SA Groundnut Forum (SAGF)
held on 3 November 2022 at 10:00 at the PRF Office building and also by means of a virtual platform (MS Teams)

1. Opening

   The meeting was opened with prayer by Mr W Higgs.

2. Welcome

   The Chairperson welcomed all present to the last meeting of the Groundnut Forum for 2022. She reminded the members that the forum's Terms of Reference will apply for the duration of the meeting.

3. Attendance

   Present
   Ms A Botha	Chairperson
   Mr D Boltman	LB Nuts
   Dr E Briedenhann	OAC
   Mr T Clark	RCL Foods
   Mr GL de Kock	Roba Foods
   Mr H Engelbrecht	PPECB
   Mr J Greef	SA Peanut
   Ms W Haasbroek	SGS
   Mr RW Higgs	Triotrade
   Mr K van Huyssteen	SANSOR
   Mr TG Jansen	C. Steinweg Bridge
   Mr G Keun	Chief Executive Officer
   Ms C Leswifi	DALRRD
   Mr C Louw	Grain SA
   Ms M Mattsson	C. Steinweg Bridge
   Mr V Mapfumari	DALRRD
   Ms S Marape	Inoks Capital
   Ms W Mafiri	DALRRD
   Mr P Moopeloa	Bureau Veritas
   Ms L Muller	Triotrade
   Mr C Nortje	GWK
   Ms L Pansegrouw	Triotrade
   Mr P Sanford	FR Waring (Groundnuts) (Pty) Ltd
   Mr B Schultz	SAGIS
   Mr A Snyman	GWK
   Dr W Snijman	ARC-GCI
   Mr S Thabethe	Department of Health
   Mr C Vercueil	Grain SA
   Mr C van Jaarsveld	Peanut Worx
   Mr PA Visser	SA Peanut
   Ms M Du Preez	OPDT
   Apologies
   Ms M Scheepers	DALRRD
   Ms R Beukes	DALRRD
   Mr N Wegner	PPECB
   Mr G Bruwer	Grain SA
   Mr H Lazarus	LB Nuts
   Mr W Lemmer	Agbiz Grain
   Mr T Prinsloo	ARC-GCI

4. Governance/Personalia

   The Chairperson reminded the forum members that the terms and rules of the Competition Commission needed to be considered.

   The Chairperson wish Mr Gerhard Keun a speedy recovery, after his recent setback with his health.

5. Confirmation of agenda

   The agenda was adopted with the following additions:

   • 7.4.2: Peanut Smut – Import standards from Argentina
   • 7.4.3: Feedback SA Groundnut Symposium

6. Approval of minutes

   1. Approval of the minutes of the meeting of the SA Groundnut Forum held on 20 July 2022

      Resolution:

      1. That the minutes of the meeting of the SA Groundnut Forum held on 20 July 2022, be approved.

7. Matters for discussion

   1. Research and Technology Transfer

      1. ARC Breeding Programme

         The Chairperson mentioned that Dr S Ntladi gave an in-depth presentation at the Groundnut Symposium, which was held on 25 August 2022. The presentation and video are available on the OPDT/OAC website. The Chairperson informed the meeting Dr Ntladi has resigned from the ARC-GCI. Whilst recognising the progress and industry participation facilitated by Dr Ntladi, all matters have been properly handed over and remain well in hand by the team at the ARC-GCI which will continue with the breeding program and evaluation of local and international lines and cultivars, in close collaboration with the industry.

         Mr Keun mentioned that two articles will be published in the Oilseed Focus on the information which was presented at the SA Groundnut Symposium.

         Dr Snijman mentioned that information regarding the cultivars in the breeding programme is available and was presented at a meeting held on 18 October 2022. Dr Snijman will send the document to the OPDT/OAC office which will be attached to the next meeting for information.

         Resolutions:

         1. That two articles will be published on the breeding programme that was presented at the SA Groundnut Symposium that was held on 25 August 2022.

            Chairperson

         2. That information regarding the cultivars in the breeding programme will be attached to the next meeting for information.

            Chairperson
            Mr Keun

      2. Cultivar Maintenance and Trials

         A detailed presentation was delivered at the Groundnut Symposium which was held on 25 August 2022. The presentation and video are available on the OPDT/OAC website.

         CenGen has indicated a willingness to remain involved in future or expanded DNA profiling and testing, depending however on the outcome and development of the short-term project focused on ensuring nucleus and breeder seed integrity as discussed in the mentioned presentation.

      3. Research Projects

         1. Research Funding 2022/2023

            Mr Keun mentioned that the researcher of the project "Addressing Aflatoxin contamination in the South African peanut value chain", indicated that they are still interested to continue with the research.

            A follow-up meeting will be conducted with the researcher once the necessary changes have been finalised at the University of Pretoria. The OAC has already approved a provision for funding the research which should start in March 2023, barring any delays in finalising the project requirements.

            Resolution:

            1. That the researcher is still interested to continue with the project "Addressing Aflatoxin contamination in the South African peanut value chain", and once the necessary changes have been finalised at the University of Pretoria a follow-up meeting will be conducted with the research.

