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By: Jannie de Villiers Executive Director

AGRIBEE INDABA 6/7 December 2005 On behalf of: S A Agricultural Processors Association & S A Chamber of Business & Multinationals. By: Jannie de Villiers Executive Director. Introduction. Comments – 20 December 2004 Consulted amongst members Represented at Steering Committee

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By: Jannie de Villiers Executive Director

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  1. AGRIBEE INDABA6/7 December 2005On behalf of:S A Agricultural Processors Association& S A Chamber of Business& Multinationals By: Jannie de Villiers Executive Director

  2. Introduction • Comments – 20 December 2004 • Consulted amongst members • Represented at Steering Committee • Presentation at Steering Committee on 1 December 2005

  3. Codes of Good Practice • Outstanding codes create a problem

  4. Ownership of Shares • Shares of listed companies not in our control • Shares owned by pension funds and trusts • Shares transferred to staff – loans and voting

  5. Procurement • Link to land targets • Some processors 70% of cost is raw materials • Profile of emerging farmers (Preference towards animals) • Land claims and low profitability hinders transformation

  6. Procurement (cont) • Farmer sells 30%, not complying in next year • Droughts/Net importers • Structural change to traders

  7. Monitoring • Capacity to be ready • Representation on Council • Annual audits: Costly • Penalties for non-compliance • Directives (like SARS) • Scorecard for Government deliverables

  8. Funds • Financing cost in competition with other sectors • CSI/Enterprise development the 5% of EBIT needs clarification

  9. Cost of doing business in SA • Procurement • Monitor/Audit • Admin burden

  10. Impact of BEE on SMME’s • Regional constraints • Admin burden • Audit requirements • One person owners

  11. Multinational companies • Forum formed • Own submission • Ownership problems • Level playing field

  12. CONCLUSION • Support for process • Clarity before we start: K I S • Way forward: Outline the process post Indaba

  13. Thank You

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