The location differential is an issue that has been under discussion for a long time. Last year, Prof Matt Roberts conducted a study and report for the JSE. This investigation was due to the insistence of Grain SA. The report made several recommendations, one of which is that a differential system should be maintained for crops that currently have the system and that a differential system should be applied to the other crops, including soybeans and sorghum. It is clear that the JSE will apply a differential system.

Apart from important aspects such as market forces that need to be equalized and the differential to be calculated on physical costs, Prof Roberts made two important suggestions to improve the system: (1) Creating a zero zone and (2) the redemption fine.

In September 2019, Grain SA sent a comprehensive document to JSE proposing the testing of a new system where the free market establishes a natural zero zone through differentials applied only to silos with constant redistribution. Thus, all the recommendations are addressed, but a more equitable system is also established. In February 2020, the JSE published a note to the market that the differential will be implemented on soybeans, as on other crops, with no certainty regarding the redemption fine nor creating the zero zone. Grain SA has continuously inquired about feedback on the proposed system without any success. The JSE and the other role players in the JSE Advisory Committee emphasised that a differential system must be in place.

Grain SA leadership has requested to meet with the JSE management to discuss the awkwardness and has had two meetings in this regard over the past three weeks. Accordingly, it was agreed that the JSE will consider Grain SA's proposals. The JSE discussed the proposal with a special Advisory Committee as well as internally with JSE management and undertook to provide feedback on the way forward as soon as possible, most probably following the Easter weekend.

It remains important for Grain SA that, should a differential system be implemented, producers should be given the opportunity to deliver at a zero differential.

The following is Grain SA's mandate:

1. If a differential is to be put in place for all commodities, the system must be fair to everyone in the value chain.
2. More work needs to be done to ensure that all recommendations of the Roberts’ report are put in place, and that Grain SA rather utilise the opportunity to develop a fair system, given the recommendations.
3. The announcement of a differential for soybeans should rather be postponed for a season to obtain the correct information and to establish a fair system that meets everyone's expectations and which take all the recommendations of Prof. Roberts' report into consideration. This especially applies to the zero zone and redemption penalties.
4. A differential on soybeans can have a negative impact on production while everyone in the value chain, including the Government, wants to grow production.

Grain SA created a COVID-19 portal on it's webpage for it's members. All the latest news, documents, regulations and relevant articles pertaining to the COVID-19 pandemic and grain production can be accessed on one page. Use the link below or on the website click on the COVID-19 Update button under latest news.

COVID-19 Updates Portal

The following documents have been recently added and can be accessed through the COVID-19 Document Library:

• Amendment of the Directions issued relating to measures to prevent and combat the spread of COVID-19 in the Sea Ports (No. 43211)
• Summary of COVID-19 regulations (Source: Agri SA)
• Disaster Management Act 2002, Amendment of Regulations issued (No. 43199)
• Agri SA's comments on the Transport regulations: COVID-19 Pandemic
• What to do if you suspect a case of Covid-19 in your workplace (Source: Agri SA)
• Wat om te doen as daar 'n geval van Covid-19 in die werkplek is (Bron: Agri SA)

Be sure to keep an eye on the official Grain SA communication channels via the Grain SA electronic membership card, website, e-mail, social media and the channel created on Telegram. Relevant information, updates and releases pertaining to the COVID-19 pandemic in South Africa, impacting on Grain SA members will be published as and when it becomes available.

In the week prior to the national lockdown against COVID-19, the South African Agricultural Sector gave the assurance that the country is food secure. However, food security does not come automatically. It is the result of dedicated farmers and farm workers, transport companies, food processors and retailers who are all part of this value chain, making it happen, day by day.

As a tribute to South Africa’s farmers, farm workers and the entire value chain, we invite you to get involved with #PayFoodForward 

Grain SA, today give thanks for the food on our tables, the clothes on our backs and for the farmers who made it possible. To our farmers and farm workers, we thank you for continuing to provide for us during the lock down. We salute you 🙏 by sharing this short video to #payfoodforward because #farmersfeedlife

At the Grain SA Congress, Executive Member Kallie Schoeman spoke about the benefits of being a member of the organisation, reiterating that as a commodity organisation, Grain SA can make anything possible, which as an individual grain farmer, he would not be able to achieve. Take a look at the short video where the range of benefits to grain farmers are discussed.

On March 3 2020, the Cape region embarked on its exodus to Bothaville for the Grain SA Congress. The congress takes place annually enabling grain producers from all over South Africa to come together to show the way and lead the grain industry towards a sustainable existence.

Early in the morning, after an hour’s delay, the team was able to board the plane and once at Lanseria, the busses were loaded, and left for Viljoenskroon in a hurry. Once there, Stephen Krüger showed the Capetonians spectacular Free State fields of maize. On arrival at Johannes Botha’s farm, Rosa, from the well-known BODEEL-Angus stud's auction complex, Junita Krüger and Marijke Botha’s hospitality were unsurpassed with some welcomed refreshments. The Capetonians enjoyed every bit whilst engaging in a lively conversation where Johannes shared his passion for Angus cattle.

Johannes is a passionate Angus breeder, with excellent genetics in his herd and an incredible passion for what he does. In sharing this passion, he explained how he built and managed his herd to achieve fantastic results. He also shared ideas about the importance of a good feed flow program as well as lessons learned over the past five years, with the volatile weather conditions experienced in the Free State.

Next, was a visit down the road to JP Meintjies' farm Kruispan. JP is one of the top grain producers in the Viljoenskroon district. JP revealed the long road he travelled in order to achieve the successes he enjoys today. Passionate about this cultivation methods, he shared his knowledge and accomplishments. In addition, the group were treated to a display of John Deere tractors, with a thorough explanation of the purpose of each implement.  He shared his knowledge and passion about the cultivation methods he follows and the success he has gained. Once again, the group realised how the slopes and rocky soils of the Western Cape differ from the sandy plains of the Free State.

Thanking everyone who made this exodus possible, with a special thanks for all the arrangements and hard work, the Cape region enjoyed this learning experience on the Free State’s grain production, immensely.