SA Groundnut Forum (SAGF)
held on Tuesday 17 July 2024 at 10:00 at the PRF Office building and also by means of a virtual platform (MS Teams)
Opening
The meeting was opened with prayer by Mr A Snyman.
Welcome
The Chairperson extends a warm welcome to all the members who attend the SA Groundnut meeting and invites them to participate in the discussions that will take place.
Attendance
Present
Ms A Botha Chairperson Mr G Keun Chief Executive Officer Mr M J van Rensburg Department of Agriculture, Mpumalanga Mr B Schultz SAGIS Ms M Scheepers DALRRD Ms J Tselentis SANCU/OPDT Ms M Du Preez OPDT Via MS Teams
Mr D Boltman Lorenz SA (Pty) Ltd Ms M du Toit SA Peanut Mr M Fache DALRRD Dr C Girgan ARC-GCI Mr J Greef SA Peanut Ms W Haasbroek SGS Mr C Kenny RCL Foods Mr H Lazarus Lorenz SA (Pty) Ltd Ms S Mangena PPECB Mr V Mapfumari DALRRD Ms L Mazibuko Tiger Brands Ms P Mondhlane Bureau Veritas Ms L Mulaudzi ARC-GCI Mr C Nortjé GWK Ms D Naicker SGS Ms T Ntsele SANSOR Ms M Pienaar Grain SA Ms S Rudolph RCL Foods Dr W Snijman ARC-GCI Mr A Snyman GWK Dr S Steenkamp ARC-GCI Ms F Sundani Nedbank Mr N Wegner PPECB Apologies
Dr E Briedenhann OAC Mr T Clark RCL Foods Mr C Louw Grain SA Mr C Vercueil Grain SA Mr W Lemmer Agbiz Grain Mr T Prinsloo ARC-GCI Mr PA Visser SA Peanut Mr RW Higgs Triotrade Mr H Engelbrecht PPECB Mr GL de Kock Roba Foods Governance/Personalia
The Chairperson reminded the forum members that the terms and rules of the Competition Commission needed to be considered and that the forum's Terms of Reference would apply for the duration of the meeting.
Mr Snijman mentioned that Mr T Prinsloo had been hospitalised for an operation.
Confirmation of agenda
The agenda was accepted as it stood, with the addition of the following discussion point:
- 7.1.4 — Groundnut Trials, Mpumalanga: Presentation Mr M Jansen van Rensburg, Department of Agriculture, Mpumalanga
Approval of minutes
Approval of the minutes of the meeting of the SA Groundnut Forum held on 21 February 2024
Resolution:
- That the minutes of the meeting of the SA Groundnut Forum held on 21 February 2024, be approved.
Matters for discussion
Research and Technology Transfer
ARC Breeding Programme
(Resolutions 7.1.1.1 - 7.1.1.3 on the Groundnut Forum minutes of 21/02/2024)
The Chairperson mentioned that the cultivar booklet was still a work in progress and would be shared with cultivar owners for their comments/inputs as soon as possible. Obtaining detailed information about the cultivars was more challenging than expected, but the project remains important and will continue.
Mr Snijman mentioned that the Publication Committee has integrated new developments and technologies into the Groundnut production manual with the assistance of the nematology, pathology, and entomology departments. He also stated that the manual would be ready for printing very soon.
Any updates and developments will be communicated to the forum members.
Resolutions:
- That cultivar booklet would be shared with cultivar owners for comments/inputs.
Chairperson
SAGF - That an updated Groundnut production manual should soon be ready for printing and distribution.
SAGF
- That any updates and developments regarding the ARC Breeding program will be communicated to the forum members.
Chairperson
Mr Keun
SAGF
- That cultivar booklet would be shared with cultivar owners for comments/inputs.
Industry Collaboration - ARC Cultivar Development, Evaluation, Maintenance and Seed Multiplication
(Resolution 7.1.2.1 of the Groundnut Forum minutes of 21/02/2024)
The Chairperson reported that there have been no new developments regarding the ARC/Breeder seed contracts. It was suggested that the matter be taken off the agenda until new developments were available.
