SA Groundnut Forum (SAGF)
held on 28 July 2020 at 10:00 by means of a virtual platform (MS Teams)
Opening
The Chairperson, Ms A Botha opened the meeting with prayer.
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.
Attendance
Present
Ms A Botha Chairperson Dr E Briendenhann OAC Mr R Beukes DALRRD Mr F Cilliers GWK Mr T Clark RCL Foods Mr L De Kock Roba Foods Mr H Engelbrecht PPECB Mr N Hawkins SAGIS Mr G Heyns SACTA Mr RW Higgs Triotrade Mr TG Jansen C Steinweg Bridge Dr C Joubert NAMC Mr G Keun Chief Executive Officer Mr H Lazarus LB Nuts Ms C Laubscher RCL Foods Mr W Lemmer Agbiz Grain Ms W Louw SAGL Mr C Mathews Department of Agriculture Conservation and Environment Ms L Muller Triotrade Ms S Mangena PPECB Dr N Mnonopi PPECB Dr D Naicker CSIR G Phekani Milele Group Pty Ltd Mr T Richards VGM Ms M Scheepers DALRRD Mr B Schultz SAGIS Mr W Snijman ARC Grain Crops Institute Mr S Snyman GWK Ms S Steenkamp ARC-GCI Mr R Steyn GWK Ms L Swart SGS Mr L van der Walt Grain SA Mr K van Huysteen SANSOR Mr A van Rensburg Tiger Brands Mr A Visser Golden Peanut Mr CJ Wegner PPECB Ms M du Preez OPDT/OAC Apologies
Mr GC Nortje GWK Mr C Louw Grain SA Mr G Bruwer Grain SA Mr T Prinsloo ARC-GCI Dr M Mostert Precision Oil Personalia
The Chairperson on behalf of the Groundnut Forum expresses condolences to Mr Nortje with the passing of his mother early in July 2020.
Finalisation of agenda
The agenda was accepted, with the addition of:
- Item 8.3 – PPECB Aflatoxin Report
- Item 10.7 – Grain SA letter to producers during harvesting time
- Item 10.8 – Non-food safety groundnut processors
Approval of minutes
The minutes of the meeting held on 13 February 2020 were approved as a true reflection of the proceedings, and the Chairperson thanked the staff responsible for the accurate recording of the discussions.
Resolution:
- That the minutes of the meeting of the SA Groundnut Forum held on 13 February 2020, be approved.
Chairperson
Forum MembersMatters arising from the minutes
Strategic Industry Plan
The Chairperson gave a brief overview of the Strategic Industry plan and mentioned that the document is updated once a year and again be discussed during the October meeting.
Groundnut Symposium
The Chairperson mentioned that the matter in respect of the Groundnut Symposium be kept on the agenda.
Farmers' Day / Road trip
(Resolutions 7.1.2.1-7.1.2.6 of the SA Groundnut Forum minutes of 13/02/2020)
The Chairperson mentioned that the discussions during the previous meetings will form part of the broader strategy discussions and will be discussed in more detail during these discussions. The Chairperson gave feedback on the following items:
- Genetically Modified Organism (GMO)
The Chairperson mentioned that a survey with regards to GMO groundnuts will be conveyed with the larger companies as well as the well known import and export companies. - Problems with Nematodes
The Chairperson mentioned that an article in this regard is attached as Annexure G and detailed discussions will be part of the broader strategic discussions. - Interaction of the large companies in Farmers' days
The Chairperson mentioned that the farmers' days will be discussed as soon as there is clarity regarding COVID-19 pandemic.Mr Van der Walt mentioned that the possibility of a virtual farmers' day/webinar will be discussed during Grain SA's Groundnut meeting.
Resolutions:
- That a survey with regards to GMO groundnuts will be done with the larger companies as well as the well known import and export companies.
Chairperson
Mr Keun - That farmers' days be discussed as soon as there is clarity regarding the COVID-19 pandemic.
Chairperson
Mr Keun - That it be noted that the possibility of a virtual farmers' day/webinar will be discussed during the Grain SA Groundnut meeting.
