March 5, 2018

South Africa grains sector seeks to stop 'anti-farmer' soy levy

South Africa's oil and protein seed industry has petitioned the court to prevent Agriculture, Forestry and Fisheries Minister Senzeni Zokwana from enforcing a levy for breeding and technology on soybeans that would allegedly deprive farmers of benefits.

The industry in fact applied for such levy in December 2016 to remunerate local and international seed breeders for new cultivars and seed technology. Farmers hoped to get higher-yielding cultivars once this levy was in place.

In late February, Zokwana approved the levy, but directed that the Agricultural Research Council (and not seed companies) should be the preferred beneficiary of the entire levy. "This is basically hijacking our funds", complained Jannie de Villiers, CEO of Grain SA.

De Villiers claimed that there was no consultation with industry in making the change. "It negates the whole purpose of the levy", he said.

The industry, despite seeking the interdect, expressed its willingness to engage in a dialogue with Zokwana to find a better solution.

"This is a very unfortunate situation given the millions of rands (1 million rands=US$83,406) that the Department of Trade and Industry and the Department of Science and Technology have invested in the soy industry the past five years. The levy application was an integral part of the plan to grow the soy industry in South Africa", said Grain SA, which comprises South African grain producers.