SA Groundnut Forum (SAGF)
held on 31 July 2012 at 10:00 at the offices of the Oilseeds Industry, Woodmead

1. Opening

   The meeting was opened with prayer, offered by Mr Gerhard Keun.

2. Welcome

   The Chairperson, Mr GTduT Keun, welcomed all present to the meeting, with a special word of welcome to those who were attending a meeting of the Groundnut Forum for the first time.

3. Attendance

   Present
   Mr GTduT Keun	Chairperson
   Mr J Blaauw	PPECB
   Mr GL de Kock	Roba
   Mr G Fourie	SAGM
   Mr GT Geldenhuys	GrainSA
   Mr N Hawkins	SAGIS
   Mr S Heilbron	PPECB
   Ms C Makobe	DAFF
   Ms C Mapatlare	DAFF
   Ms DB Marabe	DAFF
   Ms S Matai	PPECB
   Mr C Mathews	Mpumalanga Dept Agriculture
   Mr ST Msibi	DAFF
   Mr M Mosome	DAFF
   Dr D Naicker	PPECB
   Mr GL Nortjé	GWK
   Ms L Salomon	ARC-GCI
   Ms M Scheepers	DAFF
   Mr GJH Scholtemeijer	OAC
   Dr CJ Swanevelder	Consultant
   Dr G Thompson	ARC-GCI
   Dr WJ van der Walt	SANCU
   Mr P van Wyk	VGM
   Dr M Visser	GrainSA
   Mr PA Visser	P Farm
   Ms C Walters	Blancom
   Mr N Wegner	PPECB
   Apologies
   Mr De Wet Boshoff	AFMA
   Mr AM Cronjé	Tiger Brands
   Mr F de Wit	Pepsico
   Mr GA de Witt	Praxia Trading
   Mr JCG du Preez	Consultant
   Mr A Evans	RE Groundnuts
   Mr W Higgs	Triotrade
   Mr D Kok	AFMA
   Mr R Lloyd	Blancom
   Dr A Lubbe	Grain Silo Industry
   Mr B Makhafolo	DAFF
   Mr D Martin	PPECB
   Dr F Meyer	BFAP
   Ms AE Pretorius	ARC-GCI
   Dr A van der Vyver	University of Pretoria
   Ms A van Deventer	Praxia Trading

4. Personalia

   None reported.

5. Finalisation of agenda

   The agenda was accepted as it stood, with the addition of:

   • Item 10.8 – PPECB: Strategic planning; and
   • Item 10.9 – Structure of representation on the Groundnut Forum, OAC and OPDT.

6. Approval of minutes

   1. Approval of the minutes of the meeting of the SA Groundnut Forum held on 2 November 2011

      Resolved:

      1. That the minutes of the meeting of the SA Groundnut Forum, that was held on 2 November 2011.

7. Matters arising

   1. Chemical residues in the EU

      (Resolutions 7.1.1 and 7.1.2 of the SA Groundnut Forum minutes of 2 November 2011)

      Cognisance was taken of the document titled "Maximum residue levels for crop protection products on peanuts – South Africa, Europe and Japan – August 2011", as well as the list of chemicals that had been registered for use on groundnuts in South Africa, which had been compiled by a consultant, at the request of the Groundnut Forum.

      Mr Keun remarked that the Forum's list would now be submitted to the Department of Health (DOH), with the request that the Forum's list and the DOH's list be combined in a master list. He said the DOH would also be requested to publish the master list as the official list of chemicals registered for use on groundnuts in South Africa.

      Resolved:

      1. That cognisance be taken that the list of chemicals that had been registered for use on groundnuts in South Africa, which had been compiled by a consultant, at the request of the Groundnut Forum, would be submitted to the Department of Health, with the request that the Groundnut Forum's list be combined in a master list with the DOH's list, and published as the official list of chemicals registered for use on groundnuts in South Africa.

