SA Groundnut Forum (SAGF)
held on 14 February 2019 at 10:00 at the offices of the Oilseeds Industry, 49 River Road, Woodmead

1. Opening

   Mr Keun opened the meeting with a prayer.

2. Welcome

   The Chairperson welcomed all present at the meeting of the SA Groundnut Forum and extended a special welcome to Dr E Briendenhann who is the newly elected Chairperson of the Oilseeds Advisory Committee, and reminded the meeting that the roles, conduct, and guidelines as set out in the forum's Terms of Reference will apply.

3. Attendance

   Present
   Ms A Botha	Chairperson
   Dr E Briendenhann	OAC
   Mr H Engelbrecht	PPECB
   Mr N Hawkins	SAGIS
   Mr G Keun	Chief Executive Officer
   Mr C Krüger	Bureau Veritas
   Mr C Louw	Grain SA
   Dr N Mnonopi	PPECB
   Mr R Mommsen	C Steinweg Bridge
   Ms L Muller	Triotrade
   Dr D Naicker	CSIR
   Ms M Scheepers	DAFF
   Mr W Snijman	ARC Grain Crops Institute
   Mr P van Heerden	PPECB
   Mr K van Huyssteen	SANSOR
   Mr C van Zyl	Triotrade
   Mr CJ Wegner	PPECB
   Apologies
   Mr G Bruwer	Grain SA
   Mr L De Kock	Roba Foods
   Mr S Heilbron	PPECB
   Mr RW Higgs	Triotrade
   Mr T Jansen	C Steinweg Bridge
   Mr H Lazarus	LB Nuts
   Mr R Nerwich	Botnim TDG
   Mr K Nienaber	RE Groundnuts (Pty) Ltd
   Mr GC Nortje	GWK
   Ms H Terblanche	ARC Grain Crops Institute
   Mr PA Visser	Golden Peanut

4. Personalia

   None reported.

5. Finalisation of agenda

   The agenda was accepted, with the addition of:

   • Item 8.4 – Grain SA Marketing Aspects: Groundnut Specialist Work Group

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.

   Chairperson
   Forum Members

7. Matters arising from the minutes

   1. Strategic Industry Plan

      Notice was taken of the document, SA Groundnut Forum Projects & Key Objectives 2016/17, provided during the meeting.

      After the discussion of the document, the Chairperson said that the revised version would be submitted at the next meeting.

      Resolution:

      1. a. That a revised document will be submitted at the next meeting.

         Chairperson
         Mr Keun

      1. Groundnut Symposium

         In response to the Chairperson's suggestion that the matter in respect of the Groundnut Symposium be removed from the agenda, it was decided to rather keep the matter on the agenda.

      2. Farmers' Day

         The Chairperson provided a summary of the concept agenda for the farmers' days. She said that the proposed dates are from 2 April 2019 until 12 April 2019 and plans were in place for two farmer days will be in North West the third one will be a combination between the GWK area and Golden Peanut, and the fourth day at RE Groundnuts in Viljoenskroon.

         She mentioned that arrangements would be made for the four day trip in conjunction with Grain SA, although it is important to note that the days will be open to the maximum farmers, regardless of Grain SA membership. Communication of these days will be done via selection plant, farmers co-op's and Grain SA.

         Mr Wegner mentioned that he and Mr Van Heerden would not be available the first week of April.

         After further discussions, the Chairperson decided that she will contact the selected facilities for alternative dates and communicate with the forum members via email.

         There was an inquiry as to where seeds can be purchased and how to enter the Groundnut market. Mr Hawkins mentioned that every one that is involved in the Groundnut Industry, except for the producers, are registered with SAGIS and that the list is available on the SAGIS website.

         Mr Van Huysteen mentioned that all groundnut seed companies are available on the SANSOR website.

         1. That the Chairperson will contact the selected facilities for alternative dates in respect of the proposed farmers' days and communicate with the forum members via email.

            Chairperson
            Mr Keun
            Members

   2. LEAF services

      (Resolution 7.2.1 of the SA Groundnut Forum minutes of 30/10/2018)

      Mr Hawkins mentioned that a consulting group under the leadership of Dr Hamman Oosthuizen from Optimal Agricultural Business Systems were busy compiling a business plan for LEAF Services.

      Resolution:

      1. That progress related to LEAF Services/SGS, be communicated to the forum members.

         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 30/10/2018)

         The Chairperson gave a brief overview of the tariff proposal and mentioned that the project was approved by the Oilseed Advisory Committee on 6 February 2019. She said that feedback for the BFAP study would be available at the end of March.

