OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE


Minutes

SA Groundnut Forum (SAGF)
held on 19 July 2023 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 Keun.

  2. Welcome

    The Chairperson welcomed all present to the meeting of the Groundnut Forum. 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
    Dr E Briedenhann OAC
    Mr D Boltman Lorenz South Africa (Pty) Ltd
    Mr H Engelbrecht PPECB
    Ms DR Mosehla OPDT
    Mr J Greef SA Peanut
    Mr RW Higgs Triotrade
    Mr TG Jansen C. Steinweg Bridge
    Mr G Keun Chief Executive Officer
    Ms C Leswifi DALRRD
    Mr W Madiba DALRRD
    Ms M Mattsson C. Steinweg Bridge
    Ms L Muller Triotrade
    Mr C Nortjé GWK
    Ms L Pansegrouw Triotrade
    Mr P Sanford FR Waring (Groundnuts) (Pty) Ltd
    Mr B Schultz SAGIS
    Ms M Scheepers DALRRD
    Mr S Shandu OPDT
    Mr A Snyman GWK
    Dr W Snijman ARC-GCI
    Ms L Swart SGS
    Mr K van Huysteen SANSOR
    Mr A van Rensburg Tiger Brands
    Ms H Viljoen Grain SA
    Mr T Tintinger SA Peanut
    Ms J Tselentis SANCU/OPDT
    Ms M Du Preez OPDT

    Apologies

    Mr PA Visser SA Peanut
    Mr G van Wyk V.G.M.
    Mr GL de Kock Roba Foods
    Mr W Lemmer Agbiz Grain
    Dr A van der Vyfer SACOTA
    Dr S Steenkamp ARC-GCI
    Mr T Prinsloo ARC-GCI
    Mr C Vercueil Grain SA
    Mr T Clark RCL Foods
  4. Governance/Personalia

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

  5. Confirmation of agenda

    The agenda was accepted as it stood.

  6. Approval of minutes

    1. Approval of the minutes of the meeting of the SA Groundnut Forum held on 10 Fe­bruary 2023

      Resolution:

      1. That the minutes of the meeting of the SA Groundnut Forum held on 10 February 2023, be approved.
  7. Matters for discussion

    1. Research and Technology Transfer

      1. ARC Breeding Programme

        (Resolution 7.1.1.1 on the Groundnut Forum minutes of 10/02/2023)

        The Chairperson mentioned that a meeting was held on 16 February 2023 between ARC Management, Mr De Kock, Mr Lazarus and herself as representatives of the South African Groundnut Association (SAGA) but also presenting the industry goals and interests. Dr Mashingaidze confirmed a replacement was still being sought for Dr S Nkladi, but that breeders were notoriously difficult to source. As the principal researcher, Dr Mashingaidze stood in until an appointment could be made to ensure a functional productive groundnut breeding program can continue as before.

        In the meantime, other challenges still include funding the breeding and cultivar development program. The ARC applied the basic principle and specific needs of the industry. However, the groundnut breeding programme remains their flagship, and the ARC will continue without industry funding. The ARC does acknowledge the contribution of the industry with the cultivar trials, but it remains important to formalise support and collaboration, as has been illustrated by the talks between the ARC and the industry during the last couple of months.

        The Chairperson mentioned that some discussion also took place on other options for the industry and the ARC to develop a closer working relationship. One of the ideas was around a joined cultivar development proposal, which will be implemented by the ARC, but perhaps in consortium with the SAGA, ICRISAT and the Oil and Protein Seeds Development Trust/Oilseeds Advisory Committee (OAC/OPDT). A similar example of such a program was how the maize breeding program was working, which could include international, public, and private partnerships. A good example was the National Research Organisation from other countries, ICRISAT and local seed companies and farmers with funding as mentioned. This could even be extended to the DALRRD and include options such as the cost of exchanging scientists.

        It was decided that the ARC will investigate drafting such a consortium proposal, but due to a few other issues that need to be put in place. The consortium proposal will be followed up with the ARC and feedback will be communicated to the forum members.

        The ARC was requested that the advertisement from the ARC for the breeder position be obtained and communicated to the forum members.

        Resolutions:

        1. That the industry will continue to be involved in the breeding programme and that feedback will be communicated to the forum members.

