SA Groundnut Forum (SAGF)
held on 30 October 2018 at 10:00 at the offices of the Oilseeds Industry, 49 River Road, Woodmead

1. Opening

   Mr Van Wyk opened the meeting with a prayer.

2. Welcome

   The Chairperson welcomed all present at the meeting of the SA Groundnut Forum.

3. Attendance

   Present
   Ms A Botha	Chairperson
   Mr G Scholtemeijer	OAC
   Mr S Heilbron	PPECB
   Ms S Matai	PPECB
   Mr CJ Wegner	PPECB
   Mr GC Nortjé	GWK
   Mr RW Higgs	Triotrade
   Ms L Müller	Triotrade
   Mr T Jansen	C Steinweg Bridge
   Mr R Mommsen	C Steinweg Bridge
   Ms M Scheepers	DAFF
   Mr C Dominic	Thokoman
   Ms C Mokabe	DAFF
   Dr C van der Merwe	Tiger Brands
   Mr PA Visser	Golden Peanut
   Mr P van Wyk	VGM
   Mr C Louw	Grain SA
   Mr L van der Walt	Grain SA
   Mr L De Kock	Roba Foods
   Mr W Snijman	ARC Grain Crops Institute
   Mr G Keun	Chief Executive Officer
   Apologies
   Mr H Lazarus	LB Nuts
   Mr H Engelbrecht	PPECB
   Mr G Bruwer	Grain SA
   Mr N Hawkins	SAGIS
   Mr K van Huyssteen	SANSOR
   Mr J Swanevelder	ARC
   Mr T Prinsloo	ARC Grain Crops Institute
   Mr C van Zyl	Triotrade

4. Personalia

   None.

5. Finalisation of agenda

   The agenda was tabled and noted.

6. Approval of minutes

   The minutes of the meeting held on 30 October 2018 were approved as a true reflection of the proceedings.

   Resolution:

   1. That the minutes of the meeting of the SA Groundnut Forum held on 30 October 2018 be approved as a true reflection of the meeting.

   Chairperson
   Forum Members

7. Matters arising from the minutes

   1. Strategic Industry Plan

      The Chairperson suggested that the matter be held in abeyance until the first meeting in 2019. She said it would be good to regroup early next year. Progress will be reported at the next meeting.

      1. Groundnut Symposium

         The Chairperson suggested that the matter stand over as a discussion point on the agenda.

      2. Farmers' Day

         The Chairperson requested Mr Van der Walt for some suggestions regarding the matter.

         Mr Van der Walt mentioned the Groundnut work group at Grain SA had a discussion regarding the matter in order to get more involved with the groundnut farmers. He mentioned that they of the opinion that specific groundnut farmers' days in collaboration with the Forum and the processors must be organised to get the farmers together to inform them about the working of the industry.

         Mr Van der Walt also mentioned that they are planning those farmer days around mid to end of March specifically in the groundnut producing areas, like the North West region.

         The Chairperson mentioned that she and Mr De Kock also had a discussion regarding the matter. She said that some of the suggestions was to re-introduce the industry on the producer's level, to do a presentation on the Oilseed Advisory Committee, the grading process and the groundnut cultivar evaluations. She mentioned that the suggestion was for a five day trip to five locations.

         During the discussions members enquired regarding the dates and the fact that school holidays must be taken into consideration. Mr Van der Walt mentioned that suggestions were made for either the middle or the end of March 2019.

         The Chairperson said that as soon as dates have been set the matter will been taken further.

      3. National School Nutritional Programme

         The Chairperson suggested after a short discussion and detailed background that the matter can be regarded as finalised.

   2. LEAF services

      (Resolution 7.2.1 of the SA Groundnut Forum minutes of 18/07/2018)

      The Chairperson suggested that the matter be held in abeyance as there is nothing to be discussed or to report.

      Resolution:

      1. That the Forum members be kept informed of any progress relating to discussions about LEAF Services/SGS.

         Chairperson
         Mr Keun
         Members

   3. Tariff codes on blanched groundnuts

      1. Import tariffs

         (Resolution 7.3.1.1 of the SA Groundnut Forum minutes of 18/07/2018)

         The Chairperson mentioned that during the previous meeting of the Forum a decision was taken to investigate the possibility of BFAP doing a study on the issue of tariff codes on groundnuts and groundnut products.

         The Chairperson and Mr Keun had a meeting with BFAP during May regarding the matter. She said despite asking them continuously for a project to put forward for financing no feedback was received. Mr Keun confirmed that Professor Meyer said that they would investigate and submit a proposal as well as a budget.

         The Chairperson asked if there was any alternatives regarding the matter.

         Mr Louw mentioned that BFAP has done the groundnut studies previously and that they also have done a lot of work in the oilseed complex. He suggested to try and make contact with BFAP again.

         Resolution:

         1. That BFAP be requested to submit a project proposal in respect of import tariffs on groundnuts.

            Chairperson
            Mr Keun

   4. GAP Audits

      (Resolution 7.4.1 of the SA Groundnut Forum minutes of 18/07/2018)

      The Chairperson mentioned that DAFF requested a meeting with the Overview Committee to revisit the GAP auditing process and that the meeting would be held after the Groundnut Forum meeting. She said that the MRL allowed the revisit of the process and procedures as often as necessary.

