SA Groundnut Forum (SAGF)
held on 24 October 2023 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 C Vercueil.
Welcome
The Chairperson welcomed all present to the meeting of the Groundnut Forum.
The Chairperson extends a warm welcome to Ms Khanyisa Hoveni-Mphutha, the Deputy Director of the Chief Directorate for Agroprocessing, Sectors Division of the Department of Trade, Industry and Competition (DTIC). The forum expressed their gratitude that the invitation to attend the meetings was accepted and hopes that the discussions will help to keep colleagues at the DTIC informed about industry developments and challenges. It may also offer assistance or guidance through appropriate channels to establish a conducive environment for the industry.
Attendance
Present
Ms A Botha Chairperson Dr E Briedenhann OAC Mr T Clark RCL Foods Mr G Keun Chief Executive Officer Mr W Lemmer Agbiz Grain Mr B Schultz SAGIS Ms M Scheepers DALRRD Mr K van Huysteen SANSOR Mr C Vercueil Grain SA Ms J Tselentis SANCU/OPDT Ms M Du Preez OPDT Via MS Teams
Mr D Boltman Lorenz SA (Pty) Ltd Mr GL de Kock Roba Foods Ms Z Ferdous Agora Global Mr J Greef SA Peanut Ms W Haasbroek SGS Ms N Ismail Bureau Veritas Mr C Kenny RCL Foods Mr H Lazarus Lorenz SA (Pty) Ltd Ms C Leswifi DALRRD Ms S Mangena PPECB Ms S Marape Peanut Worx (Pty) Ltd Ms K Maphutha DTIC Mr P Moopeloa Bureau Veritas Ms DR Mosehla OPDT Ms L Muller Triotrade Mr R Nerwich Botnim Trading (Pty) Ltd Mr C Nortjé GWK Mr G Roos OPDT Ms S Rudolph RCL Foods Mr P Sanford FR Waring (Groundnuts) (Pty) Ltd Mr A Snyman GWK Dr W Snijman ARC-GCI Dr S Steenkamp ARC-GCI Mr A van Rensburg Tiger Brands Mr G van Wyk V.G.M. Mr N Wegner PPECB Apologies
Mr PA Visser SA Peanut Mr RW Higgs Triotrade Mr T Prinsloo ARC-GCI 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.
No personalia was reported.
Confirmation of agenda
The agenda was accepted as it stood.
The Chairperson mentioned that Ms Maphutha will present her research outcome on the groundnut value chain and provide input under item 7.2.1.
It was agreed to move resolution 7.4.3.2 under item 7.4.3 - PPECB to item 7.3.2 - Import Quality and Regulatory Control and MRL Testing.
Approval of minutes
Approval of the minutes of the meeting of the SA Groundnut Forum held on 19 July 2023
Resolution:
- That the minutes of the meeting of the SA Groundnut Forum held on 19 July 2023, be approved.
Matters for discussion
Research and Technology Transfer
ARC Breeding Programme
(Resolutions 7.1.1.1 - 7.1.1.4 on the Groundnut Forum minutes of 19/07/2023)
The Chairperson confirmed during various cultivar and development-related discussions and meetings that the breeding program remains a high-priority program for the ARC, consistent with the previous SAGF meeting.
It was noted that no further feedback on the proposed consortium agreement was received. However, contact was made with international cultivar development entities and noted some potentially promising results from trials that specifically focused on identifying shorter growers.
The data has been used to determine which cultivars will be included in yield and evaluation trials during the upcoming planting season. This will allow for gathering data from different trial locations. The Groundnut Forum would like to express their gratitude to the ARC management and team for their initiative. Ms. Van der Merwe and Mr. Snijman deserve a special mention for their instrumental role in the ongoing work and discussions that have allowed the industry to become more informed and involved.
The Chairperson mentioned that on 21 September, Mr Snijman presented the results of the National Cultivar Trials from the previous season at a meeting held at the ARC in Potchefstroom. Although there were some discrepancies between locations and even within a trial, this was not solely attributed to groundnut issues. Plans were currently being considered to process the vast amount of data and variables to create a more user-friendly output for the industry. It was noted that two new ARC cultivars have been registered and will soon be available to breeders.
During the meeting, the Chairperson mentioned the publication of a cultivar booklet in 2018 and suggested revisiting and updating it. The Chairperson also agreed to contact the ARC to inquire about the necessary steps to publish a new cultivar booklet in 2024. Additionally, it was announced that an updated groundnut production guide would be available soon.