          Chairperson
          SAGF

        2. That it be noted that the ARC will investigate drafting a consortium proposal.

          Chairperson

        3. That the consortium proposal will be followed up with the ARC and feedback will be communicated to the forum members.

          Chairperson
          SAGF

        4. That the advertisement from the ARC for the breeder position be obtained and communicated to the forum members.

          Chairperson
          SAGF

      2. Industry Collaboration - ARC Cultivar Development, Evaluation, Maintenance and Seed Multiplication

        (Resolution 7.1.2.1 of the Groundnut Forum minutes of 10/02/2023)

        The Chairperson said the ARC also confirmed that although royalties and reports were kept up to date without licensing contracts being in place between the ARC and seed companies, such licensing agreements were now required by the ARC auditors, which would include certain performance clauses for both parties and the ability to reconcile royalties with SANSOR information per variety. The ARC's role and strategy were explained to be focused on benefitting from the collection of royalties rather than breeder seed sale income. These licensing agreements will be non-exclusive and will assist the ARC in determining the volume of breeder seed that needs to be prepared. The process must allow seed companies to produce seeds profitably and sustainably.

        It was agreed that the SAGA will have further discussions regarding the production of breeder seed and that such breeder seed will in future only be sold to seed companies that were duly registered with SANSOR and have a licensing agreement with the ARC. The draft agreements were circulated by the ARC to the various seed companies, but due to some technical and practical concerns, the SAGA facilitated a meeting of seed companies to compile inputs and suggestions to the draft agreements, including clarification of both parties' responsibilities and liabilities regarding seed quality. The suggested amendments were currently being reviewed internally by the ARC and further discussion and review might be required upon receipt of an updated standard contract draft.

        Resolutions:

        1. That the SAGA will have further discussions regarding the production of breeder seed and that such breeder seed will in future only be sold to seed companies that were duly registered with SANSOR and have a licensing agreement with the ARC.

          Chairperson

        2. That discussion and review might be required upon receipt of an updated standard contract draft.

          Chairperson

      3. Research Projects

        1. Research Funding 2022/2023

          (Resolution 7.1.3.1.1 of the Groundnut Forum minutes of 10/02/2023)

          The Chairperson thanked the forum members who offered comments regarding the proposed project "Addressing Aflatoxin contamination in the South African peanut value chain" that was circulated. The Chairperson and Mr Keun had a meeting with the researcher to discuss the concerns regarding the scope and proposed sampling plan contained in the project application. A revised project plan was presented, but after careful consideration, it was decided that the project would be limited in the data output and that the expectation of new information becoming available from the project was doubtful. The project was therefore not approved by the OPDT/OAC.

        2. Consumer & Product Research

          (Resolution 7.1.4.1 of the Groundnut Forum minutes of 10/02/2023)

          The Chairperson reported that two projects by the University of Pretoria have been submitted to address the resolution taken by the forum.

          • A scoping study of peanuts in the South African consumer market

            This project proposes to perform an initial pilot study which will consist of a literature review and market investigation. This review will take into consideration the availability of peanuts and peanut products from different retail outlets, including mainstream and low-cost retailers as well as health shops. The accessibility of the different peanut products will be noted along with the price of the different products. Product line analysis will be conducted to evaluate the scope of peanuts in the consumer food market.

          • Exploring peanuts as a diverse food product in the mid and lower-income groups

            This project was also supported by a joint project with Soya to be done through a consumer survey. The opinions and beliefs about groundnuts as a portion of whole food as well as its processed derivatives within the low to middle-income consumer group will be investigated using consumer perception studies. These studies allow the industry to get a clear understanding at the grassroots level of consumers' perceptions, opinions, consumption patterns, and purchasing decisions regarding a product. Identifying and understanding the needs of peanut consumers will allow the South African groundnut industry to implement market segment-specific approaches for return on investment.

          Mr Keun mention that the above-mentioned projects will be recommended to the Oilseeds Advisory Committee consecutively and feedback will be communicated to the forum members.

          Resolution:

          1. That the projects:
            • A scoping study of peanuts in the South African consumer market; and
            • Exploring peanuts as a diverse food product in the mid and lower-income groups will be recommended to the Oilseeds Advisory Committee consecutively and feedback will be communicated to the forum members.

