MINUTES OF THE DECIDUOUS FRUIT ANNUAL EXPORT COORDINATING MEETING HELD ON 13 JULY 2006, AT ARC INFRUITEC, OLIVE GROVE AUDITORIUM IN STELLENBOSCH, AT 09:00.

ATTENDANCE

M. Holtzhausen (Chairperson) DoA MikeH@nda.agric.zaA. Baxter DoA AliceB@nda.agric.za M. Silimela DoA Mashudus@nda.agric.za C. Modise DoA ChristinaM@nda.agric.zaK. Mashala DoA KhomotsoM@nda.agric.za

P. Tshikhudo DoA PatrickT@nda.agric.zaF. Möller DoA FrancoisM@nda.agric.za M. Reyneke DoA MikeR@nda.agric.zaL. Benic DFPT lindi@dfpt.co.zaG. Hendrikse DFPT george@dfpt.co.za

Susanne de Waal Afrifresh/Sunpride Susanne@afrifresh.co.za J. Labuschagne Capespan

johan_labuschagne@capespan.co.zaJ. Levings Two-a-Day john@tad.co.zaS. van Wyk PPECB sarelv@ppecb.comH. Claassens Kromco henniec@kromco.co.zaAlbe Nel CFG albe.nel@cfg.co.zaTanith Freeman CFG tanith.freeman@cfg.co.zaKen Kilpin DLC Logistics ken@dlclogistics.co.zaAnneree Human Delecta anneree@delecta.co.zaLouise v.d. Merwe The Grape Co lvs@thegrapeco.co.zaHerman Louw Hoekstra herman@hoekstraexport.co.zaA du Toit Kromco andred@kromco.co.zaHanlie Wessels DoA-FSQA HanlieW@nda.agric.zaMike Grobbelaar Colors mike@colorsfruit.co.zaLize Ferreira JDK lize@jdk.co.zaSuzette Gilfillan DFPT Research suzette@dfpt.co.zaBarry Higham Cape Reefers barry.higham@capereefers.co.zaJenny Bakey Fedfa Exports jenny@fedfa.co.zaRobbie Robinson PPECB robbier@ppecb.co.zaFrancois Nel EXSA francois@exsa-exp.co.zaG Foster SA FPTP g.foster@mweb.co.za

Pieter Visser Afrifresh pieter@afrifresh.co.zaConstant Smit Kromco constants@kromco.co.zaIan McMaster Maerskline afrrefops@maersk.comZorina Dawood DoA ZorinaD@nda.agric.zaRia Wentzel DoA RiaW@nda.agric.zaAlton Afrifresh/Sunpride alton@afrifresh.co.zaEnslin EXSA enslin@exsa-exp.co.zaS Oosthuizen Cape Fruit Coolers steve@cfcoolers.co.zaF Siebrits Capespan francois_siebrits@capespan.co.zaJv Schalkwyk Capespan johan-v.Schalkwyk@capespan.co.zaE Stroebel Capespan eriks@capespan.co.zaJan Coetzee 4 Seasons jan@4season.co.zaFrikkie van Tiddens PPECB frikkie@ppecb.comAndre de Vries SAFE andre@safe.co.zaJohan Bosman SA Marine & Maersk kbosman@za.safmarine.comMadre Adonis DoA MadreA@nda.agric.zaTebogo Chipane DoA TebogoMa@nda.agric.zaD Smith FCS Donovan-smith@fruitcare.co.zaRobin Patterson FPT robin_patterson@fpt.co.zaRobert Guillermo USDA, AFHIS rguillo3@yahoo.co.zaDirk Smit USDA, AFHIS Dirk.J.Smith@AFHIS-USDA.co.zaDanie Klein Cape Five danieklein@capefive.comAmelta Maltman Katope Cape amaltman@katopecape.co.zaDanie v.d Merwe Katope Cape danie@katopecape.co.zaRowen v.d Vyver WP Fresh Dist. rowan@wpfresh.co.zaManie Carstens WP Fresh Dist. manie@wpfresh.co.zaKen Pringle Univ. of Stellenbosch klp@sun.ac.zaShelley Johnson Univ. of Stellenbosch (DFPT) sjohnson@sun.ac.zaCharl Joubert In Season charl@inseason.co.zaPieter van Schalkwyk Intertrading Pieter@intertrading.co.zaAndre Rossouw Le Roux andre@lerouxgroup.co.zaChrsitof du Plessis Le Roux christof@lerouxgroup.co.zaJan van Nes Le Roux janvn@lerouxgroup.co.zaCharl van Den Berg Vintage vintage@vyebosch.co.zaJulia Letswalo DoA JuliaL@nda.agric.zaAnette Pretorious FPEF pa@fpef.co.za

