6 / 37
THE
GRAIN AND OILSEED INDUSTRY
OF SOUTH AFRICA – A JOURNEY THROUGH TIME
ႈ
MAIZE
The following table contains a summary of the most important moments in the history
of the control over and gradual deregulation of the maize industry in South Africa:
1931
Mealie Control Act – export quotas
1935
Mealie Control Amendment Act, Maize Advisory Board appointed, control of maize exports
1937
Marketing Act
1938
First Maize Control Scheme established under the Marketing Act, amended from 1 May 1939
1944/1945 Start of single-channel marketing system for maize
1953
Establishment of Stabilisation Fund for Maize Board
1979
Summer Grain Scheme
1987
Summer Grain Scheme becomes single-channel pooled scheme
1994/1995 Deregulation commences with the implementation of a surplus-removal scheme, price floor
and export control
1995/1996 Partial exemption from export prohibition to trade – the Maize Board manages export pools
1996/1997 Maize marketing totally deregulated
1997
Maize Board abolished
The west wing of the Union Buildings, where the first meeting of the Maize Trust was held.
The government’s involvement with the maize industry was initially aimed at solving
problems resulting from climate factors. The first of these solutions was implemented
in 1916 in the form of loans to purchase supplies, seed, implements and fertiliser, and
later also for animal feed and transport costs for livestock.
In the 1920s producers generally obtained very good prices for their maize,
despite a reasonably large supply due to good harvests. However, by 1930 and
1931, during the Great Depression, maize prices dropped dramatically globally.
This, combinedwith good harvests in the 1931/1932 season, exercised tremendous
downwards pressure on the local maize price. Exporters were not directly
involved in the production of maize and had no incentive to export the surplus
when foreign prices dropped. The position was so critical that only two options
actually remained – government assistance or increased joint marketing.