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THE
GRAIN AND OILSEED INDUSTRY
OF SOUTH AFRICA – A JOURNEY THROUGH TIME
ႄႆ
industry could not be assisted, as the many producers who were not yet members
of the co-operatives were unable to share in the advance that was paid.
The Wheat Industry Control Board that was established in terms of the 1935 Act
struggled with the surplus problem right from the start, and the importing of wheat
andmeal was strongly questioned. The establishment of a single-channel marketing
system was offered as a solution to this problem by wheat producers.
However, the Board introduced other measures with a view to restricting the
supply of wheat in the market, which included storing wheat for remuneration.
These measures were not very successful and led to the Board deciding to request
the government to consider a policy for selling wheat through a single channel on
a trial basis for two years. Although this request was not granted, the government
agreed to adjust the advance price and grant certain assistance with respect to the
storage of wheat. However, it was clear that the powers of this Board, which could
be regarded as the first Wheat Board, were inadequate for ensuring the orderly
marketing of wheat.
Marketing Act 1937 – Wheat Control Scheme
In preparation for the promulgation of the Marketing Act of 1937 the Wheat Industry
Control Board had already started to develop a scheme in terms of that Act according
to which the Board would be the only buyer and seller of wheat, would fix wheat
prices and take other steps to control the wheat industry. On 5 October 1938 the
Wheat Control Scheme that had been developed in the process was announced
in accordance with the Marketing Act. This introduced single-channel marketing of
wheat and other winter grain products.
The Marketing Act empowered the Board to exercise full control over the wheat-to-
bread chain. From 1938 the Board controlled the importing and exporting of wheat
and wheat products, prohibited the sale of wheat to any entity other than the Board
and its agents, as it did the sale of wheat meal and bread at prices other than those
fixed by the Board, and even regulated the size of bakers’ ovens. All in all this was
the most extensive control of any production chain in the history of the country,
and it lasted for roughly 59 years.
The Wheat Industry Control Board that had been established in terms of the 1938
Act convened for the first time on 24 October 1938. The Board had wider powers
and responsibilities than its predecessor. The main tasks were to advise the Min-
ister on grading and packaging requirements, as well as on the conditions under
which wheat and wheat products could be sold, imported or exported. Some of
the Board’s other powers were subject to the approval of the Minister, for example
Dry land wheat in the Free State.
The Act on the Control of the Wheat Indus-
try (Act 58 of 1935).
Sound bite: Price fixing in the Wheat Market-
ing Board was serious business although there
were lighter moments – Mr Jannie de Villiers.
