SA Groundnut Forum (SAGF)
held on Tuesday 21 February 2024 at 10:00 at the PRF Office building and also by means of a virtual platform (MS Teams)
Opening
The meeting was opened with prayer by the Chairperson.
Welcome
The Chairperson welcomed all present to the first meeting of the Groundnut Forum for 2024.
The Chairperson extends a warm welcome to all the new members who attend the SA Groundnut meeting for the first time and invites them to participate in the discussions that will take place.
Attendance
Present
Ms A Botha Chairperson Dr E Briedenhann OAC Mr T Clark RCL Foods Mr RW Higgs Triotrade Mr G Keun Chief Executive Officer Mr H Lazarus Lorenz SA (Pty) Ltd Mr W Lemmer Agbiz Grain Ms S Rudolph RCL Foods Mr B Schultz SAGIS Ms M Scheepers DALRRD Mr C Vercueil Grain SA Ms J Tselentis SANCU/OPDT Ms M Du Preez OPDT Via MS Teams
Mr D Boltman Lorenz SA (Pty) Ltd Ms P Campbell Department of Health Mr H Engelbracht PPECB Mr M Fache DALRRD Ms W Haasbroek SGS Mr C Kenny RCL Foods Ms C Leswifi DALRRD Ms S Marape Peanut Worx (Pty) Ltd Ms P Mondhlane Bureau Veritas Mr M Mojapelo DALRRD Mr P Moopeloa Bureau Veritas Ms L Muller Triotrade Mr R Nerwich Botnim Trading (Pty) Ltd Ms L Pansegrouw Triotrade Ms J Pretorius SA Peanut Mr F Prinsloo Tiger Brands Mr L Olivier SA Peanut Mr P Sanford FR Waring (Groundnuts) (Pty) Ltd Dr W Snijman ARC-GCI Dr S Steenkamp ARC-GCI Mr M van der Merwe SA Peanut Apologies
Mr GL de Kock Roba Foods Mr PA Visser SA Peanut Mr T Prinsloo ARC-GCI Mr K van Huysteen SANSOR Governance/Personalia
The Chairperson reminded the forum members that the terms and rules of the Competition Commission needed to be considered and that the forum's Terms of Reference would apply for the duration of the meeting.
No personalia was reported.
Confirmation of agenda
The agenda was accepted as it stood, with the addition of the following points:
- 7.3.3 — The local quality verification of Leaf Services
- 7.1.3.4 — Nematode Studies, Dr Steenkamp (from Resolution 7.3.1.1 24/10/2023)
It was noted that the matter of Peanut Butter recalls would be discussed under Point 7.3.1.
Approval of minutes
Approval of the minutes of the meeting of the SA Groundnut Forum held on 24 October 2023
Resolution:
- That the minutes of the meeting of the SA Groundnut Forum held on 24 October 2023, be approved, with the following correction:
Page 3, final sentence: "to breeders" to be replaced with "for commercial seed production"
- That the minutes of the meeting of the SA Groundnut Forum held on 24 October 2023, be approved, with the following correction:
Matters for discussion
Research and Technology Transfer
ARC Breeding Programme
(Resolutions 7.1.1.1-7.1.1.4 on the Groundnut Forum minutes of 19/07/2023)
The Chairperson confirmed that plans remain for the publication of an updated cultivar booklet containing information on all ARC-registered cultivars. Any private cultivar owner was welcome to submit their cultivar details for inclusion. The Chairperson also mentioned that she has contacted SANSOR and the ARC and that some information has already been shared. The relevant persons involved were thanked for their cooperation thus far. If a draft document was available by the next forum meeting, it will be circulated to the forum members. The Chairperson requested that any information on cultivars, including their characteristics and breeding history, would be appreciated for inclusion in the booklet.
The Chairperson also reported that Dr Snijman from the ARC confirmed that the updated production manual should be ready for printing and distribution by the end of March 2024 if all goes according to plan. The ARC-Grain Crops publication committee recommended some further updates, which were almost all incorporated to allow for the planned timeline for printing and distribution.
