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CHAPTER 2
Wheat and other winter cereals
Early 1900s
Since the early 1900s wheat producers tried in various ways to achieve greater
stability in the wheat industry, but without real success. The details of these
attempts are set out in Chapter 1 and varied from improved mutual co-operation
to the establishment or organisations like Bokomo and Sasko (today the Pioneer
Foods Group).
1930 – Wheat Importation Restriction Act
The government at last adopted the Wheat Importation Restriction Act in 1930
through which the importing of wheat was restricted. A similar act with respect
to meal and flour, the Flour and Meal Importation Restriction Act, was adopted
in 1931. These acts determined a minimum price at which imported wheat and
wheat meal could be landed in South Africa.
The government also determined the price at which South African producers had
to be paid for their wheat. However, these prices did not always materialise, as the
biggest part of the crop was usually marketed in a very short time at the beginning of
the harvesting season. This led to an oversupply in the period, which had a negative
effect on the price.
The opinion started to take root that producers should be able to market their crop
systematically so that they could utilise beneficial market conditions. This would
mean that wheat had to be stored, but the producers had neither the facilities nor
the financial means to do so. Co-operatives did have warehouses that could be
used for this purpose, but they could not afford the inevitable implications in terms
of interest expense, quality and other losses, insurance costs, et cetera. These
costs would therefore have to be borne by their members (the producers), which
would place the latter in a weaker position than producers who were not members
of co-operatives and could sell their entire crop immediately.
1935 – Wheat Industry Control Act
Wheat producers consequently sustained the pressure for greater government
support to the wheat industry. Their attempts were rewarded with the creation in
1935 of the Wheat Industry Control Board, which was established in terms of the
Wheat Industry Control Act, Act 58 of 1935, with a view to actively controlling the
importing of wheat and wheat meal in order to protect the interests of the local
wheat producers.
According to the Wheat Board’s 50 years’ commemorative volume the promulgation
of the latter Act was promoted by an exceptionally good harvest in the Swartland
and Rûens areas at a time when the marketing mechanisms were not geared to
handle a large surplus and ensure a fair price for their products to producers. Despite
an advance on the price of wheat that the Land Bank paid to co-operatives, the entire
1930
Wheat Importation Restriction Act – importing of wheat restricted
1931
Flour and Meal Importation Restriction Act – restriction of importing of flour and meal
1935
Wheat Industry Control Act (Act 58 of 1935)
1935
Wheat Industry Control Board – active control of the importing of wheat and
wheat meal
1937
Marketing Act
1938
Wheat Control Scheme
1950
Winter Grain Scheme
1973/1974 Board’s name shortened to Wheat Board
1987
Control over rye production terminated
1995
Quantitative import control replaced by tariff control
1996/1997 Wheat marketing totally deregulated
1997
Wheat board abolished