Maize Trust
Relevant
10
THE MAIZE TRUST:
LEON DU PLESSIS, ADMINISTRATOR, MAIZE TRUST
Helen Keller once said: “Alone we can do so little; together we can do so
much.” In agriculture, few activities can take place without the help from
others or assistance from experts. The Maize Trust protects the funds
of the maize industry, but without organisations like Grain SA, the funds
cannot be utilised properly for the benefit of the industry.
The Maize Trust came into existence in August 1998 after long and
challenging negotiations between the then Minister of Agriculture and
representatives from the maize industry, following the demise of the
Maize Board.
These negotiations led to the provisions and stipulations of the deed
of the trust. The provisions of the deed were a compromise by both
the minister, on behalf of the government, and industry role-players.
However, first and foremost in everybody’s mind at the time were the
benefits that a trust of this nature could bring to the maize industry as
a whole. The Maize Trust was therefore born as the custodian of the
industry, which is to be used to the advantage of the industry at large,
within the agreed principles and policies as stipulated in the deed.
Responsibilities of the Maize Trust
The trust serves the industry through financial support for institutions
and organisations with programmes aimed at market and production
related research. As secondary objectives the trust looks to fund the
assimilation and dissemination of market information and to broaden
market access for the benefit of the maize industry. An amount of
R319 million was transferred as donations to the Maize Trust by the Maize
Board, with the final transfer done in June 2010 at the completion of the
dissolution process of the board.
The trust does not have personnel, but makes use of the services of a
part time investment adviser on a contractual basis to advise the trustees
on the investment of the trust’s funds. An independent firm is contracted
to handle the administrative services of the trust. The trustees are not
remunerated for their services, but are reimbursed for their direct and
indirect expenses on behalf of the trust. The Board of Trustees comprises
six members who are each appointed for a term of two years. Three of
the trustees are appointed by specific maize industry sectors, while the
other three trustees are appointed by the Minister of Agriculture, Forestry
and Fisheries.
The mission of the Maize Trust is to facilitate the continuous improvement
of the entire maize industry in South Africa, to ensure that the industry
becomes the leader in the region and that it is internationally competitive.
The trust deed does not specify beneficiaries, but only lists the objectives
of the trust. This means that funding from the trust can be accessed by
anybody in the maize industry who can demonstrate that the intended
programme will benefit the industry as a whole. The trust’s funding is
aimed at the financial support of actions and programmes by acceptable
institutions that are involved in the maize industry.
Generally the criterion for funding is that each project should have a
quantifiable and measurable outcome, which is consistent with the
mission and objectives of the trust. Twice a year the trustees consider
applications for funding and approximately a further six meetings
are held annually to discuss the general operations and investments of
the trust.
Funding is aimed at improving the whole
maize industry
Since its establishment, the Maize Trust has granted a large amount of
money to a variety of organisations and institutions involved in research,
development, information and other relevant programmes in the South
African maize industry. Grants are paid from the annual income of the
trust, which is derived from dividends and interest on the investment
of the donations that the trust received from the Maize Board. The trust
does not have any other source of income.
Currently the trust is spending approximately R50 million per annum on
project funding that is directly aimed at the improvement of the maize
industry. The investments of the trust have always been managed
prudently and with great caution, which resulted in very good returns
and a steadily growing asset value. This was done in line with the policy
to have an evergreen trust that could be maintained to the advantage of
the maize industry.
Funding by the trust is done annually to a maximum of 6% of the trust’s
asset value in order to achieve this policy. The costs of the trust are
strictly managed and kept as low as possible. This proves the fiduciary
responsibility of all the trustees that have been appointed to the trust
over time and is still the case up to this day.
Identify and implement new initiatives
Over the years the trust has endeavoured to identify and implement new
initiatives in conjunction with the normal funding of projects that would
benefit the industry. There are several successful initiatives that have
been launched by the trust since its inception, which have all benefitted
the maize industry and often also created opportunities and benefits for
the other grains and oilseeds industries.
A few of these initiatives were initiated by the Maize Trust and in others
the trust played an important part with the funding thereof. Some of
