SA Groundnut Forum (SAGF)
held on 8 November 2006 at 10:00 at the offices of the Oilseeds Industry, Rivonia

1. Opening

   The meeting was opened with a prayer by the Chairman, Mr JCG du Preez.

2. Welcome

   The Chairman heartily welcomed everyone.

3. Attendance

   Present
   Mr JCG du Preez	Chairman
   Dr J Dreyer	ARC-GCI
   Mr G Keun	Chief Executive Officer
   Ms AG Enslin	SAGIS
   Mrs L Moolman	NAMC
   Mr W Loubser	SANSOR
   Mr N Hawkins	Grain SA
   Mrs R Beukes	Department of Agriculture
   Mr GJH Scholtemeijer	Oilseeds Advisory Committee
   Mr N Fouché	Secretariat
   Mr JAM Potgieter	Grain SA
   Mr A Cronjé	Tiger Brands
   Dr J Swanevelder	SANNIC
   Mr J Cohn	OLAM
   Mr BJ Vorster	NWK Beperk
   Mr RW Higgs	Triotrade
   Mr A Patel	Olam SA
   Mr P Sanford	FR Waring
   Mr C Mathews	Department of Agriculture & Land Admin.: Mpumalanga
   Mr PJ van Heerden	PPECB (Bothaville)
   Mr S Coetzee	PPECB
   Apologies
   Mr CJ Wegner	PPECB
   Mr G de Witt	SA Peanut Company
   Mr CJ Lourens	RE Groundnuts
   Mr H Jansen	Alma Boerevereniging
   Ms A van Deventer	SA Peanut Company
   Mr K van den Berg	NWK Beperk
   Mr A Bosman	PPECB
   Mr PG Louw	Grain Silo Industry
   Mr H Koen	Triotrade

4. Personalia

   None.

5. Finalising the agenda

   No items were added to the agenda.

6. Approval of minutes

   1. Approval of the minutes of the SA Groundnut Forum meeting held on 20 July 2006

      Resolved:

      1. That the minutes of the meeting of the SA Groundnut Forum which was held on 20 July 2006 be approved.

7. Matters arising

   1. Good agricultural and processing practices

      It was resolved at the previous meeting, that the Marketing Work Group will draft a promotional document, containg core information about GAP and GMP. The meeting noted that the Marketing Work Group of the Forum was not established yet and that the matter therefore stands adjourned.

      Resolved:

      1. That the matters as noted under resolutions 7.1.1 to 7.1.4 of the previous minutes, stands adjourned.

         Mr Keun

   2. Government Notice R1145: Department of Health

      The meeting took note of two letters received from the Department of Health in respect of imported groundnuts, as included in the agenda papers (dated 11 July 2006 and 12 September 2006). The letter of Grain SA was also noted, in which it is proposed that peanut butter manufacturers who supply aflatoxin-containing products higher than the acceptable levels, should be identified so that appropriate action can be taken.

   3. Sustainability of the groundnut industry

      The Chairman said that the NAMC invited agricultural industries to form work groups with the NAMC, in order to investigate the industries' competitiveness. Mr Keun is in the process of arranging a meeting with the NAMC and the Oilseeds Advisory Committee will discuss the issue at its next meeting.

      The meeting discussed some aspects of the Management Committee's proposals that were included for cognisance in the agenda papers. The meeting was in agreement that regular meetings of the proposed four work groups would be too time-consuming in terms of attendance and administration. It was further agreed that the proposed work groups must be established; that the Management Committee should refer issues to the relevant work groups; that members of the Management Committee must act as conveners of the work group meetings or arrange for conveners; that the work groups may function by telephone, electronic media or meetings; that the conveners must invite industry members whoever they think fit for the meetings; and that all the Forum members must be informed of and invited to attend the work group meetings.

      A meeting was held on 8 September 2006, to discuss the sustainability of groundnut production and the minutes of this meeting was enclosed in the agenda papers. On request of the Forum, dr Dreyer addressed the short-term aspects such as production practices in the form of a document, with the view of more efficient production practices and increased yields. Dr Dreyer briefly explained the project and the Chairman said that the information must be conveyed to the producers on a proactive basis. The meeting agreed that the Management Committee should take decisions about the most appropriate ways to convey information to producers, including the document of Dr Dreyer, with the view to promote sustainable groundnut production.

