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Cover of Oilseeds Focus Vol 5 No 2 March 2019
WORKGROUP MINUTES ARCHIVES SA GROUNDNUT FORUM 2011 1 February 2011
PLEASE CLICK ON THE LINKS BELOW TO VIEW INDIVIDUAL FILES
 NOVEMBER 2011 30 MARCH 2011 1 FEBRUARY 2011
MINUTES OF A MEETING OF THE
SA GROUNDNUT FORUM
HELD ON 1 FEBRUARY 2011 AT 10:00 AT THE OFFICES OF THE OILSEEDS INDUSTRY, WOODMEAD EXT ONE
1. OPENING

 

The meeting was opened with prayer offered by Mr P van Wyk.

2. WELCOME

 

The Chairperson, Mr JCG du Preez, welcomed all present.

3. ATTENDANCE
 
Present Mr JCG du Preez Chairperson
  Ms R Beukes DAFF
  Mr R Cloete PPECB
  Mr AM Cronjé Tiger Brands
  Mr O de Witt Praxia Trading
  Mr GT du T Keun CEO: OPDT/OAC
  Mr G Farinha Blancom
  Mr W Higgs Triotrade Gauteng
  Mr H Lazarus SA Groundnut Marketing
  Mr W Lemmer GrainSA
  Mr V Mapfumari DAFF
  Mr M Mosome DAFF
  Dr D Naicker PPECB
  Mr R Nerwich The Snack Factory
  Mr GC Nortjé GWK
  Ms AE Pretorius ARC-GCI
  Mr W Roux Safrinut
  Ms L Salomon ARC-GCI
  Ms A van Deventer Praxia Trading
  Dr WJ van der Walt SANCU
  Mr P van Heerden PPECB
  Mr P van Wyk VGM
  Mr A Visser P Farm
  Ms E Harmse Secretariat
 
Apologies Mr P Botha GrainSA
  Mr GL de Kock (sr.) Roba Nuts
  Mr GL de Kock (jr.) Roba Nuts
  Dr J Dreyer ARC-GCI
  Ms A Enslin SAGIS
  Mr N Hawkins GrainSA
  Mr C Mathews Department of Agriculture: Mpumalanga
  Mr G Reitsma SANSOR
  Mr GJH Scholtemeijer Oilseeds Advisory Committee
 
4. PERSONALIA
 

None reported.

5. FINALISATION OF AGENDA
 

The agenda was accepted as it stood, with the addition of:

• Item 10.3: EU Visit;
• Item 10.4: Research proposal on aflatoxin; and
• Item 10.5: Import tariff on groundnut products.

6. APPROVAL OF MINUTES
6.1 Approval of the minutes of the meeting of the SA Groundnut Forum held on 3 November 2010
  Resolved:
6.1.1 That the minutes of the meeting of the SA Groundnut Forum, which was held on 3 November 2010, be accepted as a true and fair reflection of that meeting.
7. MATTERS ARISING
7.1 Sustainability of the groundnut industry
(Resolutions 7.3.1 to 7.3.3 of the SA Groundnut Forum minutes of 3 November 2010)
 

It was noted that both the National Agricultural Marketing Council (NAMC) and the Bureau for Food and Agricultural Policy (BFAP) had submitted research proposals with regard to a study on the sustainability of the local groundnut industry.

Mr Visser confirmed that the mechanisation day that was planned for April or May 2011 was still on the cards. Mr Keun mentioned that the proposed oilseeds study tour was planned to take place in either June, July or August 2011.

Mr Nerwich raised the matter of certain local companies overcontracting and as a result not honouring their commitments to export markets. He said this reflected negatively on the local industry as a whole. Following on an extensive discussion of the issue, a subcommittee consisting of Messrs Farinha, Lazarus, Nerwich and Van Heerden was appointed to address the matter, as it was considered to be quite complex, and would not be resolved by that discussion. The committee was requested to draw up recommendations by the first of March 2011. It was also resolved that the SA Groundnut Forum would in the interim appeal to the industry to be cautious and disciplined on what they committed themselves to during the new production season.

