AGRICULTURAL RESEARCH COUNCIL
STRATEGIC PLAN AND ANNUAL
PERFORMANCE PLAN 2021/22
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MEDIUM TERM STRATEGIC FOCUS PRIORITIES FOR 2019 – 2024
MTSF PRIORITIES FOR ARC:
a) Priority 1: A Capable, Ethical and Developmental
State
b) Priority 2: Economic Transformation and Job
Creation
c) Priority 3: Education, Skills and Health
d) Priority 5: Spatial Integration, Human Settlements
and Local Government
e) Priority 7: A better Africa and World
Cross Cutting Focus Areas:
Women
Youth
People with Disabilities
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ARC MTSF ALIGNED OUTCOMES FOR 2019 – 2024___________________________________________________
1. Increase agricultural production and productivity
2. Sustainable ecosystems and natural resources
3. Improved nutritional value, quality and safety of agricultural products
4. A skilled, capable agriculture sector with innovation, knowledge and
technologies
5. Enhanced resilience of agriculture
6. A high performing and sustainable organization
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ARC ROLE/PURPOSE: ALIGNMENT TO MTSF PRIORITIES __________________________________________________
1. Promote sustainability and equitable economic participation in the
agricultural sector
2. Promote agricultural development and growth related industries
3. Facilitate sector skills development and knowledge management
4. Facilitate and ensure natural resource conservation
5. Promote national food and nutrition security; and,
6. Contribute to improved health and better quality of life
ARC MANDATE, VISION & MISSION _______________________________________________
MANDATE
In terms of the Agricultural Research Act, to promote the agricultural
and related sectors through Research, Development and Technology Transfer
VISION
Excellence in research and innovation for sustainable agricultural systems and economic development
MISSION
To conduct research, develop partnerships and human capital,
to foster innovation for a sustainable agriculture sector
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ARC VALUES
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DESIRED IMPACT
SUSTAINABLE AGRICULTURAL SYSTEM FOR AGRARIAN TRANSFORMATION, FOOD AND
NUTRITION SECURITY
DESIRED OUTCOMES AND INTERVENTIONS
Outcome 1
Increased agricultural
production and productivity
Outcome 2
Sustainable ecosystems
and natural resources
Outcome 3
Improved nutritional value, quality
and safety of agricultural products
Outcome 4
A skilled and capable
agriculture sector
Outcome 5
Enhanced resilience of
agriculture
Crops with improved
characteristics Biodiversity Management Product Development Skills Development Climate Resilient Solutions
Diagnostic and Analytical
Services Soil Health Assessment Broadening the Food Base Technology TransferDiagnostic and Analytical
Services
Weed ControlProcessing, preservation, and
storage methods
Smallholder Farmer
Support
Low carbon technologies Knowledge Generated
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OUTCOME 1: Increased agricultural production and productivity
RESPONSIBLE BUSINESS
DIVISIONOUTPUT OUTPUT INDICATORS
MEDIUM-TERM TARGETS
2021/22 2022/23 2023/24
Crop Sciences
Crop production
technologies
developed and
information
dissemination
Number of cultivars registered 6 11 10
Number of field trials 271 249 235
Number of technical reports 170 164 189
Number of cultivar evaluations 40 40 40
Animal SciencesAnimal improvement
services
Number of farmers participating in each of
the animal improvement schemes210 220 230
Number of technical reports 900 1000 1100
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2021/22 PLANS TO SUPPORT INCREASED AGRICULTURAL PRODUCTION AND PRODUCTIVITY OF GRAINS
• During 2021/22 financial year, the ARC will continue to offer scientific solutions that address
deficiencies in quality of produce, inconsistent volumes, and transformation of the grains and oilseed
industry.
• The ARC will contribute to South Africa’s self-sufficiency in wheat by breeding high performing wheat
cultivars for all wheat production areas in South Africa. Cultivar evaluation trials will be conducted for all
wheat producing areas in order to guide and inform planting decisions by farmers.
