Presented by Andrew Martalas at SACOTA’s Annual General Meeting, held on 12 October 2017 at Centurion Residential Estate & Country Club, John Vorster Avenue, Centurion

CHAIRMAN’S REPORT 2016/17

CHAIRMAN’S REPORT 2016/17

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CONTENTS

WELCOME ...........................................................................................................1

ACKNOWLEDGEMENT ...........................................................................................1

1. ORGANISATIONAL STRUCTURE .....................................................................1

2. INDUSTRY REPRESENTATION .......................................................................2

3. MATTERS DEALT WITH AND SUCCESSES OF SACOTA .....................................2

3.1 TRADE ENVIRONMENT MATTERS ..................................................................2Genetically modified organisms (GMOs) ...........................................................2Maize and wheat import programme 2015/16 ..................................................3Maize export programme 2016/17 ..................................................................4International Trade Administration Commission (ITAC) ......................................5Johannesburg Stock Exchange (JSE) Advisory Committee ..................................7Leaf Services ................................................................................................7The wheat industry ........................................................................................8National Agricultural Marketing Council: Statutory reporting of imports and exports ...................................................................................................8AfricaBio – Post market monitoring (PMM) plan for GMO commodity clearance ...9Dispute resolution process ..............................................................................9Standardised handling and storage contract for grains and oilseeds ....................9EU duty-free imports of wheat ......................................................................10Import duties on soya beans and soya oilcake ................................................10Legal opinion on mycotoxins and pesticide residues ........................................11Operation Phakisa .......................................................................................11Competition Commission ..............................................................................12

3.2 MARKETING AND PROMOTION MATTERS .....................................................12Membership drive ........................................................................................12Website ......................................................................................................13Strategic marketing .....................................................................................13Formal meetings..........................................................................................13

4. FINANCE AND MEMBERSHIP ......................................................................13

CONCLUSION ....................................................................................................13

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CHAIRMAN’S REPORT – 2016/17WELCOMEOn behalf of SACOTA and its Board of Directors, I extend a warm welcome to all our members present at the AGM and to all invited guests that are attending out of interest in SACOTA’s activities.

ACKNOWLEDGEMENTBefore reviewing the events that highlighted the previous year, I want to thank my fellow directors (in alphabetical order):– Heinrich Barnard– Remi Burdairon– Brendon de Boer– Machiel Jacobsz– Konrad Keyser– Laurence Szendrei– Anton Wienand

We worked well together as a team and contributed to a successful SACOTA year that resulted in solid work output, an analysis of a wide variety of issues, and very productive outcomes.

Yet again I want to thank De Wet Boshoff for the excellent way in which he handled SACOTA’s affairs during the preceding year. These include secretarial matters, representation and preparatory work, and research on various issues.

De Wet was ably assisted by Dirk Kok, whom I thank on behalf of the directors and all SACOTA members.

1. ORGANISATIONAL STRUCTUREThe SACOTA structure is currently set out as follows:

BOARD OF DIRECTORS

TRADE ENVIRONMENTMARKETING & PROMOTION

REGULATORY

SECRETARIAT

The meetings of the Trade Environment Committee and the Marketing and Promotion Committee are combined, and deals primarily with trade-related matters, membership matters and the strategic marketing and branding of SACOTA.

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The Regulatory Committee is a new committee established during the year under review and had its launch meeting on 9 March 2017. The committee focuses on regulatory matters that need to be addressed in order to ensure an equal trading environment for all SACOTA’s members.

Members are again strongly encouraged to take part in the meetings of the above committees – these committees form the backbone of SACOTA on industry matters.

