ARC Annual Report 2008/2009

144 Pages·2009·6.46 MB·English

by  Nicholas Mashaba

ARC Cover 40947 9/4/09 10:57 AM Page 1
C M Y CM MY CY CMY K
ANNUAL Report
2008/09
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PO Box 8783, Pretoria 0001
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ISBN 978-1-86849-383-8
RP 199/2009 Agricultural Research Council
GRAPHICOR 40947
Composite
ARC Cover 40947 9/4/09 10:57 AM Page 1
C M Y CM MY CY CMY K
ANNUAL Report
2008/09
A
N
N
U
A
2
0L
0
8R
/0e
9
p
o
r
t
PO Box 8783, Pretoria 0001
Tel: [phone]
Fax: [phone]
www.arc.agric.za
ISBN 978-1-86849-383-8
RP 199/2009 Agricultural Research Council
GRAPHICOR 40947
Composite
Vision
To achieve: Excellence in Research and
Development.
Mission
The Agricultural 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.
01 Agricultural Research Council
Contents
3 Message from the Chairperson
4 The ARC Council
5 Message from the President and CEO
10 The ARC structure
11 Executive report
15 Research and development
16 Animal health
16 ARC-Onderstepoort Veterinary Institute
21 Animal production
21 ARC-Animal Production Institute
25 Grain and Industrial Crops
25 ARC-Grain Crops Institute
26 ARC-Small Grain Institute
27 ARC-Institute for Industrial Crops
28 Grain and Industrial Crops: Research and development highlights
34 Horticulture
34 ARC Infruitec-Nietvoorbij
35 ARC-Institute for Tropical and Subtropical Crops
37 ARC-Vegetable and Ornamental Plants Institute
39 Horticulture: Research and development highlights
45 Natural Resources and Engineering
45 ARC-Institute for Agricultural Engineering
46 ARC-Institute for Soil, Climate and Water
48 ARC-Plant Protection Research Institute
49 Natural Resources and Engineering: Research and development
highlights
54 Technology Transfer
58 Achieve organisational growth and sustainability
58 Financial overview
62 Human Capital and Support Services
72 Publications 2008/09
84 Governance of the ARC
93 Annual financial statements
136 Acronyms
Agricultural Research Council 02
Message from the Chairperson
the continued underfunding of the ARC which seriously
impacts its ability to deliver on its mandate. This in turn
means that the ARC is unable to attract and retain key
science staff.
I now wish to extend my deepest appreciation to the
Honourable Minister for support of the ARC and its work.
I also wish to extend my appreciation to my colleagues on
Ms Jean Nobantu Davidson
the Council as well as the members of the committees,
Chairperson of ARC
the President and CEO, his executive team, management
Council
and staff. The many clients and customers of the ARC also
deserve a word of appreciation as they are our partners in
On behalf of the Council of the Agricultural Research the important field of scientific agricultural research. Our
Council (ARC), I hereby present the ARC’s annual report scientists, technologists are very important and are central
for the year 2008/2009 to the Parliament of the Republic to the ARC in the achievement of its objectives, so to
of South Africa and to the Honourable Minister of them I say thank you for all the hard work and efforts.
Agriculture, Forestry and Fisheries.
We look forward to a successful year and to being able to
I also by way of introduction wish to take this opportunity meet the challenges facing us as we aim to continue
to congratulate Ms Tina Joemat-Pettersson on her fulfilling the mandate given to us by government.
appointment as Minister of Agriculture, Forestry and
Fisheries. We sincerely look forward to working with the
Honourable Minister and to be of continued assistance to
the new Department.
The ARC has now gone some way in completing its
transformation process with the final implementation of Jean Nobantu Davidson
the new organisational structure towards the end of 2008. Chairperson, ARC Council
In addition hereto, the Council of the ARC, together with
the President and CEO and management, has as part of August 2009
transforming the ARC adopted a strategic direction at the
Council Strategic Session during December 2008. This
new turnaround strategy it is hoped will despite, the
current economic climate and other challenges, bear fruit
for the ARC and all its stakeholders. The President and
CEO and management remain committed to ensure the
implementation of the new strategic direction as approved
by the ARC Council.
