Establishment of levies on milk and other dairy products and the determination of guideline prices in respect of milk and other dairy products (No. R. 1220 of 2005)

8 No. 28329 GOVERNMENT GAZETTE. 23 DECEMBER 2005 No. R. 1220 23 December 2005 MARKETING OF AGRICULTURAL PRODUCTS ACT, 1996 (ACT No. 47 OF 1996) ESTABLISHMENT OF LEVIES ON MILK AND OTHER DAIRY PRODUCTS AND THE DETERMlNATION OF GUIDELINE PRICES IN RESPECT OF MILK AND OTHER DAtRY PRODUCTS. I, Angela Thokozile Didiza, Minister of Agriculture, acting under sections 13 and 15 of the Marketing of Agricultural Products Act, 1996 (the Act) hereby establish the levies on milk and other dairy products as set out in the Schedule hereto; determine the guideline prices for milk and other dairy products as set out in the Schedule acting under section 14 of the Act entrusts the implementation, administration and enforcement of the levies referred to under (a) to Milk S4 an association incorporated under section 21 of the Companies Act, 1973. Minister of Agriculture STAATSKOERANT, 23 DESEMBER 2005 No.28329 9 Customs Tariff Classification Product description Milk and cream, not cdncentrated nor containing added sugar or other sweetening matter Milk and cream, concentrated or containing added sugar or other sweetening matter Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing flavoured or containing added fruits, nuts or cocoa 04.01 04.02 04.03 added sugar or other sweetening matter or SCHEDULE I Levy (Vat exclusive) IC per kg 9,6c per kg 3,6c per kg , I , , Definitions 04.04 04.05 04.06 1. In this schedule: Whey, whether or not concentrated or containing added sugar or other sweetening matter; Products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included Butter and other fats and oils derived from milk, dairy spreads Cheese and Curd 2,9c per kg IO,% per kg 14,4c per kg “consumers” means the end users of milk “retailers” means persons that sell milk directl) to consumets “milk producer” means a person that prodqces milk by the milking of cows, goats or ’ sheep; “the Act’’ means the Marketing of Agricu\iural Products Act, 1996 {Act 47 of 1996). 2. The products subject to the levies and the levies are as follows: 4. The levies set out under 2, shall be paid by the persons listed in 3 to Milk SA not later than 15 days after the month in which the actions that created the levy liability, took place. 5. The payment of levies shall be accompanied by the levy return form as prescribed by Milk SA. Payment and levy return forms shall , (a) when forwarded by post, be addressed to: Milk SA PO BOX iwa Silverton 01 27 10 No. 28329 GOVERNMENT GAZETTE, 23 DECEMBER 2005 (b) when delivered by hand, delivered to: Electronic Payment should be made to: Milk SA Yorkcor Park Building Suite 21 I Watermeyer Street Val de Grace Pretoria Milk SA ABSA Bank Branch: Brooklyn Code: 634 156 ACC. NO. 405 895 6897 The return form can electronically be conveyed to Milk SA at: admin@mAksa.co.za 6. The statutory measure described in this schedule shall (a) (b) The purpose of the levies set out under 2, is to finance actions that are necessary to further, in respect of the dairy industry, the objectives set out in section 2(2) of the Act and it is as follows: apply within the geographical area of the Republic of South Africa; come into operation on the date of publication hereof and shall lapse after four years from the date of implementation 7. a) Consumer Education From a national point of view and to promote the viability of the dairy industry, consumers should be informed of the health and nutritional advantage of milk and other dairy products. lnformed consumers wilf not only contribute to the national well-being in respect of nutrition and health, but especially also to the viability and sound development of the dairy industry. The education will be conducted in such a way that it will not erode the marketing activities of any firm in the dairy industry that are aimed at differentiating its products from that of competitors. - b) Improvement of the quality of milk and other dairy products From a nutritional and health point of view milk and other dairy products have an important role to play in the national household. The products are perishable and may pose a risk to consumers. As a result, actions are required to promote the quality of milk and other dairy products and the compliance with legal standards. Such actions will contribute significantly to the viability of the dairy industry because it will increase certainty in the market regarding the quality of the products and that will impact positively on the size of the market. c) Statistical and other information regarding dairy industry Statistical information and other information regarding