.9 13.4 11.5 17.4 4.1 0.9 5.9 - 183.4 172.2 43.61.9 3.2 5.5 1.10.5 16.4 19.0 1.6 5.9 0.12.1 5.6 2.60.8 1.2 4.114.5 12.6 18.6 4.8 1.0 5.3 - 193.4 189.1 50.1 2.0 3.2 6.0 1.1 0.6 17.1 20.1 1.8 6.4 0.1 2.2 5.8 2.8 0.9 1.3 4.3 15.4 13.5 19.6 5.2 1.0 8.
Departmental agencies and accounts 0.4 0.5 0.5 0.6 0.7 0.7 0.
Public corporations and private enterprises 0.3 0.1 0.1 0.0 0.1 0.1 0.
Foreign governments and international organisations 15.1 10.0 32.9 33.8 32.5 34.4 36.
Households 0.4 0.6 0.2 0.
Payments for capital assets 25.7 27.7 14.0 27.5 23.3 26.1 28.
Foreign governments and international organisations Current 10.2 Food and Agriculture Organisation of the United Nations: Capacity building - Food and Agriculture Organisation of the United Nations: Membership fees 10.2 International Fund for Agricultural Development - 7.9 - 7.9 - 23.3 14.5 8.8 - 27.5 12.0 11.5 4.0 26.8 12.0 9.8 5.0 28.5 12.7 10.5 5.3 30.2 13.5 11.2 5.
Expenditure rises steadily over the seven-year period, from R247.8 million in 2005/06 to R448.1 million in 2011/12, at an average annual rate of 10.4 per cent.
The allocations for the Minister and Deputy Minister subprogrammes grew by a significant 77.
46.9 per cent in 2007/08 and 2008/09 due to large increases in remuneration. The increases of 52.
42.4 per cent in the Office Accommodation and Management subprogrammes in 2008/09 were due to inflation related adjustments.
Expenditure in payments for capital assets increased by 97.1 per cent between 2007/08 and 2008/09 due to R12 million budgeted for in 2007/08 but not spent, for a new quarantine station in Durban.
Agricultural Production focuses on creating an enabling environment for increased and sustainable agricultural production through appropriate policies, legislation, norms and standards, technical guidelines and services, and on ensuring national food security. It also administers the Animal Improvement Act (1988), the Plant Breeders' Rights Act (1976), and the Plant Improvement Act (1976).
Engineering and Resources Management facilitates the development of agricultural infrastructure and the use of agricultural resources. Other activities include: auditing natural resources; controlling migratory pests; rehabilitating and protecting agricultural land; and administering the community based LandCare programme.
implementing targeted animal and crop production programmes and providing support services such as Ilima/Letsema to increase food production by 2 per cent per year over the medium term increasing the area of farm land under sustainable management practices to approximately 3 700 hectares of land per year over the medium term increasing the number of beneficiaries adopting sustainable production technologies and practices by 100 per year over the medium term.
South Africa is the first country in Africa, and only the second (after Argentina) in the southern hemisphere, to be awarded a special stamp for its animal recording system by the international animal recording committee.
This international recognition serves as a benchmark for the quality of standards and service delivery in the application of the animal recording system.
The department and its commodity partners continued to implement master mentorship programmes for emerging farmers within the wool, red meat and dairy industries, which included training on animal husbandry, sheep shearing, general dairy herd management, milk recording services, and livestock improvement through the introduction of breeding animals.
The area wide planning undertaken in 2007/08 in Northern Cape and North West on the Vaalharts/Taung irrigation scheme and in KwaZulu-Natal on the Makhathini irrigation scheme, provided the necessary information for implementing major rehabilitation projects. These are aimed at replacing and upgrading irrigation infrastructure to increase agricultural production in the Ilema/Letsema programme. This programme receives an additional R650 million over the medium term for implementation.
Through the LandCare programme, 4 664 beneficiaries received support to protect 2 428 hectares of land and improve the soil management systems implemented on 5 047 hectares of range land in 2007/08.
Management - 0.1 1.4 1.7 1.9 2.0 2.
Agriculture Production 173.4 42.8 51.4 351.4 99.8 254.4 456.
Engineering and Resource Management 168.2 182.7 180.5 200.2 198.4 209.4 225.
