Aartappels Suid-Afrika Kongres 2015 Potatoes South Africa Congress

Transcription

1 Aartappels Suid-Afrika Kongres 2015 Potatoes South Africa Congress Gawie Geyer Verandering van uitdagings na geleenthede in die Suid-Afrikaanse aartappelbedryf Die Aartappels Suid-Afrika Kongres 2015 is op 30 September en 1 Oktober 2015 in die Lagoon Beach Hotel, Milnerton gehou en is deur sowat 350 afgevaardigdes, waarnemers en bedryfsrolspelers bygewoon. Mnr. Ernst Yzel het in sy verwelkomingsboodskap gesê dat dit die grootste Aartappels Suid-Afrika kongres in terme van bywoning is wat daarop dui dat dit wat die kongres bied as waardevol en nuttig beskou word. Hy het n besondere woord van dank uitgespreek teenoor borge vir hul ruimskootse finansiële steun om die kongres n realiteit te maak. Aangesien Aartappels Suid-Afrika se aktiwiteite statutêr befonds word mag sodanige fondse nie vir die aanbied van die kongres aangewend kan word nie en is Aartappels Suid-Afrika dus aangewese op borgskappe om die Kongres aan te bied. Page 82 CHIPS September/Oktober 2015

2 Kommunikasie Communication van die personeel het meer waarde ontsluit ten opsigte van die diens wat ons aan die aartappelbedryf lewer. Dit dien ook gemeld te word dat ons uitstekend daarin geslaag het om ons administratiewe uitgawes verder te besnoei wat ons in staat gestel het om addisionele fondse aan kernbesigheidprojekte toe te wys. Gekombineerde voorsitters- en hoofuitvoerende beampte-verslag aan Kongres / Combined chairperson s and chief executive officer report to Congress Potatoes is a serious role player in the South African economy in terms of its contribution to the gross domestic product. Taking the combined value of the field crop and horticultural sectors, potatoes is the fifth biggest agricultural sub-sector. The primary industry is valued at R7 billion and the secondary industry at nearly R20 billion. As far as job creation is concerned more than workers are employed on farms alone. In terms of alleviating hunger and poverty the humble spud is a real stalwart it is not only affordable and nutritious and consequently a must in any well-balanced diet, it also counters poverty by offering business opportunities, for example to the informal traders and rural communities to become self-supporting. Dit is belangrik om kennis te neem dat die organisasie daargestel is om waarde toe te voeg tot die bedryf. Voorts is dit ook so dat die organisasie se grootste bate sy personeel is met die klem op hul vermoëns en kennis waaroor hulle beskik en dus die uitsette wat hulle tot voordeel van die aartappelbedryf lewer, het mnr. Yzel gesê Die implementering van die kernbesighede se strategiese planne sedert die vorige kongres is gekenmerk deur nuwe dinamiese perspektiewe en aksies wat die organisasie se manier van dinge doen soos n handomkeer verander het, sonder dat gekarring is aan dit wat oor tyd bewys is om te werk. Wat die implementering van die prestasiebestuurstelsel betref werp dit reeds vrugte af. Die gevolglikke motivering From a corporate point of view Dr André Jooste referred to the recent introduction of a new supply chain management policy and indicated that it is aligned to the constitution of Potatoes South Africa and the Public Finance Management Act as the organisation is working with public funds. A new financial system was also introduced to comply with the needs of a dynamic environment where corporate management is crucial. I am also confident that it will contribute to rendering financial service in a more efficient way, he said. Navorsing en Ontwikkeling / Research and Development Die navorsingstrategie is gemik op die aanspreek van probleme wat deur die aartappelprodusente geïdentifiseer en geprioritiseer is. Dit sluit onder andere in kultivars wat beter geskik is vir plaaslike produksietoestande, grondgesondheid, watergebruik en -kwaliteit, grondgedraagde siektes en die kwaliteit van moere en tafelaartappels. Potato cultivar trials conducted by the regional potato workgroups will always remain an important part of research and development. The main reasons for its success are because it is farmer driven and region relevant. At the recent Potato Research Symposium 17 reports were tabled on the potato cultivar trails conduction in the potato production regions. Dr Jooste explained that in order to be compliant with the industry s research needs, Potatoes South Africa continuously strives to align it research and development strategy with current needs. For example, in the 2014/15 financial year we invested heavily in the establishment of PCR technology whereas in the current financial year we are investing in other research areas and have also introduced additional mechanisms to disseminate information more efficiently. Examples of this are publications such as the Best practices for handling seed potatoes and the series on Postharvest decay of potatoes. Furthermore, the department has published a number on fact sheets on potato pests and diseases plaguing the potato industry that is currently being disseminated. Lastly Potatoes South Africa is involved in more than 40 research projects that are being conducted by various research institutions in South Africa. CHIPS September/October 2015 Page 83

