Inputs research and development/Insetnavorsing en -ontwikkeling

Introduction

The rand/dollar exchange rate and crude oil price play an important role in the forming of local input prices. Over a 12 month period, from October 2013 to October 2014, the value of the rand depreciated with 11% against the dollar, while the Brent crude oil price decreased from 9,30 per barrel to ,93 per barrel.

On average maize, soybean, sunflower and grain sorghum seed prices increased respectively by an average of 5,5%, 5,5%, 5,6% and 18,0% compared with the previous season. When looking at local fertiliser prices, the prices of LAN, urea MAP and potassium chloride increased respectively by 11%, 9%, 14% and 6%.

Since the active ingredients of locally formulated agricultural chemicals need to be imported, the level of the exchange rate has a direct impact on local prices; this caused herbicide and insecticide prices to increase on a year-to-year basis.

With the depreciation of the value of the rand and increases in local taxes on fuel, the domestic wholesale price of diesel in Gauteng decreased by 1,08% from R12,60 per litre in October 2013 to R12,46 per litre in October 2014. On an annual basis the prices of agricultural machinery equipment increased by 11,9%. The prices of tractors, combine harvesters, hay and forage equipment and implements increased by 10,7%, 14,5%, 14,0% and 7,9% respectively.

VAT zero rates at risk

The VAT Act allows certain agricultural inputs to be purchased at a VAT zero rate. This concession was introduced in 1991 to offer cashflow relief to the agricultural industry.

Inputs that are currently included in this benefit are:

• Animal feed – including any maize product for animal feed
• Animal drugs
• Fertilisers
• Agrochemicals
• Plants
• Seed

These inputs can currently be supplied at a zero rate to primary producers who are VAT registered. In terms of cashflow, this is a proven benefit to producers.

However, the Treasury and the South African Revenue Services (SARS) have indicated that evidence suggests that large-scale fraud occurs in this input taxation system. This has led to the Treasury and SARS revising the zero rate system for inputs.

On 12 May 2014 the two parties informed stakeholders in the agricultural industry about the fraud occurring in the system, and that they wanted to propose that the zero rate concession be replaced by VAT on inputs at standard rates.

What will the scrapping of the VAT zero rate mean in practice?

• Producers will now have to purchase the above inputs inclusive of VAT. This means they will have to pay 14% more.
• The VAT may be reclaimed, but this is where the producer incurs costs – the period it takes from the purchase of the input until the VAT has been successfully claimed from SARS. This additional interest expense and/or opportunity cost will be for the producer's account. It will also involve producers having to apply for 14% more financing on production loans.

Looking ahead

The Treasury and SARS gave organised agriculture until 12 May to test their proposal among its members and then comment on it. Comments from organised agriculture structures were sent to the Treasury and SARS, giving reasons for the retention of the VAT zero rate benefit, and proposals were also submitted for combating VAT fraud. Further consultations were also requested with the two parties, and further meetings were held on 28 July 2014.

In spite of all the comments, the proposal by SARS and the Treasury to scrap VAT zero rates on inputs was published in the draft for the draft Taxation Laws Amendment Bill for public comment on 17 July 2014.

After a major attempt to consult with all role-players to point out the possible negative impact of these changes to SARS and the Treasury, most of the individual role-players in organised agriculture again submitted comments for the retention of the benefit on 17 August 2014. On 26 August 2014 Agri SA on behalf of organised agriculture attended parliamentary processes where presentations were made to standing committees on proposed changes by the Treasury and from agriculture for the retention of the benefit.

On 15 September 2014 a further meeting was held with SARS and the Treasury, at which solutions to combat fraud in this system were discussed. During October 2014 the Treasury postponed the decision regarding the scrapping of VAT zero rates with at least 12 months, pending investigations into alternative proposals to prevent fraud.

Be assured that organised agriculture is doing all it can to retain this benefit for its members!

The seed industry

Seed is an important production input and consists of about 12% of a maize producer's variable production cost. With the objective to increase transparency and competitiveness in the grain and oilseeds industry, seed prices are monitored annually by Grain SA. The continuous increase in seed prices is becoming a great concern for grain producers. Grain SA therefore arranged meetings with various seed companies in order to address the concern about seed prices' increase in relation to the maize price.

Seed prices

The prices for the 2014/2015 production season were released by the respective seed companies in May 2014. Maize seed prices for the 2014/2015 production season rose by 5,5% on average. Sunflower seed prices rose by 5,6% on average, grain sorghum prices by 18% and soybean prices by 5,5%.A good barometer for assessing price increases is the producer price index (PPI).The average PPI increase for 2014 until October was 7,9%.Except for the sorghum seed prices, the seed price increases were below the PPI rate.

Since the 2001/2002 production season the maize price index (Graph 1) weakened significantly in comparison with the maize seed price index. With the continued increase in maize seed prices and with an estimated average producer price¹ of R1 697 per ton for the coming season (2014/2015); the maize price index continue to weaken in relation to the maize seed price index. This increasing trend of maize seed prices is a concern for Grain SA.

