Agribusiness Marketing Strategy

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					              NAMC STRATEGY and
                  BUDGET
                                          By
                                  TR Ramabulana
                                   CEO: NAMC

National Agricultural Marketing Council
         STRUCTURE OF PRESENTATION

•   Introduction

•   Framework of the Strategy
     – Strategic Overview
     – Key Result Areas
     – Planned Expenditure per programme

•   Overall 2008/09 Budget




National Agricultural Marketing Council
                           Farmer & Agribusiness Needs
                 Supply-Side                      Demand-Side           Business Environment

              – Limited water                  – Inadequate access to   – Lack of shared
All farmers
              – Scarcity of arable land          market information       vision across role
              – Soil degradation                                          players
              – Climate change
              – Rising input costs



                                               – Inadequate focus on      – Negative impact on
              – Limited innovation in risk       new markets                competitiveness
    1st         management
                                               – Limited product          – Cost of compliance to
economy                                          innovation                 SPS & TBT standards
 farmers                                                                  – High cost of
                                                                            compliance to labour
                                               – Limited access to
              – Limited access to                                           legislation
                                                 markets
                financial services

                – Poor infrastructure
                – Inadequate basic services                                – Limited supporting
     2nd
                – Limited access to capital    – Limited access to           institutions
 economy        – Limited skills                 local markets
                                                                           – Limited settlement
  farming
       National – Slow PaceMarketing Council
challenges      Agricultural of Land Reform                                  support
                                   INTRODUCTION
•   This strategic plan positions the NAMC as an organization that aims to assist the DoA
    achieve its objectives as highlighted in the:
     –    LARP & DoA strategic plan
     –    Sector plan

•   Objectives of the NAMC as highlighted in the MAP Act:
     –    Increasing market access for all market participants
     –    Promotion of the efficiency of the marketing of agricultural products
     –    Optimisation of export earnings from agricultural products
     –    Enhancement of the viability of the agricultural sector

•   Mission of the NAMC:
     –    Provide accurate and well-informed policy advice on marketing of agro-food products to the
          Minister, DoA and Directly Affected Groups
     –    Support developing farmers in terms of market access, knowledge acquisition and training
     –    Leverage centers of excellence and own resources to enhance equity, competitiveness, profitability
          and sustainability of the sector
     –    Contribute to the agric sector growth objectives by supplying useful information and policy positions
          using globally tested and proven analysis tools
     –    Focus efforts on the strategic positioning of the sector in dynamic global markets




National Agricultural Marketing Council
                   OVERALLL OBJECTIVES

     – Acceleration economic growth and social inclusion;
     – Addressing structural challenges of the organization and capacity
       constraints;
     – Stabilization of food prices;
     – Reaching out to the youth and women; and
     – Improving the country’s skills base.




National Agricultural Marketing Council
            FUNCTIONS OF THE COUNCIL
• Investigate the establishment, continuation, amendment or
  revocation of statutory measures and other regulatory
  measures
• Prepare and submit to Minister for consideration, statutory
  measures
• Undertake investigations and advise the Minister regarding:
     – Agricultural marketing policy and the application thereof;
     – The coordination of agricultural marketing policy in relation to national
       economic, social and development policies, and international trends
       and development;
     – The effect that marketing of products has on the objectives of the Act.
• Monitor the application of statutory measures and report
  thereon to the Minister at least every two years.


National Agricultural Marketing Council
                  NEW COUNCIL MEMBERS

•   Mrs. Ntombi Msimang (Chairperson)
•   Dr. ASM Karaan (Vice-Chairperson)
•   Prof. HD Van Schalkwyk
•   Mr. AD Young
•   Prof. JF Kirsten
•   Mrs. SE Moolman
•   Mrs. C Molo
•   Mr. DB Montshwe
•   Mrs. M Mannya
•   Mrs. M Gill




National Agricultural Marketing Council
               CORPORATE GOVERNANCE
                    COMMITTEE
• Audit committee
   – Mr. Victor Nondabula (Chairperson)
   – Prof. HD Van Schalkwyk
   – Ms. M Moja
   – Mrs. M Gill
   – Mr. R Matlou
• Human Resources Committee
   – Mr. AD Young (Chairperson)
   – Mrs. SE Moolman
   – Mrs. M Mannya
   – Mr. TR Ramabulana




