AGRICULTURAL RESEARCH COUNCIL

Strategic Plan: 2015/16 – 2019/20And

Annual Business Plan: 2015/16

Presentation to Portfolio CommitteeMarch 2015

OUTLINE OF PRESENTATION 1. ARC Council Members

2. Executive Management Team

3. ARC Mandate, Vision & Mission

4. ARC Alignment to National Priorities and Policies

5. Science and Agriculture Indicators of Economic Performance

6. ARC Review of Organizational Performance

7. Outcome Oriented Strategic Goals ( 1 to 6)a) Goal 1b) Goal 2c) Goal 3d) Goal 4e) Goal 5f) Goal 6

8. Critical Success Factors

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ARC COUNCIL FOR 2013/14 till June 2013

1. Prof. Sibusiso Vil-Nkomo – Chairperson2. Prof. Michael Kahn – Deputy Chairperson, R&D Evaluations Committee

Chair3. Ms. Dudu Msomi – Finance Committee Chair4. Prof. Frans Swanepoel – HR & Remunerations Committee Chair5. Prof. Louw Hoffman 6. Dr. J. Chitja7. Dr. W. J. van Rijssen8. Mr. Mzolisi Dyasi 9. Ms. Dora Ndaba10. Ms. Joyce Mashiteng11. Mr. Rowan Nicholls 12. Mr. Allan Bishop13. Mr. Gerard Martin14. Mr. Ismail Motala15. Mr. Clive Kneale

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ARC MANAGEMENT TEAM

• Dr. Shadrack R. Moephuli (CEO)

• Dr. Mohammed Jeenah (GE: Crop Sciences)

• Dr. Litha Magingxa (GE: Agri-Economics & Capacity Development)

• Ms. Makgomo Umlaw (SM: Human Resources)

• Dr. Andrew Magadlela (GE: Animal Sciences)

• Mr. Gabriel Maluleke (Chief Financial Officer)

• Mr. Frans Monkwe (GE: ICT and Infrastructure)

• Dr. Jasper Rees (GE: Research Innovation Systems)

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ARC MANDATE, VISION & MISSION

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ARC ALIGNMENT TO NATIONAL PRIORITIES AND POLICIES

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ARC CONTRIBUTION TO GOVERNMENT PRIORITIES & OUTCOMES

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1. Supporting objectives of the National Development Plan, Vision 2030 through anARC business strategy and organization structure aligned to national priorities;

2. Employment and Job creation, particularly among the poor;

3. Food and Nutrition Security for all, particularly within households;

4. Improved productivity, production, competitiveness and sustainability of animaland crop based agriculture;

5. Contributing to bio – security;

6. Optimal technology platforms for agricultural production;

7. Strengthening the role of the bio – economy (the “Farmer to Pharma ValueChain”) to enable South Africa to become a leader in Biotechnology and relatedpharmaceuticals through our knowledge base;

8. Enabling the country to adapt and respond to climate change impacts (water,land, energy, sustainable natural resource utilization etc)

9. Contributing to South Africa’s Global and Regional positioning andintegration;and,

10. Ensuring an optimal and sustainable organization.

ARC STRATEGIC GOALS (Outcomes – Oriented)

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1. To generate knowledge and technologies that will enhance the efficiencies incrop based agriculture;

2. To generate knowledge and technologies that will enhance the efficiencies inanimal based agriculture;

3. To generate knowledge and technologies for the conservation and utilization ofnatural resources;

4. To generate knowledge, solutions and technologies for food safety, quality andimproved efficiencies in the agriculture value chain;

5. Translate research outputs in order to generate knowledge, facilitate decisionmaking and contribute to the transformation in the agriculture sector; and,

6. Apply resource management practices towards a high performing and visibleorganization.

SCIENCE IN ARC FOR THE AGRICULTURE ECONOMY

SCIENCE COUNCIL Innovation in science

Basic/fundamental research

Applied research (technologies)

Intellectual assets

Skilled scientists & engineers

Volume & quality publications

Scientist ratings

Number of PhDs

Number of doctoral fellows

Number of postdoc fellows

Scientific awards

AGRIC. DEVELOPMENTo Economic link to Innovation

o Applied research

o Technology Transfer/dissemination

o Intellectual Asset Use

o Agricultural Production & productivity

o Food Security – hunger

o Environmental Sustainability

o Import Substitution

o Export Promotion

o Agrarian Transformation

o New products (vaccines, cultivars etc)

