Nufarmer November / December 2017 NUF NOV.DEC 17 | Page 7

Nufarmer Africa ARC-AEI: FOOD SECURITY T he biggest challenge facing South Africa is to provide in the food needs of all its citizens on a daily basis. A large percentage of people are unemployed and living on or below the breadline. These socio- economic realities place a huge responsibility on the shoulders of South African farmers (both small- scale and commercial) to supply in the needs of the populace. One of the many opportunities to grow markets, turnover and profits, and ensure food security is by adding value to farm produce through the informed application of agro-processing techniques, thus ensuring higher output and reduced losses. Options need to be selected carefully based on sound information and knowledge of the opportunities presenting themselves on a regular basis seen in the light of the strengths and weaknesses of individual farms and communities. What is meant by the expression “agro processing”- it includes all processes that use agricultural products AGRO processing an answer? (seen as the raw product/ material input base) to produce food products as well as industrial end products. I.e. ox hide (agricultural raw product) can be processed into leather upholstery for the motor car industry. The expression “food (agro) processing” can be defined as only concentrating on the processing of agricultural products (for instance wheat) into food (in this case bread) for human consumption. Food is produced from four main sources, namely animals, poultry, fish and plants (includes fungi such as mushrooms). Through processing, more complex foods are made from these four main source sources. Most food products available to consumers have been processed in some way or other, such as cleaning produce before it is packed in plastic- or net bags. All forms of processing have an effect on the raw material and can change the colour, flavour, texture, appearance, aroma as well as the nutritional value of the final product. Some processing methods only create a temporary change, in other words a change that can be reversed, such as melted chocolate that will solidify again on cooling. Most processing however have a permanent effect on the food product and cannot be reversed again. Agro-processing can thus be defined as a set of techno economic activities carried out for conservation and handling of agricultural produce to make it useable as food, feed, fibre, fuel or industrial raw material. The concept “Agro-processing” is no longer just a buzzword in South Africa, the application and implementation thereof is acknowledge as one of the key instruments to enable growth in the agricultural sector and more specific the development of rural areas, and to ensure food security for the general populace. By Theresa Siebert of the Agro-Processing division of the ARC- Institute for Agricultural Engineering. Tel. [phone] e-mail: [email protected] Advertorial The Agricultural produce agents council (APAC) M LOOKING AT THE FARMER’S INTEREST ON THE MARKET any fruit and vegetable farmers are not aware of the checks and balances that exist to protect their financial interests when they supply the local fresh produce markets. South Africa is unique in the world with its system of fresh produce commission markets and the Laws that protect farmers supplying those markets. There are few sectors in agriculture – if any - that are as competitive as the sales floor on a fresh produce market. Walk on to the floor of any of our markets on a busy day and observe the frantic activity taking place. Not to mention the noise caused by humans and machines and what looks to the inexperienced eye like a scene of utter chaos. This apparent chaos and noise is actually the heartbeat of a fresh produce market because this is where buyers and sellers are interacting, and they don’t always do it quietly! On the one hand the buyer is looking for the keenest prices while the salesperson is pushing to get the highest price he can for his farmer. What sets our markets apart from any others in the world is that all 22 of them operate as commission markets. The produce on offer belongs to the farmers and the fresh produce agents (also often named the market agents) have been entrusted to get the best price possible on the day. In this manner prices are discovered (established) by the laws of supply and demand every morning of the week. The fresh produce agent is paid a percentage commission, as agreed with the farmer, for his services. In business when one party acts on behalf of another in a financial capacity, it is normal for there to be legal protection for the client. Banks, estate agents and l awyers are just three examples where laws specific to each sector ensures the safe handling of the client’s money and provide for recourse/protection for the client in the event of malpractice or non payment. The Agricultural Produce Agents Act, Act 12 of 1992, regulates the fresh produce agents in how they must handle the farmers’ produce and money, when farmers must be paid and what protection the farmers have if there are problems with payment. This specific legislation is unique in agriculture anywhere in the world. There are a few key points of which every farmer should be aware off: > Act 12 of 1992 is administered by the Agricultural Produce Agents Council (APAC) on behalf of the Minister of Agriculture, Forestry and Fisheries; > Being a Statutory Body, APAC consists of a Council of 18 appointed members and has a full-time staff compliment of the Registrar, Deputy Registrar, Compliance Officer, Stock Auditor and Administrative Officer; > Amongst APAC’s functions are the registration of all fresh produce agents and issuing them with a Fidelity Fund Certificate which is their license to trade and act on behalf of farmers in the promoting, marketing and selling of the fresh produce. It is a criminal offence for someone to act as a fresh produce agent without being registered with APAC. Visit the APAC website for a list of registered fresh produce agents. Producers who support persons who are not registered, face the risk of being left in the dark when things go sour; > APAC also administers the Fresh Produce Agents’ Fidelity Fund, as this fund plays a vital role towards re- inbursing the farmer, within the framework provided by the Act, if a fresh produce agent is found guilty of theft or misconduct; > APAC checks the trust reconciliations of fresh produce agents on a monthly basis; > APAC conducts stock counts on five to eight fresh produce markets per month with the aim to verify that the fresh produce received by a fresh produce agent is reconciling with the Market IT system – during this process stock shortages and surpluses are investigated; > APAC conducts ad hoc site Nufarmer Africa | November/December 2017 audits of the agency’s trust accounts as all farmers’ money must be deposited into and paid out of the agency’s trust account; > APAC takes action against fresh produce agents who transgress Act 12 of 1992 and if found guilty by the Tribunal, withdraws their Fidelity Fund Certificate; thereby preventing them from trading anywhere in the Country as a fresh produce agent. > The Act requires that a fresh produce agent: a) Advises the farmer in writing within three days after the consignment was received, of the quantity of produce sold, prices achieved, quantity of unsold produce, etc. Thereafter weekly system generated reports must be provided to the farmer; b) Pay the farmer within five (5) working days after the produce has been sold; > If a farmer does not receive his money within the specified time, he can contact APAC with the necessary supporting documentation in order for the matter to be investigated. However, the support of farmers is essential for the system to work and the following two steps should be undertaken: a) An ‘early warning’ communication to APAC as soon as a payment is overdue, b) Reduce further risk by discontinuing any further consignments until the matter is resolved.” By Lizel Pretorius - APAC 7