The ARC is also in the process of aligning the strategic
direction with the anticipated new mandate of the new
Department which now also comprise Forestry and
Fisheries. All these efforts should culminate into an
improved delivery of services to the ARC’s stakeholder
including emerging and commercial farmers.
The Council of the ARC has taken note of the findings of
the Auditor-General as regards the annual financial
statements of the ARC and will implement the
recommendations by the Auditor-General as proposed by
the Audit Committee. Certain challenges remain such as
03 Agricultural Research Council
The ARC Council
Ms Jean Nobantu Davidson
Chairperson
Ms Nothemba Mlonzi Dr Shadrack Moephuli
Deputy Chairperson President and CEO
Prof Mbudzeni Sibara Prof Pauline Kuzwayo Dr Mmbofheni S Liphadzi Dr Mamisa Chabula
Resigned April 2008
Ms Marjorie A Pyoos Prof Michael Kahn Ms Ina Wilken Mr André Young
Dr Mzwandile Madikizela Mr James McBain Ms Ansoria Geldenhuys Dr Marinda Visser
Appointed November 2008
Agricultural Research Council 04
Message from the President and CEO
• Effective veterinary services and systems require
people with relevant and updated skills, consistent
with the new local and international findings made
through research and new product development.
• It is in the interest of all of us, especially in the face of
adverse global conditions which have a negative impact
on food security, to work together to ensure that our
Dr Shadrack Ralekeno
people do not face the spectre of hunger and starvation.
Moephuli
• Government is convinced of the fact that the
President and Chief
agricultural sector is critical to the economic
Executive Officer
development of rural areas and the country as a whole,
because of its potential to:
On behalf of management and staff, it gives me pleasure to – create work, both as a direct employer and through
present the annual report of the Agricultural Research its linkages to other sectors;
Council (ARC) for the financial year 2008 to 2009 that – provide the basis for sustainable livelihoods and
ended on 31March 2009. small business development on a mass scale in
rural communities;
This annual report is representative of the business results – raise rural incomes and build local economies; and
of the ARC in accordance with the mandate as per the – ensure the efficient production of affordable food
Agricultural Research Act, 1990 (Act No 86 of 1990), as and other wage goods, assure food security for the
amended). As per the science and technology governance poorest, and contribute to a climate of low
system, the organisation has been under full budgetary inflation.”
control of the Department of Agriculture, now called the
Department of Agriculture, Forestry and Fisheries. On This annual report provides further testimony to the
matters of science and technology, the ARC has reported, President’s remarks.
interacted and received some support from the
Department of Science and Technology. This dual The report marks the second full year of implementation of
reporting and interaction has been instrumental in the Strategic Plan for the period 2007/08 to 2011/12.
providing the necessary stewardship for the continuous Briefly, the organisation has performed well to achieve its
improvement in the performance of the ARC. Most desired objectives as outlined in the Business Plan for the
importantly has been the ARC’s focus on delivering on the financial year 2008/09.
needs of all its customers, particularly those in the
farming sector at various levels of economic development. This report is further testimony that the organisation is
delivering practical and necessary solutions required by
Three institutions at Onderstepoort, namely the ARC other role players which, in turn, enable them to deliver
formally known as Onderstepoort Veterinary Institute services required throughout the agricultural sector. The
(OVI), University of Pretoria and the Onderstepoort ARC continues to advance the range of options available to
Biological Products (OBP) Company, celebrated 100 years producers throughout the value chain, from the most
of veterinary excellence in October 2008. The humble farmers to the largest commercial agri-business
celebrations culminated in the hosting of the Pan African enterprises and the consumers. Programmes to address the
Veterinary Conference and the unveiling of the bust of needs of resource-poor farmers continue to deliver the
DrJotello Festiri Soga, the first black South African desired results. Further, as a result of the ARC’s
veterinary surgeon. Prof Ivan Horak was presented with performance and contributions, the agriculture sector’s
the “Arnold Theiler” award. competitiveness continues to improve.