National Agricultural Marketing Council
     COUNCIL & COMMITTEES’ SCHEDULE OF
                 MEETINGS

                COUNCIL           AUDIT         HR COMMITTEE     CHAIRPERSON
                                COMMITTEE                         COMMITTEE


 1           21 April          26 May        21 April          5 June


 2           4 August          24 July       4 August          20 October


 3           8 December        27 November   8 December


 4           16 February       9 February    16 February




National Agricultural Marketing Council
            INFORMATION DEVELOPMENT




National Agricultural Marketing Council
    MAPPING, UNDERSTANDING AND QUANTIFYING VALUE CHAINS
              (INCLUDING SECTION 7 COMMITTEES)
• FOCUS
   – To map, describe and quantify the value chain for each sub-sector in
     terms of, among others, the following factors:
           •   Structure & Performance
           •   Export orientation
           •   Market situation
           •   Macro-economic issues
           •   SWOT analysis

• MEASURABLE OBJECTIVE
  – To produce a series of value chain reports and in addition, when
    required, to produce Section 7 investigation reports.

• PERFORMANCE INDICATOR
   – Annual production and distribution of at least one agro-food chain
     report and, in addition, production of Section 7 reports according to
     demand.

National Agricultural Marketing Council
                               TRADE ANALYSIS
• FOCUS
     – To produce research under the following broad trade areas:
        • Agricultural tariffs
        • Tariff rate quotas
        • Non-tariff barriers
        • Inter- and intra-trade flows

• MEASURABLE OBJECTIVE
     – To produce a series of trade policy-relevant research reports on current trade
       issues and challenges

• PERFORMANCE INDICATOR
     – Produce and distribute 11 newsletters on trade related issues
     – Produce and distribute 5 trade profiles (commodity and product specific)




National Agricultural Marketing Council
             LINKING FARMERS TO MARKETS
• FOCUS
     – Produce case studies on black farmers who have been successfully
       integrated into the mainstream economy and to draw from such studies
       lessons that can be practically implemented elsewhere.
• MEASURABLE OBJECTIVE
     • To produce research on best practices of linking black farmers to
       markets and to facilitate the integration of black producers into the
       mainstream of commercial agriculture.
• PERFORMANCE INDICATOR
     – Regular production and distribution of research reports, articles and
       working papers on linking emerging farmers to markets (2 annually).




National Agricultural Marketing Council
                            RISK MANAGEMENT
• FOCUS
     – To produce research that applies tools for market risk management in
       agro-food chains
     – To produce research that quantifies agric market risk and provide
       guidance on management

• MEASURABLE OBJECTIVE
     – To produce a series of research reports on agric market risk
       management

• PERFORMANCE INDICATOR
     – Produce 3 research papers on market agric risk management that can be
       applied in the planning and implementation of projects by the DoA and
       DAGs



National Agricultural Marketing Council
     INFORMATION MANAGEMENT SYSTEMS
• FOCUS
     – To produce reports that cover trends and other developments regarding food
       prices, input costs and other variables across sub-sectors and along the
       agricultural agro-food chains and, among other things, provide policy input.

• MEASURABLE OBJECTIVE
     – To produce a series of reports containing marketing data and information for all
       stakeholders in the agricultural sector and to develop/maintain sufficient
       database capacity to provide easy access to relevant marketing information.

• PERFORMANCE INDICATOR
     – Produce and distribute four quarterly Food Price Trends reports;
     – Produce and distribute one annual Food Cost Review report;
     – Produce and distribute four Input Cost Trends report.




National Agricultural Marketing Council
    OUT-REACH, IN-REACH AND CONFERENCES
•   FOCUS
     – To send staff to training programmes locally and internationally.
     – To promote collaboration between experienced researchers within partner
       academic institutions and the NAMC.

•   MEASURABLE OBJECTIVE
     – To award bursaries to deserving staff members or targeted future employees on
       research pertaining to the marketing and trade of agricultural products.