Total 341.6 225.6 233.2 553.4 300.2 465.8 683.
Change to 2008 Budget estimate 294.1 34.4 183.5 387.
Current payments Compensation of employees Goods and services of which: Administrative fees Advertising Assets less than R5 000 Bursaries (employees) Communication Computer services Consultants and professional services: Business and advisory services Consultants and professional services: Infrastructure and planning Consultants and professional services: Legal costs Contractors Agency and support / outsourced services Inventory: Fuel, oil and gas Inventory: Materials and supplies Inventory: Other consumables Inventory: Stationery and printing Lease payments Owned and leasehold property expenditure Travel and subsistence Training and development Operating expenditure Venues and facilities Financial transactions in assets and liabilities 142.5 152.9 163.6 193.0 188.8 201.2 215.5 61.4 80.90.2 1.3 0.8 0.2 2.51.0 - 24.0 0.2 6.4 3.1 4.9 1.0 7.6 1.4 0.4 0.0 20.4 1.5 0.6 3.0 0.2 78.9 73.7 0.2 1.5 0.8 0.2 1.6 1.1 0.1 13.1 0.3 4.5 1.2 7.4 4.1 8.1 1.5 0.5 0.0 22.5 1.4 0.7 2.5 0.4 85.8 77.7 0.2 1.3 0.9 0.3 1.5 0.5 - 17.4 0.3 4.7 1.5 5.9 1.0 14.9 1.2 0.4 0.0 17.6 2.2 3.5 2.2 - 100.9 92.1 1.0 0.8 1.8 0.5 1.8 0.4 0.0 25.0 1.0 5.6 3.2 9.2 1.9 1.9 1.9 0.8 - 21.0 1.0 1.5 11.6 - 115.9 72.9 0.5 0.4 1.6 0.6 1.2 1.0 8.4 13.6 0.3 8.7 1.2 8.0 5.6 1.5 1.0 1.3 0.3 10.2 1.2 0.4 5.3 - 122.9 78.4 0.5 0.5 1.9 0.7 1.1 1.2 9.9 14.80.3 9.2 1.6 8.95.8 1.6 1.5 1.4 0.5 10.3 1.2 0.4 4.5 - 130.8 84.7 0.6 0.5 2.0 0.6 1.2 1.2 10.0 15.1 0.3 9.5 1.7 10.3 7.0 1.7 1.1 1.5 0.4 11.1 1.3 0.4 6.
Transfers and subsidies 182.7 60.8 55.0 354.8 105.1 258.2 461.
Payments for capital assets 16.5 11.9 14.7 5.6 6.3 6.3 6.
Provinces and municipalities Provinces Provincial revenue funds Current LandCare programme grant: Poverty relief and infrastructure development grant 40.0 55.7 46.7 223.0 101.4 254.5 457.8 40.0 55.7 46.7 51.0 51.4 54.5 57.
Ilima / Letsema projects - - - 96.0 50.0 200.0 400.
Agricultural starter packs Departmental agencies and accounts Departmental agencies (non-business entities) Current Water Research Commission Eastern Cape Rural Finance CorporationUniversities and technikons Current University of Stellenbosch Public corporations and private enterprises Public corporations Other transfers Current Development Bank of Southern Africa Foreign governments and international organisations Current World Food Programme - - - 76.
Expenditure in the Production and Resources Management programme is expected to increase at an average annual rate of 12.3 per cent over the seven-year period, rising from R341.6 million in 2005/06 to R683.4 million in 2011/12. The 34 per cent decrease in expenditure between 2005/06 and 2006/07 was due to a once-off payment of R140 million to the World Food Organisation in 2005/06. The increase of 137.3 per cent in 2008/09 was due to once-off additional transfers of R76 million to provinces to alleviate food shortages in urban areas, and R221 million for Ilema/Letsema projects to improve agricultural production.
Over the medium term, additional allocations of R50 million, R200 million and R400 million are made to further strengthen these projects, resulting in subprogramme growth of 154.
79.3 per cent in 2011/12.
Expenditure on payments for capital assets peaked in 2007/08 due to the purchase of a drilling rig.
