SA Groundnut Forum (SAGF)
held on 18 April 2006 at 10:00 at the offices of the Oilseeds Industry, Rivonia

1. Opening

   Mr N Wegner opened the meeting with prayer.

2. Welcome

   The Chairman heartily welcomed everyone.

3. Attendance

   Present
   Mr JCG du Preez	Chairperson
   Ms M Edwards	Nola
   Mr GA de Witt	SA Peanut Company
   Ms A van Deventer	SA Peanut Company
   Mr GJH Scholtemeijer	OAC
   Ms M de Jager	SAGIS
   Ms R Beukes	NDL
   Dr J Dreyer	LNR-IGG
   Mr A Cronje	Tiger Brands
   Mr M Mosome	NDL
   Mr GC Nortjé	Gulk
   Mr W Higgs	Triotrade
   Mr JAM Potgieter	GSA
   Mr ICJ van Zyl	GSA
   Mr CJ Wegner	PPECB
   Mr G Keun	OPDT
   Mr N Fouché	Secretary
   Apologies
   Mr PG Louw	GSI
   Mr DJ Kok	GSI
   Mr J Vorster	NWK
   Ms HJ Wilken	SANCU
   Mr H Jansen	Alma Boerevereniging
   Mr CJ Lourens	RE Groundnuts
   Mr A Bosman	PPECB
   Mr J Cohn	Senwes
   Mr H Koen	Triotrade
   Ms A Enslin	SAGIS
   Dr CJ Swanevelder	SANNIC
   Mr B Makhafola	NDL
   Mrs L Moolman

4. Personalia

   The meeting noted that mr Corrie Lourens is recovering from an operation. Mr Vermaak will not attend the Forum meetings anymore, because of restructuring at Grain SA. Messrs van Zyl and J Potgieter of Grain SA attended the Forum meetings for the first time and were specially welcomed.

5. Finalising the agenda

   The agenda was finalised.

6. Approval of minutes

   1. Approval of the minutes of the SA Groundnut Forum meeting held on 9 November 2005

      Resolved:

      1. That the minutes of the meeting of the SA Groundnut Forum which was held on 9 November 2005 be approved.

      Mr De Witt proposed and mr Wegner seconded.

7. Matters arising

   1. Good farming and processing practices

      The meeting noted that the Groundnut Traders and Processors Association (GTPA) took ownership of the GMP document of which some 18 were supplied to its members. Mr De Witt asked what the GTPA has done to promote the document amongst other processors and if the National Department of Agriculture (NDA) was aware of the progress made in this regard. Mr Cloete said that the issue will be discussed at the GTPA's next meeting on 10 May 2006. Dr Dreyer proposed that the GMP and GAP documents and the websites where they are published, must be brought to the attention of overseas buyers and potential overseas buyers who are known to the industry.

      The meeting agreed, on proposal of Ms Van Deventer, that a single promotional document must be compiled with core information of GAP and GMP, to be provided to overseas buyers and potential overseas buyers. Mr Cloete proposed that details of the processors who bought and apply the GMP must be listed in such a promotional document. In the mean time, the Chairman will inquire with Grain SA if they would approve publishment of the GAP on OPOT's website and the compiling of a promotional document to explain GAP and GMP. Likewise, Mr Cloete will ask approval at its next GTPA meeting for publishment of the GMP on OPOT's website and the compiling of a promotional document to explain GAP and GMP.

      Mr De Witt said that he was not successful in his liaison with CMI yet for the writing of transport guidelines to be included in the GMP document. If there is no substantial progress in his dealing with CMI within two weeks, he will consider other options. It is however important to know how PPECB will audit the transport of groundnuts. A Cape-based firm was consulted, who informed SA Peanut Company that there is no official transport document for the grain and oilseeds industries. However, the firm provided SA Peanut Company with principles that are applicable to the pharmaceutical industry which could just as well suit the groundnut industry. Mr Wegner said according to PPECB, transport is not part of GMP and that there is no document available for groundnuts that are applied as yet.

      The meeting agreed that, should SA Peanut Company make no substantial progress with CMI in compiling a transport document for groundnuts within two weeks, SA Peanut Company is requested to collaborate with PPECB, prepare a guideline transport document until a formal document is obtained from an accepted body such as Codex. Mr Wegner said according to PPECB, transport is not part of GMP and that he is not sure if a transport document is available as yet.

      Resolved:

      1. That cognisance is taken that the Groundnut Traders and Processors Association (GTPA) will at its next meeting, discuss the promotion and implementation of the GMP document amongst those processors who did not buy the GMP document.

         Members

      2. That a single promotional document will be compiled with core information of GAP and GMP, to be supplied to overseas buyers and potential overseas buyers; and that details of the processors who bought and apply GMP will be listed in such a promotional document: subject to resolution 7.1.4.

         Mr Keun

      3. That the GMP and GAP documents and the websites where they are to be published, must be brought to the attention of overseas buyers and potential overseas buyers who are known to the industry: subject to resolution 7.1.4.

         Mr Keun

      4. The Chairman will inquire with GSA if they would approve publishing of the gap on OPOT's website and the compiling of a promotional document to explain GAP and GMP.

