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2015 hortgro G row ing Fru it I Q hortgro Growing F ruit IQ ANNUAL REVIEW 2015 Annual group review of the range of functions rendered by HORTGRO and related industry sub-structures. Supporting the horticultural grower to be successful in a globally competitive environment. OUR VISION To enhance the sustainability of producers in a globally competitive market under the motto ‘Leadership through Unity’ PHILOSOPHY Unity and Co-operation INDUSTRY VISION To be the preferred supplier anywhere in the world HORTGRO ANNUAL REVIEW 2015 2 / 64 BOARD of Directors The focus areas that HORTGRO has been facilitating through the years have grown to include the following: hortgro - Effective Communication within all target audiences Industry Information and Statistics Market Development and Consumer Education Research, Technical Transfer, Plant Improvement and Certification - Trade and Market Access / Phytosanitary protection of the industry - Transformation which includes Education, Social and Economic Development, and Land Reform. 3 / 64 LIST OF CONTENT Thoughts from the CEO 5 Our main members SAAPPA SASPA DFTS 8 9 11 13 Management & Administration 15 Research, Science and Technology 17 Trade & Markets Trade & Policy Market Access Technical Services 21 24 26 28 Support - 31 32 34 36 Services Information & Logistics Deciduous Fruit Development Chamber Training, Corporate & Social Investment Alternative Crops Cape Flora SA Pomegranate Association of SA SA Berry Producers’ Association SA Cherry Growers’ Association SA Honeybush Tea Association SA Olive Industry Association SA Pecan nut Producers’ Association 39 40 41 42 43 44 45 46 Industry - 47 48 50 52 Service Entities Culdevco FruitFly Africa SAPO Trust Communication 55 Boards and Websites 57 HORTGRO ANNUAL REVIEW 2015 4 / 64 THOUGHTS from the CEO Anton Rabe CEO - HORTGRO e continue with the approach followed in recent years where we provide an overview on the spectrum of activities dealt with within the broader HORTGRO-group. We trust that members and other stakeholders will find this report both informative and interesting. W Aangesien dit weens koste en spasie beperkings nie moontlik is om die verslag in beide die twee hoof bedryfstale (Afrikaans en Engels) te publiseer nie, het ons probeer om die verslag sover as moontlik tussen die twee hoof bedryfstale, te balanseer. Indien daar 'n spesifieke seksie of gedeelte is wat lesers graag in die ander taal wil sien, skakel gerus. Due to costs constraints, it is not possible to provide all content in both of the main industry languages. We therefore tried to balance the content. Should anybody require a translation of a specific section in this report, please feel free to revert to HORTGRO. Na bekommernis weens hoë voorraadvlakke van kernvrugte in die Noordelike Halfrond asook die Russiese verbod op Europese Unie-produkte, het die 2014/15-seisoen beter as wat aanvanklik verwag is, presteer. 'n Gemiddelde kernvrugseisoen is deur 'n goeie steenvrugseisoen gerugsteun met die hoogste uitvoervolumes ooit van nektariens, perskes en pruime. Appelkose was die enigste uitsondering met onder-gemiddelde resultate. Die besluit wat vroeg in die seisoen geneem is om nie kanse met klein vrugte (veral Bon Chretien en Abate Fetel) te waag nie, het weereens ook die waarde van 'n goeie bedryfsinligtingstelsel en samewerking bewys. Die patroon van die laaste dekade, dit wil sê met groei in nuwe markte (Afrika, en die Midde- en Verre Ooste) en die handhawing van volumes in die tradisionele Verenigde Koninkryk- en Europese Unie-markte, is voortgesit. Die VK-mark het egter ook 'n besonderse groei-jaar vir beide appels en pruime getoon. Daar word voorspel dat die meer egalige verspreiding van die Suid-Afrikaanse aanbod in die komende jare ook voortgesit sal word, wat verder tot die differensiëring van markrisiko's sal bydra. At this stage (November 2015) the crop outlook for both pome and stone fruit look promising, but some concerns have been expressed regarding the availability of water in some production regions. This may impact on fruit size, but with good water management, producers seem confident that they should be able to raise a good crop. The market outlook, given the weaker Rand, also looks favourable, but given the high percentage of input costs that are linked to exchange rates, higher than inflation increases can be expected on most production input items. FruitSA (FSA) as a fruit umbrella body is bedding down nicely with Dr Konanani Liphadzi as CEO and Dr Mono Mashaba as Market Access Specialist, focussing on the complex national and international issues which need attention on a strategic level. The role of the Fruit Industry Value Chain Round Table (FIVCRT) within FSA in conjunction with the Department of Agriculture, other national departments (Labour, Land Reform and Trade and Industry), the Commission for Conciliation, Mediation and Arbitration (CCMA) and labour working toward a social accord is also progressing well. This action will ensure the re-alignment of resources and focus on the core priorities of the different social partners as encapsulated in the National Development Plan (NDP), the Agricultural Policy Action Plan (APAP) and the Fruit Industry Social Compact (FISC). The following five areas are receiving attention via dedicated working groups: - Job creation & Worker Welfare - Transformation - BEE and enterprise development - Research & Development (including bio-security issues) - Trade & Market Access - Resources (land, water and infrastructure) HORTGRO also continued to participate within the Laborie Dialogue Initiative. The THOUGHTS FROM THE CEO 5 / 60 objective is to develop a framework through which multi-stakeholder social dialogue platforms can be established on a national, provincial and regional level to address common rural challenges. A formal memorandum of understanding (MOU) has been agreed between HORTGRO, VinPro and the Food and Allied Workers Union (FAWU) as initial participants in June 2015 with the objective to work toward true multi-stakeholders platforms. Other stakeholders such as the CCMA, Agricultural Workers Empowerment Trade Union Council (AWETUC) and non-governmental organisations have already joined or expressed interest in joining the discussion. Dit is uitdruklik deel van die ooreenkoms dat géén werkgewer/werknemer kwessies soos vergoeding en diensvoorwaardes op dié vlak aangespreek sal word nie. Die volgende kwessies word wel hanteer met die doel om 'n bemagtigende omgewing te skep waardeur die landelike ekonomie tot voordeel van alle belangegroepe verbeter kan word: - Die spektrum van kwessies rondom behuising en eienaarskap, voorsiening van alternatiewe behuising by aftrede en waar die werknemer sy behuising verloor in gevalle waar die diensooreenkoms om een of ander rede beëindig is; - Sosiale- en welvaartskwessies in landelike gemeenskappe; - Handelskwessies, insluitende marktoegang en mark-ontwikkeling; en - Die nie-nakoming van arbeidswetgewing, meganismes om pro-aktief konflik op te los, opleiding en vaardigheidsontwikkeling en algemene bewustheid onder alle belangegroepe. Producer-support was at an all-time high with 95% of pome, and 97% of stone fruit producers that voted, voting in favour of the measures. In hierdie opsig sal die Sustainability Initiative of South Africa (SIZA) ook 'n belangrike rol moet speel. SIZA het ook die afgelope jaar 'n nuwe wending geneem met die eerste voltydse bestuurder wat aldaar aangestel is. Die uiteindelike doelwit is om die SIZAprogram as 'n volwaardige aparte regsentiteit te vestig. Die elektroniese data-platvorm is met die skrywe hiervan gereed en sal 'n groot bydrae lewer om sigbaarheid aan die verskillende belangegroepe regdeur die waardeketting te gee. Dit sal ook help om algemene knelpunte en probleme te identifiseer sodat die vlakke van nakoming van wetgewing en etiese norme en standaarde (wat in elk geval deur die plaaslike en internasionale handel vereis word) pro-aktief aangespreek kan word. In dié opsig is dit belangrik dat SIZA-lede hulself kan onderskei en dat die sosiaalmaatskaplike-debat deur feite en statistiek gedryf word, en nie deur vae aantuigings nie. The re-positioning of the commodity level membership within the organised agriculture structures is continuing with an application to pool resources on a national level within the Agri Sector Unity Forum (ASUF) and on provincial level within the Unity Platform established in the Western Cape. It is hoped that similar initiatives could develop in other regions. Producers are encouraged to continue their support on grassroots level by joining regional and provincial structures of their choice. It is vital that the organised agri-sector participate fully and effectively in such structures to ensure focus on rural issues in the multi-stakeholder dialogue processes going forward. HORTGRO successfully facilitated a levy application process for the South African Apple and Pear Producers' Association (SAAPPA) and the South African Stone Fruit Producers' Association (SASPA) based on a comprehensive strategic framework developed to focus industry resources and functions for the next four years (2015 to 2019). Producer-support was at an all-time high with 95% of pome, and 97% of stone fruit producers that voted, voting in favour of the measures. HORTGRO ANNUAL REVIEW 2015 6 / 60 Die volgende statutêre heffings is die afgelope jaar geadministreer: "gearing of funds": Stat levies = R78 mill/User-pay external funding = R150 mill Total funds under management = R230 mill Apples (Fresh Fruit) Export and Domestic Volumes 3.2 cents per kg Apple Concentrate Export and Domestic Volumes R7.00 per fresh ton Pears Export and Domestic Volumes 3.2 cents per kg Apples & Pears Export Market Development 30 cents per export carton Apricots Export and Domestic Volumes 11.0 cents per kg Nectarines / Peaches* Export and Domestic Volumes 7.5 cents per kg Plums Export and Domestic Volumes 9.5 cents per kg Apricots Export Market Development 50 cents per export carton Nectarines / Peaches* Export Market Development 50 cents per export carton Plums Export Market Development 50 cents per export carton * including cling peaches The 2014/15 financial year is the last of the current four year levy cycle for both SAAPPA and SASPA. Die hernuwing en moontlike uitbreiding van die vrugtevliegheffing- en -program via FruitFly Africa wat in etlike streke ook statutêr gevorder word, geniet tans aandag. 'n Onafhanklike koste-voordeel analise word tans gedoen op grond waarvan produsente versoek sal word om maatreëls vir 'n nuwe siklus te ondersteun. Intussen word die memorandum van verstandhouding met die departement van landbou ook vir 'n nuwe drie jaar periode tot 2018 hernu. Other strategic issues that will receive attention in the coming year include transformation and representation on all levels in the industry, rebranding of HORTGRO and its substructures, increased capacity and focus on communication and information exchange within and around the industry, the objectives, focus and contracting relating to breeding and evaluation of new cultivars, and maximising external funding. THOUGHTS FROM THE CEO 7 / 60 HORTGRO ANNUAL REVIEW 2015 8 / 60 SA APPLE AND PEAR PRODUCERS' ASSOCIATION - Chairman’s Review he 2015 apple and pear season was one that was started with trepidation with messages of over-supplied markets, high stock levels and general economic unease being received from all the main markets. The robust nature of the South African pome industry, coupled with disciplined behaviour from producers and exporters reacting on accurate information supplied by industry structures, however allowed apple and pear producers to limit the potential negative impact of these messages. A more positive year was therefore experienced that originally anticipated. T Nicholas Dicey SAAPPA Chairman The market development portfolio within the industry has in this regard expanded its initial mandate of market awareness. At the time of writing (week 42) apple export volumes showed a healthy increase (+19%) from the previous year and are back in line with long term averages as expected. Pear exports were however down by 7% on the previous year's volumes, but still in line with the long term average export volumes. The South African pome industry continued to supply markets throughout the world and 2015 saw the introduction of China as a receiver of South African apples with the market being opened up by tireless work from officials in the industry and various state departments. The market development portfolio within the industry has in this regard expanded its initial mandate of market awareness, to one where it is actively involved in the developing and opening up of new markets, including all the important maintenance of existing markets in ensuring maximum return on investment for all SA APPLE AND PEAR PRODUCERS' ASSOCIATION 9 / 60 growers. Technical research and transfer continued to be allocated the lion's share (60%) of SAAPPA's budget in the 2015 season, with transformation also playing a major role taking up 20% of the budget