The Chairperson mentioned that the appointment of a new breeder at the ARC was still pending, and therefore, the matter can be removed from the agenda. The industry will be updated once the appointment was made during the working collaboration with the ARC.
Any updates and developments will be communicated to the forum members.
Resolutions:
- That if a draft cultivar booklet was available by the next forum meeting, it will be circulated to the forum members.
Chairperson
SAGF - That an updated production manual should be ready for printing and distribution by the end of March 2024.
SAGF
- That any updates and developments regarding the ARC Breeding program will be communicated to the forum members.
Chairperson
Mr Keun
SAGF
- That if a draft cultivar booklet was available by the next forum meeting, it will be circulated to the forum members.
Industry Collaboration - ARC Cultivar Development, Evaluation, Maintenance and Seed Multiplication
(Resolutions 7.1.2.1 and 7.1.2.2 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson has reported that, in terms of Seed Breeder Contracts, there were no new developments to report at the moment. However, the members involved will keep the industry informed of any new demands. Once new demands were received, the industry will engage with the relevant parties and provide feedback accordingly.
Resolution:
- That any updates and developments regarding the proposed breeder seed contracts will be communicated to the forum members.
Chairperson
SAGF
- That any updates and developments regarding the proposed breeder seed contracts will be communicated to the forum members.
Research Projects
Research Funding 2024/2025
Mr Keun reported that the projects up for consideration for the 2024/25 financial period will took place on 22 February 2024. A list of approved projects will be communicated to the forum members.
Resolution:
- That a list of approved projects be communicated to the forum members.
Mr Keun
SAGF
- That a list of approved projects be communicated to the forum members.
Consumer & Product Research
(Resolution 7.1.3.2.1 of the Groundnut Forum minutes of 19/07/2023)
Mr Keun mentioned that Dr Muller informed him that she was not yet prepared for a presentation regarding the project titled "A Scoping Study of the Consumer Market and Exploring Peanuts as a Diverse Food Product in Mid- and Lower-Income Groups". Mr Keun has requested that the presentation be postponed until further notice.
Resolution:
- That Dr Muller will be invited to give a presentation at a next forum meeting regarding the project titled "A Scoping Study of the Consumer Market and Exploring Peanuts as a Diverse Food Product in Mid- and Lower-Income Groups".
Mr Keun
SAGF
- That Dr Muller will be invited to give a presentation at a next forum meeting regarding the project titled "A Scoping Study of the Consumer Market and Exploring Peanuts as a Diverse Food Product in Mid- and Lower-Income Groups".
Generic Marketing Groundnuts
The Chairperson mentioned that an enquiry regarding the inclusion of groundnuts In the Grow for Gold competition was sent to SA Grain which responded recently as follows through Mr Louw:
Grain SA is willing to consider any new additions to the competition. However, the decision to introduce a new category will depend on the level of interest from participants and the availability of sponsors to provide prize money. If both a dryland and irrigation categories were to be introduced, it would require a minimum R60 000.
Grain SA's experience with wheat has shown that there was a struggle to generate sufficient entries to get the program off the ground. However, in principle, Grain SA are keen to consider the option.
Mr Vercueil pointed out that entries for the competition were submitted directly by the seed companies rather than the producers. He suggested that it would be beneficial if the larger role-players could assist in entering the producers into the competition. Mr Vercueil then referred to a few protocols of the competition, which were as follows:
- A producer enters a continuous block of a minimum of 2 hectares of a single variety.
- Appointment of independent harvest officials.
- The 2 harvest officials, of which 1 should be independent, will be present for the harvest, where the weight, moisture and area harvested will be confirmed. Weight needs to be done on a calibrated scale with a calibration certificate if a private scale will be used. Moisture and grading need to be done at a silo and the nett mass will be calculated.
