Addendum I

VIEWPOINTS: THE FOLLOWING VIEWPOINTS TO ESTABLISH BASIC NORMS FOR THE EVALUATION OF RESEARCH REQUESTS HAVE BEEN ACCEPTED AS POLICY BY THE OILSEEDS ADVISORY COMMITTEE.

Introduction

When evaluating requests for projects in the interest of the industry, the source document referred to would be the Oilseeds Development Trust Deed, with special reference to:

• Objectives of the Trust
• Definition of "oilseeds"

1. Objectives of the Trust

   The main objective of the Trust is the promotion of the oilseeds industry in South Africa through

   1. "the financing of research projects with regard to the improvement, production, hoarding, processing or marketing of Oil Seeds;
   2. the financing of information and advisory services to the Oil Seeds Industry with regard to the production of Oil Seeds and marketing conditions;
   3. the financing of market access or of any further conduct which is in the interest of the Oil Seeds Industry provided that it is in accordance with the objects and purposes of the Act".

2. Definition of "oilseeds"

   Groundnuts, soybeans, canola and sunflower.

Viewpoints adopted in principle

When evaluating requests for projects in the interest of the industry, the source document referred to would be the Oilseeds Development Trust Deed, with special reference to:

1. Groundnuts, sunflower, canola and soybeans

   The premise holds that no limitations will be placed on research requirements for human or animal use, but that research projects will focus on groundnuts, sunflower, canola and soybeans. Application for research projects with the focus on crops other than groundnuts, sunflower, canola and soybeans will not be recommended by the Advisory Committee.

   Motivation

   • The capital in the Oilseeds Development Trust originated from levies collected through the marketing of groundnuts, sunflower, canola and soybeans.
   • The Marketing of Agricultural Products Act provides for levies to be placed on products to finance research and should the Trust in future prove unable to provide sufficient financing for research, levies could again be placed on producers of canola, sunflower, groundnuts and soybeans with the support of all affected roleplayers.
   • The Trust deed provides that projects in the interest of the industry should focus on canola, sunflower, soybeans and groundnuts.

2. No Pro Rata approach

   It is recommended that there would be no pro rata division of available funds between groundnuts, sunflower, canola and soybeans, but that specific industry requirements be addressed on merit.

3. Transparency

   The procedures of the Research Priority Committee as well as the Oilseeds Advisory Committee will be transparent and written motivations for decisions will be supplied upon request. Enquiries must however, also be submitted in writing.

4. No single industry sector to be favoured

   Research projects will be managed in the interest of the industry as a whole.

5. Technology transfer

   Technology transfer and facilitation of projects are regarded as being part and parcel of research. The motivation for this procedure is that expertise obtained through a research project should be made available down to grass roots level.

6. Biotechnology and seed breeding

   The viewpoint of the Advisory Committee is that biotechnology and seed breeding are expensive and will only be considered in exceptional cases.

7. Income generating projects

   The Advisory Committee takes the view that should projects from which income will be generated be supported, this income should revert to the Trust, unless otherwise agreed. Research Institutions will therefore on the approval of projects be required to sign an agreement stating that possible royalties or patents resulting from a project must be registered in favour of the Trust, unless otherwise agreed.

   NOTE:  In cases where patents and/or royalties result from a project, an agreement will be reached with the developer with regard to the marketing of such new product and/or service. The sharing of income from royalties and/or patents will therefore be negotiated in each case based on the specific circumstances applicable.

8. Financing of overseas visits

   The Committee is not against the principle of overseas visits per se, but takes the view that such visits will comply with two requirements namely that such a visit:

   • will be essential for the successful completion of a research project and;
   • will be in the interest of the industry.

   Recommendations

   • That overseas trips be funded preferably on a basis of 50% contribution by the Oilseeds Development Trust.
   • That the total amount requested for an overseas visit from Trust Funds be granted only in exceptional cases.
   • Merit will, however, be the deciding factor in each instance.
   • A comprehensive report on all activities must be submitted to the Advisory Committee after completion of a visit abroad.

9. Peer evaluation

   The Committee accepts the principle of peer evaluation of new projects referred to the Committee. Peer evaluators will be remunerated for services rendered.

   The premise is that it would be more cost-effective to thoroughly evaluate a possible project before commencement than to come to the belated conclusion that a completed project hold little or no advantages for the industry.

   The confidentiality of peer evaluators will be closely guarded in order to enable these persons to provide truly objective information to the Committee.

10. Progress reports

    Research Institutions funded by the Oilseeds Development Trust must provide progress reports annually by not later than 31 August. Payment of funds to those Research Institutions will be made quarterly.

    NOTE:  It is specifically important here that the contracted Research Institution should, through its progress report, also report on the application of funds and possible surplus funds at the end of a term.

11. Capital expenditure

    Capital equipment, as a rule, is not funded by the Oilseeds Development Trust. If capital equipment is required for a project and the contractor does not have access to such, equipment should preferably be rented. The costs incurred for the rental of the equipment can be allocated to the project. Only in exceptional instances capital items will be funded by the Trust. These capital items will then remain the property of the Trust.

12. Long term projects

    No project will be approved for a period longer than four years. In support of this viewpoint it is recommended that current projects be thoroughly evaluated every 3rd year in order to determine whether such project still remain viable and whether the project will deliver the desired results to the best interest of the industry. Should this evaluation be positive, such project may be funded for a further period. The principle however is that no project will ipso facto be funded by the industry for an indefinite period of time.