3 Bedryfsinligting / Industry Information Die aantal aartappelprodusente word al hoe minder, maar die volume aartappels wat geproduseer word neem toe. Dit kan toegeskryf word aan kultivars wat hoër opbrengste lewer, verbeterde produksiepraktyke en n verhoging in die aantal hektare geplant. Volgens mnr. Yzel is die Suid-Afrikaanse aartappelbedryf n baie dinamiese bedryf wat gekenmerk word deur deurlopende veranderinge. Die bedryf gaan ook soos ander bedrywe gebuk onder n koste-knyptang en in besonder lae pryse wat primêr toegeskryf kan word aan die hoër opbrengste en meer hektare geplant wat tot meer voorrade op die markte lei en afwaartse druk op pryse plaas. Dit is vandag nie meer vergesog om 100 ton per hektaar onder besproeiing af te haal nie. Dit skep vir die bedryf nuwe uitdagings om die per capita verbruik te stimuleer. Dit is egter vir my aangenaam om te kan sê dat ons die per capita verbruik oor die afgelope dekade verdubbel het. In a fast changing business environment what is conveyed must be useable and fresh. In addition it is no longer about providing information, but rather about providing market intelligence that is aligned to the needs of the industry. It is also imperative that the market intelligence reaches the role players expeditiously as old news are for all intents and purposes useless. When talking about information and intelligence the adage - the cost of knowing is nothing compared to the cost of not knowing - is extremely applicable, and what you can t measure you can t manage. Hence the Department: Industry Information renders a vitally important service. Over the last year we have made strategic changes and is now also focussing on pre-farm gate information and projects such as labour versus mechanisation, pack house efficiency and transport cost models. We are continuously investing in economic models for policy analysis and forecasting. Examples are the use of the aforementioned models to determine the impact of wage increases and Zero VAT rating on agricultural products such as seed potatoes, Dr Jooste said. He also stressed the importance of disseminating information. Apart from the daily SMS s, we are currently investing in WhatApp technologies in order to be able to distribute fresh and relevant information to all stakeholders on what is happening on markets, the exchange rate, etc. Transformasie / Transformation Moving forward with transformation is not that easy as the process is wrought with obstacles, and is definitely not for the faint-hearted. But as there is a will to succeed we are getting there one small step at a time. This is evident from the increase in hectares planted by small holder farmers and the fact that quite a number of these farmers have shown the potential to move towards commercialisation. Volgens mnr. Yzel moet jy weens die arbeidintensiwiteit van die aartappelbedryf met mense kan werk, hulle verstaan en vir hulle omgee. Dit is juis hierdie eienskap wat die Suid- Afrikaanse aartappelprodusent anders maak. Die direksie van Aartappels Suid-Afrika het ses jaar gelede die besluit geneem om elke jaar ses nuwe swart aartappelprodusente in ons bedryf te vestig. Dit is vandag vir my aangenaam om te kan sê dat ons grootliks in ons doelwit geslaag het. In die aartappelbedryf is daar ook van die mees suksesvolle werkerskemas waardeur produsente hul werknemers bemagtig het. Dit kan toegeskryf word aan die aartappelprodusente se bereidwilligheid om die lewens en omstandighede van hul werkers te verbeter. Potatoes South Africa launched its enterprise development program some six years ago. Since then the number of participating small holder farmers increased from six to the current 34. It now focusses its efforts on expanding the number of hectares instead of just expanding the number of participating small holder farmers under our enterprise development program. This also links up with the guidelines provided by the National Agricultural Marketing Council as far as transformation and in particular enterprise development is concerned. Potatoes South Africa regards partnerships as extremely important. An example is the program partnership between Potatoes South Africa and the Western Cape Department of Agriculture. Over the past four years people have benefitted from Potatoes South Africa s small holder development program which is conducted in partnership with various provincial Departments of Agriculture. Investing in the youth is regarded as extremely important to the future of the potato industry. In the past year more than 20 bursaries was awarded to post and under graduate as well as diploma student studying towards a potato related qualification. Markontwikkeling en Generise Produkbevordering / Market Development and Generic Product Promotion Mnr. Yzel het genoem dat anders as in ander ontwikkelende lande gebruik ons steeds die grootste persentasie van aartappels in vars formaat. Dit word hoofsaaklik gedryf deur die informele sektor wat n geweldige groot bate in die aartappelbedryf is aangesien Page 84 CHIPS September/Oktober 2015