Additionally, the Chairperson mentioned that the ARC and SA Groundnut Association have signed a memorandum of understanding (MOU) to enhance collaboration and support between the industry and the ARC. Although work on cultivar trials and breeder seed production has been ongoing for some time, the agreement sets the stage for a renewed focus and expansion of joint strategies and goals.
Furthermore, the Chairperson said that a seed/cultivar day would be scheduled for mid-October for seed breeders. It was emphasized that while privately owned cultivars may be part of the industry trials, the cultivar owner would be responsible for seed production, supply, and cultivar maintenance.
Resolution:
- That it be noted that a seed/cultivar day would be scheduled for mid-October for seed breeders.
Chairperson
SAGF
- That it be noted that a seed/cultivar day would be scheduled for mid-October for seed breeders.
Research Projects
Research Funding 2024/2025
(Resolution 7.1.3.1.1 of the Groundnut Forum minutes of 21/02/2024)
The committee noted the content of the list of OPDT/OAC-approved Groundnut projects attached as Annexure B to the Agenda.
Consumer & Product Research
(Resolution 7.1.3.2.1 of the Groundnut Forum minutes of 21/02/2024)
Mr Keun mentioned that Dr Muller informed him that she would make a presentation regarding the project titled "A Scoping Study of the Consumer Market and Exploring Peanuts as a Diverse Food Product in Mid- and Lower-Income Groups" at the October 2024 forum meeting.
Resolution:
- That Dr Muller be invited to do a presentation at the October forum meeting regarding the project titled "A Scoping Study of the Consumer Market and Exploring Peanuts as a Diverse Food Product in Mid- and Lower-Income Groups".
Mr Keun
SAGF
- That Dr Muller be invited to do a presentation at the October forum meeting regarding the project titled "A Scoping Study of the Consumer Market and Exploring Peanuts as a Diverse Food Product in Mid- and Lower-Income Groups".
Generic Marketing Groundnuts
(Resolution 7.1.3.3.1 of the Groundnut Forum minutes of 21/02/2024)
Ms Pienaar reported that groundnuts can be included in the Grow for Gold competition, with categories for both dryland and irrigation. She also mentioned that consideration should be given to the prizes for the winners. Ms Pienaar mentioned that GrainSA was optimistic about having entrants in the current season of the Grow for Gold competition.
After a detailed discussion, the Chairperson inquired about who would be responsible for obtaining the prize money for the winners. Ms Pienaar responded that the seed companies funding the Grow for Gold event would also provide the prize money.
Ms Pienaar mentioned that it would be very helpful if the forum members could encourage farmers to participate. At present, seed companies typically approach farmers of other crops such as sunflowers, soybeans, and maize and ask the farmers to enter the program. Similarly, GrainSA hopes that seed companies can reach out to groundnut farmers and request their participation in the event.
The Chairperson mentioned that from a forum perspective, creating awareness for farmers to be part of our Grow for Gold competition was important. Ms Pienaar mentioned that she would ask the marketing team from GrainSA to share their marketing material with the Administration for distribution to the forum members.
Resolution:
- That Ms Pienaar would ask the GrainSA's marketing team to share their marketing material with the Administration for distribution to the forum members to encourage participation in the Grow for Gold competition.
Ms Pienaar
Chairperson
SAGF
- That Ms Pienaar would ask the GrainSA's marketing team to share their marketing material with the Administration for distribution to the forum members to encourage participation in the Grow for Gold competition.
Nematode Studies, Dr Steenkamp – Presentation
(Resolution 7.1.3.4.1 of the Groundnut Forum minutes of 21/02/2024)
The committee took note of the presentation on "A study of Robustodorus arachidis as a new emerging pest on groundnut in South Africa" by Dr Steenkamp which was presented during the meeting. A copy of the presentation will be attached to the agenda of the next meeting.