         Chairperson

   2. Feedback: EU visit

      (Resolution 7.3.1 of the SA Groundnut Forum minutes of 2 November 2011)

      Mr Mosome reported that the matter with regard to the investigation of all Rapid Alert Systems for Food and Feed (RASFF) notifications was being dealt with in line with the protocols, that had been adopted.

      The matter was considered to be concluded.

   3. Seed quality

      (Resolution 7.4.1.1 of the SA Groundnut Forum minutes of 2 November 2011)

      The Chairperson said it had been resolved during the previous meeting that a copy of the regulations on commercial seed quality would be included with the documentation of a following meeting, and that the necessary amendments would be discussed, in order to ensure that seed of good quality was made available to the producers. He added that it had been noted during the previous meeting that only the physiological, and not the physical, qualities of seed were covered by the regulations.

      Ms Solomon reported that germination problems had been experienced with groundnut seed during the previous season, but added that the seed quality had been satisfactory, during the past season. She said following on discussions between the ARC-GCI and others, it had been agreed that seed samples had to comply with the standards of the Plant Improvement Act 1976 (Act No 53 of 1976). She noted that it would therefore not be necessary to amend the regulations.

      Mr Visser disagreed with this view. He said as far as he was concerned, the regulations on commercial seed quality had to be amended. The Chairperson ruled that the previous resolution with regard to seed quality (Resolution 7.4.1.1 of the meeting of the Groundnut Forum held on 2 November 2011) be held in abeyance.

      Resolved:

      1. That a copy of the regulations on commercial seed quality be included with the documentation of a following meeting, and that the necessary amendments would be discussed, in order to ensure that seed of good quality was made available to the producers.

         Chairperson
         Members

   4. Imports of peanut butter

      (Resolution 7.5.1 of the SA Groundnut Forum minutes of 2 November 2011)

      The Chairperson said it had previously been reported that large volumes of peanut butter had been imported from India. He mentioned that SAGIS had been requested to provide clarity on the way it dealt with imported peanuts, as the DOH had indicated that they could not find confirmation that peanut butter had, in fact, been imported from India.

      Mr Hawkins reported that SAGIS did not compile statistics on the imports of secondary products, such as peanut butter. He however added that information on the sources and quantities of imports, as provided by SARS, was published on the SAGIS website.

      The matter was considered to be concluded.

   5. HACCP Regulations

      (Resolution 7.6.1 of the SA Groundnut Forum minutes of 2 November 2011)

      The Chairperson reported that the Steering Committee had discussed the matter of HACCP compliance and certification with representatives of the Department of Agriculture, Forestry and Fisheries (DAFF) and the Perishable Products Exports Control Board (PPECB). He called on Mr Blaauw to elucidate on the matter.

      Mr Blaauw said although Regulation R908 stated that all groundnut processing plants had to comply with HACCP regulations in the 2011-2012 production season, only 5 out of 14 plants were currently HACCP compliant, while the others were still in the process of compliance. He mentioned that the PPECB had to verify whether all the groundnut processing plants were HACCP compliant, by the beginning of the 2012-2013 production season.

      Following on a short discussion of those factors impacting on obtaining HACCP compliance, it was resolved that the DOH would be approached with the view to creating awareness amongst the relevant roleplayers on the necessity of groundnut processing plants obtaining HACCP compliance.

      The Chairperson raised the matter of audits on compliance to Regulation R707. Mr Blaauw said R707, that dealt with the hygiene requirements for producers at primary production level, would be implemented in the forthcoming season. He noted that PPECB would have to present an audit plan to DAFF. He said the plants would have to identify all the relevant producers, as the producers had to be made aware of the compliance criteria by October 2012. He mentioned that audits would probably commence around March 2013, so that the full cycle could be covered. He said a risk analysis would have to be done on the audit findings, to determine whether the various primary production units could be considered to offer a high, medium or low risk. He mentioned that the risk analysis would indicate how often the audits had to be done, and what the way forward would be.

