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SAGIS INSPECTION REPORT OF PHYSICAL STOCK
Grain SA also requested SAGIS to publish their inspection report, and this is currently available to
interested individuals. According to the SAGIS report there were 437 inspections – of which 433 were
physical inspections – from March 2022 up to and including September 2022. According to this report,
the majority of the deviations found were understated, and the average understatement figure was
0,12% and the overstatement figure 0,09% for the period. This report offers the market the opportunity
to see how many inspections were done and what the net effect was.
The industry also requested SAGIS via the Maize Forum to report, through statutory measures, the
weekly producer deliveries and the national monthly stock levels on the basis of grades. This will
support the market to obtain more transparent information, but also to see on the basis of quality
what the stock levels in the country are.
The industry’s request that SAGIS release a report, through statutory measures, on the weekly
producer deliveries and the national monthly stock levels on the basis of grades succeeded. This
information is currently being released to promote transparent information and therefore a better
functioning market.
LEAF SERVICES
LEAF Services was appointed by the Department of Agriculture, Land Reform and Rural Development
in terms of agricultural product standards legislation to inspect grains and grain products. Their inspec-
tion involves grading unprocessed grain and grain products – something that is already being done by
the industry. It would therefore mean the current self-regulating grading system is being duplicated.
Grain SA, with the mandate of Congress, expressed its opinion against this duplication not only
of services, but also of costs. Together with various other role-players in the industry, Grain SA
appealed against the introduction of LEAF’s proposed levy per ton. By participating in the discus-
sions and ensuring that producers are not affected by unnecessary additional costs, Grain SA had
already saved producers ±R500 million in costs by the end of the reporting period.
The first attempt by LEAF Services was thwarted by the cooperation of a large number of role-
players in the industry. The industry successfully appealed against the introduction of levies by
LEAF Services. Currently, LEAF is in the process of consulting with the industry from the beginning
again regarding the delivery of the inspection service. LEAF as inspection service in terms of the
agricultural standards legislation cannot be kept away permanently, but Grain SA and other role-
players are doing everything they can to get this inspection service in a format that will have the
smallest impact on producers and the industry.
CONCERN REGARDING STORAGE OF BARLEY
The barley industry was under considerable pressure this year because of various reasons. The most
recent of these was the risk regarding the storage of barley. There were various disputes between
buyers and storage facilities, which led to one of the storage facilities indicating that they could not
reach a settlement to establish a contract for the season. This had an impact on the Swartland and
irrigation production areas in particular. Although this is an issue between a buyer and storage facil-
ity, it has significant consequences for the producer. Grain SA consulted with
both parties on an ongoing basis to find solutions and reduce the risks
for producers as far as possible.
EXPORTS
Favourable production conditions are always accompa-
nied by the challenge of maintaining a balance between
the supply of and demand for grains. A part of this chal-
lenge is to make sure that exports take place effectively.
Grain SA made sure that the markets remained open
for maize and soybeans and that the system functioned
effectively. Although the exports were above average,
there were still many logistical challenges and bottle-
necks to be resolved as quickly as possible. Grain SA
was involved in discussions with all the role-players at all
times to ensure effectiveness. Grain SA also approached
Transnet to discuss the possibility of a larger quantity of
grains being transported by rail.
APPLIED ECONOMY AND
MEMBER SERVICES
GRAIN SA
made sure
open
THAT
FOR
EXPORTS
MARKETS FOR MAIZE AND
SOYBEANS REMAINED