         Likewise, Mr Nortjé will ask approval at its next GTPA meeting for publishment of the GMP on OPOT's website and the compiling of a promotional document to explain GAP and GMP.

         Chairman
         Mr Nortjé

      5. That, if SA Peanut Company achieves no substantial progress with CMI in compiling a transport document for groundnuts within two weeks, SA Peanut Company in collaboration with PPECB, prepare a guideline transport document until a formal document is obtained from an accepted body such as Codex.

         Mr De Witt

      6. That Mr Wegner will establish if there exist transport guidelines accepted by PPECB, which can be applied for groundnuts.

         Mr Wegner

   2. Government Notice R1145: Department of Health

      No response was received after letters were written to the DoH (as per decisions taken at the previous meeting).

      Imported consignments are often kept for too long at the harbour before being released, as there are delays in the releasing of aflatoxin results.

      The meeting discussed the requirements regarding imported groundnuts. Mr Andries Cronje mentioned that consignments are imported from African countries as farmers' stock, for final processing in South Africa. On dr Dreyer's proposal, the meeting accepted that:

      • Imported groundnuts must comply with the standards as applicable to the South African groundnut industry;
      • Import consignments with HACCP certificates should be subject to "spot checks" and those consignments without HACCP certificates should be subject to thorough scrutiny.

      The Chairman mentioned that a meeting between Mr Dries Pretorius (Directorate Food Control of the DoH), peanut butter manufacturers and other affected parties will be held on 12 May 2006 to address issues of concern to the latter sector of the industry. He said that he would like the Directorate: Nutrition of the DoH to also attend.

      Resolved:

      1. That, in discussions with the DoH, the Forum will brought to the DoH's attention that:
         • Imported groundnuts must comply with the standards as applicable to the South African groundnut industry;
         • Imported consignments with HACCP certificates should be subject to "spot checks" and those consignments without HACCP certificates should be subject to thorough scrutiny.

         Chairman

   3. Groundnut grading regulations

      It was noted that the information regarding Regulation R966 (Grading, Packing and marking of peanuts destined for sale in the RSA) is available on the NDA website. Mr De Witt proposed that industry roleplayers be informed of the regulation, by making use of SAGIS' data base.

      Resolved:

      1. That industry roleplayers will be informed of Regulation R966, by making use of SAGIS' data base.

         Mr Keun

   4. Sustainability of the groundnut industry – strategy

      It was noted that the Steering Committee did not pay attention to this aspect as yet.

   5. Chemical residues

      Ms Van Deventer said that a quotation was still awaited from Qualitrack and that she will inform the Oilseeds industry's office by e-mail as soon as it is available. Japan has issued new legislation in respect of chemical residues but an English version is not available at the moment.

      Mr Van Zyl said that Mr Makhafola has during a meeting of the Grain Group on Food Safety, offered that the NDA would share information on chemical residue's relating to grains and oilseeds, with the Forums. He mentioned that the Wheat Forum and the Maize Forum asked the NDA in writing to make it available. He proposed that the SA Groundnut Forum also write a letter to the NDA in this regard. Mr Wegner said that Mr Makhafola referred to generic information about sampling results.

      Mr De Witt proposed that the processors and exporters be made aware of the chemicals that may be used for the period until September 2006. The Chairman requested the GTPA to inform its members accordingly.

      Resolved:

      1. That the SA Groundnut Forum will request the NDA in writing, to make generic information about groundnut sampling results, available to the Forum.

         Mr Keun

      2. That the GTPA will inform its members of chemicals that may be used for the period until September 2006.

         Mr Nortjé

   6. Foreign matter

      It was noted that the GTPA will attend to the issue (as per resolution 11.4.1 of 9 November 2005) at its meeting of 10 May 2006.

      Resolved:

      1. That the GTPA will attend to the issue (as per resolution 11.4.1 of 9 November 2005) at its meeting of 10 May 2006.

         Mr Nortjé

   7. Status of the forum

      The meeting agreed with the understanding that the SA Groundnut Forum does not constitute a legal persona and that no legal opinion is to be obtained in this regard.

8. Industry information and marketing aspects

   1. General feedback and market information

      The meeting took note of SAGIS' reports as included in the agenda and handed out at the meeting.

      1. Calculation of import and export parity prices for groundnuts

         A long discussion took place after a remark of Mr Scholtemeijer, that import parity should be based on a country from where groundnuts are imported mostly. Mr Scholtemeijer proposed that a similar calculation as for soy beans be applied to determine a landed price for groundnuts, for publication on the Advisory Committee's web page. He said that Dr Griessel could be approached for advice. Mr Van Zyl said that a meeting between SAGIS and Grain SA is scheduled for 24 April 2006 to discuss the calculation of import parity for groundnuts.

         Resolved:

         1. That it is accepted that import parity prices for South African groundnuts must be based on a country from where groundnuts are imported mostly.