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REVIEW OF KEY ORGANISATIONAL PERFORMANCESCIENTIFIC SOLUTIONS THROUGH RESEARCH AND DEVELOPMENT

a) Cultivars with Plant Breeders Rights over period 2007 – 2015: 114 to 12 Commodities

2007

Released

2008

Released

2009

Released

2010

Released

2011

Released

2012

Released

2013

Released

2014

ReleasedRegistered Registered Registered Registered Registered Registered Registered Registered

Oats 2 2

Wheat 2 2 1 1 7 7 4 2 1 2 3

Groundnuts 1 1 3 3

Dry bean 1 1 1 1 2 2 1 1 1 1

Maize 2 2

Cowpea

Cotton 2 2 1 1

Apples 1 1 5 5

Nectarines 4 4 1 1 1 1 1 1 6 6

Peaches 2 2 1 1 5 5 4 4 4 4

Plums 1 1 4 4 5 5

Pears 1 1

Apricot 1 1 3 3

Grape 1 1 4 4 1 1

Litchi 1 1

Banana 1

Citrus 3 2 1 1 1

Mango 1

Sweet potato 3 3 3 3 1 1 3 3

Flower bulbs 7 7

Potato 2 2

TOTAL 10 12 6 5 19 17 8 14 13 13 35 34 13 6 10 13

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REVIEW OF KEY ORGANISATIONAL PERFORMANCE

SCIENTIFIC SOLUTIONS THROUGH RESEARCH AND DEVELOPMENT

b) Generating Information and Knowledge for our community: Publications

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REVIEW OF KEY ORGANISATIONAL PERFORMANCEAgriculture Research For Developing Farmers

c) Kaonafatso ya Dikgomo (KyD) Scheme: aims to accelerate participation of small scale livestock farmers

into mainstream industries.

Growth trends of participants in KyD Scheme

Marked improvements in: Calving rates for participants were usually below 35%, after joining scheme,calving rates are averaging 55%, with some farmers recording as high as 90%.

PROVINCE 2010 2011 2012 2013 2014Eastern Cape 144 81 325 365 365Free State 114 118 459 576 576Gauteng 65 122 289 388 388Kwazulu-Natal - 62 592 1859 3900Limpopo 386 307 744 727 727Mpumalanga 159 233 642 890 890Northern Cape 47 180 379 457 457North West 65 158 348 569 569Western Cape - 18 297 403 403

TOTAL 980 1 288 4 075 6 234 8 275

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ARC PROGRAMMES

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1. Crop Production, Improvement and Protection

2. Animal Health, Production and Improvement

3. Natural Resources Management

4. Mechanisation and Engineering

5. Agro-processing, Food Technology and Safety

6. Smallholder Agricultural Development

7. Agricultural Economics and Commercialization

8. Training and Extension

9. Administration and Corporate Affairs

Strategic Goal 1 To generate knowledge and technologies that will enhance the

efficiencies in crop based agriculture

FOCUS OF GOAL:

a) Broaden the food base for food andnutrition security and welfare.

b) Optimised crop production systemsto mitigate agricultural risks.

c) Improved cultivars (food and non-food) through breeding, physiologyand genetics.

d) Enhanced crop protection systems.

e) Crops and mixed production systemsdeveloped for smallholder farmers.

OUTCOMES WITH ASSOCIATED IMPACT:

e) New cultivars that would ensure higherprofitability

f) Mitigation strategies against biotic andabiotic stresses that would improveproductivity

g) Sustainable production systems

h) Reduction in post harvest losses

i) New products and processes developedfrom primary agriculture

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Strategic Goal 2 To generate knowledge and technologies that will enhance

the efficiencies in animal based agricultureFOCUS OF GOAL:

a) Development of Animal Vaccines

b) Development of Diagnostic and AnalyticalTechnologies

c) Improvement to Veterinary Public Health

d) Development of Disease Control Strategies

e) Development and Introduction of newtraits and genetic diversity in animals

f) Enhance animal production and nutritiontechnologies

g) Animal, crop and mixed productionsystems developed and transferred tosmallholder farmers

h) Animals and mixed production systemsdeveloped for smallholder farmers

OUTCOMES WITH ASSOCIATED IMPACT:

i) High quality improved meat and dairyproducts that are safe, highly nutritionalwith visual appeal;

