EGG ONLY LEVY
Egg-only levy application
SAPA continues its engagements with the National Agriculture Marketing Council (NAMC) to initiate an eggonly levy. Since the last communication, SAPA has received the blessings of producers accounting for over 12 million hens. This is a significant number as it is close to 50% of national production. We are going to embark on a last push to get more support for the levy. When issues such as the proposed inspections arise, the industry needs to put up a united front and stand together. The assignee and cage size matters have highlighted the importance of having an industry voice. We hope that the producers will also see the benefits and support the levy so a fair system is established to ensure there is enough funding to do the required work for the benefit of all.
The International Egg Competitiveness study
The Bureau for Food and Agriculture Policy (BFAP) sent a request for input to allow the South African egg industry to be included in the global competitiveness study. Input was received from two large producers and one small one. A follow up request was sent from SAPA. We were hopeful that a better response would be elicited. It is concerning that producers were not excited about this opportunity and therefore didn’t respond positively to the request. SAPA will continue to engage with BFAP, the University of Wageningen, and producers to make sure that South African producers benefit from this initiative.
The background to the initiative is that the University of Wageningen conducts a global competitiveness study of various commodities. The South African broiler industry participated in the previous study and the information has been used to dispel the beliefs that the South African broiler industry is globally uncompetitive. SAPA requested that the South African egg industry be included in the egg study. The information will them be sent to Mr Peter van Horne at the University of Wageningen to include in his study. We believe that that the study will be of great value to the egg industry.
The SAPA Transformation Committee has been working to find ways in which meaningful transformation can be realised in the industry. There are large companies who are looking to partner with smaller producers to acceleration transformation. This partnerships are a welcome development because SAPA is able to engage with funders who will be able to fund partnerships using the strength of the large companies. We believe that these engagements will be mutually beneficial to both large and small producers, while advancing industry transformation plans.
SAPA has been engaging with government on behalf of the producers regularly in the past few years. One of the challenges raised by government at all the engagements is the lack of transformation in the industry. We believe that there many transformation initiatives that producers are engaging in that SAPA is not made aware of. We have therefore requested that you sent us your transformation activities for us to compile a report for government. Please forward your initiatives to firstname.lastname@example.org.¡