               Chairperson

   2. Tariffs and Levies

      1. Import Tariffs

         An MOU had been signed with DTIC in July 2021; the two applications for import tariffs (Roasted Groundnut and Peanut Butter) were confirmed pending review and a decision by Minister Patel. A general delay was being experienced with ministerial approvals and the consultants had advised that the inaction presented an undue delay in finalising the applications and could be construed as a denial of administrative justice. A letter was sent to Minister Patel to implicate the delay of the import tariffs (Roasted Groundnut and Peanut Butter) on the industry and was followed up, but no feedback was received from the Minister. A legal letter of demand was submitted to the Minister by Prinsloo Bekker Attorneys.

         According to information received via the two applicants, DTIC had follow-up meetings with them, but which did not result in any firm outcome and it seems the process was once again stalled without a clear indication of what could be expected in terms of the next steps.

         The Chairperson confirmed that another attempt was made this week to elicit a response from the DTIC contacts and further undertook to have the necessary discussions with relevant role-players in continued attempts to have this matter resolved by the authorities in question. In support of suggestions from the floor, it is agreed that all parties that have an appropriate opportunity to do so, should lobby on this matter in the interest of an urgent resolution. Contact will be made with the appropriate persons at Agbiz to muster their support on platforms available to them, as the outcome would be in the interest of the wider grain and oilseeds industries.

         Resolution:

         1. That the Chairperson undertook to have the necessary discussions with relevant role-players and lobbying partners in an attempt to have this matter resolved.

            Chairperson
            Mr Keun

   3. Industry Information

      1. Crop and Area estimates

         The contents of the document included in the agenda as Annexure B were noted. In the absence of Mss Beukes and Scheepers, Mr C Vercueil presented the information in respect of the Crop Estimates for Groundnuts for the 2022 season, on their behalf.

         The Chairperson relayed a note of thanks for the good work that has been conducted by Mss Beukes and Scheepers from the Crop Estimates Committee.

      2. SA Grain Information Services (SAGIS)

         The contents of the document included in the agenda as Annexure C were noted.

         Notice was taken of the presentation from Mr Schultz in respect of SAGIS, general feedback, and market information. It was noted during discussions that not all border imports are declared, for example from Zambia and Malawi, as smaller and informal traders would transport smaller, often sub-standard, loads into South Africa for sale by hawkers.

         After a discussion, the Chairperson undertook to have discussions regarding a possible study to investigate products competing and substituting groundnuts and groundnut products.

         Resolution:

         1. That the Chairperson undertook to have discussions regarding a study to investigate products competing and substituting groundnuts and groundnut products.

            Chairperson
            Mr Keun

      3. Perishable Products Export Control Board (PPECB)

         Notice was taken of the presentation from Mr Engelbrecht in respect of the PPECB aflatoxin results.

         The Chairperson mentioned that she reached out to the other laboratories and invited them to participate in the sharing of Aflatoxin testing trends for local and export testing. The inclusion of more reporting facilities might necessitate the consolidation of information in a single report, but this will be determined by the feedback and support received from the laboratories.

         A question was raised by Mr S Thabethe of the Department of Health as to the handling of a consignment which does not comply with the phytosanitary and other standards. The Chairperson answered that in terms of exports and according to the APS Act, aflatoxin certificates proving compliance to maximum levels must be submitted to PPECB as part of the export certification process. If the consignment was not compliant the exporter has two possible options, either to reselect (clean) the product and retest or, depending on the level of aflatoxin detected, sell the product to the local market to be roasted and blanched, and then again be tested for compliance for human consumption.

         If a shipment is rejected by Japanese import authorities due to Aflatoxin or MRL exceedance of import standards, it will be immediately returned to the supplier in South Africa. The re-importation of the shipment will then be processed locally and reported to the Department of Health. Handling non-compliant exports to the EU countries depend on the levels of contamination. This export destination, depending on the detected levels, has official processes and infrastructure to facilitate the processing and retesting of consignments (such as blanching and roasting in case of aflatoxin or controlled aeration in case of MRL exceedance) if agreeable by the importer. Official reporting on rejections are done between import and local authorities and are followed up by the DOH, confirming actions to safeguard against future rejections. According to the DALLRD's SOP in this regard, if an exporter's consignment is rejected for export, Aflatoxin testing is increased for the following 3 to 4 consignments as confirmation of risk mitigation.

         Mr Thabethe is pleased with the summary given by the Chairperson but feels that it is important to have a meeting between the Department of Health and the stakeholders of the groundnut industry to confirm that statutory control with regard to all local, import and export regulations and standards are effectively in place. The Chairperson, on behalf of the industry, welcomes and supports this suggestion.

         The importance of high oleic cultivars, available through local breeding or selection from inter­national sources, was confirmed as an important factor in supporting quality during extended storage and export transit.

         Resolutions:

         1. That the Chairperson will liaise with approved laboratories to participate in the reporting of aflatoxin testing trends as part of a combined report.