2. INDUSTRY REPRESENTATION

SACOTA is officially represented as follows in the relevant organisations:

• Oilseeds and Protein Seeds Development Trust De Wet Boshoff (Trustee)• Oilseeds Advisory Committee Machiel Jacobsz (Member)• South African Grain Information Service (SAGIS) De Wet Boshoff (Director)• Southern African Grain Laboratory (SAGL) Dirk Kok (Director)• Sorghum Trust De Wet Boshoff (Trustee)• Maize Forum Dirk Kok (Member)• Maize Forum Steering Committee Dirk Kok (Member)• Wheat Forum Dirk Kok (Member)• Wheat Forum Steering Committee Dirk Kok (Member)• JSE Agricultural Advisory Committee Anton Wienand (Member)

3. MATTERS DEALT WITH AND SUCCESSES OF SACOTA

3.1 TRADE ENVIRONMENT MATTERS

Genetically modified organisms (GMOs)Following the drought experienced during the 2015/16 maize production season, South Africa needed to import both white and yellow maize to satisfy domestic demand.

In order to ensure that South Africa would be able to import both white and yellow maize from the USA, GMO events planted in the USA needed to be approved for commodity clearance in South Africa. Applications for commodity clearance for six unapproved events were made during June 2016.

The maize industry received notice on 5 December 2016 that all maize events that have been causing asynchrony with the USA have been approved by the Executive Council (EC), the decision-making body under the GMO Act.

This paved the way for the imports of GMO white and yellow maize from the USA. In total, 644 144 tons of white maize were imported for the 2016/17 marketing season, of which 144 548 tons were imported from the USA after the approval of maize events for commodity clearance. A total of 100 413 tons of yellow maize were imported from the USA after the approval of maize events for commodity clearance.

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Although the GMO commodity approvals were not the only factor contributing towards an improved maize market environment from December 2016 onwards, it could be seen as the leading driver. Due to SACOTA actions giving way to an improved maize market environment, South African maize millers and animal feed manufacturers benefitted hugely from the price movement in both the white maize as well as yellow maize, amounting to a joint benefit estimated at R1 billion from mid December 2016 to the end of April 2017.

SACOTA has engaged with local seed companies on 5 August 2016 on the timeous application of GMO events for commodity clearance approval to prevent a similar situation in future and to keep trade routes open.

The following was resolved during this meeting:

• The seed companies committed themselves to submit applications for commodity clearance as soon as an event has been approved for general release in exporting countries.

• Seed companies will inform SACOTA and the Animal Feed Manufacturers Association (AFMA) as soon as an application has been approved.

• A low-level presence (LLP) policy needs to be formulated, and SACOTA and AFMA should collaborate with the Department of Trade and Industry (DTI) to establish a LLP policy as a national standard.

Maize and wheat import programme 2015/16To be able to ensure a smooth maize import programme, both SACOTA and AFMA engaged with the Plant Health Directorate of the Department of Agriculture, Forestry and Fisheries (DAFF) and the Department of Health’s Port Health on various times and matters impacting the import of maize.

The Directorate of Plant Health has, through the World Trade Organisation (WTO), notified all trading partners of emergency phytosanitary measures for imports of maize, which provided that imported maize shipments should be free from two viruses: the maize chlorotic mottle virus and wheat streak mosaic virus. Both Argentina and the USA indicated their inability to comply with the amended phytosanitary requirements.

Engagements and negotiations followed, during which SACOTA and AFMA managed to convince the Directorate of Plant Health that, since imported maize would be used for processing purposes and not for planting, the dispersal potential of these two viruses on maize for milling was considered low, because of the intended use. After milling, maize grain does not present a risk of introducing and spreading these viruses, because the seed cannot germinate. As a result, Plant Health decided to waive the requirements regarding the two viruses and to implement a management plan, drafted and tabled by SACOTA, for the handling and transport of imported maize from the port to the processing facility. The maize import permit requirements were amended accordingly.

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On 5 September 2016, industry was notified of amended regulations under the Foodstuffs, Cosmetics and Disinfectants Act in the form of introducing maximum allowable levels for deoxynivalenol (DON) in unprocessed maize, wheat and barley, and for fumonisins in unprocessed maize. This meant that imported maize and wheat also needed to comply with these requirements.