4 Kommunikasie Communication hulle soveel as 50% van die beskikbare voorraad op die varsproduktemarkte aankoop - dit help baie om n gesonde prysvormingsmeganisme daar te stel. Dit is ook so dat verwerking n toenemende belangriker rol in die aartappelbedryf speel en ek dink dat ten opsigte van Suid- Afrikaanse produkte wat oor landsgrense heen beweeg, verwerkte aartappelprodukte n groter rol gaan speel. Maar wat die verbruik van vars aartappels betref het ons nog nie die piek bereik nie, en kan baie gedoen word om die verbruik van aartappels te verhoog. Wat markontwikkeling betref was Project Rebirth een van die vlagskipprojekte waarmee Aartappels Suid-Afrika saam met ander rolspelers soos die Departement van Landbou, Bosbou en Visserye en IMASA hard aan gewerk het die afgelope twee jaar. Dit het uiteindelik gelei tot die Kodes vir Goeie Praktyk vir rolspelers betrokke op varsproduktemarkte en die vernuwing van infrastruktuur op markte. n Voorvereiste vir die suksesvolle implementering van n reklameveldtog is ken jou kliënt. Voor Aartappels Suid-Afrika dus die reklameveldtog geloods het, is verbruikersnavorsing onderneem om die grille en wispelturigheid van die verbruiker te verstaan. Aartappels Suid-Afrika se primêre doelwit met sy reklameveldtog is doodeenvoudig ons wil die per capita verbruik van aartappels verhoog! Die veldtog met die gepaste slagspreuk Don t just see the potato...see THE POTENTIAL is gemik op die bereiking van hierdie doelwit. ] Dr Jooste reported that Potatoes South Africa has introduced a number of programs to stimulate the demand for potatoes in South Africa. Examples are the in store promotions in partnership with the Shoprite / Checkers. The organisation is also involved in a number of sporting activities such as the Comrades and the Two Oceans Marathon. The informal markets and rural marketing environment is becoming increasingly important and in the past year we have afforded attention and given funding to promote potatoes in these segments. There has also been a strong focus on our advertorial campaign in the printed media and on radio through which we promoted the nutritional value and value for money of potatoes. The impact of public relations and social media should never be underestimated. In this regard we yielded a return on investment of 93% through free media exposure. Streeksdienste / Regional services The Department: Regional Services remains an important component in our efforts to render services to our producers, to collect information from producers that are used by our other core business departments and also play a vital role in our regional cultivar trials. In the past year we have introduced significant changes to the key performance areas of our regional managers to ensure that their regional activities are linked to Potatoes South Africa s core business activities, Dr Jooste said. Ten slotte / In conclusion Dr Jooste said that Potatoes South Africa has successfully applied for a statutory levy for the period 2015/2019 with the assistance of the National Agricultural Marketing Council. In partnership with Prokon we have introduced voluntary specifications on paper used for the manufacturing of packaging material for the potato industry. The majority of packaging manufacturers have signed a code of conduct that show their commitment to comply with the specifications. As already commented communication is extremely important to us in order to get the message across. Apart from introducing a new monthly newsletter, we are in the process of introducing a new consumer relationship management system. The latter will allow for timely and accurate dissemination of information to stakeholders as well as two-way communication between Potatoes South Africa and the various stakeholders. I am also delighted to report that our official mouthpiece CHIPS is reaching new heights as a truly industry magazine, he said. Mnr. Yzel het die verslag afgesluit met die woorde Die aartappelbedryf is nie net n groot bate vir die Suid-Afrikaanse landbou nie, maar ook vir die land as geheel. Dit speel n geweldige belangrike rol ten opsigte van voedselsekuriteit, veral wat die verskaffing van bekostigbare voedsame voedsel betref. Aartappels is n baie intensiewe gewas om te verbou en dit is so dat n baie klein handjie-vol mense n geweldige klomp voedsel verskaf en n groot bate vir die land is, en ek dink nie dat hierdie produsente die erkenning ontvang wat hulle verdien nie. Hoofspreker Tony Bambridge / Keynote speaker Tony Bambridge Mr Tony Bambridge, Managing Director of B&C Farming Limited in the United Kingdom, said in his address that in order to survive the challenges facing the potato industry in the United Kingdom and also grow your business, it is imperative that you know your clients and forged close CHIPS September/October 2015 Page 85