            Chairperson

         2. That a meeting between the Department of Health and the stakeholders of the groundnut industry be held to confirm the effective statutory control according to all relevant local, export and import standards and requirements.

            Chairperson
            Mr Thabethe
            Mr Keun

      4. Transparent Market Information

         The Chairperson reported that the Parity Price Model was again discussed in depth and presented at the SA Groundnut Forum Symposium that was held on 25 August 2022. The presentation and video are available on the OPDT/OAC website. Frequent updates will be published and made available by the SA Groundnut Forum, including the OPDT/OAC website and Facebook page. Grain SA undertook previously to include the information as part of their standard reports.

         Resolution:

         1. That frequent updates will be published on the OPDT/OAC webpage and Facebook.

            Chairperson
            Ms Du Preez

      5. Articles

         The contents of the articles included in the agenda as Annexure D were noted.

   4. General

      1. Major Crop Classification of Groundnuts

         The Chairperson reported that groundnuts have been classified as a major crop. During the SA Groundnut Symposium, it was mentioned that chemicals for nematodes were registered on soybeans that might be effective on groundnuts as well. It was also mentioned that the process to register chemicals for minor crops are less stringent than for major crops. She posed the question to the meeting whether it would therefore be prudent to investigate the reclassification of groundnuts as a minor crop.

         After a discussion of the matter, it was decided that it would be advisable to rather register a chemical for minor use for the specific crop. The necessary groundwork needs to be done for such a decision and the industry, including Mr van Huyssteen indicated that they would assist with supporting information and recommendation letters where needed to facilitate such a process. The matter will be investigated and brought back to the forum for discussion.

         Resolution:

         1. 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.

            Chairperson

      2. Peanuts Smut – Import standards from Argentina

         The Chairperson indicated that feedback was received from Argentina regarding the South African phytosanitary standards. They indicated that the South African phytosanitary standard for blanched peanuts was not feasible and requested consideration of the Australian import and phytosanitary standard.

         The Chairperson commented, that based on a previous report from Ms Bezuidenhout, a phytosanitary specialist from SANSOR, according to International phytosanitary standards, it was indicated that a blanched product at 90⁰C for 20 minutes does not guarantee groundnuts to be clear from peanut smut. The Chairperson mentioned that Argentina was however busy with a presentation for South Africa which will be shared once it has been received. The importance of Argentina, as a key source of imported products, in maintaining local demand and processing capacity is paramount, although equally balanced with effective and responsible protection of local soil against infestation.

         After a detailed discussion, it was decided that the feedback from Ms Bezuidenhout from SANSOR be awaited as well as the presentation from Argentina before a final decision will be taken regarding the phytosanitary standards for imports from Argentina and whether, based on the technical and scientific information, an official request to review the standard will be sent to DALRRD.

         On a related matter, Mr Visser raised the question of whether the same MRL compliance standards and control apply to imported product that is in place for exports. Mr Thabethe from the Department of Health answered that it is unclear if MRL testing is required for peanut imports and that further investigation into this matter is necessary.

         Resolutions:

         1. That feedback from Ms Bezuidenhout from SANSOR will be awaited as well as the presentation from Argentina before a final decision will be taken regarding the phytosanitary standards for imports from Argentina.

            Chairperson

         2. That an investigation is necessary to make sure that the necessary MRL testing is required for peanut imports.

            Chairperson
            Mr Thabethe

      3. Groundnut Symposium Feedback

         It was reported that the presentations and videos regarding the SA Groundnut Symposium that were held on 25 August 2022 are available on the OPDT/OAC website (Groundnut Symposium 2022).

         Appreciation has been conveyed to the Oilseeds Advisory Committee and Oilseeds Office – specifically to Mr Keun and his team for the arrangements and planning towards the SA Groundnut Symposium.

8. Election of office bearers

   1. Election of Chairperson

      The Chairperson handed the chair to Mr Keun.

      Mr Keun opened the election process and asked for nominations for Chairperson. Ms A Botha was duly re-elected by unanimous vote as Chairperson for the next two (2) years.

      The Forum members congratulated Ms Botha on her election as Chairperson.

      Resolution:

      1. That Ms A Botha was duly re-elected as Chairperson for the next two (2) years.

         All

   2. Election of Vice-Chairperson

      The current Vice-Chairperson, Mr de Kock previously indicated his intention to retire from this position at the end of 2022 – only completing one year of the term.

      Mr L de Kock however indicated that he is now available to continue as Vice-Chairperson for another year. Mr De Kock was duly re-elected by unanimous vote as Vice-Chairman for 2023.

      The meeting thanked Mr De Kock for his service and availability to complete his current term as Vice-Chairperson.

      Resolution:

      1. That Mr L de Kock will complete the second year of his current term as Vice-Chairperson.

         Chairperson

9. Meeting dates 2023

   The date of the next meeting was scheduled for:

   • 10 February 2023

10. Adjournment

    The Chairperson expressed her gratitude for the contributions and inputs provided by the participants, expressing the hope of renewed personal interaction and attendance of meetings in future. The meeting was adjourned at 12h25.