WHERE DOES THE RPO FIT WITHIN THE TOTAL RED MEAT INDUSTRY OF SOUTH AFRICA?
The RPO is one of the role players in the total red meat value chain of South Africa. The RPO as one of the role players is not subordinate or elevated above any other role player – obviously this applies to any of the other role players.
The role players are: –
- Red Meat Producers’ Organisation (RPO)
- South African Pork Producers’ Organisation (SAPPO) with their own statutory levy
- Red Meat Abattoir Association (RMAA)
- South African Feedlot Association (SAFA)
- South African Federation of Livestock Auctioneers (SAFLA)
- National Federation of Meat Traders (NFMT)
- South African Meat Processors Association (SAMPA)
- South African National Consumers’ Union (SANCU)
- Association of Meat Importers and Exporters (AMIE)
- South African Skins, Hides and Leather Council (SHALC)
- National Emergent Red Meat Producers’ Organisation (NERPO/NaLFA-SA)
- South African Meat Distributors and Allied Workers’ Union (SAMAU)
STRUCTURE OF THE SOUTH AFRICAN RED MEAT INDUSTRY UNDER THE OLD STATUTORY LEVY?
The National Agricultural Marketing Act makes provision that an industry as a whole or by means of a grouping, can apply for a statutory levy. In this regard did the Cluster-members consisting of the primary industry (RPO, NERPO, SA Feedlot Association and Red Meat Abattoir Association) decided to apply for the new (current) statutory levy that commenced on 1 November 2022.
The industry approached BFAP (Bureau for Food and Agricultural Policy) to conduct a study to determine the impact of the statutory levy on the red meat value chain from producer to consumer. The new (current) levy was determined to address the gaps in the industry identified by the study.
The new structure that was established for the NEW (CURRENT) STATUTORY LEVY is as follows:-
New Structure
in the Primary Red Meat Industry
The new (current) levy is introduced until the end of October 2026 and the Cluster-members are already in the process for the application of the levy after October 2026.
The statutory levy escalates by 5% annually and the increase was written into the levy application ending October 2026.
IT IS IMPORTANT FOR PRIMARY PRODUCERS TO NOTE THAT THE STATUTORY LEVY ARE NOT PAID TO THE RPO IN FULL
Producers are still confused and believe that the statutory levy is paid in total to the RPO. The ALS (Agricultural Levy Services) is responsible to collect the levy and the funds are paid to the RMIS.
THE RMIS ONLY MANAGES THE STATUTORY LEVY AND DELIVER AN ADMINISTRATIVE FUNCTION. THE RMIS IS THEREFORE NOT AT THE HEAD OF THE RED MEAT INDUSTRY.
THE RMPC IS THE POLICY MAKING AUTHORITY AND OVERSEE THAT THE ADMINISTRATIVE PROCESSES OF THE RMIS IS DONE IN ACCORDANC WITH THE LEVY APPLICATION. THE RMPC IS ALSO ACCOUNTABLE TO THE NATIONAL AGRICULTURAL MARKETING COUNCIL (NAMC).
It is important that members know and understand the DIFFERENCE between the functions of the RMPC and RMIS.
In terms of the current levy, functions are still allocated to a specific service provider that will render the service on behalf of the whole industry. If an organisation, eg the RPO wants to render a service under the statutory levy, a business plan with budget needs to be submitted to the RMIS. The RMPC decides which service providers are appointed.
The RPO is currently the service provider for the following functions under the new (current) levy:-
- Production Development
- Producer Code of Best Practice (Certification)
- Animal Recording and Theft
Service providers submit quarterly reports to the RMIS and the RMPC also submits updated reports continuously to the NAMC. All monitoring and control measures are in place as proof that the statutory levy is applied correctly