The Chairperson reported that the ARC had received applications for the breeder position, but they were still in the process of reviewing it. If any forum members know of a breeder who might be interested in the position, they are encouraged to contact the oilseeds office, which can facilitate communication with the appropriate personnel at the ARC.
Resolutions:
- That the Chairperson will contact the ARC to inquire about the necessary steps to publish a new cultivar booklet in 2024.
Chairperson
SAGF - That it be noted that an updated groundnut production guide will be available soon.
SAGF
- That if any forum members know of a breeder who might be interested in the breeder position at the ARC, they are encouraged to contact the oilseeds office, which can facilitate communication with the appropriate personnel at the ARC.
Mr Keun
SAGF
- That the Chairperson will contact the ARC to inquire about the necessary steps to publish a new cultivar booklet in 2024.
Industry Collaboration - ARC Cultivar Development, Evaluation, Maintenance and Seed Multiplication
(Resolutions 7.1.2.1 and 7.1.2.2 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson mentioned that the ARC has not provided any additional feedback regarding the proposed breeder seed contracts, except for the fact that their legal department was reviewing the comments and suggestions put forth by the industry. Despite this delay, the process of acquiring certified seed and the various stages involved in seed multiplication will remain unaffected.
Any updates and developments will be communicated to the forum members.
Resolution:
- That any updates and developments regarding the proposed breeder seed contracts will be communicated to the forum members.
Chairperson
SAGF
- That any updates and developments regarding the proposed breeder seed contracts will be communicated to the forum members.
Research Projects
Research Funding 2024/2025
Mr Keun reported that the projects up for consideration for the 2024/25 financial period will take place on 26 October 2023 and 21 November 2023 respectively. A list of approved projects will be communicated to the forum members.
Resolution:
- That a list of approved projects be communicated to the forum members.
Mr Keun
SAGF
- That a list of approved projects be communicated to the forum members.
Consumer & Product Research
(Resolution 7.1.3.2.1 of the Groundnut Forum minutes of 19/07/2023)
During the previous meeting, the Chairperson reported that two projects from the University of Pretoria were presented. The project aimed to conduct a scoping study of the consumer market and explore peanuts as a diverse food product in the Mid- and lower-income groups. The forum identified the need to better understand the consumer market and alternative products that can guide local product development. This project aligns well with the identified need.
Mr Keun mentioned that the project mentioned above has already been approved by the Oilseeds Advisory Committee and has commenced already. After further discussion, it was recommended that Dr Muller be invited to give a presentation at the next 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".
Resolution:
- That Dr Muller will be invited to give a presentation at the next 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 will be invited to give a presentation at the next 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
During the meeting, it was decided that the OAC/OPDT website should contact the SA Consumer Union to add a link to their website.
Additionally, it was decided to contact the industry for information to be published on the OAC/OPDT Facebook and Website.
After discussion, some questions came up that needed to be addressed:
- It would be interesting to know why groundnuts were not included in the Grow for Gold competition.
The Chairperson undertook to discuss the inclusion of groundnuts in GrainSA's Grow for Gold competition.
- Is it common for groundnuts to be crushed to produce oil in South Africa?
It was noted that Peanut oil was a niche product that was not economically feasible to produce in large quantities. Due to the prevalence of peanut allergies worldwide, the use of peanut oil is limited. It was noted that in South Africa, peanut allergies were not as common as in other countries.
Resolution:
- That the Chairperson undertook to discuss the inclusion of groundnuts in GrainSA's Grow for Gold competition.
Chairperson
SAGF
- It would be interesting to know why groundnuts were not included in the Grow for Gold competition.
Tariffs and Levies
Import Tariffs
(Resolution 7.2.1.1 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson mentioned that during the previous meeting, it was advised that after some further inputs to BFAP, industry representatives, supported by BFAP met with representatives from the DTIC to update them on the current situation in the industry and to determine how a collaborative effort could be made to move the two applications towards an outcome. The Chairperson thanked RCL Foods as the Peanut Butter applicant for the role they played in facilitating the process to set up such a meeting.