After a detailed discussion, it was decided to share the Grow for Gold Competition Protocol with forum members to encourage producer participation the current season.
Resolution:
- That the Grow for Gold Competition Protocol be shared with forum members to encourage producer participation the current season.
Chairperson
SAGF
Nematode Studies, Dr Steenkamp
The Chairperson mentioned that Dr Steenkamp was researching to identify the areas where a new seed-borne nematode has been discovered. The research aimed to determine the nematode's preference for dryland versus irrigation.
Dr Steenkamp provided a brief update, stating that the research was focused on pod nematodes and the new seed-borne nematode. Dr Steenkamp was collaborating with a new taxonomist, Dr Chantel Jansen, and they plan to do a presentation of their findings at the next forum meeting scheduled for 17 July 2024.
Resolution:
- That Dr's Steenkamp and Jansen will do a presentation of their research on pod nematodes and a new seed-borne nematode at the next forum meeting scheduled for 17 July 2024.
Chairperson
SAGF
- That Dr's Steenkamp and Jansen will do a presentation of their research on pod nematodes and a new seed-borne nematode at the next forum meeting scheduled for 17 July 2024.
Tariffs and Levies
Import Tariffs
(Resolution 7.2.1.1 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson provided an update stating that on 12 December 2023, Ms Khanyisa Hoveni-Maphutha from DTIC informed her that Trade Remedy applicants could communicate with ITAC directly for updates. This led to the belief that the matter had been referred to ITAC from Minister Patel's office.
Furthermore, on 16 January 2024, Mr Khosi Mzinjana from ITAC informed the Chairperson that the applications were at an advanced stage and that they would communicate the outcome as soon as possible.
The Chairperson mentioned that on 19 February 2024, Ms Rika Theart from ITAC responded and informed her that the investigation was still with the policy authority and that ITAC had no new updates. As a result, it remained unclear who was currently responsible for the Import tariff applications. Another request was sent on 20 February 2024, to the DTIC contacts. In the meantime, Ms Theart from ITAC confirmed the full process once again on 20 February 2024. The Chairperson requested that the full response be minuted for clarification purposes.
"During its investigations, the Commission considers comprehensive criteria when adjudicating tariff amendment applications. These processes are transparent and consistently applied across all sectors based on information obtained through comprehensive questionnaires and on-site verifications. The adjudication process is rigorous and evidence-based and is carried out on a case-by-case basis considering the implications for the full value chain.
The criteria are bounded by industrial policy objectives to, amongst others, promote domestic manufacture, job retention and creation, increase investment, support localisation, and transformation and increase international competitiveness. In light of the pressing challenge of unemployment, it is critical that the criteria are applied in a manner that is sensitive to, amongst others, employment outcomes, price impact on especially the lower segment of the market, food security implications, binding reciprocal commitments made etc. In view of the fact that South Africa forms part of the Southern African Customs Union - SACU, all member countries, have a common external tariff. This means that if a duty is increased, it would also be applicable to imports into SA, Botswana, Eswatini, Lesotho and Namibia.
The following is a summary of the investigation process conducted by ITAC. Please note that there may be some activities within the investigation processes which may stretch the overall ITAC timeline, which is generally 6 months:
- Receipt of applications for tariff amendments by ITAC. Applications have to be properly documented in the form of a standard questionnaire.
- Preliminary investigation on prima facie evidence. [At this stage all known interested parties are invited to comment. Interested parties include: industry associations; domestic manu importers; exporters; labour; the DTIC sector desks, the Department of Agriculture, Land Reform and Rural Development etc.]