The Chairperson thanked Dr Steenkamp and her team for the research done on the new nematode "Robustodorus arachidis" thus far.
The following Questions were raised by the forum members with answers provided by Dr Steenkamp:
Question: Was the pest found in an area under irrigation or dryland? It was enquired if movement was similar to the pod nematode. Reference to the visible yellow area in the field, resembling a cake slice in the centre pivot was made. It was asked whether this is related to irrigation or any application through the centre pivot, like fertilizer.
Answer: Nematodes can be transmitted through infested seeds, and if planted in dry land, they will spread. The observer points out that nematode symptoms can be mistaken for other plant problems, such as nutrient deficiencies. It was also noted that nematodes were more likely to harm plants in dryland areas due to increased plant stress. Dr Steenkamp and her colleague plan to conduct a survey to determine the extent of nematode spread and the potential measures to prevent further spread, such as advising producers not to use infested seeds for planting.
Question: What was the number of samples tested? For example, if farmers plant various sources of seed in Douglas, can they send all their registered or certified seed samples for testing?
Answer: The samples would be welcomed and would be helpful for the survey. Dr Steenkamp already expected that pod nematodes would be found, but the question was whether this test would also find nematodes.
Mr Snyman observed that in the current season, a few visual signs of pod nematode infection on the peanuts were found during grading, which was unusual. However, this season, fewer nematode infestation on peanuts was detected.
Mr Snijman and Dr Steenkamp referred to high-pod nematode infestations on potatoes. It was mentioned that the high nematode levels this season may be due to the extreme heat and dry spells that have been experienced. There were seasons where these problems were more significant than others. Sometimes, the symptoms may not be immediately visible, but the problems can manifest in subsequent seasons. Therefore, it's crucial to remain vigilant and continue monitoring for nematode issues.
Question: Where did this pod nematode originate from, or couldn't you trace it yet?
Answer: It seemed like it was a new nematode that was discovered. It was originally from Nigeria, and the nematode can be brought in with seed, but with nematodes, you never know. There can be other ways like with water or any other object.
Dr Steenkamp said that it was unclear how the new nematode ended up in South Africa, but that the pod nematode was discovered late, which was overlooked because it resembles fungus feeders. She emphasised that researchers and farmers need to be mindful of potential issues and consider a collaborative approach to address the situation.
The Chairperson thanked Dr Steenkamp and her team for their time and effort dedicated to the research. She also suggested the possibility of forming a long-term working group or committee involving the industry to help as needed and to address plant health and import/export regulations. Dr Steenkamp, who currently interacts with industry role-players, will make the necessary communication if there is a need for a more formal working group.
Groundnut Trials, Mpumalanga – Mr M Jansen van Rensburg, Department of Agriculture Mpumalanga
The Forum took note of the presentation on "Evaluation of the medium-duration growth groundnut varieties in Mpumalanga" of Mr Jansen van Rensburg that was presented during the forum meeting. A copy of the presentation will be attached to the agenda of the next meeting.
The Chairperson suggested that the trials specifically focus on smaller farmers. She indicated that there was significant emphasis on production, and perhaps the Department of Agriculture, Mpumalanga could incorporate a small section on the safe handling of groundnuts. She also noted that there was a high risk of aflatoxin exposure, particularly in Northern Africa, where many people were exposed without even realising it. Therefore, it might be beneficial to incorporate the high risk of aflatoxin exposure into future educational farmer programs.
Tariffs and Levies
Import Tariffs
(Resolution 7.2.1.1 of the Groundnut Forum minutes of 21/02/2024)
The Chairperson mentioned that since the last forum meeting, the previous Minister's special advisor, on a 'without prejudice' basis, attempted to assist the process to gain momentum.
Some of the comments made towards the applicants related to:
- When dealing with staple food like peanut butter and groundnuts, it's important to consider consumer interests;
- A successful application for increased tariff protection depends on applicants making a clear commitment that future pricing will be based on actual changes in cost drivers for farmers, such as raw material input costs and actual production costs, and not on pricing into the tariff; and
- It was essential to ensure that an increased tariff will not simply allow producers to raise prices or unfairly increase profit margins once they were protected from imported competition.