Inleiding

Die rand/dollar-wisselkoers en prys van ruolie speel 'n belangrike rol in die bepaling van plaaslike insetpryse. Oor 'n tydperk van twaalf maande, vanaf Oktober 2013 tot Oktober 2014, het die waarde van die rand met 11% teen die dollar gedaal, terwyl die prys van Brent-ruolie vanaf 9,30 per vat tot ,93 per vat gedaal het.

Mielie-, sojaboon-, sonneblom- en graansorghumsaadpryse het gemiddeld onderskeidelik met 5,5%, 5,5%, 5,6% en 18,0% gestyg, vergeleke met die vorige seisoen. As 'n mens na die plaaslike kunsmispryse kyk, het die prys van KAN, ureum, MAP en kaliumchloried onderskeidelik met 11%, 9%, 14% en 6% gestyg.

Aangesien die aktiewe bestanddele van plaaslikgeformuleerde landbouchemikalieë ingevoer moet word, het die vlak van die wisselkoers 'n direkte invloed op plaaslike pryse. Dit het veroorsaak dat onkruiddoder- en insekdoderpryse op 'n jaar-tot-jaar-grondslag gestyg het.

Met die daling van die waarde van die rand en stygings in plaaslike brandstofbelasting het die plaaslike groothandelprys van diesel in Gauteng met 1,08% vanaf R12,60 per liter in Oktober 2013 tot R12,46 per liter in Oktober 2014 gedaal. Op 'n jaargrondslag het die pryse van landboumasjinerietoerusting met 11,9% gestyg. Die pryse van trekkers, stropers, hooi- en voertoerusting en -implemente het met 10,7%, 14,5%, 14,0% en 7,9% onderskeidelik gestyg.

BTW-nulkoerse in die weegskaal

Die BTW-wet laat toe dat sekere landbou-insette teen 'n BTW-nulkoers aangekoop kan word. Hierdie konsessie is in 1991 ingestel om kontantvloeiverligting vir die landbou-industrie te bied.

Insette wat tans hierdie voordeel geniet, sluit in:

• Veevoer – insluitend enige mielieproduk vir veevoer
• Dieremiddels
• Kunsmis
• Landbouchemikalieë
• Plante
• Saad

Hierdie insette kan tans teen 'n nulkoers aan primêre produsente wat vir BTW geregistreer is, verskaf word. In terme van kontantvloei is hierdie dus 'n bewese voordeel vir produsente.

Die Tesourie en die Suid-Afrikaanse Inkomstediens (SAID) het egter aan die lig gebring dat daar bewyse is wat aan die hand doen dat grootskaalse bedrog in hierdie insetbelastingstelsel plaasvind. Dit het die Tesourie en die SAID genoop om die nulkoersstelsel op insette te hersien.

Op 12 Mei 2014 het die twee partye belanghebbendes in die landbou-industrie ingelig oor die bedrog wat in die stelsel plaasvind en dat hulle wil voorstel dat die nulkoerskonsessie vervang word met BTW op insette teen standaardkoerse.

Wat beteken die wegneem van die BTW-nulkoers in die praktyk?

• Produsente gaan nou bogenoemde insette BTW-draend aankoop. Dit wil sê hulle gaan 14% meer daarvoor betaal.
• Die BTW gaan weliswaar teruggeëis kan word, maar dit is hier waar die koste vir die produsent inkom – die tydperk wat dit neem vanaf die aankoop van die insetmiddel totdat die BTW suksesvol vanaf die SAID teruggeëis word. Hierdie ekstra rente- en/of geleentheidskoste gaan dus vir die produsent se rekening wees. Dit gaan ook behels dat produsente vir 14% meer finansiering op produksielenings moet aansoek doen.

Die pad vorentoe

Die Tesourie en die SAID het georganiseerde landbou tot 12 Mei kans gegee om hulle voorstel met hul lede te gaan toets en dan kommentaar daarop te lewer. Kommentaar vanaf georganiseerde landboustrukture is aan die Tesourie en die SAID gestuur wat redes aanvoer vir die behoud van die BTW-nulkoersvoordeel en daar is ook voorstelle gemaak oor hoe BTW-bedrog bekamp kan word. Verdere konsultasie is ook met die twee partye aangevra en daar is weer met hulle op 28 Julie 2014 vergader.

Nieteenstaande al die kommentaar is die SAID en Tesourie se voorstel om weg te doen met BTW-nulkoerse op insette op 17 Julie 2014 in die konsep van die Belastingwysigingswetsontwerp vir publieke kommentaar gepubliseer.

Ná 'n groot poging van konsultasie met alle rolspelers om die moontlike negatiewe impak van hierdie veranderinge vir die SAID en die Tesourie uit te wys, het die meeste individuele rolspelers in georganiseerde landbou weer teen 17 Augustus 2014 kommentaar ingedien vir die behoud van hierdie voordeel. Op 26 Augustus 2014 het Agri SA namens georganiseerde landbou parlementêre prosesse bygewoon waar die staande komitees voorleggings aangebied het oor voorgestelde veranderinge deur die Tesourie en van landbou se kant af vir die behoud daarvan.

Op 15 September 2014 is daar weer 'n vergadering met die SAID en die Tesourie gehou waar veral oplossings om bedrog in dié sisteem te bekamp, bespreek is. In Oktober 2014 het Tesourie die afskaffing van die BTW-nulkoerse met minstens 12 maande uitgestel hangende ondersoeke na alternatiewe voorstelle.