      Mr Geldenhuys said to his mind there would be a measure of resistance from some of the producers and the processors. He however emphasised that the regulations would have to be adhered to, and had to be implemented as soon as possible. He said the relevant information could be published in SAGrain.

      Dr Visser said a workshop dealing with the relevant issues would be presented at the meeting of the Groundnut Specialist Work Group, that is to be held on 4 September 2012. She confirmed that an article would be published on the matter, and a link provided to the relevant documentation on the Department's website.

      The Chairperson mentioned that feedback would be provided at the next meeting on the outcomes of the Groundnut Specialist Work Group's discussions with regard to the implementation of Regulation 707.

      Resolved:

      1. That the DOH would be approached with the view to creating awareness amongst the relevant roleplayers on the necessity of groundnut processing plants obtaining HACCP compliance.

         Chairperson

      2. That cognisance be taken that feedback would be provided at the next meeting of the Groundnut Forum on the outcomes of the Groundnut Specialist Work Group's discussions with regard to the implementation of Regulation 707.

         Chairperson

   6. Groundnut analysis: Sampling to PPECB slurry points

      (Resolution 11.6.1 of the SA Groundnut Forum minutes of 2 November 2011)

      The Chairperson reported that agreement had been reached between the PPECB and the various roleplayers in the industry on the issue of the couriering of slurried samples to the laboratory for further analyses. Dr Naicker confirmed that the system was working optimally.

      The matter was considered to be concluded.

8. Industry information and marketing aspects

   1. SAGIS: General feedback and market information

      The members took cognisance of the market information SAGIS had compiled for the Groundnut Forum, of the weekly bulletin dated 10 July and of the monthly bulletin, dated 22 June.

      Mr Hawkins reported that SAGIS was currently reviewing the format in which information was published. He said the intention was to deliver the information in a more user friendly way. He conveyed SAGIS's gratitude to the co-workers in the industry for submitting their returns timeously and to the members of the Forum for their support and cooperation.

      Mr Hawkins said a query had been raised on the way SAGIS handled information on blanched groundnuts. The Chairperson ruled that the matter be listed for discussion on the agenda of the next meeting.

      Resolved:

      1. That cognisance be taken that the matter with regard to the way SAGIS handled information on blanched groundnuts would be listed for discussion on the agenda of the next meeting.

         Chairperson

   2. Crop and Area estimates

      Cognisance was taken of the document reflecting the sixth production forecast for summer crops for the 2012 production season.

      The Chairperson called on Ms Scheepers to elucidate on the information. Ms Scheepers said according to the latest estimate, 45 450 hectares had been planted to groundnuts, while the expected production figure stood at 60 290 tons. She added that the Free State was expected to produce the largest groundnut crop of 22 000 tons, followed by North West with 17 600 tons, and the Northern Cape with 16 900 tons.

      Ms Scheepers mentioned that the current crop was 24,4% less than the previous 5 year average crop of 79 710 tons, and 27,5% less than the previous 10 year average crop of 83 174 tons. She added that the average yield was 1,33 tons per hectare, which was 12,5% lower than the 5 year average yield of 1,52 tons per hectare, and 10,1% less than the 10 year average yield of 1,48 tons per hectare.

      Mr Visser expressed his concern about the decline in average yields per hectare. Ms Scheepers mentioned that the average yield had improved over the last five year period. She said production figures had increased in the water table areas of the Free State, such as Hoopstad and Bothaville. Mr Fourie held the opinion that the production statistics for the Free State were inaccurate.

      Production conditions during the past season, as well as producers' intentions to plant during the coming season, were discussed at some length.

