Wheat tariff - Good news for wheat producers

ITAC (International Trade and Administration Commission) announced today that the Minister of Trade and Industry, Dr Rob Davies, approved a wheat tariff protection level of US $ 294 / ton FOB (Free-on-board). This is good news for wheat producers who started to plant in the Western and Southern Cape. Grain SA applied for an increased wheat tariff protection level in April 2012 (previously US $ 215). "This was a long and thorough process and we are pleased with the outcome of the application", Jannie de Villiers, Chief Executive Officer of Grain SA said in Pretoria today. The approved protection level is lower than the application Grain SA submitted, but implies a SAFEX 'minimum price' of +- R 3 300 per ton.

South Africa currently imports about 50% of our wheat consumption and the increased protection level should make us less dependant on foreign supply. The Chairman of the Winter Cereals specialist working group, Andries Theron, said that farmers see this decision of the Minister in a positive light to invest further in agriculture and to create a policy to improve profitability to the advantage of everyone in the country.