Wees verseker dat georganiseerde landbou alles in hulle vermoë doen om hierdie voordeel vir hul lede te behou!

Die saadbedryf

Saad is 'n belangrike produksie-inset en maak ongeveer 12% van 'n mielieprodusent se veranderlike produksiekoste uit. Saadpryse word jaarliks deur Graan SA gemonitor om deursigtigheid en mededingendheid in die graan- en oliesadebedryf te verhoog. Die deurlopende verhoging in saadpryse raak 'n groot bekommernis vir graanprodusente. Graan SA het gevolglik vergaderings met verskillende saadmaatskappye gereël om die kommer oor die verhoging in saadpryse in verhouding tot die mielieprys te bespreek.

Saadpryse

Die pryse vir die 2014/2015-produksieseisoen is in Mei 2014 deur die onderskeie saadmaatskappye vrygestel. Mieliesaadpryse het vir die 2014/2015-produksieseisoen gemiddeld met 5,5% gestyg. Op 'n gemiddelde basis het sonneblomsaadpryse met 5,6% gestyg, graansorghumsaadpryse met 18% en sojaboonsaadpryse met 5,5%. 'n Goeie barometer om prysstygings te evalueer, is die produsenteprysindeks (PPI). Vir 2014 tot en met Oktober was die gemiddelde PPI-styging 7,9%. Behalwe vir sorghumsaadpryse is die ander saadprysstygings onder die PPI-koers.

Sedert die 2001/2002-produksieseisoen het die mielieprysindeks (Grafiek 1) vergeleke met die mieliesaadprysindeks beduidend verswak. Met die voortgesette styging in mieliesaadpryse en 'n geraamde gemiddelde produsenteprys¹ van R1 697 per ton vir die komende seisoen (2014/2015), verswak die mielieprysindeks steeds vergeleke met die mieliesaadprysindeks. Hierdie stygende tendens in mieliesaadpryse is vir Graan SA 'n bron tot kommer.

Seed market

According to the National Crop Estimates Committee (NCEC) the area planted to maize during the 2013/2014 production season is 2 688 200 hectares. In comparison with the 2012/2013 season the area planted decreased by 3,3% or 93 000 hectares. According to the production cost figures of Grain SA the value of maize seed planted during the 2012/2013 production season reached R2,688 billion. Given the assumption that producers planted the same quantity of seed per hectare in the 2013/2014 production season, the total value of seed planted is estimated to have increased from R2,688 billion to R2,742 billion. Although there was a decrease in the maize hectares planted, the value of the local sales of seed companies increased.

Seed quality

The official seed testing station of South Africa monitors seed quality on an annual basis in terms of the Plant Improvement Act. From August 2013 to September 2014, 760 samples were taken of which 16 samples did not comply with the minimum requirements of the Plant Improvement Act. Of these, 13 samples taken at seed traders did not comply, while two samples of seed meant for exports did not comply with the minimum requirements of the act. There was one sample of imported seed that did not meet the minimum requirements.

During the 2013/2014 production season several problems with seed quality were reported to Grain SA by members. These ranged from germination problems during the planting of maize and pollination problems with sunflower, to fusariosis and budding in maize. Grain SA assisted its members in disputes with individual companies in this regard.

Farm saved seed and draft royalties model

A committee consisting of Grain SA, the seed industry and other stakeholders was established to look at different models of compensating seed companies for the negative impact that farm saved seed has on the industry.

According to SANSOR, 70% of wheat seed and 80% of soybean seed is held back every year. This practice, and the fact that it may be done legally, prevents investment in the local seed industry and keeps the most recent technology out of reach of South African producers.

The model that is currently on the table and that will probably perform the best in South Africa is based on the same principles as those by means of which the Winter Cereal Trust currently raises funds for research. The advantage of such a system is that everybody pays, as it is a statutory measure and the funds can be held only for farm saved seed. However, the challenge of such a system is to identify cultivars during delivery when the levy has to be charged.

It was further proposed that the value of these royalties should be calculated as a percentage of the grain price concerned to prevent this levy from becoming too expensive in relation to the profitability of the crop.

A lot still has to be done and many challenges will have to be overcome, but everybody in the industry involved with open-pollinated crops agree that a workable system will have to be found quickly to encourage investment in the seed industry.

Seed availability

The seed industry (SANSOR) assured Grain SA during the annual meeting of the two organisations (5 August 2014) that a sufficient quantity of grain and oilseeds seed will be available for the 2014/2015 production season. They however, stated that seed of certain popular sizes and varieties may be limited.

Liaison with SANSOR on a regular basis is important to ensure that problems can be solved together. At the same time higher efficiency in grain and oilseeds production can be achieved. Other issues that were addressed with the representative body of the seed industry include:

• Market trends and production costs for the grain and oilseeds industry
• Maize seed exports to the USA
• Plant breeders’ rights/farm saved seed
• Certified seed – what is guaranteed?
• VAT zero rate on inputs
• Seed import tariffs
• New GMO characteristics

The fertiliser industry

South Africa is a net importer of fertiliser. All of our potassium, as well as 60% to 70% of our nitrogen requirements, are imported. This means that local prices would be subject to the same supply and demand drivers as in the international industry. Local prices are therefore also influenced by the shipping cost and the rand/dollar exchange rate. Most of the international fertiliser prices (dollar per ton) increased on an annual basis, and due to the significant depreciation of the exchange rate international fertiliser prices increased even more.