In his speech marking the centenary of animal disease In addition to addressing the direct needs of stakeholders in
research at Onderstepoort, the country’s President, the the sector, the ARC impacts others beyond agriculture. All
Honourable Mr Kgalema Motlanthe, emphasised the vital consumers of food products in South Africa are benefiting
role of the ARC in the agricultural sector by stating the from research results and innovations developed by the ARC
following: to ensure food security, improve food safety, food quality and
• “(Agricultural science) will go a long way towards nutritional content, as well as sustainable use of natural
improving human and indeed, animal condition. resources.
05 Agricultural Research Council
Message from the President and CEO
(continued)
Research and development of R4,1 billion, is undertaken by honey bees. For the first
time in the history of South Africa, a devastating bacterial
In the year under review the ARC successfully achieved its
disease of honeybee colonies was found by the ARC. This
objectives as outlined in the Business Plan for the
disease is threatening South Africa’s apiculture and crop
financial year 2008/09. The organisation has in some
industries that rely on honeybees for pollination. In
instances exceeded expectations on performance in
response, the ARC has established a dedicated research
various areas that have been reported under each strategic
laboratory to test for AFB (American foulbrood) in honey
objective.
and brood samples for the presence of the disease,
particularly aimed at eliminating and managing the
The concerted effort towards delivering on the first
possible spread of AFB to other parts of South Africa.
strategic objective, namely to generate, develop and apply
new knowledge and technology, is beginning to bear fruit.
In order to enhance nutrition, food security and safety, the
For example, the ARC has exceeded its target of
ARC conducted a number of cultivar evaluations for various
publishing peer-reviewed scientific articles/chapters
grain crops throughout the country. In examining the ARC
inbooks by 107%. This is a significant achievement
barley cultivar Puma under dry land conditions, several key
considering that the organisation has published
observations were made. Under these conditions the
201articles with a research staff complement of no more
cultivar yields were exceptional at 5,3 tons per hectare. Its
than 180 with PhD degrees. Further improvements could
malting quality with kernel plumpness of 96% was also
be achieved with innovative efforts of recruitment and
exceptional, while maintaining good grain nitrogen
retention of staff.
content. These results also suggest the cultivar could be a
good source of animal feed; hence it will now be marketed
To enhance the ability of the agriculture sector to manage
as a dual-use product.
and mitigate agricultural risks, the ARC continues to
conduct research and provide diagnostic and analytical
The ARC has contributed significantly towards sustainable
services. This includes conducting epidemiological surveys
use of natural resources. A study was undertaken of the
to provide for early detection of possible disease-causative
erosion status of three priority tertiary catchment areas
agents. For example, in collaboration with the Department
identified for the country’s proposed SoilProtection
of Agriculture, Forestry and Fisheries (DAFF) and
Strategy. Remote sensing and modelling techniques were
provincial veterinary authorities, the ARC actively surveyed
used to produce a series of monthly erosion prediction
wild bird populations for possible presence of the avian
maps which showed a summer dominant erosion pattern
influenza virus. (66 to 80% erosion occurs between November and April).
The area of land with amoderate to extremely high erosion
During the reporting period 2 240 wild bird population risk (more than 12 tons per hectare per year) totals
samples from 33 species collected across the country 31613ha (5%), 132 356 ha (33%) and 251 998 (51%)
were processed and 1% tested positive for the avian in the Limpopo, KwaZulu-Natal and Eastern Cape
influenza virus, with less than 0,12% positive for the catchments respectively. More accurate gully erosion
H5gene. This highlights the importance of developing maps were also produced, which will allow improved
additional typing reagents to detect all 15 serotypes. To understanding of erosion processes and causes. The
further expand the capacity to diagnose influenza, two results of this research study will allow improved decisions
new assays were developed. A new indirect ELISA to on intervention strategies, such as LandCare and soil
detect avian influenza antibodies in ostriches was rehabilitation (protection) programmes.