• The OR Tambo District soya bean project is a key interventions where ARC will provide support
towards planning and production of soya bean on 1 500 hectares at the beginning, with a view to
increase to 20 000 hectares for the benefit of 11 000 households in Lusikisiki and Flagstaff. This project
will result in the production of 3 900 tons of soya bean initially, which will increase to 60 000 tons for
agro-processing, using four (4) ARC non-GMO cultivars.
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INCREASED AGRICULTURAL PRODUCTION AND PRODUCTIVITY
ARC has developed a mobile app to assist dairy
farmers with day-to-day herd management to improve
productivity and profitability
The app is known as the Livestock Manager
It is linked to the National Animal Improvement
Database (locally called the Integrated Registration and
Genetic Information System - INTERGIS)
Livestock Manager is used by farmers at different level
of development or scale of production
Smallholder, emerging and commercial dairy farmers
The app has been successfully deployed in South
Africa
It is used by more than 150 farmers country-wide
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OUTCOME 2: Sustainable Ecosystems and Natural Resources
RESPONSIBLE BUSINESS
DIVISIONOUTPUT OUTPUT INDICATORS
MEDIUM-TERM TARGETS
2021/22 2022/23 2023/24
Crop Sciences
RIS
Natural Resource
Management
Number of technical reports 77 78 78
Number of field trials 64 68 64
Number of services rendered 500 582 595
Number of biological control solutions
developed1 1 1
Soil and Water Science
Number of samples analysed for soil
health and water quality95 155 160
Number of scientific solutions 1 0 0
Number of technical reports 13 17 21
Number of services rendered 305 405 455
Weed ScienceNumber of technical reports 12 12 12
Number of services rendered 5 0 0
Ecosystem servicesNumber of technical reports 1 2 3
Number of services rendered 2 2 2
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OUTCOME 2: SUSTAINABLE ECOSYSTEMS AND NATURAL RESOURCES
Fall Armyworm
Migration Links to Desertification, Land Degradation and Drought
Disasters can be classified into forms which are
geophysical (e.g.. land degradation and
desertification) and climatological such as
extreme temperature, drought, wild fire,
meteorological ( cyclones and storms)
Land degradation-reduction or loss in the capacity
of soil and land resources to produce food, fodder
and other ecosystems services, and
desertification is land degradation that occurs in
drylands
It is commonly acknowledged in scientific
literature that “extreme weather and climate or
slow-onset events may lead to increased
displacement” (IPCC 2019).
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OUTCOME 2: SUSTAINABLE ECOSYSTEMS AND NATURAL RESOURCES
• Biosecurity – Plant Health Research & Services
• Biological Control of Alien Invasive Species
• Water Use & Soil Analysis for Crop Suitability
• Land Use Planning – PLAS lessons
• Agriculture Master Plans
• Early Warning for Climate Risk
Squash infected
Fall Armyworm
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OUTCOME 3: Improved Nutritional Value, Quality and Safety
RESPONSIBLE BUSINESS
DIVISIONOUTPUT OUTPUT INDICATORS
MEDIUM-TERM TARGETS
2021/22 2022/23 2023/24
Crop Sciences
Broadening the food base
Number of cultivars registered 0 4 2
Number of field trials 2 2 2
Number of technical reports 98 99 94
Number of cultivar evaluations 60 64 54
Number of new products
developed0 6 6
Number of services rendered 14 15 18
Post-harvest handling and
agro-processing
Number of cultivars developed
with improved shelf life1 1 1
Number of new post-harvest
solutions developed 2 1 1
Number of solutions for
controlled atmosphere0 1 1
Number of services rendered 47 47 47
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OUTCOME 3: PRODUCT DEVELOPMENT, IMPROVED NUTRITIONAL VALUE, AND SAFETY AND QUALITY OF AGRICULTURAL PRODUCTS - STATE OF THE ART
WINE RESEARCH & COMMERCIAL PRODUCTION FACILITY
Rooibos Tea Research and Processing;
Fruit agro processing into Juice and Jam.