Fertiliser prices

From October 2013 to October 2014 the international price of ammonia, urea, DAP and sulphur increased respectively by 30%, 10%, 17% and 126%, while the price of MOP decreased by12%. The international fertiliser prices are shown in Table 1.

Saadmark

Volgens die Nasionale Oesskattingskomitee (NOK) is die oppervlakte mielies wat in die 2013/2014-produksieseisoen aangeplant is, 2 688 200 hektaar. Vergeleke met die 2012/2013-seisoen het die oppervlakte wat aangeplant is met 3,3% of 93 000 hektaar verminder. Volgens die produksiekostesyfers van Graan SA was die waarde van mieliesaad wat in die 2012/2013-produksieseisoen geplant is, R2,688 miljard. Gegewe die aanname dat produsente in die 2013/2014-produksieseisoen dieselfde hoeveelheid saad per hektaar geplant het, word daar geraam dat die totale waarde van die saad wat geplant is vanaf R2,688 miljard tot R2,742 miljard toegeneem het. Hoewel die getal hektaar mielies wat geplant is, afgeneem het, het die waarde van die plaaslike verkope van saadmaatskappye gestyg.

Saadgehalte

Die amptelike saadtoetsstasie van Suid-Afrika monitor saadgehalte op ‘n jaargrondslag ingevolge die Wet op Plantverbetering. Vanaf Augustus 2013 tot September 2014 is 760 monsters geneem, waarvan 16 nie aan die minimumvereistes van die Wet op Plantverbetering voldoen het nie. Van hierdie 16 het 13 monsters wat by saadhandelaars geneem is, nie voldoen nie, terwyl twee monsters van saad wat vir uitvoer bestem was, nie aan die minimumvereistes van die wet voldoen het nie. Daar was een monster ingevoerde saad wat nie aan die minimumvereistes voldoen het nie.

Gedurende die 2013/2014-produksieseisoen is verskeie probleme met saadkwaliteit by Graan SA deur lede aangemeld. Dit het gewissel van ontkiemingsprobleme tydens plant met mielies, bestuiwingsprobleme met sonneblom tot fusarium en uitloop by mielies. Graan SA het in hierdie verband sy lede met dispute met individuele maatskappye bygestaan.

Terughouding van saad en konseptantiÈmemodel

Tussen Graan SA, die saadbedryf en ander belanghebbendes is ‘n komitee in die lewe geroep om na verskillende modelle te kyk oor hoe saadmaatskappye vergoed kan word vir die negatiewe impak wat die terughouding van saad op die bedryf het.

Volgens SANSOR word 70% van koringsaad en 80% van sojaboonsaad jaarliks teruggehou. Hierdie praktyk en die feit dat dit wetlik gedoen mag word, verhoed investering in die plaaslike saadbedryf en hou die nuutste tegnologie buite die bereik van Suid-Afrikaanse produsente.

Die model wat tans op die tafel is en moontlik die beste in Suid-Afrika gaan werk, is gebaseer op dieselfde beginsels as die manier waarmee die Wintergraantrust tans fondse vir navorsing insamel. Die voordeel van so ‘n stelsel is dat almal betaal omdat dit ‘n statutêre maatreël is en dat die fondse slegs vir saadterughoudings gehou kan word. Die uitdaging van so ‘n stelsel is egter die identifikasie van kultivars tydens lewering wanneer die heffing gehef moet word.

Daar word verder voorgestel dat die waarde van hierdie tantieme bereken moet word as ‘n persentasie van die betrokke graanprys om te verhoed dat hierdie heffing te duur raak relatief tot die winsgewendheid van die gewas.

Daar is nog baie water wat in die see moet loop en baie uitdagings wat oorkom moet word, maar almal in die bedryf van oopbestuifde gewasse is dit eens – daar moet vinnig na ‘n werkbare stelsel beweeg word om investering in die saadbedryf aan te moedig.

Beskikbaarheid van saad

Die saadbedryf (SANSOR) het Graan SA tydens die jaarlikse vergadering van die twee organisasies (5 Augustus 2014) verseker dat ‘n voldoende hoeveelheid graan- en oliesade-saad vir die 2014/2015-produksieseisoen beskikbaar sal wees. Hulle het egter gesê dat saad van sekere gewilde groottes en variëteite dalk beperk kan wees.

