The South African grain industry is to apply to the Competition Commission for an exemption that will enable it to set up a pool to export 5-million tonnes of excess corn to the highest bidder.

Grain SA, the body representing most of SA's corn, wheat and soy producers, has asked the commission for an opinion on co-operating on exports, but was informed that setting up a pool would be anti-competitive.

The farmers want an urgent solution, given the danger of their produce being wasted because they cannot dispose of all of it in the local market. At present they have 5-million tonnes of corn available for export after meeting a national demand for 9-million tonnes.

If granted an exemption, the farmers would be given a chance to obtain competitive international prices, which they say would help offset high input costs like fuel and fertiliser.

Grain SA chairman Neels Ferreira called for the intervention of the Department of Trade and Industry, saying the application process for exemption, which is run by the Competition Commission, often took up to two years to conclude.

"By then it would be too late for almost 30% of our commercial farmers, who urgently need the resources to stay in business, and could completely destroy the black emerging farmers who have loans to service."

The Competition Commission said it would not comment on the issue due "to the nonbinding nature of the advisory opinion" it had given Grain SA.

Ferreira said the government should allow alternative ways of utilising surpluses, including reducing the importation of processed chicken in order to encourage local chicken farming by emerging farmers. "This will also create a huge market for the local manufacturing of chicken feed, providing rural development with real jobs."

Corn deliveries to South African silos rose to 1,604-million tonnes in the week to June 4, up from 944,000 tonnes the previous week, the South African Grain Information Service said.