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CHAPTER 2
Groundnuts Producer Advisory Committee
In time the need for greater co-operation in die groundnuts industry increased,
which led to the merging of co-operative enterprises. In 1934 it resulted in the
establishment of the Groundnut Producer Advisory Committee by the Waterberg
Co-operative Agricultural Association and other role-players in the industry.
The Committee, which comprised representatives from the producers as well as
crushers, was later replaced by the official Groundnuts Advisory Committee,
chaired by the Secretary of Agriculture.
In order to support the groundnuts industry during the years of the Depression in
the 1930s, the government increased the import rights on groundnuts and decreed
that no permits for importing groundnuts for crushing purposes would be granted,
unless proof could be provided that the local surplus production had been taken
up by the crushing industry. The price at which the surplus groundnuts in South
Africa were made available to the crushing industry was determined every year after
consultation between the Groundnuts Advisory Committee and the Departments of
Agriculture and Trade and Industry.
In the meantime the co-operative producer organisations established a central
co-operative for oilseeds with a view to mutual consultation and discussion of
the interests of the oilseeds industry. This central co-operative, together with the
Groundnuts Advisory Committee, campaigned for the establishment of a single-
channel marketing scheme in terms of the Marketing Act of 1937.
Oilseeds Control Scheme and Oilseeds Control Board
On 25 February 1952 the Oilseeds Control Scheme was announced in accordance
with the Marketing Act of 1937, which started the period of regulation of the
oilseeds industry.
The Oilseeds Control Scheme made provision for the establishment of an Oilseeds
Control Board (the Oilseeds Board) to which certain powers, authorities and duties
with respect to groundnuts and sunflower seeds were delegated. The Oilseeds
Board was authorised, in terms of the Oilseeds Control Scheme, to act as the only
buyer of the oilseeds, and on 18 April 1952 a proclamation was issued in terms of
which the sale of groundnuts and sunflower seed by producers to anybody other
than the Oilseeds Board was prohibited. This control was extended to soybeans
in 1968.
All the interest groups in the oilseeds industry were represented on the Oilseeds
Board, but in accordance with the requirements of the Marketing Act the majority
of the Board’s members were producers.
In order to make provision for funding for the Oilseeds Board, statutory levies
were introduced on sunflower seed and shelled as well as unshelled ground-
nuts. The first levies were set at 1 shilling/100 lbs (45,36 kg) of shelled ground-
nuts, 8 pennies/100 lbs of unshelled groundnuts and 7 pennies/100 lbs of
sunflower seed.
Functions and powers
The routine functions of the Oilseeds Board included the purchasing, preparation,
grading, transport, export and selling of oilseeds, while it also carried out an infor-
mation supply function with respect to oilseeds. The need for a reliable information
service increased with time because of greater international competition and the
accompanying price fluctuations.
The Oilseeds Board was given a variety of powers and duties with the approval of
the Minister of Agriculture. These included the following:
• The introduction of a prohibition on the sale of oilseeds to anybody other than
the Oilseeds Board.
• The fixing of oilseeds prices, charging of levies and creation of reserve funds.
• The drafting of grading and packaging regulations.
• The investment of funds and acquisition of fixed property.