- If a prima facie case is established, the investigation will be initiated through a publication in the Government Gazette. [At this stage interested parties once more and the public at large are given an opportunity to be heard by making their submissions to the Commission. Submissions and comments may be received from industry associations; domestic manufacturers; importers; exporters; labour; the DTIC sector desks; consultants and legal representatives]
- Final determination by the Commission and recommendation to the Minister of Trade, Industry and Competition. [This stage may include oral hearings by interested parties]
- The Minister of Trade, Industry and Competition (Policy authority) considers the Commission's recommendation and will decide whether to accept, reject or refer back to ITAC's recommendation. [Timeframe outside ITAC's control]
- On approval of ITAC's recommendation and a tariff amendment is required the Minister will request the Minister of Finance to reflect and support the implementation thereof. [Timeframe outside ITAC's control
- Implementation will be done by the South African Revenue Service (SARS), through a publication in the Government Gazette [Time frame outside ITAC's control].
Mr Kenny reported that the CEO of RCL Foods communicated directly with the Minister's Special Advisor, Herald Harvey. They were waiting for feedback, which will be shared as soon as it was received. However, they were concerned about the potential impact that the delays by DTIC and ITAC could have on consumers.
Mr Kenny also stated that the minister's office was hesitant to grant the import tariff due to the increase in prices seen in the sugar and poultry industries. It was mentioned that no definite answer would be given until at least after May since elections were approaching.
The Chairperson confirmed that DTIC and ITAC would be continuously pressured on the matter. She requested that any relevant information related to the groundnut industry and the import tariff applications be communicated.
Feedback and information regarding the Import tariff applications would be communicated to all members of the forum.
Resolution:
- That any feedback and information related to the Import tariff applications would be communicated to all members of the forum.
Chairperson
Mr Keun
SAGF
Japan Import Tariffs
(Resolutions 7.2.2.1 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson provided some information about the Japan Import Tariffs. She explained that organising a meeting with the DTIC to discuss the Japan Import Tariffs issue has been more challenging than anticipated. So far, only one potential meeting date has been proposed, 21 February 2024 which was the same day as the Forum meeting. However, other possible dates were still awaited.
Resolution:
- That feedback regarding the Japan Import Tariff will be communicated to the forum members.
Chairperson
Mr Keun
SAGF
- That feedback regarding the Japan Import Tariff will be communicated to the forum members.
Industry Standards and Regulatory Matters
Crop Protection: Phase-out of certain active ingredients
(Resolution 7.3.2.1 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson reported that no further information or requests were received and that any updates would be communicated to the forum members.
Resolution:
- That feedback will be communicated to the forum members regarding the phase-out of certain active ingredients that might also be relevant or informative.
Dr Steenkamp
Chairperson
SAGF
- That feedback will be communicated to the forum members regarding the phase-out of certain active ingredients that might also be relevant or informative.
Import Quality, Regulatory Control and MRL Testing
(Resolutions 7.3.3.1, 7.3.3.2 and 7.4.3.2 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson provided an update on the request for feedback, a workshop, or engagement from the Senior Manager at the Department of National Health's Directorate of Food Control. On 24 October, Mr Thabethe from the department informed her that he was awaiting guidance on this matter. However, Mr Thabethe confirmed that on 19 October 2023, a follow-up meeting was held to discuss related matters.
The Chairperson also mentioned that she had requested an engagement on 30 January 2024, as well as on 12 and 18 February 2024, following the news of the Peanut Butter recalls. In the latest call, Ms Penny Campbell from the Department of Health, and Mr Billy Makhafola from DALRRD were invited to attend the forum meeting today.
Ms Campbell reported that recent reports suggest that a supplier based in the Western Cape was the source of contaminated peanut butter, but that authorities have not yet released a comprehensive report. The product was locally manufactured, although the origin of the input product remains unknown. Some reports suggest that imports from neighbouring countries may have been involved, but that official confirmation was awaited. The extent of the contamination was also unclear. Large producers have taken swift action by conducting additional testing and ensuring that their products meet local standards. The National Consumer Commission was also conducting tests and verifying other brands.