the dairy industry in South Africa and internationally, and analysis of such information is required to promote market access in respect of the dairy industry, the efficiency of marketing of milk and other dairy products, and the viability of the dairy industry. The information regarding the dairy industry and the analysis thereof wilf make market signals visible for mole players in the indusfry and for Government institutions and wilk contribute significantly to the achievement of the relevant objectives of the Act. , ' , , STAATSKOERANT, 23 DESEMBER 2005 No. 28329 11 d) Research and Development Research and development are required to promote not only the, viability of the dairy industry but also to promote the achievement of the other objectives of the Act as set out in secfion 2(2) of the Act. Research is fragmented and action is required to ensure co-ordination and that research and development are functional in respect of the strategic direction of the industry namely broadening of the market for milk and dairy products, improvement of international competitiveness of the South African industry and empowerment of previously disadvantaged individuals. Furthermore action is required to promote the practical application of local and international research and development in South Africa. e) Empowerment of previously disadvantaged individuals The viability of the dairy industry is significantly influenced by the extent to which previously disadvantaged individuals are empowered. Empowerment will not only impact positively on the viability of the industry but also the other objectives of the Act. The focus of the empowerment to be financed form the income from the levies wjll be the facilitation of the transfer of knowledge and skills. Such action will also not only contribute to the viability of the dairy industry but also to the other objectives of the Act as it will promote market access, efficiency of marketing of dairy products and export earnings. The requested levies can in no way impact negatively on any of the matters set out in section 2 (2) and section 2 (3) of the Act. Collectively, the requested measure will create a more viable dairy industry that will enhance the matters set out in section 2 (3) of the Act namely food security, number of employment opportunities and fair labour practice. 8. The expenditure of the income from the levies during the period in respect of which the levies exists, shall be determined in such way that: (a) not more than 10 per cent of the income from the levies be spend on the administration of the (b) approximately 20 percent of the income ftom the levies is spend on empowerment of measures described in this schedule, and previously disadvantaged individuals. 9. The collection of the levies and the use of the income from the levies by Milk SA, shall be annually subject to audit by the Auditor-General. IO . Confidential information of any person subject to the statutory measure, obtained by Milk SA through the implementation, administration and enforcement of this statutory measure, shall be dealt with by Mik SA in accordance with section 23 (2) of the Act. 12 No. 28329 GOVERNMENT GAZETTE. 23 DECEMBER 2005 Guideline prices Customs Tariff Product description Classification 04.01 Milk and cream not concentrated nor containing added sugar or other sweetening matter Milk and cream, concentrated or containing added sugar or other sweetening matter Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruits, nuts or cocoa Whey, whether or not concecitrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter not elsewhere specified or included Butter and other fats and oils, derived from milk, dairy spreads 04.02. 04.03 04.04 04.05 04.06 Cheese and Curd The guideline prices for milk and other dairy products shall be as follows: Guideline Price Rlkg 1,79 17,40 6,85 5,28 18,56 26,OO No. R. 1220 23 Desember 2005 WET OP DIE BEMARKING VAN LANDBOUPRODUKTE, 1996 (WET No. 47 VAN 1996) INSTELLING VAN HEFFINGS OP MELK EN ANDER SUIWELPRODUKTE EN DIE INSTELLING VAN RlGLYNPRYSE MET BETREKKING TOT MELK EN ANDER SUIWELPRODUKTE Ek, Angela Thokoziie Didita, Minister van Landbou, handelende kragtens artikels 13 en 15 van die Wet op die Bemarking van Landbouprodukte, 1996 (die Wet) (a) ,stel hiermeedie heffings op melk en ander suiwelprodukte in, soos uiteengesit in die meegaande Bylaag; (b) stel hietmee die riglynpryse vir melk en ander suiwelprodukte vas soos uiteengesit in meegaande Bylaag; (c) handelende kragtens artikel 14 van die Wet, vertrou die inwerkingstelling, administrasie en toepassing van die heffings waarna in (a) veNvys word, toe aan Melk SA, ‘n vereniging ingelyf kragtens artikel 21 van die Maatskappyewet, 1973. Minister van Landbou