Livelihoods and Development Support facilitates the provision of post-settlement support to emerging farmers and agricultural development finance, and promotes black economic empowerment (BEE) and farmer cooperatives. It further manages agricultural risk and disasters by providing compensation for victims and funding for the repair of damaged infrastructure. It also manages the transfer of funds to the comprehensive agricultural support programme, Micro Agricultural Financial Institutions of South Africa, AgriBEE and Ncera Farms. Funding is provided on the basis of approved business plans and service level agreements between the department and these entities.
Sector Services and Research directs and supports agricultural education, training, extension, research and advisory services in support of targeted groups. It also manages the transfer of funds to the Agricultural Research Council. Funding is mainly used for salaries, and other personnel related costs.
increasing the number of financial institutions accredited in terms of the Micro Agricultural Financial Institutions of South Africa to 12 institutions by the end of 2009/10 providing industry focused farmer training to 1 000 beneficiaries per year over the medium term improving the quality of extension services through increasing the number of extension officers enrolled in skills upgrading programmes by 150 per year over the medium term.
As part of its drive to upgrade extension services in all provinces, the department provided training in project management and ICT to 360 extension officers in 2007/08. A further 620 extension officers received training in computer literacy, and 232 were recruited from the provinces as part of the extension recovery plan to support the land reform programme.
495 farmers benefited from 23 pilot projects implemented in Northern, Western and Eastern Cape, as part of the farmer-to-farmer mentorship programme.
While 80 000 emerging black farmers were targeted for support by the comprehensive agricultural support programme in 2007/08, this target proved to be unrealistic, and only 37 230 emerging black farmers and 667 projects were supported.
About 21 400 farmers who suffered losses due to agricultural disasters were assisted financially.
The Black Economic Empowerment Sector Charter on Agriculture was developed and gazetted in 2008. The charter aims to provide a transformation blueprint for the agricultural sector in terms of section 12 of the Broad-Based Black Economic Empowerment Act (2003), and provides important guidelines for empowerment in the agricultural sector.
Over the medium term, the department aims to provide R2.6 billion in conditional grants to provinces for supporting farmers in areas such as infrastructure, training and advisory services and marketing, and for upgrading agricultural colleges.
Management 1.8 1.4 1.8 12.3 2.1 2.1 2.
Livelihoods Development Support 556.8 676.2 1 779.3 747.3 905.5 739.2 794.
Sector Services and Research 447.3 610.4 588.9 715.7 788.6 990.9 1 155.
Total 1 005.9 1 288.0 2 370.0 1 475.3 1 696.1 1 732.2 1 951.
Administrative fees - - - 1.2 0.1 0.1 0.
Owned and leasehold property expenditure 0.5 0.9 0.5 - 0.5 0.6 0.
Transfers and subsidies 886.2 1 122.6 2 215.4 1 285.2 1 514.3 1 542.3 1 747.
Provinces and municipalities 370.1 345.5 715.0 675.0 775.4 862.4 979.
Departmental agencies and accounts 369.2 509.3 498.1 522.2 537.9 620.6 705.
Universities and technikons - - 0.2 2.6 3.8 4.0 4.
Public corporations and private enterprises 146.4 245.2 999.9 74.5 197.2 55.2 58.
Non-profit institutions 0.5 2.5 2.0 10.
Biological and cultivated assets 0.0 0.
Software and other intangible assets - - 0.2 0.
Provinces and municipalities Provinces Provincial revenue funds Current Comprehensive agricultural support programme grant Disaster management Drought relief Flood disaster Agriculture disaster management grant Comprehensive agricultural support programme grant: Extension services Comprehensive agricultural support programme grant: Land and agrarian reform project colleges 370.0 345.4 715.0 675.0 775.4 862.4 979.3 250.0 - 120.0 - - - - 300.0 - - 45.4 - - - 415.0 300.0 - - - - - 438.1 - - - 136.8 100.0 - 544.6 60.0 - - - 170.8 - 577.6 - - - -284.8 - 622.5 - - - - 306.9 50.
Current 316.3 442.2 437.4 457.3 464.9 497.5 532.
Perishable Products Export Control Board - 0.6 0.6 0.
National Student Financial Aid Scheme 8.3 8.3 8.3 5.0 8.5 8.9 9.
