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THE
GRAIN AND OILSEED INDUSTRY
OF SOUTH AFRICA – A JOURNEY THROUGH TIME
ႈ
commercial farming sector, promote food security and the preservation of natural
resources, and ensure free competition in the agricultural sector.
However, the African National Congress (ANC), which was the other party to the
Government of National Unity, submitted its own policy document on agriculture
that had been largely based on the Kassier Committee’s report, with strong prefer-
ences in favour of a total free-market system.
MARKETING OF AGRICULTURAL PRODUCTS ACT, 1996
In 1996 the Marketing of Agricultural Products Act, Act 47 of 1996 (‘the 1996 Act’)
was accepted by parliament. This Act, which revoked the Marketing Act of 1968,
came into effect on 1 January 1997.
The Kassier Committee’s approach of a managed transition that should lead to
the minimum intervention was included in the 1996 Act, in spite of strong views
by some role-players that the entire system simply had to be abolished after
a limited phasing-out period. However, the Act in some respects went further
than the recommendations of the Kassier Committee, for instance by defining the
circumstances and conditions under which the government would be allowed to
intervene in the marketing of agricultural products, as well as the process that
had to be followed to do so.
Goals
The objects of the 1996 Act are, among other things, to provide and enforce
regulatory measures aimed at regulating the marketing of agricultural products,
including authorising the introduction of levies on agricultural products, as well
as making provision for the establishment of the National Agricultural Marketing
Council (NAMC). The NAMC had to monitor the effect of deregulation and conduct
investigations about export marketing initiatives and rate fixing. In contrast to the
Marketing Act of 1968, the point of departure of the Act was to prevent undesirable
interference rather than to authorise it.
Objectives
The objectives of the 1996 Act were to accomplish the following:
• Increased market access to all the participants in the market.
• Promotion of effective marketing of agricultural products.
• Optimising of earnings from the export of agricultural products.
• Promotion of the viability of the agricultural sector.
The Act expressly provides that statutory measures may be permitted only if the
Minister of Agriculture is satisfied that such measures will directly and significantly
promote one or more of the Act’s objectives without having a material negative
effect on food and job security and themaintenance of fair labour practices. Statutory
measures can also be implemented only if proof can be provided that such measures
enjoy sufficient support from parties who are directly affected.
These measures, together with various other provisions in the 1996 Act, were added
in an attempt to make the decision-making process with respect to statutory inter-
vention in the marketing of agricultural products more transparent and inclusive.
National Agricultural Marketing Council
The 1996 Act makes provision for the establishment of a National Agricultural
Marketing Council (NAMC) to advise the Minister of Agriculture in various ways
and fields on and assist him with matters pertaining to statutory measures and
the agricultural marketing policy.
The composition, powers and functions of the NAMC, which was established on
6 January 1997, differ considerably from those of its predecessor, the National
Marketing Council. The NAMC’s composition is regulated expressly by the 1996
Act. It comprises ten members who are appointed by the Minister of Agriculture
at the recommendation of parliamentary portfolio committees. The appointments