Breeding superior and adaptable cultivars
Addressing malnutrition – Orange Flesh Sweet
Potato rich in Vitamin A (informal market & school
gardens)
Commercial niche markets
Very high root yield; Long storability
Smooth appearance, low oxidation
Crop protection research: nematode, bacterial wilt
Maintenance of disease-indexed material
Agroprocessing and enterprises development
Farmer support and training
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OUTCOME 4: A Skilled & Capable Agriculture Sector Thru Innovation,
Knowledge Management & Technologies
RESPONSIBLE
BUSINESS DIVISIONOUTPUT OUTPUT INDICATORS
MEDIUM-TERM TARGETS
2021/22 2022/23 2023/24
Crop Sciences
Animal Sciences
RIS
Impact and Partnerships
Skills development
Number of people trained 328 382 406
Number of Postgraduate students supported
by ARC23 40 40
Technology Transfer
Number of technologies/IP
registered/developed3 4 3
Number of enterprises supported 3 3 3
Number of technologies transferred under
license30 30 30
Smallholder farmer
supported
Number of farmers trained 765 870 954
Number of technical assessments for
commercial readiness30 40 50
Number of smallholder farmers participating in
KyD4000 4500 5000
Number of services rendered 129 124 131
Number of farmer field days 3 4 3
Farmer support
Number of farm assessments 30 35 40
Number of farmers supported 154 238 283
Number of farmer field days 68 22 53
Number of services rendered 85 93 99
Knowledge generated
and dissemination
Number of scientific publications 234 245 253
Number of popular publications 204 189 224
Number of public awareness events 72 198 200
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OUTCOME 4: A Skilled and Capable Agriculture Sector through Innovation & Knowledge Management
Kaonafatso ya Dikgomo (KyD) Scheme:The following technical services will be provided to farmers:
• Animal identification to combat stock theft & possible traceability;
• Animal recording and improvement to improve quality of livestock;
• Rangeland planning and management to prevent overgrazing;
• Alternative feeding strategies to mitigate against drought and climate change;
• Animal health services.
The ARC training of 625 National Rural Youth Service Corps Programme (NARYSEC) on behalf of DALRRD as
part of the Comprehensive Rural Development Programme (CRDP)
Participants/Trainees from Ethekwini (KZN), Waterberg (Limpopo), OR Tambo (Eastern Cape) as part of the
District Development Model (DDM)
Training is various aspects of agriculture (production, business skills, social facilitation, etc.)
513 youths have been trained to date
The ARC is collaborating with agricultural colleges in the three (3) provinces in delivering the training and for
hands-on training:
Cedara College in KwaZulu-Natal;
Tompie Seleke College in Lompopo; and
Fort Cox College in the Eastern Cape
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AGRICULTURE SKILLS THROUGH SCHOOL GARDENS
Vegetable school gardens in two schools (Bula Dikgoro and Mahlasedi
Masana public primary schools) in Mamelodi East, Pretoria, Gauteng Province.
The total number of learners involved in the school feeding programmes of the
two schools were 1182 and 1753, respectively. Aim: To establish sustainable and
productive vegetable gardens in the schools, to improve access to vegetables.
The project identified that food garden programmes should involve a component
on the training of educators and garden personnel, provision of gardening
equipment and technical advice.
AgriSETA accredited vegetable production training to learners in school
gardens. New biofortified crops (e.g. orange-fleshed sweet potatoes), as well as
healthy new crops (e.g. moringa), were introduced to promote consumption in
the schools and the community. Open field vegetable production systems were
supplemented with vegetable tunnel production and bag production systems to
improve vegetable accessibility, pest and disease management and to optimum
resource utilisation.
The project will be rolled-out to other schools in Gauteng and other
Provinces during 2021/22, and the funders has expressed interest to fund the
roll-out. It is important for schools to encourage children to report at home what
they are doing at school, invite families to visit the gardens, create model
gardens and distribute seedlings in the community.
Figure 4A: In situ rainwater harvesting technique implemented at
Bula Dikgoro and Mahlasedi Masana primary schools.
Figure 4B: Supply of fresh leafy vegetables to the kitchen and
learners eating at the Bula Dikgoro primary school.
Figure 4C Climate-smart, low-
cost hydroponic production
system for the vertical cultivation
of vegetables and deficit
irrigation at a primary school in
Mamelodi, Gauteng Province.