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Tony Letsoalo DoA TonyL@nda.agric.zaDaniel Schietekat De Lecta Daniel@delecta.co.zaJaco Moelich Fruitways jaco.moelich@fruitways.comBarnie Hickman Molteno Brothers abh@moltenobros.co.zaShaun Coetzee PPECB shaunc@ppecb.comFrancois Smit PPECB francoiss@ppecb.comHein Coetzee Dole hein-coetzee@za.dole.comLibby Hobson Capespan Elizabeth_hobson@capespan.co.zaAndries Mouton Paltrack andries@paltrack.co.za

ITEMS DISCUSSIONS/DECISIONS RESPONSIBLE

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1. Welcome and objective of meeting

Mr Holtzhausen welcomed all the participants and outlined the purpose of the meeting, general background and issues to be discussed.

The main aim of the meeting was to critically look at what happened last season and to improve on all the problem areas encountered. Decisions will be taken for the next season in order to enable South Africa to comply with the phytosanitary conditions of the importing countries.

He emphasized the need to abide by due dates and the importance of complying with the relevant protocols and requirements.

In order to maintain the market access, all the role players concerned must be accountable and share responsibilities in this regard

South Africa must make sure that all the measures applied are in line with the WTO - SPS Agreement, IPPC and international standards.

He also emphasized that registration is the confirmation by a producer that he/she is complying with and following all the relevant GAPs and quarantine requirements for the specific markets.

2. Attendance The Chairperson requested all participants to ensure that they complete the attendance register so that they can receive the minutes.

All participants

3. Finalization of Agenda The Agenda was confirmed. The following item added to the agenda-

SOP for Traceability The following items were deleted from the agenda:

Technical – Cold Chain Persimmons to Israel

4. Overview of 2005/2006 Mr Möller provided a presentation covering: Mr Möller

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Export season DFPT statistics and volumes of deciduous fruit exports for the 2005/2006 season, and he congratulated the organic Grape producers for not having rejections. (Presentation

attached) Overview of PPECB cold sterilization, cold treatment

certificates (Presentation attached)

Overview of problems with regard to Phytosanitary

Certification and registration of PUCs, pack houses and inspection points

Mr Möller reported that immature Mealybugs and the inability to identify them using PCR caused the rejection of Pears for USA. Ms Benic noted that she provided recent relevant SA publications on mealybugs to Ms Welma Pieterse.Decision: Mr Nolan Africander (DoA DPH Diagnostics Division) will be requested to set up an expert discussion group on pest identification, including experts from ARC and the University of Stellenbosch.For more information contact NolanA@nda.agric.za

Mr Holtzhausen indicated the following: All production unit(s) must comply with the phytosanitary

requirements of the respective special programmes; There is sometimes of high rate of interceptions and this

should be avoided – it is very important to note that high interception rate may cause South Africa to lose a market;

It is important to make sure that GAPs, SOPs, guidelines are followed at all times, and that there is accurate documentation / record keeping to support compliance and

Mr Nolan Africander

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traceability; Good communication and shared responsibility between the

DoA and all the other role players is vital. An alternative mitigation for fruit fly has been requested

from Iran NPPO

4.2 Perspective of different role players/ stakeholders

4.2.1 Growers Mr Hendrikse emphasized: that producers have to take responsibility regarding their

export programme/s- compliance with control of regulated pests during production.

the enforcement of GAPS and importance of orchard registration and correct completion of the forms to ensure full compliance to avoid rejection of consignments.

For more information contact george@dfpt.co.za / see the attached documents

All producers

4.2.2 Pack houses Mr Classens provided the presentation and emphasized that (Presentation attached): Fruits for different markets to be separated by 1.2 meters, They should be insect proof, have sufficient light for

sorting, availability of plant protection specialist, pest control, sanitation, and ensure clean packing material and

correct marking requirements. For more information contact henniec@kromco.co.za

4.2.3 Exporters Mr Grobbelaar indicated that: Special markets are very important to the industry; there is a competition pressure on SA from Argentina, Chile,

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Brazil and other South American countries; South American countries are supplying more products to

Northern America and Europe South African industries are also facing challenges due to

the exchange rate (strong rand). South Africa needs to grow more and make sure that they

comply with importing market needs in order to stay competitive with other international markets.

For more information contact mike@colorsfruit.co.za4.2.4 Shippers Mr Higham provided the presentation. He indicated that:

Availability of ships from the export ports determines the supply and the demand of ships and cargoes worldwide.

Deciduous fruit industry is well served with normal and special shipping markets, with a base linear type of services for the peak shipping periods.

Extra competition in the shipping services is always good to keep the world economic forces operating in South Africa.