9. Research

   1. Study: Sustainability of the groundnut industry

      (Resolutions 9.1.1 and 7.4.3.1 of the SA Groundnut Forum minutes of 2 November 2011)

      Cognisance was taken of the minutes of the Indaba, that had been called by the Groundnut Forum, to discuss the report of the Bureau for Food and Agriculture Policy's (BFAP) evaluation of the sustainability of the South African groundnut industry. Cognisance was also taken of the letter from the Chairperson of the Oilseeds Advisory Committee (OAC) dated 9 May 2012, on the subject "Mededingendheid van die Suid-Afrikaanse grondbonebedryf".

      The Chairperson called on Mr Scholtemeijer, Chairperson of the OAC, to provide some background on the issue.

      Mr Scholtemeijer said the members of the OAC had made a number of recommendations after considering the BFAP report. He mentioned that the first recommendation was that a generic groundnut marketing programme should be launched. He explained that the term "generic marketing" referred to activities undertaken by a group or industry to promote benefits that relate to a specific commodity, rather than to specific brands. He mentioned that the OAC had also recommended that the implementation of a groundnut grading system should be investigated, that the current groundnut production manual and production calendar should be revised, that pamphlets and other informational material on groundnut production should be published and disseminated, and that the possibility of implementing a so-called "groundnut passport" should be investigated. He explained that such a passport entailed that a schedule had to be completed by the producer in co-operation with his chemical agent, as it had been noted that the current system of auditing was not conducive to good relations between producers and processors. He suggested that a speaker be invited to deliver a presentation on commodity passports to a meeting of the Groundnut Forum.

      Mr Scholtemeijer stated categorically that the OAC had never turned down a research project application with merit. He reported that the matter with regard to both the cultivar evaluation trials and the groundnut breeding programme had been discussed extensively with the ARC-GCI and the trustees of the OPDT. He said the matter with regard to the evaluation of international groundnut cultivars locally was also progressing well. He added that any number of groundnut research project applications would be considered by the OAC.

      Mr Scholtemeijer explained how Argentina managed to turn around its groundnut industry, and expressed the hope that the same could be done for the local groundnut industry.

      The Chairperson requested inputs on the matter of research required in the groundnut industry. Dr Naicker asked whether any research had been done on the health benefits of groundnuts. The Chairperson said the University of North West had done some work on this issue, and had published a pamphlet, in which the health benefits of groundnuts were detailed. Dr Naicker noted that the health benefits of groundnuts had to be promoted, in order to stimulate demand. Mr Visser suggested that the pamphlet be included with the documentation of the next meeting.

      Mr Geldenhuys requested more information on the international cultivars that were to be evaluated locally. Mr Scholtemeijer said genetically improved varieties, that were suitable for local production, will be evaluated in so-called elite trials. He noted that results were not guaranteed, but added that one could not keep the local groundnut industry alive, if the producers were not provided with the best materials possible. Mr Visser remarked that it was absolutely essential that high oleic groundnuts with a high yield potential be evaluated for local production, as there was a big international demand for those.

      Mr Scholtemeijer said the results of the elite trials will be provided to the owners of the cultivars, who would then decide on the commercialisation of those cultivars locally. He confirmed that the cultivars will be evaluated at a number of locations, in the various groundnut production areas, before being entered into the national cultivar trials.

      Cognisance was taken that the members would be requested to submit their inputs on the generic marketing initiative in writing. Mr Visser suggested that the generic marketing program should also target international buyers. Mr Geldenhuys said a marketing drive would only be viable if there were products to market. He added that a supply shortage was dictating the situation at present. He suggested that the possibility be investigated of tasking a body of some sort to develop a production encouragement scheme. Mr Scholtemeijer said producers had to be convinced of the economic advantages of groundnut production.

      Mr Geldenhuys confirmed that GrainSA would handle the matter of groundnut grading regulations. Dr Visser said any number of issues needed to be addressed, before a groundnut passport could be developed. Mr Hawkins noted that the Forum had developed a document a number of years ago, that could serve as a basis for the groundnut passport. The Chairperson said the matter would be discussed with GrainSA. Mr Nortjé mentioned that the exporting companies also had such a document in place. The Chairperson confirmed that he would follow up on this as well.