Dit is belangrik om op ‘n gereelde grondslag met SANSOR te skakel om seker te maak dat probleme saam opgelos kan word. Terselfdertyd kan groter doeltreffendheid met graan- en oliesadeproduksie bereik word. Ander kwessies wat met die verteenwoordigende liggaam van die saadbedryf hanteer is, sluit in:

• Marktendense en produksiekoste vir die graan- en oliesadebedryf
• Mieliesaaduitvoere na die VSA
• Planttelersregte/terughouding van saad
• Gesertifiseerde saad – wat word gewaarborg?
• BTW-nulkoers op insette
• Saad-invoertariewe
• Nuwe GMO-eienskappe

Die kunsmisbedryf

Suid-Afrika is ‘n netto invoerder van kunsmis. Al ons kalium asook 60% tot 70% van ons stikstofbenodighede, word ingevoer. Dit beteken dat plaaslike pryse aan dieselfde vraag en aanbod-drywers as die internasionale bedryf onderhewig is. Plaaslike pryse word gevolglik ook deur die verskepingskoste en die rand/dollar-wisselkoers beïnvloed. Die meeste van die internasionale kunsmispryse (dollar per ton) styg op ‘n jaargrondslag, en as gevolg van die beduidende depresiasie van die wisselkoers, het internasionale kunsmispryse selfs nog meer gestyg.

Kunsmispryse

The rand/dollar exchange rate weakened from October 2013 to October 2014. Due to this depreciation in the exchange rate from R10,047 in October 2013 to R11,190 in October 2014, the percentage increase in international prices in rand terms was more than the percentage increase of international prices in dollar terms. See Table 2 and Graph 2.

Die rand/dollar-wisselkoers het van Oktober 2013 tot Oktober 2014 verswak. As gevolg van hierdie depresiasie in die wisselkoers vanaf R10,047 in Oktober 2013 tot R11,190 in Oktober 2014 was die persentasie verhoging in internasionale pryse in randterme groter as die persentasie verhoging van internasionale pryse in dollarterme. Sien Tabel 2 en Grafiek 2.

As South Africa imports all its potassium needs, as well as ±70% of its nitrogen requirements, local prices are subject to the same factors which drives supply and demand in the international fertiliser industry. Local prices are also influenced by the rand/dollar exchange rate. From October 2013 to October 2014 the prices of LAN, urea, MAP and potassium chloride increased by 11%, 9%, 14% and 6% (Table 3) respectively.

Aangesien Suid-Afrika al sy kaliumbenodighede sowel as ongeveer 70% van sy stikstofbenodighede invoer, is plaaslike pryse onderhewig aan dieselfde faktore wat vraag en aanbod in die internasionale kunsmisbedryf aandryf. Plaaslike pryse word ook deur die rand/dollar-wisselkoers beïnvloed. Vanaf Oktober 2013 tot Oktober 2014 het die prys van KAN, ureum, MAP en kaliumchloried met onderskeidelik 11%, 9%, 14% en 6% gestyg (Tabel 3).

To look at the terms of trade between the fertiliser price and the maize price, a comparison of the producer price index of maize and the fertiliser price index was done and can be seen in Graph 3. At an estimated average producer price² of R1 697 per ton for the coming production season (2014/2015), the maize price index is weakening from the previous year mainly due to the increase in the annual average fertiliser price, while the maize price moved sideways. The gap between the maize and fertiliser price index continues to grow.

Indien daar na die ruilvoet tussen die kunsmisprys en die mielieprys gekyk word, kan 'n vergelyking tussen die produsenteprysindeks van mielies en die kunsmisprysindeks getref word, soos in Grafiek 3 gesien word. Teen 'n geraamde gemiddelde produsenteprys² van R1 697 per ton vir die komende produksieseisoen (2014/2015), verswak die mielieprysindeks sedert die vorige jaar as gevolg van die styging in die jaarlikse gemiddelde kunsmisprys, terwyl die mielieprys sywaarts beweeg het. Die gaping tussen die mielie- en kunsmisprysindeks groei steeds.

Fertiliser market

According to the production cost figures of Grain SA the value of fertiliser used in maize production reached R6,098 billion during the 2013/2014 production season. This indicates a decrease of R91 million from the previous year where maize producers’ fertiliser cost was R6,189 billion. This decrease was due to the decrease in the area planted.

Local availability of fertiliser

The annual meeting between Grain SA and the Fertiliser Association of Southern Africa (FertASA) took place on 6 June 2014.

FertASA assured Grain SA that there will be enough fertiliser available for the 2014/2015 production season and that timely delivery of fertiliser to individual producers will not be a problem. Other issues that were discussed include:

• Market trends in the maize industry and production costs for the 2014/2015 maize production season
• International and local situation in the fertiliser industry
• The availability of fertiliser and transport logistics
• Lime industry trends
• The fertiliser and lime monitoring project
• Updating of the Fertiliser Manual and grid analyses
• Fertiliser and Feeds Bill
• Zinc ash – banned or not?
• VAT zero rate

Agrochemical industry

Progress has been made with the registration of agrochemicals. The active ingredients have already been registered in South Africa. This year progress was also reported by agrochemical companies with the registration of new active ingredients. Meetings were held with the Registrar’s office to discuss issues in the agrochemical industry, which included the quality and registration of agrochemicals.

Prices

Kunsmismark

Volgens die produksiekostesyfers van Graan SA was die waarde van kunsmis wat in mielieproduksie gebruik is in die 2013/2014-produksieseisoen R6,098 miljard. Dit dui op ‘n vermindering van R91 miljoen sedert die vorige jaar, toe mielieprodusente se kunsmiskoste R6,189 miljard was. Hierdie daling was die gevolg van die afname in die oppervlakte wat aangeplant is.

