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CHAPTER 1
FROM 1937 TO 1996 ALL ASPECTS OF MAIZE
MARKETING IN SOUTH AFRICA WERE
CONTROLLED BY THE MAIZE BOARD. THE
WAY IN WHICH PRICES WERE DETERMINED
WAS REGULATED BY THE MARKETING
SCHEMES THAT EXISTED FROM TIME TO
TIME. THE ABOLITION OF THE MAIZE BOARD
LED TO SIGNIFICANT CHANGES. PRODUCERS
COULD NO LONGER DEPEND ON A PRE-
SEASON OR ADVANCE PRICE FOR SETTING
PRICES OR FOR PRICE RISK MANAGEMENT.
IN FACT, THE ADVENT OF THE FREE-
MARKET SYSTEM CHANGED THE MAIZE
INDUSTRY AS WELL AS THE OTHER GRAIN
INDUSTRIES DRASTICALLY. PRODUCERS
CAME UNDER PRESSURE TO INCREASE
PRODUCTIVITY BY, AMONG OTHER
THINGS, INCREASED USE OF MACHINERY,
FERTILISER, LABOUR, THE OPTIMISATION
OF GENERAL PRODUCTION PRACTICES AND
WITHDRAWAL OF MARGINAL LAND FROM
GRAIN PRODUCTION.
tion of maize dropping in the western areas with lower rainfall, and being concen-
trated in the higher rainfall areas to a greater extent.
1993 maize price
In 1993 the fixing of the producer price for maize once more led to heavy debates
because the producers as well as the consumers were actually fighting for survival
under very difficult circumstances. Producers were in a position where input in-
flation had increased considerably under conditions where the previous season’s
drought had caused a drop of between 30% and 40% in maize producers’ income,
while at the same time consumer prices in general had risen enormously. The posi-
tive result of these debates was that agreement was reached on the need for maize
prices to be market related and not politically motivated in future.
Summer Grain Scheme terminated
In the 1994/1995 marketing year the Summer Grain Scheme was terminated, and
from 1 May 1995 the single-channel fixed-price marketing scheme was abolished
and quantitative restrictions on maize imports terminated. Maize prices were sub-
sequently set without statutory intervention in the market place, and Safex be-
came the platform for setting prices. In future, producers’ decisions on price and
risk management would be guided by market instruments and factors.
Grading
Initially the grading regulations for maize were based on overseas standards.
On the recommendation of a standing committee of the Maize Board a set of grad-
ing regulations specifically for South African conditions was developed. They came
into effect on 1 May 1949 when the Agricultural Product Standards Act came into
force, and although they were amended from time to time, they still constituted the
basis of the grading regulations for maize in South Africa in 2016.
Fighting insects
Although insect infestation led to enormous grain losses in earlier years, South
Africa’s maize industry never experienced major problems in this regard. However,
with the increase in production after the Second World War, it became necessary
to store maize for longer periods. This became an ideal nutritional source for in-
sects and insect infestation became a real threat.
In 1957 the Maize Board therefore approved fumigation experiments with a view to
implementing insect control in maize and grain sorghum. An insect control scheme