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THE
GRAIN AND OILSEED INDUSTRY
OF SOUTH AFRICA – A JOURNEY THROUGH TIME
ႄႈ
A modern (combination) wheat harvester
at work.
With the second consolidation of the Winter Grain Scheme during the 1973/1974
season the name of the Wheat Industry Control Board was shortened to the Wheat
Board, and an advisory winter grain grading committee was introduced to advise the
Wheat Board on matters affecting the grading and classification of winter grain and
winter grain products.
Until 1987 winter grain was administered according to a fixed-price single-channel
scheme, but from 1987 it was in practice a single-channel pooled scheme.
On the way to deregulation
One of the recommendations of the Wentzel Commission, which is referred to
later, was that the process for pricing controlled agricultural products had to be
amended. The commission made the following recommendations with respect to
the Winter Grain Scheme and the wheat industry – all of which were implemented
in due course:
• That control over imports and exports in the first place rested with the govern-
ment and that the Minister of Agriculture had to decide about the quantities
concerned.
• That the Wheat Board had to retain the power to decide about the registration of
mills and that the restrictive registration with respect to bread bakers had to be
retained, but that restriction on the registration of other bakers like confectioners
and pastry cooks be adjusted.
• That the subsidy on the price of bread be reduced systematically.
• That the Marketing Act be amended so that the Minister had the power to set
prices and margins at the recommendation of the marketing councils and after
consultation with the National Marketing Council.
The general drive for a deregulated agricultural market that was found in the
maize industry in particular ultimately led to the end of controlled marketing of
winter grain crops in South Africa when the Wheat Board was abolished in 1997.
Composition
The Board that was set up under the 1935 Act consisted of eight members, namely
an official from the Department of Agriculture and Forestry, three representatives
of members of co-operative producers, one representative for non-co-operative
producers, two to represent millers and one for the consumers.
After the announcement of the Wheat Control Scheme in 1938, the Board was
increased to 14 members, namely five representatives for co-operative wheat
producers, three for non-co-operative wheat producers, three for millers, one for
bakers, one for consumers and an official from the Department of Agriculture and
Forestry. In 1945 the consumers gained another representative, which increased
the Board to 15 members.
In terms of the Winter Grain Scheme of 1950 the members of the Wheat Board were
increased to 21, eleven of whom represented the wheat producers, while the other
interest groups enjoyed smaller representation – like under the previous dispensa-
tions. Later the composition of the Wheat Board was reduced to 13 members, eight of
FOR MANY YEARS THE WHEAT BOARD WAS THE
SOUTH AFRICAN GOVERNMENT’S REPRESENTATIVE
ON THE INTERNATIONAL GRAIN COUNCIL (IGC) AND
ATTENDED THE MEETINGS OF THIS ORGANISATION
EVERY YEAR. BECAUSE SOUTH AFRICA WAS A NET
IMPORTER OF WHEAT, THE IGC’S MEETINGS OFFERED
A GOOD OPPORTUNITY NOT ONLY TO KEEP UP WITH
DEVELOPMENTS IN THE INDUSTRY, BUT ALSO TO
BUILD CONTACTS WITH A VIEW TO IMPORTS.
The old Wheat Board building.