STRATEGIC PLAN STRATEGIC PLAN

2011/12 – 2015/162011/12 – 2015/16

NCERA FARMS (PTY) LTDNCERA FARMS (PTY) LTD

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TABLE OF CONTENTS Background

Mandate

Alignment of NCERA Farms to National Priorities

Challenges facing the entity

Response to challenges

The NCERA Farms strategy

The Training and Development Academy

Key Deliverables of the Academy

Finance mechanisms

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BACKGROUND

In terms of location the entity is situated at the Amathole District Municipality in the Eastern Cape Province.

The entity is made up of a Service Centre which is situated at Welcome Home Farm, Rocklands Cash Store, Farms at Silverdale, Yellowood, Hilltop, Rocklands, Springvale, Flintham, Ferndale and Lillyvale.

The total hectarage for the area is 3135,2806 of which 2214 has been allocated to black farmers with an intention to lease.

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MANDATE OF NCERA FARMS (PTY) LTDMANDATE OF NCERA FARMS (PTY) LTD

NCERA Farms (Pty) Ltd is a public company listed in schedule 3B of the Public Finance Management Act, 1999 with the Department of Agriculture, Forestry and Fisheries as the sole shareholder.

In terms of the mandate granted by the shareholder the objective of NCERA Farms (Pty) Ltd is to provide:

− Industry focussed farm management training

− Provision of farmer support services

− Design of franchise type agricultural business models.

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ALIGNMENT OF NCERA FARMS TO NATIONAL PRIORITIES

The entity draws its strategic focus is informed by

The Integrated Growth and Development Plan (IGDP) 2011 – 2031. Comprehensive Rural Development Programme (CRDP). National Skills Development Strategy (NSDS) 2011/12 – 2015/16.

The entity aims to contribute to key National outcomes mainly:

− Outcome (4): Decent employment through inclusive economic growth.

− Outcome (5): Skilled and capable workforce to support an inclusive growth path.

− Outcome (7): Vibrant, equitable, sustainable rural communities contributing towards food security for all.

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CHALLENGES FACING THE ENTITY

NON COMPLIANCE POOR FOCUS ON NATIONAL PRIORITIES

INTERNAL CHALLENGES

• Absence of permanent CEO

• Absence of the Board• Lack of well defined

governance and policy framework(s)

• Delays in the finalization of lease agreements.

• Unaccredited and irrelevant training programmes

• Skewed and undefined technical and advisory services

• Lack of programmes directed at supporting local and regional economic growth.

• Development of informal settlements (shack dwellers)

• Poor farm infrastructure• Lack of mutual respect

between stakeholders• Some of the enterprises

under operation are not cost effective to run

• Shortage of water.

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RESPONSE TO CHALLENGESChallenges related to non compliance with relevant legislation(s)

interviews for the appointment of a Chief Executive Officer have been concluded.

The Department have secured the services of legal firm to assist with the development of framework for the appointment of the Board in consultation with all the relevant stakeholders.

A framework for the establishment of a stakeholder council has been finalized and agreed with all relevant stakeholders.

A submission recommending to Public Works to approve lease agreements has been finalized.

The target is to finalize governance related issues by the end of quarter one (30 June 2011) of the new financial year.

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RESPONSE TO CHALLENGES CONT….

The proposed Training and Development Academy for Innovation is a response to this challenges.

Internal challenges

The creation of a stakeholder council which include all spheres of government, traditional leadership, civil society and business is an attempt to resolve internal challenges.

Relevant DAFF directorate responsible for state land administration will provide funding for NCERA Farms infrastructure.

The creation of an agri village as agreed with stakeholders will avert the spread of shacks in the area.

Substitution of enterprises and aggressive investment in water harvesting and saving technologies will avert the challenge of water shortage.

Challenges related to poor focus on national priorities

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THE NCERA FARMS STRATEGY

The Vision: A pace setter in the provision of farm management training as a trade and the creation of smallholder farmer support and development models.

Mission Statement: NCERA Farms (Pty) Ltd is a training and development academy focusses on innovation and inclusive farm management training with an intention to contribute to rural wealth creation.

The strategic objectives of the entity are as follows:

Provision of industry focussed and occupation directed training. Creation of one stop shop farmer support centre through partnerships and resource mobilization. Development of Franchise models in support of entrepreneurs in the sector. Pioneering sustainable agri villages. Organizational growth and sustainability.

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THE TRAINING AND DEVELOPMENT ACADEMYThe purpose of the Academy is to develop industry focussed and occupation directed programmes and creation of one stop shop farmer support centre through partnerships.

Programmes of the Academy

The Starter Finisher Cost Centre

The Cadet Programme

Apprenticeship Programme

Farmer Support Centre

Technical and Advisory Services

Mentorship

Mobilization of input suppliers and buyers

Assist with business plans etc.