Freight rates have been generally raised since mid-2003 due to shipping demand which outstripped the supply of shipping space.

To minimize the costs shippers need to :- supply accurate shipping volumes and flow forecasts to

shipping lines- keep as close as possible to booked volume and don’t leave

shipping lines with empty space due to last changes in volumes,

- keep the required documents flowing to the lines as required.

For more information contact barry.higham@capereefers.co.za4.2.5 Freight Forwarders Mr Smith:

emphasized that strict time frames and accuracy of information are very important for the industry to adhere to in order to ensure the desired results.

pointed out that incorrect details such as provision of wrong PUC by producer negatively affect the end results.

Noted the problem regarding lack of DoA officials and indicated that more capacity is required at various ports in

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order to avoid any delays in phytosanitary certification. highlighted that lack of containers lead to unnecessary

costs resulting from cancellation fees. Emphasized that there should be coordination between

exporters and forwarders to eliminate incorrect information and loss of products

For more information contact Donovan-smith@fruitcare.co.za5. FBO Registration (FSQA) Ms Hanlie Wessels:

Explained that FBO registration is used for food safety and traceability and it includes the registration of PUCs, PHCs, Transporters, silos, sea port terminals, cold storage facilities, Harbor and airport terminals, and other facilities.

FBO codes are allocated by FSQA. Directorate Plant Health uses the codes relating to

Production Units (PUCs), Pack houses (PHC) and Inspection Points (also the terminal/port facility in some cases) that are already allocated by FSQA for phytosanitary market registration;

Indicated that transport operators should register to ensure and facilitate traceability in terms of origin of non-complying fruits;

Emphasized that the FBO registration document has been modified to ensure that there is no confusion between FBO application / registration and special market registration.

Indicated that the FBO registrations will be updated and displayed on the DoA website, and that the relevant forms would soon be sent out.

Mr Holtzhausen emphasized that filling in a registration form for special market export programmes does not guarantee approval: compliance with the requirements of the relevant special market/s must be ensured and will be verified.

Ms Hanlie Wessels

6. Registration of production unit(s),Packhouses and Inspection points and criteria for 2006/2007

Mr Silimela provided the presentation (Presentation attached) Mr. Holtshauzen/ Mr. Silimela

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For More information, contact MashuduS@nda.agric.za Mr Silimela emphasized:

the importance of registration for the special markets as an initial point of ensuring that a production unit or packing house complies with the quarantine requirements stipulated on the protocol by the importing countries NPPO.

that registration of production units, pack houses and inspection points is not only just about completing and signing the registration forms, but to show that the producer(s) and other role players understand the import requirements for the specific market and to confirm that he/she complies with all the phytosanitary measures of the importing country.

Industry commented that: the registration amount is very expensive and requested

DOA to look at the matter again and negotiate a better implementation of tariffs.

Mr Holtzhausen: undertook to take this back to the National Treasury and to

provide feedback to the Exporter’s Forum and relevant stakeholders when feedback is received.

He emphasized that if no proof of payments, there could be no registration and that payments could be done at the relevant offices namely Stellenbosch and Pretoria

To enable applicants for participation in special markets to make timely check-Ups on the status of their applications, DoA will place the relevant timeframes on the website (e.g. planned date when database will be placed on the website, etc)

7. Special Market Programmes

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7.1 China7.1.1 Table Grapes Mr Silimela provided the presentation (Presentation attached)

For More information, contact MashuduS@nda.agric.zaMr Silimela indicated that

His presentation was based on the recently received draft protocol which is still under negotiation, but the aim of the presentation was to be proactive and to make the industry aware of the potential requirements.

Preliminary registration will be done for the 2006/7 season and producers must comply with the protocol requirements. The registered facilities will be on hold until the signing of the protocol.

DOA would be responsible for monitoring of GAPs implemented according to the relevant IPPC ISPM’s and protocols, and make sure that phytosanitary inspection is done accurately

Mr Holtzhausen emphasized that registration for Table Grape exports to China would be preliminary: an indication of the intention to export, until the protocol is signed by the relevant ministers of the two countries. So the tariff will not apply, and the applications will not be placed on the website but communicated through the Exporter’s Forum and relevant growers’ association.

Mr. Silimela

7.2 Israel7.2.1 Table Grapes Ms Baxter thanked all the role players involved in the approval of

Hex River and inclusion of the application of as an official mitigation treatment.

DOA has received a revised protocol from Israel but Berg River area is not yet included. DOA will follow up with the Israeli NPPO again regarding this matter.

