Page 13 - CON Boardpack July 20200708 Final_Neat

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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