SAPPO Annual General Meeting 2017

Food security is the name of the game

Food security is a burning issue, not only in South Africa, but worldwide. In answer to growing food security needs, SAPPO requires a fresh look and a new direction to enable the organisation to make a meaningful contribution to providing food for South Africa until 2030, said Johann Kotzé, chief executive officer of SAPPO at the annual general meeting.

He said to reach this goal, SAPPO has to become a business-orientated unit and not merely a producer organisation. One of the first steps to take is to increase production by approximately 45% over the next five years.

This is no easy task, given a variety of economic constraints, but with a dedicated strategic plan it will be possible to achieve success. SAPPO has to strive to become a world-class service provider to the South Africa’s pork producers that will empower the South African pork value chain to be profitable on the long run. For this to happen organisational culture, values and business intelligence are priorities.

“I believe that good leadership, striving for excellence and adding a touch of humour will all be part of the mix.

“There are universal trends shaping our world that should be considered, including:
The world is urbanising. People living in cities cannot produce their own food – they depend on farmers to do that. The farming community must fill this gap.
Protein is driving the world. By offering high-quality protein this need can be met.
People are becoming richer. Pork is an available, affordable and a cost-effective protein choice. It is important to capitalise on this.
New technology (cell phones, the social media) has seen people becoming better informed. We must make use of these technology trends to inform them about the virtues of pork.
Africa is the new market and has great potential. We could double pork exports to Africa.“

He said SAPPO does face challenges to achieve all this. These include:
Growth and business development are paramount.
We have a social responsibility and SAPPO has a contribution to make to this end.
The world as we know it is changing. We need to take care of our natural resources.
Land reform remains an emotional issue in South Africa and is not about to go away any time soon.
In keeping with the theme of a strained environment, climate change will severely influence farming in future.

“These opportunities and challenges are exciting and require purposeful action. I believe in transparency and good relationships with all role players. I also believe in fairness. Let fair play drive our actions in the months to come,” Kotzé said.

Are you biosecure?

“All pork producers should evaluate the value of their business and decide whether they can afford to farm in an area which is not bio-secure,” said James Jenkinson in his chairman’s report at the annual general meeting.

He said if one considers what has happened in the chicken industry, all producers should take the time and money to be compartmentalised and Pork 360 accredited.

Pork imports have been stable over the past few years. So far this year it does not seem to be any different with the total tonnage at 1 000 ton higher than last year, but 4 000 ton lower than in 2015.

The Pork 360 roll-out in the Western Cape went well and was widely welcomed by consumers. It will soon move to other provinces as well.

Jenkinson said he is confident that SAPPO’s new promotion strategy will assist in taking market share from other products. The drought resulted in the consumer price rising while the farm gate price is reducing. In addition, the industry experienced feed costs escalating by roughly 80%, he said.

Substantial growth for Pork 360

“Pork 360 has substantially grown over the past few years. At this stage, 52 000 sows are certified in terms of Pork 360,”said Jacobus Hoffman at the SAPPO annual general meeting.
He said SAPPO has allocated an amount of R2 000 000 for roll-out and marketing activities for 2017. An additional R300 000 has been allocated for administrative activities in 2017.

The strategy and activities of Pork 360 mainly focus on maintaining the scheme’s integrity and includes all certification and auditing processes, as well as promoting Pork 360 to abattoirs, processors and retailers to eventually launch the brand to the consumer.

As far as farm standards and auditing are concerned, farms that maintain a high level of compliance will no longer be required to have internal audits. All farms will have an external audit each year, Hoffman said. In terms of abattoir standards and audits, six abattoirs in total have been certified, namely: Lynca (Meyerton), Eskort (Heidelberg), Winelands Pork (Cape Town), Meat Traders (Queenstown), Malu Abattoir (Kimberly) and Lentaba Meats (Port Elizabeth).

Eskort was the first processing facility that was certified against the de-boning and processing standards.

New marketing campaigns include Eskort, Spar and Food Lover’s Market. Eskort plans to include the Pork 360 sticker on a range of approved products, while Spar is confident that sales increased due to Pork 360 certification. Food Lover’s Market has taken a decision in principle to roll out Pork 360 on a national basis. Traceability, however, would become an issue. Initially they would roll out in regions where traceability can be guaranteed, he said.

Learners trained in art of pig production

“Despite a challenging year experienced by the Baynesfield Training Academy, it managed to train a total of 116 learners during the past year, said Kgadi Senyatsi, in the Business Development report presented at the annual general meeting.

She said the academy has been registered as the accredited AI facility by the Department of Agriculture, Forestry and Fisheries and received the certificate. The gilt facility has been completed and operations will commence before the end of 2017.

The mentorship programme is currently under review, with the possibility of removing some of the farms from mentorship, he said.

In 2016 SAPPO approved financial assistance for four farms. A total of R6 000 000 was allocated for the purchase of equipment, loose tools and production inputs required to maximise production of the farms.

An additional R2 880 000 has been allocated for the 2017 financial year.

The funds will not be allocated equally to each project, but as per project need.

A total of R3 880 800 is available to be spent in the 2017 financial year. No external funding has been secured for the commercialisation of the listed farms, she said.

Pork imports increased in 2017

“Pork imports have substantially increased during May 2017,” said Jacobus Hoffman in the Industry Protection Committee report at the annual general meeting.

He said the cumulative import figure for January to May 2017 is nine percent higher than imports for the same period in 2016; the main exporting countries being Spain and Germany.

Rib imports represent just more than 50% of total imports.

As far as exports are concerned, a number of activities are continuously undertaken with the main aim of opening new markets for South African pork exports.

These countries include Singapore, India, Thailand and the Philipines. Cross-border and existing trade route barriers were addressed urgently.

Other acitivities undertaken by this committee include harbour visits, trade agreements and representation in the Pork Export Working Group, he said.

New ID system on the cards

“The Department of Agriculture, Forestry and Fisheries is working on an animal identification registration and traceability system for the future,” said Dr Peter Evans in the veterinary liaison report.

He said as far as pigs are concerned, the following ideas are presently being drafted:
• Continue with registered tattoos in pigs’ ears.
• Continue with group/batch ID, i.e. the week number.
• All imported/breeding animals must be ear-tagged.

A part of the system will be that all farmers will probably be asked to register their brand/tattoo marks.

As far as disease surveillance is concerned, many countries use passive surveillance as a means of continuous disease monitoring. The pilot project that SAPPO has undertaken with the assistance of the Department of Agriculture, Forestry and Fisheries has been successful. The project used a handful of vets to input information, but it is going to be extended to other pig vets as well.

Dr Evans said a working committee to re-evaluate SAPPO’s welfare code has been formed. There is concern that the local industry needs to address the time that sows spend in crates and move closer to European Union standards.

Schools in promotion spotlight

“SAPPO will create marketing campaigns and Pork 360 awareness through various media to the consumer,” said Jacobus Hoffman in his report on the Pork 360 committee’s activities.

He said Pork 360 has developed three sets of standards; farm standards, abattoir standards and deboner/processor standards. Currently 50 340 sows have been certified.

The latest version of the on-farm standards is available on the SAPPO website and at the SAPPO office. Three abattoirs have been certified, namely Winelands Pork, Lycra Meats and Eskort. The new standards for de-boners and processors have been completed and will be submitted to ISC International for review.

Goals for 2016 include a completed web site, to complete the processing standards, to pass ISC re-certification, to launch Pork 360 in the Western Cape and the activation of a social media platform, Hoffman said.