      The meeting discussed the way that research projects should be handled in future. Until now, the Research Project Evaluation Committee (RPEC) of the Forum evaluated the projects and made proposals to the Forum. The meeting agreed that the OAC be requested to refer future research projects to the Management Committee, which should deal with it according to its discretion.

      Due to the ineffective functioning of the Forum's Crop Estimation Committee until now, the members agreed that this committee should be abolished.

      Resolved:

      1. That the work groups as proposed by the Management Committee must be established; that the Management Committee should refer issues to the relevant work groups; that members of the Management Committee must act as conveners of the work group meetings or arrange for conveners; that the work groups may function by telephone, electronic media or meetings; that the conveners must invite industry members whoever they think fit for the meetings; and that all the Forum members must be informed of and invited to attend the work group meetings.

         Management Committee

      2. That the Management Committee should take decisions about the most appropriate ways to convey information to producers, including the document of Dr Dreyer, with the view to promote sustainable groundnut production.

         Management Committee

      3. That the OAC be requested to refer future research projects to the Management Committee, which should deal with it according to its discretion.
      4. That the Forum's Crop Estimation Committee be abolished.

         Mr Keun

   4. Chemical residues

      The Chairman mentioned that groundnut producers have been informed via the SA Grain magazine and the SA Grain website, of the aspects relevant to the application of chemicals during the current planting season.

   5. Food Safety Forum

      Minutes of the Food Safety Forum meeting which was held on 22 May 2006, was included in the agenda papers.

   6. ARC-GCI: Yield possibilities and groundnut varieties

      It was decided at the previous meeting, to support the ARC's intention to conduct trials with groundnut types with better overseas marketing potential and which can provide better yields. In addition, the Marketing Work Group was requested to propose the way forward relating to the breeding programme, based on marketing potential and higher yields, which must be obtained at no higher costs for the producer.

      The Chairman said that a meeting had taken place previously involving the ARC-GCI, exporters and other Forum members about the issue mentioned above. He mentioned that the Oilseeds Advisory Committee (OAC) decided that the OAC, the Research Project Evaluation Committee of the Forum and OPOT must meet early in 2007 with the ARC-GCI, to evaluate the current research portfolio in order to plan for the changed and changing market requirements.

8. Industry information and marketing aspects

   1. General feedback and market information

      The SAGIS Market Information report was included in the agenda papers and Mrs Enslin elaborated on a few aspects.

      1. Calculation of import and export parity prices for groundnuts

         Mr Scholtemeijer suggested that SAGIS should be requested to publish import and export parity prices, as Mrs Enslin has indicated that SAGIS has new informaton from which such prices can be derived. Mrs Moolman said that the conditions of the Competition Commission should be taken into account. Mr Hawkins said the producers would like to have at least import parity prices that is officially published.

         On proposal of Mr Scholtemeijer (and amendment by Mrs Enslin), the meeting decided that Mrs Enslin must convene a meeting with relevant roleplayers to draft a proposal for the publishing of groundnut import parity prices, which must be considered by the Forum at its next meeting. Mr Scholtemeijer said although SAGIS take the inputs and requirements of industries into account, this company may decide independently to publish useful information that add value to industry roleplayers.

         Resolved:

         1. That Mrs Enslin must convene a meeting with relevant roleplayers and draft a proposal for the publishing of groundnut import parity prices, which must be considered by the Forum at its next meeting.

            Mrs Enslin

   2. Crop and Area estimates

      Mrs Beukes said the re-calculated groundnut crop as published on 28 September 2006 is 74 000 tons – consisting of actual deliveries of 64 254 tons, projected deliveries of 3 246 tons, as well as 6 500 tons for retentions on farms and the informal sector. Due to uncertainty regarding the size of the informal sector, provision was made for 6 500 tons. Comparing the re-calculated groudnut crop figure with the figure estimated by the CEC during September 2006, the Committee has also under-estimated the size of the commercial groundnut crop by 4 300 tons (5,81%). The area planted was left unchanged at 48 550 ha, with an average yield of 1,52 t/ha.