            Members

   2. Crop and Area estimates

      The meeting noted the Crop Estimates Committee's report of 23 March 2006:

      	2005/2006	2004/2005
      Area estimate (ha)	49 550	40 000
      Final production estimate (tons)	83 575	64 000
      	1,69 t/ha	1,60 t/ha

9. Additional items

   1. Radio programme

      Mr Scholtemeijer invited roleplayers to make use of the radio programme if they wanted to convey matters concerning any discipline of the groundnut industry to the agricultural community and the public in general. He mentioned that Mr Matthews in Mpumalanga experimented with trials of ICRISAT cultivars, with whom a radio interview could be held. The Chairman undertook to approach Mr Matthews to address the Forum in this regard.

      Resolved:

      1. That Mr Matthews (Mpumalanga) will be requested to share his experiences with regard to ICRISAT trials with the Forum.

         Chairman

   2. Draft export standards and requirements for groundnuts

      The Draft Export Standards and Requirements for Groundnuts were published in the Government Gazette, for comments until 30 April 2006. The document was included in the agenda.

      After discussion it was resolved that:

      Resolved:

      1. That "Klas Virginiese Ranker" must be changed to "Klas Virginiese Tipe".

         Members

      2. That "Grade 1 split" and "Grade 2 split" must apply for split groundnuts.

         Members

      3. That "HPS" (Hand-picked Selected) and FAQ (Fair Average Quality) must be re-introduced, for which PPECB will write definitions.

         Members

      4. That the NDA will be requested to provide clarity on clause 35 of the draft document.

         Members

      5. That a delegation consisting of messrs De Witt, Wegner and Du Preez (Chairman) will request a meeting with the NDA to discuss the draft regulation and in particular, clause 35.

         Members

      6. That the members of the Forum will be informed of the outcomes of the discussions referred to above in writing, before the next Forum meeting.

         Members

      7. That the Forum will inform the NDA in writing of the proposed amendments.

         Members

      8. Once the regulation is published, the Forum will announce it in the media and will make it known to all affected parties.

         Members

   3. "Food Safety Forum"

      A document titled "Draft outline for Proposed Traceability SOP – Discussion, 27 March 2006" formed part of the agenda papers. The Chairman who attended the discussion, said that a steering committee was appointed to make recommendations in this regard. He will enquire with the NDA and PPECB regarding progress and will provide feed-back. Mr De Witt mentioned that the European Snack Association has compiled guidelines for groundnuts in this respect.

      The Chairman said that enquiries were made on the status of the SA Groundnut industry in respect of the European Union's requirements. He said that he liaised with the European Snack Association and the European Nut Association, to enquire how the European authorities will apply GMP and Eurepgap (i.e. what Europe's requirements are for exports to Europe). Legislation in respect thereof came into effect on 1 January 2006. It was also enquired what the buyers (importers) policies regarding this aspect were. Response is still awaited.

      Resolved:

      1. That the Chairman will enquire regarding requirements by NDA on imported groundnuts.

         Chairman

   4. Report: Management commitee

      The Management Committee's report following its meeting on 31 March 2006 and 4 April 2006 was handed out at the meeting.

      Point 3.1 regarding groundnut research of the said report was discussed.

      In the light of the local capacity problems and the expensive and time-consuming process to develop cultivars, the meeting agreed that foreign cultivars should be trial-tested in South Africa. Dr Dreyer said that the official cultivar list consists of 9 cultivars plus three new successful entries of which two are from Zimbabwe. Although the ARC-GCI is compelled to maintain basis seed for all of the cultivars, significant quantities of basis seed only exists for Akwa and Kwarts. The Chairman mentioned that one of the largest processor uses the unlisted Anel.

      Point 3.3 was discussed and the recommendations were accepted.

      The Chairman requested the members to carefully peruse the report, for discussion at the next meeting. He emphasised that the success of a viable industry, as proposed in the report, will be enhanced by the introduction of active work groups.

      Resolved:

      1. In the light of the local capacity problems, the expensive and time-consuming process to develop cultivars locally, the meeting agreed that foreign cultivars should be trial-tested in South Africa.

         Members

      2. That the recommendations set in point 3.3 of the report of the Management Committee be accepted.

         Members

      3. That the Forum members must carefully peruse the Management Committee's report, for discussion at the next meeting.

         Members

   5. Control lists for plants regarding food safety

      Mr Wegner said that he evaluated a procedures document that was provided by the GTPA at the hand of the NDA's control list. He informed the Forum in detail of the amendments that he has made in the document. Critical aspects such as aflatoxin, grading, moisture and foreign matter as well as the management thereof are addressed by this procedures document.

      He said that the GTPA's procedures document provided for the minimum standards. However, BRC and Eurepgap certification require successful auditing of a more extensive questionnaire. Compliance with the GTPA's procedures will empower a plant to be very close to the standards set for BRC and Eurepgap. Ms Van Deventer proposed that the GTPA must ensure that all its members adopt and apply the procedures document referred to. The Forum noted that certain aspects are not covered in the procedures document, which should be addressed.

      Resolved:

      1. That the GTPA's members will be informed of the content and status of the procedures document that was compiled by the GTPA and evaluated and amended by the PPECB.

         Mr Nortjé

10. Meeting dates

    The next Forum meetings were previously scheduled as follows:

    • 20 July 2006
    • 8 November 2006

11. Adjournment

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