•   PERFORMANCE INDICATOR
     – Regular collaborations between staff and other researchers in academia through
       collaborative research programmes (establish at least three such programmes).
     – Regular attendance at local and international training programmes by staff (at
       least two staff should attend training programmes relevant to marketing and
       trade).
     – Award at least three bursaries per annum.
     – Regular interactive seminars within NAMC (at least two seminars per month).



National Agricultural Marketing Council
                    STATUTORY MEASURES




National Agricultural Marketing Council
    WHAT WE EXPECT FROM INDUSTRY
              PARTNERS

•    Fairness to all producer segments
•    Responsiveness to industry challenges
•    Focus on long term strategic planning
•    Good financial management
•    Education sessions for all trustees on roles and responsibilities
•    Clear communication strategy with grassroots
•    Succession planning (empowerment)




National Agricultural Marketing Council
    STATUTORY MEASURE INVESTIGATIONS
• Focus
     – Investigate and recommend for approval any of the five statutory
       measures, namely statutory levies, records and returns, registration,
       control of exports of agricultural products and conducting of pools as
       provided for in the MAP Act.
• Strategic goal
     – To provide the Minister with recommendations regarding the approval
       or disapproval of a statutory measure.
     – To promulgate statutory measures in the relevant agricultural sectors in
       order to improve their operations.
• Strategic Outcome
     – Undertake 9 statutory measures investigations.



National Agricultural Marketing Council
                       AGRICULTURAL TRUSTS
• Focus area:
     – The NAMC facilitates the appointment of Ministerial Trustees in agricultural
       trusts. Agricultural trusts were entrusted with safeguarding and utilizing former
       control boards assets to the benefit of the whole industry.
• Strategic goal:
     – To facilitate the process to appoint ministerial trustees.
     – To influence trusts to bring transformation to the heart of their activities.
• Strategic outcomes:
     – We expect:
        • Bursary schemes to support black students
        • Funding for schemes aimed at increasing market access
        • Export promotion schemes for black producers
        • Mentorship projects
        • Schemes aimed at reducing the transaction cost of doing business with
          black farmers




National Agricultural Marketing Council
                        MAIZE BOARD SCHEME
• Focus area:
     – The NAMC was tasked with the responsibility of advising
       the Minister of Agriculture on the closure of all control
       boards and transfer assets to trusts.
     – The only remaining scheme is the Maize Board Scheme.
• Strategic goal:
     – To finalize all outstanding Maize Board cases before 31
       July 2008.
• Strategic outcomes:
     – To prevent a further extension of the Maize Marketing
       Scheme.



National Agricultural Marketing Council
     CROP ESTIMATES LIAISON COMMITTEE
• Focus
     – The NAMC was mandated to establish a Crop Estimates Liaison
       Committee (CELC) to formally monitor the crop estimation process in
       South Africa. The CELC has the following focus areas:
           • Establishment of a completely independent and objective committee free
             of commercial bias;
           • Delivery of accurate, timely and credible crop estimate;
           • Monitoring the performance of the CELC.
• Strategic goal:
     – Provide leadership required to improve the acceptance of crop
       estimates within industry in general.
• Strategic outcomes:
     – Hold three (3) CELC meetings per annum - May, October and
       November.



National Agricultural Marketing Council
           AGRIBUSINESS DEVELOPMENT




National Agricultural Marketing Council
                     DEVELOPMENT SCHEMES
• Strategic goal:
     – To increase market access for the emerging producers.

• Focus:
     – Capitalise and facilitate implementation of development
       schemes that will integrate emerging producers into the
       commercial mainstream.

• Strategic outcome:
     – Oversee the rollout of the Grain Development Scheme and
       the General Development Scheme.


National Agricultural Marketing Council
        FARMER BUSINESS SUPPORT MODELS
• Strategic goal:
     – To design and implement demand led projects in collaboration with
       DoA that will link black producers in the fruit industry to retailers.


• Focus:
     – To link black agribusinesses to market either as an individual
       agribusiness or as a project involving more than one agribusiness.


• Strategic outcome:
     – Identify, design and implement four such projects.




