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THE

GRAIN AND OILSEED INDUSTRY

OF SOUTH AFRICA – A JOURNEY THROUGH TIME

ႃႊ

importers and exporters of whole crops and the information on them was therefore

mainly in their possession. Some of that information was made available only once

a year in annual reports and was therefore not readily available.

Advance prices were announced at the beginning of the harvesting season on the

basis of information in the possession of the control boards, which based their

information on the crop estimate and other factors that affected prices.

During the first number of years after deregulation there was at times great

uncertainty about the size of maize crops and supplies in particular. Suddenly the

market participants had to manage their price risks themselves, but prices had

become an unknown factor because the information often changed drastically

and was unreliable. The availability of reliable information became vital.

On 11 November 1997 SAGIS was registered as a section 21 company by the

Registrar of Companies under the Companies Act of South Africa at the time,

and it became the official supplier of information on whole crops handled in

commercial structures.

The introduction of silo certificates, the role of the financing houses in the free

market and the introduction of silo bags for storing grain for commercial purposes

on farms and at other storage points made the information function problematic

for SAGIS, the suppliers and users of information. However, various role-players

collaborated effectively with SAGIS to develop an essential, integrated and reliable

information system.

SAGIS is funded pro rata by by the Maize Trust, Sorghum Trust, Winter Cereal Trust

and OPDT. The respective trusts also nominate the members of the SAGIS board.

On 9 April 1998 statutory measures were implemented to force the parties involved

to keep records and submit returns and ensure that timeous, accurate information

is available to role-players on an ongoing basis. This information is available on

the SAGIS website and is disseminated and made available in various other ways,

including:

• Monthly bulletin.

• Weekly bulletin.

• Weekly producer output (supplies).

• Weekly import and export information.

• Import tariffs.

Information is provided regularly by SAGIS contributors. All released information is

available on the website

www.sagis.org.za .

SAGL

The Southern African Grain Laboratory (SAGL) is a central grain laboratory that

has been incorporated as a non-profit organisation under section 21 of the former

Company’s Act. It was established at the request of the South African grain industry

in 1997 after the dissolution of the control boards and has been supplying the grain

industry with grain analyses and related services since 1 November 1997. The grain

laboratory services of the Wheat Board and the Maize Board were transferred to the

SAGL, while the oilseeds industry decided to use the services of the PPECB.

Initially the intention was for the SAGL to use the Wheat Board’s laboratory building,

but the Wheat Board sold the property concerned. This meant that an alternative

facility had to be found very quickly, and eventually the laboratory was established

on the premises of the CSIR.

When it was established, the SAGL was the only private laboratory in South Africa

that had its own Buhler laboratory mills. These mills are used to mill wheat with a

view to testing the dough and baking quality.

In addition to a very wide variety of tests that can be carried out by the SAGL,

including seed tests, it is a reference laboratory for the grain industry.

The accredited laboratory of the SAGL.

At that stage the SAGL was the only labo-

ratory that had Bühler mills at their dis-

posal.

The SAGL’s maize mill.

The baking laboratory as it now stands.