The Chairperson before handing over to Ms Khanyisa Hoveni-Maphuta, confirmed that a follow-up letter was sent to further clarify some of the issues that were discussed. Moreover, most of the forum members undertook to support processes with the Competition Commission to ensure that local prices were not increased excessively on the back of an import tariff being granted. As an industry, the protection and growth of the local consumer market were paramount, and all the work being done to stabilize the industry was focused on this goal. The industry was hopeful that they can find a way to protect themselves from undue competition from imports, in line with the focus of the DTIC.
Ms Maphutha reported that the letter was well received. The Chief Director facilitated the processes but has not provided any feedback yet.
Ms Maphuta researched the groundnut industry. She visited the RCL facility to better understand groundnut processing and reviewed the BFAP reports.
After concluding the experience, she categorized it into two distinct categories: challenges and opportunities.
Challenges
- That it's important to note that there has been a significant decrease in groundnut production over the past few years. This can be attributed to the increase in input costs, which have been affected by various economic pressures, such as the importation of fertilizer and the need to use diesel to supplement the power supply due to load-shedding;
- That the ongoing conflict in Africa was having a significant impact on the production and trade of peanut and peanut butter exports. Countries such as Cameroon, Central Africa Republic, Mozambique, and specifically the DRC in Mozambique, are importing a significant amount of groundnut value chain products. This issue could potentially affect regional trade;
- That the production of groundnuts in the Western Cape has increased significantly due to location differentials; and
- That the calculation of location differentials was having a significant impact on the groundnut industry.
Opportunities
- That to meet local demands and seize export opportunities, available land must be used to increase production;
- That it would be imperative to take advantage of the new continental free trade agreement to tap into the vast continental market;
- That available land can be used to increase groundnut production for an additional market; and
- That PPECB has done a commendable job in effectively managing the control of aflatoxin.
The Chairperson expressed gratitude to Ms Maphutha for her presentation and attendance at the meeting. The Chairperson also extended an invitation to Ms Maphutha to attend future forum meetings. The Chairperson mentioned that some of the points Ms Maphutha raised were discussed during previous meetings and could fit in well with the overall picture she was trying to put together.
Additionally, the Chairperson addressed some of the challenges that Ms Maphutha had pointed out:
- That it was confirmed by the forum that the groundnut industry never had major issues with location differentials and the challenge has been resolved;
- That it was incorrect to state that the production of groundnuts happens in the Western Cape. The correct province is the Northwest Province;
- That the Department of Agriculture, Land Reform and Rural Development has an Estimates Committee that provides information on crop volumes grown in specific areas; and
- That for many years, the industry has had a good relationship with PPECB. PPECB assists the industry with export quality control, specifically by doing physical grading within regulations. Although other laboratories also do aflatoxin testing, it is one of PPECB's responsibilities. The discussion on agenda item 7.3.2 will focus on quality control for local and imported products, with a specific emphasis on import quality control.
Feedback regarding the Import tariff applications will be communicated to all members of the forum.
Resolution:
- That any feedback 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 19/07/2023)
The Chairperson gave background information regarding the Japan Import Tariffs. She mentioned that Japan's Import Tariffs refer to support requested from DTIC to open discussions to determine whether Japan will consider lowering or discarding import tariffs for SA Groundnuts to better align our competitiveness with other origins such as America which was very favourable trade agreements to their benefit. Regrettably, no progress has been made simply because it seems setting up a date for a meeting remains an issue. The Chairperson would look at possible dates and again engage with the contact person at DTIC to see if some traction on this longstanding matter could be made.
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: Minor Use Classification
(Resolution 7.3.2.1 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson said that she did not receive a vast amount of feedback for Dr Steenkamp's research needs survey, but what was reported was sent on to Dr Steenkamp to consider for future projects.
Although not much interest was received in the sense of remedies, Dr Steenkamp reported that she was very excited to have received funding to research the new seed-borne nematode which was widely reported. Dr Steenkamp advised that she would reach out to some of the forum members to assist her with trials.
The Chairperson noted that the minutes from previous forum meetings had recorded the topics discussed below:
- That "the option to register or classify available and effective chemicals registered for other commodities for minor use on groundnuts be investigated and brought back to the forum for discussion" (Resolution 7.4.1.1 of 3 November 2022); and
- That the survey by Dr Steenkamp might have given some indication from farmers of such products (Resolution 7.3.2.1 of 19 July 2023)
The Chairperson mentioned that the process will be discussed under item 7.5.1 on the phase-out of certain active ingredients that might also be relevant or informative. Feedback will be communicated to the forum members.
