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ARC Annual Report 2018/2019 Annual Report 2018/2019 1 2 Agricultural Research Council ABOUT THE ARC VISION Excellence in Agricultural Research and Development. MISSION The Agricultural Research Council is a premier science institution that conducts research with partners, develops human capital and fosters innovation to support and develop the agricultural sector. THE ORGANISATIONAL VALUES OF THE ARC Truth: Incorporates honesty and integrity. The ARC shall conduct its business in a transparent and ethical way towards its employees, stakeholders and shareholders; Accountability: Incorporates responsibility. The ARC shall accept responsibility and accountability with re- spect to employee well-being, occupational health and safety (OHS), environmental sus- tainability and agriculture; Respect: Includes equity, diversity and dignity. The ARC shall conduct its business with respect for our colleagues, clients and stakeholders; Growth: Includes equality, rewards and recognition. The ARC shall ensure equity in terms of race, gender, creed, fair treatment, training and development to all its employees, stakeholders and shareholders; Excellence: Incorporates empowerment and innovation. The ARC strives to conduct research and de- velopment (R&D) in an efficient, effective, professional and accountable manner; and Trust: Includes ethics and transparency. The ARC shall ensure and foster trust among its employ- ees, stakeholders and shareholders. Annual Report 2018/2019 3 THE AGRICULTURAL RESEARCH COUN- CIL L AGRICULTURAL RESEARCH COUNCIL RESEARCH FACILITIES _________________________________________________ The ARC conducts its business at various campuses, including its administrative office, situated at different lo- cations within the country (Bethlehem, Nelspruit, Potchefstroom, Pretoria, Rustenburg and Stellenbosch) and at a number of laboratories, office buildings and research farms throughout the country. Most of the research facilities of the ARC are distributed in accordance with agro-ecological zones, which enables specific focus on particular commodities. 4 Agricultural Research Council THE AGRICULTURAL RESEARCH COUN- CIL L AGRICULTURAL RESEARCH COUNCIL RESEARCH FACILITIES TABLE OF CONTENT _________________________________________________ _____________________________________________ THE AGRICULTURAL RESEARCH COUNCIL LEADERSHIP __________________________________________ 6 ARC 2018/2019 BOARD MEMBERS _________________________________________________________ 7 ORGANOGRAM _________________________________________________________________________ 8 CHAIRPERSON’S OVERVIEW _______________________________________________________________ 9 ARC 2018/2019 EXECUTIVE MANAGEMENT __________________________________________________ 11 MESSAGE FROM THE PRESIDENT AND CEO OF ARC ____________________________________________ 12 EXECUTIVE REPORT _____________________________________________________________________ 20 CHIEF FINANCIAL OFFICER’S REVIEW _______________________________________________________ 24 STRATEGIC GOALS AND ORGANISATIONAL ACHIEVEMENTS ______________________________________ 29 OVERVIEW AND HIGHLIGHTS OF CROP SCIENCES ______________________________________________ 30 OVERVIEW AND HIGHLIGHTS OF ANIMAL SCIENCES ___________________________________________ 52 OVERVIEW AND HIGHLIGHTS OF RESEARCH AND INNOVATION SYSTEMS ___________________________ 63 OVERVIEW AND HIGHLIGHTS OF IMPACT AND PARTNERSHIPS ____________________________________ 72 HUMAN RESOURCES AND LEGAL SERVICES ___________________________________________________ 76 INFORMATION COMMUNICATION TECHNOLOGY AND INFRASTRUCTURE ___________________________ 82 KNOWLEDGE DISSEMINATION _____________________________________________________________ 86 CORPORATE GOVERNANCE _______________________________________________________________ 119 AUDIT AND RISK COMMITTEE REPORT _______________________________________________________ 123 REPORT OF AUDITOR-GENERAL ____________________________________________________________ 127 STATEMENT OF FINANCIAL PERFORMANCE ___________________________________________________ 138 ARC PERFORMANCE 2018/19 ______________________________________________________________ 186 Annual Report 2018/2019 5 THE AGRICULTURAL RESEARCH COUNCIL LEADERSHIP __________________ he Agricultural Research Council is led at the top by a T Council (Board) of 16 capable and competent members who oversee governance and performance of the organisation. Under the Council is the Executive Management led by the Chief Executive Officer. The Executive Management is responsible for the overall operations and management of the Agricultural Research Council including but not limited, and in consul- tation with the ARC Council, to crafting the strategic direction to deliver on the mandate of the organisation as derived from the Agricultural Research Act, 1990 (Act No. 86 of 1990, as amended by Act 27 of 2001). 