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OUTCOME 5: Enhanced Resilience of Agriculture
RESPONSIBLE
BUSINESS DIVISIONOUTPUT OUTPUT INDICATORS
MEDIUM-TERM TARGETS
2021/22 2022/23 2023/24
Crop Sciences
Animal Sciences
RIS
Climate resilient
solutions
Number of climate resilient solutions adopted 3 3 3
Number of drought tolerant cultivars 1 2 2
Number of services rendered 5 8 8
Number of technical reports 10 13 11
Number of field trials 95 105 104
Number of tools for measuring climate change 281 321 321
Vaccine production
Number of blood vaccine doses produced 235 000 235 000 235 000
Number of different types of vaccines
developed0 0 0
Number of FMD vaccine doses produced 0 0 0
Number of vaccine clinical trials 0 0 0
Laboratory services
Number of tests performed for animal health 15 006 15 008 16 010
Number of tests performed for food and feed 2 255 2 355 2 460
Number of services rendered 150 200 200
Number of technical reports 7 6 6
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OUTCOME 5: Enhanced Resilience of Agriculture
• Vaccines are the most cost-effective of controlling livestock diseases – difficult to develop;
• Most vaccines perform poorly especially in the African rural setting that lacks a cold chain;
• Challenge in preventative potential of animal vaccines in Africa is maintaining
an effective cold chain;
• FMD Production Facility;
• Heartwater Vaccine – transfer to OBP.
Climate Change and Adaptation
• Monitoring of Climate patterns;
• Crop Suitability and Prediction
Models;
• Drought Tolerant Crops (e.g. Maize);
• Water Use Efficiency.
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CLIMATE CHANGE: EARLY WARNING SYSTEM FOR RIFT VALLEY FEVER Understanding impact of Climate Change on distribution of pests and diseases
• An increase in temperature will not only increase vector populations (mosquitoes, midges) but will also shorten both the time span between blood meals (increased biting rate) and the intrinsic incubation period by increasing the speed of virus development within the insect.
• Early warning systems for disease outbreaks could provide short- and long-term decision support for risk management and production of vaccines and diagnostic kits. A RVF early warning system was developed in a geographical information system (GIS) environment by retrospective analysis of rainfall and rainfall-associated climate variables in target areas during the 2008-2011 RVF epidemics in South Africa. This model correctly identified the risk in nearly 70% of instances at least a month before an outbreak.
OUTCOME 6: PERFORMING & SUSTAINABLE ORGANISATION
HUMAN RESOURCES: EFFECTIVE MANAGEMENT OF ARC ASSETS – PEOPLE
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OUTCOME 6: Human Resources – Key Areas
ORGANISATIONAL CULTURE (assessing the current organizational climate, developing feedback
mechanisms for employees on the achievement of the desired culture, designing & delivering activities to
embed the desired culture into the organization)
EMPLOYER BRAND (initiatives aimed at improving the ARC reputation and brand both with its employees
and within the sector)
EMPLOYEE ENGAGEMENT (consulting and negotiating with employees & developing initiatives that will
result in cost reduction, loyal and motivated employees)
CHANGE MANAGEMENT (initiatives assisting individuals or teams to shift from a current state/situation to a
desired state during the current unprecedented times of COVID 19 and technological adaptations)
RESEARCH CAPACITY DEVELOPMENT (initiatives to grow and develop research capacity within the ARC,
with advanced core and behavioral skills to grow the ARC business)