5 relationship with them. According to him excellence in order to constantly deliver quality produce has become the key and led to the need for greater technical and agronomy competence on the farm and therefore better trained staff. As in South Africa the number of potato growers in the United Kingdom have dropped significantly. In the 1960s there were potato growers whereas it now stands at about 2000 growers of which about a is worth referring to. About hectares are planted and approximately 5.3 million tons of potatoes are harvested. Another similarity is the increase in yields per hectare. Yields have risen by 50% because of improve agronomy, technology and cultivars. 57% of potatoes consumed in the United Kingdom are processed and 43% fresh. The main reason for the increase in processed potatoes can be ascribed to the huge improvement in the quality of the processed product and the revolutionising of processing techniques which means the consumer can buy exactly what he / she needs in terms of volume and preparation. Because of changing dietary habits the potato is competing with rice and pasta and potatoes are losing the race because the consumer is of the opinion that it is much quicker to prepare a meal containing rice or pasta. The consumer has also become a on the go eater and these meals seldom include potatoes, he said. The trend amongst consumers in the United Kingdom is to buy just what is needed for immediate usage which means they have become more frequent buyers. As a result shelf life is no longer that important. For the farmer it is important to know who his customer is with the emphasis on knowing the latter s needs and preferences. It is also necessary to build a close business relationship with customers that goes beyond the transactional. In order to be successful it is absolutely necessary that you convert from simply trading to supply chain management. The competition between the major retail groups are fierce and in order to increase market share they would opt for innovation which could mean exclusive varieties when it comes to the potato industry. Unfortunately the increase in varieties and more exclusivity in terms of the marketing arrangement have increased the growers costs and risk. It is the potato grower that loses out if he has an above normal yield because nobody will be prepared to buy the excess. You have to be very clear on who and what your market is. The problem is that because of the composition of our market there is no other segment to go to should you fail in your market segment. This all means that the grower has to get involved beyond the farm gate which includes meeting regularly with processors, packers and retailers, he advised. According to Mr Bambridge consideration should be given to move away from the concept of price per tonne and opt for return on investment during price negotiations to ensure that the grower gets his fair share of the consumer spend. He added that he prefers agreeing to a long term contract with his customer in order to get away from fluctuating market prices. Always keep your eye on the ball in terms consumer needs and preferences. In the United Kingdom the standard of locally prepacked potatoes was not on par with consumer demands and as a result we lost out to imported products, and it is not easy to regain such a loss in market share. At the moment 50% of the prepack market are supplied through imports, he said. He also stressed the importance of being part of the supply chain, which includes how it works. Go into the store to see what the consumer picks up and the size of the shelf. Market intelligence is the key get it from you industry body but also from partners in the supply chain. On the question of getting more value out the product you deliver he advised that apart from offering what the customer wants, it would be worthwhile to look at aspects such as establishing a brand based on packaging, quality and continuity. Remember, you are only as good as your last delivery! Put rubbish in the bag and it could be your last sale to that customer. As far as his company s seed potato operations are concerned, he explained that it is kept separate from their other farming operations with the emphasis on prevention of soil borne pathogens. We endeavour to add greater value and transparency as well as integrity. And we no longer sell in tonnes, but in hectares to an agreed density. We also provide independent disease analysis (postharvest) with the emphasis on fungal diseases because that is where the main problem lies in terms of rejections. We also provide seed treatment if needed and just in time delivery using our own transport, he said in conclusion. BESPREKINGSPUNTE / DISCUSSION POINTS The Congress program made provision for four discussion point of which the first three was chaired by Prof Johan Page 86 CHIPS September/Oktober 2015