Plaaslike beskikbaarheid van kunsmis

Die jaarlikse vergadering tussen Graan SA en die Kunsmisvereniging van Suidelike Afrika (FertASA) het op 6 Junie 2014 plaasgevind.

FertASA het Graan SA verseker dat daar genoeg kunsmis beskikbaar sal wees vir die 2014/2015-produksieseisoen en dat tydige aflewering van kunsmis aan individuele produsente nie ‘n probleem sal wees nie. Ander sake wat bespreek is, sluit in:

• Marktendense in die mieliebedryf en produksiekoste vir die 2014/2015-mielieproduksieseisoen
• Internasionale en plaaslike situasie in die kunsmisbedryf
• Die beskikbaarheid van kunsmis en vervoerlogistiek
• Tendense in die kalkbedryf
• Die kunsmis- en kalkmoniteringsprojek
• Opdatering van Bemestingshandleiding en ruitenet (grid)-analises
• Wetsontwerp op Kunsmis en Voere
• Sink-as – verban of nie?
• BTW-nulkoers

Landbouchemiese bedryf

Vordering is met die registrasie van landbouchemikalieë gemaak. Die aktiewe bestanddele is reeds in Suid-Afrika geregistreer. Hierdie jaar is vordering ook deur landbouchemiese maatskappye gerapporteer ten opsigte van die registrasie van nuwe aktiewe bestanddele. Vergaderings is met die Registrateur se kantoor gehou om kwessies in die landbouchemiese bedryf te bespreek, en dit het die gehalte en registrasie van landbouchemikalieë ingesluit.

Pryse

Aangesien die aktiewe bestanddele van plaaslikgeformuleerde landbouchemikalieë ingevoer moet word, het die vlak van die wisselkoers ‘n direkte invloed op plaaslike pryse. Die internasionale pryse van vier onkruiddoders wat op mielies gebruik word, kan in Tabel 4 in dollar- sowel as randterme gesien word. Die internasionale prys (dollarterme) van glifosaat, atrasien en metolachloor het vanaf September 2013 tot September 2014 met 33%, 12% en 3% onderskeidelik gedaal, terwyl die prys van asetochloor met 5% gestyg het. Die rand/dollar-wisselkoers het in hierdie tydperk verswak. Die impak hiervan kan gesien word wanneer die dollarprys in rand omgesit word.

The price movement of different insecticides used on maize can be seen in Table 5. The international insecticide prices (dollar terms) of imidacloprid, lambda-cyhalothrin, carbofuran and deltamethrin decreased from September 2013 to September 2014. When the influence of the exchange rate is included, the international insecticides price (rand terms) of imidacloprid decreased by 15%, while lambda-cyhalothrin, carbofuran and deltamethrin increased by 15%, 3% and 8% respectively.

Die prysbeweging van verskillende insekdoders wat op mielies gebruik word, kan in Tabel 5 gesien word. Die internasionale insekdoderpryse (dollarterme) van imidaklopried, lambda-sihalotrien, karbofuraan en deltametrien het van September 2013 tot September 2014 gedaal. Wanneer die invloed van die wisselkoers ingesluit word, het die internasionale insekdoderpryse (in randterme) van imidaklopried met 15% gedaal, terwyl lambda-sihalotrien, karbofuraan en deltametrien onderskeidelik met 15%, 3% en 8% gestyg het.

Quality of agrochemicals in the 2012/2013 season

A list of specific agrochemicals was compiled in collaboration with members of Grain SA during the 2012/2013 planting season to allow the active ingredients in the products concerned to be tested. All formulations are tested on the basis of the specific information appearing on the label of the product. The active ingredients of nominated products may not exceed certain limits. These standard limits are set internationally and accepted as correct by accredited laboratories. 24 products from nine different companies were selected, and only twelve products from five companies were eventually submitted and tested. Agrochemical companies can also nominate accredited laboratories of their choice where sampling and analyses of the chemicals concerned can be done by trained personnel. The two laboratories that conducted the tests were SABS-Pharmachem and Pesticide Analytical Technology.

18 active ingredients of ten products fell within the permissible standard limits and tested within specifications, but three active ingredients fell outside the limits of the specifications (see Table 6 with active ingredients).The companies concerned, Grain SA and CropLife SA were informed in writing of the deviations and both companies are involved in following up and testing to correct the formulation of the products.

Kwaliteit van landbouchemiese middels in die 2012/2013-seisoen

‘n Lys van spesifieke landbouchemiese middels is in samewerking met lede van Graan SA tydens die 2012/2013-plantseisoen saamgestel, om sodoende die aktiewe bestanddele se inhoud van die betrokke produkte te laat toets. Alle formulerings word getoets nagelang van die spesifieke inligting wat op die etiket van ‘n produk verskyn. Genomineerde produkte se aktiewe bestanddele mag nie sekere limiete oorskry nie. Hierdie standaardlimiete word internasionaal bepaal en deur geakkrediteerde laboratoriums as korrek aanvaar. 24 produkte van nege verskillende maatskappye is gekies, waarvan slegs twaalf produkte van vyf maatskappye uiteindelik ingedien en getoets is. Landbouchemiese maatskappye kan ook self geakkrediteerde laboratoriums van hul keuse benoem, waar die monsterneming en analises van die betrokke middels gedoen kan word deur opgeleide persone. Die twee laboratoriums waarby die toetse gedoen is, was onderskeidelik die SABS-Pharmachem en Pesticide Analytical Technology.