Chairperson
Mr Keun
- Genetically Modified Organism (GMO)
LEAF services
(Resolution 7.2.1 of the SA Groundnut Forum minutes of 13/02/2020)
Notice was taken of the contents of the document "Leaf Presentation to Grain Industry, 14 May 2020" attached as Annexure B to the agenda.
Resolution:
- That progress related to LEAF Services, be communicated to the forum members.
Chairperson
Mr Keun
Members
- That progress related to LEAF Services, be communicated to the forum members.
Tariff codes
Import tariffs
(Resolution 7.3.1.1 of the SA Groundnut Forum minutes of 13/02/2020)
The Chairperson gave an overview of the status of the tariff applications (Roasted Groundnuts and Peanut Butter) that were submitted to ITAC during the last week of June 2020. Members were again reminded that they may be contacted by ITAC during the course of the investigation and that their support and co-operation will be appreciated. Any queries may be referred to the Chairperson.
Feedback will be communicated to the forum members regarding the progress with the import tariff application to ITAC as soon as it becomes available.
The Chairperson thanks the industry members and the OAC who's financial contribution made these applications possible.
Resolution:
- That progress with regards to the import tariff application to ITAC will be communicated to the forum members as soon as it becomes available.
Chairperson
Mr Keun
- That progress with regards to the import tariff application to ITAC will be communicated to the forum members as soon as it becomes available.
GAP Audits
(Resolution 7.4.1 of the SA Groundnut Forum minutes of 13/02/2020)
The Chairperson mentioned that no feedback was received on the proposed GAP guidelines that were sent some time ago for comments to members.
The Chairperson suggested that the matter should remain on the agenda but be held in abeyance until the need arises for further action or consultation. Should any feedback regarding the proposed GAP guidelines be received in the meantime, appropriate action will be considered and communicated to the forum members.
Resolution:
- The matter be held in abeyance until further action or consultation required through industry mandate.
Chairperson
Mr Keun
- The matter be held in abeyance until further action or consultation required through industry mandate.
Japanese delegation visit
(Resolution 7.5.1 of the SA Groundnut Forum minutes of 13/02/2020)
The Chairperson mentioned that from previous discussions the groundnut industry is currently in an unfortunate position where it is difficult to do generic marketing focused on the international market, mainly due to the instability of the crop and therefore inconsistent supply to international buyers.
The Chairperson suggested that the matter should remain on the agenda and be revisited once the industry has addressed some of the issues discussed in the larger industry strategy and are once again in a position to make trustworthy presentations to the international arena.
Resolution:
- That the matter should remain on the agenda and that feedback will be communicated to the forum members once certain strategies have been further developed and executed.
Chairperson
Mr Keun
Members
- That the matter should remain on the agenda and that feedback will be communicated to the forum members once certain strategies have been further developed and executed.
Aflatoxin
Import: Quality and Aflatoxin Control
(Resolution 7.6.1.1 and 7.6.1.2 of the SA Groundnut Forum minutes of 28/10//2019)
The Chairperson mentioned that no feedback had been received from the Department of Health and requested that the item remains on the agenda.
The Chairperson suggested that if LEAF services will play a quality and standard verification or oversight role in the groundnut industry in future, they might be able to support industry with the Import Quality and Aflatoxin Control issue.
Resolutions:
- That the Department of Health be requested to comment on possible procedures in respect of border post imports.
Chairperson
Mr Keun - That as soon as feedback had been received from the Department of Health, the way to handle the matter will be considered.
Chairperson
Mr Keun - That if LEAF services will play a role in the groundnut industry in future, they might be able to help with the Import Quality and Aflatoxin Control.
Chairperson
Mr Keun
- That the Department of Health be requested to comment on possible procedures in respect of border post imports.
Aflatoxin Testing Project
(Resolution 7.6.2.1 of the SA Groundnut Forum minutes of 13/02/2020)
- Aflatoxin
The Chairperson mentioned that the report for the Aflatoxin proficiency testing project has been received on 27 July 2020 and will be distributed to the forum members for comments. Findings from the NMISA report confirmed that the three laboratories that were nominated by the SAGF and partially funded by the OAC (PPECB, L&M Laboratory Services/Bureau Veritas and Meriux Nutriscience) all returned results within the acceptable norms and standards set for proficiency.
