Page 13 - CON Boardpack July 20200708 Final_Neat
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8.7  CEO Summary

                  The meeting noted  that  SAPPO  had received a request for  a grace
                  period in respect of the statutory levy and that the reserve fund be used
                  to pay it back to the producers.

                  Johann Kotzé had liaised with the NAMC on whether to grant a grace
                  period regarding  the statutory levy.    The outcome was that  a grace
                  period cannot be granted as it has to be cancelled and re-applied for.
                  This could be a lengthy and cumbersome process and also posed a big
                  risk.

                  Reserve Fund
                  The reserve fund, as projected on the balance sheet, was incorporated
                  into a budget. If it was used for payments to producers, the budget will
                  have to be revised.  The Audit Committee decided that SAPPO should
                  be  sustainable  in terms  of working capital and therefore  needed  3
                  months’ funds as a reserve.  That option will be depleted if it is paid out.

                  Peter Mockford agreed with Johann Kotzé that it would be too risky to
                  cancel the statutory levy.

                  ASF
                  SAPPO had learned of the ASF outbreak in the Eastern Cape for the first
                  time when someone sent a clip to Johann Kotzé on social media.  He
                  contacted DALRRD and Dr Maja, who confirmed the outbreak and said
                  the reason why the industry had not been informed earlier was that the
                  Minister had not yet informed the OIE of the outbreak.

                  A technical meeting was held on Monday morning where the members
                  assumed that the outbreak had started at the end of February through
                  March.   When pigs  continued  to die,  farmers  went to  the  state
                  veterinarian who took a sample and informed DALRRD that the test done
                  on 3 May had been positive.  Three villages in the Butterworth area, also
                  in the  vicinity  of Centani,  were infected.    The restriction  on pigs  was
                  immediately implemented.

                  It was made clear that no compensation would be paid due to past
                  corruption.  ASF was now seen as an endemic.  SAPPO contacted the
                  local government  and organised  agriculture  and indicated  that the
                  industry was prepared to help them with the disposal of the pigs.

                  After a technical meeting with DALRRD,  it  was  decided that  Dr  Peter
                  Evans and Johann Kotzé would visit the Eastern Cape the following week
                  to find ways of assisting government.





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