In terms of the provisions of the National Agricultural Marketing Act, an organisation such as the RPO cannot fund any organisational functions from the statutory levy. Therefore, the RPO must still be financed by membership fees (voluntary contributions) that are deducted from producers.
The membership fees (voluntary contributions) are determined on provincial level and follow one of two systems:-
- a percentage of sales (rates can differ between provinces) 0,15 % to 0,30 % – thus R1,50 to R3,00 on R1 000 sale(s);
- fixed membership fee per year (are determined by the size of the farming enterprise).
The RPO must be financially empowered in its monitoring task and therefore the Organisation must retain its say on behalf of the primary producer in the Red Meat Industry Services (RMIS). The RPO therefore ensures the producer’s say over the scope and application of the statutory levy.
Several critically important actions that the RPO undertakes in the interest of livestock producers will not be able to exist without the membership fees (voluntary contributions) due to a lack of capacity. The national RPO is funded by means of the affiliation fees paid by provincial RPO’s. It is determined by the number of commercial livestock in the province. The national budget is then proportionally divided amongst provinces and the rule of thumb is, approximately 30 % of the possible membership income of the province.
WHAT IS THE DIFFERENCE BETWEEN THE VOLUNTARY CONTRIBUTIONS AND STATUTORY LEVY?
VOLUNTARY CONTRIBUTION | STATUTORY LEVY |
The voluntary contribution is not legally enforceable. | The statutory levy is a compulsory levy introduced within the framework of the National Agricultural Marketing Act. |
The producer has a choice as to whether he/she ensures “membership” with the RPO in this way. | The producer has no choice and he is obliged to pay the levy. |
The voluntary contributions are managed by the provincial RPO in the province where it is collected. | The statutory levy is collected by the ALS (Agricultural Levy Services) managed administratively by the RMIS which are accountable to the RMPC. |
The voluntary contribution ONLY applies to the RPO (provincial and national level). It is therefore either a percentage contribution or a fixed annual amount.
| The statutory levy is a fixed levy per head and escalates annually on 1 November. |
The voluntary contributions, on the percentage basis, can be collected and remitted at any marketing point of sale.
| The statutory levy is deducted and remitted at the abattoir only. The levy is paid by the owner of the animal at the time of slaughter. |
Functions at provincial and national level are funded by the voluntary contributions. The functions vary within provinces and can vary from financial year to financial year. The features include: – · provincial and national office and staff, as well as administrative management; · radio and TV interviews; · producer liaison; (information days, congresses, text messages, social media platforms, brochures, Plaasmedia magazines, electronic newsletter); · influencing policy in provincial and national government; · liaison (departments and veterinary services); · funding of research projects; · administration of national and provincial stock theft forums; and · consumer engagement. | The statutory levy is used exclusively under the following four pillars: – · Public and animal health; · Market access; · Inclusive growth; · Sustainability and Profitability. Under these four pillars the following services are rendered:- · Consumer education (Beef and lamb); · Traceability; · Hygiene and meat safety; · Research and Development; · Animal Health; · Production Development and industry projects. |
Both payments are clearly indicated on the producer’s statement of account, namely: –
- ALS-levy/RMLA-levy/Red Meat statutory levy
- RPO voluntary contribution
Producers are still confused about the difference between the statutory levy and the voluntary contribution and are of the opinion that if the ALS-levy is deducted from them, it also includes the RPO voluntary contribution and all the funds are paid over to the RPO.