developed. The test has been validated by the OIE (World
Technology transfer
Animal Health Organisation) reference laboratory and is
ready for commercialisation. The assay will assist the The 10-year Innovation Plan for South Africa under the
ostrich industry to detect avian influenza (H5N2) in their stewardship of the Department of Science and Technology
flocks, thereby enhance market access domestically and is instructive for science councils such as the ARC. This
internationally. plan argues that products of public investments in research
and development are crucial for South Africa to realise the
Research has shown that more than 90% of pollination of promise of enhanced quality of life, economic development
deciduous fruit in the Western Cape, with an export value and improved international competitiveness. Therefore,
Agricultural Research Council 06
publicly funded institutions such as the ARC are expected and recent success he is now busy expanding to
to translate results of their research and development into commercial level by planting an additional 6 hectares of
products that contribute to economic growth and bananas. Another beneficiary producing avocados has
development. To fulfil this requirement and attain the achieved the second highest export pack out in Levubu,
expected outcomes, the ARC has identified technology illustrating that small-scale farmers can compete with
transfer as a strategicobjective. experienced commercial farmers and supply a high-quality
product for global markets. The impact of these successes
In the year under review the ARC developed and is already visible in that it has raised the interest of other
implemented an Intellectual Property (IP) policy. This beneficiaries to achieve similar levels of success. The
policy is aimed at enabling the organisation to effectively project serves as an example of what can be achieved in
manage its intellectual property, primarily to enhance terms of wealth and job creation in rural areas.
value in the agricultural sector and the economy.
Managing our finances to grow the business
Successful management of ARC intellectual property is Managing our finances remains one of the key
demonstrated by the filing and registration of 25 patents performance indicators of the organisation in all areas.
and other IP (mainly plant breeders’ rights), which This is not limited to the Finance Division, but applies to
exceeded the target for the year by 250%. During the all employees. Our aim is to ensure that we derive and
review period six PBR applications filed in previous years deliver maximum value from all resources deployed within
were granted, including a Protea variety (Lady Pearl) and the organisation.
two wheat varieties (Buffels and Tankwa). Altogether
10trademarks were granted, including a new class
A 10-year review of finances has revealed that the main
registration for Inyosi Honey®. A patent owned jointly with
source of revenue is the parliamentary grant received
Kemira Phosphates has been registered in South Africa,
through the Minister of Agriculture and Land Affairs.
New Zealand and India.
Although the amount of this grant remained relatively
constant in the period 1999 to 2003, a positive upward
In our effort to enhance nutrition, food security and safety,
trend emerged from the 2004 financial year, which served
the organisation embarked on a number of initiatives. For
to inject human capital capacity. However, the overall
example, 21 076 fruit and nut trees were planted in
trend for 10 years suggests underinvestment in the
1500 homesteads in the OR Tambo and Amatole
organisation by all stakeholders (public and private).
districts, this makes a total of 72 000 subtropical trees
Increments in annual parliamentary grant allocations have
grown in these areas. Many of the rural farmers are already
remained below the critical 6% year on year, which is
harvesting and selling fruits (avocado, mango and banana)
important to sustainably manage the impact of inflation
from these trees, which provide household income.
on the organisation’s resources. The net effect has been
Further, approximately 200 training and demonstration
the inability to retain and recruit skilled personnel, which
workshops were conducted at 52 participating villages on
in turn has resulted in a steady decline in scientific
all aspects of subtropical crop production. This marks the
publication and other research outputs in the ARC.
second year wherein the Integrated Village Renewal model
was used with participating communities for sustainable
food production. As a science council we are reliant on investing in human
capital and knowledge management, which explains why
The ARC has been engaged in training 50 small-scale the remuneration costs remain high at 100%, as a
farmers in production of several subtropical fruit crops. proportion of the parliamentary grant. However, the ratio
One of the beneficiaries planted 4 hectares of bananas of remuneration costs to total expenditure has stabilised
during October 2007 under supervision of an ARC banana from a high of 65% in the financial year 1999/00 to 60%
specialist and was able to harvest the first crop as early as in the year under review. We continue to examine and
November 2008. The bananas were of superior quality and manage human capital costs, particularly with reference
there was increased demand for this excellent product on to ensuring that the organisation and the country can
markets in the Vhembe district of Limpopo. This small- retain and recruit appropriate expertise. Needless to
scale producer has continued to follow the guidance of the say,it is important to continue investing in agricultural
ARC experts meticulously and given his current knowledge research, particularly the ARC.