Ms Alice Baxter/ Ms Khomotso Mashala

7.2.2 Persimmons Presentation was not provided due to the absence of exporters/

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producers participating in this market.7.3 Mexico Ms Baxter indicated that Mexico replied to the proposal (suggested

by SA industry) requesting changes to the application of the protocol, aimed at facilitating exports. DoA received feedback few weeks ago. The proposal was turned down and all the requirements as stipulated in the protocol are still unchanged.

DOA will obtain further input from Industry and communicate with NPPO Mexico in the near future

Ms Alice Baxter/ Ms Khomotso Mashala

7.4 Taiwan Mr Holtzhausen indicated that there are no changes regarding exports to Taiwan.

7.5 USA Mr Silimela provided a presentation. Contact MashuduS@nda.agric.za for information.

Ms Benic emphasized that the USA’s current import requirements for non-organic grapes from SA is not workable because of the 24-day cold treatment for FCM followed by fumigation with Methyl Bromide.

Mr. Silimela

8. Other Steri markets Robbie Robinson provided a presentation on Cold Treatment Protocols (see the attached documents).

Mr. Robbie Robinson

9. SOP for Traceability Ms Natalie Thomas provided a status report for the national Ms Natalia Thomas

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traceability initiative in terms of statutory requirements for food safety She pointed out that all the fruits to be exported also need to comply through understanding the interpretation of export requirements and the ability to apply traceability - which involves registration of the facilities involved.For more information please contact NataliaT@ppecb.com

10. Confirmation of logistical issues for 2006/2007 season

10.1. Invitation of inspectors Invitations for inspectors to be sent by: USA - 29 September 2006 Mexico - 29 September 2006 Taiwan - 29 September 2006*** Israel - 29 September 2006 China - As soon as protocol is signed

***Request to proceed with exports prior to arrival of Taiwan inspector.

Mr. Silimela

10.2. Closing dates for 2006/2007 registration

Closing dates for registration: Israel - 29 September 2006 USA - 27 October 2006 Mexico - 27 October 2006 Taiwan - 27 October 2006 Preliminary date for China Table Grape- 29 September

2006

Mr. Silimela

10.3. Inspection points DoA is responsible for inspection schedules (Contact FrancoisM@nda.agric.za for more information)

There will be no re-issue of Phyosanitary certificates

Inspection points to be utilized for 2006/2007 season are as follows:1.1. USAUSA

Apples & Pears –Kromco, (Registered Packhouse/CA Rooms) Two-A-Day, CFG Ceres

Grapes - FPT,& Piketco, Cold Harvest

Mr. Möller

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2. IsraelIsrael (Grapes) FPT Cape Town &

Persimmon -Arisa Swellendam

3.3. Mexico (Apples & Pears)Mexico (Apples & Pears) Registered CA rooms and pack housesRegistered CA rooms and pack houses

4.4. Taiwan (Apples)Taiwan (Apples) Kromco, Two-A-Day, Molteno, CFG, FPT, Cold harvest Paarl

5. China (Table grapes) Grapes = FPT, Cape Town, Durban and PE as well as

MFT in Durban ** (As soon as protocol is signed)6. Iran

Grapes/Apples = FPT, Cape Town, Durban and PE as well as MFT in Durban, CFG

** Should the protocol be signed

10.4. Working hours The working hours were determined as follows: • Official working day of 8 hours, from 7:30 to 16:00.• Overtime of two hours per day which include traveling time • Overtime during weekends and public holidays will be

rendered provided there is availability of personnel and it will be done on a voluntary basis.

• Maximum overtime of 10 hours/week(See the attached presentation)

Mr. Holtzhausen

10.5. Risk Management procedure • USA – New phytosanitary certification procedures to

ensure issuance of both PC and PPQ 203– Procedures to be finalized to ensure that document

are issued prior to departure of shipMr Holtzhausen emphasized that:

Mr. Möller/Mr. Holtzhauzen

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GAPs and orchard sanitation should be executed by all producers

It is important for all production units, pack houses and other facilities to comply with the phytosanitary requirements of the respective special programmes

It is very important to note that one interception might cause South Africa to lose a market or otherwise stricter import regulatory actions could be applied.

It is important to note that DoA cannot inspect to correct but inspects to verify if the consignment complies with the requirements of the respective market.

10.6. Consignment size • Mexico-Apples and pears – 20 pallets

• USA-Apples and pears – 20 pallets-Grapes – 10 pallets

• ISRAEL-Grapes - 10 pallets-Fruit harvest per registered block

• IRAN-Citrus/grapes - 10 pallets

• Taiwan-Apples - 10 pallets

Mr. Holtzhauzen

11. Closure Mr Holtzhausen thanked all participants for their attendance. Mr Labuschagne thanked DoA and PPECB for their roles in ensuring successful exports.The Meeting was closed at 14:00.

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