The
grain and oilseed industry
of south africa – A journey through time
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Grain SA, with the aid of charity support services, became involved in the
67 minutes on Mandela Day 2014 to upgrade the facilities at the children’s home.
In 2015 16 soccer sets were donated to the children’s home with the aid of XCO Sport.
5. Grain SA’s Momentum product – financial welfare programme
Profitability and sustainability versus the social upliftment of farmworkers remain
important. Grain SA, in collaboration with Momentum, developed a financial wel-
fare programme for members and their farmworkers. This solution supports em-
ployers in making provision for the key needs of farmworkers. The product was
launched at the 2015 Congress.
STRATEGIC PLAN FOR THE GRAIN INDUSTRY
Early in its existence Grain SA became involved in the development of the state
president’s strategic plan for agriculture, led by Dr Johann Kirsten. The plan was
aimed at offering agriculture its rightful place in the South African economy on the
basis of the principles of growth, competition, co-operation and equal participa-
tion. The following were identified as the limiting factors in achieving growth in the
agricultural industry:
• Low and intermittent rainfall and little arable land
• Poor extension and support services
• Legislation that hampers competition
• High production costs
• Low labour productivity and high cost of unskilled labourers
• Crime
• Deterioration in the research infrastructure and capacity
• Quality requirements for inputs, grain products and imported grain
• High cost of capital
• Poor access to timely, relevant and accurate market information
• Poor infrastructure and logistical limitations
• Difficult access to financing and restrictive legislation with respect to this
• International agricultural policy that distorts grain markets
After the development of the strategic plan it was clear that co-operation at all
levels in the value chain was essential. To achieve this, strategic programmes were
developed for the following:
• Black economic empowerment in the grain industry.
• International market access and trade policy.
• Information and communication.
• Technological development and transfer of new technology.
• Technical standards.
• Human resources development.
Each of the strategic programmes had an action plan for its implementation by
the different role-players in the grain industry. Although the plan was accepted in
theory, it was never actually carried out in practice.
Increasing participation by black producers in commercial agriculture since 1994
enjoyed specific attention in Grain SA and the organisation’s special contribution
to the development of those producers is recorded in Chapter 8. Grain SA ac-
cepted it to be part of its responsibilities to promote the integration of the new
producers so that the objectives of food security and long-term sustainability of
South African agriculture can be achieved.
UNITY IN AGRICULTURE (ASUF)
Producers in South Africa are represented mainly by four different agricultural
unions, namely the African Farmers Association of South Africa (AFASA), the
Transvaal Agricultural Union of South Africa (TLU SA), Agri SA and the National
67 Minute Mandela initiative.