Without the immediate assistance from government SAMPA (South African Meat Processing Association) members will not be able to produce enough volume to feed South Africa.
The South African Meat Processors Association (SAMPA) speaks on behalf of the meat processing industry and following the events of last week we are reaching out to the DTIC to assist with the fast tracking of imports of especially but not only Mechanically Deboned Meat (MDM). MDM is not produced in South Africa and the industry relies entirely on imports of +/-18 000 per month.
MDM is the key raw material used in the production of emulsion based processed meat products e.g. (Polony, Viennas, Russians and IQF Sausages).
The shortages will be felt hardest by SME’s as they have limited cold storage capacity and cash flow , and they rely on just in time raw material procurement.
Already some manufacturers have run out of MDM and have started to reduce shifts or send staff on leave as factories cannot produce. The risk of job losses is high unless raw materials are fast tracked through the ports.
The loss of significant cold storage capacity in Durban as detailed below, will result in huge bottleneck’s in clearing stock arriving in Durban Harbour over the coming months. It is imperative that a solution is found to rapidly clear containers for direct delivery to suppliers or to cold storage facilities in Gauteng.
The current protocol requires all containers to be unloaded into cold stores in Durban pending samples passing Micro testing before being released. Micro testing adds up to three weeks to the import process and will seriously hinder the manufacturing industries ability to fill the supply chain in the short term.
The Durban Cold Stores that have been looted and seriously damaged or destroyed are:
Ayoba – 8,000 pallet positions – Materially damaged, cannot receive stock 6 to 12 months repair, all stock lost.
Meister – 12,000 pallet positions – Materially damaged, cannot receive stock 6 to 12 months repair, all stock lost.
Sequence – 10,000 pallet positions – Facility entirely destroyed, all stock lost – 12- 18 months to rebuild.
Snow Link – 10,000 pallet positions – Materially damaged, cannot receive stock still trying to determine the extent of loss and damage.
The above equates to 40,000 tons of cold storage capacity and raw material that has been lost and cannot be used for months to come.
The industry urgently needs temporary concessions on the regulations around imported MDM and other ingredients used by SAMPA members.
We need to be able to transport import containers under veterinary bond to Gauteng cold stores to be cleared by state veterinary official in Gauteng.
We need to be able to fast track the veterinary process at all ports in order that product can get to the factories that have not been affected by the riots.
There needs to be a temporary concession around the reduction on laboratory testing. This process adds up to three weeks to the import process and will seriously hinder the manufacturing industries ability to fill the supply chain that has been lost.
Without the immediate assistance from government SAMPA members will not be able to produce enough volume to feed South Africa. This production is needed to minimise the effect of the current food shortages in our country.
Your support in engaging with the various Government Agencies on behalf of SAMPA will be greatly appreciated. I am available 24/7 to discuss any aspect of a recovery plan.