In terms of the Agricultural Product Standards Act, the South African Meat Industry Company (SAMIC) has announced that the following fees, as approved by the members of the Red Meat Industry Forum, will be effective from 1 January 2019:

Lees dit in Afrikaans. 

  • Abattoir service fees: The abattoir grade service fee per month (VAT excluded) will be R4 665.22 for a high throughput, and R2 969.00 for a low throughput, abattoir.
  • Fees for the auditing of quality indication marks:
Type of quality indication audit Service fee per audit (VAT excluded)
Farm audits – Woolworths R3 875.54
Farm audits – All other QI Marks R1 179.14
Feedlot audits R2 891.14
Abattoir audits R2 289.80
Deboning plant audits R2 289.80
Trade outlet audits R560.68
Franchise audits R560.68
Wholesale audits R560.68

Official km travelled for audits = R5.50/km

  • Inspection fee for imported meat: R600.00/audit.

Agriculture and economic growth

The household expenditure for consumers has increased which supports the market for domestic agricultural products, according to ABSA Agri Trends.

Equally important for primary producers is the fact that the secondary industrial sector’s growth increased by 4,5% in the third quarter. The total quarterly nominal GDP growth for South Africa reached 2,2%.

Agriculture recovered after a dismal performance due to the previous season’s drought and other contributing factors including bio-security issues and a strong Rand. Second to the manufacturing industry (7,5%) agriculture recovered by a growth rate of 6,5%.

Policy uncertainty, recent announcements regarding land policy, and insufficient rainfall during the planting of grain and oilseed crops weighs on the sector. Food security in terms of our capacity to provide for our own needs and to avoid forming a dependency on food imports needs to be a priority. A country that exports food ensures affordable food for the population. For this, we need to improve our logistical infrastructure and out access to markets and the latest on-farm technology. The most urgent need is for rain to fall so that the crops can be planted.

Certain production areas in the summer rainfall region have received less rainfall than during the very dry 2015/2016 production season. – RPO Newsletter