A JOURNEY THROUGH TIME

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CHAPTER 1
produces soybean seed, which is regulated by the Plant Improvement Act of 1976.A
part of that is exported, mainly to neighbouring countries, but a smaller part also to
countries in Asia, South America and Europe.
Producer prices
South African soybean prices are mainly influenced by the size of the crop in South
America, international supply and demand trends, shipping tariffs and the rand/
dollar exchange rate.
Development
The changing strategic importance of soybeans, initially as an important source of
protein in the manufacturing of animal feed and later as a key component of food
for humans and animals, in time led to a greater acceptance of soybeans in the
South African agricultural environment and it has started to earn a place in policy
matters. The policy initiatives raised the status of soybeans as cash and as food
crop, which also encouraged seed companies to develop improved seed varieties.
The Department of Trade and Industry initiated extended processes since around
2010 with a view to developing new soy-processing plants and improvements to
existing facilities.
In addition, the high nutritional value of soybeans and the increased industrial
demand promoted the cultivation of soybeans from around 2010. The attractive-
ness of soybean production and the value of the industry were further enhanced
by good crop yields in especially the top soybean-producing areas, linked to
favourable market prices that increased the yield/hectare for producers appreci-
ably. Market conditions also changed to such an extent that the processing of soy-
beans became more attractive, and in fact improved, increasing the demand for
soybeans even further.
Especially since the Genetically Modified Organisms Act came into effect in 1997,
after which new GMO cultivars were released in the RSA, the area on which
soybeans were cultivated, as well as the total production, increased substantially.
Between 1997 and 2014 the area of 87 000 ha increased to 502 900 ha, and the
production of 120 000 tons to 867 700 tons, as can be seen on the diagram above.
The BFAP predicts that it can increase to up to as much as 605 000 ha by 2020,
and that the yield/hectare can improve appreciably in that time, which will serve
as a great incentive for producers to further expand soybean production. The
BFAP also predicts that the local demand for soy meal could double from 2012
to 2020.
These factors and expected developments, together with the value of soybeans as
a rotation crop as a result of the improved nitrogen levels in die soil, indicate good
prospects for South African soybean production.
THE CEDARA MEMOIRS
ON SOUTH AFRICAN
AGRICULTURE WERE
WRITTEN BY ER SAWER
IN COLLABORATION WITH
THE DEPARTMENT OF
AGRICULTURE OF NATAL
AND PUBLISHED IN 1909.
THEY DEALT WITH
DIFFERENT BRANCHES
OF THE SOUTH AFRICAN
AGRICULTURAL INDUSTRY,
INCLUDING GRAIN,
LIVESTOCK AND TOBACCO.
1 200 000
1 000 000
800 000
600 000
400 000
200 000
0
Tons
1975/19761977/19781979/19801981/19821983/19841985/19861987/19881989/19901991/19921993/19941995/19961997/19981999/20002001/20022003/20042005/20062007/20082009/20102011/20122013/2014
Groundnuts
Soybeans
Sunflower seed
Graph 29: Changes in tonnage production of oilseeds in South Africa from 1975/1976 to 2013/2014