In order to ease logistics in the harbours with regard to imports of maize and wheat, SACOTA and AFMA convinced Port Health to implement the following:

• If imported maize or wheat was found sound on visual inspection, an Extended Health Detention Certificate would be issued and the vessel would be allowed to be off-loaded and the cargo to be transported to inland silos or processing facilities.

• Official samples would be taken by Port Health and sent to the SAGL for mycotoxin analysis.

• Imported commodities were not to be milled or processed until the results of analysis were known.

Maize export programme 2016/17An all-time record harvest of 16.744 million tons is expected for the 2016/17 maize production season. According to the latest information of the Supply and Demand (S&D) Estimates Committee of the National Agricultural Marketing Council, there is potential for 5.2 million tons of maize to be exported during the 2017/18 marketing season, of which 2.8 million is white and 2.4 million yellow.

At SACOTA’s request, the Maize Forum arranged a maize industry meeting on 14 June 2017 where biosafety matters, sanitary and phytosanitary (SPS) requirements and logistical arrangements were discussed to ensure a smooth maize export programme (similar to the successful maize import programme of the previous year). The most important issue that needed to be addressed was securing potential export markets that would be available and open from a biosafety point of view. The GMO Registrar assured industry that the necessary government-to-government arrangements in terms of the Cartagena Protocol would be made to ensure that export markets would be open for South African maize exports. Currently Japan, South Korea and Taiwan are open for maize exports. Other countries that are targeted are Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Jordan, Yemen, Iran and Iraq.

Up to the week ending 29 September 2017, 848 225 tons of yellow maize and 465 526 tons of white maize have been exported. This means that if one takes the S&D Estimates Committee’s total potential exports of 5.2 million tons into account, a quantity of 3.88 million tons of maize can still be exported.

SACOTA met with the office of the GMO Registrar on 11 September 2017 to discuss progress on opening up countries for exporting South African maize from a biosafety point of view. Feedback from possible export countries remains an open issue. The office

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of the GMO Registrar, however, indicated that it was willing to provide SACOTA with a letter explaining to import authorities that South Africa would be willing to issue export permits, should the identified countries’ competent authorities indicate that they would accept maize imports from South Africa, based on the fact that they were in sync with South Africa on GMO maize events.

SACOTA received this letter on 18 September 2017 and immediately requested its members with offices in these countries to engage with the competent authorities to obtain such confirmation.

International Trade Administration Commission (ITAC)Grain SA applied to ITAC for an amendment to the domestic reference price for maize during September 2015. Due to negative reaction from other role players in the maize value chain, Grain SA withdrew its application in May 2016.

ITAC has, however, decided to review the dollar-based reference price for maize and wheat, and subsequently published a directive in this regard in the Government Gazette of 22 July 2016.

SACOTA has submitted its comments on the dollar-based reference price for maize and wheat to ITAC. SACOTA maintains a view that there should not be import duties on either maize or wheat, and mentioned the following to ITAC:

1. The model did not have the desired effect, as its initial objective was intended to be achieved (an increase in wheat production, which, in fact, decreased over the past five years) and therefore was not relevant any longer.

2. The model has unintended inflationary consequences on the processors and consumers of products that the import tariffs are levied on.

3. An import tariff, specifically on a staple such as maize, cannot be ethically justified, specifically if the country is a net exporter of maize.

SACOTA argued that three additional but critical variables needed to be considered by ITAC during the review process:

• Lack of clarity Despite the specified processes and procedures for the different government departments and the commission involved, the current wheat import tariff mechanism still does not bring clarity to the marketplace in terms of when the triggered tariff is proposed, approved and actually implemented.

This was clearly proven during the last two rounds of implementation of the most resent triggers, with Grain SA having to revert to the courts to get government to implement its own policies.

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• Market volatility The fact that there is a lack of clarity in the marketplace, as stated above, has a

serious negative impact on trade in general, as well as on the trading fraternity that has to take decisions in the marketplace. The lack of clarity created by government adds to the risk, and prohibits or delays trade.

