portfolio committee on agriculture and land affairs:

1
portfolio committee on agriculture and
land affairs 5 april 2005 strategy and budget
2005/6
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agendappecb in transformation

• introduction
• 2005/6 strategy
• objectives/outcomes
• strategic directions and business plan
• alignment with DOA programmes
• black economic empowerment
• budget
• questions

3
ppecb 2005-2006 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.
4
sa perishable products export industry

• transforming means
• organisation renewal and people diversity
• legislative renewal
• systemic risk assessment
• systems and process redesign
• sustainability means
• growth in international market access
• creating employment, equity and wealth
• international competitiveness
• long-term profitability
• confidence means
• sustained access to difficult markets by
  guaranteeing
• people competency
• process efficiency and
• product safety and quality
• capacity to deliver on requirements

5
ppecbs 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• act 9 of 1983 ppecb act (outdated)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

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ppecb strategy 2004-2006 (present board)
ppecb transforming, repositioning as sa food
safety agency building with confidence purpose
statement ppecb instills confidence in food
by impartially performing food
safety quality assurance services
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ppecb outcomes2004-2006

• 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)

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contextual environmental issues
industry drivers
environment condition
increasing international legislation harmonisation
/integration of standards

• reduced costs
• revision of legislation
• product quality
• increased demand for information
• integration of systems
• food safety
• efficiencies
• skills demand
• response times

legislation
call for integrated legislation in sa high cost
of compliance to various standards
overproduction
global competitiveness
economic
higher consumer demands
exchange rate pressure
fragmented national food policy
transformation
political
integration delivery
agricultural best practices challenges
environment
national drought conditions
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operating model and value streams
stakeholder requirement
value stream deliverable

• inspection/audit services
• supply (cold) chain services
• product category partnerships

statutory standards

• financial services
• information/logistics services
• communication services

industry standards

• specialised services (solutions)
• training/development services
• certification services

customised standards
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value streams - programmes
programmes
value streams
inspections audits cold chain logistics product
categories specialised solutions analytical devel
opment 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

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our strategic direction positioning
create confidence and ensure sustainability in
the south african fresh produce markets by

• 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

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ppecb strategic programmes

• black economic empowerment
• risk management system
• food safety
• stakeholder management
• industry information
• ISO 17020

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alignment with DoA programme no 7 regulatory
services

• compliance with legislation ppecb/aps/pfma acts/
  eu1148
• food safety strategy assignee for ofs/
  development ifsqms
• communication and national coordination national
  forums
• harmonising legislation, codes and guidelines
  oecd/ un-ece
• progressive service standards that enhance
  credibility iso17020/ export protocols
• resources for maximum effectiveness restructured
  operations
• technology 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

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broad based black economic empowerment
dimensions management employment
equity skills development enterprise
development procurement capacity building
strategies analysis of potential redesign
organisation to create opportunities programme
managers succession planning leadership
development people development forum employment
equity stats organisation renewal recruitment
focus legislative compliance internal
training experiential learning programme bursary
programme developing portfolio programmes
pip all programmes to reflect bee as
priority procurement manager filtering
suppliers reporting at executive level develop
suppliers skills development
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broad 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
• 2004-2005
• african -1
• asian 1
• coloured 3
• white -48
• YTD YTD
• african 4 95 black asian 0
  technologist
• coloured 4 appointed
• white -7
• internal bursary 10 R52 000
• external bursary 2004 20 R480 000
• 2005 15 R432 000
• SDA-2004 85 grants received

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ppecb company profile

95 of new recruits to operational positions
comply with employment equity plan
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ppecb budget 2005-06
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objectives

• development of a risk management system
• building and retaining skills capacity
• building relationships with stakeholders

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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
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activity overview
employees 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
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budget 2006
06 bud 05 est ?
income R104m R93m 12
expense R104m R92m 13
shortfall R0 R0,9m -
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income variance
R000
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
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budget structure
R000 bud LY ?
expense 104 041 93 006 12
ppecb
statutory
PIP
customised
R000 bud LY ?
expense 86 814 82 735 5
program 8 220 2 557
R000 bud LY ?
expense 1 241 1 033 20
R000 bud LY ?
expense 7 766 6 681 16
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expenditure
budget R000 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
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strategic programmes
F2006 budget R000 F2005 estimate R000
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
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benchmark hourly rate
note excl travel incidentals 1 pound
R12,0106 1 euro R8,12374
1 aus R4,79836
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customised services
R000 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
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agency SA PIP
budget R000
expense R1 241
ppecb admin fee R1 362
variance R121
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budget achievements

• build to support global confidence in SA produce
• focus
• systematically manage risk
• build capacity
• build relations
• improve efficiencies
• BEE procurement employment

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ppecb 2005-2006 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
31
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