1. CEO REPORT TO THE MEMBERS OF MILK SOUTH AFRICA ON 24 NOVEMBER 2016

2. MEETINGS IN 2016 Advisory Committees 2 x each Members
Audit & Risk Committee
4 x
Board of Directors
4 x
Members
1 x AGM
2 x GM
Executive Committee
5 x
Human Resources Committee
2 x
Statutory Measures Committee
3 x

3. STRUCTURAL CHANGES STATUTORY MEASURES COMMITTEE ESTABLISHED:
Supports the Office of Milk SA in decisions regarding implementation, administration and enforcement of the statutory regulations.
Members: CEO’s of MPO, SAMPRO and Milk SA.
“CUSTOMS DUTIES AND MARKET ACCESS” ESTABLISHED AS A PROJECT
Management Committee with Project Manager (De Wet Jonker) was established - effective from 2017.

4. STRUCTURAL CHANGES (Continued)
Research and development
R&D Administration + Secretariat by the MPO .
Milk SA Board
Dairy R&D Committee
Institutions of Interest to R&D in SA
Management Committee
Dairy Research Forum
SAMPRO structures
MPO structures

5. PROJECT ADMINISTRATION
The Policy for Funding of Statutory Projects and the standard contractual terms had been reviewed by Exco and the Board.
Internal Audit reports had been issued and tabled to the Board on:
The Commercialization Project.
The Dairy Quality and Safety projects by the DSA.
Skills and Knowledge Development in the Primary Industry Sector.
Planning for 2017 is in place and contracts will be signed soon.

6. ADMINISTRATION OF STATUTORY MEASURES
Inspections continued to add value:
Substantial additional levy income due to understated returns, calculation errors, misinterpreted regulations, etc.
It adds value to the integrity of industry information.
Inspections will in future play an even more important role, when more information variables are required to submit monthly.
Interest on late payments indeed helps with timeous submissions.
The arrangement with DAFF helps a lot with capturing potential importers.
The Statutory Measures Committee provides real support and comfort to the Office with important decisions, especially i.t.o. legal action.
The Office of Milk SA submitted suggestions to SAMPRO, for the improvement of regulations in the future.

7. ENVISAGED PROPORTIONATE LEVY EXPENDITURE, 2014-2017

8. 2016 Projection and 2017 Draft Budget: Levies and Ministerial funds

9. 2016 Projection and 2017 draft budget: Levy and Ministerial funds

10. Communication Website The Dairy Mail Milk Essay General meetings
Podcasts on project progress
Project reports
Finances
The Dairy Mail
R&D Column by Dr Heinz Meissner
Consumer Education articles by Mrs Christine Leighton
Industry information features (Dairy Digits & LactoData).
Milk Essay
General meetings
MPO and SAMPRO (as members of Milk SA)

11. TRADE AND INDUSTRY CHAMBER OF NEDLAC
A few WC milk producers approached organized labour with complaints and suggestioins about the dairy industry, for example:
Industry is deteriorating.
Work losses must be curbed.
Financial pressure of milk producers.
Imports too high.
Lack of industry information.
Area premiums and volume premiums should be abolished.
Organized labour took the matter to NEDLAC TIC and Milk SA was invited by the Business component to participate in a meeting on 14 November.
Milk SA made a presentation on the performance of the industry.
Labour had a highly emotional plea for more progressive transformation, higher import tariffs, to end unfair profits, to cap the size of farms, etc.
The producers, supporting the above, complained about MPO membership fees, price structures of buyers, tariffs and collusion.
Government suggested that labour should not use the dairy industry to promote their agenda.

12. TRADE AND INDUSTRY CHAMBER OF NEDLAC (Cont.)
The matter was discussed in NEDLAC last week and proposed to Milk SA that a Dairy Sector Task Team be established to review the dairy sector.
The CEO’s of Milk SA, MPO and SAMPRO will soon meet with Business to clarify.