Agricultural Research Council: Baseline allocation 288.4 418.6 385.2 403.7 428.5 459.1 492.
Agricultural Research Council: Intergis 1.6 1.7 1.8 1.9 2.0 2.1 2.
Agricultural Research Council: Crop forecast 5.3 5.5 5.7 5.9 9.1 9.7 10.
Agricultural Research Council: Diagnostic services 7.2 7.4 15.8 16.2 16.7 17.7 18.
Agricultural Research Council: AgriBEE 5.
Agricultural Research Council: Onderstepoort Veterinary - - 20.0 24.
Capital 52.9 57.1 60.0 62.9 69.0 118.9 168.
Agricultural Research Council: Baseline allocation 44.9 47.1 49.5 51.9 57.3 62.6 67.
Agricultural Research Council: Agricultural research and 8.0 10.0 10.5 11.0 11.7 12.4 13.
Agricultural Research Council: Renovations and upgrading - - - - - 43.9 87.
Current - - - 2.6 3.8 4.0 4.
Fort Hare University: Community development centres - - - 1.0 1.9 2.0 2.
Free State University: Capacity building SMME development - - - 1.6 1.9 2.0 2.
Current 146.4 245.2 999.9 74.5 197.2 55.2 58.
Land and Agricultural Bank of South Africa: Micro-Agricultural 144.0 196.0 248.0 22.1 146.
Ncera Farms 2.4 2.2 1.9 2.4 2.6 2.8 3.
Land and Agricultural Bank of South Africa: AgriBEE - 47.0 50.0 50.0 48.6 52.4 55.
Land and Agricultural Bank of South Africa: Recapitalisation - - 700.
Red Meat Industry Forum - - - 0.
Current - - - 9.
Cotton SA - - - 4.
National African Farmers Union - - - 5.
Current - 20.
Broad based black economic empowerment for agriculture - 20.
Spending in the Agriculture Support Services programme increased at an average annual rate of 13.6 per cent between 2005/06 and 2008/09, from R1 billion to R1.5 billion, and is expected to grow at an average annual rate of 9.8 per cent over the medium term, to reach R2 billion in 2011/12.
The 28 per cent increase in 2006/07 was due to increased transfers to the Agricultural Research Council (R130 million), the Land Bank (R47 million), the Micro Agricultural Financial Institutions of South Africa (R50 million) and the comprehensive agricultural support programme (R50 million). Between 2006/07 and 2007/08, expenditure grew by 84 per cent due to once-off allocations of R300 million for agriculture disasters and R700 million to the Land Bank for recapitalisation purposes.
Over the medium term, expenditure in the comprehensive agricultural support programme is projected to increase at an average annual rate of 22.1 per cent, from R538.1 million in 2008/09 to R979.3 million in 2011/12. This is mainly due to additional allocations of R50 million and R318 million for upgrading agricultural colleges, and inflation related adjustments.
Transfers and subsidies increased by 97.3 per cent in 2007/08 due to once-off allocations for disaster management (R300 million) and the extension of the comprehensive agricultural support programme (R100 million). The increase of 45.5 per cent in goods and services in 2006/07 was due to the appointment of more consultants and professional services and the centralisation of funds for research projects.
The Agricultural Research Council is a science institution that conducts fundamental and applied research with partners to generate knowledge, develop human capital, and accelerate innovation in agriculture by developing technology and disseminating information about innovative practices to sector stakeholders. It aims to commercialise its research results to support a prosperous agricultural sector.
generate, develop and apply new knowledge, science and technology for agriculture to meet the demands for increased food production, food security and poverty alleviation promote the sustainable use and management of natural resources to ensure a competitive agricultural sector, and increased wealth for people and industries dependent on natural resource based agriculture improve nutrition, food security and safety by improving crop production systems, crop livestock systems and seed security improve the ability of the agricultural sector to manage and mitigate agricultural risks by developing and transferring technological solutions that mitigate the effects of risks and threats to the agricultural production chain from natural disasters, diseases, pests and agricultural practices transfer technology to disseminate solutions and technologies emanating from agricultural research and development achieve organisational growth and sustainability.
