The RPO protects and promotes the interests of commercial red meat producers within the value chain of the red meat industry. The RPO is a collective bargaining organisation that improves the economic prosperity of its members.

The RPO NC (Provincial Level) and RPO (National Level) are financed by voluntary contributions.

The RPO focuses on key business tasks such as:

• Animal Health
• Import Monitoring
• Rate Protection
• Trade Agreements
• Counselling and Training
• Negotiations on Legal frameworks
• Promoting the economic position of producers and industry stability
• The promotion of producers’ interests and affairs with government and non-governmental organizations
• The establishment and promotion of a positive image of the red meat industry and the products
• Predator Control
• The prevention of stock theft
• The bargaining for the reduction of input and marketing costs
• Information about Production systems
• Market Information
• Research

THE RPO’S INSPECTION IN AND PARTICIPATION TO STRUCTURES

The RPO has direct links, representation and participation in the following institutions to protect and promote the interests of the red meat producers:

• National Agricultural Marketing Council
• National Agricultural Research Forum
• Onderstepoort Biological Products (OBP)
• Onderstepoort Veterinary Institute (OVI)
• Wild Ranching South Africa (GRSA)
• National and Provincial stock theft forums
• Organisations of Organized Agriculture
• Agri SA Operating Units
• Commodity Trusts
• Livestock Producers Organization of Namibia (NLPO)
• Predation Management Forum (PMF)
• Breeding Societies
• National and Provincial Government Departments
• Training and Research Institutions
• Southern African Livestock and Red Meat Forum (SALMF)
• Coordinating Committee for Welfare of Livestock (LWCC)
• Red Meat Research and Development SA (RMRD-SA)
• Other Producing Organisations
• Skaapvleis SA
• International Industry Organizations

The RPO represents the interests of red meat producers in the Red Meat Industry Forum (RMIF), representing all the institutions involved in the full value chain of the red meat industry.

The RMIF is composed of:

• South African Pork Producers Organization (SAVPO)
• Red Meat Abattoir Association (RVAV)
• South African Feedlot Association (SAVV)
• South African Federation of Livestock Agents (SAFLA)
• National Federation of Meat Dealers (NFMT)
• South African Meat Processors (SAMPA)
• South African National Consumer Union (SANCU)
• Association of Meat Importers and Exporters (AMIE)
• South African Hide, Leather and Skin Council (SHALC)
• National Emerging Red Meat Producers Organization (NERPO)
• South African Meat Distributors and Allied Workers Union (SAMAU)
• RPO Big Cattle
• RPO Small Cattle

The RPO, together with NERPO, forms the Federation of Red Meat Producers of South Africa dealing with the collective interests of primary commercial and emerging red meat producers.

WHY ARE VOLUNTARY CONTRUBTIONS LEVIED?

Critically important functions for the survival and prosperity of primary red meat producers and the red meat industry are funded from two separate sources of funding: the compulsory statutory levy and the voluntary producer contribution.

The statutory levy is instituted within the framework of the National Agricultural Marketing Act and is used exclusively for the following important functions of the red meat industry:

• Consumer Security (food safety)
• Consumer Communication and Education
• Research and Development
• Industry Liaison
• Emerging Sector Development
• Production Development and Operational Projects

Regarding the provisions of the National Marketing Act, an organisation such as the RPO may not fund any organisational functions from the statutory levy. The primary producer makes the largest contribution to the statutory levy, and if the producer does not financially empower the RPO in its monitoring task, the paying producer will lose its claim to the extent and utilisation of these statutory funds. It is imperative that the RPO has a strong say on behalf of the producer. The Red meat industry forum ensures that statutory funds are managed correctly.

The amount of voluntary contribution currently requested from producers amounts to 0.15% of turnover at the first point of trading. Several critical important actions undertaken by the RPO in the interests of livestock producers will be due to a lack of Capacity cannot exist without the voluntary contributions.

Agents and abattoirs have voluntary contributions within the provinces and pay it to the RPOs within each province. They then pay a predetermined amount to the national RPO with which it performs its organisational and administrative functions. According to the rule of thumb, 70% of the funds are used in the provinces and 30% for national actions.

As primary stakeholder in the red meat industry, producers are expected to make a financial contribution by supporting the statutory levy and voluntary contribution. This creates the capacity to pay attention to producer interests within the total value chain of the industry.

ORGANIZATIONAL AND ADMINISTRATIVE FUNCTIONS

Functions financed in the interests of the producer from the voluntary contribution:

• Provincial and National office and staff
• Administrative management of national offices and provinces
• Radio and TV interviews
• Consumer Education
• Producer Liaison using information days, congresses, text messages, website information, brochures, Facebook, the Red Meat magazine and an electronic newsletter
• Policy influence at the provincial and national governments
• Liaison with departments and veterinary services on issues such as border and disease control
• Training of producers and their workers
• Funding of relevant research projects
• The operation of the National and Provincial Stock Theft Forums
• Consumer Liaison

EXPLANATION OF STATUTORY LEVY

Valid from 1 November 2016 to 31 October 2017.

CATTLE

• R5,67 per head is recovered from the seller and paid to the buyer in all transactions.
• R9.45 per head is paid at the slaughtering point by the person presenting the animal for slaughter, and the same applies for the import of cattle.

SHEEP AND GOAT

• R1.22 per head is recovered from the seller and paid to the buyer in all transactions.
• R1,84 per head is paid at the slaughtering point by the person presenting the animal for slaughter, and the same applies for the import of cattle.

IMPORTS

• A permit for the import of meat amounts to R1 054,00 per permit, with a maximum of 25 tonnes per permit.

HIDES AND SKINS

• Hides and skins are set at R1,82 per kilogram.

AGENTS

• Livestock agents pay 0.093% of their commission.

TRADE

• Selling outlets pay R599,00 per year.

The industry will have to reconsider the continuation of the Statutory Levy after 2018.