• Effect on the market Changes in trading policies, regulations and dispensations have serious negative

effects on the market and the trading of commodities if these changes are introduced in the middle of any marketing season. This is due to the fact that the market variables must be clear and the market must be allowed time for price discovery for future contracts being traded on SAFEX.

If changes in trading policies, regulations and dispensations are made, it has to be introduced prior to the marketing season for commodities.

During December 2016, Treasury indicated that the current wheat import duty would stay in place. Treasury also indicated that the review process had been finalised and that a new formula would be introduced during the first quarter of 2017.

The final reports have been made available by ITAC during June/July 2017. In the case of maize, the commission’s approach was very conservative and very little has been changed.

In the case of wheat, the commission decided that the domestic dollar-based reference price for wheat be reduced from US$294 per ton to US$279 per ton. The new duty on wheat was calculated as the difference between US$279 per ton and the price of wheat on 9 August 2016, which amounted to US$189.67 per ton at an exchange rate of R13.43 to the US dollar, and adjusted for price differentials between South Africa and its most important trading partners using the real effective rand exchange rate index published by the Reserve Bank. The new wheat duty of R947.20 was implemented on 23 June 2017.

There is still great concern from industry’s side about the time delay between the triggering of a change in the duty and the actual publication of the new duty. This delay creates huge risk and uncertainty, and impacts heavily on the timeous imports of wheat to satisfy local demand. The wheat industry has already raised this matter with government and will further pursue it to get to a solution.

Grain SA, SACOTA and the National Chamber of Milling (NCM) met with ITAC on 21 September 2017 to address this matter. From the joint meeting with ITAC, it became clear that after ITAC receives notification from industry of the latest trigger, it treats the issue as a matter of urgency and passes this on up the authority chain, to the Minister of Trade and Industry. All indications show that the process being dealt with by ITAC and the Minister of Trade and Industry takes between 10 and 15 days, after which it is passed

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on to the Minister of Finance to sign off and to instruct National Treasury to implement it through SARS.

It has thus been decided by Grain SA, SACOTA and NCM, as members of the Wheat Forum, to request a meeting with National Treasury to discuss the situation and the economic impact these delays have on the wheat industry, the Agricultural economy, and eventually the South African economy as a whole.

This meeting will be arranged as a matter of urgency and members will be kept informed on the progress and any possible changes.

Johannesburg Stock Exchange (JSE) Advisory CommitteeThe JSE has decided that, from 1 May 2017, only electronic silo certificates will be allowed for delivery to SAFEX.

The JSE is investigating the introduction of a cash settlement for the soya bean crush contract. Industry has been requested to give feedback on the specifications of the contract proposed by the JSE.

The introduction of the Zambia grain contract has reached an advanced stage, with the JSE partnering with two clearing members to reach out to clients.

The JSE is still interested in introducing a hominy chop contract. The JSE has launched a page on its website where silo owners can log information of any operational issues being experienced at their silos and when they will be resolved for normal operations to be continue. The information is available at https://www.jse.co.za/trade/derivative-market/commodity-derivatives/agricultural-derivatives/agriculture-futures-and-options/physical-delivery.

Because the site is available to all market participants, it allows anyone to log any queries one has with any silo location. At the moment, all these submissions must first be sent to commodities@jse.co.za. The commodity division will then ensure that the website is updated with new information as it receives the information. The idea is that in future, any silo operator or anyone with a query can upload information directly on the website.

Leaf ServicesLeaf Services has been appointed by the Department of Agriculture, Forestry and Fisheries to inspect local grains and products derived from these grains, as well as imported grains.

The grains and oilseeds industries voiced their objections to the appointment of Leaf Services, and various meetings between industry and DAFF took place to resolve the matter.

DAFF and industry met again on 31 July 2017, where DAFF proposed that food business

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operators (FBOs) should be risk-profiled for the purpose of inspection by the appointed assignee for regulated grains, oilseeds and grain related products, and that the frequency of inspection will be determined accordingly.

Industry will study the proposal from DAFF for comment.