National Agricultural Marketing Council
                                   PROMOTIONS
• Focus:
     – To expose black owned agribusinesses to international markets and
       procurement requirements of those markets by
           • supporting the agribusinesses to attend international and local trade shows
             in collaboration with industries and other agencies.

• Strategic goal:
     – To identify export-ready agribusinesses and support them with
       exporting their produce.

• Strategic outcome:
     – Support fifteen agribusinesses to attend international trade shows;
     – Support fifteen agribusinesses to attend local shows and interact with
       buyers.



National Agricultural Marketing Council
RE-ALIGNMENT OF LEVY ADMINISTRATORS
• Focus:
     – To assist Levy Administrators in developing and implementing best
       practices on transformation.


• Strategic goal:
     – To assist levy collecting industries in integrating NAMC
       transformation guidelines into their daily operations.


• Strategic outcome:
     – One (1) report on the status of statutory levies collected in terms of the
       MAP Act.




National Agricultural Marketing Council
                                          TRAINING
• Strategic goal:
     – To capacitate black agribusiness through marketing and
       management training courses.
• Focus:
     – Host training courses in collaboration with universities and
       industries that will improve the technical and managerial
       skills of agribusinesses.
• Strategic outcome:
     – Three Courses for the next financial year
           • Making Markets Matter Course - 50 agribusiness
           • Agribiz Matter Course - 30 women owned agribusiness
           • Market Access for Exporters - 5 agribusiness



National Agricultural Marketing Council
                     CORPORATE SERVICES




National Agricultural Marketing Council
                                          FINANCE
• Focus:
     – To provide effective, efficient financial and accounting management systems
       and services for the NAMC. The division provides the Council with corporate
       governance structures, namely:
         • Council
         • Audit and Risk Committee
         • HR and Remunerations Committee

• Strategic goal:
     – To implement effective, efficient and transparent financial management and
       internal control systems in compliance with the PFM Act, 1999, and Treasury
       Regulations.
• Strategic outcomes:
     – Produce monthly and annual audited financial statements.
     – Provide support to the Council & HR, at least four times a year.
     – Provide support to the Audit Committee, which meets six times a year.




National Agricultural Marketing Council
                                          BUDGET
PROGRAMMES

INCOME                                     2008/09      2009/101     2010/11

Grant & transfers (MTEF)                   22,459,000   23,722,000   25,056,000

Interest Earned                            300,000      315,000      330,000

TOTAL INCOME                               22,759,000   24,037,000   25,386,000

EXPENDITURE                                2008/09      2009/10      2010/11

Compensation of Employees                  10,847,000   11,624,000   12,412,000

Goods and Services-Standard Items          4,593,001    4,785,000    4,996,001

Operational Expenditure                    7,319,000    7,628,000    7,929,000


Assets                                     285,000      285,000      270,000

TOTAL EXPENDITURE                          22,759,000   24,037,000   25,386,000




National Agricultural Marketing Council
          HUMAN RESOURCES MANAGEMENT
• Focus:
     – Focus on corporate staffing, learning, renewal, succession/talent management,
       incentives and monitoring and evaluating compliance with the Equity
       Employment Plan for the NAMC.

• Strategic goal:
     – To achieve effective human resource management and development within the
       NAMC.

• Strategic outcomes:
     – Have three performance assessments for each staff member per annum.
     – Arrange one corporate governance course for all ten Council members.
     – Hold one training session with all staff members on staff evaluation and the
       differentiation policy (NAMC performance incentive policy).
     – Arrange for ten staff members to participate in formal and informal training
       courses each year.




National Agricultural Marketing Council
                             COMMUNICATIONS
• Focus:
     – To implement a communication strategy that will include advertorials in
       different agricultural magazines and newspapers as well as slots on radio
       stations, especially community stations.

• Strategic goal:
     – To ensure proper communication of the NAMC programmes and activities to
       all directly affected groups.

• Strategic outcomes:
     – Release quarterly four price trends
     – Three media briefings to communicate NAMC programmes
     – Manage the dissemination of NAMC corporate information to functions such
       as AEASA, and other NAMC marketing training courses.




National Agricultural Marketing Council
                                    THANK YOU




National Agricultural Marketing Council

				
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