portfolio committee portfolio committee on agriculture and on agriculture and

land affairs:land affairs:

5 april 20055 april 2005

strategy and budget strategy and budget 2005/62005/6

PPECBcreating confidence in southern african fresh producecreating confidence in southern african fresh produce

agendaagenda“ppecb in transformation”“ppecb in transformation”

introduction2005/6 strategy objectives/outcomesstrategic directions and business planalignment with DOA programmesblack economic empowermentbudgetquestions

ppecb 2005-2006ppecb 2005-2006 ““transforming for sustainability”transforming for sustainability”

creating confidence,

closing the gap with stakeholder expectations,

implementing risk based assessment,

through an

integrated food safety and quality management system,

whilst transferring skills.

transforming means …organisation renewal and people diversitylegislative renewalsystemic risk assessmentsystems and process redesign

sustainability means …growth in international market accesscreating employment, equity and wealthinternational competitivenesslong-term profitability

confidence means …sustained access to difficult markets by guaranteeing

people competencyprocess efficiency and product safety and qualitycapacity to deliver on requirements

sa perishablesa perishable products export products export industry industry

ppecb’s role - legislative mandate ppecb’s role - legislative mandate act 9 of 1983 – ppecb act (outdated)

provides for control and management of south african perishable products export processes

act 119 of 1990 – designated assignee i.t.o. agricultural products standards act

ensures export food safety and quality standards of agricultural products are complied with.

act 1 of 1999 – pfma act

regulates financial management and good governance in government and public entities

ppecb strategy : 2004-2006 ppecb strategy : 2004-2006 (present board)(present board)

…ppecb transforming, repositioning as sa food safety agency…

“building with confidence”

purpose statementpurpose statementppecb instills confidence in food by impartially performing food safety & quality assurance services

ppecb outcomes:2004-2006ppecb outcomes:2004-2006

confidence in impartial services

minimised risk in supply chain

custodian of industry information

customised services on demand

differentiated pricing of services

integrated sa food safety policy and legislation (“new food control authority”)

sa food safety agency (“transformed ppecb”)

international expansion (africa/trading countries)

contextual environmental issuescontextual environmental issues

overproduction

integration & delivery

agricultural “best practices” challenges

fragmented national food policy

increasing international legislation

harmonisation/integration of standards

call for integrated legislation in sa

high cost of compliance to various standards

national drought conditions

transformation

exchange rate pressure

higher consumer demands

reduced costs

revision of legislation

product quality

increased demand for information

integration of systems

food safety

efficiencies

skills demand

response times

global competitiveness

industry driversenvironment condition

envi

ron

men

tp

olit

ical

eco

no

mic

leg

isla

tio

n

operating model and value streamsoperating model and value streams

stakeholder requirement

statutory standards

industry standards

customised standards

value stream deliverable

inspection/audit servicessupply (cold) chain servicesproduct category “partnerships”

financial servicesinformation/logistics servicescommunication services

specialised services (solutions) training/development servicescertification services

value streams - programmesvalue streams - programmes

inspections

audits

cold chain logistics

product categories

specialised solutions

analytical

development

sa pip

food safety

certification

conferencing

finance & management accounting

information services

secretariat

human resources

•product quality inspection & food

safety audit services

•customised services

•finance & information

•support services

programmesvalue streams

our strategic direction & positioningour strategic direction & positioning

reducing risks in the supply chain

developing an internationally recognised integrated food safety and quality management system according to stakeholder requirements

implementing it through a risk analysis methodology

representative staff compliment of qualified technologists

improving speed and service delivery, reducing costs

create confidence and ensure sustainability in the south african fresh produce markets by:

ppecb strategic programmes

black economic empowerment

risk management system

food safety

stakeholder management

industry information

ISO 17020

alignment with DoA alignment with DoA programme no 7programme no 7:: regulatory services regulatory services

compliance with legislation: ppecb/aps/pfma acts/ eu1148food safety strategy: assignee for ofs/ development ifsqmscommunication and national coordination: national forumsharmonising legislation, codes and guidelines: oecd/ un-eceprogressive service standards that enhance credibility: iso17020/ export protocolsresources for maximum effectiveness: restructured operationstechnology to accelerate information flow: standardisation of codes/ edi/ electronic export certification standard-setting: specialised industry programmes partnerships with industry: sa-pip/ sa agri academy/ sa fip/ fsa training and skills development: experiential training programme/ career pathway/ bursary programme

broad based black economic empowermentbroad based black economic empowerment

dimensions:

management

employment equity

skills development

enterprise development

procurement

capacity building

strategies:analysis of potentialredesign organisation to create opportunitiesprogramme managerssuccession planningleadership developmentpeople development forumemployment equity statsorganisation renewalrecruitment focuslegislative complianceinternal trainingexperiential learning programmebursary programmedeveloping portfolioprogrammes: pipall programmes to reflect bee as priorityprocurement managerfiltering suppliersreporting at executive leveldevelop suppliers

skills development

broad based black economic empowermentbroad based black economic empowerment

dimensions:

management

employment equity

skills development

enterprise development

procurement

capacity building

status:•50 employees assessed (R100 000)•tender process for training•2004-2005african -1%asian +1%coloured +3%white -48%