      Dr Thompson agreed that the ARC would accept responsibility for providing updated groundnut production information. The Chairperson said the OAC would ensure that the information was disseminated widely.

      Resolved:

      1. That the possibility of inviting a speaker to deliver a presentation on commodity passports to a meeting of the Groundnut Forum will be investigated.

         Chairperson

      2. That the pamphlet in which the health benefits of groundnuts were detailed, that had been compiled by the University of North West, would be included with the documentation of the next meeting.

         Chairperson

      3. That the members would be requested to submit their inputs on the generic marketing initiative in writing.

         Chairperson

      4. That GrainSA would handle the matter of groundnut grading regulations.

         Mr Geldenhuys

      5. That the ARC would accept responsibility for providing updated groundnut production information, and that the OAC would ensure that the information be disseminated widely.

         Dr Thompson
         Chairperson

      6. That cognisance be taken that the Forum had developed a document a number of years ago, that could serve as a basis for the groundnut passport, and that the exporting companies also had such a document in place.

         Chairperson

10. Additional items

    1. Articles

       Cognisance was taken of the articles "Hoekom gipstoediening so belangrik by grondbone is", "Daar's geld in grondbone!", "Flink werktuie maak grondbone lonend", "Oes só jou grondbone vir maksimum kwaliteit", "Kleiner internasionale sojaboon- en grondboonoeste", "Plantparasitiese aalwurms op grondbone van nader beskou", "You can't get chocolate cake from cheese cake ingredients!", "New horizons for the South African groundnut industry" and "Dié faktore bepaal grondbone se grootte".

    2. Aflatoxin

       Cognisance was taken of the various documents on aflatoxin contamination in groundnuts.

    3. ICRISAT

       Cognisance was taken of the results of the internet search done on the latest cultivar developments at the International Crops Research Institute for the Semi-arid Tropics (ICRISAT).

    4. Groundnut samples: Department of Health

       With reference to the DOH's report on food safety, that had been presented at the SANCU meeting held on 28 March 2012, Dr van der Walt said in his opinion, 22 groundnut samples could not be considered as a representative number of samples. The Chairperson said he would follow up on the matter.

       Resolved:

       1. That feedback be awaited on the matter of the number of samples that could be considered to be representative, following on the DOH's report on food safety, that had been presented at the SANCU meeting held on 28 March 2012, in which it was stated that 22 groundnut samples had been analysed.

          Chairperson

    5. Argentina: Peanut industry

       Cognisance was taken of the article on the Argentinian peanut industry.

    6. India: Groundnut industry

       Cognisance was taken of the article "Kano to supply hybrid groundnut seeds to farmers".

    7. Groundnut brochure: DAFF

       Cognisance was taken that DAFF's groundnut brochure would be updated.

    8. PPECB: Strategic planning

       The Chairperson reported that he and Ms van Deventer, the Vice Chairperson of the Forum, would attend a strategic planning session of the PPECB on 24 August.

    9. Structure of representation on the Groundnut Forum, Oil and Proteinseeds Development Trust (OPDT) and the Oilseeds Advisory Committee (OAC)

       Mr Geldenhuys requested that an organogram of the OPDT, OAC and Groundnut Forum be presented to the members of the Groundnut Forum, as he had noted that any number of people were unaware of the way these bodies were structured and organised. He mentioned, for example, that he had no idea which entity was responsible for the remuneration of the CEO of the oilseeds industry, Mr Keun.

       Mr Scholtemeijer said he had already fully briefed Mr Jannie de Villiers and Dr Visser of GrainSA on the structures and organisation of the oilseeds industry. Mr Geldenhuys replied that the members of the Groundnut Forum were uninformed on the matter.

