A JOURNEY THROUGH TIME

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CHAPTER 1

measures and that SAGIS is the official vehicle for achieving this. A statutory levy is

required to ensure that the winter cereal industry also shares in the gathering and

dissemination of information.

The premise is that proper and accurate information on the winter cereal market

that is available constantly and timeously not only improves market access for

all market participants, but also promotes the effectiveness of the marketing of

winter cereals and winter cereal products and therefore also the viability of the

winter cereal industry and the agricultural sector in general. Market information

furthermore promotes food security because the market can function better, as

information on national stock levels of winter cereal is available.

Financing is also required for research on new technology to understand and

manage the complex interaction between the changed behaviour patterns of

crops and the external factors affecting them, like pests and diseases. It is also

essential for the industry to maintain the specific infrastructure established over

time to conduct research on consumer preferences.

Furthermore, in order to optimise proceeds from exports, it is essential for South

African products to comply with international quality standards, which creates a

need for researchers and breeders to ensure that locally produced winter cereals

are and remain competitive on international markets. The levy is needed for the

funding of research projects in order to address these needs.

The levies are administered by the Winter Cereal Trust in a separate account. A

part of the levies is also used for small-scale producers and the emergent winter

cereal industry.

The levies apply in the geographic area of the Republic of South Africa and apply

to all winter cereals:

(a) that are sold by or on behalf of the producer thereof;

(b) that are imported into the Republic of South Africa;

product is destined to be sold;

(d) that are exported from the Republic of South Africa if the levy has not been

paid in terms of any of the above; and

(e) with respect to which a silo receipt is issued if the levy has not been paid in

terms of any of the above.

The amount of the levy is adjusted from time to time. The following levies applied

from 1 October 2014 to 30 September 2016 (VAT excluded):

• Wheat R17,00/metric ton

• Barley R16,00/metric ton

• Oats R13,00/metric ton.

The levy is payable by the buyer, importer or processor on the basis as determined

in the regulations, but under certain conditions it can be deducted from the pur-

chase price paid to the producer or the importer. In the case of a silo receipt the

levy is payable by the issuer of the receipt, but it can also be recovered from the

person to whom the silo receipt is issued.

The levy must be paid to the Winter Cereal Trust by the last day of the month

following the month in which the winter cereal is purchased, converted, processed

or exported or a silo receipt is issued.

The statutory levies must be implemented as follows: 70% for research and

information, 20% for transformation (development of black producers) and no

more than 10% for administration.

Research

The necessity for research into the wheat industry led to the Wheat Board donating

an amount of £620 to the Stellenbosch-Elsenburg College of Agriculture as far back

as 1936 to purchase a Farinograph-Fermentograph, which is used to test the baking

quality of wheat. About two years later, in April 1938, the Wheat Board donated a