Red meat in South Africa: Statutory charges under the magnifying glass

Published 2024년 11월 25일

Tridge summary

As of November 1, livestock producers are subject to increased statutory levies on the slaughter of sheep, cattle, goats, and pigs, as well as on live animal exports, as per Government Gazette no. 47300. These levies, which increase by approximately 5% each year, are intended to support the sustainability and quality of the industry under the Agricultural Products Marketing Act 1996. Corine Steyn from the Red Meat Producers Organization (RPO) emphasizes that these funds are not for organizational functions within the value chain, and the RPO ensures their proper use. The article distinguishes between statutory levies and voluntary contributions, with the latter being allocated for organizational and administrative purposes.

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Original content

Since November 1, livestock producers have been paying more for statutory levies on all sheep, cattle, goat and pig slaughters as well as live animals that are exported. Many producers ask why they have to pay more. These statutory charges are mandatory and are determined according to Government Gazette no. 47300 as published on 14 October 2022. These levies are increased by around 5% every year, which hardly covers the rate of inflation. For the following year, the charges are calculated as follows: The charges were determined as follows, according to the Government Gazette: Table 1: Levy and adjustment In the case of pigs, the levy for the following year is R15,51 per head (excluding VAT). According to the Government Gazette, the charges were determined as follows: Table 2: Levy and adjustment for pigs What are statutory levies used for? When asked, Corine Steyn, company secretary and manager, liaison for the Red Meat Producers Organization (RPO), explained that statutory levies ...

Source: Agriorbit