The wheat industryThe wheat industry has investigated various options for reviving the wheat industry. These include the following:

• Amendments to the grading regulations with adjusted minimum protein levels per grade.

• A guaranteed wheat grade out loading contract was launched by the JSE and are to be evaluated after a six-month period of implementation.

• The JSE has removed the R100 origin discount, which means that imported wheat can be physically delivered on the JSE without penalty.

• The JSE has adjusted the price differentials between the different grades from 4% to 2%.

• The Technical Committee of the Winter Cereal Trust has decided that irrigation cultivars should be released sooner for cultivation.

• The Technical Committee of the Winter Cereal Trust will finalise the relaxing of release criteria. The purpose of this is to make higher yielding cultivars available for cultivation.

The proposed revival actions will be monitored by the wheat industry on a regular basis.

National Agricultural Marketing Council: Statutory reporting of imports and exportsSACOTA has decided to support the statutory measure for the reporting of imports and exports.

It was formally accepted at the meeting of the Maize Forum Steering Committee held on 27 July 2017 that the statutory measure will only apply to maize imports and exports (and not to wheat as well, because South Africa is a net importer of wheat. The following was also resolved:

• In the case of imports, the quantity of maize to be imported is to be declared eight weeks prior to the date on which the vessel transporting the maize to be imported is expected to arrive in South Africa.

• In the case of exports, the quantity of maize to be exported is to be declared eight weeks prior to the date on which the vessel transporting the maize to be exported is expected to depart from South Africa.

A formal application for the expansion of the existing statutory measures (as indicated above) has been submitted by the Maize Forum to the Minister of Agriculture, Forestry and Fisheries on 21 August 2017.

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Grain SA has enquired from the Maize Forum Steering Committee (MFSC) whether the information on imports and exports could, for the interim, be supplied on a voluntary basis, since the process to approve and implement this statutory measure could take some time. SACOTA has indicated to the MFSC that the decision to approve the expansion of the existing statutory measure lies with the Minister and members are not willing to provide such information voluntarily until the statutory measure has been published.

AfricaBio – Post market monitoring (PMM) plan for GMO commodity clearanceAfricaBio has been appointed by the GMO Registrar to monitor the imports of GMO commodity clearance-approved products.

SACOTA has been requested to participate in this monitoring plan by supplying information on any spillages, accidents or unanticipated adverse effects, or not, during the import of such products.

SACOTA has submitted a letter to AfricaBio informing them that a survey has been conducted among its members and confirming that no member was aware of any spillages, accidents or unanticipated adverse effects that occurred during the last 12 months regarding the import of GMO commodities for commodity-clearance purposes.

Dispute resolution processA document has been drafted by SACOTA and AFMA, setting out a standardised dispute resolution process when grain that does not conform to quality specifications is out-loaded by the silo owner. Agbiz Grain has been requested to comment on the document. Agbiz Grain has forwarded the draft document to the Grain Handling Organisation of Southern Africa (GOSA) for comment. SACOTA regards Agbiz Grain as the official representative body for the storage providers and would prefer that it comment on the document. It was decided that the SACOTA Board of Directors meet with the Steering Committee of Agbiz Grain to address this matter.

Standardised handling and storage contract for grains and oilseedsThe SAGOS contract (Contract for the Purchase and Sale of Grain, Pulses and Oilseeds and products derived therefrom) has been drafted by the grains and oilseeds industries as a standardised contract for the trading of grains and oilseeds in South Africa.

The contract was compiled to be fair and impartial to both parties entering into such contract (buyer and seller), making use of standardised trade terms and conditions. More importantly, the contract includes a clause relating to disputes and dispute resolution, as well as the rules that will apply. Any disputes arising from the use of the SAGOS contract are currently administrated by the Arbitration Foundation of South Africa (AFSA). The SAGOS contract is currently the operative contract in the trading of grains and oilseeds.