within SAAPPA activities. Additional functions of representation on various agricultural platforms, trade inputs and general industry administration complemented the main activities in ensuring that SAAPPA continued its role in creating an enabling environment for all apple and pear producers to thrive on in a highly competitive and demanding sector. The next four years sees the industry starting a new statutory levy cycle, and after consultation with the industry at large, focus will continue to be placed on aforementioned activities. SAAPPA as part of the greater HORTGRO structure continued its commitment to transformation in specifically the apple and pear industries, but also in the greater agricultural sector by engaging on all levels within the value chain. The role that the Deciduous Fruit Development Chamber (DFDC) will play in this field as implementing agents, was highlighted by various workshops between the executives of these organisations resulting in a memorandum of understanding (MOU) and a service level agreement (SLA) being drawn up and implemented thus ensuring a close working relationship. The many roles that need to be played by an industry structure such as SAAPPA needs a strong team and I am proud to say that in SAAPPA we have one of the best. Not only are Anton Rabe and his team held in high esteem by fellow local agricultural organisations, but also by those in the international arena and I thank them for the tremendous effort they put in in ensuring that the ride is so much smoother for us as producers. ... SAAPPA continued its role in creating an enabling environment for all apple and pear producers to thrive on in a highly competitive and demanding sector. I would also like to thank my fellow board members for their contribution not only around the boardroom table, but also in the areas where they serve as constituency representatives in ensuring that SAAPPA remains at the forefront as the body that can add value to the apple and pear grower. Finally I would like to thank Gys Du Toit, who after 15 years has retired from the board, for his time and immeasurable contribution towards the deciduous fruit industry while serving on the SAAPPA board and wish him well in his future ventures. The 2016 season will inevitably pose many challenges to all apple and pear producers, but I believe the progressive, mature and adaptable nature of our industry will help us rise above these challenges and I wish everybody a prosperous and successful 2016. HORTGRO ANNUAL REVIEW 2015 10 / 60 SA STONE FRUIT PRODUCERS' ASSOCIATION - Chairman’s Review he stone fruit industry (comprising of apricots, peaches, nectarines and plums) accounts for 34% of total pome and stone fruit plantings that produces on average 282 000 tons of fruit with a value of approximately R2 billion per annum. The majority (80%) of the earnings however is generated by the fresh fruit sector (local market and exports). The direct primary employment by the stone fruit industry is approximately 21 700 (permanent equivalents), rendering this a very important component within the South African fruit industry and larger agricultural sector. T Pieter de Necker SASPA Chairman The industry has also invested in the diversification of product range to extend the South African stone fruit market offering. In general the 2014/15 stone fruit season can be labelled as exceeding expectations both in terms of quality and volumes. The total SASPA levy income subsequently also increased with approximately 14% compared to the previous season. The main factors contributing to the growth in production volumes, were more favourable weather conditions, an increased rate of plantings and the number of young orchards coming into production. The total area planted to stone fruit (including apricots and cling peaches of which the majority is processed) decreased with 3% over the past five years. The decline in total area planted can be attributed to cling peaches and apricot plantings that respectively decreased with 19% and 17%. The fruit kinds that have shown the largest increase in plantings over this period is dessert peaches (+20%) and plums (+18%). The industry has also invested in the diversification of product range to extend the South African stone fruit market offering such as white and yellow flesh peaches and nectarines and different plum colours (yellow, red, black) harvested at different intervals to ensure a more balanced supply throughout the season. During the 2014/15 stone fruit season exports, peaches and nectarines increased with 27% respectively compared to the previous season, whilst plum exports increased with 10%. Apricot exports on the other hand decreased by 17%, which is a very concerning trend. The major stone fruit export markets remains the European Union, United Kingdom and Middle East. These markets collectively account for 93% of total exports to all markets. The largest growth in terms of volumes shipped per export destination was to the UK (+35%), followed by the Middle East (+28%) and Africa that also increased with 10% compared to the previous season. The highlights during the 2014/15 stone fruit season can be summarised as: - Very good discipline within the industry in terms of quality standards. Reflecting on the decline in the number of PPECB rejections from 4.4% during the 2013/14 season to 2.5% during the 2014/15 season. - The joint marketing forum was well attended throughout the season contributing to the successes of the industry in mitigating potential risks via the exchange of accurate fruit flow information including crop estimates and shipments, market intelligence and statistics. SA STONE FRUIT PRODUCERS' ASSOCIATION 11 / 60 - - - The decision on not allowing any dispensations on sugars also had a positive impact on export and eating quality and had a positive impact on the reputation of SA stone fruit. The engagement with German retailers on handling protocols of plums and apricots also had a positive impact and the industry will continue with these engagements in an effort to rebuild relationships and to position SA as the supplier of choice. The continued market development campaigns, both internationally and locally, to increase the demand for South African product have also proven to be successful and will be expanded to the Middle East and Far East. It has been a pleasure serving as the SASPA chairperson for the last five years and although I will remain a board member and regional representative, Andre Smit will take over the responsibility as chairperson and Robert Graaff as vice-chairperson. My thanks and appreciation also to the SASPA board members for their continued guidance of industry affairs and for contributing their valuable time on industry matters. The major stone fruit export markets remains the European Union, United Kingdom and Middle East. We are already in the 2015/16 harvesting season and I would like to extend my best wishes for yet another fruitful year to each and every producer. HORTGRO ANNUAL REVIEW 2015 12 / 60 DROËVRUGTE TEGNIESE DIENSTE - Oorsig deur die Voorsitter roëvrugte Tegniese Dienste (DTD) het vanjaar weer indringend na sy funksies en verteenwoordiging gekyk om seker te maak sy fokus is steeds gerig op die sake wat die hoogste prioriteit vir sy produsentelede is. In 'n tegnologies- en vinnig veranderende omgewing bly dit 'n uitdaging om almal ingelig te hou. D Dappie Smit DTD Voorsitter Toegang tot die regte forums is dus noodsaaklik om die snelheid van die prosesse aan te pas, toegang tot tradisionele markte te behou & nuwe markte te identifiseer. Produksie en Bemarking Die toename in verwerkers en verpakkers na die afskaffing van die eenkanaalstelsel het sy tol geëis met die gehalte van Suid Afrikaanse droëvrugte het nie altyd aan die verwagting voldoen nie. Wêreldhandel beweeg steeds weg van direkte ondersteuningsmaatreëls en beperkings soos subsidies, kwotas en invoerheffings. Daar word meer gesteun op sanitêre, fitosanitêre voedselveiligheidsmaatreëls en ander omgewingsbeperkings. Klimaatsverandering en kostedruk dwing meer omgewingsvriendelike praktyke en hoër produksies af, wat meer toegewyde navorsing eis. Toegang tot die regte forums is dus noodsaaklik om die snelheid van die prosesse aan te pas, toegang tot tradisionele markte te behou en nuwe markte te identifiseer. Voedselveiligheid en die verlaging van chemiese residue op alle voedselsoorte is deurgaans onder die vergrootglas. Die bedryf poog om deur 'n gesamentlike aksie die druk weens vermindering in chemiese middels so klein as moontlik te maak. Dit lei ook tot die deurlopende soeke na alternatiewe, meer omgewingsvriendelike metodes soos die steriele insektegniek teen vrugtevlieg, om peste en plae te bestuur. Bemagtiging Droëvrugte vorm deel van die groter vrugtebedryf se gestruktureerde benadering tot bemagtiging, wat fokus op die volgende: - Grondhervorming - Opleiding - Ekonomiese ontwikkeling - Sosiale ontwikkeling - Tegniese ondersteuning en navorsing 'n Opkomende produsente databasis, integrering van opkomende produsente in bestaande bedryfstrukture, en ondersteuning in die oorgang om kommersiële produsente te word, bly 'n hoë prioriteit. Die evaluering van besigheidsplanne en uitbreiding van opleidingsprogramme is van die ondersteunende aksies in dié opsig. 'n Saamboermodel is ontwikkel, as 'n oorkoepelende raamwerk waaronder 'n besigheidsplan vir enige bemagtigingsboerdery suksesvol ontwikkel kan word. Hierdie model het reeds belangstelling van verskillende moontlike finansierders en ook ander bedrywe geprikkel omdat dit nie afhanklik van toegifte (grants) en donasies is nie. DTD is tans betrokke by nagenoeg 31 bemagtigingsprojekte wat in verskillende stadiums van ontwikkeling is. Hoewel DTD se heffings-inkomste minder as R5 miljoen is, was dit reeds suksesvol om ongeveer R30 miljoen van die Ontwikkelingsbank (Obsa), die DROËVRUGTE TEGNIESE DIENSTE 13 / 60 Nywerheidsontwikkelingskorporasie (NOK), Produktiwiteit SA, AgriSeta, die Noorden Wes-Kaapse departemente van landbou, sowel as die Landbounavorsingsraad (LNR) te verkry om projekte te finansier. Hierdie projekte behels grondhervorming, navorsing, opleiding, ekonomiese- en sosiale ontwikkeling, vestiging van wingerd- en vrugtebome, sowel as tegniese ondersteuning. Navorsing Navorsing is daarop gemik om die dringendste probleme van produsente aan te spreek en onder die huidige moeilike ekonomiese tye winsgewendheid en mededingendheid te verhoog. As gevolg hiervan word baie aandag gegee aan teling en evaluasie en die soeke na nuwe verbeterde kultivars met beter weerstand teen peste en plae. Vanweë die goeie vraag na rosyne in die wêreldmark, het DTD dit ten doel gestel om 1000 hektaar nuwe of vervangende rosyntjie-druiwe te laat vestig. Hierdie doelwit is na vier jaar pas bereik. Om die oesperiode te verleng, is drie nuwe pitlose druifkultivars bekom wat vroeër as die bestaande kultivars ryp word. Dít kan die druk tydens oestyd verminder sonder om die volume te verminder. Vier nuwe kultivars uit die plaaslike teelprogram word ook evalueer. Drie pruimedantkultivars, Tulare Giant, Sutter en Muir Beauty, is ingevoer en word tans plaaslik evalueer. Klem word veral gelê op vrugbare kultivars wat beter aangepas is by plaaslike omstandighede en dus konstant beter oeste van hoë gehalte kan lewer met beperkte insette. Laer kouebehoefte is ook 'n belangrike vereiste by nuwe kultivars. Met die klem op nuwe kultivars, was dit onvermydelik dat daar verseker moet word dat aanplantings met die beste moontlike gehalte plantmateriaal begin word. Om hierdie rede het die bedryf belê in die SA Plantverbeteringsorganisasie (SAPO), wat alle aspekte van plantmateriaal sentraal bestuur sedert die departement van landbou hierdie funksies uitfasseer het. Dit is ook die enigste plaaslike instansie wat alle dienste ter verskaffing van gesertifiseerde plantmateriaal ingevolge die Plantverbeteringswet self lewer. Klem word veral gelê op vrugbare kultivars wat beter aangepas is by plaaslike omstandighede en dus konstant beter oeste van hoe gehalte met beperkte insette kan lewer. DTD is ook 'n aandeelhouer in Culdevco wat plaaslik geteelde kultivars effektief wêreldwyd kommersialiseer. Hierdeur kon die bedryf sy eie kultivars beskerm en ook ‘n inkomste genereer uit die bemarking van sodanige kultivars wat voorheen nie moontlik was nie. HORTGRO ANNUAL REVIEW 2015 14 / 60 HORTGRO ANNUAL REVIEW 2015 15 / 60 Management and Administration Louis van Zyl HORTGRO General Manager ince its inception ten years ago, HORTGRO has been providing a range of financial and administrative services to a number of horticultural industry bodies. S Of the number of entities that HORTGRO currently services, industry sub-structures and key services, SA Apple and Pear Producers' Association (SAAPPA), SA Stone Fruit Producers' Association (SASPA), FruitFly Africa, Dried Fruit Technical Services (DFTS), SAPO and Culdevco count as its principal members. Enhancing the long-term economic viability and sustainability of the industry to ensure an enabling environment for industry stakeholders to prosper in. HORTGRO has also been contracted to provide such services