SA Groundnut Forum (SAGF)
held on 3 November 2010 at 10:00 at the Sellschop Building, ARC-GCI, Potchefstroom

1. Opening

   The meeting was opened with prayer offered by Dr Jan Dreyer.

2. Welcome

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

3. Attendance

   Present
   Mr JCG du Preez	Chairperson
   Mr P Botha	GrainSA
   Mr J Cohn	OLAM SA
   Mr O de Witt	Praxia Trading
   Dr J Dreyer	ARC-GCI
   Mr GTduT Keun	CEO: OPDT/OAC
   Mr W Lemmer	GrainSA
   Ms PJ Mabusela	DAFF
   Ms V Mapfumari	DAFF
   Mrs MC Makobe	DAFF
   Mr M Mosome	DAFF
   Ms L Salomon	ARC-GCI
   Mr TS Sikhwavi	DAFF
   Ms A van Deventer	Praxia Trading
   Dr WJ van der Walt	SANCU
   Apologies
   Ms R Beukes	DAFF
   Mr R Cloete	PPECB
   Mr AM Cronjé	Tiger Brands
   Ms A Enslin	SAGIS
   Mr A Evans	RE Groundnuts
   Mr C Mathews	Department of Agriculture: Mpumalanga
   Mr GC Nortjé	GWK
   Mr JAM Potgieter	GrainSA
   Ms M Scheepers	DAFF
   Mr GJH Scholtemeijer	Oilseeds Advisory Committee
   Mr PJ van Heerden	PPECB

4. Personalia

   None reported.

5. Finalisation of agenda

   The agenda was accepted as it stood.

6. Approval of minutes

   1. Approval of the minutes of the meeting of the SA Groundnut Forum held on 22 July 2010

      Resolved:

      1. That the minutes of the meeting of the SA Groundnut Forum, which was held on 22 July, be accepted as a true and fair reflection of that meeting, after certain changes had been effected to the minutes.

7. Matters arising

   1. Good Agricultural and Processing Practices

      (Resolution 7.1.1 of the SA Groundnut Forum minutes of 22 July 2010)

      It was noted that a link had been established between the websites of GrainSA and the oilseeds industry, in order to facilitate access to the document on good agricultural and processing practices and the attachment detailing the Hazard Analysis and Critical Control Point (HACCP) principles.

      The Chairperson confirmed that the availability of the documents had not been publicised by means of a press release. Following on a brief discussion of the matter, it was agreed that a press release announcing the publication of the document on good agricultural and processing practices and the attachment detailing the Hazard Analysis and Critical Control Point (HACCP) principles would not be issued, as the members of the Groundnut Forum were of the opinion that, although all the required systems were in place, not all of the relevant role players were in compliance with such.

      Resolved:

      1. That a press release announcing the publication of the document on good agricultural and processing practices and the attachment detailing the Hazard Analysis and Critical Control Point (HACCP) principles would not be issued, as the members of the Groundnut Forum were of the opinion that, although all the required systems were in place, the relevant role players were not all in compliance with such.

         Mr Keun

   2. Guideline: Aflatoxin

      (Resolution 7.2.1 of the SA Groundnut Forum minutes of 22 July 2010)

      Cognisance was taken that the resolution with regard to hosting an electronic copy of the booklet titled "Guidelines on the application of good agricultural practices and HACCP in mycotoxin prevention" on the websites of the oilseeds industry and GrainSA would be handled administratively.

   3. Sustainability of the groundnut industry

      (Resolutions 7.3.1 to 7.3.3 of the SA Groundnut Forum minutes of 22 July 2010)

      Mr Keun reported that discussions would be held on 30 November with Dr Jooste of the National Agricultural Marketing Council (NAMC) on the matter of the submission of a project proposal on the relative competitiveness of the South African groundnut industry. Cognisance was taken that the Bureau for Food and Agricultural Policy (BFAP) could be in a position to undertake said study.

      Dr Dreyer reported that a total of eleven information days had been presented by role players in the groundnut industry in the recent past, and added that he did not consider it necessary that the Forum concern itself with organising such. The Chairperson mentioned that the members had resolved that a mechanisation day would be presented in April or May 2011, and that this should remain on the agenda. He said once the competitiveness study had been completed, an information day could be organised so as to inform producers on the broad perspective of the groundnut industry. Dr Dreyer proposed that Mr Cloete of GWK and Mr Visser of P Farm be requested to organise a mechanisation day. Mr Botha confirmed that he would assist in the organisation of the event.

      Mr Keun requested that the resolution with regard to the proposed international study tour be held in abeyance.

      Resolved:

      1. That it be noted that the National Agricultural Marketing Council (NAMC) had been approached to submit a project proposal on the relative competitiveness of the South African groundnut industry.

         Mr Keun

      2. That Mr Cloete of GWK and Mr Visser of P Farm be requested in writing to organise a mechanisation day in April or May 2011.

         Mr Keun

      3. That it be noted that feedback would be provided at a following meeting on the proposed international study tour.

         Mr Keun

   4. Seed scheme

      (Resolution 7.4.1 of the SA Groundnut Forum minutes of 22 July 2010)

      The members were in agreement that the issue regarding the options for future seed production had been dealt with adequately.