            Chairperson
            Mr Keun
            SAGF

    2. Tariffs and Levies

      1. Import Tariffs

        (Resolution 7.2.1.1 of the Groundnut Forum minutes of 10/02/2023)

        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 the Minister of Trade and Industry. A general delay with the ministerial approvals was experienced. The consultants advised that the inaction presented an undue delay in finalising the applications and could be construed as denying administrative justice. A letter was sent to Minister Patel via the legal council to explain the implication of 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 2nd legal letter of demand was submitted to the said Minister by Prinsloo Bekker Attorneys.

        The Chairperson confirmed that DTIC has since reached out to RCL as the official applicant for the Peanut Butter application on behalf of the industry. Some discussion took place with a request to meet with the industry to further discuss and understand the industry's need for protection using aligned import tariffs, but possibly also discuss what would be required in turn from the industry.

        In preparation for such a discussion and with financial support via the OAC, BFAP was requested to update the previous report compiled to support the applications and to assist in planning and facilitating such a meeting with the department. The planning meeting took place on 29 June 2023 with representatives from the applicants, Forum and BFAP. We assisted with further information on the BFAP report and discussed how such a discussion could be focused and kept on point. Whilst BFAP was updating the report, RCL was in contact with the DTIC team to try and set up a meeting date and time.

        It was understood and expected as a possible barrier to the approval of the applications, that the DTIC is currently very cautious against any action that could increase the price of basic food items, especially a product such as peanut butter which was deemed an affordable and accessible protein and high nutritional food item. We however remain positive that the larger consideration surrounding the future of the industry would carry substantial weight in their final decision.

        Resolution:

        1. That feedback regarding the Import tariff applications be communicated to the forum members.

          Chairperson
          Mr Keun
          SAGF

      2. Japan Import Tariffs

        The Chairperson mentioned that various emails to the DTIC were sent to set up a meeting date to discuss options in addressing the possibility of requesting Japan to lower or remove import tariffs on SA groundnuts has not yet yielded any tangible results. The department indicated that they would facilitate such discussions with Japanese counterparts, but no further progress has been made in setting up any engagements. The last email was sent on Tuesday, 18 July 2023 and the Chairperson will provide feedback and request support for such a meeting as soon as a suitable date has been determined.

        Resolution:

        1. That feedback regarding the Japan Import Tariff be communicated to the forum members.

          Chairperson
          Mr Keun
          SAGF

    3. Industry Standards and Regulatory Matters

      1. Peanuts Smut – Import Standards from Argentina

        (Resolution 7.3.1.1 of the Groundnut Forum minutes of 10/02/2023)

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

        The Chairperson reported that after a lengthy consultation both locally and with Argentinean stakeholders the import requirements for blanched peanuts for human consumption have been finalised.

      2. Crop Protection: Minor Use Classification

        (Resolution 7.3.2.1 of the Groundnut Forum minutes of 10/02/2023)

        The Chairperson referred to an ongoing survey of Dr Steenkamp from ARC-GCI which will consolidate current issues experienced by farmers and could be addressed by a research project. Feedback in this regard will be communicated to the forum members.

        Ms Viljoen mentioned that Grain SA has confirmed with the Registrar according to ACT 36 of 1947, if any products already exist on the list and need to be adjusted Grain SA will assist in this regard.

        Resolutions:

        1. That feedback from Dr Steenkamp's survey regarding current issues experienced by farmers will be communicated to the forum members.

          Chairperson
          SAGF

        2. That Grain SA has confirmed with the Registrar according to ACT 36 of 1947, if any products already exist on the list and need to be adjusted Grain SA will assist in this regard.

          Grain SA

      3. Import Quality, Regulatory Control and MRL Testing

        (Resolutions 7.3.3.1, 7.3.3.2 of the Groundnut Forum minutes of 10/02/2023)

        The Chairperson reported that feedback from Mr Thabethe was received on 11 July 2023. He mentioned that the delegation of the Directorate: Food Control which was the regulatory authority, and the Cluster: Port and Environmental Health Services, which were enforcement authorities met on 14 February 2023 to discuss groundnut import control on maximum residue levels (MRLs). The meeting also took advantage of including groundnut import and local control on aflatoxin levels.