The Chairperson reported that the DTIC has sent a draft agreement to the applicants which captures the essence of what was required. However, the applicants, with support from the wider industry, have made it clear that such an agreement cannot be made by just one processor. She said that this would put them at an unfair and unintended disadvantage compared to their competitors.
Furthermore, DTIC recognizes the complexity of pricing. Pricing should factor in cost recovery and a reasonable return on investment, while also allowing for flexibility to adjust as needed. However, the difficulty lies in translating these concepts into agreements and gaining the support and agreement of other major role-players.
As the representative applicant of the Peanut Butter industry, RCL has been working hard to arrange a meeting with the relevant decision-makers for a face-to-face discussion on important matters such as:
- The possibility that not all peanut butter manufacturers will be willing to enter into such a restrictive agreement, and it cannot be expected from RCL Foods to do so in isolation from the industry;
- The current group of competitors was already ensuring that the market remains competitive and honest when it comes to pricing;
- Justifying a duty on raw products, but not on further processed goods, when there was spare manufacturing capacity in South Africa; and
- Facing punitive and anti-competitive tariffs, the industry was penalised for local production, putting strain on primary producers due to reduced local demand for crops.
The Chairperson mentioned that during late April, there were indications of DTIC engaging with other major peanut butter manufacturers to explore their willingness to enter into similar agreements. However, it was acknowledged that the elections and change in administration may have caused further delays.
Furthermore, the latest news that was received on 25 June 2024, from ITAC was an email to advise that they had recently received the Minister's comments on the applications they were currently considering and wanted to confirm if the SA Groundnut Forum was still the representative on record which will assist in facilitating requests for additional information during this process. The Chairperson extended an invitation to ITAC and the Minister's office to attend the meeting of the forum.
Mr Kenny from RCL reported that the Business Unity South Africa (BUSA) engaged with the new DTIC minister, Mr Parks Tau. He asked members of BUSA and the industry to submit their key issues for his attention. RCL highlighted the overdue decision from the DTIC regarding the import tariff disparity between roasted groundnut and peanut butter and local trade. Mr Kenny mentioned that RCL was informed that the minister took note of the issue and mentioned that he needed some time to find his feet. However, he understood the urgency and promised to get back to RCL. The response from the DTIC minister Mr Parks Tau was still awaited.
Feedback and information regarding the Import Tariff applications would be communicated to all members of the forum.
Resolution:
- That any feedback and information related to the Import Tariff applications would be communicated to all members of the forum.
Chairperson
Mr Keun
SAGF
Japan Import Tariffs
(Resolutions 7.2.2.1 of the Groundnut Forum minutes of 21/02/2024)
The Chairperson reported that there were no new updates regarding the Japan Import Tariffs. She mentioned making new attempts to schedule a meeting with local and Japanese counterparts to discuss the situation.
Feedback and communication regarding the Japan Import Tariffs would be communicated to all members of the forum.
Resolution:
- That feedback regarding the Japan Import Tariff will be communicated to the forum members.
Chairperson
Mr Keun
SAGF
- That feedback regarding the Japan Import Tariff will be communicated to the forum members.
Industry Standards and Regulatory Matters
Crop Protection: Phase-out of certain active ingredients
(Resolution 7.3.2.1 of the Groundnut Forum minutes of 21/02/2024)
Mr Keun reported that he had discussed the typical updates of the MRL list with the consultant who usually assists in updating the schedule. Unfortunately, the update will be more complicated than in previous years due to a few factors that needed to be taken into consideration. Firstly, there was the potential to phase out some active ingredients, and secondly, there were changes related to Great Britain and the EU.
Mr Keun mentioned that updating the list and ensuring its accuracy will require more time. Once the consultant has completed the updates, the Administration would be able to handle it in-house due to the relationship established with Crop Life. However, Mr Keun recommended that the consultant be used because of the complexity of the task and that the updated list will be available within a month or two.