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OUTCOME 6: Human Resources – Demographics
ARC CAPACITY PER RACE ARC CAPACITY PER GENDER
52,98%
45,71%
1,30%
Male Female including Female Foreigners Male Foreigners
71,51%
9,71%
0,46%16,55%
1,76%
African Coloured Indian White Foreigners
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OUTCOME 6: Human Resources – Demographics
ARC SCIENTIFIC CAPACITY PER RACE ARC SCIENTIFIC CAPACITY PER GENDER
52,46%
4,47%
1,19%
36,96%
4,92%
African Coloured Indian White Foreigners
43,37%
52,76%
3,87%
Male Female including Female Foreigners Male Foreigners
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OUTCOME 6: Human Resources – Demographics
PROFESSIONAL DEVELOPMENT PROGRAMME – ARC NRF FUNDED
PROFESSIONAL DEVELOPMENT PROGRAMME – DSI IPBS FUNDED
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Post-Doctoral
PhD
Male Female
0 2 4 6 8 10 12 14
PhD
D Tech
MSc
Female Male
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OUTCOME 6: Human Resources – Demographics
EMPLOYEE DEVELOPMENT - FORMAL TRAINING
0 20 40 60 80 100 120 140 160 180 200
PhD
MSc
BSc Hons
BSc
D Tech
M Tech
B Tech
NDipl
MBA/MBL/MPHIL/MCom
N Dipl Public Relations
B Degree
Prof Certificate
Male Female
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OUTCOME 6: Human Resources – Vacancies
0 500 1000 1500 2000 2500
Crops
Animals
SCW&E
I&P
Corporate
TOTAL
Headcount
2019/2020 Vacancies 2019/2020 Headcount 2019/2020 Approved Posts
FY2021/22 BUDGETS
OUTCOME 6: PERFORMING &
SUSTAINABLE ORGANISATION
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TABLE OF CONTENTS
1. Budget Assumptions
2. ARC Funding Sources
3. Total Expenditure Trend
4. Financial Position Overview
5. Key Performance Indicators / Targets – FY2022 to FY2024
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1. BUDGET ASSUMPTIONS
The following assumptions were applied, as far as possible, during the Budgeting process for FY2021/22 – FY2023/24
A Zero Budgeting Approach was used
Parliamentary Grant reduction of 4% year – on – year (FY2021 vs FY2022)
Parliamentary Grant from DSI assumed to be Zero
External Income guideline 8 – 20% [not achieved due to current economic climate]
Other Income – Rental income: the lesser of 10% annual increase / per lease agreement [not
achieved under current market conditions]
Personnel costs – 0% salary increases.
Targeted Inflation used for budget purposes 4.2%
Training Costs (formal and Informal) = 6% of Salary Costs
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2. ARC FUNDING SOURCES
0
200
400
600
800
1000
1200
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021(forecast)
2022 2023 2024
R' 0
00
ARC Funding Overview - (2010 - 2024)
Operational PG - DALRRD Operational PG - DSI ECSP Projects - Treasury Baseline Capex - DALRRD External Income Other Income
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2. ARC FUNDING SOURCES (continued)
The PG Funding averages R1.1 billion per annum and remains the major revenue source for the ARC.
The Provision of National Services funding is dedicated to the following programmes namely: Climate Monitoring; SADC
Activities; Intergis; Crop forecasting and Diagnostic services.
The Maintenance of National Assets funding is received from the Departments of Agriculture (DALRRD) as well Science &
Innovation (DSI). It is earmarked for the following: Gene banks; National collections; inventories; Databanks; Surveys and
Information system and other national public goods assets.
External Income sources are from: Revenue Services (Breeding. Agronomy. Disease Control. Research Materials);
Diagnostics services (Analytical services. Disease diagnostics.); Advisory Services (Consulting services. Training.
