Notice No. 1398

15 December 2017

GG 41321

Department of Agriculture, Forestry and Fisheries

I, Senzeni Zokwana, Minister of Agriculture, Forestry and Fisheries, acting under sections 10, 13, 14  and 15 of the Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996), hereby—

Senzeni Zokwana

Minister of Agriculture, Forestry and Fisheries

Schedule

“consumers”

means the end users of milk;

“milk producer”

means a person that produces milk by the milking of cows, goats or sheep;

“retailers”

means persons that sell milk directly to consumers; and

“the Act”

means the Marketing of Agricultural Products Act, 1996 (Act 47 of 1996), as amended.

2.        The products subject to the levies and the levies are as follows:

Milk SA

PO Box 1961

Brooklyn Square

0075

Milk SA

Brooklyn Forum Building

Ground Floor (GL004)

C/o Fehrsen & Veale Street

Brooklyn

Pretoria

Milk SA

ABSA Bank

Acc. No. 405 895 6897

Branch: Brooklyn

Code: 634 156

The return form can electronically be conveyed to Milk SA at:

[email protected]

From a national point of view and to promote the viability of the dairy industry, consumers should be informed of the health and nutritional advantage of milk and other dairy products. Informed consumers will not only contribute to the national well-being in respect of nutrition and health, but especially also to the viability and sound development of the dairy industry. The education will be conducted in such a way that it will not erode the marketing activities of any firm in the dairy industry that are aimed at differentiating its products from that of competitors.

From a nutritional and health point of view, milk and dairy products have important roles to play in the national household. In order to protect the integrity of milk and other dairy products, consumer interest and fair competition, the promotion of compliance of these products with the compositional, food safety and metrology standards are required. Also, work must be conducted to deal with amendments of these standards, the creation of new standards in light of, for example, technological developments and the work of Codex, as well as voluntary standards to which references are made in the legal standards. The abovementioned actions are important issues in respect of the viability of the dairy industry and the growth of the markets for the products concerned.

The viability of the dairy industry is significantly influenced by the extent to which previously disadvantaged individuals are empowered. Empowerment will not only impact positively on the viability of the dairy industry, but also on the other objectives of the Act. The focus is on the empowerment will be to finance black role-players, in the dairy industry on enterprise development. As black role-players enterprise development in the dairy industry also requires support from other institutions in the public and private sectors, the enterprise development initiative includes the facilitation of coordinated efforts by the different relevant parties in the public and private sector regarding black role-players enterprise development. At least 50 percent of the levy income earmarked for empowerment, will be allocated to black roleplayers enterprise development.

Furthermore, the dairy industry demands employees with specialised skills and knowledge and the provision of such skills and knowledge is of crucial importance to facilitate transformation in the industry and the competitiveness of the industry which is a prerequisite for growth and transformation in the industry. Some aspects of skills and knowledge cannot be funded by user-pay fees or from other sources.

Consequently, the levy income will also be used to finance such action.

Research and development are required to promote not only the viability of the dairy industry but also to promote the achievement of the other objectives of the Act as set out in section 2(2) of the Act.

Research is fragmented and action is required to ensure co-ordination and that research and development are functional in respect of the strategic direction of the industry namely broadening of the market for milk and other dairy products, improvement of international competitiveness of the South African industry and empowerment of previously disadvantaged individuals. Furthermore, action is required to promote the practical application of local and international research and development in South Africa.

Statistical information and other information regarding the dairy industry in South Africa and internationally and analysis of such information are required to promote market access in respect of the dairy industry, the efficiency of marketing of milk and other dairy products, and the viability of the dairy industry. The information regarding the dairy industry and the analysis thereof make market signals visible for role players in the industry which is a prerequisite for the effective functioning of markets and the prevention of the wasteful use of national resources. Also it provides information required by Government institutions and contributes significantly to the achievement of the relevant objectives of the Act.

The requested levies can in no way impact negatively on any of the matters set out in section 2(2) and section 2(3) of the Act.

Collectively, the requested measure will create a more viable dairy industry that will enhance the matters set out in section 2 (3) of the Act namely food security, number of employment opportunities and fair labour practice.

The guideline prices for milk and other dairy products shall be as follows:

Guideline prices