       Mr Scholtemeijer explained that the oilseeds industry had three forums, and that any person could be a member of the Groundnut, Soybean or Sunflower Forums, respectively. He said the forums were discussion forums, that had no executive powers.

       Mr Scholtemeijer further explained that the OAC consisted of nine members, each serving as a representative of an interested party within the oilseeds industry, those being traders, processors, commercial and emerging producers, the Groundnut, Sunflower and Soybean Forums, consumers and organised labour. He said members of the OAC, the Research Priority Committee and the OPDT were appointed by the OAC.

       Mr Scholtemeijer said the OAC was tasked with the responsibility to evaluate research projects, award bursaries, sponsorships and so forth, and also managed the funds involved with those functions. He mentioned that these responsibilities were clearly indicated as such in the relevant Trust Deed and associated documents. He added that the three members of the Research Priority Committee also served as the Executive Committee of the OAC, and made recommendations on project applications to the OAC, after consulting with peer evaluators, if this was considered to be necessary.

       Mr Scholtemeijer mentioned that the trustees of the OPDT were tasked with the financial responsibility of the trust funds, and had to operate within the prescriptions of the Trust Deed. He added that the OAC made recommendations on research project applications to the trustees of the OPDT. He said the trust funds were to be used to the benefit of the oilseeds industry as a whole.

       The Chairperson said the OPDT consisted of a ministerial representative, and representatives of commercial and emerging producers, processors, organised labour, consumers and traders.

       Mr Scholtemeijer said he had been made aware of rumours that Grain SA was not happy with the current structures within the oilseeds industry, as it differed from those within the maize industry and others. He cautioned Mr Geldenhuys to not play a dangerous game, as the current system within the oilseeds industry was functioning on a highly efficient scale.

       He added that members of the Forum could also alert the oilseeds industry on specific research requirements within the groundnut industry. He confirmed that an organogram of the structures within the oilseeds industry would be provided at the next meeting of the Forum.

       Mr van Wyk said traders were not as involved in the groundnut industry as the processors, and added that the processors should have more representation on the OAC and the OPDT. Mr de Kock noted that it would be useful to have an organogram of, and an explanatory document on, the oilseeds industry's structures.

       Mr Scholtemeijer said eight individuals were employed in an administrative capacity by the oilseeds industry and the Protein Research Foundation, while contractors were used to attend to other functions, such as the taking of minutes.

       Mr Geldenhuys said he had asked the question in order to determine whether the members of the Forum operated in close proximity to the members of the OAC. He pointed out that he had not at all intended to target the CEO of the oilseeds industry. He mentioned that he had, however, taken cognisance that the Forum was only a discussion forum, without any executive powers. He said his contention would be that the two entities had to be aligned more closely, and raised the possibility that the membership of the OAC be increased, so as to make provision for more representation from the producers' and processors' side.

       Mr Scholtemeijer remarked that Mr Keun served as the representative of the Groundnut Forum on the OAC. He said if representatives of processors, producers and traders from each of the four respective oilseeds industries were to sit on the OAC, the body would become too cumbersome. He added that that possibility would hardly be considered.

       The Chairperson noted that it was the Forum's prerogative to decide who would represent the Forum on the OAC. He said he had been elected to the position of Chairperson for a term of two years, and added that the Chairperson of the Forum traditionally represented the Forum on the OAC. He mentioned that the Chairperson of the OAC tried to attend meetings of the Forums whenever it was possible to do so, in order to facilitate communication between the Forum and the OAC.

       Resolved:

       1. That cognisance be taken that an organogram of the structures within the oilseeds industry would be provided at the next meeting of the Forum.

          Chairperson

11. Meeting dates 2013

    The next meeting will be held on 31 October 2012.

12. Adjournment

    The Chairperson thanked the members of the Forum for their attendance at, and contributions to the meeting, and wished all a safe journey home. There being no further business to discuss, the meeting was adjourned at 13:30.