      Calculated final area and crop production figures of sunflower seed, soya beans and groundnuts: 2005/06 production season (published on 28 September 2006):

      Crop	Final area planted	Final crop	CEC area planted	CEC final estimate	Final crop vs final estimate
      	2005/2006	2005/2006	2005/2006	2005/2006
      	HA	TONS	HA	TONS	%
      	(A)	(B)	(C)	(D)	(D) ÷ (B)
      Sunflower seed	472 480	520 000	472 480	527 720	+1,48
      Soya beans	240 570	424 000	240 570	413 995	-2,36
      Groundnuts	48 550	74 000	48 550	69 700	-5,81

      She said that plantings under irrigation comprise about 9 000 ha (18,5%). The first intention to plant groundnuts does not differ significantly from the previous season's plantings (±48 000 ha).

      It was decided at the previous meeting, to request Grain SA to advise the Forum on the extent to which producers process groundnuts at farm level. Mr Hawkins proposed that he and mrs Beukes be made responsible for such a project.

      Resolved:

      1. That Mr Hawkins and Mrs Beukes be responsible for a project to determine the extent to which producers process groundnuts at farm level.

         Mr Hawkins
         Mrs Beukes

9. Research

   1. Presentation by Mr Mathews

      Mr Matthews presented a slide-show overview of his Department's involvement in groundnut development programmes in Mpumalanga.

10. Finances

    The meeting took note of the financial report measured against the budget for the period March 2006 to September 2006, as included in the agenda papers.

    The 2007/2008 draft budget was also included in the agenda papers. In the light of the restructuring of the Forum, Mr Keun was requested to revise the draft budget accordingly and to submit it in time to the OAC, prior to the approval thereof by OPOT in February 2007.

    Resolved:

    1. That the draft budget (2007/2008) must be revised according to the Forum's restructuring requirements, which must be submitted in time to the OAC, prior to the approval thereof by OPOT in February 2007.

       Mr Keun

11. Additional items

    None.

12. Election of office bearers

    1. Election of Chairman

       Mr JCG du Preez was nominated and the nomination was seconded.

       It was also agreed that the Chairperson should represent the SA Groundnut Forum on the Oilseeds Advisory Committee (OAC).

       Resolved:

       1. That Mr JCG du Preez be re-elected as Chairperson of the SA Groundnut Forum for a two-year term.

          Mr Keun

       2. That the SA Groundnut Forum be represented on the OAC by the Chairperson.

          Mr Keun

    2. Election of Vice-Chairman

       Mr C Lourens was nominated and the nomination was seconded.

       Resolved:

       1. That Mr C Lourens be elected as Vice-Chairperson of the SA Groundnut Forum for a one-year term.

          Mr Keun

    3. Election of Management Committee

       The following persons were nominated on the Management Committee:

       Mr JCG du Preez	Chairman
       Mr CJ Lourens	Vice-Chairman / Processors
       Mr P Sanford	Exporters
       Ms M Edwards	Peanut butter manufacturers
       Me L Moolman	Consumers
       Mr JAM Potgieter	Producers
       Mr PJ van Heerden	PPECB

       Resolved:

       1. That the following members be elected on the Management Committee:

          Mr JCG du Preez	Chairman
          Mr CJ Lourens	Vice-Chairman / Processors
          Mr P Sanford	Exporters
          Ms M Edwards	Peanut butter manufacturers
          Me L Moolman	Consumers
          Mr JAM Potgieter	Producers
          Mr PJ van Heerden	PPECB

          Mr Keun

13. Meeting dates

    The Forum meetings for 2007 are scheduled as follows:

    • 13 February 2007
    • 19 April 2007
    • 19 July 2007
    • 7 November 2007

14. Adjournment

    The Chairman thanked all the members for their attendance and inputs. He adjourned the meeting at 15:30.