AGRIBEE INDABA 67 December 2005 On behalf of

AGRIBEE INDABA 6/7 December 2005 On behalf of: S A Agricultural Processors Association & S A Chamber of Business & Multinationals By: 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