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During 2014 SACOTA requested that Agbiz Grain (previously the Grain Silo Industry) discuss the merits of a standardised handling and storage contract for grains and oilseeds to be introduced in the industry, and that once the terms and conditions of the contract was agreed and finalised, the contract should also be introduced as a formal SAGOS-type contract under the custodianship of SAGAS (as is currently the case with the trading and the transport contract).

Agbiz Grain subsequently indicated that they would entertain such a proposal and requested SACOTA to develop a draft contract in this regard.

The final draft has been submitted for comments to Agbiz Grain on 22 August 2016.

Agbiz Grain responded that the standardised document on handling and storage was circulated among Agbiz Grain members in 2016, but the feedback indicated that:

• the Agbiz Grain members all felt that they had their own individual requirements; and

• therefore, they preferred to have their own customised documentation for handling and storage.

SACOTA is of the opinion that there is merit for a standardised handling and storage contract and has decided that the SACOTA Board of Directors meet with the Steering Committee of Agbiz Grain to address this matter.

EU duty-free imports of wheatSACOTA attended a meeting between industry role players, DAFF, SARS and ITAC on 2 June 2017 to discuss the future imports of wheat from the EU under the current EU/Southern African Development Community (SADC) Economic Partnership Agreement (EPA) agreement in order to provide for a fair distribution of the import quota. It was resolved that ITAC would discuss the implementation of a permit system (based on minimum market access) linked to the “first-come-first-served” EU provision in the EPA agreement.

SACOTA has received notice that a letter was sent from the Minister of Trade and Industry to the EU Trade Commissioner with regard to the concerns surrounding the first-come-first-served administration of the wheat quota. The DTI’s proposal was reiterated for the implementation of a management system based on the WTO minimum market access system. The DTI has also been engaging the EU delegation in Pretoria on this issue. The DTI has not yet received a formal response from the EU on its proposal and is following up.

Import duties on soya beans and soya oilcake The review of the soya bean and soya oilcake import duty forms part of the poultry value chain round-table discussions.

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The Soya Oilcake and Soybean Tariff Subcommittee of the AFMA Trade Committee met on 20 February 2017, where it was decided that the import duty on all oilseeds and oilcake should be abolished.

SACOTA and AFMA have appointed trade lawyers to handle this process. Furthermore, it was decided that the abolishment of import duties on sunflower seeds and sunflower oilcake be addressed simultaneously.

The import duty on soya oilcake imported from Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) has been reduced from 6.6% to 4.95% from 1 April 2016. This implies that importers that have overpaid on duties since 1 April 2016 should be able to claim back those duties from SARS, subject to the presentation of a Certificate of Origin. SACOTA and AFMA have appointed trade lawyers to handle this process.

Legal opinion on mycotoxins and pesticide residuesSACOTA has obtained a legal opinion on the liability regarding prescribed levels of mycotoxins and pesticide residues.

The conclusion of the legal opinion is that SACOTA members may be held criminally liable for the contravention of the Foodstuffs, Cosmetics and Disinfectants Act if mycotoxin levels and pesticide residues exceed the prescribed tolerances found in the products they sell.

The recommendation is that SACOTA members require the silos and other persons they purchase from to provide guarantees that the products fully comply with the requirements of the Foodstuffs, Cosmetics and Disinfectants Act. In turn, those persons should require exactly the same from the producers or other persons they purchase from, in order to ensure compliance to the law by each link in the value chain.

The matter was discussed at a meeting of the Maize Forum Steering Committee on 1 September 2017, where it was decided that industry role players should discuss and find solutions to the current risk associated with mycotoxin levels and pesticide residues in maize.

SACOTA will take the lead in arranging a meeting with the relevant role players in the value chain in order to address this matter.