The Agricultural Research Council exceeded performance expectations in a number of areas. A significant success was completing the sequencing of 48 Southern African types of virus isolates of foot and mouth disease from different regions and countries within Southern Africa. Understanding the genetic sequences of these isolates will enable researchers to develop and select effective vaccine strains with greater specificity. The availability of such vaccines within South Africa, and the continent, will contribute vastly to disease management and increased livestock productivity.
The council's research on wheat has resulted in the classification of two wheat breeding lines, Buffels and Tankwa, for production under irrigation and dry land farming conditions. Research on the Russian wheat aphid and breeding programmes for drought tolerant cultivars continues with some successes. The council has also made progress with the conversion of maize lines to quality protein maize to strengthen resistance to diseases, such as grey leaf spot and stalk rot, and improve drought tolerance.
The improvement of the cattle scheme is set to meet the needs of new entrants into farming, particularly black resource poor farmers. This scheme has continued to attract the participation of increasing numbers of black farmers in various provinces. By December 2008, the scheme had attracted at least 916 farmers from Limpopo, 160 from North West and 178 from Mpumalanga, with a total cattle population of 23 260.
The sustainable use of natural resources and the mitigation of adverse impacts of climate change have resulted in a number of research projects, such as the role of goats in facilitating seed germination, and the distribution of alien invasive plant species.
Generate, develop and apply new knowledge 94.2 100.4 104.2 123.3 135.9 146.0 158.
Sustainable use and management of natural 131.9 140.6 145.9 172.6 190.9 205.6 223.
Enhance nutrition, food security and safety 125.6 133.9 138.9 164.4 181.2 194.7 211.
Enhance the ability of the agricultural sector to 131.9 140.6 145.9 172.6 190.2 204.5 222.
Technology transfer 81.7 87.0 90.3 106.8 117.8 126.6 137.
Other activities 87.0 92.7 96.2 113.8 122.5 129.9 140.
Total expense 652.4 695.1 721.4 853.5 938.5 1 007.2 1 094.
Non-tax revenue 304.4 202.8 241.4 320.1 353.0 367.2 391.
Agricultural research revenue 304.4 202.8 241.4 320.1 353.0 367.2 391.
Transfers received 360.9 500.4 488.5 514.6 525.4 607.5 691.
Total revenue 665.3 703.2 729.9 834.7 878.4 974.8 1 083.
Current expense 652.4 695.1 721.4 853.5 938.5 1 007.2 1 094.
Total expenses 652.4 695.1 721.4 853.5 938.5 1 007.2 1 094.
The Agricultural Research Council's funds are mainly derived from grants received from government transfers. Funding outside the salary bill has to be carefully used to ensure that the council meets its mandates and is still able to generate external income through providing research services. Transfers to the council over the MTEF period are R525.4 million, R607.5 million and R691.7 million.
Expenditure increased steadily between 2005/06 and 2008/09 at an average annual rate of 9.4 per cent, driven largely by inflationary increases in compensation of employees and goods and services. It is expected to rise by a further average annual rate of 8.6 per cent over the medium term, to reach R1.1 billion in 2011/12.
Trade and Marketing Development facilitates domestic and international market access for South African agricultural products. It also manages the transfer of funds to the National Agricultural Marketing Council.
Economic and Statistical Services provides for agricultural statistical services in support of economic growth and development, and an equitable agricultural sector. It also monitors and evaluates the economic performance of the sector and generates national agricultural statistics.
Funding in both these subprogrammes is mainly used for salaries, and other personnel related costs.
increasing the number of emerging black farmers trained in agricultural marketing from 100 to 450 per year over the MTEF period increasing international market access for South African agricultural products by concluding 6 negotiating positions per year over the MTEF period.
Increase the level of public and private investment in agricultural development through improving the knowledge base in agricultural economics by publishing 14 economic reviews, 8 topical reports and 6 statistical reports by March 2010.
To improve the accuracy of crop forecasts, a new producer independent crop estimation system was developed in 2007, and is currently being implemented. The new system will complement the existing point frame sampling system.
Statistics South Africa completed an agricultural census of commercial farmers on behalf of the department in 2007. The results are now being processed.
Over the medium term, the Trade and Agricultural Development programme will focus on increasing market access by training emerging farmers to market their own products, and promoting increased participation in international markets. The food price structure is monitored by the National Agricultural Marketing Council.