to alternative crops including berries, Cape Flora, cherries, honeybush tea, olives, pecan nuts and pomegranates. A total of 34 entities are currently serviced. HORTGRO has been contracted to implement various provisions of the Agricultural Product's Marketing Act and collects statutory levies on behalf of the following organisations: SAAPPA; SASPA; FruitFly Africa; SA Olive Industry Association; Cape Flora Association of SA; and the SA Pecan Producers' Association. It also administers and collects payments for a number of user pay industry services. The administrative function provided by HORTGRO includes: - Acting as a change agent relating to land reform, training and other socio-economic dimensions affecting the agricultural sector - Coordinating the information exchanged among the sub-structures and alternative crops, provincial and national government and other stakeholders and interest groups - Enhancing the long-term economic viability and sustainability of the industry to ensure an enabling environment for industry stakeholders to prosper - Positioning horticultural products favourably among target audiences through the lowering of input cost, enhancing efficiencies in the export value chain based on long-term alliances and strategic relationships - Protecting and expanding market access and market share based on effective technical support and communication - Providing information and perspectives on all aspects relating to the horticultural industry. MANAGEMENT AND ADMINISTRATION 16 / 60 HORTGRO ANNUAL REVIEW 2015 17 / 60 RESEARCH, SCIENCE and Technology Hugh Campbell HORTGRO Science General Manager esearch within the stone and pome fruit industries is driven by the need to address present and future challenges by developing technologies and creating knowledge, while at the same time providing a constant stream of well-trained people. R Thirty-eight projects were completed at the end of 2013/14 and 32 new projects were initiated. During the 2014/15 year 110 research projects were conducted at Stellenbosch University, the Agricultural Research Council (ARC), ExperiCo, Pretoria University, the Council for Scientific and Industrial Research (CSIR), CA Science, Nemlab, Blue North, and Western Cape Biotech. Thirty-eight projects were completed at the end of 2013/14 and 32 new projects were initiated. Funding allocations of 54% of the standard levy for pome fruit and 45% of the stone fruit levy was channelled to research and development. This levy funding leveraged an additional R25,42 million from other funding sources. Figure 1. reflects the external funding received. Figure 1: 2014/15 Funding leverage SAAPPA / SASPA levy projects 41% 38% PHI THRIP 14% Parliamentary Grant (ARC)/other industries WCDoA 6% 1% It is interesting to note that we have seen some shifts taking place with regards to the profile of the researchers conducting research for HORTGRO Science. Currently 53% of the research projects have a female as the project leader (up from 37% last year) and 22% of the projects have a black project leader, up from 13% last year. Of our projects, 33% involve the training of students at post-graduate level. Forty-four post-graduate students are currently registered on HORTGRO Science projects. Of these post-graduate students, 50% are black. We are encouraged by these figures and are looking forward to seeing these post-graduate students landing in industry in different positions. Dr Xolani Siboza joined HORTGRO Science on 1 December 2014 as our Regional Fruit Production Researcher and Dr Daleen Stenekamp moved from Entomon Technologies to HORTGRO Science as the Applied Researcher in Crop Protection along with Terence Asia who was appointed as a Technical Assistant. A Chair in Applied Pre-harvest Deciduous Fruit Research was created at Stellenbosch University's Department of Horticultural Sciences from 1 October 2014, and the industry is privileged to have Prof Karen Theron in the Chair. This chair is funded by HORTGRO with co-funding from Stellenbosch University. The objectives of the Chair is to ensure focused research as well as training of under- and postgraduate students in the area of pre-harvest deciduous fruit production takes place. Furthermore the Chair is to act as an interface between Stellenbosch University and the deciduous fruit industry facilitating the required transfer of relevant research outputs to the industry. RESEARCH, SCIENCE AND TECHNOLOGY 18 / 60 The allocation of funds between the different research programmes is reflected in Figure 2. Figure 2: Percentage allocation of funds per research focus area for stone and pome fruit for the 2014/15 financial year. STONE FRUIT POME FRUIT 5% 5% 41% 32% 19% 24% 24% 23% 24% 3% Genetic Pool Optimisation (Breeding) Sustainable Farming (Crop Production) Sustainable Farming (Crop Protection) Product Integrity through the Supply Chain (Post-Harvest) Market Alignment (Market Access A comprehensive overview of each research programme is available in the HORTGRO Science 2014/15 annual report. The following is a brief overview of each programme: Breeding Programme The Breeding Programme is based at ARC Infruitec-Nietvoorbij and is aimed at breeding new cultivars that are 'easy to grow and easy to sell'. The funding allocations of 23% for pome fruit and 41% for stone fruit demonstrate the relative importance that the industry places on the local breeding programme. The breeding programme works closely with Culdevco who has custodianship of phase 3 (final evaluation phase) and the final commercialisation of all cultivars that emanate from the ARC breeding programme. Sustainable Farming - Crop Production Programme The Sustainable Farming - Crop Production Programme is led by Prof Wiehann Steyn. The Crop Production research strategy is directed and aligned with the requirements and key risks to the Orchard of the Future. Hence, farming efficiency (of which rootstocks, plant quality and orchard efficiency are key components) as well as waterand climate-related research are the strategic priorities of this programme. The Crop Production research programme is structured into seven themes, namely Dormancy, Farming efficiency, Irrigation and nutrition, Rootstocks, Soil Health, Summer climate, and Yield. Research strategy for each theme is determined by a workgroup (a workgroup per theme) consisting out of fruit growers, technical advisors and researchers. When considering research strategy, the workgroups always keep in mind the changes we need to make to our orchards to remain internationally competitive as well as profitable. HORTGRO ANNUAL REVIEW 2015 19 / 60 ...to support and enhance the processes across the supply-chain to ensure that intrinsic product integrity is maintained, and that a quality product is available to the endconsumer in local and distant global markets. Sustainable Farming - Crop Protection Programme The Sustainable Farming - Crop Protection Programme which is under the management of Matthew Addison, includes entomology, nematology and plant pathology. The research strategy is broadly directed at sustainability and the reduction of the use of synthetic pesticides. Priorities include the development of biological control agents, the development of suitable postharvest disinfestation treatments, and investigation the basic biology of plant pathogens in order to manage them more effectively. Product Integrity through the Supply Chain Product Integrity through the Supply Chain (Post-Harvest) is a programme that is run by Richard Hurndall. The essence of this programme is to support and enhance the processes across the supply-chain to ensure that intrinsic product integrity is maintained, and that a quality product is available to the end-consumer in local and distant global markets. The objective of this programme is to increase the marketable tons of fruit delivered per ton of fruit loaded. The themes of this programme include protocols and fruit quality maintenance, storage techniques, market access, decay control, fruit quality prediction, chemical residue reductionor alternatives, packaging, and transportation systems. The post-harvest programme was well supported by the Post-Harvest Innovation Programme (PHI), a funding initiative of the Department of Science and Technology. Communications Programme A key programme within HORTGRO Science is the Communications Programme which is ably led and implemented by Elise-Marie Steenkamp. A strong emphasis has been placed on integrating the different communications platforms in order to meet the specific needs of our stakeholders. The refreshed HORTGRO Science website and an active Facebook page with a total of 27 videos which we have uploaded onto You Tube is proof of this. Fifteen technical articles and many other news articles were published in the SA Fruit Journal, while a total of 14 'Fresh Notes' were sent out during the year on specific issues. The annual HORTGRO Science Technical Symposium was a great success with a lot of positive feedback from delegates who attended. Prof Salah Subbareih, a robotics expert and world leader from Sydney University, provided a quantum shift in terms of thinking about what is possible today, let alone in the future. In addition to the pome and stone fruit field days presented in conjunction with the symposium, a field day was held in the Langkloof on December 14 2014, a Post-Harvest Seminar was held on January 15 2015 and a Crop Protection Seminar was held on September 15 2015. All of the events were well attended by various industry role-players. Lastly, it would be amiss not to congratulate Tinnie du Preez for winning the 'Deciduous Fruit Industry Innovation Award'. Du Preez is a worthy winner of this award for his contribution to the industry over many years in the area of soil science and the implementation of technology. He has also made a vast contribution role as a mentor to a generation of technical advisors. Please refer to the HORTGRO Science 2014/15 annual report (www.hortgroscience.co.za) for a comprehensive report of the R&D activities funded by the levy. RESEARCH, SCIENCE AND TECHNOLOGY 20 / 60 HORTGRO ANNUAL REVIEW 2015 21 / 60 TRADE and Markets Jacques du Preez General Manager: Trade & Markets n the property industry they often refer to "location, location, location". A play on that, namely "quality, quality, quality" has never been so true and important to the stone and pome fruit industries as now. Orchards continue to expand, but the industry reached a point where it almost took its eye off supplying good eating quality fruit as the priority, and just increasing the volumes to new records every year. I This is a great example of how discipline and order within an industry can be to the benefit of all. Germany was the first market to ring the alarm on inadequate eating quality. This eventually turned to action and led to 30-60% less stone fruit, depending on the type, being imported from South Africa over the last three seasons. This was a huge blow to, especially, the apricot and plum exporters, but it also creates new opportunity. Active engagement and information sharing from the SA Stone Fruit Producers' Association (SASPA) with the SA exporters and growers and the German trade, is reestablishing a new belief and confidence in our industry which in time will gather momentum. This is a great example of how discipline and order within an industry can be to the benefit of all. The Joint Marketing Forums again justified their existence and value as platforms for identification of problems and opportunities, as mentioned above. They are a credible and trustworthy source of accurate information and create opportunities for discussion among marketers and growers in the industry. TRADE AND MARKETS 22 / 60 One thing we can be sure of is that requirements and trade barriers - be it tariff, non-tariff, commercial or just "unfair protectionism"- will become stricter and more difficult season by season. This will put more pressure on the industry to ensure compliance and growing exports to our traditional markets, but also to opening up new markets. The past year yielded a historic achievement with the first apples officially exported to China. The process to gain access for pears there, is also well underway. Market Development activities in the United Kingdom and Germany, which have proven to be successful over the past five years, have been scaled down to a maintenance phase with funds being redirected for expansion to the Middle and Far East. Pilot campaigns will be launched in the United Arab Emirates and Malaysia in early 2016 in close collaboration with exporters. Trade delegations, comprising the organisations FruitSA, the Citrus Growers' Association of Southern Africa (CGA), Fresh Produce Exporters Forum (FPEF), South African Table Grape Industry (SATI) and Subtrop, undertook visits to numerous South East Asian countries addressing market access issues as well as participating in the Fresh Produce India trade show for the first time. Market research in Africa, in conjunction with the National Agricultural Marketing Council (NAMC), and also in Europe (stone fruit) will conclude toward