  Resolved:
7.1.1 That it be noted that the Research Priority Committee will consider research proposals with regard to a study on the sustainability of the local groundnut industry at their next meeting.   Mr Keun
7.1.2 That a subcommittee consisting of Messrs Farinha, Lazarus, Nerwich and Van Heerden be appointed to address the matter of certain local companies overcontracting and as a result not honouring their commitments to export markets, and to draw up recommendations in this regard before the first of March 2011.   Messrs Farinha,
Lazarus, Nerwich,
Van Heerden
7.1.3 That the SA Groundnut Forum would appeal to the industry to be cautious and disciplined on what they committed themselves to during the new production season.   Mr Keun
7.2 Aflatoxin results
(Resolutions 7.7.1 and 7.7.2 of the SA Groundnut Forum minutes of 3 November 2010)
 

Ms van Deventer mentioned that the aflatoxin task team concerned itself with the broader issue of aflatoxin, and not only with statistics and rejections. She reported that the PPECB had completed their internal audit on aflatoxin early in January. She said the task team had met in January to discuss the pre-mission questionnaires received from the European Commission, Food and Veterinary Office, with regard to the mission to be carried out in South Africa from 15 to 24 March.

It was noted that the Export Standards and Requirements on groundnuts regulated groundnuts intended for human consumption only. The Chairperson said Mr Makhafola had informed him that the dispensations that had been granted and withdrawn for exports intended for the bird food market would be reinstated for a certain period. He mentioned that Mr Makhafola had also informed him that a clause would be added to the Agricultural Products Standards Act in order to make provision for the bird food market.

7.3 Chemical residues in EU
(Resolution 7.8.1 of the SA Groundnut Forum minutes of 22 July 2010)
 

Mr Keun reported that he could not source an entity with the necessary capacity to compile a list of chemical agents applicable to the groundnut industry. He suggested that the matter be referred to the Oilseeds Advisory Committee, with the view to registering a project in this regard. He said he could approach Dr Saayman-Du Toit in this regard. Dr van der Walt mentioned that Mr Les Hillowitz at Croplife International could also be of assistance.

  Resolved:
7.3.1 That the matter with regard to the compilation of a list of chemical agents appicable to the groundnut industry be referred to the Oilseeds Advisory Committee, with the view to registering a project on said matters.   Mr Keun
7.3.2 That Dr Saayman-Du Toit of the ARC-GCI and Mr Les Hillowitz at Croplife International be approached for advice on the compilation of a list of chemical agents applicable to the groundnut industry.   Mr Keun
7.4 Peanut butter – Gauteng feeding scheme
(Resolution 7.9.1 of the SA Groundnut Forum minutes of 3 November 2010)
 

The Chairperson said he would follow up on the resolution that the relevant authorities are to be contacted to determine what had motivated the Gauteng Education Department to delete peanut butter from the list of approved food in their feeding scheme.

  Resolved:
7.4.1 That the relevant authorities be contacted to determine what had motivated the Gauteng Education Department to delete peanut butter from the list of approved food in their feeding scheme.   Mr du Preez
7.5 Competition Commission
(Resolution 7.10.1 of the SA Groundnut Forum minutes of 3 November 2010)
 

Cognisance was taken that a list of issues that are not to be discussed at Forum meetings will be included in the documentation of the next meeting. Mr Keun reported that the National Agricultural Marketing Council (NAMC) had compiled a questionnaire on the type of information required by the various industries, as the contention was that the Forums' discussions had been restricted by the Competition Commission's activities. He said the NAMC intended to organise workshops to discuss the outcome of their survey, to which the various role players would be invited.

  Resolved:
7.5.1 That it be noted that a list of issues that are not to be discussed at Forum meetings will be included in the documentation of the next meeting.   Mr Keun
8. INDUSTRY INFORMATION AND MARKETING ASPECTS
8.1 SAGIS – General feedback and market information
 

The members took cognisance of the market information prepared for the Groundnut Forum by SAGIS, as well as the SAGIS weekly bulletin dated 18 January and the monthly bulletin dated 22 December.

8.2 Crop and Area estimates
 

Cognisance was taken that the final calculated groundnut crop for the 2009-2010 production season stood at 88 000 tons, which was 9.9% less than the previous ten year average crop, but 14,5% more than the previous five year average crop. It was also noted that the average yield per hectare of 1,53 tons per hectare was 15,9% lower than the previous season's 1,82 tons per hectare.

