NATIONAL COUNCIL OF PROVINCES
WRITTEN REPLY
QUESTION 400
DATE OF PUBLICATION: FRIDAY 22 OCTOBER 2010 [IQP No 29 -2010] SECOND
SESSION, FOURTH PARLIAMENT
Question 400 for Written Reply, National Council of Provinces: Mrs A.N.D.
Qikani (ANC-EC) to ask the Minister of Agriculture, Forestry and Fisheries:
(1) How many applications her department has received under the
administration of the (a) Fertilizers, Farm Feeds, Agricultural Remedies
and Stock Remedies Act, Act 36 of 1947, and (b) Medicines and Related
Substances Act, Act 101 of 1965, which regulate the application processes
from fertilizers to medicines;
(2) whether there is any backlog in the application process; if so, (a)
what is the average time it takes to process applications, (b) what are the
reasons for the backlog and (c) what measures will be put in place to
improve the efficiency of the system;
(3)(a) how many broad-based black economic empowerment companies have
applied in the past four financial years and (b) what is the total cost per
annum of these applications to the economy;
(4) whether her department has a preferential procurement policy in place
to support such companies; if not, why not; if so, what are the relevant
details;
(5) whether her department has any plans in place to reduce the high input
costs of agricultural enterprises as experienced by farmers; if not, why
not; if so, what plans? CW508E
REPLY:
1. Total number of applications received under Act 36 of 1947 for period
April 2009 to March 2010.
⢠Stock Remedies = 859
⢠Pest Control Operator = 649
⢠Agricultural Remedies = 7008
⢠Farm feeds = 3,477
⢠Fertilizers = 563
The overall total is = 12 556
2. (a) Yes. There was a backlog in the area of Stock Remedies and
Agricultural Remedies.
Average time it takes to process the applications per category*
⢠Stock Remedies 20 months
⢠Pest Control Operator 5 months
⢠Agricultural Remedies 16 months
⢠Farm feeds 5 months
⢠Fertilizers 5 months
*Average time is based on human resources available in relation to the
volume of the work, type of the applications and the quality of dossier
that we received. The average time indicated is based on complex
applications. Minor applications take far shorter time.
(b) The reasons for backlog were as follows:
⢠There is an increased number of applications being received in
relation to the capacity available
⢠Certain technical posts were vacant
⢠Lack of expertise in areas like toxicology and veterinary
pharmacology
⢠Lack of interests by consultants to assist due to low market
salary
⢠Poor quality of applications received from the applicants
(c) Measures put in place to improve the efficiency of the system
⢠All vacant technical posts have been filled
⢠Hour rate normally paid to consultants has been increased to make
it more attractive to consulted
⢠Additional consultants were appointed
⢠Conditional registration system for products that require
toxicological evaluation has been introduced
⢠Communications with the clients regarding data gaps in their
registration applications have been improved
⢠The backlog which used to be there has been drastically reduced
⢠Additional posts have been created and recruitments processes are
underway.
3a) The Department has no system in place to track registration in
terms of ownership structure and it is not a requirement for
registration. Registration is demand-led and depends on the
capacity of companies to enter and compete in the sector.
3b) Except for application fees that each company pays to the DAFF
(Revenue to National Treasury), the cost to the economy is not
possible to detect until the companyâs product has been in the
market. Registration fees differ depending on the type of
application. The fees ranges from R65 to R6000 per product
submitted for registration.
4. Preferential procurement framework does not apply in this instance as
it applies to instances where government purchases goods or services.
Registration of products under Act 36 is demand-led from private
companies.
5. The issue of high input costs does not apply in this instance since
only when products are in the market can buyers compare prices for
each brand of products sold. Registration under Act 36 ensures
competition due to variety of products being registered for the same
function, e.g. fertilizers and other agro-chemicals.
However, DAFF is providing mechanization packages and in some
instances fertilizers and seed packages to small-scale farmers to
enable them to plant during the seasons.