Service Level Agreement

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 AGRICULTURAL RESEARCH COUNCILBUSINESS PLAN
FOR 2009 TO 2010 Dr Shadrack
MoephuliPresident CEO
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ARC TEAM

• Ms. Jean Davidson Chairperson (farmer)
• Prof. Michael Kahn Chair R D Committee
• Mr. Hamish McBain Chair F I Committee
• MANAGEMENT
• Dr. Shadrack Moephuli CEO
• Ms. Anati Canca Exec. Director Tech. Trans.
• Prof. Mohammed Jeenah Exec. Director Research
• Mr. Gabriel Maluleke Chief Financial Officer
• Mr. Michael Netsianda Exec. Director HR Corp.

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MANDATE (OBJECTS) OF THE ARC AS PER ACT

• To CONDUCT RESEARCH,
• DEVELOPMENT, ,
• TECHNOLOGY TRANSFER,
• IN ORDER TO
• Promote agriculture industry
• Contribute to better quality of life
• Facilitate/ensure natural resource conservation

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Policy Considerations (March 2009)

• Governments National Priority
• Agriculture Programme of Action
• Strategic Plan for South African Agriculture
  (Sector Plan)
• Land and Agriculture Reform Programme (LARP)
• National Research Development Strategy
• Ten Year Plan for Science and Technology
• African Agenda (NEPAD)
• Consolidated Science and Technology Plan of
  Action
• Comprehensive African Agricultural Development
  Plan

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COUNCIL STRATEGIC REVIEW

• Growth in agriculture increased productivity
• Growth in exports innovation (products
  processes)
• Reduction in rural poverty productivity
  improvements
• Mitigation of agricultural risks
• Business analysis optimize performance reduce
  duplication
• Synergy collaboration
• Ratio of scientists critical mass optimum
  performance
• Improve efficiency
• Improve reporting controls

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STRATEGIC CONSIDERATIONS

• Increased Focus on Basic/Fundamental Research
• Applied adaptive Research
• Human Capital Development
• Technology Development Dissemination
• Organizational Performance

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VISION MISSION

• VISION
• Excellence in Agricultural Research and
  Development
• MISSION
• The ARC is a premier science institution that
  conducts fundamental and applied research with
  partners to generate new knowledge, develop human
  capital and foster innovation in agriculture,
  through technology development and dissemination,
  and competitive commercialization of research
  results, in support of developing a prosperous
  agricultural sector

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Strategic Thrusts
Strategic Objectives
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VALUES

• Batho Pele principles
• Ons maak n plan
• TARGET
• Truth
• Accountability
• Respect
• Growth
• Excellence
• Trust

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• ARC Mandate To conduct research, development and
  technology transfer in order to
• promote agriculture industry
• contribute to a better quality of life
• facilitate/ensure natural resource conservation

Mission Statement The Agriculture Research
Council is a premier science institution that
conducts fundamental and applied research with
partners to generate new knowledge, develop human
capital and foster innovation in agriculture
through technology development and dissemination,
and competitive commercialisation of research
results in support of developing a prosperous
agricultural sector.
Vision Excellence in Agricultural Research
and Development
Generate, develop and apply new knowledge and
technology
Sustainable use and management of natural
resources
Enhance Nutrition, Food Security and Safety
Enhance the ability of the agricultural sector to
manage and mitigate agricultural risks
Achieve organisational growth and sustainability
Technology Transfer Commercialisation
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MINISTER
COUNCIL (BOARD)
CHIEF EXECUTIVE OFFICER
COMPANY SECRETARY
CHIEF RISK OFFICER
CHIEF FINANCIAL OFFICER MR. MALULEKE
EXEC. DIR HR SUPPORT MR. NETSIANDA
EXEC. DIR. R D Dr. JEENAH
EXEC. DIR. TECH. TRANSFER MS. CANCA
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ARC AREAS OF PRIORITY
Start with

• Industries that deliver growth now and/or are
  positioned for further growth collaborate
  de-bottleneck
• Industries that are important for desired
  outcomes but are not yet competitive lead the way

AGRO -- PROCESSING
Primary Agriculture
Processing
Packaging / Value add
the Foundation

• Fix the basics scientific solutions
• Research Development
• Human Capital Development
• Knowledge Infrastructure
• Mitigate agricultural risks
• Enablers for Innovation

Cross-Cutting Issues

• New improved technologies
• Technology Transfer
• Support LARP
• Competitiveness of SA Agric.
• Organizational Sustainability

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LARP Goals, Strategies Objectives
Poverty Eradication
Goals
Goals
Good Governance
Govt. Policies
Govt. Policies
Job Creation
Economic Growth
Profitability Competitiveness
Access Participation
Sustainable Agricultural Resource Use
Exports
Land Reform
Agribusiness
Production
Services Infrastructure
ARC Interventions
ARC Interventions
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Strategic Objective 1Generate, Develop and Apply
new Knowledge and Technology