Ms Beukes informed the members that the estimated area planted to groundnuts in the 2010-2011 production season was 54 550 hectares, which represented a decrease of 5,0% compared to the previous production season. She said the estimated area will be revised the following month, when the inputs of the processors and the consortium will be taken into account.

9. FEEDBACK: GROUNDNUT INDUSTRY ROLE PLAYERS
 

Various members reported on the production conditions that had to be contended with at that time. It was noted that there was some concern about the wet conditions, especially in certain areas of the Free State. Mr Visser mentioned that he, as a farmer, was concerned about the economic sustainability of groundnut production. Ms Salomon raised her concern about the quality of the groundnut seed that had been distributed during that production year. Dr Van der Walt explained what control systems were in place to monitor the quality of groundnut seed. He said complaints could be directed to SANSOR. Mr Keun said the matter would be included on the agenda, for discussion at the next meeting of the Forum.

During the processors' feedback on the industry, it was noted that the groundnut carry over stock was significantly less than that of previous years. It was noted that the sales of peanut butter had improved, but that the market remained price sensitive. It was also noted that large volumes of peanut butter was, for the first time in the last thirty years, being imported, and that these imports came from India. Concern was expressed about the possibility that the imported peanut butter was not tested for aflatoxin, and resolved that the matter should be brought to the attention of the Department of Health as a matter of urgency.

Ms Van Deventer gave a short overview of the current situation from the viewpoint of the exporters. Dr Van der Walt reported briefly on progress achieved with the implementation of the new Consumer Protection Act and the requirements with regard to the labelling of GM-products.

  Resolved:
9.1 That the matter of the poor quality of groundnut seed, that was sold as certified seed, be listed for discussion on the agenda of the next meeting of the Forum.   Mr Keun
9.2 That the Department of Health be alerted to the fact that large volumes of peanut butter were currently imported from India, and be requested to confirm that imported peanut butter was tested for aflatoxin.   Mr Keun
10. ADDITIONAL ITEMS
10.1 Export of groundnuts: Animal feed
 

This matter has been discussed as part of item 7.2.

10.2 Snackex 2011
 

Cognisance was taken that Snackex 2011, the 13th International Savoury Snack and Nut Conference, would be presented from 12 to 14 June in Barcelona, Spain.

10.3 EU Visit
 

Cognisance was taken of the document titled "Evaluation plan for mission DG (SANCO)/2011-6036 to be carried out in South Africa from 15 to 24 March 2011 in order to assess the controls of aflatoxin contamination in peanuts intended for export into the European Union", the pre-mission questionnaire, and the various communiques regarding the official controls on groundnuts destined for the European Union. Mr Mosome mentioned that the South African team that will accompany the EU mission will consist of representatives from DAFF, PPECB and the groundnut industry. He said the relevant processing companies will be informed timeously which sites are to be included in the itinerary. He confirmed that stakeholders in the industry would be invited to the opening meeting of the EU mission's visit.

10.4 Research proposal: Aflatoxin
 

The Chairperson called on Mr Cloete to inform the members on the PPECB's research proposal. Mr Cloete said the proposal concerned an in-depth investigation into the supply chain of groundnuts. He mentioned that the PPECB needed the groundnut industry's buy-in and support of the project. The members of the Forum unanimously agreed to lend their full support to the project.

Mr Keun suggested that the project proposal be referred to the Oilseeds Advisory Committee for consideration.

  Resolved:
10.4.1 That the SA Groundnut Forum would lend its full support to the PPECB's in-depth investigation into the supply chain of groundnuts.   Mr Keun
Members
10.4.2 That the PPECB's research proposal on the in-depth investigation into the supply chain of groundnuts be referred to the Oilseeds Advisory Committee for consideration.   Mr Keun
Mr Cloete
10.5 Import tariffs on groundnut products
 

The Chairperson called on Mr Lemmer to inform the members on the matter regarding import tariffs on groundnut products. Mr Lemmer mentioned that the Government was currently focussing on job creation, import substitution and promoting the development of local industry, and added that this could be an opportune time to re-evaluate the import tariffs on groundnut products. He said the tariff on imported unroasted groundnuts was 10%, while 9,85% was levied on groundnut oil, and 0,99 cents per kg was levied on peanut butter and roasted groundnuts.

Following on a brief discussion of the issue, Mr Cronjé agreed to raise the matter of the import levy applicable to peanut butter with his executive management.