         Mr Keun mentioned that as soon as the report is available, it will be sent to the Industry for discussion and comments, before implementation and that the Oilseeds Advisory Committee will also discuss the matter.

         Resolution:

         1. That feedback on the tariff proposal will be communicated to the Forum members as soon as it is available.

            Chairperson
            Mr Keun

   4. GAP Audits

      (Resolution 7.4.1 of the SA Groundnut Forum minutes of 30/10/2018)

      The Chairperson mentioned that the Overview Committee and DAFF had a meeting to consider the current status of the GAP audits, alternative systems, and submitting recommendations on the way forward.

      The Chairperson said that it was decided to combine the inputs to find a solution for a shorter audit process on the farms. Furthermore, to try and push as much of the control back to the selected facilities who have HACCP or BRC or a similar kind of process in place. The said process will make it possible for PPECB to audit the facilities, but still, be able to do spot checks on farms.

      The Chairperson said that she did not complete the proposal yet and that she would try to get it to the work group by the end of February 2019. If the work group is satisfied with the suggestion, she will send it to DAFF. After the acceptance by DAFF and that it complies with the requirements of the legislation, they will bring it back to the table to see if it is workable for PPECB. When DAFF completes the process, only then will they sign off on the audit process.

      Resolution:

      1. The Chairperson undertakes to compile a proposal for an alternative audit process and make it available to DAFF.

         Chairperson
         Mr Keun

   5. Japanese delegation visit

      (Resolutions 7.5.1 and 7.5.2 of the SA Groundnut Forum minutes of 30/10/2018)

      The Chairperson said that there were suggestions from the Industry to postpone the visit to Japan to 2020, and the forum members agreed.

      The Chairperson undertook to communicate with the Tokyo liaison officer for Agriculture and Forestry at the Embassy of the Republic of South Africa to inform them that South Africa is experiencing a drought, and thanking them for the opportunity and that the trip will be postponed.

      Resolution:

      1. That due to the drought in South Africa the Japanese trip will be postponed.

         Chairperson
         Mr Keun
         Members

   6. Imports, Quality and Aflatoxin Control

      (Resolution 7.6.1 and 7.6.2 of the SA Groundnut Forum minutes of 30/10/2018)

      The Chairperson said that no feedback had been received from the Department of Health. She mentioned that she had sent an email to Ms Penny Campbell again without any response.

      Mr Louw noted that this item is an essential point on the agenda due to the possibility of imports this year.

      The Chairperson is committing to send a follow-up email to Ms Penny Campbell from the Department of Health with regards to the Imports, Quality, and Aflatoxin Control.

      Resolutions:

      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 made on how the matter will be dealt with.

         Chairperson
         Mr Keun

   7. SAMSA verified gross mass

      (Resolution 7.9.1 of the SA Groundnut Forum minutes of 30/10/2018)

      The Chairperson provided a brief update on the SAMSA matter that was previously tabled by Mr Lazarus. She mentioned that she again contacted the SAMSA office and that their views were that the legislation is sufficiently clear and in place. SAMSA approve their assigned service providers on pre-determined criteria, but allow some leeway in how they wish to interpret and execute their mandate. Exporters may choose from the list of approved appointees whom they wish to appoint to facilitate their certification according to a mutually agreeable contract and cost structure. The Chairperson said that the legislation could be seen as vague – spesifically with regards to so called ad-hoc inspections – and that the solution could be to have the regulation's wording amended. She mentioned that there were two options to deal with this matter, namely:

      • That exporters are more informed and adamant when they enter into negotiations with the certifying bodies/companies – specifically contractually clarifiying ad-hoc inspections, cost thereof, the need for on-site inspection of paper processes/procedures and acceptability of other certification companies' approval of 3rd party infrastructure; or
      • Like minded exporters/entities should consider forming a group to obtain a legal opinion as it might be the only way that they can get the wording of the relevant regulation changed.

      In light thereof that no other members showed further interest in the matter as well as the fact that the Forum as a body cannot become involved in commercial contracting between exporters and certification bodies, the Chairperson suggested that the item is finalised and can be removed from the agenda.

   8. Visit by Japan Government

      (Resolution 7.10.1 of the SA Groundnut Forum minutes of 30/10/2018)

      The Chairperson mentioned that she has not yet completed the report and assured the Forum that there is no marketing information or critical information from the Japanese Government and it is purely an overview of the Japanese importing logistics.

