Article
Associate members highlight issues of concern
Published: 06/02/2023
The associate membership category
includes value chain stakeholders that render services or products directly to
the handling and storage sector. Associated members do not only pay a membership
fee, but also share information and make suggestions on how to improve certain aspects
of the grain handling and storage sector business environment. During the end-of-year meetings with our associate
members, the following was suggested for consideration in 2023:
Santam Agri:
- Global underwriters’ latest requirements and outlook for risk sharing (insurance) in the handling and storage of grain. Impact of load shedding on insurance premiums and claims due to damage to equipment.
- Auditing of the grain handling and storage sector by an independent third party demonstrating legal and regulatory compliance. This will highlight noncompliance by (other) stakeholders involved in commercial storage and limit uncompetitive opportunistic practices.
- With the impending carbon tax looming over the agricultural industry, it could be a great opportunity for the storage sector to either sell carbon credits to existing taxpayers (such as Afrimat) or to build up a bank and absorb these credits in an attempt to reduce carbon tax liabilities in future. A couple of projects qualify for carbon credits. The link showcases carbon credit projects that Nedbank South Africa supports by buying carbon credits in an attempt to lower the bank’s carbon footprint.
- Insurers such as Santam Agri see value in investigating the possible implications of the sustainable development goal benchmarks relating to the grain handling and storage value chain, in collaboration with Agbiz Grain.
Henchem:
- The company has already signed up and successfully guided 24 fumigation companies through the Profume stewardship process during the past 24 months and will present the product to our steering committee members before the next steering committee meeting in February this year. The new Profume fumigant’s implementation in South Africa has increased drastically during 2022.
- Henchem completed stewardship training for more than 24 companies last year (37 in total). More than 20 000 000 tons of maize, wheat, rice, dried fruit, legumes and various other commodities have been successfully fumigated since. This includes shortterm road and rail cart fumigation (as low as 12 hours) as well as long-term (seven-day) fumigations. Various trials have been completed or is in process with customers such as Senwes, OVK, Kaap Agri Pride Milling, and raisin and dry fruit producers. Henchem will make a technical presentation focussing on the scientific data from Profume jobs to the Agbiz Grain steering committee members before the next steering committee meeting.
AE Solutions:
- AE Solutions shared their view on the expansion of their client base involved in on-farm and commercial storage operations. In principle, all commercial storage operators must be members of Agbiz Grain, be FBO registered, and comply with regulations in a tough competitive storage business environment. Agbiz Grain members handle and store around 70% of the grain and oilseeds delivered to storage structures in South Africa, rendering Agbiz Grain a powerful mouthpiece for the sector. If you are a commercial storage operator and not a member of Agbiz Grain, do consider signing up.