      Mr Louw mentioned that it's not a matter of not wanting the GAP audits, but a responsibility for the export market to know that the food was produced in a safe matter. He said that the results of the previous must be taken in consideration and identify the real risks and then maybe relook the audit system.

      Resolution:

      1. That a meeting between DAFF and the Overview Committee, to consider the current status of the GAP audits, alternative systems and the submitting of recommendations on the way forward, will be held after the Groundnut Forum meeting.

         Chairperson
         Mr Keun

   5. Japanese delegation visit

      (Resolutions 7.5.1 of the SA Groundnut Forum minutes of 18/07/2018)

      The Chairperson mentioned that she had forwarded an invite to the members to visit Japan and that she received feedback from a few members that was interested.

      During further discussion of the matter it was agreed that September 2019 would be a suitable time to visit Japan.

      The Chairperson said that she has been in contact with Mr Isohato, the Tokyo liaison officer for Agriculture and Forestry at the Embassy of the Republic of South Africa and that they would help with all the necessary arrangements.

      During the discussion, members enquire about, the length of the visit and the estimated cost of the visit.

      The Chairperson said that a cut-off date would be set for end of November 2018 in order to start with the planning and the organizing of the visit. She said that the visit would be four (4) official days as everyone has to carry their own costs.

      The Chairperson said that the costs can only be determined after preliminary programme is available. She also said that she would inform Mr Isohato that an amount of fifty thousand rand, including flights, per person was available. As soon as she has the necessary information, feedback will be given.

      Resolution:

      1. That a cut-off date would be set for end of November 2018 in order to start with the planning and the organizing of the visit and that the visit would be four (4) official days.

         Chairperson
         Mr Keun
         Members

      2. That the Chairperson will give feedback to members with regards to the cost for the visit to Japan, as soon as it is available.

         Chairperson
         Mr Keun
         Members

   6. Imports, Quality and Aflatoxin Control

      (Resolution 7.6.1 of the SA Groundnut Forum minutes of 18/07/2018)

      The Chairperson express her displeasure as no feedback from the Department of Health had yet been received and the fact that Mr Thabethe is not attending the meeting.

      The Chairperson mentioned that she had resent her previous emails to Ms Penny Camble and Mr Thabethe to schedule a meeting with them without any success. The Chairperson committed to follow up on the matter.

      Ms Matai requested that PPECB also be involved in the meeting with the Department of Health. Mr Louw mentioned that they can also help setting up a meeting with Department of Health.

      After a lengthy discussion of the matter, it was decided that feedback from the Department of Health would be awaited, after which a decision would be taken on how to deal with the matter.

      Resolution:

      1. That the Department of Health be requested to comment on possible procedures in respect of border post imports.

         Chairperson
         Mr Keun

      2. That feedback from the Department of Health is awaited, after which a decision will be taken on how the matter will be dealt with.

         Chairperson
         Mr Keun

   7. HACCP / BRC

      (Resolution 7.7.1 of the SA Groundnut Forum minutes of 18/07/2018)

      The Chairperson mentioned that she did research and that HACCP will not be phased out.

      Mr Heilbron confirmed the chairperson's findings and explained that the difference between BRC and HACCP standards.

   8. Zero vat listing: peanut butter

      The Chairperson mentioned that there was no indication in the media that the lists had been finalised.

      Mr Scholtemeijer confirmed that the Minister of Finance announced the zero VAT list and peanut butter was not on the list.

   9. SAMSA verified gross mass

      (Resolution 10.7.1 of the SA Groundnut Forum minutes of 18/07/2018)

      The Chairperson proceed with a presentation on the working of SAMSA. She mentioned that the document will be circulated to the members and also be included in the documents of the next meeting.

      Resolution:

      1. That cognisance been taken that the presentation of the Chairperson will be distributed to the members of the forum.

         Chairperson
         Mr Keun

   10. Visit by Japan Government

       Notice was taken regarding the visit of the Japan Government during August 2018. The Chairperson said that good feedback was given and that a report regarding their visit will be distributed once received.

       Resolution:

       1. That a report regarding the Japan Government's visit during August 2018 will be distributed once received.

          Chairperson
          Mr Keun

   11. World Trade Organisation (WTO) Renewal of Thirum

       The matter has been discussed during the previous meeting and Grain SA offered to discuss the matter with their members. The Chairperson wanted to know from Grain SA if there was any feedback regarding the matter.

       Mr Louw said that the matter was discussed with SANSOR, CropLife and their members but the indication was that there is not a replacement for Thirum.

   12. Transparent price discovery mechanism

       Mr Van der Walt referred to the 2012 Groundnut Value Chain Study by BFAP. He gave a presentation regarding a price discovery mechanism.

       After discussions Mr Louw mentioned that the reason for the exercise is not to get to a specific price, but to get a starting point for a farmer or a broad idea various members of the forum gave their input, some other raised concerns and it was agreed that the matter be further handled by Grain SA.

