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The minister of agriculture, John Steenhuisen, has rejected the South African Milk Processing Organisation (Sampro)’s request for continuous statutory measures for the industry, due to a lack of industry support. Consequently, the industry will enter the new year without any statutory support once the current levy lapses on 31 December 2025.
According to a letter from Dr Simphiwe Ngqangweni, CEO of the National Agricultural Marketing Council (NAMC), “most of the directly affected groups in the dairy industry do not support the application by Sampro, and it would not be in the interest of the South African dairy industry to support and implement the proposed statutory measures.”
According to Dr Ngqangweni’s letter, the decision not to support Sampro’s application was made on 26 September – the same day that Milk SA held their annual general meeting. Milk SA serves as the umbrella organisation, with two members: Sampro and the Milk Producer’s Organisation.
Mediation required
Dr Ngqangweni added that minister Steenhuisen has decided to refer the matter back to the dairy industry for further negotiations between the relevant, directly affected groups. He also wants to provide the industry with an opportunity to engage an independent mediator, preferably someone with agricultural economics expertise and experience, to assist the directly affected groups with reaching a fair agreement.
Consumer education under fire
“The minister also highlighted concern about the 30% allocation on consumer education and believes that the allocation is too much, especially when the country is battling with foot-and-mouth disease (FMD),” according to Dr Ngqangweni. Minister Steenhuisen has, through Dr Ngqangweni, proposed that some of the levy be allocated to biosecurity and vaccines. – Susan Marais, AgriOrbit
This is a developing story. As new facts arise, they will be included.