        During the said meeting it was agreed on the following that:

        • The Department of Health (DoH) does lack the testing of MRLs on groundnuts, generally a decision was taken that the Department of Agriculture, Land Reform and Rural Development (DALRRF) would be contacted to request any information and data on MRLs testing that they do;
        • The Directorate: Food Control would provide a list of maximum residue levels (MRLS) in groundnuts in terms of the relevant regulations;
        • The Port Health would start collecting samples of MRLs but would await guidance from the two authorities on the process of sampling/testing and which residue to test for;
        • The Port Health was also requested data from the coastal region on issues relating to aflatoxins; and
        • The meeting also agreed to have quarterly meetings to discuss issues that impact food control, port and environmental health services regarding regulations, training, liaison, etc.

        The next meeting was scheduled for 27 July 2023 where the requested information and data will be tabled.

        Resolutions:

        1. That feedback from Mr Thabethe was awaited regarding a meeting with Port Health and Environmental Health Services.

          Chairperson
          Mr Keun

        2. That a workshop will be held with relevant role players to discuss concerns and questions that the industry may have regarding import, exports and MRL testing.

          Chairperson
          Mr Keun

      4. FICA Amendments and Compliance

        The Chairperson mentioned that communication was shared with forum members regarding the new FICA amendments and compliance. According to the updated regulations, any entity or person selling items valued at R100 000 or more was now also deemed accountable institutions according to the FICA Amendments.

        The webinar information was available if the forum members were interested, they can request the information from the Oilseeds Office. The forum intended to inform members of the regulations as the groundnut industry was not exposed to FICA. The Chairperson said it, remains everyone's choice on how they proceed on this matter.

    4. Industry

      1. Crop and Area Estimates

        The contents of the document included in the agenda as Annexure C were noted and notice was taken of the presentation of Ms Scheepers in respect of the fifth production forecast for Ground­nuts for the 2023 season.

      2. SA Grain Information Services (SAGIS)

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

        Notice was taken of the presentation of Mr Schultz in respect of SAGIS, general feedback, and market information.

      3. Perishable Products Export Control Board (PPECB)

        No feedback was reported from PPECB.

        The forum requested that PPECB submit their report to the Oilseeds Office for circulation to the forum members. PPECB was also requested to advise the industry on MRL testing on the export of groundnuts specifically the frequency and where the tests were conducted.

        Resolutions:

        1. That PPECB be requested to submit their report to the Oilseeds Office for circulation to the forum members.

          Chairperson
          PPECB
          SAGF

        2. That PPECB be requested to advise the industry on MRL testing on the export of groundnuts and specifically the frequency and where the tests were conducted.

          Chairperson
          PPECB

      4. Articles

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

      5. Industry Project for price structure and producer profitability

        (Resolutions 7.5.3.1 and 7.5.3.2 of the Groundnut Forum minutes of 10/02/2023)

        The Chairperson reported that Grain SA was requested to assist in formulating their concerns and viewpoints regarding a price structure and producer profitability. This remains a matter of interest to all role-players and if we were to move forward as a cohesive future-driven industry we should not be scared to table difficult subjects that could lead to division and mistrust if not handled and communicated in an open, objective, and fair manner. Feedback will be communicated to the forum members.

        Resolution:

        1. That Grain SA be requested to assist in formulating their concerns and viewpoints to adequately address the matter in respect of a price structure and producer profitability.

          Chairperson

    5. General

      1. Intended phase-out of active ingredients and products classified as CMR categories 1A and 1B

        (Resolution 7.5.1.1 of the Groundnut Forum minutes of 10/02/2023)

        Notice was taken of the documents in respect of the intended phase-out of active ingredients and products classified as CMR categories 1A and 1B.

        After a discussion of the documents, it was resolved that the industry will be kept informed of any further communication in this regard and comments to be forwarded to the Oilseeds Office to be forwarded to CropLife which was in contact with the Registrar's Office regarding the intended phase-out of active ingredients and products classified as CMR categories 1A and 1B.

        Resolution:

        1. That the industry will be kept informed of any further communication in this regard and comments to be forwarded to the Oilseeds Office to be forwarded to CropLife which was in contact with the Registrar's Office regarding the intended phase-out of active ingredients and products classified as CMR categories 1A and 1B.

          Chairperson
          Mr Keun

  8. Meeting dates 2023

    The date of the next meeting was scheduled for:

    • 24 October 2023
  9. 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 11h30.