With less than six months left until current statutory measures expire, the dairy industry asked agriculture, land reform and rural development minister Thoko Didiza to uphold this for a further four years.
The statutory measures relate to the levies, registration, the keeping of records and the rendering of returns by relevant stakeholders.
In a joint media release, the South African Milk Processors’ Organisation (Sampro) and the Milk Producers’ Organisation (MPO) said it also compels all secondary dairy role players in the country to register with Milk South Africa, the administrator.
“Registration will facilitate better communication in the industry on matters of common interest, such as technical issues, food safety, product standards and other issues,” the dairy organisations believe.
Furthermore, they it provided a statutory mechanism for, among others, dairy processors, traders, brokers, importers and exporters to keep records and furnish returns to Milk South Africa.
“The information and analysis thereof will enable Milk South Africa to make market signals available to role-players and government institutions.”
The current statutory measures for the dairy industry will expire on 31 December 2021. Sampro requested ministerial approval for the continuation of these statutory measures for a further four years, lapsing on 31 December 2025.
They also asked Didiza to increase statutory levies by 4% per annum.
“Due to inflation, since the current levies were first implemented in 2017, the income generated by these statutory levies is not sufficient to satisfactorily pursue the objectives of the regulations in the period for which the extension of the validity of the regulations is requested,” they said.
The NAMC’s perspective
The estimated income from the proposed levies is R62.8 million for 2022. It is estimated to be R65.3 million, R67.9 million and R70.6 million for 2023, 2024 and 2025, respectively.
Meanwhile, the National Agricultural Marketing Council (NAMC) said the proposed continuation of the statutory measures is consistent with the objectives of the Marketing of Agricultural Products 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.”