Resolutions:
- That Dr Steenkamp would reach out to some of the forum members to assist her with trials on the new seed-borne nematode.
Dr Steenkamp
Chairperson
SAGF - That feedback will be communicated to the forum members regarding the phase-out of certain active ingredients that might also be relevant or informative.
SAGF
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 19/07/2023)
The Chairperson reported that Mr Thabethe's latest feedback was received on 11 July 2023. She has requested an update following their planned meeting on 27 July 2023. In addition, she asked Mr Thabethe if it would be possible to establish a joint workgroup to discuss and consider the full scope of import and export quality, considering the responsibilities of all parties involved. Feedback was currently awaiting from Mr Thabethe regarding their scheduled meeting that took place on 27 July 2023, as well as a joint workshop to discuss and consider the entire range of import and export quality, including the responsibilities of the various assignees.
Resolution:
- That feedback was currently awaiting from Mr Thabethe regarding their scheduled meeting that took place on 27 July 2023, as well as a joint workshop to discuss and consider the entire range of import and export quality, including the responsibilities of the various assignees.
Chairperson
SAGF
- That feedback was currently awaiting from Mr Thabethe regarding their scheduled meeting that took place on 27 July 2023, as well as a joint workshop to discuss and consider the entire range of import and export quality, including the responsibilities of the various assignees.
Industry
Crop and Area Estimates
The Forum took note of Annexure B and Ms Scheepers' presentation regarding the groundnut production forecast for the 2023 season.
SA Grain Information Services (SAGIS)
The committee noted the contents of Annexure C in the agenda.
Notice 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 19/07/2023)
Ms S Mangena presented the PPECB aflatoxin results.
The Chairperson thanked Ms S. Mangena for presenting the aflatoxin results. The industry was privileged to have this information available.
Resolution:
- That PPECB be requested to submit their report to the Oilseeds Office for circulation to the forum members.
Chairperson
PPECB
SAGF
- That PPECB be requested to submit their report to the Oilseeds Office for circulation to the forum members.
Industry Project for price structure and producer profitability
(Resolution 7.4.5.1 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson gave background information on previous discussions and requests that were made. She mentioned that on 25 July 2023, a letter was received from Grain SA. While the letter was shared with some members involved in the selection and processing sectors, it was not formally discussed at any meeting. The letter will be discussed at a newly established meeting focused on the Groundnut Value Chain. The meeting aims to provide a platform where all affected and involved parties can discuss this matter while strictly adhering to the Competition Act. The discussion will revolve around the principles of transparency in price structures within the industry, and how historical and public information can be used and interpreted in a responsible and relevant way.
The Chairperson stated that Mr Keun from the Oilseeds office would be requested to assist in arranging the Ground Value Chain meeting, possibly with an independent facilitator.
Resolution:
- That Mr Keun be requested to assist in arranging the Groundnut Value Chain meeting, possibly with an independent facilitator.
Chairperson
Mr Keun
SAGF
- That Mr Keun be requested to assist in arranging the Groundnut Value Chain meeting, possibly with an independent facilitator.
General
Intended phase-out of active ingredients and products classified as CMR categories 1A and 1B
(Resolution 7.5.1.1 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson reported that the industry has provided submissions to CropLife, which has now advised that registration holders were in the process of preparing dossiers. These dossiers were to be submitted to the Registrar's Office for fast-tracking the approval of alternative substances that can replace the CMR 1a or 1b classified substances of concern. Two volunteers, Mr C Louw, and the Chairperson, have been appointed as technical advisors at the Registrar's office. Their main responsibility was to evaluate the feasibility of alternative remedies proposed by registration holders. If anyone requests help in this regard, the forum will work with the industry to provide support.
It was noted that some of these alternatives may address the issues discussed under 7.3.1 for minor usage classification.
Election of office bearers
Election of Vice Chairperson
Mr L De Kock was re-elected as the Vice Chairperson for the next two years.
Resolution:
- That Mr L De Kock be re-elected as Vice-Chairperson for a two-year term.
Chairperson
Mr Keun
Members
- That Mr L De Kock be re-elected as Vice-Chairperson for a two-year term.
Meeting dates 2024
The date for the upcoming meeting has been scheduled for 9 February 2024.
Adjournment
The meeting was adjourned at noon after the Chairperson expressed her gratitude for the participants' contributions and inputs. She also expressed hope for renewed personal interaction and attendance at future meetings.