Operation PhakisaThe National Development Plan (NDP) and the New Growth Path (NGP) indicate a need for a policy shift in the agriculture, forestry and fisheries sectors and for the development of inclusive rural economies. The Agricultural Policy Action Plan (APAP) was implemented to enable a comprehensive and integrated response to the challenges facing the sectors, while ensuring sustainable growth and food security. The overarching implementation plan of the NDP and APAP is captured in the Medium-term Strategic Framework (MTSF). The focus of the MTSF relating to the

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Economic Sectors, Employment and Infrastructure Development (ESEID) Cluster is the Nine-Point Plan, of which the revitalisation of the agriculture and agro-processing value chain (RAAVC) is one. Operation Phakisa seeks to further strengthen the plans of RAAVC.

In seeking to develop a comprehensive response to these challenges and the targets set out in the NDP, DAFF, along with the Department of Rural Development and Land Reform (DRDLR) and the Department of Planning, Monitoring and Evaluation (DPME), hosted a five-week planning process known as a Lab as part of the Operation Phakisa Methodology.

The two broad objectives of Operation Phakisa are as follows:

• Stimulate growth, foster job creation and instil transformation along the agriculture and rural development value chain.

• Contribute towards inclusive growth. Three initiatives has been identified for grains:

• An integrated grain value chain (value chain development and market access)• Unlocking finance for grains through public-private partnerships (PPPs)• Grain know-how

SACOTA has been tasked to provide inputs on the following activities:

• Reviewing marketing alternatives or options, including a 10-ton SAFEX contract for maize

• Developing a producer support package for the grain industry (Grains 201 – how the market works)

Competition CommissionDuring the year under review, SACOTA has requested the Competition Commission to provide feedback on its investigation into the allegation of the Congress of South African Trade Unions (COSATU) that traders were using the drought situation to manipulate grain price increases. The reply from the Competition Commission was that they were still busy with their investigation.

3.2 MARKETING AND PROMOTION MATTERS

Membership driveThis is an ongoing process driven by the secretariat and me, with assistance from the board of directors.

We look forward to welcoming many of the interested but undecided among us in the near future.

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WebsiteThe website has been upgraded, which now make it possible to be viewed on any possible platform. There is a wealth of industry-related information accessible on the website, which includes links to all the member websites we are aware of. News items of interest are placed on the website on a regular basis.

Strategic marketingSACOTA made use of the opportunity to co-sponsor the dinner during the AFMA Golf Day held in August 2017 to promote SACOTA as an association. Formal meetingsAs part of its marketing and branding activities, SACOTA will continue to drive the following actions: • One-on-one meetings with other industry associations• Incorporating scheduled meetings and actions with other role players as part of the

SACOTA year planner (to be circulated)• Introducing SACOTA to associations, institutions and role players outside

SACOTA • Discussing matters of mutual concern with associations, institutions and role

players outside SACOTA

4. FINANCE AND MEMBERSHIP

SACOTA runs a zero-based budget every year, while still trying to:

• increase its membership numbers• accumulate reserve funds.

The ultimate goal aspired to when calculating membership fees is to pay the costs of the association and build a solid financial base in order to ensure the sustainability of SACOTA. The cost of membership must be affordable to current members and attractive to prospective members. As the membership grows over time, it should be reduced on a per-metric-ton basis to all members. The objective is also to cap membership fees at a certain level.

CONCLUSION

In conclusion, I would like to highlight a part of SACOTA’s vision and principles:

TO BE A SIGNIFICANT AND RESPECTED FORCE IN SOUTH AFRICAN AGRICULTURE AND REGIONAL TRADE

As is clear from this report, we, as an association, have lived up to this vision in the past year.

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I am confident that we have laid strong foundations for our association and I have no doubt that the board of directors will expand SACOTA’s reach, influence and contribution to the southern African agricultural industry.

I wish the board of directors every success for their next term.

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South African Cereals and Oilseeds Trade Association (SACOTA)Block B, Agri-Hub Office Park, 477 Witherite Street, The Willows, Pretoria, 0184, South AfricaPostNet Suite 221, Private Bag X04, Menlo Park, 0102Tel: +27 (0)12 663 9097 / +27 (0)12 663 3282E-mail: sacota@afma.co.zaWebsite: www.sacota.co.za

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