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Agriculture and Land Reform DEPARTMENT OF AGRICULTURE AND LAND REFORM ANNUAL REPORT 2005/2006 2 Table of Content 1. GENERAL INFORMATION................................................................... 5 1.1 Introduction by the Head of the Department..........................................................5 1.2 Information on the Ministry...................................................................................7 1.3 Mission statement................................................................................................8 1.4 Legislative mandate .............................................................................................8 2. PROGRAMME PERFORMANCE .......................................................... 9 2.1 Voted Funds.........................................................................................................9 2.2 Aim of the Vote.....................................................................................................9 2.3 Summary of programmes......................................................................................9 2.4 Departmental receipts........................................................................................10 2.5 Departmental payments .....................................................................................10 2.6 Programme Performance/Service Delivery Achievements....................................11 2.6.1 Programme 1: Administration ...................................................................11 2.6.2 Programme 2: Sustainable Resource Management....................................13 2.6.3 Programme 3: Farmer Support and Development.......................................23 2.6.4 Programme 4: Veterinary Services .............................................................33 2.6.5 Programme 5: Technology Research and Development Services.................45 2.6.6 Programme 6: Agricultural Economics .......................................................51 2.7 Conditional grants..............................................................................................56 2.8 Capital investment, maintenance and asset management plan ...........................56 3. REPORT OF THE AUDIT COMMITTEE ................................................. 57 4. ANNUAL FINANCIAL STATEMENTS ................................................... 59 5. HUMAN RESOURCE MANAGEMENT............................................... 113 3 Honourable Member of the Executive Council for Agriculture and Land Reform Ms TM Joemat-Pettersson Dear MEC I have the pleasure of presenting the Annual Report of the Department of Agriculture and Land Reform for the period 1 April 2005 to 31 March 2006. Mr. WVD Mothibi Head of Department 4 1. GENERAL INFORMATION 1.1 Introduction by the Head of the Department The Province launched its Growth and Development Strategy in January 2005. The launch gave the Department an opportunity to finalise the incorporation of the agriculture commitments in programmes of the Department for the 2005/2006 financial year. Despite the challenges that confronted the Department during the year under review, the Department generally managed to deliver on its commitments. Highlights Some of the highlights for the year under review include the following: The Provincial Land March and Land Summit formed the main highlights of the year Successfully hosted the National Female Farmer of the Year Awards on 27 August 2005. 3 winners of the awards are from the Province Completed surveillance on general meat safety (i.e. quality of meat inspection, residue in meat. E-coli in meat and water bacteriology) Implementation of the drought scheme Managed to recruit relevant technical expertise Animal disease controlled and monitored Established check points to prevent the spread of classical swine fever into the Province Conducted surveillance on Avian influenza, Foot and Mouth Disease and Porcine Respiratory and Reproduction Syndrome Restructured the management structure of Kalahari Kid Corporation Entered into an agreement with the IDC on the commercialisation of goats in the Province As part of collaboration between commercial farmers, commodity groups and the Department, the Dorperland Club of South Africa and the Calvinia Agricultural Union donated 29 rams to emerging farmers for small stock improvement 15 emerging farmers and 5 mentors were trained in the marketing of agricultural products and traceability. The training was part of the agreement reached with SA Agri-Academy. The enterprises that were selected included: • Vegetable production – Moreletsoa Hydroponics project in Kimberley and Snapshot vegetable garden in Richmond • Grape production – Tumelo Youth Trust in Groblershoop • Flower Bulb projects in Nieuwoudtville • Rooibos tea – Suid Bokkeveld Challenges After thorough assessment of our performance in the previous financial year, inefficiencies in some areas were noted. Chief among these was our performance in the area of conditional grants. One of the causes of the decline in the standard of delivery in these was as a result of: Too many CASP projects in 2005/06 financial year as compared to only 9 in the previous period Delays in the implementation and expenditure (only started to spend in the 2nd quarter) Few field officials to provide after-care and implement new projects at the same time Late delivery of material by the appointed suppliers as well as some suppliers not following specifications Another area that will receive attention during 2006 is financial management, in particular the monitoring of expenditure. This became evident in the March 2006 spike situation which does not demonstrate prudent financial management. 5 We will have to draw experiences from the quarterly review retreats both by the senior management structure and the departmental management committee in strengthening oversight and monitoring expenditure. In order to improve expenditure and increase the pace of delivery on conditional grants the following measures will be put in place during 2006/07 financial year: Outstanding projects for 2005/06 must be completed by June 2006 Ensure that planning, including preparation of tender documents is completed by February of each year Expenditure on projects to be incurred per quarter and according to monthly projections Completion of re-alignment of the departmental organogramme based on clear operational units, line of authority and accountability The Department was able to deliver on most of its commitments as stated in the performance plan and the policy speech of the MEC. I wish to take this opportunity to thank the MEC for her continued inspirational leadership and policy guidance during the year under review. This was especially demonstrated during the preparations for the Land March and Land Summit. I also wish to acknowledge the support and oversight role of the Portfolio Committee on Agriculture and Land Reform. The continued commitment of the staff of the Department to service delivery is highly appreciated. The partnership of all members of the agricultural sector in ensuring the growth and development of emerging farmers and the poorest of the poor is acknowledged. 6 1.2 Information on the Ministry 1. Summary on the work of the Ministry Set priorities for the Department Key areas of focus 2005/2006 financial year: Restructuring of Kalahari Kid as vehicle for the commercialization of the goat programme Key activities 2005/2006 financial year: Hosting of National World Food Day and Female Farmer of the Year Competition 2005 Speeches delivered to the Legislature, NCOP and Select Committee on Finance Replied to questions from the Legislature – both orally and written 2. Institutions reporting to the Executive Authority: None 3. Bills submitted to the legislature during the reporting period None were submitted 4. Ministerial visits abroad Place Date Purpose Visit to Europe 22 – 30 April 2005 a) 11th Year of SA democracy’s celebration in Brussels; addressing EU’s diplomatic corpse and Exhibit province’s products b) Present PGDS to EU’s financial representatives in Luxembourg and Attending other high profile meetings as per invite of the Embassy; e.g. EU Commission briefing on Avian Influenza c) Meeting with Tetrapak in Stockholm to discuss possible partnership with NCPA Saudi Arabia 18 – 22 February 2006 Gulf Food Show – promoting commercialisation of goats and marketing potential 7 1.3 Mission statement The Department of Agriculture & Land Reform will enable the development of the province through increased and sustainable agricultural production, land reform programme, food security, and sustainable use of natural resources 1.4 Legislative mandate The Department of Agriculture & Land Reform is an integral part of the South African Public Service established in terms of section 197 of the Constitution and read with section 7 (1) and 7 (2) of the Public Services Act of 1994. The Department also functions under several legislative mandates as listed hereunder: Table 1: Legislative mandates Title Act on Marketing of Agricultural Products, 1996 (Act 47 of 1996) Agricultural Credit Act, 1966 (Act 28 of 1966) Agricultural Development Fund Act, 1993 (Act No. 175 0f 1993) Agricultural Pests Act, 1983 (Act No.36 of 1983) Agricultural Produce Agents Acts, 1992 (Act No. 12 of 1992) Agricultural Product Standards Act, 1990 (Act No. 119 of 1990) Agricultural Research Act, 1990 (Act No. 86 of 1990) Animal Diseases Act, 1984 (Act 35 of 1984) Animal Identification Act, 2002 Animal Improvement Act, 1998 (Act 62 of 1998) Codex Alimentarius of
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