6 Agricultural Research Council ARC 2018/2019 BOARD MEMBERS ________________________________________________ Annual Report 2018/2019 7 ORGANOGRAM _________________________________________ 8 Agricultural Research Council CHAIRPERSON’S OVERVIEW 2018/19 ______________________________________________ our international collaborations were also meaningful to the ARC and agricultural science in South Africa. The ARC has in the past years been affected by dwindling funding to perform its core research mandate. Also, the dif- ficulty of the Department of Agriculture Forestry and Fish- eries (DAFF) to pay the debt owed to the ARC must never be underestimated. However, this did not discourage the organisation in performing to its optimal best. Regardless of the financial challenges faced by the organisation, the ARC has worked well with our stakeholders and commodity in- dustries. This has been exemplified by the continuous de- velopment of new cultivars, together with other partners, which have made the ARC a premium and global player as a research organisation in the agricultural sector. The ARC provided scientific solutions to support rural de- velopment and agrarian reform as priority programmes of the South African government, primarily through DAFF and the Department of Rural Development and Land Reform (DRDLR). The ARC made contributions to related issues that are facing South African agriculture, in particular, the debates around land expropriation without compensation. The emphasis by the ARC was on bringing about equity in agricultural participation by all South Africans, the preven- Prof. Sibusiso Vil-Nkomo tion of privatising social goods, reducing the cost of research Chairperson of the ARC Council so that emerging farmers must also benefit, etc. A properly established and well financed institution that The popular discussions on the 4th Industrial Revolution focuses on agricultural research is bound to contribute to (4IR) were discussed by the ARC. Of relevance, the ARC has the scientific endeavours, economic growth, development, technologies that could provide targeted producer support self-reliance and the competitiveness of the nation. Such an to achieve the vision of agrarian transformation and vibrant, institution attracts the best minds, continues to develop its equitable and sustainable rural communities. Such technol- human capital and places an emphasis on a conducive envi- ogies create a competitive advantage for the ARC as well as ronment for its staff to be productive and respected nation- South Africa in the developing and emerging market econo- ally and globally. These have been the objectives of the Ag- mies. In brief, entering the space of the 4IR demands inven- ricultural Research Council (ARC) in the year under review. tions and innovations by the ARC. Agriculture remains a commanding height for South Africa’s existence. A strong agricultural sector plays a crucial role in The following are general but important other developments the development of a stable country and will continue to within the ARC. Firstly, the organization has entered into create direct and indirect job opportunities for all South partnerships for the assessment of Proactive Land Acquisi- Africans. While the country’s economy continues to strug- tion Strategy (PLAS) farms, and recommendations are that gle, the ARC must play its important strategic role by con- the farms should be rehabilitated for sustainable agricul- sistently providing research that enables the country to be ture. Secondly, the ARC scientists developed a new vaccine resilient and ultimately stable. for heartwater. This vaccine is unique as it doesn’t require use of antibiotics subsequent to administration and provides As Chairperson of the ARC, let me emphasize the fact that significant protection based on animal clinical trials. Thirdly, conducting business under the current circumstances has researchers at the Animal Production Campus used whole been challenging. As a Council, we continued to drive the genome sequencing (WGS) for analyses of samples of ani- ARC to be an exceptional organisation, free from corruption mals from three indigenous cattle breeds (Afrikaner, Drak- and usage of its best brainpower to be a leader in the agri- ensberger and Nguni) to identify distinguishing and unique cultural scientific world. In 2018- 2019 we made sure that Annual Report 2018/2019 9 characteristics. Fourthly, one of the objectives of the ARC scientific achievements in this sector and a contribution to is to grow and develop the agricultural sector that creates the economic competitiveness of the country. This is long new markets, employment, business opportunities
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