The recent drug busts made in India on consignments of South African fruit has again underlined the extreme importance for growers to keep an eye on the value chain.
“We are shocked to learn about individuals pretending to be export agents and involved in drug smuggling. The fact that it has happened, means we have to look at this more intensively,” says Francois Knowles, the Agricultural Produce Agents Council (APAC) registrar. “This is organized crime, it has nothing to do with fresh produce but just uses it as a smokescreen. South Africa’s reputation is worth its weight in gold.”
Fruit pallets being loaded on a plane at OR Tambo International Airport, Johannesburg
He continues: “Farmers have to make very sure that their export agents are registered with the Agricultural Product Agents Council in the event that agents are responsible for the farmer’s income. Farmers have to keep an eye on their marketing channel and the ethics within the value chain.”
Export agents are legally obliged to be registered with the council whose constitutional mandate is aimed at protecting the farmer through ensuring ethical and economic business practices.
“There are agents who, I think, do not want to be regulated and those are the ones who have to be highlighted and removed from the industry. The currently registered agents are the good guys but unfortunately there are a few guys who don’t register and we don’t always hear of them quickly enough.”
He continues that there are role-players who hoodwink overseas buyers with fake websites.
Loophole created by transfer of ownership
A loophole exists when ownership of fruit is transferred to the buyer, and the grower has received due compensation, because such a third party buyer does then not fall under the regulatory umbrella of APAC.
There are amendments to the legislation that undergirds APAC currently before the parliamentary portfolio committee and the Department of Agriculture, Land Reform and Rural Development (DALRRD) to tighten the process and strengthen the hand of the agent council.
“We have to strengthen our mandate. We must have enough teeth to be able to react strongly,” he maintains. The council is keen for the industry to know that APAC is bringing its part in regulating the industry and it is now, more than ever, of crucial importance.
APAC’s investigations have had pushback from role-players who want to operate their businesses away from the enquiring eyes.
“I ask the help of the industry to point these people out with as much information as possible,” he says. “APAC will pursue investigations without fear and favour.”
For more information:
Francois Knowles
Agricultural Produce Agents Council
Tel: +27 11 894 3680
Email: francois@apacouncil.co.za
www.apacweb.org.za