6 Kommunikasie Communication Kirsten of the University of Pretoria and the fourth by Mr Deon van Zyl of the RSA Group. The topics covered were chosen for the relevance to the current day to day operations on potato farming operations and the businesses of stakeholders in the potato industry. Duskant die plaashek-volhoubaarheid: Fokus op grond en water as nie-herwinbare natuurlike hulpbronne / Pre farm gate sustainability: Focusing on soil and water as non-renewable natural resources [Panellists: Mr Joos Engelbrecht (potato producer), Prof Dr Andreas Gransee (KALI), Mr Julian Conrad (GEOSS) and Ms Isobel van der Stoep (SABI) with Dr Martin Steyn (UP)/ introducer] As an introduction to the discussion Prof Martin Steyn referred to the three key principles that apply to sustainability, namely people, profit and planet and said that for the purpose of the discussion he will concentrate on the planet which includes the efficient use of water and soil. Although potato is one of the most water efficient food crops in terms of its water footprint (± 20 L/150 g of potato), available statistics show that producers in general use more water than required under irrigation, especially in some regions and on certain farms. He added that a lot could be done to use water more efficiently through improved water management. As far as over irrigation is concerned it not only leads to water wastage and energy, but also to pollution through the leaching of nutrients which has an adverse effect on environmental and financial sustainability. In the case of soil use sustainability he stressed the importance of implementing land use efficiencies, with the emphasis on the fact that soil is a non-renewable resource. The results from the survey conducted on soil use efficiency puts the average yield on 44 t/ha, however it differs from region to region. Dr Steyn said in conclusion that although the average soil and water efficiencies of the South African potato producers are rather good it is imperative that it be improved through decision support systems, especially in view of the expected future change in weather patterns. Panel discussion summary As far as water use efficiency is concerned the necessary technology is available. However, prior to installing a centre pivot irrigation system it is necessary to ask the right questions such as, is it the right size, does it have the right sprinklers, height of the sprinklers for optimum coverage, how much and when am I going to use it taking into account load shedding, what is the correct operating pressure to optimise energy consumption? Measure and manage water use continuously. On-going monitoring of groundwater levels is essential, especially in the Sandveld where there are specific hotspots and rainfall is low. The quality of the water affects the quantity required for irrigation. The organic matter in the soil affects the carbon content and storage capacity of the soil. Sustainable resource use requires a balanced holistic approach where production is in harmony with nature, climate, biodiversity and socio-economic conditions and business realities. As municipalities and mines has a responsibility to protect water quality, the same applies to the farming sector. Ontsluiting van die ware DNS van die informele sector Wegdoening met vooropgestelde opinies en idees / Unlocking the true DNA of the informal sector Deflating preconceived notions and ideas [Panellists: Mr Uthman Rhoda (market agent), Ms Mamapudi Nkgadima (introducer), Ms Rosheda Muller (SAITA) and Mr Lebo Motshegoa (Foshizi)] Ms Mamapudi Nkgadima of the company African Response said that for many South Africans the informal sector is the alternative to unemployment and is a common feature in all urban areas and wherever there is traffic. CHIPS September/October 2015 Page 87

7 The informal sector contributes 5% to South Africa s gross domestic product, i.e. R120 million of R2.4 trillion and offers employment to 10% of the South African active workforce. As far as the profile of the informal trader is concerned 96.8% have loans from friends and/or family to establish their businesses, 79% have no bank accounts and more than 95% cannot provide credit facilities. According to Ms Nkgadima the commercial structure of the informal sector comprises an estimated grocery chain stores, independent traders, spaza store and hawkers. The Sustainable Living Foundation estimates that for every 1.5 square kilometres of township there are informal businesses which equates to one enterprise for every ten households. The market serviced by these informal traders is defined as households earning less than R6 172 per month, i.e. 10 million households and in terms of people 34 million, which is 70% of population. Of this figure 50% are urbanised, 50% are unemployed, 93% adults have cellular phones and 21% have matric. This segment s as a spending power is estimated at R300 billion per annum which equals the spending power of the black middle class and the wealthiest 3% of South Africans. In order to reach this market segment it is important to connect and engage, tap into Stokvels, concentrate on activations at high traffic zones and finally remember that education remains an aspiration