July 27, 2004

South African Wheat Producers Worried About Cheap Imports

South African wheat producers are concerned about imported wheat from heavily subsidised countries, which is hampering their efforts to compete on the local market.

Recent rains have improved chances of an average crop. But at the current prices, producers receive about R400 less per ton than their production cost. Bully Botma, the president of Grain SA, says in order to remedy the situation, South African can either increase its tariffs or have the government subsidise local farmers.

Wheat farmers and other role-players in the industry met the day before in the Western Cape to discuss challenges facing the industry. Farmers say they are still reeling from last year's drought, and cheaper imports as well as the strong rand are compounding their financial problems.

Allie van Jaarsveld, a spokesperson for the provincial department of agriculture, says the department will look at ways to help protect the livelihood of wheat farmers and their employees.