• RATIONALE
• Critical component of a knowledge based economy
  and people
• Underpins generation of new (novel)
  products/processes/ technologies
• Contributes towards excellence and scientific
  knowledge
• Enables ARC to use best science to address
  agricultural problems unique to RSA Africa
• Generates intellectual property essential for
  economic development

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Strategic Objective 2Sustainable use and
management of natural resources

• RATIONALE
• Improve efficient use of agricultural natural
  resources for food production
• Ensure sustainable use and management
• Reduce poverty and increase wealth
• Competitiveness of industries dependent on
  natural resource based agriculture

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Strategic Objective 3Enhance Nutrition Food
security and Safety

• RATIONALE
• Increase access and availability of nutritious
  food
• Broadening the food base to enhance food security
  and nutrition
• Improving the inherent nutritional quality of
  food at source
• Broadening participation in the value chain and
  reducing waste
• Integrated approaches to optimize impact and
  adoption of new technologies.

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Strategic Objective 4Manage and mitigate
agricultural risk

• RATIONALE
• Reduce vulnerability to climate change
• Solutions and management of pests, diseases,
  weeds and alien invasives
• Management of natural disasters in agriculture
• Manage risks to increased agricultural
  productivity and trade

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Technology Transfer

• RATIONALE
• Creation of value through Agricultural RD
• Transfer ability to utilize new improved
  technologies
• Contribute to growth in agricultural sector
  through Tech Transfer and adoption programmes
• Contribute to increase in exports through the
  dissemination of technological innovations
• Contribute to the reduction of rural poverty
  through formulation and execution of programmes
  to address access and improved quality of life

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Human ResourcesARCs Intellectual Asset

• The HR divisions mandate is
• Develop, review, update and implement
  comprehensive and dynamic HR policies, procedures
  and protocols aligned to the core business of the
  ARC.
• Attraction retention of critical and scarce
  skills
• Human Capital Development.
• Implementation of a robust Performance Management
  System
• Maintain sound labour relations with organised
  labour (OL).
• Strive to ensure that ARC is legally compliant
  with relevant labour laws.
• Change Management Transformation

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Strategic Objective 6Achieve Organisational
Growth and Sustainability

• Human Capital Utilisation
• Effective talent management framework
  implementation
• Organizational Development Design
• Fully implemented Organizational structure
• All new posts established, profiled, graded and
  budgeted.
• Aligned and improved organisational performance
• Implementation of Performance Management System
• All employees have quality performance agreements
  and development plans
• Establish performance moderation framework and
  process
• Performance reviews
• 4. Attracting, developing and retaining Human
  Capital
• Develop and implement a retention strategy and an
  incentive scheme
• Development and implementation of a succession
  planning model

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Strategic Objective 6Achieve Organisational
Growth and Sustainability (cont.)

• Human Capital Development
• Development and conducting training needs
  analysis
• Develop 100 of personal development plans for
  staff
• Conduct skills audit
• Occupational Health Safety
• Conducting Health Safety audits
• Management of transformation Diversity
• Diversity and change management training
• Employment Equity program
• Develop Institute EE Plan with Targets
• Training of EE Committees

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SCIENTIFIC CAPACITY PER RACE30/06/2009
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DISTRIBUTION OF SALARY BILL30/06/2009
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Finance overview

• Analysis of Expenditure
• Analysis of Income
• Budget Assumptions
• Budget Scenarios
• Recommended Budget
• Medium Term Actions
• Risks in the Budget

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ANALYSIS OF EXTERNAL INCOME
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ANALYSIS OF EXPENDITURE
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Baseline Allocation (excl capex and ringfenced
projects) vs Personnel Costs
 
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Budget Assumptions For 2009/10

• PG increase 2
• External Income Neutral 0 (Risk)
• Personnel Cost Increase 7 (Risk)
• Vacancies salary adjustments
• Cost of living adjustment (inflation)
• Roll over capital (FMD facility) R44m
• Forecasted deficit 08/09 (R23m)

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ARC 2009/10 Budget Scenario 1
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ARC 2009/10 Budget Scenario 2
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ARC 2009/10 Budget Scenario 4 Approved
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BUDGET PER STRATEGIC OBJECTIVE
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• Medium Term Management Actions (3- 5 YRS)
• Rent out unused facilities
• Establish a unit to focus on sale of ARC products
  (e.g. milk, eggs, fruits, etc)
• Review all non-value adding Projects
• Negotiate Prepayments Progress payments on
  contracts
• Closure of non- required facilities

 
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Risks in the 2009/10 budget
 
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THANK YOU

• COMMENTS/QUESTIONS