In this context, the regulatory environment  is essential because it provides a framework for promoting fairness, sustainability, and innovation, ensuring agricultural practices  align with industry standards, protect resources, and maintain competitiveness  in a rapidly evolving market. Over the years, laws and associated regulations have been introduced  in the agricultural sector to regulate product quality, ensure food safety, and protect consumers and other value chain participants. Being heavily involved in exports, the grain industry must take into consideration the directives of overseas markets and the needs of their clients, requiring  all stakeholders to adapt accordingly.

Prof André Jooste of the Department of Agricultural Economics at Stellenbosch University emphasises that legislation is a complex environment for producers, other value chain role-players, and the consumer. Legislation not only protects all participants  in the food system, but also establishes a regulatory environment in which they must function.

Government policies and legislation include international guiding principles and conventions, such as the Sustainable Development Goals, the Paris Agreement on climate change, and the African Agenda 2063, ensuring that global requirements are integrated into the South African context. These policies align with local economic development frameworks such as the National Development Plan 2030 (NDP) and the more recent Agriculture and Agro- Processing Master Plan (AAMP).

In some instances, government  is required to mandate citizens to engage and comply with specific legislation. For example, with the recently signed Climate Change Act, 2024 (Act 22 of 2024) various government departments and stakeholders must now develop regulations in accordance  with the law, ensuring that all parties in the sector are aligned and working towards the same goals. However, Prof Jooste mentions that the process of drafting new legislation or new regulations is inclusive, allowing anyone to participate and contribute, not just politicians. This is why everyone in the agricultural value chain needs to engage in legislative processes impacting the sector.

Click here to read full article by Koos du Pisanie, Plaas Media for the Agbiz Grain Quarterly November 2024 issue.