Ms Campbell mentioned that she was not aware of a joint workshop, and she suggested looking at the various assignees. Mr Thabethe provided her with feedback on a meeting with Mr Engelbrecht from PPECB and Port Health regarding the testing of aflatoxin levels and MRLs. Ms Campbell mentioned that Mr Thabethe requested funding for the testing, but unfortunately, the Department of Health does not budget for such activities. Even if they did budget, the austerity measures implemented by the Treasury in September would have stopped the funding. Typically, the Port Health or BMA, the responsible authority, and the various municipalities fund this type of monitoring, not the Department of Health.
Ms Campbell was uncertain if the Food Safety Forum, which was convened by DALRRD (DFSQA), was still active. However, it would have been the appropriate platform to discuss various aspects, such as import and export, and the responsibilities of the assignees. The assignees receive their orders from the Agricultural Product Standards Act.
Ms Campbell reported that the peanut butter industry informed both the NCC and the Department of Health about the recent peanut butter brand recalls. This was following the updated food hygiene regulations of 2018, which require anyone handling food to have a full traceability system in place. The regulations also mandate that the regulator and relevant municipality be informed of any recall, whether it's for consumers or internal purposes.
The parties involved have informed the authorities as required. The investigations so far have traced the issue to a supplier, producer, and manufacturer in the Western Cape, but the authorities were still trying to verify the traceability records. Ms Campbell was scheduled to meet with the city of Cape Town to clarify this aspect.
Mr Clark inquired about the origin of the imported groundnuts for future reference. Ms Campbell declined to provide that information because the fungus (aflatoxin) contamination could have resulted from multiple factors, including the transport and storage of the groundnuts.
The Department of Health was awaiting approval from the city of Cape Town before determining whether the matter required national intervention. Since the issue seems to be localised, the city of Cape Town was conducting a full investigation. Ms Campbell will provide feedback through the Chairperson to the forum members once she has met with the NCC and determined if any legal action was necessary.
The Chairperson expressed her gratitude to Ms Campbell for attending the meeting and for her valuable contribution. She assured Ms Campbell that any information shared above would be communicated to the industry to better understand possible concerns and their implications.
The Chairperson referred to Ms Campbell's comment about funding restrictions and how they can affect product safety. This was the reason for calling the meeting, to discuss any concerns and find ways to work together. The industry was willing to collaborate and offer assistance for any risk areas that may require additional attention. The Chairperson announced that a workshop would be organised soon to address these issues.
Ms Tselentis asked about the process for testing peanuts that were locally produced or imported before they were processed into peanut butter. Mr. Higgs explained that the factory of origin would provide the importer with a Certificate of Analysis (COA) for the peanuts. When the imported peanuts arrive, they would be tested again, and the supplier of the imported peanuts would provide its customers with a COA. Once the peanuts arrive at the customer's factory, they would undergo another round of testing. Before peanut butter manufacturing began, there were at least three tests conducted. After the manufac-turing was complete, another test will be conducted, along with a final test on the final product. In summary, for imported peanuts, there will be a minimum of five tests performed from arrival to the final product, before it was distributed.
When it comes to local peanut production, farmers gather samples during the groundnut harvesting season and send it for testing. The testing process was like that for imported peanuts, and at least five tests were performed before the final product was ready for distribution. If the presence of aflatoxin was detected, the peanuts will be sent to a blanching facility where necessary measures will be taken to reduce the levels of aflatoxin. Every shipment of imported and locally produced peanuts must be accompanied by a Certificate of Analysis (COA) and an Aflatoxin certificate, and it would also be inspected by other authorised laboratories.
Ms Tselentis expressed her concern about the storage of raw peanuts in the shell by Food Lovers Market and inquired about its safety for public consumption. She also requested the Department of Health to investigate the handling of raw in-shell peanuts by Food Lovers Market. Ms Campbell, offered to discuss the matter with Ms Tselentis from SANCU and take appropriate action.
Mr Clark reported that RCL Foods was still conducting their own COA and aflatoxin tests and would not accept other certificates. He also mentioned that all the tests conducted by RCL Foods were kept for 24 months.
Feedback and information regarding the call back of peanut butter would be communicated to all members of the forum.
