CEO’s Desk – Closer towards the end of the line

As we wrap the 2021/2022 financial year, it is paramount to take stock of our general performance and some of the other key highlights.

In January 2022, the NAMC adopted the 2021 survey regarding the status of statutory measures in South Africa. The total funds collected through statutory levies by the levy administrators in the 2021 survey amounted to approximately R808.9 million, which is 9.9% higher than the previous survey’s reported levy income of approximately R735.8 million. The figure of R808.9 million is based on the latest audited financial statements of the 19 industries which are collecting statutory measures in term of the Marketing of Agricultural Products Act.

The 2021 survey also shows that approximately R698.2 million was spent on industry functions – an increase of 6.0% compared to the R658.7 million spent in the 2020 survey. Of the total expenditure, approximately 38.5% was spent on research, 8.7% on export promotion/market access, and 9.3% on information. Approximately 21.1% (R147.2 million) was spent on transformation projects.

Although the Coronavirus Disease 2019 or COVID-19 had an impact on all spheres of the South African economy, as well as agriculture, it did not have an impact on the levy income and expenditure for most of the industries in the 2021 survey.

The industries that were impacted by this include the pomegranate industry, where the hard lockdown had a significant impact in the operations in harbours. This resulted in some exporters selling their produce locally and this decreased the budgeted levy income. The wine industry also indicated that COVID-19 had an impact on the levy income in the wine industry.

On the Agricultural Trusts index, we look forward to the Agricultural Trust Annual Workshop which will be convened on 18th March 2022. The Trusts division has received filled questionnaires from the trust administrators and the compilation of the status report has started. The NAMC has also received more than 90% percent of responses from industries in respect of their transformation initiatives. The division liaised with industries regarding the tailor-making of their transformation initiatives to produce/commercialise black farmers. The NAMC hosted the National Dialogue on the AFRICAP (climate change work) that was done under the FANRPAN relationship.

The Agribusiness Development Division in collaboration with the Jozini Local office of the Department of Agriculture, Land Reform and Rural Development (DALRRD), facilitated the market access for a group of 22 goat farmers, located in Jozini, Mkhuze and the surrounding areas under uMkhanyakude District Municipality of the Northern KwaZulu Natal province to supply goats to KwaZulu Natal Qhakaza Goats Association market.  The farmers specialize in farming with indigenous, cross-bred and boar goats.  They collectively have a total of approximately 2800 goats, on about 1493 hectares, with each farmer owning between 35 to 400 goats.  All these farmers are males and the majority are pensioners, this was evident during the stakeholder engagement meeting, where there was no representation of women and youth.

Farmer development support was facilitated with key stakeholders to supporting farmers with dipping and fencing infrastructure, veterinary services, production practices, training and capacity building, land ownership, funding for production as well as establishment and registration of the Jozini Goats Association. This is to ensure that farmers are capacitated in terms of knowledge and resources to produce and supply the identified markets

The NRMDP team in collaboration with ARC conducted onsite assessment of the Custom feeding facilities in Eastern Cape, KwaZulu Natal and North West in order to determine the status quo and collect information required to update the Business plan. The NRMDP future plan is to transfer the programme to ARC for coordination in collaboration with NAMC, OBP and DALRRD.

Closer towards the health of the organisation, we embarked on a process to make it mandatory for the CEO to continuously engage with employees. The next engagement is scheduled in March 2022.

To fill the existing vacancies, in January 2022, we appointed Ms Nokhule Shelembe (Risk and Compliance Manager) and Mr Elvis Nakana (Manager: Smallholder Market Access). We are also in the process of filling in remaining vacant posts.

Download document