for the majority Panel discussion summary: Potatoes plays a major role in the informal sector s business activities and in the household and consequently in food security. Potatoes are increasingly becoming part of everyday meals, even in businesses such as shebeens. Potatoes are increasingly being purchased in processed form as it convenient and saves on preparing cost (e.g. oil for making chips) and time. Assist the informal trading sector through on the job training, empowerment and implementation of support programs in creating enabling infrastructure and the development of inclusive policies and by-laws that create a balance between the need to regulate the informal economy and the need to support livelihoods. The sector buys quality potatoes. Informal fresh produce traders primarily operate in close proximity of bus terminals, taxi ranks and train stations as it is most convenient for commuters. In order to put a proper plate of food on the table, the demand for quality large and large medium potatoes are on the increase in the townships. There is a need for producers to support the informal sector, taking into account the size and buying power of the informal market. Afrika-megastede Verstedeliking as drywer vir varsproduktegroei in Afrika / Africa mega cities Urbanisation as a driver for fresh produce growth in Africa [Panellists: Mr Ernst Janovsky (ABSA), Mr Jandri Duvenage (RSA Market Agents) and Mr Hannes Pienaar (Capespan) with Ms Hannah Edinger (introducer)] Ms Hannah Edinger, Associate Director of the company Frontier Advisory Deloitte, said that in terms of the sector specific drivers for Africa s growth agriculture still underperforms, notwithstanding the fact that it constitutes a large share of the economies of a number of African countries. As a result it remains a net importer of foodstuffs. On the positive side consumer goods usage is supported by rising gross domestic product per capita, strong population growth and urbanisation (50% of Africa s population will be urbanised by 2035) and a growing middle class. It is expected that consumer expenditure will almost double between 2010 and Another plus is the improvement in service delivery with the emphasis on transport, finance, trade and especially ICT services; with greater diffusion of mobile phones and personal computers. She added that one of the main challenges facing Africa is the fact that there is an over reliance on commodity exports by African countries, and that needs to change. Currently commodity exports account for 70% of merchandise exports in 74% of African countries. Although coal, oil and natural gas will remain prominent in Africa s business model in terms of investment, the manufacturing sector is becoming increasingly important as many countries are transitioning from resource exporters to consumer markets. According to Ms Edinger the five factors that will be driving Page 88 CHIPS September/Oktober 2015

8 Kommunikasie Communication the African consumer opportunity are unprecedented population growth, a growing middle class, Africa s youth, rapid urbanisation and leapfrogging technologies. She added that the main growth is expected to be in resource poor countries where the agricultural contribution is significant. The emerging mega cities in Africa will be Africa s urban hotspots offering massive business opportunities. In 2000 the number of African cities with populations exceeding one million were 33 and it is expected to increase to 64 by As far as South Africa is concerned Johannesburg / Pretoria and Cape Town is seen as two of the top African mega cities of the future by population. in the mega cities, albeit subject to numerous risks of which logistics and getting paid is paramount. The answer could lie in channelling payments towards food production and the establishment of infrastructure in the specific countries. The creation of jobs and wealth, upliftment through education, the establishment of entrepreneurs and productivity go hand in hand with the expansion of food production and the establishment of markets. Verbetering van die gehalte van aartappels die pad vorentoe / Improving the quality of potatoes the way forward As far as the ingredients for success is concerned she listed creating awareness for your product or service using local media opportunities, evaluation and selection with the emphasis on knowing your client s wants, needs and preferences and providing a shopping experience with a localised flavour. Ms Edinger concluded her presentation by saying that notwithstanding the continent s impressive growth and opportunities there are a long list challenges that will make penetrating the African market rather difficult, particularly as far as fiscal and monetary issues, transparency and compliance and lastly resources and infrastructure are concerned. However, the opportunities are there but it will be necessary to have a long term focus, adaptation and customisation of your business model and lastly the formation of an active bond with and investment in the