Johannesburg – The Sugar Masterplan requires a detailed set of collaborative actions by stakeholders in the industry aimed, first, at urgent action to prevent the unmanaged decline of the industry and preserve jobs.
Considering that collaboration among competitors is not ordinarily allowed in terms of the Competition Act 89 of 1998, as amended (Competition Act) and can have dire consequences, it requires an appropriate exemption from the collusion provisions of the Competition Act and the Department of Trade, Industry and Competition (DTIC).
• Setting procurement targets In setting industry local procurement targets, discussion among retailers, wholesalers and industrial sugar users must be led by the department or a facilitator. No competitively sensitive information or disaggregated information may be shared or discussed.
Only aggregated information on the percentage and volumes of industry targets on local procurement can be discussed.
The final industry targets must be determined by the DTIC, or a facilitator appointed by the DTIC and based on sensitive information obtained on a bilateral and confidential basis separately from each individual firm.
Retailers, wholesalers, and sugar users must not engage in the collective procurement of sugar from suppliers.
Should collective procurement be necessary among a specific category of users, in order to optimise procurement efficiencies, an exemption in terms of the Act must be sought?
• Setting individual firm local procurement targets Progress reports on the achievement of milestones set out in the individual firm’s local procurement plan, in the implementation of the Sugar Masterplan, must also be submitted to the DTIC on a confidential basis.
• The authors work for law firm Cliffe Dekker Hofmey: Susan Meyer, Preanka Gounden and Charissa Barden.
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