Management 0.6 1.5 1.2 2.0 2.4 2.4 2.
Trade and Marketing Development 31.6 30.8 36.3 45.3 52.1 57.6 62.
Economic and Statistical Services 17.8 15.1 23.5 21.9 22.6 24.3 26.
Total 49.9 47.4 60.9 69.2 77.1 84.3 91.
Current payments Compensation of employees Goods and services of which: Advertising Assets less than R5 000 Computer services Consultants and professional services: Business and advisory services Consultants and professional services: Infrastructure and planning Agency and support / outsourced services Inventory: Stationery and printing Travel and subsistence Training and development Venues and facilities Financial transactions in assets and liabilities Transfers and subsidies Provinces and municipalities Departmental agencies and accounts Public corporations and private enterprises Households Payments for capital assets Machinery and equipment Software and other intangible assets 32.7 33.9 42.9 46.2 51.0 55.3 57.7 23.0 9.6 0.3 0.30.5 2.7 - 1.0 0.8 2.8 0.3 0.1 0.0 24.3 9.6 0.3 0.3 0.5 0.0 - 1.2 0.8 4.1 0.7 0.5 - 26.3 16.6 0.5 0.2 0.4 8.1 - 0.5 1.1 4.0 0.6 0.2 - 32.0 14.2 0.2 0.4 0.5 0.0 2.7 2.4 0.8 4.6 0.1 0.8 - 39.9 11.1 0.2 0.4 0.5 0.0 - 2.1 0.4 4.0 0.3 2.0 - 42.2 13.1 0.2 0.5 0.6 0.0 - 2.2 0.4 4.2 0.3 3.6 - 44.5 13.2 0.2 0.5 0.6 0.0 - 2.3 0.4 4.4 0.4 3.
Current National Agricultural Marketing Council 14.0 12.7 17.0 22.5 26.0 28.8 33.2 14.0 12.7 17.0 22.5 26.0 28.8 33.
10.6 per cent over the seven-year period, rising from R49.9 million in 2005/06 to R91.2 million in 2011/12. Between 2006/07 and 2007/08, expenditure increased by 28.6 per cent due to increased transfers of R4.3 million to the National Agricultural Marketing Council for capacity building and R8 million to Statistics South Africa for an agricultural survey.
Spending on payments for capital assets decreases by an average annual rate of 35.6 per cent over the sevenyear period, due to the programme being fully staffed and equipped.
Plant Health and Inspection Services develops sound plant health risk management frameworks, contributes to a compliance system for assessing potential risks associated with genetically modified organisms, and regulates border and national inspection services on regulated agricultural products intended for import, export and local trade.
Food and Veterinary Services manages animal diseases and assists with negotiating protocols for importing and exporting animals and animal products, and ensures that animal products are of good quality and safe for human consumption.
Improving the regulatory framework by 2010/11 designing an early warning system for biosecurity risks by 2011/12 strengthening compliance and implementation of regulations.
Access, improve and maintain domestic and international markets by ensuring compliance with plant and animal health measures, food safety measures, biosafety and biosecurity regulations, and the effective regulation of agrochemicals.
Since 2007/08, the department intensified communications aimed at safeguarding South African agriculture and biodiversity. A warning to the public to declare all quarantined items when arriving in South Africa was advertised, and an article on import control was published in various magazines.
5 more sniffer dogs were acquired for the sniffer dog project (Sedupe K9) and 3 officials were trained on sniffer dog handling. Pest disaster management plans were finalised and circulated to relevant role players for comments. To prevent exotic fruit flies from entering South Africa from neighbouring countries, extensive trapping continued in Limpopo.
A national steering committee was established in 2007/08 to deal with contingency planning in case of an outbreak of an invasive new fruit fly (bactrocera invadens) in Southern Africa Development Community (SADC) countries.
25 additional scientists were recruited and inducted to the regulatory environment in order to cope with the increase in applications for genetically modified crops and vaccines.
In 2007/08, an outbreak of classical swine fever in Eastern Cape was successfully contained, and surveillance on avian influenza and classical swine fever is ongoing.
Candidates from previously disadvantaged communities in the wine industry were trained in the tasting of certified wine and grape based liquor, and served on the panels of the Wine and Spirit Board for certification and export.
