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THE
GRAIN AND OILSEED INDUSTRY
OF SOUTH AFRICA – A JOURNEY THROUGH TIME
ႆႂ
...to protect producers’ interests
against international attacks. NOPO
News, 1997.
the competition was to bind producers together through study groups and thus
launch the newest technology for profitable production.
The Super Soy competition contributed to the yield/hectare and the protein con-
tent of soybeans improving drastically.
Tariff policy for imports
The initial consensus in the industry on the way in which tariffs on imports had
to be managed quickly faded. In a free market it was a natural development
for producers to attempt to protect the domestic market against imports from
subsidised products while buyers and processers wanted to utilise international
opportunities.
On 11 March 1996 discussions were held between representatives of the Board
on Tariffs and Trade, AFMA, the Oil Pressers Association, the Oilseeds Board and
NOPO. At this meeting it was clear that NOPO and the other role-players differed
drastically about the tariff policy that should be implemented. NOPO’s proposals
included that tariffs should be adjusted automatically when international price
trends reached certain levels. However, AFMA and the oil pressers requested that
an adjustment to existing tariffs be negotiated only when a major change in global
markets had occurred. A compromise was reached after the rand-dollar exchange
rate weakened drastically and the cost implications for imports changed. The
tariffs committee did recommend to the Board on Tariffs and Trade that vegetable
oil could be imported at a zero tariff and all oilcake at a tariff of 6,6%.
Code of ethics for a deregulated market
With the deregulation of the grain industry, buyers and sellers of grain and oilseeds
incurred great losses because of breach of contract. Some of the producers
joked after the season that they received a good price, they just did not receive
their money.
Representatives from the co-operatives, grain traders, transport industry and
various financial institutions met on 17 July 1996 to try and find solutions. It was
decided that a code of ethics for grain trading should be developed and released.
NOPO also published practical guidelines for concluding grain trading contracts
for producers in
NOPO Nuus
.
NAMPO inputs committee
NOPO made a decision in principle as far back as 1996 to integrate with NAMPO’s
inputs committee as inputs had an equal impact on all grain producers. Participation