3. PPECB Annual Report 2009-2010

statutory operations overviewThe focus of Statutory Operations for the period under reviewwas on business processes for efficacy, risk managementand consistency in execution. For this reason, optimisationof operational processes, a review of current businessprocesses in lieu of ISO 17020 accreditation, as well asharmonization were priorities of the Statutory Operationsstrategic deliverables.Focus was subsequently placed on the HarmonizationProgramme supportive to the aforementioned objectivesand providing the mechanism for consistency, therebyenhancing the credibility of the South African exportcertification process recognized under the EU 1580accreditation for third country exports to the EU. Key businessprocess engineering projects included inter alia the“Alternative Sampling Methodology Project” which gainedsome momentum with DAFF acknowledging the risk-basedsampling approach on quality inspections. Pilots are currentlyunderway to explore different sampling systems in 4 mainproduction regions to gather sufficient data for addressingconcerns around phytosanitary risk-based sampling.Statutory Operations has strengthened the engagement withDAFF and key partners in managing South Africa’s risks inthe export value chain. For this reason, internationalinterceptions for phytosanitary risks like Citrus Black Spot(CBS) have placed a renewed focus on local controls andthe PPECB’s support towards influencing policy in this regard.Following the adoption of a new CBS risk managementsystem mid citrus season in 2009, Statutory Operations staffand supportive programmes should be applauded for themanner in which they responded to this challenge.Preventative measures inherent within the PPECB Cold Chaindelivery system, continued to support risk managementpractices, prior or during shipments, thereby contributingtowards significant savings for logistical companies andshipping lines. These measures involving the monitoring ofrefrigeration and temperature management en route overlong distances contributed towards South African exportperishables reaching established and new markets in optimumquality. The PPECB Cold Chain monitoring function, coupledwith the integrated management of cargo temperaturebetween PPECB, exporters and lines has lead to a uniquevalue added service, one of a kind in the world of shipping.Concerning the financial results of this R116 million businessunit, cost recovery was favourable across all service typeshowever cost management practices posed continuedchallenges bearing in mind a steady increase in inlandcontainerisation and door-to-door containerised shipping.Despite these challenges, Statutory Operations managed topost positive year-end financials and maintained ourcontribution towards company overheads.Programme: HarmonizationThe Harmonization Programme, with its key objective ofensuring uniform interpretation and application of productquality standards and Cold Chain protocols and processescountrywide, finds itself within its second year since formaladoption within the organization in 2008. The internationallybenchmarked harmonization system is now operationalwithin the main commodity products handled by the PPECBat inspection level, and emerged in several disciplines of thePPECB Cold Chain system during the review period. Withthe objective of consistency and uniformity at the forefront,a considerable effort is put into developing the skills andknowledge of new technical personnel as a baseline forensuring consistency over time. The HarmonizationProgramme therefore committed to no less than 4 internaltraining interventions based on an accelerated skills transferprogramme charter uniquely developed for PPECB inspections.46PPECB | annual report | 2009 - 2010