   5. International Standards

      (Resolution 7.5.1 of the SA Groundnut Forum minutes of 22 July 2010)

      Cognisance was taken of the document "Peanuts, the 'nutty' legume", included as Annexure B. Mr Keun mentioned that the original request related to the nutritional values of specific groundnut cultivars, but that he could only manage to source information on the nutritional values of groundnuts per se. Ms Van Deventer said the issue of international standards had been raised for discussion following on a request from buyers in Europe, in order to comply with international labelling requirements on food composition. She added that the European buyers had not followed up on their initial request.

      The Chairperson ruled that the matter be considered as closed.

   6. Exemption of groundnuts primary producers from Food Safety Auditing

      (Resolutions 7.6.1 and 7.6.2 of the SA Groundnut Forum minutes of 22 July 2010)

      Cognisance was taken of the letter dated 29 October 2010 from the Executive Officer: Agricultural Products Standards Act of 1990, confirming that primary groundnut producers had been exempted from food safety auditing. The Chairperson noted that the exemption did not apply to the processors of groundnuts.

   7. Aflatoxin results

      (Resolutions 7.7.1 and 7.7.2 of the SA Groundnut Forum minutes of 22 July 2010)

      Ms van Deventer reported that the Department of Agriculture, Forestry and Fisheries (DAFF) had expressed concern about the number of groundnut consignments that had been rejected in the recent past, and had launched an investigation into the matter. She said DAFF would revert to the groundnut industry once the investigation had been concluded. She mentioned that the groundnut industry was concerned about the accuracy of feedback received with regard to rejected consignments, and that DAFF had agreed to communicate the pertinent data on a quarterly basis to a task team consisting of representatives from DAFF, the Perishable Products Export Control Board (PPECB) and the Groundnut Forum. The members of the Forum were in agreement that Ms van Deventer would be delegated to represent the Forum on the aflatoxin statistics task team.

      Cognisance was taken of the document "Commission Regulation (EU) No 178/2010 of 2 March 2010", as well as the summary of the regulation, prepared by Mr Bosman. Mr Cohn proposed that DAFF take the necessary steps to implement the regulation as soon as possible. Mr Mosome agreed to follow up on the matter. Mr de Witt agreed that the matter had to receive priority attention, as sampling and analysis held significant cost implications for the groundnut industry. He said the issue would have an effect on PPECB's budgets. Ms van Deventer undertook to formally request DAFF to implement EU regulation 178/2010 as soon as possible, and to copy the request to PPECB.

      Resolved:

      1. That Ms van Deventer be delegated to represent the Forum on the aflatoxin statistics task team.

         Ms van Deventer

      2. That it be noted that DAFF will be formally requested to implement EU regulation 178/2010 as soon as possible, and that the request will be copied to PPECB.

         Ms van Deventer

   8. Chemical residues in the EU

      (Resolution 9.8.1 of the SA Groundnut Forum minutes of 22 July 2010)

      The Chairperson reported that he had consulted with Mr Boshoff on the issue of chemical agents applicable to the groundnut industry. He said Mr Boshoff had suggested that an independent body be appointed to compile such a list. Mr Keun indicated that he would source quotations for the project, for consideration by the Executive Committee of the Forum.

      Resolved:

      1. That it be noted that quotations would be sourced for the compilation of a list of chemical agents applicable to the groundnut industry, for consideration by the Executive Committee of the Forum.

         Mr Keun

   9. Peanut Butter – Gauteng feeding scheme

      (Resolution 7.9.1 of the SA Groundnut Forum minutes of 22 July 2010)

      The Chairperson noted that he would send a written enquiry to the Gauteng Education Department (GED) to determine what had motivated them to delete peanut butter from the list of approved foods in their feeding scheme.

      Resolved:

      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 foods in their feeding scheme.

         Chairperson

   10. Competition Commission

       (Resolution 10.4.1 to 10.4.3 of the SA Groundnut Forum minutes of 22 July 2010)

       Mr Keun reported that the National Agricultural Marketing Council (NAMC) had sent a questionnaire to the various role players to determine what type of information was required within the different industries. He said the NAMC was currently analysing the completed questionnaires, with the view to discussing the matter with the Competition Commission.

       Dr van der Walt noted that issues such as market prices, market shares, licences and distribution agreements were not to be discussed at meetings such as the present. Mr Keun said he was in the process of compiling a list of issues that are not to be discussed at Forum meetings, and suggested that said list be referred to the Management Committee for consideration. Mr Cohn proposed that the list be printed on the agenda of forthcoming meetings.

       Resolved:

       1. That it be noted that a list of issues that are not to be discussed at Forum meetings will be printed on the agendas of forthcoming meetings.

          Mr Keun

   11. Mycotoxins

       (Resolution 10.5.1 of the SA Groundnut Forum minutes of 22 July 2010)

       The Chairperson referred to the resolution that feedback would be provided on the grain industry's work group on mycotoxins. He said he had been informed that the issue concerned procedural aspects when certain research applications were under consideration, and that the matter did not concern the groundnut industry.