The success of this monitoring project to a great extent depends on the cooperation of agrochemical companies and producers, who can nominate all agrochemicals (herbicides, insecticides, fungicides and nematicides) to Grain SA on the basis of their membership.

Chemical market

According to the production cost figures of Grain SA the value of agrochemicals used in maize production during the 2013/2014 production season reached R2,187 billion. The chemical costs for the 2012/2013 production season were R2,020 billion, which indicates an increase of R167 million for the 2012/2013 production season.

Local availability of chemicals

On 6 August 2014 Grain SA’s Production/Input Working Group met with the Association of Veterinary and Crop Associations of South Africa (AVCASA) and the following issues were discussed:

• Market trends in the grain industry and production costs for the 2014/2015 maize production season
• International and local situation in the agrochemical industry
• Prices and availability of agrochemicals
• The future of the quality monitoring project for agrochemicals
• Progress with normal registration
• Registration of chemicals for minor use
• Africa stockpiles programme
• Future disposal of empty containers
• AVCASA Waste Management Plan
• Rodents
• Neonicotinoid and bees
• Biological ingredients – registration requirements
• Active ingredients must be indicated clearly on the labels of chemical products
• Miscibility of chemicals
• Herbicide resistance workshop
• VAT zero rate

Diesel fuel industry
 
The domestic wholesale price of diesel in Gauteng decreased by 1,08% on an annual basis (October 2013 to October 2014). Since diesel constitutes approximately 15% of the variable production cost of maize, this increase certainly placed pressure on input costs and the profitability of grain and oilseeds production.

Grain SA provides grain and oilseeds producers with estimates of diesel price fluctuations for the month to come. By doing this, Grain SA assists its producers to enable them to plan whether or not to buy diesel at a given point in time. This provides transparency in the diesel market, which makes it possible for producers to save on production costs.

Prices

Die sukses van hierdie moniteringsprojek hang grootliks af van die samewerking van landbouchemiese maatskappye en produsente wat deur hulle lidmaatskap aan Graan SA alle landbouchemiese middels (onkruiddoders, insekdoders, swamdoders en nematiciede) kan nomineer.

Mark vir chemikalieË

Volgens die produksiekostesyfers van Graan SA was die waarde van landbouchemikalieë wat in mielieproduksie gebruik is in die 2013/2014-produksieseisoen R2,187 miljard. Die koste van chemikalieë vir die 2012/2013-produksieseisoen was R2,020 miljard, wat op ‘n styging van R167 miljoen vir die 2012/2013-produksieseisoen dui.

Plaaslike beskikbaarheid van chemikalieË

Op 6 Augustus 2014 het Graan SA se produksie/inset-werkgroep met die Vereniging vir Veterinêre- en Gewasverenigings van Suid-Afrika (AVCASA) vergader, en die volgende sake is bespreek:

• Marktendense in die graanbedryf en produksiekoste vir die 2014/2015-mielieproduksieseisoen
• Die internasionale en plaaslike situasie in die landbouchemiese bedryf
• Pryse en beskikbaarheid van landbouchemikalieë
• Die toekoms van die gehaltemoniteringsprojek van landbouchemikalieë
• Vordering met normale registrasie
• Registrasie van chemikalieë vir geringe gebruik
• Opgaarprogram in Afrika
• Toekomstige wegdoening van leë houers
• AVCASA-afvalbestuursprogram
• Knaagdiere
• Neonikotinoïed en bye
• Biologiese middels – registrasievereistes
• Aktiewe bestanddele moet duidelik op etikette van chemiese middels aangebring wees
• Mengbaarheid van chemiese middels
• Onkruiddoderweerstandswerkswinkel
• BTW-nulkoers

Dieselbrandstofbedryf

Die plaaslike groothandelprys van diesel in Gauteng het op ‘n jaargrondslag (Oktober 2013 tot Oktober 2014) met 1,08% gedaal. Aangesien diesel ongeveer 15% van die veranderlike produksiekoste van mielies uitmaak, het hierdie styging beslis druk op insetkoste en die winsgewendheid van graan- en oliesadeproduksie geplaas.

Graan SA verskaf aan graan- en oliesadeprodusente ramings van dieselprysskommelings vir die maand wat voorlê. Sodoende help Graan SA sy produsente om te beplan of hulle op ‘n gegewe tydstip diesel moet aankoop of nie. Dit verskaf deursigtigheid in die dieselmark, wat dit vir produsente moontlik maak om op produksiekoste te bespaar.

Pryse

The maize price index and the diesel price index are shown in Graph 5. With the annual average diesel price increasing from the previous year, and an expected producer price³ of R1 697 per ton for maize for the coming season, the ratio between the diesel price and the maize price continues to weaken.