Agricultural Engineering Services.); Farm Products (Consumable products)
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2. ARC FUNDING SOURCES (continued)
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2. ARC FUNDING SOURCES (continued)
Key ratios (Funding Sources)
FY2020/21
(forecast) FY2021/22 FY2022/23 FY2023/24
Operational PG / Total Funding 65% 60% 60% 60%
External Income /Total Funding 22% 24% 24% 24%
Other Income / Total Funding 5% 8% 8% 8%
Capex / Total Funding 8% 7% 7% 7%
Funding Overview – MTEF (FY2022 – FY2024)
No DSI PG from FY2021 onwards
Capex PG averages R111 million per annum
External Income R378 million per annum
Other Income averages R127 million per annum
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3. TOTAL EXPENDITURE TREND
490 511 518612
685 685768 755
817 820 795699
807 807 807
265 282 312 350
491 491 509 490 508 472358
471 552 577 603
773 811 854
1015
1227
1344 1317 12871346 1336
1 235 1 170
1 359 1 384 1 409
0
200
400
600
800
1000
1200
1400
1600
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (forecast)
2022 2023 2024
R' 000
OPEX TREND (2010 - 2024)
Personnel Costs Operating costs Total OPEX
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3. OPERATING EXPENDITURE RATIOS
Key Ratios
FY2020/21
(forecast) FY2021/22 FY2022/23 FY2023/24
Personnel costs as % Operational PG 81% 90% 86% 82%
Personnel costs as % Total OPEX 60% 59% 58% 57%
Personnel Costs remains a significant cost driver for the ARC
Zero % salary increase
Vacancies budgeted at R63 million (refer to next slide)
6% Training Costs (Formal and Informal) budgeted at R43.8 million – to improve on skills development
ARC Sustainability and Financial Turnaround plan to be implemented to reduce the Personnel Costs as %
Operational PG to 60%
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4. OUTCOME 6 (Continued): FINANCIAL POSITION OVERVIEW
402
1 76
3
314
249
1 60
2
591
1 92
1
374
384
1 75
4
669
2 01
0
350 44
8
1 88
1
554
2 09
2
327
330
1 98
9
374
2 19
2
356
152
2 05
8
C U R R E N T AS S E TS N O N - C U R R E N T AS S E TS
C U R R E N T L I AB I L I T I E S
N O N - C U R R E N T L I AB I L I T I E S
N E T AS S E TS V AL U E
R' M
ILLI
ON
FINANCIAL POSITION OVERVIEW
Audited 2019/20 Forecast 2020/21 Budgeted 2021/22 2022/23 2023/24
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ARC SUSTAINABILITY FOCUS AREAS
Governance and Financial Management
Revenue sources composition and
optimization (organic growth)
Growth through acquisitions and
partnerships
Improve efficiencies –resulting in cost
reduction and value for money
Prioritization of Capex PG to key strategic projects
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FINANCIAL SUSTAINABILITY AND TURNAROUND____________________________________________________
The key initiatives the ARC will be embarking on during the next 5 years are as follows:
1. Optimisation of the personnel costs, with a target to reduce the baseline by R320 million;
2. Consolidation of the Pretoria Campuses, from 8 to 3. The pre-feasibility assessment is
underway. To result in additional rental income / once-off proceeds on sale of assets;
reduction in fixed costs such as electricity, maintenance and electricity;
3. Cost Saving Initiatives: energy, equipment, transport, animal feed etc, throughout the
ARC;
4. Rationalization of ARC Properties: unutilized and under-utilized land and properties;
5. Procurement and Sourcing Strategies: reduction of costs through procurement
savings.
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COVID-19 IMPACT ON 2020/21 ORGANISATIONAL PERFORMANCE
OPERATIONAL AREA
AFFECTED
MITIGATION MEASURE
International collaboration
projects
Second TELA Maize Project Annual Review & Planning Meeting will take place via Microsoft
Teams on 13-14 May 2020, after it was delayed by one month wherein it was planned to take
place in Mozambique from 13-18 April, 2020. Project teams will make up for lost time in decision
making.
Other collaboration projects that require in-loco acquisition of research material from international
destinations will require extension of completion dates.
Implementation of
commercialsiation projects
Wine making and commercial sales at the ARC commercial cellar can only resume during Level 3
or lower levels of lockdown.
Farmer training interventions Pro-active farmer engagement interactions to increase demand for ARC services. Training teams
are developing on-line training modules for farmers and Work In-service Learners (WILs) to
ensure that revenue from these services is not lost.
Planting of winter trials and
harvesting of summer trials
Provision of personal protective clothing and related safety guidelines has provided assurance to
employees, and there is commitment to ensure that important research trials are conducted
effectively.
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COMMENTS/ QUESTIONS _________________________________
Re a Leboha! Siyabonga! Ria Livhuwa!
Ha Khensa! Siyathokoza! Re a leboga
Thank YouBaie Dankie!Siyabulela!
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COMMENTS/ QUESTIONS _________________________________
Re a Leboha! Siyabonga! Ria Livhuwa!
Ha Khensa! Siyathokoza! Re a leboga
Thank YouBaie Dankie!Siyabulela!
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