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18

Direct payments

Grain SA members may also, if they prefer, make direct payments to Grain SA. With direct pay-

ments the producer can inform Grain SA of the number of tons delivered and Grain SA will then

issue an invoice to the producer. This method of payment is particularly suitable where producers

deliver grain to companies that do not currently form part of the collection agents.

EMPLOYMENT OF LEVY

The levies that Grain SA receives from producers are used for specific purposes and the budgets for

these are approved by Congress on an annual basis. However, this means that the producers who

pay levies have input into how it is applied. The figure below indicates how the levies were employed

in the 2019/2020 season.

The biggest part of the levy fund is used for grain economics and research. This is done by the

commodity services (mainly economists) and the research team. The aim is to ensure that the market

and input environment functions optimally in order to also ensure the sustainability of the producer.

Research plays an important role in gathering the necessary expertise to ensure that producer-driven

research enjoys priority and that research funding is utilised optimally.

The levy fund is further used for marketing actions, member benefits and commission for the collec-

tion agents helping to collect the levies for Grain SA. Marketing actions are launched throughout the

year to develop and promote the image of Grain SA and agriculture as a whole.

Members can be assured that the levy is used purely to promote members’ interests, and Grain SA

feels strongly that the use of the funds must be driven by the members who are represented by

the organisation.

MEMBER STATISTICS

Grain SA

Only grain producers can be members of Grain SA. The total active members on the Grain SA

database for the 2022 Congress year was 7 439 in total. Grain SA is still trying to make the member

database more accurate to ensure that it is workable, correct and efficient. It is particularly important

to have accurate member information for the distribution of documentation and other important

information from the organisation to the members.

The number of members who pay the Grain SA levy continues to move laterally relatively constantly.

The collection of the member levy remains the biggest focus of the levy marketing team and will also

remain the biggest focal point in the future to ensure the financial sustainability of the organisation.

5%

10%

5%

14%

4%

1%

3%

26%

18%

3%

10%

1%

COLLECTION COMMISSION

GRAIN SA MANAGEMENT FEE

BRANCH FUNDING

PROVINCIAL AGRICULTURAL UNIONS

MEMBERSHIP FEES

MEMBERSHIP FEES (NON-PAID-UP MEMBERS)

LEGAL FEES

FARMER DEVELOPMENT PROJECT

GRAIN ECONOMY

GRAIN RESEARCH

MEMBER BENEFITS

MARKETING

COMMISSION MARKETERS

GRAPH 1

USE OF THE LEVY IN THE 2022/2023 MARKETING YEAR

0%

MARKETING, NAMPO AND

RESEARCH COORDINATION