Die mielieprysindeks en die dieselprysindeks word in Grafiek 5 getoon. Met die jaarlikse gemiddelde dieselprys wat verhoog het sedert die vorige jaar, en ‘n verwagte produsenteprys³ van R1 697 per ton vir mielies vir die komende seisoen, verswak die verhouding tussen die dieselprys en die mielieprys steeds.

Rebate on diesel

Korting op diesel

Diesel rebate system

The diesel rebate once again received attention during this reporting period. The format and layout of a diesel logbook were scrutinised. On 10 February 2014 a workshop was held on the layout of a logbook to qualify for the diesel rebate. Heated debates were held on what SARS requires and the information that producers regard as practically possible to maintain on the farm. By February 2014 all role-players had submitted proposals on what a practical logbook should look like. Final feedback from SARS in this regard is still being awaited.

The agricultural machinery industry

Agricultural machinery sales are dependent on many factors, with price being the most significant one. The majority of South African agricultural machines are imported, making the exchange rate an important aspect. The weakening of the rand value contributes to higher agricultural machinery prices and vice versa.

Prices

Dieselkortingstelsel

Die landboumasjineriebedryf

Die verkope van landboumasjinerie hang van talle faktore af, met prys die belangrikste daarvan. Die meeste Suid-Afrikaanse landboumasjinerie word ingevoer, wat die wisselkoers ‘n belangrike aspek maak. Die verswakking van die waarde van die rand dra tot hoë pryse vir landboumasjinerie by, en omgekeerd.

Pryse

The comparison of the tractor price index and the maize price index are shown in Graph 7. The prices of tractors increased on average from the 2006/2007 to the 2009/2010 production season where after it slightly decreased, just to increase again. A producer price⁴ of R1 697 per ton for maize is estimated for the coming marketing season. In the coming season it is expected that the maize price index would weaken in comparison to the price index of tractors, which increased immensely.

Die vergelyking tussen die trekkerprysindeks en die mielieprysindeks word in Grafiek 7 getoon. Die prys van trekkers het vanaf die 2006/2007- tot die 2009/2010-produksieseisoen gemiddeld gestyg, waarna dit effens gedaal het, net om weer te styg. ‘n Produsenteprys⁴ van R1 697 per ton vir mielies word vir die komende bemarkingseisoen geraam. Daar word verwag dat die mielieprysindeks in die komende seisoen sal verswak vergeleke met die prysindeks van trekkers, wat geweldig gestyg het.

Maize price versus tractor and combine harvester sales

Mielieprys teenoor trekker- en stroperverkope

South African producers purchased most tractors in the year 2012 and within the same year the average annual maize price reached an all-time high. Given this strong correlation, it can be expected that 2014 will show lower tractor sales; owing to low maize prices due to the large maize crop.

Suid-Afrikaanse produsente het in 2012 die meeste trekkers gekoop, en in dieselfde jaar het die gemiddelde jaarlikse mielieprys rekordhoogtepunte bereik. In die lig van hierdie sterk korrelasie kan daar verwag word dat 2014 laer trekkerverkope sal toon, aangesien mieliepryse laag is as gevolg van die groot mielie-oes.

Tractor sales

Trekkerverkope

Tractor fleet

Since 1983 the tractor fleet decreased at a constant trend from 211 055 units to its lowest point in 2005 with 62 424 units. The current tractor fleet is 80 311 units (Graph 11). The main reason for the decrease in the size of the tractor fleet is the smaller summer and winter grain plantings over time, as well as the increased sales of higher than average size (kW) tractors.

Trekkervloot

Tractor age

Trekkerouderdom

Die gemiddelde ouderdom van trekkers in die trekkervloot is tans 7,0 jaar. 20 jaar gelede (in 1993) was die totale getal trekkers jonger as tien jaar 35,8% van die totale trekkervloot. Tien jaar gelede (2003) was 60,7% van trekkers jonger as tien jaar. Tans is 71,6% van die totale trekkervloot jonger as tien jaar. Grafiek 12 toon die verspreiding van die ouderdom van die trekkervloot

Capacity of tractor fleet

The current total tractive power of the tractor fleet of 6,19 million kW is a bit more than the 4,26 million kW available ten years ago and 21,9% less than the 7,02 million kW, 20 years ago (Graph 13). The average tractive power of tractors in the tractor fleet has increased, from 58,0 kW, 20 years ago and 67,5 kW ten years ago, to 77,1 kW currently (Graph 14)

Kapasiteit van die trekkervloot

¹ Average producer price = Safex, July 2015 price – average differential cost – handling cost

² Average producer price = Safex, July 2015 price – average differential cost – handling cost

³ Average producer price = Safex, July 2015 price – average differential cost – handling cost

⁴ Average producer price = Safex, July 2015 price – average differential cost – handling cost

¹ Gemiddelde produsenteprys = Safex, Julie 2015-prys – gemiddelde differensiaalkoste - hanteringskoste

² Gemiddelde produsenteprys = Safex, Julie 2015-prys – gemiddelde differensiaalkoste – hanteringskoste

³ Gemiddelde produsenteprys = Safex, Julie 2015-prys – gemiddelde differensiaalkoste – hanteringskoste

⁴ Gemiddelde produsenteprys = Safex, Julie 2015-prys – gemiddelde differensiaalkoste – hanteringskoste