8. Industry information and marketing aspects

   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 19 October and the monthly bulletin dated 20 October.

      Mr Cohn said he would like to establish how many co-workers contributed information to SAGIS, whether the information was sourced as per norm, and how reliable the information was. Mr Keun said co-workers had a statutory obligation to provide information to SAGIS. Mr Botha was of the opinion that the information provided by SAGIS was trustworthy.

      Mr de Witt queried the veracity of the import statistics for 2008 to 2010, as reflected in the market information document. He raised the possibility that the statistics for blanched products were not reported on, and added that SAGIS had been requested to include such in their reports. Mr Keun mentioned that SAGIS sourced the information on imports from the South African Revenue Service (SARS).

   2. Crop and Area estimates

      (Resolution 8.2.1 of the SA Groundnut Forum minutes of 22 July 2010)

      Cognisance was taken of the document reflecting the producers' intentions to plant summer crops during the 2010/2011 production season. Ms van Deventer said it had been suggested that the final crop estimate for the 2009-2010 production season should be adjusted, as the final estimate of approximately 88 000 tons did not correspond with the producers' deliveries, as reported to SAGIS. Mr Botha said the final estimates would be adjusted later that month. He was of the opinion that the Crop Estimates Committee's data was trustworthy. He said the yield in the Free State was lower than originally estimated, as there were a number of hectares that could not be harvested, due to wet conditions.

      Cognisance was taken of the document titled "Report on survey amongst industry role players relating to production factors and quality of the 2009/2010 South African peanut harvest", dated 2 September 2010.

9. Feedback: Groundnut industry roleplayers

   (Resolution 9.1 of the SA Groundnut Forum minutes of 22 July 2010)

   Ms van Deventer was of the opinion that there would always be a market for locally produced groundnuts. She said market conditions were positive. Mr Lemmer mentioned that the producers were concerned about weather prospects during the 2010-2011 production season. Dr van der Walt said the implementation of the Consumer Protection Act had been delayed. Some of the implications of the Act were briefly discussed.

10. Additional items

    1. Letter from Grain South Africa

       Mr Lemmer mentioned that GrainSA strived to promote local industry. He said the Industrial Policy Action Plan placed a high premium on import replacement, amongst others. He mentioned that import tariffs were levied to promote the local economy. He said the Trade and Development Cooperation Agreement (TDCA) between the EU and South Africa was currently being revised, and that the groundnut industry should submit an application to the Department of Trade and Industry with the view to reinstating the tariff lines on the import of groundnut products. The members were in agreement that GrainSA's initiative would be supported.

       Mr Lemmer reported that GrainSA was currently investigating the possibility of including an additional crush grade in the producers' guidelines, to provide for an edible crush grade and an oil crush grade. Cognisance was taken of the proposed revised producers' guidelines.

       Resolved:

       1. That the groundnut industry will submit an application to the Department of Trade and Industry with the view to reinstating the tariff lines on the import of groundnut products.

          Mr Keun

    2. Retirement: Mr A Bosman, PPECB

       The Chairperson reported that Mr Bosman had requested not to be honoured with an award for his services to the groundnut industry following on his retirement from PPECB, as he was still involved in the industry.

11. Election of office bearers

    1. Election of Chairperson

       Mr Keun explained that the Chairperson of the SA Groundnut Forum was elected for a period of two years, and acted as representative of the Forum on the Oilseeds' Advisory Committee, although any other member of the Forum could be nominated to act on the Forum's behalf at the Oilseeds Advisory Committee. He called for nominations for the position of Chairperson. The Chairperson indicated that he was not available for re-election to the position.

       Mr Cohn proposed that the election of the Chairperson of the SA Groundnut Forum be postponed to the following meeting. He also suggested that the period of the term of office be debated at that meeting. The members unanimously supported the proposal.

       Mr Keun proposed that discussion item eleven be held in abeyance in its totality, for discussion during the following meeting of the Forum. He said the dates and frequency of meetings and the way forward for the Forum could also be debated at that time. He mentioned that he would clearly indicate that nominations would be called for the various positions, and that he would also indicate what the various portfolios entailed.

       Resolved:

       1. That the election of the Chairperson be held in abeyance until the next meeting of the Forum.

          Mr Keun

    2. Election of Vice Chairperson

       Discussed as part of Item 11.1.

       Resolved:

       1. That the election of the Vice Chairperson be held in abeyance until the next meeting of the Forum.

          Mr Keun

    3. Election of Management Committee

       Discussed as part of Item 11.1.

       Resolved:

       1. That the election of the members of the Management Committee be held in abeyance until the next meeting of the Forum.

          Mr Keun

    4. Research Priority Committee

       Discussed as part of Item 11.1.

       Resolved:

       1. That the election of the members of the Research Priority Committee be held in abeyance until the next meeting of the Forum.

          Mr Keun

12. Meeting dates 2011

    Cognisance was taken that the next meeting of the Forum would be held on 1 February 2011 in Rivonia.

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. He wished all well over the festive season. There being no further matters for discussion, the meeting was adjourned at 13:00.