- Free Fatty Acid (FFA) and Peroxide Value (PF)
After a lengthy discussion of the variation with the test results between the different laboratories, the Chairperson suggested that the information supplied by industry roleplayers be considered, along with a possible proficiency project. She undertook to investigate the matter further and report back to members. Furthermore, she mentioned that the results will be handled directly with the forum members due to the urgency of the matter.
During discussions and per Resolution 9.6.1 of 13/02/2020 it is clear that two related but separate issues were being addressed. The matter of High Oleic product standards are therefore addressed under point 9.5 and Resolution 9.5.1 of 28/07/2020 below, but the issue surrounding FFA and PF testing and proficiency is addressed under point 7.6.2.
Resolutions:
- That the report for the Aflatoxin proficiency testing project that was received on 27 July 2020 be distributed to the forum members for comments.
Chairperson
Mr Keun - That the variation with FFA and PV test results between the different laboratories be investigated and reported on to members.
Chairperson
Mr Keun
- Aflatoxin
Operational Co-ordinating Position
Since this topic might be influenced by upcoming industry discussions, the Chairperson requested that the matter be held in abeyance for discussion at the next forum meeting.
Resolution:
- That the matter be held in abeyance for discussion at the next forum meeting.
Chairperson
Mr Keun
- That the matter be held in abeyance for discussion at the next forum meeting.
Groundnut Grading Course
Notice was taken of the document "Groundnut Grading Course" attached as Annexure D to the agenda.
Industry information and marketing aspects
Crop and area estimates
Notice was taken of the document "Crop and Area Estimates" attached as Annexure E to the agenda, indicating a 16.5% or 10 330mt downward adjustment for the 5th forecast compared to the previous estimate. Mention was made of the negative impact of Pod Nematodes; Botritus & Sclerotina – resulting in yield losses and crop estimate adjustments. Later planting due to late rain and early, severe frost also contributed to original estimates not realising in all regions, however certain regions reported good yields.
SAGIS: General feedback and market information
Notice was taken of the SAGIS Monthly return information attached as Annexure F and as well as the presentation by Mr Hawkins.
PPECB Aflatoxin Report
Notice was taken of the presentation of Mr H Engelbrecht from PPECB in respect of Aflatoxin test results.
Research
Feedback on Cultivar Evaluation Project
The Chairperson mentioned that the results of the cultivar evaluation trials were sent to the ARC to enter into their programme. The Chairperson expresses her gratitude on behalf of the groundnut industry to those involved in the cultivar evaluation project. The cultivar evaluation report will be distributed after the meeting in September 2020.
Mr Snijman reports that the trial at Potchefstroom was washed away and that the results may not be included in the report.
Furthermore, Mr Snijman mentions that two new cultivar lines are in the process to be registered and that breeder seed might be available for the first round of commercial seed multiplication in the next planting season.
Collaboration and Support: ARC-Groundnut Section/Division
(Resolution 9.3.1 the SA Groundnut Forum minutes of 13/02/2020 and Resolution 7.1.2.2.1 of the Oilseeds Advisory Committee minutes of 12/7/2020)
The Chairperson mentioned that a draft "Terms of Reference" document has been circulated to the Work Group for comments and approval.
Feedback regarding the Collaboration and Support: ARC-Groundnut Section/ Division will be communicated to the forum members after the mid September meeting (to coincide with the Culitvar Evaluation meeting hosted by the ARC).
Resolution:
- That feedback will be communicated to the forum members at the next meeting regarding the Collaboration and Support: ARC-Groundnut Section/ Division.
Chairperson
Mr Keun
- That feedback will be communicated to the forum members at the next meeting regarding the Collaboration and Support: ARC-Groundnut Section/ Division.
Breeding and Technology Levy
(Resolution 9.3.1 the SA Groundnut Forum minutes of 28/10/2019)
Mr Van der Walt mentioned that during the Grain SA Congress at the Groundnut Session it was decided by the Grain SA members to support a statutory levy of R46/mt groundnuts sold. The principle of the statutory levy will be handled the same as in the case of Wheat, Oats, and Soybean.