j) Affordable meat and dairy products;k) Disease free herds (livestock & wildlife);l) Reduced degradation of rangelands;m) Improved livestock production through

adoption of improved rangelandmanagement

n) Effective animal breedingmethods/techniques

o) Increased efficiency of livestock productionfrom breeding

p) Improved livelihoods among smallholderfarmers

q) Reduced number of stock theft incidentsr) Disease and residue free animal products

for increased market access

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Strategic Goal 3 To generate knowledge and technologies for the conservation and

utilization of natural resources

FOCUS OF GOAL:

a) Alternative energy technologiesb) New and improved conservation

agriculture systemsc) Climate Smart agriculture to enable

mitigation and adaptation to climatechange

d) Improved water management andirrigation practices

e) Natural resources monitored andcharacterised

f) Genetic resources, databases updatedand maintained

g) Green technologies and processes tomitigate impact of agriculture on theenvironment

h) Enhanced mechanization in agriculturei) Agriculture engineering

OUTCOMES WITH ASSOCIATED IMPACT:

j) Climate smart agriculture technologiesadopted & utilized that sustainablyincrease agricultural productivity andincomes;

k) Increased resilience of Agriculture toclimate change;

l) Reduced greenhouse gas emissions;m) Optimal agricultural production from

increased biodiversityn) Water efficient agricultureo) Energy efficient agriculturep) Optimal utilization of land for

sustainable agricultureq) Appropriate infrastructure for increased,

efficient and sustainable agriculture

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Strategic Goal 4 To generate knowledge, solutions and technologies for food safety,

quality and improved efficiencies in the agriculture value chain

FOCUS OF GOAL:

a) New food and non-food processes andproducts developed

b) Improved quality and yield throughdevelopments in food sciences andtechnologies

c) Reduced post – harvest lossesd) Improved shelf life of agricultural

products and foode) New animal products developed

OUTCOMES WITH ASSOCIATED IMPACT:

f) Increased number of new food and non – foodproducts and processes

g) Improved quality and safety of food throughagro – processing

h) Improved quality and yield throughdevelopments in food sciences andtechnologies

i) Increased application of genomics,proteomics, metabolomics, bioinformatics incrops, livestock and environmental sciences foragricultural production

j) Tools for animal and plant disease studiesk) Tools for integrated plant and animal breeding

platforms, INTERGIS, AGIS and climate andcrop production systems

l) Knowledge and information for decisionsupport systems.

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Strategic Goal 5 Translate research outputs in order to generate knowledge, facilitate

decision making and contribute to the transformation in the agriculture sector

FOCUS OF GOAL:

a) ARC technologies packaged and exploited

b) Established and functional agri – incubators

c) Animal, crop and mixed production systemstransferred to smallholder farmers

d) Agriculture Development Centres that aredelivering services. ARC footprint and visibilityenhanced

e) Smallholder farmer enterprises support

f) Agricultural skills and capacity developed

g) Agriculture research for developmentoutcomes communicated and disseminated

h) Marketing and stakeholder management

OUTCOMES WITH ASSOCIATED IMPACT:

i) Increased adoption and use of ARCtechnologies among smallholder farmers

j) Increased number of functioning andsustainable agriculture enterprises from agri –incubators

k) Increased number of animal, crop and mixedproduction systems transferred to smallholderfarmers

l) Agriculture Development Centres establishedin all provinces

m) Competitive and sustainable Smallholderenterprises

n) Increased skills base and capacity inagriculture sector

o) Increased use of and application of agriculturescience and technology in decision making

p) Improved image and relations of ARC withstakeholders

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Strategic Goal 6:

Apply resources management practices, towards a high performing and visible organization

a) Human Resources

Attracting and recruiting talent

• ARC must be able to attract the right people to carry out its work andto implement the strategy in a timely and successful manner.

• Recruitment and selection processes are perceived to be overlylengthy, and not to attracting the right talent in critical skills areas.

• Simplified and streamlined selection processes, with fasterturnaround times, will be achieved through the creation of moregeneric and standard job profiles and the development of standardoperating procedures to harmonize practices across the Organization

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Retaining talent: career management

The ARC pressing HR issues that require career management:

(i) Permanent staff must remain relevant and qualified to meet the needs of the Organization;

(i) All staff must be fully trained and ready to take on new professional challenges; and

(i) Staffing needs will be affected by a significant rate of natural attrition.