Resolution:
- That it be noted that the Groundnut MRL list was in the process of being updated.
Mr Keun
SAGF
- That it be noted that the Groundnut MRL list was in the process of being updated.
Import Quality, Regulatory Control and MRL Testing
(Resolutions 7.3.3.1, 7.3.3.2 and 7.4.3.2 of the Groundnut Forum minutes of 21/02/2024)
The Chairperson mentioned that renewed attempts were made to engage with the Department of Health and the Department of Agriculture in a workshop or meeting to strengthen relationships and collaboration. This was to consider how regulatory requirements were monitored to safeguard consumers and industry role-players. This request was already made before the peanut butter recall debacle, but it has become even more important following the recalls.
The Chairperson also made requests to representatives from the Department of Health and the Department of Agriculture to assist in delivering the message and initiating contact to set up such a workshop and industry collaborative and educational event, but no feedback was received. Further to the information reported at the previous forum meeting and recorded in detail, very limited information was made available.
The Chairperson referred to the report from the Food Safety Summit 2024, attached as Annexure H to the agenda, which also included a presentation by Mr Janusz Luterek, a partner at Hahn & Hahn Food and Consumer Law Attorneys. She extended an invitation to Mr Luterek to make a presentation at the SA Groundnut forum meeting, unfortunately, he was not available, but Mr Luterek would be invited to address the forum in due course.
The following notes of Mr Luterek's presentation could be read in the report (Annexure H):
- The legal framework and responsible entities, including the Department of Health, the Department of Agriculture, and the National Consumer Commission, as well as the recall procedure and compliance requirements.
- The following were noted on the Peanut Butter recalls:
- The products initially passed internal tests for compliance, but failed when tested on supermarket shelves.
- Suppliers showed a lack of urgency in managing recalls, often choosing product withdrawal over full recall, which does not comply with the Consumer Protection Act (CPA) guidelines.
- Delays in recalls were frequently observed, especially when third-party manufacturers were involved. These manufacturers often produce goods for multiple brands, leading to confusion and delayed initiation of recalls. Online sellers, especially smaller ones, displayed a lack of urgency and were difficult to contact.
- Retailers could only recall products from their stores, requiring the intervention of the National Consumer Commission (NCC) for broader recalls.
- There were alleged issues with falsified Food Safety System Certification (FSSC) certificates and test results, prompting ongoing investigations by the NCC and SAPS.
- Some manufacturers went into liquidation, which complicated the recall process.
- As of June 2024, all recalls were resolved. However, the disposal of returned products was still ongoing, with some being kept for potential litigation.
- No actual consumer complaints were received relating to aflatoxin.
- A call was made for closer industry engagement and sharing of information, but this was restricted by regulatory protection of information and ongoing SAPS and other investigations.
- During the panel discussion, it was mentioned that suppliers and retailers did not notice any major effect on demand.
After a lengthy discussion, it was decided that the forum, with the help of the Administration, would share some information on the social media platforms. Mr. Keun asked for help from the forum members with information to conduct a social media campaign about groundnuts. He emphasised that the information should be general and should not mention any brand names.
Further feedback and information regarding the recall of peanut butter would be communicated to all members of the forum.
Resolutions:
- That continued attempts be established to engage with the Department of Health and the Department of Agriculture in a workshop or meeting to strengthen relationships and collaboration. The goal was to consider how regulatory requirements were monitored to safeguard consumers and industry role-players. This request was made before the peanut butter recall debacle but has become even more important following the recalls.
Chairperson
SAGF - That Mr Luterek a partner at Hahn & Hahn Food and Consumer Law attorneys be invited to make a presentation at the SA Groundnut forum meeting, regarding the peanut butter recalls.
Chairperson
Mr Keun
SAGF - That the members of the forum engaged in supplying information to the Administration for a groundnut campaign on social media regarding general information on groundnuts.
Chairperson
SAGF - That feedback and information regarding the recall of peanut butter would be communicated to all members of the forum.
