Thank you very much for the opportunity to make a submission to your committee.
The Milk Producers Organisation, through its holding company MPOSA (Pty) Ltd, is the largest producer organisation in South Africa. Is it also the largest and most active voluntary producers organisation in the world. Since deregulation, the MPO was forced to increase its services to the dairy industry, and in particular the dairy farmer, and to achieve this, diversified its services by creating strategic business units to cover most of it’s activities. These units are self funding and provide services to both the commercial and emerging dairy farmer in South Africa. Because practically 100 % of its funds are collected via the commercial industry most of its services are currently aimed towards the commercial sector. The industry has however, at own cost, spent substantial time and money on also developing the emerging farmer and plan through its affiliation with Milk SA to create an emerging farmer desk should its application for a statutory levy be successful. The following funds have been invested back into the industry since 1994.
All the above funds have been spent on agricultural development over the last decade mainly in die dairy industry.
ACTIVITIES
Through its affiliates, the MPOSA-group are involved in a very large number of activities, too numerous to do justification to in the course of this document. However, the following were some of the main activities of the affiliates of the group:
MPO
The MPO has been instrumental in developing dairy policy with the assistance of the Department of Agriculture and Department of Trade and Industries by means of its Dairy Development Initiative document. This document is now forming the basis of the strategic plan as employed by Milk South Africa.
The MPO has been instrumental in developing a set of tariffs for the dairy industry and is currently involved in the process of applying for new tariffs.
The MPO has been instrumental in transferring technology by means of personal meetings and training sessions with farmers throughout the country.
The MPO has also been active in the development of emerging farmers on a number of projects.
AGRI INSPEC
Agri Inspec is a forensic inspection agency that has been instrumental in recovering tariffs to the tune of several hundred million Rand, to the benefit of government. Agri Inspec works for both the dairy industry as well as several other agricultural industries. Agri Inspec is arguably the most effective forensic inspection agency in the country.
THE DAIRY MAIL
The Dairy Mail is the mouthpiece of both the MPO and the dairy industry and is instrumental in transferring technology to both commercial and emerging farmers as well as to the processing industry. The Dairy Mail is the second most popular agricultural publication in the country.
THE INSTITUTE FOR DAIRY TECHNOLOGY
The Institute for Dairy Technology is involved in training both commercial and emerging farmers. It has access to numerous organisations operating in the dairy industry. The institute has launched two books aimed specifically at the emerging farmer.
THE ACADEMY FOR INNOVATION
The Academy for Innovation is assisting farmers to cross the bridge between intervention and the free market. Its main aim is to prepare both commercial and developing farmers and labourers to become more innovative and to be able to capitalise on opportunities that come across their way.
AGRIBONUS
Agribonus is a participation loyalty scheme assisting the MPO to keep track of its members. The scheme allows the MPO to do certain research studies as well as to obtain data from its members and keep the MPO database up to date. The current Agribonus database consist of 55 000 farmers throughout South Africa and Namibia.
AGRI TRAVEL & TOURS
Agri Travel & Tours is a travel agency responsible for arranging study tours both inward and outward bound for mainly dairy producers as well as other agricultural disciplines. The organisation is also involved in the organisation of agricultural conferences and expo’s such as the All Africa Dairy Expo.
FURTHER INPUTS/PROGRAMMES
The MPO and its associated organisation Milk South Africa is planning a whole range of different activities and projects for the future:
A special regular supplement in The Dairy Mail aimed at emerging farmers.
Developing desk for emerging farmers.
Establishment of a co-operative for emerging farmers in the Zuurbraak area.
Educational advertising to assist in nutritional programmes for the South African consumer as well as the formation of a school milk programme.
More emphases on the training of emerging farmers and farm labourers assisted by educational material.
RELATIONSHIP WITH THE DEPARTMENT OF AGRICULTURAL AND LAND AFFAIRS
The relationship between the MPO/MPOSA and the Department of Agricultural and land affairs is cordial but can be improved.
I trust that the above is to your satisfaction. Please not hesitate to contact me should you need any further information.
Kind regards
_______________________ AJB DE JONGH
MANAGING DIRECTOR