the end of 2015 and will guide our strategies going forward in growing and developing these markets. The local market development and consumer education campaigns for peaches, nectarines and plums proved to be very valuable and efficient with a relatively small budget. Great media coverage was received as well as cooperation from the fresh produce markets, retailers and the informal traders, aiming to increase awareness and consumption among South Africans. The special markets programmes for Taiwan and the United States of America were successfully executed although there initially were some anxious moments with higher rejections. This will be addressed via pro-active risk management procedures and monitoring that has been put in place for the ensuing season. Great media coverage was received as well as cooperation from the fresh produce markets, retailers and the informal traders, aiming to increase awareness and consumption among South Africans. A noteworthy success story that is a direct result from growers investing in research is the Forelle Early Market Access (FEMA) programme that goes from strength to strength. Over the last four years the volume for the programme grew with almost 350% to 1.45m cartons this past season. The 2014/15 season was the first one for both pome and stone fruit to fully use AgriHub information as the "near-real-time" source of shipping information. These industries can be proud of the leading role they are playing here. The Phytoclean and Titan projects are also exciting ones set to take off soon enabling the electronic issuing of export and phyto certificates. These three projects are great examples of the industry making use of technology and staying with changing times. Further development of these three initiatives will be closely coordinated over the next few years. HORTGRO ANNUAL REVIEW 2015 23 / 60 TRADE and policy Dr. Mono Mashaba Manager: Trade & Policy e have continued to implement the market access agenda in Asia with more energy and determination than ever before. The visit to China and participation in the Beijing Fruit and Vegetable Fair in November 2014 provided an excellent platform to further engage and lobby the State Administration for Quality Supervision, Inspection and Quarantine (AQSIQ). W This paved the way to finalise the market access process for apples and to start with the processing of the market access application for pears. The timing of the visit was opportune because a month later (December 2014) President Zuma undertook a State Visit to China and with his counterpart President Xi Jinping of China, witnessed the signing of the market access protocol for apples by Minister Senzeni Zokwana. This concluded an 8 year process and we are grateful to all those who have put in energy and effort to make it happen and provided real leadership when it mattered. It will be difficult to thank each person but I would like to express my thanks to the leadership collective at HORTGRO, the technical team, support staff behind the scene and growers who continued to provide support and were instrumental in the achievement of this objective. A special thanks also to the colleagues at DAFF who had to endure our pestering all the time and still maintained their focus to get the job done. They are also our silent heroes and we have both learned a lot about working as a team. TRADE AND POLICY 24 / 60 During our recent (September 2015) visit to China we again had a fruitful and positive discussion with AQSIQ about the conclusion of the pear protocol. We are hopeful that this process will be concluded soon. We also upped our engagements with Indonesia in order to implement their undertaking to visit South Africa for a verification inspection which did happen during August 2015. It was also a long process but through intense engagements and diligence, the visit did take place and we have received initial reports indicating that the outcome was positive. We will continue to engage on this matter during the next financial year to ensure that South Africa get the recognition to use the Jakarta port as the entry point for its fruits. Engagements were also held with the Thai authorities in regard to the processing of the application already submitted for stone and pome fruit. Indications are that the application for market access for table grapes will be finalised before the end of 2015 and after that the focus will be to process the application for pome fruit. We will continue to vigorously engage Thailand to ensure acceleration of the processing of the application for pome fruit market access during the next financial year given that they undertook an unofficial inspection of our pome production and packing facilities during their inspection visit for table grapes during January 2015. Our engagements in India has also given us an opportunity to understand the dynamic market in that country and the competition that our fruit faces given the high tariff structure that is currently being implemented. This observations and engagements that we had during India Fresh Produce 2015 conference and expo held in Mumbai during April 2015 is assisting HORTGRO to further engage with government departments (DAFF and the dti) to find ways to negotiate with the Indian authorities to achieve more favourable terms of market access. Already indications are that the process will be very long and difficult road given the role of SACU as a partner of South Africa in any trade negotiations. We hope that once the BRICS countries start focusing on enhancing trade amongst its members, these issues might be easily dealt with rather than using the current SACU arrangements. Nevertheless, we will continue to engage on all fronts during 2016 to ensure the realisation of this objective. A joint market research project with the NAMC into certain African countries is well underway and should guide us and the government on issues that needs to be addressed and opportunities that are there for the taking. With the input and guidance of growers and exporters the market access prioritisation matrix for pome and stone fruit was reviewed and updated, ensuring that we focus on the relevant markets in our endeavours to grow exports to existing markets and also gain access to new markets. We hope that once the BRICS countries start focusing on enhancing trade amongst its members, these issues might be easily dealt with rather than using the current SACU arrangements. These strategies then directly feed into the Trade Working Group at a national level where the all the fruit types jointly coordinate and organise market access issues and activities. HORTGRO ANNUAL REVIEW 2015 25 / 60 MARKET Access Lindi Benic Manager: Market Access echnical trade and market access compliance requirements, including increasing sanitary or phytosanitary (SPS) regulatory requirements continue to dominate and drive the market access agenda. This requires continued ongoing actions to ensure that current market access is either maintained or improved through interaction at all relevant levels. T There is a high level of confidence that exports to the EU will meet EU pesticide residue standards. Specific issues this past year include: EU FVO Audit Mission to South Africa in September 2014 - Final Report: The final European Union Food and Veterinary Office (EU FVO) Audit Mission Report was published in November 2014. The final report confirmed that in addition to official controls, comprehensive own controls conducted by exporting Food Business Operators (FBOs), growers and pack houses, further complemented by the pro-active approach undertaken by the industry, are all factors providing a high level of confidence that exports to the EU will meet EU pesticide residue standards. MARKET ACCESS 26 / 60 SA apple exports to China: The protocol on phytosanitary requirements for the export of apples from South Africa (SA) to China was signed between the Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and the Department of Agriculture, Forestry and Fisheries (DAFF) on 4 December 2014, during the SA Ministerial Delegation visit to China. A copy of the signed protocol was received from AQSIQ via DAFF at the end of January 2015 after which DAFF confirmed the final approval of databases for export of apples to China. The first SA apple shipments were exported to China during March 2015. SA pear access to China: Good progress was made with the access of pears to the Chinese markets with updated Phytosanitary Information Package (PIP) which initiated the Pest-Risk Assessment (PRA) process. Various engagements and further exchange of technical information have since been shared via official channels between these countries, including ten quarantine pests of concern and information relating to chemicals used on pears. It seems that the Pear PRA process is progressing well and would hopefully be concluded soon. Progress on the Recognition of SA's Food Safety System by Indonesia: A state visit to Jakarta, Indonesia, took place in April 2015 where issues regarding the application for the mutual recognition of the food safety control system were deliberated. The Indonesian Authorities confirmed that they were in a position to undertake a field verification visit to SA. This visit took place from 23-28 August 2015. The Indonesian delegates indicated that they were impressed by SA operations, activities and systems. The Indonesian delegates indicated that they were impressed by SA operations, activities and systems relating to food traceability, process in terms of records, standard operating procedures and identification of critical control points in pack houses, and obtained information on the laboratories and their competency. The process to ensure mutual recognition status between the two countries continues with indications that it could be concluded soon. SA exports to Philippines: Although DAFF SA has exported deciduous fruit to the Philippines, the Philippines require a PRA process for all deciduous fruit crops, prior to further exports taking place. This process continues. Various export / import consolidated industry responses were provided to DAFF-PRA: For exports, AQSIQ has requested more technical information to supplement the Pear PRA and draft PRA's on apricots, plums and pears, with related follow-up responses to Vietnam. Regarding imports, the Malus (apple) National Quarantine pest list was reviewed and finalised between the industry and DAFF between April and June 2015. Responses were provided on draft work plans and PRA reports regarding phytosanitary import requirements for importation of apples from France, Netherlands and Portugal. HORTGRO ANNUAL REVIEW 2015 27 / 60 TECHNICAL Services Richard Hurndall Manager: Research & Technology e co-ordinate activities of the Packhouse Action Group; we give updates on a technical level on grading regulations between industry, exporters and DAFF; we manage industry weather stations; and we give feedback and circulate information on a range of issues. W Certain markets have been targeted for rehabilitation and a code of best practice is being instituted across markets. These include: Stone / Pome Technical and Joint Marketing Forums - Representative for research and technical aspects Export / Local standards / Dispensations - Co-ordination of local and export standards and dispensations for pome and stone fruit. Facilitate PPECB interpretation of broken stones in plums. - Relating to the local market, a private inspection service, Prokon, was mandated by DAFF to conduct stone fruit quality inspections on Fresh Produce Markets. SASPA has contracted Prokon on its behalf. - Represent Industry on visits to fresh produce markets. - Represent Fruit SA on Project Rebirth for fresh produce markets. TECHNICAL SERVICES 28 / 60 Certain markets have been targeted for rehabilitation and a code of best practice is being instituted across markets. Forelle Producer Association - Representative of FPA and Forelle Research Programme - Manage process of Forelle release and shipping dates - Facilitate Forelle Smartfresh (FEMA) commercial protocols Packhouse Action Group - Activities in 2015 included: - Institute cold sterilization and load shedding work groups - Establish a container risk management system (data base of faulty containers) - Packhouse productivity benchmarking project - Conduct an overseas study tour and establish a blueprint for Controlled Atmosphere research facilities - Revive CA Storage and Post-Harvest Group - Fresh Notes to packhouses summarising meetings (x3) Weather Stations - Manage industry weather station service - Supply cold/heat units, temperature and rainfall data to producers and researchers Weather stations supply cold/heat units, temperature and rainfall data to producers and researchers. SA Pink Lady Alliance (SAPLA) - Technical representative - Arrange Rosy Glow orchard visits in Langkloof, Elgin and Ceres - Attend International Pink Lady Association technical meeting in Chile See http://www.pinklady.cl/congreso/presentaciones/ NAMC - Investigation into local market fruit exports DPA - Research strategy and alternatives - Cross-contamination