Over the medium term, the programme will focus on strengthening the management and control of biosecurity risks associated with agricultural products to ensure food safety and safeguard human health.
Management 1.8 1.8 0.6 2.0 2.1 2.1 2.
Plant Health and Inspection Services 69.1 87.4 102.2 153.8 194.8 247.3 277.
Food and Veterinary Services 192.9 294.0 231.8 315.5 133.9 140.6 148.
Total 263.7 383.2 334.7 471.2 330.8 390.0 428.
Change to 2008 Budget estimate 167.1 (15.1) (2.6) 14.
Current payments Compensation of employees Goods and services of which: Administrative fees Advertising Assets less than R5 000 Bursaries (employees) Communication Computer services Consultants and professional services: Business and advisory services Consultants and professional services: Infrastructure and planning Consultants and professional services: Laboratory service Consultants and professional services: Legal costs Contractors Agency and support / outsourced services Inventory: Food and food supplies Inventory: Fuel, oil and gas Inventory: Materials and supplies Inventory: Medical supplies Inventory: Other consumables Inventory: Stationery and printing Lease payments Travel and subsistence Training and development Operating expenditure Venues and facilities Financial transactions in assets and liabilities Transfers and subsidies Provinces and municipalities Departmental agencies and accounts Public corporations and private enterprises Non-profit institutions Households Payments for capital assets Buildings and other fixed structures 220.7 285.7 226.7 274.7 321.1 379.8 417.3 131.3 89.1 - 1.3 1.3 0.5 2.60.7 0.0 1.4 - 1.1 4.2 32.2 - 2.4 0.6 2.4 4.3 1.8 3.9 24.2 1.7 1.7 0.50.3 168.6 116.1 - 1.4 1.6 0.5 2.8 0.9 0.0 1.7 - 1.3 2.3 29.8 0.0 2.6 0.9 3.0 5.2 2.4 4.0 51.4 1.8 1.8 0.6 1.0 152.9 73.5 - 3.4 1.3 0.6 2.7 0.5 0.0 1.9 - 0.7 2.718.0 - 3.6 0.5 2.2 5.4 3.2 1.6 21.7 1.4 1.5 0.7 0.3 192.2 82.4 0.6 1.2 2.6 0.6 2.8 10.8 0.0 1.8 0.6 0.1 2.4 11.5 0.0 3.2 0.3 0.7 3.2 4.7 2.3 19.7 1.8 6.5 4.8 - 237.0 84.1 0.0 1.1 6.5 1.0 3.4 16.3 2.3 3.4 0.6 0.6 1.3 12.8 0.4 2.5 0.6 0.9 2.9 3.6 2.0 14.2 3.4 1.5 2.6 - 288.5 91.3 0.0 1.7 8.0 1.5 4.3 7.6 1.5 6.5 0.50.6 1.5 13.2 0.5 2.80.8 1.1 4.3 4.1 2.3 16.7 4.1 2.0 5.5 - 323.1 94.2 0.0 1.8 8.0 1.5 4.6 7.8 1.3 6.8 0.4 0.6 1.7 13.3 0.5 3.2 0.8 1.2 4.5 4.6 2.5 18.2 4.4 2.1 3.
Machinery and equipment 8.2 12.4 10.0 4.2 3.4 3.6 3.
Biological and cultivated assets - - 0.5 0.
Software and other intangible assets 0.1 0.2 0.4 0.
Current - - - 21.
Bluelilliesbush Dairy Farming - - - 21.
Current - 4.0 3.0 6.0 6.3 6.6 6.
Deciduous Fruit Producer Trust: Area wide pest control programme - 4.0 3.0 6.0 6.3 6.6 6.
Current 33.3 59.6 88.4 163.
Classical swine fever 33.3 59.6 88.4 163.
3.2 per cent over the medium term.
Expenditure peaked at R383.2 million in 2006/07, an increase of 45.3 per cent from R263.7 million in 2005/06, to provide for the classical swine fever and avian influenza combating campaigns.
12.7 per cent to R334.7 million in 2007/08. The 40.8 per cent increase in expenditure between 2007/08 and 2008/09 was due to a further allocation of R163.9 million in 2008/09 to conclude the classical swine fever combating campaign.
