Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996)

The purpose and aims of this statutory measure are to provide financial support to winter cereal information, research, and transformation functions, which the winter cereal industry identified as essential and are in the interest of the industry. The winter cereal industry and directly affected groups consider the maintenance of macro industry information essential for strategic planning purposes. Continuously supplying generic market information to all role players is critical for the market to operate effectively.

The winter cereal industry supports the principle that generic market information be obtained using statutory measures in terms of the Act and that SAGIS should be the official vehicle to achieve this. SAGIS also operates as an official information service for the maize, sorghum, and oilseeds industries. A statutory levy is required to ensure that the winter cereal industry shares in the gathering and disseminating of proper market information. Proper and accurate winter cereal market information, which is provided continuously and timely, will not only increase market access for all participants but also promote efficiency in the marketing of winter cereals and winter cereal products. Furthermore, Proper market information will enhance the viability of the winter cereal industry and the agricultural sector. Market information also enhances food security, as information on national stock levels of winter cereal is available for the market to function properly.

The agricultural sector is expected to ensure food security, strengthen the economy, and create job opportunities. This can be reconciled with the provisions of Section 2(3) of the Act. Continued research is essential to achieving these aims and furthering the competitive position of the winter cereal industry. According to experts in the field of research, the good performance of the South African agricultural sector, despite the lack of high-potential arable land, could be mostly attributed to the development and application of agricultural research results. The complex interaction between crop behavioural patterns and external factors affecting them, such as diseases and pests, often impacts production and quality negatively, thus creating an urgent demand for new technology to keep the agricultural sector profitable. Accounts should also be taken into account for consumer preferences within the market. Specific infrastructure has been created over time regarding research, and it is essential that this infrastructure be retained and maintained to the benefit of the winter cereal industry.

South African products must conform to international quality standards to optimise export earnings. Researchers and breeders must ensure that locally produced winter cereal is competitive internationally. A significant portion of the funds collected through the levy will be focused on small-scale farmers and the transformation of the winter cereal industry.

The SA Winter Cereal Industry Agency NPC (SAWCIA) shall administer the statutory measure. Levies collected for the different commodities shall be administered in separate accounts.

SAWCIA has experienced an increase in research applications over the past few years. Levy funds are required to partly compensate for the diminished funds available from other sources regarding research and to make provision for new research projects to be funded. However, the calculation of a continued levy and the SAWCIA's budget depends on the Government continuing to fund its proportion of winter cereal research.

In determining the amounts of the levies applied, cognisance was taken that a separate application for a statutory levy to support seed breeding programs for wheat and barley would be submitted.