AGRIBEE INDABA6/7 December 2005

On behalf of:

S A Agricultural Processors Association

& S A Chamber of Business

& MultinationalsBy: Jannie de Villiers

Executive Director

Introduction

• Comments – 20 December 2004• Consulted amongst members• Represented at Steering Committee• Presentation at Steering Committee

on 1 December 2005

Codes of Good Practice

• Outstanding codes create a problem

Ownership of Shares

• Shares of listed companies not in our control

• Shares owned by pension funds and trusts

• Shares transferred to staff – loans and voting

Procurement

• Link to land targets• Some processors 70% of cost is raw

materials• Profile of emerging farmers (Preference

towards animals)• Land claims and low profitability hinders

transformation

Procurement (cont)

• Farmer sells 30%, not complying in next year

• Droughts/Net importers• Structural change to traders

Monitoring

• Capacity to be ready• Representation on Council• Annual audits: Costly• Penalties for non-compliance• Directives (like SARS)• Scorecard for Government deliverables

Funds

• Financing cost in competition with other sectors

• CSI/Enterprise development the 5% of EBIT needs clarification

Cost of doing business in SA

• Procurement• Monitor/Audit• Admin burden

Impact of BEE on SMME’s

• Regional constraints• Admin burden• Audit requirements• One person owners

Multinational companies

• Forum formed• Own submission• Ownership problems• Level playing field

CONCLUSION

• Support for process• Clarity before we start: K I S• Way forward: Outline the process post

Indaba