PRESENTATION ON THE PROGRESS MADE ON IMPLEMENTATION OF THE POULTRY TASK TEAM RECOMMENDATIONS

1. PRESENTATION ON THE PROGRESS MADE ON IMPLEMENTATION OF THE POULTRY TASK TEAM RECOMMENDATIONS PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES FEBRUARY 2018

2. Presentation Outline Acronyms Acronyms The Poultry Task Team Global Consumption of Poultry Global Trade Action Items assigned to DAFF • Packaging and Quality • Disease Management • Microbial Monitoring • Residue Monitoring SPS and TBT principles Conclusions

3. Acronyms AGOA - African Growth Opportunity Act ALOP - Appropriate Level of Protection AMIE - Association of Meat Importers and Exporters APA - Agricultural Products Act APAP - Agricultural Policy Action Plan DAFF - Department of Agriculture, Forestry and Fisheries DoH - Department of Health EU - European Union FAO - Food and Agricultural Organisation HPAI - Highly Pathogenic Avian Influenza IQF - Individually Quick Frozen NRMP - National Residue Monitoring Programme RAAVC - Revitalisation of the Agricultural Value Chain SPS - Sanitary and Phytosanitary TBT - Technical Barriers to Trade The dti - The Department of Trade and Industry WTO - World Trade Organisation

4. Formation of the poultry task team The task team was formed after the AGOA negotiations mainly to address concerns from the poultry Industry. The chairmanship of the task team is with the DTI. The task team met from January 2017 up to October 2017. The decisions where also captured in a form of action lists with assignment of responsibilities to team members.

5. Global Consumption of Poultry 5

6. Global trade Global Trade USD$ 17,9 billion • Major importers • Asia • Middle East • Russia • Africa • European Union • Major Exporters • USA • Brazil • Products • `Whole bird frozen products • Raw products (IQF cuts) • Processed meat 6

7. Action Items assigned to DAFF Packaging and Quality • Fully Packaged imports • Enforcement under the Agricultural Products Standards Act • Brining Certification Disease Management • Highly Pathogenic Avian Influenza Microbial Monitoring Residue Monitoring

8. Packaging and Quality Summary of Action Progress and constraints Upon proper evaluation and analysis of the current regulations, it was established that it would not be possible to change the quality standards due to the following reasons: According to the World Trade Organization (WTO) Agreement on Technical Barriers to Trade, technical regulations and standards including packaging, marking and labelling requirements, and procedures for assessing of conformity with technical regulations and standards shall not create unnecessary obstacles to international trade. Imported products cannot be treated differently from local produced poultry meat products. How the poultry products are shipped into the country, in bulk or already packaged cannot be restricted in as much as there are factories that produce and package their product locally. In other words, the true test is whether the product when finally sold to the public complies with packaging and labelling standards regardless of whether it is imported or not. Desired short and long-term outcomes • Imported chicken to come fully packaged for the South African market. 8

9. Packaging and Quality continues Summary of Action Progress and constraints It is not within the remit of the Agricultural Product Standards Act 119 of 1990 to regulate how regulated products should be shipped but rather how the product should be presented when sold. In the final analysis, products sold in the Republic of South Africa would, ultimately, have to comply with the published poultry meat regulations. Work continues with the Department of Health (DoH) to address meat safety matters. Desired short and long-term outcomes • Imported chicken to come fully packaged for the South African market. 9

10. Packaging and Quality Summary of Action Progress and constraints Achieved. The Agency for Food Safety, an Assignee, is implementing the regulations as of June 2017. Desired short and long-term outcomes • Enforce grading regulations under the Agricultural Products Act (APA). Increase intensity under the APA and increase capacity at inspection points. 10

11. Packaging and Quality Summary of Action Progress and constraints Work in progress in terms of: Procedures to conduct assessment of the exporting country systems are being developed. Developing clearance procedures that achieve appropriate brining levels. Providing recognition of export controls through, for example, exemption from routine inspection. Conducting verification procedures for example, occasional random sampling and analysis of products upon arrival. Desired short and long-term outcomes • Develop a system for the certification of brining level. 11

12. Disease Management Summary of Action DAFF Response Improved disease management is critical for sustainable development of the poultry industry. Effective disease control is captured in Operation Phakisa, Agricultural Policy Action Plan (APAP), Revitalisation of the Agricultural Value Chain (RAAVC) and the Veterinary Strategy. This includes pre-border, border and post border interventions in disease control. The Department of Agriculture, Forestry and Fisheries (DAFF) has amended its approach to authorizing imports of poultry from trading partners. The Portfolio Committee on Agriculture, Forestry and Fisheries informed of outbreak of HPAI in South Africa. An outbreak of HPAI last year and reports continue to be a concern. HPAI continues with impact on ostrich, ternes, penguins. • High disease pressure with high socio-economic impact • Food security • Poverty alleviation • Provision of employment opportunities • Threat of new diseases or new outbreaks through trade. • Urgent need for improved disease management. • Inform principals about effect of HPAI. 12

13. Microbial Monitoring Summary of Action DAFF Response DAFF has an existing Standard Operating Procedure (SOP) for Microbial Monitoring. A revised procedure manual was drafted and distributed to stakeholders for inputs, the Association of Meat Importers and Exporters (AMIE) has challenged the Department on its implementation. DAFF is currently developing a comprehensive microbiological programme (imported and locally-produced meat). A successful implementation of any procedure manual, be it the existing one or a revised one, requires additional funding for creation and filling of inspection posts at ports of entry. The manual also requires officers to move to cold stores and processing plants throughout the day to monitor products and collect samples. This also requires funds for logistics. • Introduce and apply a new procedure manual for the microbiological monitoring of imported meat. 13

14. Residue Monitoring Summary of Action DAFF Response A National Chemical Residues Monitoring Programme was designed and implemented, however, the funding for the programme was inadequate to conduct a full monitoring as desired. Engaging with National Treasury to get the necessary additional funding for a full and statistically significant programme. Complete the design and fully funded implementation of a National Residue Monitoring Programme (NRMP). 14

15. Matters to be considered in implementation of SPS and TBT measures Basic principles for implementation of Non Tariff measures in terms of the WTO Least trade-restrictiveness: Measures should be no more trade restrictive than necessary to achieve the appropriate level of protection; Scientific justification: The measures should be based on science and on an assessment of the risks involved; Harmonization: Members are encouraged to base their SPS and TBT measures on international standards set by international standard setting bodies; Equivalence: Members should recognize that different measures can achieve the same appropriate level of protection (ALOP); Non-discrimination: Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) measures should be applied equally to imports and similar products produced locally. Members should not arbitrarily discriminate between trading partners where identical or similar conditions prevail; Transparency: Reliable and accurate information on existing SPS and TBT should be made available. New or revised measures should be notified in accordance with procedures established in international bodies.

16. Conclusion Addressing current challenges should have a measured approach, taking into consideration the growth of the sector in totality. Application of any measure relating to the WTO has to be within the confines and provisions of the WTO . 16

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