Competition Act, 1998 (Act No. 89 of 1998)NoticesGuidelines on collaboration in the implementation of the South African Value Chain Sugarcane Master Plan to 20301. Preface |
| 1.1. | These Guidelines have been prepared in terms of section 79(1) of the Competition Act No. 89 of 1998 (as amended) (“the Act”) which authorises the Competition Commission (“Commission”) to prepare and issue guidelines to indicate its policy approach on any matter falling within its jurisdiction in terms of the Act. These Guidelines are not binding on the Commission, the Competition Tribunal or the Competition Appeal Court in the exercise of their respective functions in the interpretation of the Act. However, any person interpreting or applying the Act is obliged to take these Guidelines into account.1 |
| 1.2. | The purpose of these Guidelines is to provide guidance to the sugar industry on collaboration in the implementation of industry commitments to increasing sourcing of local sugar as contemplated in the South African Sugarcane Value Chain Master Plan to 2030 (“the Sugar Master Plan”). On 23 June 2020, the Minister of Trade, Industry and Competition, after consultation with the Minister of Agriculture, Land Reform and Rural Development, granted a designation to the sugar industry in terms of section 10(3)(b)(iv) of the Act for a period of 12 months, which may be extended, commencing on 1 July 2020. The designation is aimed at providing support to the economic development, growth, transformation, and stability of the sugar industry in line with the objectives of the Sugar Master Plan. |
| 1.3. | Subsequently, on 16 October 2020, the Commission granted an exemption to the South African Sugar Association (“SASA”), a statutory body established in terms of section 2(1) of the Sugar Act No.9 of 1978, as amended, to enable its members to collaborate in the implementation of the Sugar Master Plan, subject to certain conditions. SASA’s members comprise of the South African Sugar Millers’ Association, the South African Cane Growers Association and the South African Farmers Development Association. As a result, the exemption granted by the Commission only covers the production and milling value chains of the sugar industry. |
| 1.4. | A key element of the social compact in respect of the commitment to restore the local market and off-take commitments in the Sugar Master Plan is that retail, wholesale and industrial sugar users, in support of the goals of stabilising and restructuring the sugar industry, will commit to increased sourcing of locally produced sugar for a period of 3 (three) years. |
| 1.5. | However, collaboration by retail, wholesale and industrial sugar users in the implementation of the Sugar Master Plan did not form part of SASA’s exemption application to the Commission. Consequently, these Guidelines seek to provide guidance to the sugar industry on collaboration in delivering on industry commitments to increasing sourcing of locally produced sugar in the implementation of the Sugar Master Plan. The Commission may from time to time update these Guidelines when necessary. |
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1 Section 79(4) of the Act.