Mr Heyns (South African Cultivar and Technology Agency – SACTA) gave a brief overview of the administrative role of SACTA, discussing how the proceeds of the levy will be distributed to cultivar owners based on market share. The formula to determine market share and how information will be declared will be agreed with the support and input from industry – for example seed sales and farmer declaration (1st point of sale) as well as formal agreements between SACTA and cultivar owners.
After further discussion it was decided that the necessary action will be taken to facilitate the application to NAMC – if possible to institute the levy before the next planting season. Mr Heyns however exlainded that the process of consultion, publication for comment and final approval by the Minister may take a few months before matter is Gazetted.
Resolution:
- That the necessary action and consultation will be taken for the Forum to officially apply for the levy.
Chairperson
Mr Keun
- That the necessary action and consultation will be taken for the Forum to officially apply for the levy.
Studies on the use of biocontrol agents on Groundnuts to control Aspergillus spp and other soil pathogens, Prof M Laing, University of KwaZulu-Natal
(Resolution 9.5.1 of the SA Groundnut Forum minutes of 13/02/2020 and Resolution 8.1.2.1.1 of the Research Priority Committee minutes of 30/06/2020)
Mr Keun mentioned that Prof Laing would be requested to write an article for the Oilseeds Focus as well as to do a presentation at the next Groundnut Forum meeting.
Resolution:
- That Prof Laing be requested to write an article for publication in the Oilseeds Focus as well as to do a presentation at the next Groundnut Forum meeting in respect of the research conducted.
Chairperson
Mr Keun
OAC
- That Prof Laing be requested to write an article for publication in the Oilseeds Focus as well as to do a presentation at the next Groundnut Forum meeting in respect of the research conducted.
Quality Standards for high versus low oleic groundnuts
(Resolution 9.6.2 of the SA Groundnut Forum minutes of 13/02/2020)
Some consultation took place, but no report was made by the special workgroup established during the meeting of 13 February 2020. (Chairperson's Note: During discussions and per point 9.6 in the Minutes of 13/02/2020 it is clear that two related but separate issues were being addressed. The matter of High Oleic product standards are therefore addressed under point 9.5 and Resolution 9.5.1 of 28/07/2020 below, but the issue surrounding FFA and PF testing and proficiency is addressed under point 7.6.2.2 of this document).
After further discussion regarding the matter, it was resolved that the quality standard for high versus low oleic groundnuts be discussed with European companies to determine international standards – specifically if buyers have different purchase standards for high versus low oleic groundnuts. The Chairperson offered to look into the matter and that feedback will be communicated to the forum members.
Resolution:
- That the quality standard for high versus low oleic groundnuts be discussed with European companies to determine South Africa's level compared to international standards and that feedback will be communicated to the forum members.
Chairperson
Mr Keun
- That the quality standard for high versus low oleic groundnuts be discussed with European companies to determine South Africa's level compared to international standards and that feedback will be communicated to the forum members.
Peanut Smut
Mr Higgs gave a brief overview of the definition of Peanut Smut and the major riks it holds to yields and quality of groundnut Crops. It is prevalent in Argentina with production areas continuously moving further away from processing facilities due to contaminated soil.
Certain countries have already banned imports of raw groundnuts from this region to mitigate the risk of soil contamination in their production areas. The Argentinians reportedly already developed a Smut resistant cultivar, but our local industry is fully exposed if this risk is not taken seriously. The Chairperson continued to advise that all possible precautions be put in place to prevent the spreading of Peanut Smut to South African soil. Cross border or harbour imports of seed (including farmer stock or commercial stock that could end up as seed) must be carefully and responsibly managed by every importer of raw groundnuts.
The Chairperson undertook to discuss the matter with the relevant DALRRD divisions to consider amendments to phytosanitary requirements on imports of seed.
Mr Keun referred to available information in respect of peanut smut that will be distributed to the forum members. The information was obtained from Argentina due to the Oilseeds Industry collaboration with them.