of DPA in packing facilities (Focus group and Fresh Notes) PACKHOUSE ACTION GROUP AfricaBio - Representative to keep abreast of Biotech activities HORTGRO ANNUAL REVIEW 2015 29 / 60 30 / 60 HORTGRO ANNUAL REVIEW 2015 31 / 60 INFORMATION and Logistics Mariëtte Kotzé Manager: Information and Statistics T he pome, stone and dried fruit industries are mainly export orientated, hence globally competing with other countries, fruit kinds and ultimately competing with other supply chains. Detailed and timely trade and marketing information is therefore of critical importance to enable producers and other role players within the industry to make informed decisions at grassroots level to remain competitive and sustainable in the long run. Information is vital for long-term strategic planning of production. This service is provided mostly to pome, stone and dried fruit producers, but a limited user-pay service is also provided to other horticultural industries within the HORTGRO umbrella. This information is vital for long-term strategic planning of production and infrastructure requirements - both on a production unit, regional and national level. The highlights of the information services rendered during the past season: The key deciduous fruit statistics remains an important and consolidated source of information - dissemination remains a challenge and we will attempt to increase the accessibility with new technologies in the future. INFORMATION AND LOGISTICS 32 / 60 - - - Introduction of an online tree census - this will greatly add to one of the industry's core functions of updating and maintaining the industry database in terms of production trends, plantings per cultivar, regional trends, etc. Implementation of web based real time shipment data as part of the market intelligence and weekly information exchange on exports which is real-time for decision making purposes. More detailed information, and expansion to more markets, on municipal market sale volumes. Detailed monthly surveys on pome stock volumes also proved invaluable. Export crop forecasts were delivered to the industry with an accuracy of 95%. More efficient information exchange with Southern Hemisphere and Northern Hemisphere counter parts resulting in added value to our constituents. Additional capacity - appointment an agricultural economist (Nina Goosen) to add value to our existing service offering. The additional service offering also includes the maintenance and improvement of agricultural economics related parameters, liaison and information exchange with industry role players and international counterparts such as SHAFFE, WAPA, Freshfel and Agri-Benchmarks, long-term industry projections, enterprise budgets and the participation on different forums dealing with infrastructure and logistical issues such as the Port Liaison Forum and the SIP-11 initiative of Government The specific focus on land reform and business development support required by small scale farmers remained a major focus area. The main focus was support provided with administration and implementation of Comprehensive Agricultural Support Programme (CASP) funding in the Western Cape through the commodity project allocation committees (CPAC) for deciduous fruit. The relationship with the Department was extended and to include CPAC support services to be rendered also to Citrus in the Western Cape. Through our involvement with the Western Cape Department of Agriculture we have administered in excess of R85 million over the last 5 years of which 74% of the funding were allocated to 100% black owned entities and 26% to equity share entities. We foresee that our involvement with the Department of Agriculture will continue as this is truly an effective Public Private Partnership to fast track the integration of emerging producers into the mainstream economy. It is trusted that this arrangement could be rolled out to other provinces as well. HORTGRO ANNUAL REVIEW 2015 We have administered in excess of R85 million over the last 5 years of which 74% of the funding were allocated to 100% black owned entities and 26% to equity share entities. 33 / 60 DECIDUOUS Fruit Development Chamber Kevin Maart Manager I n the State of the Nation Address (SONA) in February 2015, President Jacob Zuma declared 2015 the Year of the Freedom Charter and Unity in Action to Advance Economic Freedom. In doing this, he set out a nine-point plan to drive economic growth in South Africa, with a special focus on job creation. It is against this background that the Deciduous Fruit Development Chamber of South Africa (DFDC-SA) in collaboration with the Deciduous Fruit Producers' Trust and HORTGRO, decided to launch an application under the Jobs Fund's call for proposals. The DCP is a four year multi-stakeholder funded project, which is designed to increase agricultural productivity and market access for smallholder deciduous fruit farmers in production regions. The DFDC's Commercialization Programme (DCP) supported by SAAPPA and SASPA was used as the basis for this application. The DCP is a four year multi-stakeholder funded project, which is designed to increase agricultural productivity and market access for smallholder deciduous fruit farmers in three production regions. These production regions consist 20 beneficiaries in the Western Cape in Witzenberg, Elgin, Grabouw, Vyeboom and Villiersdorp, and four Eastern Cape beneficiaries in Langkloof. The Deciduous Fruit Industry has partnered with the Western Cape Department of Agriculture to secure a total of R120 million for the implementation of the DCP over a period of four years. A value chain approach is being followed. In other provinces the DFDC is pursuing various provincial Departments of Agriculture to buy into the DCP. Thus far the following initiatives are in planning phase and will most probably rollout in the 2016/17 financial year: - The Remmoho Empowerment Initiative is planning to establish 2 000 ha of apples in the Thabo Mafutsanyana District in the eastern Free State over ten years. Commercial and emerging growers will join hands in this initiative which includes the processing sector. - In Mpumalanga the MEC for the Department of Agriculture, Rural Development and Land Reform intends to sign a memorandum of agreement (MOA) with the DFDC and one of the largest corporate businesses in the apple cider manufacturing space, to establish 400 ha of apples over the next four years in the Gert Sibande District. This will be a mix of apples for fresh supply and juicing. - The Department of Rural Development and Agrarian Reform (DRDAR) in the Eastern Cape has adopted a five year development plan to establish or replace 220 ha of deciduous fruit in Langkloof East under the Koukamma Municipality in the Sarah Baartman District of the Eastern Cape. In the Chris Hani District under the guidance of the Accelerated and Shared Growth Initiative (ASGISA)-Eastern Cape, fruit production and hydrology studies in the upper Lefuta and Hota Mbewelu catchment areas have been conducted. These studies showed potential for the establishment of 2500 ha of deciduous fruit around towns like Elliot, Calla, Mount Ayliff and Mount Frere. Feasibility studies are currently being undertaken and the Department of Rural Development and Land Reform has already committed R500 million to roll-out this project over 10 years. DEVELOPMENT CHAMBER 34 / 60 The DFDC is very excited about these initiatives, as successful implementation will assist the industry in achieving the DCP's objectives. These objectives will help build sustainable and inclusive value chains that will increase the production footprint and production efficiency of our member farmers and to transform them into globally competitive role-players. HORTGRO ANNUAL REVIEW 2015 35 / 60 TRAINING and Corporate Social Investment Retha Louw Manager: Corporate Affairs ORTGRO is involved in training on numerous levels. Our vision is not only for students, but also to educate and develop the larger farming community. H Career Fairs are the perfect opportunity to change perceptions about agriculture. BURSARY AND INTERNSHIP SCHEME The HORTGRO bursary scheme currently has 15 pre-graduate students enrolled at various universities and colleges nationwide studying in a variety of agricultural related fields. To date, 90 students benefited from the programme. The bursaries are funded through HORTGRO's annual bursary fund, augmented with grants from AgriSETA. A total amount of R680 000 was invested in this programme during the past financial year. Four successful career exhibitions at various universities (Stellenbosch University, University of Pretoria, University of KZN and the University of South Africa) were supported, where HORTGRO in conjunction with Fruit South Africa exhibited and displayed careers opportunities within the fruit value chain. Career Fairs such as these, are the perfect opportunity to change perceptions about agriculture and to motivate young people to study and to work in an agricultural environment. School tours continued to introduce learners to a number of career opportunities within the agricultural sector and to encourage them to choose a career in agriculture. This will, over time, ensure well trained and skilled employees for the industry as it empowers learners to make the right subject choices early enough in the education setup. TECHNICAL TRAINING DVD'S The website SA Orchard (www.saorchard.co.za), that shows short movies featuring various deciduous farming activities, has been maintained and seems to be working well. The DVD's are designed to provide specialist information to new and existing deciduous fruit farmers and farm workers. The videos, available in Afrikaans, English and Xhosa, are available for all to download free of cost. SOCIAL AND DEVELOPMENT PROGRAMMES 1. NYANISA - LET'S TALK STATUS HIV/AIDS AND TB PROGRAMMES As many of the target areas were reached during previous funding years, requests were dealt with as they arose throughout the current financial year. Only one farm and 16 beneficiaries were reached in the Witzenberg region during the 2014/2015 financial year. Additional farms either provided their own funding or funding was sourced from other organisations, such as the Department of Health in the Cape Winelands District. The HIV/Aids Facts is also addressed through the Farm Worker Wellness Programmes. The DVD and best practice guidelines to develop an on-farm policy and strategy to address HIV/Aids and TB on farms are still available. 2. FARM WORKER WELLNESS PROGRAMMES (FWP) The Farm Worker Wellness Programme (FWP) focuses on empowering employees with the necessary life and communication skills in order to minimise the impact of psycho-social problems on the employees' productivity. The underlying principle of the FWP is that individuals with healthy core values and norms, are more inclined to lead healthy, productive lives and thus able to be more productive and efficient workers. TRAINING AND CORPORATE SOCIAL INVESTMENT 36 / 60 A total of 837 individuals received training during the past financial year. Almost 3 438 indirect beneficiaries on six farms were reached. The need for more information on healthy lifestyles seems to be increasing. The objective is to kick-start the programme on farms, whereafter it is integrated as part of best practice on such farms and becomes part of the normal employee costs as part of the Support Care Worker SCW-programme. It is encouraging to see that upon the completion of the Farm Worker Wellness Programme, many farm management teams come to the realisation that the support services of a social worker is needed on a more continuous basis than just over a five week period as in the case of the FWW-programme. This led to several farms contracting the services of an on-site social worker. 3. SUPPORT CARE WORKER PROGRAMME The Support Care Worker (SCW)-Programme entails the establishing of a sustainable support network of peer educators within the agricultural sector. To date 350 volunteers of 102 farms were trained through this programme. Through funding from the Department of Health, the Cape Winelands District ensures monthly supervision and support to 30 SCW's in the Witzenberg region. 4. ODEY PROGRAMME The O.D.E.Y (Overcome Dependency, Empower Yourself) on-farm treatment and integration programme, is a holistic approach to substance dependency treatment and aftercare. The programme is structured to ensure that treatment could be done within the working environment meaning everyday operational living activities can continue. For the 2014/15 financial year, 51 group members participated in the programme. To date a total of 30 farms participated in the programme and more than 395 employees, their families and their communities were reached. The success rate of the programme is very high and individuals not only indicate a change in their drinking behaviours, but also an improvement in communication, family life and financial situation. More and more group members are coming to the fore with dual addiction such as alcohol and cannabis or even Mandrax and Methamphetamine (TIK). This alarming situation calls for even more support services to be rendered and the need for this is discussed with the respective farm management teams. Due to the success of the programme and word of mouth testimonials of farm producers and employees, there is an increase in requests for the programme. 