07 Agricultural Research Council
Message from the President and CEO
(continued)
In the year under review the organisation implemented Where these were identified, appropriate corrective actions
improvements in internal controls, particularly through the was taken, including disciplinary measures and
revised Supply Chain Management Policy. Other prosecutions. For example, a case of fraud/theft was
improvements included recruitment of experienced and discovered through the ARC’s internal controls and criminal
skilled personnel within the Finance Division throughout charges were laid upon the individual. This matter was
the organisation. Implementation of these improvements successfully prosecuted and the ARC recovered at least
meant stricter internal controls, which would likely expose 85% of the funds lost from this action. Management is
weaknesses in the system. confident of recovering any remaining amount through the
judicial processes during the financial year 2009/10.
It was noted that towards the previous year-end (March The same measures will continue to be applied in the
2008) some balance sheet accounts within the organisation inall cases of non-compliance.
organisation, although reconciled on a regular basis,
Human resources
contained long-outstanding items, going back to
2003/04. At the beginning of 2007/08 an exercise of The ARC, as one of the science councils in South Africa,
clearing the reconciling items on the balance sheet considers human resources as its most important asset. In
accounts was started. The reconciliation exercise revealed the year under review a number of milestones were
that there were entries that had been processed in prior reached as reflected in this annual report. Successes
years that did not have supporting documents or reflected in the attainment of all the strategic objectives
explanation. In this exercise, the following were identified of the organisation serve as testimony to the excellent
as problem areas that had to be corrected: VAT, income performance of all personnel.
received in advance, deferred capital expense, and various
statement of financial position accounts, the net effect of In the year under review the ARC embarked on an
which totalled R26 312 520,04. These entries were organisational design (OD) process of aligning its human
cleared into the income statement of financial resources (capacity and skills) with the requisite
performance in the 2008/09 financial year. These deliverables as identified through the strategic plan. This
amounts were material and disclosed in the financial
entailed a comprehensive process of reviewing individual
statements.
competencies and aligning them to specific job profiles,
then matching and placing people to specific posts. The
The net result of the above corrections was a qualified
project was completed in the year under review.
audit opinion from the Auditor-General. The basis of the
qualified opinion from the Auditor-General is explained in
Considerable effort was made towards improving relations
the report contained on page 97. Except for this opinion,
with organised labour. This resulted in effective
the financial statements accurately reflect the position of
management and timeous resolution of disputes. Further,
the ARC. The clearing of these accounts will ensure that
it provided an appropriate atmosphere of improved
the financial statements of the ARC are accurate going
communication for implementation of new initiatives,
forward, and controls have been put in place to ensure
including the organisational design process.
that such errors do not occur in the future.
The ARC acknowledges that the generation and diffusion
Weaknesses in the supply chain management system are
of technology and management capabilities for more
addressed on an ongoing basis. Irregular expenditures
intensive and modernised agriculture and supporting
which are identified through our internal controls, internal
services are imperative and these can only be achieved by
audit as well as external audits are investigated and dealt
upgrading the quality of human resources employed in the
with, and appropriate steps are taken to avoid recurrence.
ARC, hence there is such emphasis on empowering our
workforce. Our investment in training and development for
Special thanks to the external auditors for a detailed and
staff resulted in approximately 672 staff across the ARC
professional audit.
attending various training initiatives, courses and
Other matters of non-compliance continue to be identified conferences during the 2008/09 financial year.
by internal controls and in some instances by the external
auditors. It is important to note that incidents of fraud/theft
have decreased significantly in the year under review.
Agricultural Research Council 08