Resolutions:
- That information with regards to peanut smut be circulated to the forum members.
Chairperson
Mr Keun - That the DALRRD will be consulted regarding possible Phytosanitary requirements on imported seed.
Chairperson
- That information with regards to peanut smut be circulated to the forum members.
Additional matters
Articles
The contents of the articles included in the agenda as Annexure G were noted. Special notice was taken of the article on Nematodes.
Sclerotinia in Groundnuts
The contents of the document included in the agenda as Annexure H were noted.
Mr Van der Walt mentioned that there were very few reports of Sclerotinia from Grain SA, but will keep the forum informed of any future reports. Reports from industry members indicate large losses in isolated areas to the eastern regions of the production areas.
The possibility of including groundnuts in future sclerotinia research or evaluation of existing research is mentioned.
Resolution:
- That groundnuts be included in future sclerotinia research or evaluation of existing research.
Chairperson
Mr Keun
- That groundnuts be included in future sclerotinia research or evaluation of existing research.
SA Groundnut Quality Brand
The Chairperson mentioned that Mr Visser previously suggested that the groundnut industry may want to consider a Quality Brand as part of a generic marketing strategy – similar to that of the cotton industry – to make local and international buyers more attentive to locally produced groundnuts and quality.
After a short discussion, it was resolved that the item should remain on the agenda in light of future discussions, actions, and results from the wider industry strategies as discussed earlier.
Resolution:
- That the item remains on the agenda for further discussion in light of wider industry strategy execution.
Chairperson
Mr Keun
- That the item remains on the agenda for further discussion in light of wider industry strategy execution.
Grain SA Congress
The contents of the documents included in the agenda as Annexure I were noted.
USAID's Southern Africa Trade and Investment Hub
The contents of the document included in the agenda as Annexure J were noted.
SGS
The contents of the document included in the agenda as Annexure K were noted.
The Chairperson reported that approval confirmed in the document dated 9 July 2020 was temporarily retracted by the DALRRD to allow for the final audit once Covid 19 regulations allow. SGS undertook to keep the industry informed and supply final departmental approval as an accredited competent laboratory in terms of aflatoxin in groundnuts.
Video from Grain SA to producers during harvesting time
After a discussion over industry concerns relating to a Grain SA's video sent to producers during harvesting time – addressing import party derived pricing – the Chairperson suggested that members agree to leave the matter in her hands for the time being since she is currently busy with individual discussions and consultation also relating to the matter of distrust in the industry regarding pricing structures. In his reaction, Mr van der Walt also expresses Grain SA's intent to address the longstanding issue of a transparent price model but reiterated that all information will be shared with due consideration of the industry's concerns and input. The Chairperson confirmed that she is planning a Workshop later this year where the relevant industry role players will be invited to discuss the import and export parity price information.
Resolution:
- That a Workshop be held where the relevant industry role player be invited to discuss the import and export parity price information and that feedback will be communicated to the forum members.
Chairperson
Mr Keun
- That a Workshop be held where the relevant industry role player be invited to discuss the import and export parity price information and that feedback will be communicated to the forum members.
Non-food safety of groundnut processors
Mr Higgs tabled a motion regarding the non-food safety compliance of some groundnut processors. He highlighted the fact that food safety certifications are (or should be) required by large and small processors in addition to the fact that it is a statutory requirement. Selection plants and processors following the rule of law are negatively affected by competing against non-compliant entities not sufficiently managed by the relevant authorities. After a discussion of the matter, the Chairperson suggested that standards applicable to the groundnut industry and non-compliance be addressed at the Workshop referred to in item 10.7. Feedback in this regard will be communicated to the forum members.
Resolution:
- That those standards applicable to the groundnut industry be referred to the Workshop in item 10.7, and that feedback will be communicated to the forum members.
Chairperson
Mr Keun
- That those standards applicable to the groundnut industry be referred to the Workshop in item 10.7, and that feedback will be communicated to the forum members.
Meeting dates 2020
The next meeting of the SA Groundnut forum is scheduled for 28 October 2020.
Adjournment
There being no further business to discuss, the meeting was adjourned at 13:00.