      Resolution:

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

         Chairperson
         Mr Keun

8. Industry information and marketing aspects

   1. Crop and area estimates

      Ms Scheepers presented her report about the final crop and yield for 2018 and the preliminary area planted for 2019.

      Mr Louw noted that in the event of timely rain, the farmers would have had sufficient time to plant as their intentions in October 2018 were there.

      Concerns about the availability of seed for the following season were raised, and Ms Muller informed the Forum that the selection facilities prioritise seeds first before export.

   2. SAGIS: General feedback and market information

      Mr Hawkins presented the weekly and monthly information, included as Annexure D.

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

   3. PPECB Laboratory Services: Groundnut Report

      Mr Engelbrecht presented the groundnut volume that was analysed over the last four years.

      It was important to note that the local product and the imported product were reported separately since June 2018. From the data it is derived that compliance for export product indicates good and proper management, although the local market control still remains a concern.

   4. Grain SA Marketing Aspects: Groundnut Specialist Workgroup

      Mr Louw from the Grain SA provided an informative presentation on Grain SA Marketing Aspects.

      The Chairperson thanked Mr Louw for the information presented.

9. Research

   1. Research Projects: 2019/2020 financial year

      Mr Keun presented the list of research projects for the 2019/2020 financial year. The Chairperson thanked Mr Keun for the detailed information and asked if the information can be made available annually. Due to the low attendance, a short overview will be presented at the next meeting by Mr Keun.

      Resolution:

      1. That Mr Keun will give a short overview of the Research Projects: 2019/2020 Financial Year at the next meeting.

         Chairperson
         Mr Keun

   2. Feedback on cultivar evaluation project

      The Chairperson gave feedback on behalf of Mr De Kock and mentioned that the Cultivar Evaluation Project is running smoothly.

      Mr Snijman informed the Forum that the results for the Cultivar Evaluation Project would be available from September 2019.

      The Chairperson thanked the members involved.

      Resolution:

      1. That the results for the Cultivar Evaluation Project would be available from September 2019.

         Chairperson
         Mr Keun

   3. Breeding and seed propagation

      The Chairperson mentioned that Mr De Kock, Mr Keun, and herself went to meet with the ARC and that Mr De Kock undertook to draw up a draft Memorandum of Understanding for further consideration and discussion.

      The Chairperson said that it's not only about cultivar development but that a major concern is to ensure and support seed availability and how Industry might support the ARC in this regard. The project is running, and members will be kept up to date on the progress.

      The Chairperson mentioned that once the Memorandum of Understanding has been drawn up, it will be circulated to the Forum members for comments whereafter it will be presented to the ARC.

      Resolution:

      1. That once the Memorandum of Understanding has been set up, it will be circulated to the Forum members for comments.

         Chairperson
         Mr Keun

   4. Groundnut Grading

      The Chairperson gave a short overview of the new Groundnut grading guidelines, as discussed during previous meetings, including the Grain SA Groundnut Work Group and noted that the new additions to the grading guidelines have been accepted and will be tested and implemented by selection facilities in due course.

      Primary producers are of the strong opinion that the guidline should continue to refer to a moisture level at intake of 7% (level at which farmers are compensated). The reference to 6% moisture can remain in the guideline, but only for reference should a primary producer and selection plant wish to agree on a different basis. It was noted that most farmer stock deliveries take place below 6% moisture (natural drying) and that moisture very easily move below 7% and closer to 6% in the case of mechanical drying.

      Mr Wegner and Mr de Kock are working on adjusting the official guideline document and tables for ease of use and implementation. It was suggesed that the new process is tested at selection plants during the 2019 crop intake for final implementation planned for 2020 crop. It was however noted that it is important that as many primary producers as possible are exposed to this guideline and new standard as soon as possible as it will go a long way in addressing distrust or the perception thereof between famers and selection plants.

      This matter can be regarded as finalised, but will be placed back on the Agenda in case of any new developments.

      Resolution:

      1. That the Groundnut Grading process has been accepted and will be implemented as per the final report.

         Chairperson
         Mr Keun

10. Additional matters

    1. Articles

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

11. Meeting dates 2019

    The following meeting dates were scheduled for 2019:

    • 17 July
    • 28 October

12. Adjournment

    There being no further business to discuss, the meeting was adjourned at 12h45.