Pork industry statutory measures open for comment

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The applicant for the proposed statutory measures is the South African Pork Producers’ Organisation (SAPPO), a voluntary organisation established by pork producers in 1992 to act as a mouthpiece and representative organisation for pork producers in South Africa. The current statutory measures for the pork industry will expire on 31 October 2016.

Although the current statutory measures will only lapse on 31 October 2016, SAPPO requested ministerial approval for the establishment of the proposed statutory measures for a new period of three years, from 1 November 2016 to expire on 31 October 2019.

Levy increase proposed

The existing statutory levy is R9.38 per slaughter pig or live pig exported (excluding VAT). SAPPO proposed that the statutory levy increase to R10.50 per pig (VAT excluded) for the period 1 November 2016 to 31 October 2017, to R11.03 per pig (VAT excluded) for the period 1 November 2017 to 31 October 2018 and to R11.58 per pig (VAT excluded) for the period 1 November 2018 to 31 October 2019.

The estimated income from the proposed levies is between R28.8 million (for 2016/17) and R31.8 million per annum (for 2018/19). The proposed statutory levies will finance the following functions:

• Transformation in the developing sector;
• Production development;
• Consumer assurance;
• Consumer communication and education;
• Research and development;
• Industry information and liaison; and
• Administration

The MAP Act stipulates that a statutory levy may not exceed 5% of the price realised for a specific agricultural product at the first point of sale. The maximum of 5% must be based on a guideline price calculated as the average price at the first point of sale over a period not exceeding three years. The proposed statutory levies will only be 0.67% of the calculated guideline price for a pork carcass (an average over three years) at the first point of sale.

The purpose of the statutory measures

The purpose of the statutory measure relating to registrations is to compel abattoirs slaughtering pigs and exporters of live pigs, to register with the administrator of the pork industry statutory measures (SAPPO).

The purpose of the statutory measure relating to records and returns is to compel abattoirs and exporters of live pigs to render records and returns to the administrator of the pork industry statutory measures. These statutory measures are necessary to ensure that continuous, timeous and accurate market information relating to pigs slaughtered, marketed and live pigs exported is available to all role-players. Market information is deemed essential for all role-players in order for them to make informed decisions.

The National Agricultural Marketing Council (NAMC) took cognisance that the proposed continuation of the statutory measures relating to levies, registration, the keeping of records and the rendering of returns in the pork industry as requested by SAPPO, is consistent with the objectives of the MAP Act. The request is currently being investigated by the NAMC and recommendations in this regard will be made to the Minister in the near future.

Directly affected groups in the pork industry are kindly requested to submit any comments, regarding the proposed statutory measures, to the NAMC on or before 26 February 2016, to enable the Council to finalise its recommendation to Minister in this regard. Submissions should be in writing and be addressed to:

National Agricultural Marketing Council
Private Bag X 935
Pretoria
0001

Enquiries: Ndumiso Mazibuko | E-mail | Tel.: (012) 341 1115/(012) 441 0596 | Fax No.: (012) 341 1911