YTD YTD african +4% 95% black asian 0% technologistcoloured +4% appointedwhite -7%

internal bursary 10: R52 000external bursary 2004: 20: R480 000

2005: 15: R432 000SDA-2004: 85% grants received

SA PIP programme programme managers: developing sector portfolio

preferential procurement policyHDI 42,11%

MOU: SAAA & SAMTRA

ppecb company profile

Company Profile

2412

31

152

414

4536

13

41

154

101

21

54

African Asian Coloured White African Asian Coloured White

male female

2004

2005

95% of new recruits to operational positions comply with employment equity plan

PPECBcreating confidence in southern african fresh producecreating confidence in southern african fresh produce

ppecb budget 2005-06ppecb budget 2005-06

objectives

development of a risk management system

building and retaining skills & capacity

building relationships with stakeholders

budget overview•net result break-even

•total expenditure R104m

•% increase in expenditure 11,9%

•% increase in expenses excl. employment and programme expenditure

-2,9%

•% annual adjustment to total payroll 6%

•programme expenditure R8,2m

•average increase in levies for 6 months 11%

activity overviewemployees 353

operational 245

offices 42

pallets 2,2 million

service points 1 452

accounts 3 273

hours 418 966

kilometres 3,9 million

relief duty 21 000 man days

budget 2006budget 2006

’06

bud

’05

est∆%

income R104m R93m 12%

expense R104m R92m 13%

shortfall R0 R0,9m -

R 0

R 20,000

R 40,000

R 60,000

R 80,000

R 100,000

R 120,000

R'00

0

est '05 bud '06

income expense

income varianceR’000

volume increase R3 016

levy increase R4 120

food safety R1 440

other statutory services R1 150

SA PIP R246

customised services R1 708

sundry income R290

income ∆ R11 970

budget structure

R’000 bud LY ∆%

expense 86 814 82 735 5%

program 8 220 2 557

R’000 bud LY ∆%

expense 1 241 1 033 20%

R’000 bud LY ∆%

expense 7 766 6 681 16%

ppecbppecb

statutorystatutory

customisedcustomised

PIPPIP

R’000 bud LY ∆%

expense 104 041 93 006 12%

expenditureexpenditure

71%

2%

27%

human capital training otherbudget

R’000% of total

∆%

LY

human capital R74 596 72% 14%

activity R9 590 9% 11%

operational R5 331 5% 14%

technology R4 874 5% 13%

administrative R5 820 6% -4%

outsourced R693 1% -54%

training R1 845 2% 8%

depreciation R1 292 1% 27%

total expenses R104 041 100 12%

strategic programmesF2006

budget

R’000

F2005

estimate

R’000

risk management system R1 084 R0

official food safety R1 432 R587

programme management & stakeholder relations

R4 140 R1 970

information & statistics R875 R0

business processes: iso 17020 R689 R689

total investment R8 220 R2 557

benchmark: hourly rate

R 0

R 200

R 400

R 600

R 800

R 1,000

R 1,200

R 1,400

R 1,600

R 1,800

R 2,000

rand/hour R 290 R 313 R 1,210 R 595 R 1,746 R 1,145

subsidy R 397

pre-tariff R 268

ppecb sa (sgs) uk (fsl) aus (aqis)uk (techno

fresh)

kualitaits controle burea

note: excl travel & incidentals

1 pound = R12,0106 1 euro = R8,12374 1 $ aus = R4,79836

customised servicesR’000 budget LY ∆%

certifications R3 204 R2 381 35%

analytical services

R2 758 R2 770 -

specialised services

R1 261 R1 086 16%

overberg conference centre

R543 R444 22%

total expenditure

R7 766 R6 681 16%

total income R8 655 R6 936 25%

contribution R888 R256

R 0

R 500

R 1,000

R 1,500

R 2,000

R 2,500

R 3,000

R 3,500

income expense

agency: SA PIP

budget

R’000

expense R1 241

ppecb admin fee R1 362

variance R121

budget achievementsbudget achievements

build to support global confidence in

SA produce

focus

systematically manage risk

build capacity

build relations

improve efficiencies

BEE: procurement & employment

ppecb 2005-2006ppecb 2005-2006 ““transforming for sustainability”transforming for sustainability”

creating confidence,

closing the gap with stakeholder expectations,

implementing risk based assessment, through an

integrated food safety and quality management

system,

whilst transferring skills

CERTIFIED TO ISO 9001