5. AGRI'S GOT TALENT PROGRAMME With the Agri's Got Talent Project, HORTGRO and VinPro created a platform for talented individuals where they can showcase their singing and performing talents. The project encourages farm workers to develop their talents, so they can go back and contribute even more toward their family and community while empowering themselves through gaining more self-worth and knowledge. Over the last couple of months, numerous reports were received of people singing in the orchards, practising for the 2015 competition, providing evidence that even though it is a competition, it can create unity among people. HORTGRO ANNUAL REVIEW 2015 37 / 60 FINANCIAL ASPECTS for the Social and Training Programmes Total amount for the financial period 2014/2015: HORTGRO: R648 000 External Sources: R150 000 Most of these programmes have been running since 2005 with tremendous success. A total of 1 657 farms and 69 546 beneficiaries have been reached to date. Total amounts for the financial period 2005 - 2015: HORTGRO: R 3 378 000 External Sources: R 5 118 000 We received a total of 75 entrees of which 11 finalists were chosen to perform at an elegant event in front of a panel of judges and 500 farm workers and selected industry role players. We envisage that the Agri's Got Talent Competition in the future, will open doors for many people in agriculture and that this annual event will be something for farm workers to look forward to. OTHER TRAINING INITIATIVES Other training initiatives, such as Health and Safety programmes and Learnerships were funded collectively by AgriSETA and HORTGRO to an amount of R300 000, and were also implemented on farms during 2015. HORTGRO would like to thank the service providers for the excellent programmes implemented and sustained on farms. Our thanks also to AgriSETA for their continued funding of our programmes, as well as individual employers who continue with programmes after they were initiated. SAGTEVRUGTE BEDRYFSONTWIKKELINGSTRUST (DFIDT) Die DFIDT bestuur die oorblywende bates van die Sagtevrugteraad en word deur HORTGRO administreer. Slegs die opbrengs op die kapitaal mag deur die Trustees aan projekte toegeken word. Weens rentekoerse wat die laaste paar jaar relatief laag was, is daar 'n besluit deur die Trustees geneem om die fondse te belê, sodoende om 'n mate kapitaalgroei te bewerkstellig. Geen projekte is dus gedurende die afgelope jaar befonds nie. Trustees: I Motala (Chairman), KM Rangaka (Vice chair), M Poto, E Jefthas, T Abrhams, NDV Dicey FRUIT WORKERS DEVELOPMENT TRUST (FWDT) The FWDT is positioned to partner commercial entities in BEE-initiatives to get Enterprise Development points. Many companies that are directly or indirectly linked to the agricultural value chain are in the process of considering or implementing BEE ownership deals. They often require a broad based grouping as part of the BEE consortium. The FWDT, as a 100% black entity that is fully compliant with the requirements as set out in the BEE Codes, is well positioned to take advantage of these opportunities. The FWDT is a "qualifying black enterprise" that carries on an investment business for the benefit of its beneficiaries. Any contributions to the FWDT that contribute to expanding its operational and financial capacity will therefore also enable businesses to qualify for Enterprise Development points within the B-BBEE scorecard. The FWDT continued its investment in value chain opportunities partnering a consortium of investors in a BEE deal of the Pioneer group. Other investments continue to develop well. The main focus remains to re-invest proceeds in order to build the asset base on behalf of the beneficiaries being permanent (black, coloured and Asian) farm workers in the fruit industry. The Trustees are currently considering payment of a portion of the proceeds to beneficiaries. The FWDT currently have 946 beneficiaries from 24 farms. For the first time since the establishment of the Trust, dividends were paid out to 865 beneficiaries. The details of the outstanding beneficiaries (two farms) are still outstanding, some due to death or resignation. This is being followed up and will be finalised soon. Trustees: Wimpie Paulse (Chairperson), Dora Ndaba, Anton Rabe TRAINING AND CORPORATE SOCIAL INVESTMENT 38 / 60 HORTGRO ANNUAL REVIEW 2015 39 / 60 CAPE FLORA SA CFSA Dr Lynn Hoffman Chairman t has been an exciting 2015 for Cape Flora SA as it was its first operational year as a newly formed industry body within the fynbos sector. Cape Flora SA reshaped its mission to create a platform from which sustainable benefits could be unlocked and maximized for all role players in a unified Cape Flora industry value chain. I Following a strategic planning session, market access was identified as a key function of Cape Flora SA, where after a Go-to-Market strategy was adopted as point of departure. All the activities of the association will underpin this objective. The fynbos industry welcomes Karien Bezuidenhout, as Product Manager, a position which will be shared between Cape Flora SA and SA Olives. Karien, who commenced her duties on 1 November 2015, will also take responsibility for the management of the Joint Market Forum (JMF), SA Flower Export Council (SAFEC) and the administration of the International Protea Association (IPA). Die proses om die statutêre heffing vir 'n nuwe vier jaar siklus te hernu is in werking gestel, nadat voorstelle eenparig by die Algemene Jaarvergadering (AJV) goedgekeur is. 'n Gedetailleerde motivering is teen middel Oktober by die Nasionale Landbou Bemarkingsraad (NLBR) ingedien, waarna die NLBR die normale konsultasie proses met belangegroepe volg. Die beplanning is dat die nuwe maatreëls teen ±April 2016 afgekondig sal word, om met die aanvang van die nuwe seisoen saam te val. Die stabiele befondsing wat spruit uit die heffingsisteem, het Cape Flora SA in staat gestel om gedurende 2015 ook bykomende fondse vir navorsing en ontwikkeling te bekom. Dié fondse spruit uit die Wes-Kaapse departement van landbou se alternatiewe gewasse fonds, die departement van wetenskap en kuns se Post Harvest Innovation Fund, die departement van handel en nywerheid en onlangs ook die Wêreld-Natuurfonds (WWF) se Tafelbergfonds. Assurance of compliance with legal and other requirements is fast becoming the order of the day. The Sustainable Harvesting Programme (SHP), which is a flagship programme for the wild harvesting of fynbos, aims to support their members to be able to trade effectively. They do however also take steps to secure our unique fynbos heritage. The SHP has been able to develop a number of the exciting products such as a Field Guide for Wild Flower Harvesters, Field Assessment Methodology, Harvest Methodology and a Vulnerability Index for harvested species. A central harvesting database with a data-sharing agreement with CapeNature is in its final stage before launching. The SHP aims to be a credible and efficient assurance scheme that serves the entire fynbos industry and has revised the code of Best Practice for Wild Harvesters to be positioned within the Sustainability Initiative of South Africa (SIZA) framework. ALTERNATIVE CROPS 40 / 60 POMEGRANATE ASSOCIATION OF SA POMASA 2 Jack Wittles Chairman 015 has been an important water-shed year for Pomasa and started as an unusually early season. The first harvesting and packing in the Western Province took place in week 6. The earliness of the season led to very rapid ripening of the early varieties. In some instances over-ripe fruit was exported and displayed poor shelf-life with subsequent low or negative returns. In other cases the fruit could not be harvested in time. Despite these quality issues, the 2015 season saw the industry exporting a record of 954 000, 4.2 kg equivalent cartons. The 2015 season saw the industry exporting a record of 954 000 x 4.2 kg equivalent cartons. The Association was finally registered as "Pomasa NPO" and held its first AGM in terms of the Memorandum of Incorporation in July 2015. Pomasa applied for and was granted funding for Post-Harvest Research by the "PostHarvest Innovation Fund". The programme is funded by the Department of Science and Technologyand is managed by FPEF (Fresh Produce Exporters' Forum). The funding is being used for two research projects at the University of Stellenbosch. The first, being supervised by Professor Opara, deals with packing materials and coldstorage regimes. The second, being supervised by Dr Lennox, deals with post-harvest pathogens and how to manage them. Pomasa also received funding from a Minor Crop development fund. This fund is funded by the Western Province Department of Agriculture, and is managed by HORTGRO. These funds have been used to register the NPO and its MOI, as well as to draw up an industry data-base and a comprehensive list of MRLs (Maximum residue levels), for the various chemicals in the numerous countries to which pomegranates are exported to. Pomasa has applied for and been granted a Statutory Levy, starting from the 2016 season and continuing for 4 years. This funding, contributed by the growers, will have to be spent as specified by the NAMC. That is: - not more than 10% of the levy may be spent on administration. - not less than 20% must be spent on transformation. - the balance will be used in accordance with an industry determined budget. HORTGRO ANNUAL REVIEW 2015 41 / 60 SA BERRY PRODUCERS’ ASSOCIATION SABPA Tiaan Steyl Chairman he Berry industry is poised for growth with the number of hectares planted expected to grow by 35% to 800 ha by the end of 2016. T This is mainly due to investment in the establishment of new plantings by three new international entities into the country and on the expansion of plantings by existing growers. Membership of the association has increased. The membership of the association has increased marginally following the establishment of new producers. Engagement with proprietary holders of crop protection solutions to address shortfalls in chemical registrations is ongoing. The formal incorporation of the association as an NPC is imminent and the prospects for this minor crop category continue to look promising. Various technical research projects regarding berry production challenges are to be launched in 2016. ALTERNATIVE CROPS 42 / 60 SA CHERRY GROWERS’ ASSOCIATION SACGA D Koos Pretorius Chairman ie 2014/15 jaar het met moeilike produksie toestande gepaard gegaan. Dit was slegs die baie lae kouebehoefte variëteite wat goeie produksie in die Noorde opgelewer het. In die Suide was die oeste baie laer as in die vorige twee jare. Die reën aan die einde van Oktober en vroeg- November het egter die potensiaal wat in die Noorde was, ook tot niet gemaak. Slegs enkele produsente het die ontydige reën vrygespring. Baie min uitbreidings word in die Noordelike- gebiede beplan, terwyl groot aanplantings in die Suide nog steeds deur 'n tekort aan onderstamme gekortwiek word. Die invoer van onderstamme was nie baie suksesvol nie, maar 'n verdere poging word aangewend. Ons hoofteiken in die nabye toekoms is om die markte na China oop te stel. Die registrasie van kernbelangrike chemiese middels gaan voort. 