communities and local governments. Panel discussion summary: Notwithstanding the establishment of the mega cities with a resultant changing consumerism, there will always be an informal sector catering for 70% of the consumers of these countries. These cities needs fresh produce markets based on the South African model as it will create job and business opportunities as well as contribute to food security and food safety. It is imperative that these markets be developed in partnership with local businesses and governments. South African fresh produce producers should consider the possibility of establishing farms in foreign countries in partnership with local farmers / landowners, especially in the southern African region. The aim should be to establish a southern African region from where foodstuffs could be exported to the rest of the world. Africa offers huge opportunities for fresh produce with the main emphasis currently being on the informal trade [Panellists: Mr Rudolf Badenhorst (Potatoes South Africa), Mr Rudi Heinlein (potato producer), Mr Etienne Booyens (Prokon), Mr Dirk Schlebusch (market agent), Ms Rosheda Muller (SAITA) and Mr Pieter van Zyl (retailer)] Mr Rudolf Badenhorst, Manager: Market Development of Potatoes South Africa reported that as far as consumer perceptions are concerned, a recent consumer research study have shown that most consumers regard potatoes and versatile and healthy. However, the association with quality does not feature high on the consumers agenda with size, appearance and freshness being the primary negative connotations. As far as market stocks are concerned he expressed his dismay at the large number of Class 3 potatoes on the market floor that impact negatively on the image, sales and price of market stocks in general. He lauded those potato producers who take special care to adhere to the quality specifications in respect of all classes and added that it would benefit the industry as a whole if all producers would follow their example. It is also important that potato CHIPS September/October 2015 Page 89

9 producers visit the fresh produce markets on a regular basis during their marketing season in order to see what their consignments look like on the market floor as well as how it compares with those of other producers. He added that aspects such as traceability, marking requirements, cultivar name on the bag corresponding with the content, sizing, packaging and packaging code are also playing a decisive role in the consumers perception of quality. As far as down-marking is concerned he mentioned that greening, mechanical damage, moth and browning are the biggest culprits. Mr Badenhorst said in conclusion that a study is to be conducted to holistically look at the industry s existing quality management with a view to introduce best practices in order to improve the quality of consignments arriving at the fresh produce markets. Panel discussion summary There is a market for all three classes of potatoes on the fresh produce markets. The consumer requires the quality of potatoes to last at least 14 days. Price is primarily the determining factor in respect of informal trader potato purchases. It is imperative that all potato producers comply with the official marking requirements because they are legally obliged to do so, in order to improve the image of the industry and the product as well as for traceability purposes. (At present about 95% of potato producers comply with the official marking requirements whereas it stood at 50% some four years ago.) The official dispensation allowing producers to attach the packing date code to the pallet expires on 31 December 2015, where after it will have to be stamped on each individual bag, Affixing the packing date code to the pallet makes traceability impossible. Buyers on the markets will only buy after he /she has drawn their own sample from a pallet. An alternative should be found to clean potatoes because washing potatoes is not conducive to extending the shelf life of potatoes. Because of consumer demand for clean potatoes, only unwashed potatoes produced in the Sandveld will be acceptable to the consumer as they buy with their eyes. Production regions should limit the marketing of their potatoes to when the quality thereof is at its best. (For example, do not market potatoes that have been lying in the soil for an extended period as it has a negative impact on price formation). Exceptional quality potatoes will always fetch a premium price. C Chairpersons of the discussion pionts Prof Johan Kirsten of the University of Pretoria and the fourth by Mr Deon van Zyl of the RSA Group Ernst Yzel herverkies as voorsitter Gawie Geyer Mnr. Ernst Yzel is onbestrede herverkies as voorsitter van Aartappels Suid-Afrika vir n verdere twee jaar termyn. Mnr Yzel het in sy aanvaardingsboodskap gesê dat die aartappelbedryf vir hom baie kosbaar en dat hy, soos in die verlede, alles in sy vermoë sal doen om die belange van die organisasie en die bedryf te bevorder. C Page 90 CHIPS September/Oktober 2015