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Staff Mobility

According to current projections (207) 8.6% of the total workforce is due to retire during the next five years. Of the 207 employees, 52 employees are from the scientific capacity:

• Research Team Managers: 9

• Researchers & Specialist Researchers: 18

• Senior Management (Core): 4

• Technicians: 21

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HR Risks• Challenges with respect to:

* the recruitment of high level qualified and experienced personnel* succession planning* the loss of high level qualified and experienced personnel

• Lack of resources to support the implementation of the different HR initiatives;

• Inadequacies of current systems and tools;

• Lack of commitment to its implementation from all enablers;

• Changing priorities; and

• The need to manage expectations.

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ARC Human Resource Challenges

a) A high proportion of experienced researchers are approaching retirement.

b) Higher–end specialist skills to ensure future growth of ARC therefore cannot be provided by conventional educational streams.

c) The need for a higher ratio of scientists to total staff, particularly at post graduate level.

d) The urgent need to improve ratios of women, black and young researchers especially researchers vs technicians.

e) The need to improve the qualifications profile of ARC and to expand its SET base (Masters and PhD)

f) The need to develop research capacity in emerging national priority science areas i.e nanotechnology

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b) Information Communication Technology and Infrastructure Management

Information Communication Technology

Creating an enabling environment for optimal use of informationcommunication resources to support of ARC business initiatives:

a) innovations to support information dissemination initiatives

b) increased mobility and use of mobile applications

c) improved access to information resources for all employees

d) improved connectivity to enable virtual presence and collaboration

e) Improved ICT resources to enable research and developmentthrough informatics tools

f) Providing a Knowledge Management Platform to enhance ARCresearch and development initiatives and service delivery

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ARC Infrastructure Management

Creating an enabling environment for optimal use of infrastructure tosupport of ARC business initiatives:

a) Optimal use of ARC land, buildings and equipment for research anddevelopment

b) optimising use of ARC assets, particularly land (this indirectly contributesto the security of our land and buildings, preventing vandalism, illegal landinvasions, etc)

c) improved generation of rental income

d) disposal of non-strategic assets (assets not now and not in future requiredor usable for agricultural research and development purposes)

e) seeking and building productive partnerships and collaborations withinterested 3rd parties (e.g. commercial production of crops where land isnot immediately required for research)

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FINANCIAL PERFORMANCE

Background to ARC Financial Management

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Budget Assumptions

a) 20% cut in Parliamentary Grant (including ECSP)

b) Salary increases 8% -per agreement

c) Projected electricity increase 12.7%

d) Reduction rural development projects

e) No funding for Economic Competitiveness Packages (R171)

f) Minimal increase in external income

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ARC Financial Position (MTEF) 2015/16 – 2017/18

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ARC Balance Sheet and Cash Flow 2015/16 – 2017/18

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Operational Expenditure vs Operational PG (2015/16 –2017/18)

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Implications of Budget Cuts

a) Return to negative cash position over MTEF

b) Inability to fill critical vacancies

c) Student intake will be limited- capacity building

d) Vaccine development projects negatively affected

e) No funds available for any marketing activities

f) Multiyear projects negatively affected

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ARC Critical Success Factors

a) Development and implementation of asustainable funding model;

b) Development and implementation of anInternational Stakeholder EngagementStrategy;

c) Development and implementation of anenhanced Agro-Processing Strategy;

d) Implementation of projects, in particular,the Centre’s of Collaboration withUniversities and other LearningInstitutions;

e) Implementation of an Disease PriorityMatrix;

f) Integration of Agricultural EconomicImpact into all R & D programmes;

g) Design and Implementation of astandardized quality management systemfor laboratories providing services;

h) Optimal utilization of assets andinfrastructure, through the implementationof the approved asset management plan,while also ensuring the geographic footprintof the organization;

i) Successful recruitment of highly qualified,enthusiastic and energized people into theARC remains a priority that continuouslyrequires focus across the organization;

j) Implementation of an effective andsuccessful marketing and communicationstrategy; and

k) Development of a detailed multi-yearimplementation plan to respond to therecommendations of the ARC ExternalPerformance and Management Review,including the implementation of specificrecommendations through the approvedplan.

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Comments or Questions?

Re a Leboha!Siyabonga!

Ria Livhuwa!Ha Khensa!

Siyathokoza!Re a lebogaSiyabulela!

Baie Dankie!Thank You

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