Franchise Development Cost Centre

Promote high value commodities

Facilitate partnerships in line Industrial Development

Zones

Design agri village modelsVocational training

programme

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KEY DELIVERABLES OF ACADEMY

The Starter Finisher Cost Centre

CADET PROGRAMME: Contributing to skilled and capable workforce to support an inclusive growth path

STRATEGIC OBJECTIVE

STRATEGIC OUTCOME

OUTCOME INDICATOR

BASELINE TARGETS

2011/12 – 2015/16Provision of industry focussed and occupation directed training.

Enhance agrarian reform.

Development of accredited and cadet programme.

No. of cadets completed the training.

0

National Skills Development Strategy III.

An approved cadet scheme by the Board. 200

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KEY DELIVERABLES OF ACADEMY (CONT….)

STRATEGIC OBJECTIVE

STRATEGIC OUTCOME

OUTCOME INDICATOR TARGETS

2011/12 – 2015/16

Provision of industry focussed and occupation directed training.

Enhance agrarian reform

Adaptation of an industry focussed apprenticeship certificate.

No. of apprentice registered

Accredited as an apprenticeship provider.

0 100

The Apprenticeship programme: Contributing to skilled and capable workforce to support an inclusive growth path

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Vocational Training Programme: Contribution to skilled and capable workforce to support and inclusive growth path

STRATEGIC OBJECTIVE

STRATEGIC OUTCOME

OUTCOME INDICATOR

TARGETS

2011/12 - 2015/16

Provision of industry focussed and occupation directed training.

Increase access to training by community members.

Enhance agrarian reform

Approved training programmes for community development.

Secure approval to offer NQF level 2 and 4 certificate in farming from Agri SETA.

Secure approval as a centre offering International Computers Licence Certificate ICDL for the for the benefit of community members.

Offer accredited NQF aligned modules and certificates to 50 community members a year.

Offer ICDL modules to 25 community member per year.

KEY DELIVERABLES OF ACADEMY (CONT….)

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Farm support cost centre contributing to vibrant, equitable, sustainable rural communities contributing towards food security for all

STRATEGIC OBJECTIVE

STRATEGIC OUTCOME

OUTCOME INDICATOR

TARGETS

2011/12 - 2015/16 Creation of one stop shop farmer support centre through partnerships and resource mobilisation.

Improved support mechanism for food production at subsistence and smallholder level.

Coordinated support mechanism for food production at subsistence and smallholder level.

A comprehensive support package developed for farmers leasing land.

50 farmers owning land through the land reform supported a year.

KEY DELIVERABLES OF ACADEMY (CONT….)

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The Franchise Development Cost Centre contributes to three outcomes: Outcome 4, 7, 8

STRATEGIC OBJECTIVE

STRATEGIC OUTCOME

OUTCOME INDICATOR

TARGETS

2011/12 - 2015/16

Increase the level of public and private investment for agricultural products and contribute to the organisational growth and sustainability.

Pioneering sustainable agri villeges

Local economic growth.

Decent employment.

Cohesive, caring and sustainable communities.

Increase income levels of households within 30 km radius of NCERA farms.

Reduction in unemployment.

An established Agri Village.

Increase no. of hydroponics structures from 2-4 within the centre.

Develop a business plan in support of the franchise model.

Develop an Agri Village Settlement plan

Establish 2 hydroponic plants per villages per year.

Implement the franchise model.

Implement the Agri Village Development Plan.

KEY DELIVERABLES OF ACADEMY (CONT….)

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FINANCE MECHANISMS

The budget is based on the Medium Term Expenditure Framework whereby a detailed budget is provided for the first year 2011/12 and indicative figures are outlined for the outer two years. The allocated budget for 2011/12 is R2968 000 for 2012/13 is R3116 000 and R3267 000 respectively.

The budget seek to respond to the identified challenges as outlined in the strategic plan as well as the need to maintain the entity.

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FINANCE MECHANISM CONT….

R’000Transfer DAFF 2968Plus own Revenue 781

Total Amount Available 3749

Budget Expenditure in terms of cost centre R’000Administration 2665Livestock 58Dairy 1078Vegetables 56

3852

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In order to implement the proposed deliverables in the strategic plan the following interventions are proposed for implementation:

FINANCE MECHANISM CONT….

Close the dairy enterprise and expand the production of vegetables under hydroponics.

Eastern Cape Department of Rural Development and Agrarian Reform second officials to NCERA for the rendering of commodity driven extension in the area thus cutting down personnel cost.

Fast track the process of accreditation of programmes in order to access funds from SETAs and the National Skills Fund.

DAFF component responsible for state land administration re capitalise the farms.

Forge partnership with Federal Republic of Germany to second personnel to assist in the design of the academy.

DAFF component responsible for Sector Capacity to avail human and financial resources to support the creation of the academy.