'n Volledige lys is op die webtuiste beskikbaar. Enige verdere produkte wat benodig word moet aan die voorsitter deurgegee word. Ons wil in dié verband weereens die departement van landbou, HORTGRO en veral Lindi Benic en haar span kundiges opreg bedank. Die Kersie Vereeniging het ook vanjaar by die SA Stone Fruit Producers' Association (SASPA) geaffilieër. Dit is duidelik dat dit die regte skuif was en dat daar baie raakpunte tussen dié twee vereenigings is wat tot voordeel van beide sal wees. Daar is goed gevorder met die oopstel van markte en die RSA1 klassifikasie is gepubliseer. Dít is gedoen met die oog op uitvoere na verskillende Afrika-markte. Om 'n totale ooraanbod van kersies in die binneland te verhoed, sal daar baie meer kersies uitgevoer moet word in die toekoms. Ons hoofteiken in die nabye toekoms is om die markte na China oop te stel. Die huidige seisoen lyk nie te rooskleurig nie. In beide die Noorde en die Suide was die winter baie warm en kort en net tyd sal leer wat met die produksie gaan gebeur. Ter opsomming is die bedryf steeds in sy kinderskoene en die groeipyne is groot. Daar is egter hoop en ons glo dat die moeilike tye oor 'n paar jaar vergete sal wees. HORTGRO ANNUAL REVIEW 2015 43 / 60 SA HONEYBUSH TEA ASSOCIATION SAHTA Eugene Smith Chairman he South African Honeybush Tea Association (SAHTA) is the representative body formed in 1999 to coordinate activities in the honeybush tea industry. T SAHTA's directors are elected from producers, processors, nursery owners and BEE partners. It aims to promote a competitive and profitable honeybush industry in South Africa, equal entry and participation in the industry and the sustainable use of environmental resources. As a unique and indigenous fynbos crop, honeybush has a unique selling point. SAHTA assists with a wide variety of needs in the industry, including: - Promoting the cultivation, sale and export of honeybush tea - Assisting authorities to regulate and control wild harvesting of honeybush - Promoting biodiversity-friendly farming practices and nature conservation - Promoting and supporting product and production research South Africa's honeybush industry is still very young and produces less than 1000 tons of honeybush each year. Most of this crop is exported to countries such as the Netherlands, Germany, the United Kingdom and the United States of America. As a unique and indigenous fynbos crop, honeybush has a unique selling point and significant potential to be marketed and positioned as a niche product in speciality tea markets around the world. ALTERNATIVE CROPS 44 / 60 SA OLIVE INDUSTRY ASSOCIATION SA OLIVE Nick Wilkinson Chairman he 2015 harvest was up on 2014 and olive oil prices have increased by some 30% in hard currency terms on the back of poor harvests in Spain and Italy. T South African production still only contributes just over a third of our consumption. The rising cost of imports due to rising oil prices and depreciating currencies, have favoured local producers but volumes will come under pressure to maintain supply through to next harvest. The quality of oil is world class... The quality of oil is world class as evidenced by numerous international awards won by our producers across the globe and in the International Sol D'oro competition held for the first time in Cape Town this year. A gala event celebrated our own SA Olive competition in Paarl on 3 September 2015, where 19 gold, 60 silver and 10 bronze medals were awarded. Nursery business has picked up and both existing producers and new entrants are again planting olive trees recognising the continued growth in consumption worldwide as consumers become acquainted with the health benefits of using quality extra virgin olive oil in their everyday diet. The olive industry continues to educate and transform their workforce and promotes our cause with government to recognize the olive industry in its national development plan (NDP). The industry is labour intensive, uses less water than competitive crops, has a ready market in import substitution and provides much needed health benefits to a population exposed to increase sugar diabetes, cancer and hypertension. HORTGRO ANNUAL REVIEW 2015 45 / 60 SA PEKANNEUTPRODUSENTE ASSOSIASIE SAPPA Andre Coetzee Voorsitter D ie pekanbedryf is een van Suid-Afrika se snelgroeiendste bedrywe. Met 'n produksie van 10 500 ton in 2015, en aanplantings van 440 000 nuwe bome wat ongeveer 3 500 hektaar se nuwe aanplantings verteenwoordig, raak die plaaslike bedryf al hoe meer 'n wêreldrolspeler. Die vooruitskouing is dat die jaarlikse produksie binne die afsienbare toekoms sal verdubbel. Aanplantings vind regoor die land plaas, met die grootste uitbreidings in die droër westelike streke. Die vinnige groei in die bedryf het te make met die steeds groeiende wêreldwye aanvraag na pekanneute en neute in die algemeen. Die vinnige groei in die bedryf het te make met die steeds groeiende wêreldwye aanvraag na pekanneute en neute in die algemeen. In Asië stel verbruikers al hoe meer in Westerse versnapperings en nuwe produkte belang, wat ook gegeurde neute insluit. Die grootste deel van Suid-Afrika se neute word steeds onverwerk uitgevoer met tussen 10 en 20 persent wat plaaslik verwerk en bemark word. SAPPA is in 1991 gestig en het van 'n klein begin gegroei tot die organisasie wat vandag 'n groot gevestigde bedryf verteenwoordig. Die hooffunksie en doelwit van SAPPA is om as spreekbuis vir die pekanneutprodusente in Suid-Afrika op te tree en om bedryfsaksies tot voordeel van die produsent te koördineer en te bestuur. Weens 'n groeiende behoefte vir navorsing, inligting en tegniese bystand was dit noodsaaklik om aansoek te doen vir 'n statutêre heffing. SAPPA is nou betrokke by: navorsing, inwin en verspreiding van inligting, tegniese bystand, invoer van plantmateriaal, opstel van uitvoerstandaarde, registrasie van spuitmiddels, asook produksie- en aanplantingstatistiek. SAPPA ondersteun ook verskeie suksesvolle bemagtigingsprojekte waar opkomende boere tegniese advies van bestaande pekanneutprodusente ontvang. Die vooruitsigte vir die 2016 seisoen lyk belowend wat die vrugset betref en die hoop is dat die seisoen verder voorspoedig sal verloop, en dat die droogte wat die land tans bedreig, nie die oes negatief sal beinvloed nie. ALTERNATIVE CROPS 46 / 60 HORTGRO ANNUAL REVIEW 2015 47 / 60 CULDEVCO (PTY) LIMITED Dr Leon von Mollendorff Manager uldevco (Pty) Limited is well-geared to effectively and proactively deal with the challenges of the future by continuous optimization of evaluation and selection procedures, and to protect the interests of South African producers internationally. The backbone of this safeguarding policy is formal licensing and the evaluation of agreements with responsible partners in various countries. C The main focus however is to ensure accurate identification and evaluation of stone fruit, pome fruit and table- and raisin grape cultivars that are easy to grow with low risk to producers and that are easy to sell on all markets. It is expected that the export volumes of both Ruby Star and Ruby Sun will significantly increase over the next three to four years. The two experienced evaluators that Culdevco appointed (Dr Iwan Labuschagne for pome fruit and Hein Agenbag for stone fruit and table grapes) during the past 2 years, have made a significant impact on the quality of horticultural evaluation and the accuracy of early identification of promising varieties from the ARC breeding programmes. This process is supported by experienced technical advisors, committed producers and independent third parties to identify those cultivars that will keep all our clients ahead of their competitors. Profits For nine consecutive years Culdevco succeeded to increase its profits and again a record amount were paid over to the ARC as owner of the varieties as well as to the Culdevco shareholders, namely SASPA, SAAPPA, CFPA, DFTS and SATI. The profits generated by Culdevco over the past nine years were re-invested by all Culdevco shareholders into the development of unique deciduous fruit cultivars to the benefit of the Industry at large. Cultivar development Culdevco manages 469 pome fruit, stone fruit and grape cultivars and selections. This number includes 19 apples, 29 pears and pear rootstocks, 44 apricots, 93 nectarines, 89 peaches, 118 plums, 4 stone fruit rootstocks and 73 grapes. Culdevco, in cooperation with the ARC, have now released 45 new cultivars to the South African Deciduous Fruit Industry. More information on all released Culdevco licensed cultivars can be found on the Culdevco website (www.culdevco.co.za). During the last two years Culdevco released a very promising new early red seedless table grape called Joybells. Joybells ripens with Sunred Seedless and has been evaluated over several seasons by some influential table grape growers in especially the Hex River valley. Culdevco have thus far received orders for Joybells for about 250 ha. A second very promising mid-late black seedless table grape selection (G3-4177) is receiving special attention at this stage and will hopefully be released in the near future. CULDEVCO 48 / 60 Two field days were held during the past year to promote the five recently released new unique lower chilling apple cultivars. At this stage over 50 ha of these lower chilling apple were established in especially the Limpopo Province. A further 80 ha were ordered to be planted in the next 2 years in mainly the Limpopo and Western Cape provinces. Although African Delight® plum was only released to the Stone Fruit Industry in 2008, fruit exports of this unique cultivar, with exceptionally high sugars, increased to the third highest plum volumes to be exported (almost 1,2 million cartons) during the 2014/15 season. There were also significant increases in the number of cartons exported of African Rose®, Ruby Star and Ruby Sun plums. It is expected that the export volumes of both Ruby Star and Ruby Sun will significantly increase over the next three to four years. As large number of exciting new red flesh plum selections are currently under evaluation in different evaluation sites in South Africa as well as in Spain. Plant material of all these plum selections are currently being propagated to be established in semicommercial evaluation sites in South Africa, England, France, Spain and also at a later stage in Italy. Marketing During the last year Culdevco visited licensees in England, Spain, Italy and France to market table grapes, plums and low chill apples. As a result of these visits one new stone fruit license and one table grape evaluation agreements were signed. This process is supported by experienced technical advisors, committed producers and independent third parties to identify those cultivars that will keep all our clients ahead of their competitors. Culdevco in cooperation with its licensee in Spain, Viveros Orero, held a very successful fruit exhibition of late ripening plums and clingstone peaches at the annual fruit and vegetable fair in Madrid (Fruit Attraction) during October 2014. A large number of interested Spanish, French and Italian growers visited the display. HORTGRO ANNUAL REVIEW 2015 49 / 60 FRUITFLY AFRICA FFA Nando Baard Manager ith climatic conditions during the 2014/15 season in most of the areas under the FruitFly Africa (FFA) area-wide population management program being favourable for rapid fruit fly population growth, one would have expected FTD's in these areas to be much higher than in previous seasons. W This was however not the case, with population levels in the areas being on par with the 2013/14 season and much lower than in the years previous to this. The budget for attract-and-kill bait stations used in the winter program almost doubled from the previous year... This above average level of population control can be attributed to a variety of factors, including an aggressive winter program, an integrated approach to hotspot management, the fact that aerial baiting commenced before population levels reached peaks and the fact that producer cooperation in and support for the program is increasing. During the winter program, sterile male releases were kept at the summer release rate of 25 million steriles per week throughout the winter. The budget for attract-and-kill bait stations used in the winter program almost doubled from the previous year, to ensure cost effective population management in the period where fruit fly populations are low and concentrated in small areas. Hot spots were treated with both chemical as well as biological control methods to ensure high levels of suppression within these usually inadequately controlled breeding grounds. Aerial baiting started earlier in the season, when population levels were still low, given that these applications are much more effective in maintaining low fruit fly numbers FRUITFLY AFRICA 50 / 60 than bringing them down once they have reached high levels. Control measures, including orchard sanitation, also seems to be increasingly adopted at adequate levels by most producers. In the pilot phase of the Sterile Insect Technique (SIT) program in the Hex River Valley, excellent results were obtained from the aerial release of sterile males. Unfortunately the technology available at that time made it an expensive method of release and it was decided to opt for ground releases in hotspots in the following years. Whilst ground releases do contribute significantly to population control, aerial releases are a more effective way of suppressing whole populations with better distribution of steriles. Release technology has evolved and it is now possible to utilize gyrocopters for cost effective chilled aerial sterile release. FFA therefor conducted release trials over an area of ±2 000ha in the Warm Bokkeveld area utilizing this new technology. The results were encouraging and aerial releases will be expanded to a total area of ±16 000ha in the coming season. ...aerial releases are a more effective way of suppressing whole populations with better distribution of steriles. During the past year FFA has also started developing a user friendly, real-time, web based monitoring application. This will allow users to monitor via GPS that all traps are checked each week and will enable decision makers to have access to daily trapping statistics. The app will be tested in certain areas during the coming season and then it will be rolled out to all areas under the FFA program. It is FFA's mandate to promote and support production, food security, job creation and market access through: - The cost effective implementing of area-wide fruit fly management programs; - Following international best practice of area-wide control; - Suppressing fruit fly populations to internationally acceptable levels; - Implementing and managing a multi-insect early