11. ELECTION OF OFFICE BEARERS
11.1 Election of Chairperson
 

Mr Keun explained the procedures for electing a Chairperson and Vice Chairperson as well as the respective terms of office. The Chairperson reiterated the statement that he had made at the previous meeting on not being available for reelection to the position. Mr Keun confirmed that the dates and frequency of Forum meetings, the structure and powers of the Management Committee and the way forward for the Forum was also open for discussion.

Mr de Witt said the members of the Forum had, after a protracted debate during 2005 and 2006, identified the SA Groundnut Forum's aims as, inter alia

 

establishing communication from the Forum to the industry, and vice versa; and

intervention in the industry, when the Forum needed to act as a mouthpiece of the industry, for example when grading regulations were up for discussion.

 

Mr de Witt said in his opinion an industry needed to have a body to manage and arrange the affairs of that industry. He however added that the current attendance and involvement of members of the Groundnut Forum deeply concerned him. He mentioned that he had discussed the matter with the Chairperson and with other role players in the industry, and had come to the conclusion that certain Forum members used the Forum only to further their own interests. He said a number of members were also of the opinion that the Forum had no teeth, and that it served no purpose to attend the meetings.

Mr de Witt proposed that serious consideration be paid to the role and structure of the Forum. He said to this end, functionaries should be elected who were willing to actively and constructively involve themselves with the affairs of the industry, in the interest of constructive communication with other industry sectors, and participation in such. He was of the opinion that strong leadership qualities were essential, and proposed that a management team be appointed, and tasked to investigate and formulate the proposed future management, structure, vision and aims of the industry grouping, and present these to the industry for approval. He said in his opinion the chairperson of such a group needed to be an impartial and independent person.

Mr de Witt proposed that a Chairperson and Vice Chairperson be appointed, and that additional members be appointed to the Management Committee. Mr Visser seconded this proposal.

The Chairperson called for nominations for the position of Chairperson of the SA Groundnut Forum. Mr Gerhard Keun was unanimously elected as Chairperson of the SA Groundnut Forum for a period of two years.

  Resolved:
11.1.1 That Mr GTduT Keun be unanimously elected as Chairperson of the SA Groundnut Forum for a period of two years.   Mr Keun
11.2 Election of Vice Chairperson
 

The Chairperson called for nominations for the position of Vice Chairperson of the SA Groundnut Forum. Messrs de Witt and Cronjé were nominated for the position of Vice Chairperson, but declared themselves to not be available. Ms van Deventer was unanimously elected as Vice Chairperson of the SA Groundnut Forum for the period of one year.

  Resolved:
11.2.1 That Ms A van Deventer be unanimously elected as Vice Chairperson of the SA Groundnut Forum for the period of one year.   Mr Keun
Ms van Deventer
11.3 Election of members of the Management Committee
 

The Chairperson called for input on the number of additional members to be nominated on the Management Committee. The members were in agreement that three such members would be elected, and that additional members could be coopted as and when required. The following members were unanimously elected as members of the Management Committee of the SA Groundnut Forum:

 

Representative of producers

A representative from GrainSA, ex officio

Representaive of processors

Mr W Higgs

Representative of research

Ms L Salomon

  Resolved:
11.3.1 That three additional members be elected to the Management Committee of the SA Groundnut Forum, viz. Mr W Higgs, Ms L Salomon and a representative of GrainSA, ex officio, and that additional members could be co-opted as and when required.   Mr Keun
11.4 Research Priority Committee
 

Not discussed.

  Resolved:
11.4.1 That the election of the members of the Research Priority Committee be held in abeyance until such time the Management Committee's proposals with regard to the future aims and structure of the SA Groundnut Forum had been tabled and accepted.   Mr Keun
12. MEETING DATES 2011
 

Cognisance was taken that the next meeting of the Forum would be held on 30 March 2011 at Bothaville or Potchefstroom. The dates of meetings planned during 2011 are:
• 21 July; and
• 2 November.

13. ADJOURNMENT
 

The Chairperson thanked the members of the Forum for their attendance at, and contributions to the meeting, and wished all a safe journey home. Mr Visser thanked Mr du Preez on behalf of the members of the Forum for the time he had devoted to the Forum's activities and the contributions he had made to the industry. There being no further business to discuss, the meeting was adjourned at 13:10.

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