8. Industry information and marketing aspects

   1. Crop and area estimates

      The contents of the report about the preliminary area planted and final production estimate, dated 26 September 2018, received from the Crops Estimates Committee, were noted.

      The Chairperson thanked Ms Scheepers for the information presented.

      Concerns were raised by members about the future of the peanut industry and the effect of cotton production on the groundnut industry.

      Mr Scholtemeijer suggested that Mr Keun make available the income and cost budgets where other commodities or competing commodities are compared, so that the industry can see where they stand.

      Resolution:

      1. That the income and cost budget be submitted at the next meeting.

         Chairperson
         Mr Keun

   2. SAGIS: General feedback and market information

      The contents of the weekly and monthly information, included as Annexure C, were noted.

      Cognisance was taken of the updated information regarding the groundnut market tabled during the meeting.

   3. PPECB Laboratory Services: Groundnut Report

      The Chairperson mentioned that Mr Engelbrecht excused himself so his normal report was not available. She presented slides regarding the matter.

      Questions were raised with regards to the rejections and retesting of the product that was higher than previously.

      The Chairperson said that she will send an email to PPECB to clarify the figures regarding the rejections and retesting.

      Resolution:

      1. That PPECB be requested to clarify the figures of the rejections and retesting of product.

         Chairperson
         Mr Keun

9. Research

   1. Research Projects: 2019/2020 financial year

      Mr Keun reported that the final list of research projects for the 2019/2020 financial year will be submitted at the next meeting.

      Resolution:

      1. That the final list of research projects for the 2019/2020 financial year will be submitted at the next meeting.

         Chairperson
         Mr Keun

   2. Feedback on cultivar evaluation project

      The Chairperson gave background on the Cultivar Evaluation Project that was overseen by Mr De Kock.

      Mr De Kock said that the trials were completed and that the final outcome will be given as soon as it is available.

   3. Breeding and seed propagation

      The Chairperson referred to the minutes of 18 July 2018. She said that she, Mr Keun, Mr De Kock and Mr Louw had a meeting with Dr Mollendorf, General Manager of Culdevco The groundnut industry need to establish a small work group that will collaborate with the ARC. The ARC needed to appoint one or two people from their side, to formalise the terms of reference etc.

      The main purpose of the work group is to assist the ARC with seed multiplication programs and afterwards assist in cultivar evaluations. But more specifically formalise a structure and a more focused output, to report back to the industry with their needs and problems. The Chairperson said that it's not about cultivar development but to sort out the seed situation.

      The Chairperson said that once the terms of reference has been finalised, document will be circulated to the Forum members for comments.

      Resolution:

      1. That the groundnut industry established a small work group that will collaborate with the ARC. The ARC needed to appoint one or two representatives from their side, to formalise the terms of reference of the work group.

         Chairperson
         Mr Keun

      2. That once the terms of reference has been finalised, the document will be circulated to the Forum members for comments.

         Chairperson
         Mr Keun

   4. Groundnut Grading: Mr CJ Wegner, PPECB

      Mr Wegner gave more detail with regards to the document attached as Annexure D to the agenda. He said that there are two aspects of the research that needs to be implemented. Firstly is to incorporate it as part of the producer guidelines and secondly the deduction of the quality and the physical aspects of the kernels that needs to be done. (The recommendation will be to actually take the tables and included it as part of the guideline document and add it as part of that grading guideline.)

      During the discussion Grain SA indicated that the producers were unhappy about the fact that there was a percentage difference of 6% (2017) and 7% (2018). Mr Louw requested that the project continue for a third year.

      The Chairperson said that she is of the understanding that the results of the 2 years research was complete and that a 3rd year was unnecessary. She requested Grain SA to submit a written motivation why the research needed to continue for a third year. The decision taken was to implement the results of the 2 year study, however the possibility of further studies can still be requested and explored.

      Resolution:

      1. That Grain SA submits a written motivation why the research need to continue for a third year.

         Chairperson
         Mr Keun

      2. That the results of the 2 year study be implemented, however the possibility of further studies can still be requested.

         Chairperson
         Mr Louw

10. Additional matters

    1. Snippets

       The snippets included in the agenda as Annexure E, were discussed as they appeared.

    2. Articles

       The contents of the documents included in the agenda as Annexure F, were noted.

    3. MRL List

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

11. Election of office bearer

    1. Election of Chairperson

       The Chairperson handed the chair to Mr De Kock.

       The Vice-Chairperson opened the election process and asked for nominations for Chairperson. Ms A Botha was duly reappointed by unanimous vote.

       The Forum congratulated her on her reappointment as Chairperson.

       Resolution:

       1. That Ms A Botha was reappointed by unanimous vote as Chairperson of the Groundnut Forum.

          All

12. Meeting dates 2019

    The following meeting dates were scheduled for 2019:

    • 14 February
    • 17 July
    • 28 October

13. Adjournment

    There being no further business to discuss, the meeting was adjourned at 13h45.