warning system within fruit producing regions. For this reason, FFA is in the process of consulting with producers within its management areas on ways to adjust the methods utilized for population control to ensure optimal and cost effective population control within each area. The program will still be based on international best practice, but since all areas do not have the same crop composition, climatic conditions or topography, there is a need to differentiate control measures between areas to ensure that the above mentioned mandate is met. This process will be finalised before the start of the winter program for the coming season. The strides made in population control and the development of new technologies to achieve this would not be possible without the cooperation of all relevant role-players. As always FFA would like to thank all the individuals and institutions who are helping to keep this pest at bay in the interest of the industry and country at large. HORTGRO ANNUAL REVIEW 2015 51 / 60 SAPO TRUST Dr Phillip Fourie General Manager he different Producer Associations held various strategic sessions with SAPO over the past year. The goal was to revisit and discuss the role and functions of SAPO. T Working groups were established to plan the further detail to be implemented in February 2016 after a restructuring process. The role and functions were formalised after extensive deliberation with the different producer organisations and other stakeholders. The company pioneers variety development and the commercialization of new varieties. SAPO'S ROLE, FUNCTION AND NEW STRUCTURE VISION To be the preferred fruit plant material provider in South Africa. MISSION To develop and supply a comprehensive and cost-effective range of virus-free plant material to the fruit industries in South Africa. The company pioneers variety development and the commercialization of new varieties in South Africa. OWNERSHIP SAPO Trust (SAPO) is owned by the five primary industry associations in the deciduous fruit industry. SAPO TRUST 52 / 60 GOVERNANCE SAPO Trust is governed by a Board of Trustees appointed by the five primary industry associations of the deciduous fruit industry (one each) anda BEE representative, independent chairman and general manager of SAPO. More Trustees can be appointed by the Board of Trustees if needed. STRUCTURE & FUNCTIONS SAPO Trust is currently structured into five Business Units namely: Production: Responsible for establishing and maintenance of foundation and mother blocks, selecting, collecting and distribution of bud wood to clients, supplying of rootstocks and seeds and genetic and phytosanitary inspections of foundation and mother blocks as well as quality inspections of trees and vines ordered through SAPO at contracted nurseries. Nursery: Responsible for foundation nursery activities and propagation of evaluation and contracted trees and vines as well as limited commercial stone and pome fruit trees, vines and rootstocks, maintenance of foundation, budwood parks and rootstock blocks Pathology and Registration: Responsible for quarantine and nucleus blocks, genetic and phytosanitary inspections, virus testing, virus elimination and clone registrations as well as development of new laboratory methods and techniques. Product Development and Evaluation: Responsible for importation of rootstocks and scion plant material on behalf of fruit industries and other clients, intellectual property and contract management, variety listing, client relations, database and horticultural, storage and processing evaluation of varieties and rootstocks and co-operation with independent evaluators. Management: Responsible for overall operational management of SAPO, strategic planning, finances, human resources, public relations, workshop and outsource functions and services. SAPO'S NEW OFFICES AND FACILITIES The inauguration of the new SAPO offices occurred on 8 September 2015. These facilities are leased from Upstars Trade 22 Pty Ltd, a property company owned by the different producer associations. These new facilities will allow SAPO to provide plant improvement services aligned with best international practices to the deciduous fruit industries. OVERVIEW OF PLANT MATERIAL SUPPLIED DURING 2015 The tree fruit nurseries ordered 12% more pome- and stone fruitscions from SAPO this season.There were some shortages in the supply of stone fruit trees on Marianna, GF677, Atlas and Flordaguard rootstocks. A small increase was experienced in the demand for table- and drying grape grafts. HORTGRO ANNUAL REVIEW 2015 These new facilities will allow SAPO to provide plant improvement services aligned with best international practices. 53 / 60 The most popular (36%) rootstock for peach, nectarine and apricot varieties was still the different stone fruit seedlings. During 2015 several developments and contracts were signed especially in Europe for new rootstock and fruit varieties. There was a shortage of apple rootstocks although the demand for apple trees was still high. The demand and supply of dwarfing rootstocks like the Geneva™ series and M9 rootstocks are also increasing. This season the supply of cherry rootstocks to nurseries was problematic and therefore the nurseries could not supply enough trees to producers. Hopefully the problem can be addressed by the multiplication of in vitro plants. The orders for vine rootstocks were static and all orders could be supplied. PRODUCT DEVELOPMENT During 2015 several developments and contracts were signed especially in Europe for new rootstock and fruit varieties. The Florida and Mexico low-chill stone fruit variety contracts were renegotiated and are now fully managed by SAPO alone. SAAPPA , SASPA and the Cherry Association are in the process of establishing enough rootstock sources in foundation blocks to address the continuous shortage. SAPO TRUST 54 / 60 HORTGRO ANNUAL REVIEW 2015 55 / 60 COMMUNICATION HORTGRO #TalkToUs Elise-Marie Steenkamp Group Manager: Communications arlier this year HORTGRO Management identified the need for a new communications strategy. Certain strategic objectives were identified - which over the next year will be rolled out during different stages. E 'Growing Fruit IQ’ refers to HORTGRO's function as generator, innovator and transferor of knowledge... As a first step HORTGRO decided to refresh our logo. In this regard careful consideration was given to all stakeholders and a new strapline was added to boot. HORTGRO - 'Growing Fruit IQ - refers to HORTGRO's function as generator, innovator and transferor of knowledge, as well as grower, enabler and developer of market opportunities, people and communities. HORTGRO takes pride in the overarching role it plays in the fresh produce supply chain. In a world where health matters matter, HORTGRO plans to help stimulate consumption and enhance the positive image of the deciduous fruit industry in all its facets. We plan to showcase our research and development efforts in creating sustainable production practices, food and plant safety and to enhance trade in a globally, competitive world. Taking stock of the past year: Regular technical and news articles were published in the South African Fruit Journal which we share with other industry role-players. The SAFJ is distributed by post, but it can be read online at: www.safj.co.za . Other publications include: New Orchards - an overview of the deciduous fruit industry economic and social development initiatives and the Key Deciduous Fruit Statistics. HORTGRO hosts several divisional newsletters which include: HORTNews and freshNotes. freshNotes is more of a technical nature, while HORTNews informs growers and other stakeholders about industry related events and happenings. Both are sent out electronically and are available on www.hortgro.co.za and www.hortgroscience.co.za Multimedia is here to stay. It has changed the way we communicate forever. Over the last year we have seen spectacular growth in our Facebook pages (HORTGRO and HORTGRO Science), as well as increased traffic to the different websites. We regularly post interesting industry-related news, events, and photographs of people and news happenings on these sites. So make sure that you visit us regularly in cyber space . Our Twitter account is: @Hortgro and so is our new Instagram account. We are currently investigating a podcast service. And you will find over 30 HORTGRO videos on YouTube. Over the past year, we have hosted several industry events. This includes field days, information sessions, seminars, the technical symposium, Student Meet and Greet, Agri's got Talent, HORTGRO Golf Day, Gala Evening to name but a few. We would like to urge you, the grower, to tell us where we can improve, what kind of communication platform you prefer and send us news or photographs from your region. The deciduous fruit industry has the ability to become a shining example of where agriculture should go in South African. Together we can Grow Fruit IQ. COMMUNICATION 56 / 60 HORTGRO ANNUAL REVIEW 2015 57 / 60 BOARDS and Websites SAAPPA - www.hortgro.co.za SASPA - www.hortgro.co.za Voorsitter: Nicholas Dicey Ondervoorsitter: Calla du Toit Voorsitter: Andre Smit Ondervoorsitter: Robert Graaff Elgin / Grabouw / Vyeboom / Villiersdorp (EGV&V) (streek 1) Stephen Rabe Craig Prowse Ceres (streek 2) Linde du Toit Calla du Toit Langkloof (streek 3) Pieter Stemmet Marius vd Westhuizen Wolseley / Tulbagh (streek 4) Charl Herbst Piketberg / Porterville (streek 5) Neil Paterson Klein Karoo (streek 6) Pieter Smit Stellenbosch / Franschhhoek / Somerset Wes (streek 7) Gerard Cooke Vrystaat (streek 8) Michael Leslie Sagtevrugte Ontwikkelingskamer Joseph Hendricks Andre Cloete Piet Kiewiets Ge-koopteerd Keith Bradley Ockie Geldenhuys Paarl, Wellington, Hermon, Simondium (Area 1) Andre Smit Franschhoek, Groot-Drakenstein (Area 2) PH de Necker Stellenbosch, Somerset-Wes, Banhoek (Area 3) Petru du Plessis Elgin/ Grabouw, Villiersdorp, Vyeboom, Botrivier (Area 4) Dana Morkel CA Neetling Ceres, Koue Bokkeveld (Area 5) Robert Graaff Danie Goosen Tulbagh, Hexrivier, Worcester (Area 6) Daniel Theron Piketberg, Saron, Halfmanshof, Porterville, Citrusdal (Area 7) DJ Eigelaar J Iince Barrydale, Montagu, Ladismith (Area 8) M Brewis Hannes Toua Robertson, Ashton, Bonnievale, Buffeljacht (Area 9) GH Smuts Dirkie Swanepoel Langkloof (Area 10) SW Walters Noord-Kaap/ Vrystaat/ Noordwes/ Gauteng/ Limpopo/ Mpumalanga (Area 11 & 12) Bernard Muller Oosthuizen Carel Johannes vd Merwe Ontwikkelingskamer Walter Williams Ismael Motala Ge-koopteerd Michiel Bester Charl Stander Hennie van Noordwyk Leon Eksteen Arno Marais Derick van Zyl DFTS - www.hortgro.co.za Chairperson: Johannes Fourie Vice Chairperson: Chris Krone Koos Baadjies JP Viljoen Handri Conradie Nico Koch Gog van der Colff Abrie Visser Wiaan van Rensburg Paul Louw Llewellyn Adams 58 / 60 SACGA - www.cherries.co.za HORTGRO Science Advisory Council www.hortgroscience.co.za Voorsitter: Koos Pretorius Gerrit Higgo Arno Marais Maasdorp Maree Derick van Zyl Chairman: Stephen Rabe Louis von Broembsen Matthew English Grant Smuts Linde de Toit Joseph Hendricks Charl Stander William Myburgh SAHTA - www.sahoneybush.co.za Cape Flora SA - www.capeflorasa.co.za Voorsitter: Lynn Hoffman Onder-Voorsitter: Anton Rabe Thys Basson Pierre Vermaak Lesley Richardson Neil Hall Johan Gerber Marie Knight Japie Steenkamp Simon Chennels POMASA - www.sapomegranate.co.za Chairperson: Jack Wittles Hannes Beukman Johann Everson Carnel Geddes Niel Maree Jorrie Mulder Christo Nortje, Donald Spence Willem Van der Merwe Niel Vos SABPA - www.saberries.co.za Chairperson: Tiaan Steyl Vice Chairperson: Sean Tager Chrisleo Botha Jean Kotzé Trevor McKenzie Ryan Davies Chairperson: Eugene Smith Marlise Joubert Johan Kritzinger Quinton Nortje Piet Kiewiets Sidney le Fleur Freek Eksteen Ken Dodds SA OLIVE - www.saolive.co.za Chairperson: Nick Wilkinson Vice Chairperson: Robert Claasens Barry Anderson Gerrie Duvenage Pieter du Toit Reni Hildenbrand Andries Rabie Tiaan Ras John Scrimgeour Pieter Vorster Kelly White Steve Wilson SAPPA - www.sappa.za.org Chairperson: Andre Coetzee Vice Chairperson: Albert Bouwmeester Heiko Meier Bertus van Zyl Philip Antrobus Alvin Archer Johan Coetzee Dries Duvenhage Ivan Otto Hanru Pienaar Morne Ross David van der Merwe Pieter van der Merwe HORTGRO ANNUAL REVIEW 2015 59 / 60 Culdevco - www.culdevco.co.za Voorsitter: Dappie Smit Anthony Dicey Nicholas Dicey Kobus Eigelaar Leon Eksteen Chris Krone Anton Rabe Eurica Scholtze Wiehahn Victor Willem Bestbier Bestuurder: Leon von Mollendorff Fruitfly Africa - www.fruitfly.co.za Voorsitter: Anton Rabe Ondervoorsitter: Chris Faure Keith Bradley Roleen Carstens Anton Viljoen Dappie Smit Hennie van Noordwyk Jan Hendrik Venter Wiehahn Victor Bestuurder: Nando Baard SAPO - www.saplant.co.za Chairperson: P Dall P Fourie (SAPO) A Dicey (CPA) C du Toit (SAAPPA) M Oosthuizen (SASPA) A Kirsten (SATI) D Smit (DFTS) W Williams (BEE representative) 60 / 60 email: info@hortgro.co.za www.hortgro.co.za Tel +27 (0)21 870 2900 Fax +27 (0)21 870 2915 258 Main Street, Paarl 7646 - Western Cape PO Box 163, Paarl 7620 - South AFrica