Overall programme expenditure is expected to decrease at an average annual rate of 3.2 per cent over the medium term.
R million 2007/08 2007/08 2008/09 2008/09 1. Administration 337.5 349.4 333.9 356.1 12.6 368.6 368.6 2. Production and Resources Management 258.3 243.5 233.2 259.1 294.3 553.4 523.4 3. Agriculture Support Services 1 387.2 2 400.0 2 370.0 1 546.0 (70.7) 1 475.3 1 425.3 4. Trade and Agricultural Development 64.8 54.8 60.9 69.1 0.1 69.2 69.2 5. Food Safety and Biosecurity 237.3 426.3 334.7 304.4 166.8 471.2 433.
Total 2 285.0 3 474.1 3 332.8 2 534.7 403.1 2 937.7 2 819.
Current payments Compensation of employees Goods and services Financial transactions in assets and liabilities Transfers and subsidies Provinces and municipalities 925.2 883.6 869.8 1 021.8 (15.5) 1 006.3 998.2 502.5 422.6 - 479.0 404.6 - 448.8 420.8 0.3 585.8 436.0 - (35.7) 20.1 - 550.1 456.1 - 542.0 456.
Departmental agencies and accounts 514.0 518.5 522.2 548.6 64.1 612.7 612.
Universities and technikons 0.2 3.8 3.8 7.6 (1.4) 6.2 6.
Public corporations and private enterprises 250.0 965.8 1 000.1 299.4 (143.8) 155.6 105.
Foreign governments and international organisations 30.9 28.9 32.9 26.6 7.2 33.8 33.
Cultivated assets - 0.5 0.5 - 0.3 0.3 0.
Software and intangible assets 1.1 0.9 1.3 0.6 0.2 0.8 0.
Households receiving bursaries (R million) 8.3 8.3 7.3 5.0 8.7 9.3 9.
R million Conditional grants to provinces 2. Production and Resources Management Ilima / Letsema projects Agricultural starter packs LandCare programme grant: poverty relief and infrastructure development grant Audited outcome 2005/06 2006/07 - - - - 40.0 55.7 2007/08 - - 46.7 Adjusted appropriation 2008/09 96.0 76.0 51.0 Medium-term expenditure estimate 2009/10 2010/11 2011/12 50.0 200.0 400.0 - - - 51.4 54.5 57.8 3. Agriculture Support Services Disaster management Comprehensive agricultural support programme grant 120.0 250.0 45.4 300.0 300.0 415.0 136.8 538.1 60.0 715.4 - 862.4 - 979.
Total 410.0 401.1 761.7 898.0 876.8 1 116.9 1 437.1 1.
New quarantine station, Durban Building Quarantine station Design 15.0 - - 7.9 3.0 12.4 0.
New administrative supportbuilding, Stellenbosch PHQS Building Additional office building Construction 14.5 - - - 5.0 2.
Construction of glass house, Stellenbosch PHQS Construction ofglass houses New glass house at PHQS New request 5.8 - - - - 0.8 3.0 2.0 4. Roodeplaat: New Laboratory Building New laboratory New request 20.0 - - - - - 10.0 10.0 5. Grootfontein AgriculturalDevelopment Institute Building New hostel for students New request 30.6 - - - 5.0 - - 10.6 6. Various repairs andmaintenance projects Repairs tobuildings Upgraded facilities New request 23.3 - 13.1 - 10.1 6.8 11.7 4.8 7. Foot and mouth diseaseborder fence: National Elephantcontrol andnormal fence 20km elephant fence and 20kmnormal fence per year In progress 600.0 25.0 19.7 31.8 18.6 19.0 19.0 19.0 8. Groundwater development Boreholes Sighting and drilling of 100boreholes per year In progress - 15.3 7.1 12.6 13.1 16.0 6.0 6.0 9. Area wide planning: Agricultural infrastructure Farm structures Area wide project plans in progress - - - - 2.6 5.0 5.0 5.0 10. Purchase of Maize Boardbuilding Building Upgraded facilities Finalised - 8.
New office accommodation, Stellenbosch Building Office accommodation Finalised - 8.8 3.
Total 709.2 57.5 43.3 52.3 57.3 62.5 55.2 57.