Resolutions:
- That a meeting be organised to discuss the testing of aflatoxin levels and MRL's as well as restrictions and how they can affect product safety and find ways to work together.
Chairperson
SAGF - That the industry was willing to collaborate and offer assistance for any risk areas that may require additional attention.
Chairperson
SAGF - That collaboration between Ms P Campbell, Department of Health and Ms Tselentis from SANCU be established.
Chairperson
Ms Campbell
Ms Tselentis - That feedback and additional information regarding the call back of peanut butter would be communicated to all members of the forum.
Chairperson
SAGF
- That a meeting be organised to discuss the testing of aflatoxin levels and MRL's as well as restrictions and how they can affect product safety and find ways to work together.
Local Quality Verification — Leaf Services
(Resolution 7.3.2.1 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson informed the meeting that on 15 February 2024, Leaf Services, and representatives from DALRRD had a meeting in person as well as online. The meeting was focused on discussing Leaf Services' current Standard Operating Procedures (SOPs), plans for implementing local inspections, and the costs associated with it. During the meeting, groundnuts were mentioned as a regulated product, but there was no reference made to any inspection methodology or SOP's for the groundnut industry.
The Chairperson received a request from Oscar Wohlfahrt, a representative from Leaf Services, for assistance in evaluating a possible matrix for groundnuts. Leaf Services understands that the groundnut industry would require a different approach from other commodities based on previous submissions they had made. Once Leaf Services' proposed or draft methodology was received, it will be evaluated against what has already been established. The comments will then be circulated among role-players for comment and input before being returned to Leaf Services.
Feedback and information regarding Leaf Services would be communicated to all members of the forum.
Resolution:
- That feedback and information regarding Leaf Services would be communicated to all forum members.
Chairperson
SAGF
- That feedback and information regarding Leaf Services would be communicated to all forum members.
Industry
Crop and Area Estimates
The Forum took note of Annexure B and Ms Scheepers' presentation regarding the groundnut production forecast for the 2023 season.
SA Grain Information Services (SAGIS)
The committee noted the contents of Annexure C in the agenda.
Cognisance was taken of Mr Schultz's presentation on SAGIS, feedback, and market information.
Perishable Products Export Control Board (PPECB)
(Resolution 7.4.3.1 of the Groundnut Frum minutes of 19/07/2023)
Mr H Engelbrecht presented the PPECB aflatoxin results.
The Chairperson mentioned that it was necessary to include data and reports from other laboratories that test for aflatoxin. The idea was to discuss this matter with the Department of Health and then establish a process or structure that would allow the other laboratories to become more involved in reporting to the Forum. To facilitate this, the Chairperson proposed to create a report template that all reporting laboratories could use during the new groundnut season and for feedback at the forum meetings.
Resolution:
- That an aflatoxin test report template be created for use by all reporting laboratories during the new groundnut season and for feedback at the forum meetings.
Chairperson
SAGF
- That an aflatoxin test report template be created for use by all reporting laboratories during the new groundnut season and for feedback at the forum meetings.
Industry Project for price structure and producer profitability
(Resolution 7.4.5.1 of the Groundnut Forum minutes of 19/07/2023)
The Chairperson mentioned that a value chain meeting has been scheduled for after the forum meeting, facilitated by Dr Ferdi Meyer from BFAP.
The purpose of the meeting was to initiate a discussion on how historical and publicly available price information can be used to demonstrate the fairness of the prices paid to producers, which is sited as a main barrier to increased planting. The Chairperson will provide further updates and consultation details as soon as they become available to the forum members.
Resolution:
- That the updates and consultation details be made available to the forum members.
Chairperson
SAGF
- That the updates and consultation details be made available to the forum members.
Meeting dates 2024
The date for the upcoming meetings has been scheduled for 17 July 2024 and 24 October 2024.
Adjournment
The Chairperson adjourned the meeting at 12:00, expressing gratitude for the participants' contributions and hope for future in-person attendance.