Chairperson
SAGF
Local Quality Verification — Leaf Services
The Chairperson reported on the progress and recent discussions with Leaf Services. She mentioned that before March/April 2024, there were no groundnut-specific protocols or inspection lists published by Leaf Services, which resulted in the industry not being able to offer relevant comments at any stage of the discussions. The Chairperson said that due to deadlines for submissions and comments, initially set for 15 March, she engaged on various occasions with Mr Wohlfahrt from Leaf Services to draft and update a proposed groundnut-specific protocol and checklist.
The Chairperson said that after some additional adjustments and explanations as to the unique workings of the groundnut industry, a draft was circulated for wider comment. During this process, external comments were also offered which was unfortunately not applicable to the groundnut industry but will be addressed in the next round of comments. The planned 26 March engagement was postponed until a meeting on 13 June which invite was circulated to industry and was attended by some of the forum members as well. Leaf Services published on 10 July another call for comment in the Government Gazette and comments were due by 12 August.
The Chairperson mentioned that comments have already been prepared, which will be shared with the forum members for any further input. She said that this communication would be communicated to the forum members in due course and asked the members to also consider looking at the available records and information on the Leaf Services website.
The Chairperson mentioned that the major issue remains what value these inspections may add, considering the proposed frequency and other methodology factors. She said that it was limited to what the APS Act requires in terms of locally traded raw groundnuts. The inspections mainly focus on grading confirmation and review of aflatoxin results of graded groundnuts.
Feedback and information regarding Leaf Services would be communicated to all members of the forum.
Resolution:
- That feedback and information regarding Leaf Services would be communicated to all forum members.
Chairperson
SAGF
- That feedback and information regarding Leaf Services would be communicated to all forum members.
Industry
Crop and Area Estimates
The forum took note of Annexure D and Ms Scheepers' presentation regarding the groundnut production forecast.
SA Grain Information Services (SAGIS)
The committee noted the contents of Annexure E in the agenda.
Cognisance was taken of Mr Schultz's presentation on SAGIS, feedback, and market information.
Perishable Products Export Control Board (PPECB)
(Resolution 7.4.3.1 of the Groundnut Frum minutes of 21/02/2024)
The Forum took note of Annexure F and the presentation in respect of aflatoxin of Ms Mangena from PPECB.
The Chairperson highlighted the need for collaboration in monitoring and reporting. The plan was to bring all laboratories together via a Zoom meeting to enhance information sharing. The Department of Agriculture stressed the importance of industry awareness of aflatoxin trends. It's vital to understand how new role-players utilise their information and ensure that all efforts align.
Resolution:
- That an aflatoxin test report template be created for use by all reporting laboratories during the new groundnut season and for feedback at the forum meetings.
Chairperson
SAGF
- That an aflatoxin test report template be created for use by all reporting laboratories during the new groundnut season and for feedback at the forum meetings.
Industry Project for price structure and producer profitability
(Resolution 7.4.5.1 of the Groundnut Forum minutes of 21/02/2024)
The Chairperson mentioned that a value chain meeting was held on 21 February 2024, facilitated by Dr Ferdi Meyer from BFAP.
The Chairperson reported that the role-players were exploring the use of historical and public information to create a pricing model. The goal was to provide valuable market insights without setting or suggesting prices. The role-players will reschedule another meeting to seek collaboration among themselves. The Chairperson invite the forum members to submit their valuable feedback as the role-players continue to develop a better price model and welcomes any input from the industry.
Articles
The forum took note of the content of the articles attached as Annexure G to the agenda.
General
Food Safety Summit 2024: Groundnut Sector Report
The forum took note of the content of the Food Safety Summit 2024: Groundnut Sector Report attached as Annexure H to the agenda.
Study Tour 2024
The forum took note of the content of the Study Tour Report 2024 attached as Annexure I to the agenda.
Meeting date 2024
The next meeting was scheduled for 24 October 2024.
Adjournment
The Chairperson adjourned the meeting at 13:00.