Agricultural Business Chamber of South Africa

Statutory levies awaiting approval

On 28 March and 9 April this year, the National Agricultural Marketing Council (NAMC) received a request from the Wheat Forum, asking for the minister of agriculture, land reform and rural development to, in terms of section 15 of the Marketing of Agricultural Products Act, 1996 (Act 47 of 1996) (MAP Act), approve statutory levies (value-added tax excluded) for various winter cereal commodities, both produced and imported. These levies would be collected and administered by the South African Winter Cereal Industry Trust (SAWCIT) over a period of four years.

The purpose and objectives of this statutory measure are to provide financial support for winter cereal information, research and transformation functions. These functions have been identified as essential and are in the best interest of the winter cereal industry.

The request received unanimous support from the members of the Wheat Forum, based on the recommendation of the Wheat Forum Steering Committee. This support was on behalf of the directly affected groups within the winter cereal industry.

Previously, statutory levies were imposed on wheat, barley and oats (which expired in September 2020) to provide financial support for research projects and quality testing, to supply generic market information to all role-players, and to assist with the development of emerging producers of winter cereals in South Africa. The administration of these levies was carried out by the Winter Cereal Trust.

Since the inception of SAWCIT in 2020, the trust’s primary source of income has been based on voluntary levies collected on wheat, barley and oats. – Agbiz Grain

Published: 02/05/2024

Course welcomes first student group

Lizelle Jacobs, director of MindAlive, has been working with Agbiz Grain for the past six years to successfully develop and implement the newly registered Grain Depot Manager qualification. Agbiz Grain recently expressed its appreciation for the enormous task she has taken on in this regard. (Read our article on the course and its development in the February 2023 issue of Agbiz Grain Quarterly.)

Jacobs and a team of specialists from among Agbiz Grain’s members, are currently finalising the question bank for the first group of students who will register for the External Integrated Summative Assessment exam by April 2026. Over the years, several of our members’ staff and individuals serving the storage sector have been involved in the development of the Grain Depot Manager and Grain Grader courses.

We salute every contributor for their selfless contributions in this regard. Whether retired or still actively involved in the industry, each person’s dedication has made it possible for 43 students, primarily Agbiz Grain members, to

enrol in 2024. – Agbiz Grain

Published: 02/05/2024

New BKB Grainco member on Agbiz Grain steering committee

Christie Engelbrecht was recently appointed as the new general manager of BKB Grainco. He holds a bachelor’s degree in Accounting (B.Acc) and a bachelor of Accounting Honours degree (B.Acc Hons) from the University of the Free State. He is also a chartered accountant with membership from the South African Institute of Chartered Accountants, and has a master’s in Business Administration from Stellenbosch University.

His experience includes serving as the financial manager of Orange River Cellars, as well as being the general manager of PakHouse Brands and AlphaAlfa. Christie will also be replacing his predecessor, Casper Schmidt, as BKB Grainco’s representative on the Agbiz Grain steering committee. Casper is still with BKB, but in the post of general manager, Livestock and Properties. The committee would like to thank him for his contribution over the years, while welcoming Christie – we believe he will make a positive contribution to Agbiz Grain’s service to its members and industry. – Plaas Media

Published: 02/05/2024

Agbiz Grain tests sampling probe

According to a Southern African Grain Laboratories (SAGL) study funded by Agbiz Grain, stakeholders in the industry use different sampling probes to collect representative portions of the consignment and assign the correct

grade during arbitration.

However, the choice of sampler is not always based on an independent evaluation, which can lead to discrepancies in grading results. The Vac-A sampler was found to be the best at taking a representative sample from bulk grain and oilseed consignments and should be the probe of choice for dispute resolution.

In sampling environments without electricity, the single tube with an inner tube proved to be the best of the three handheld probes tested. The significant differences in performance between the probes tested, underscore the importance of using the most accurate sampling probe to resolve disputes.

Agbiz Grain members purchased 47 of the required samplers to test the tube in the field for different commodities, conditions and environments before making a final decision regarding the preferred tube to be used in dispute

resolution. – Agbiz Grain

Published: 02/05/2024

Inspection services challenged

Agbiz Grain has submitted comments on the Department of Agriculture, Land Reform and Rural Development’s (DALRRD) proposed inspection services.

Agbiz Grain commented on DALRRD’s Standard Operating Procedure (SOP), the Grain Inspection Checklist, and Financial Model and Inspection Fees. The SOP confirmed that the party to be charged for a completed inspection is the ‘owner’ of the product, as required by the Agricultural Product Standards Act, 1990 (Act 119 of 1990) (APS Act): “… the owner of the product in question shall pay the prescribed fees or the amount determined by the assignee …”.

The APS Act allows the owner’s product to be placed on the market for sale, on condition that the product complies. The owner of the inspected product must pay the inspection fee. There are several other important aspects of the SOP that Agbiz Grain has challenged, but it remains to be seen whether our comments have been accepted. Agbiz Grain has co-operated fully without disrupting the consultation process, but if our comments have not been considered, we are prepared to appeal. – Agbiz Grain

Published: 02/05/2024

Issues relating to maize grading regulations

In March 2024 the DALRRD rejected Agbiz Grain’s application for a deviation to the published maize grading regulations. The organisation subsequently applied for a permanent change to the regulations before the start of the maize marketing year, which runs from 1 May to 30 April.

Agbiz Grain has identified deficiencies in parts of the text that can be better and more clearly stated. As it stands, it is impractical and out of context. (See our complete article elsewhere in this issue of Agbiz Grain Quarterly.) The request aims to improve the regulations, subject to the agreement of the relevant sectors and stakeholders. Should there be no objections to this application and all stakeholders agree, we have asked the DALRRD to then consider a permanent change to the regulations. – Agbiz Grain

Published: 02/05/2024

India’s new grain storage plan

Indian prime minister, Narendra Modi, recently announced the world’s largest grain storage plan in the co-operative sector and said it could potentially be a game-changer for the country, with positive ramifications for the domestic economy at large.

As far back as 1999, the World Bank found that India’s post-harvest losses could feed one-third of the country’s poor for almost a year. A 2015 government report found that the post-harvest loss in cereals was 4,65 to 5,99%. Similarly, a study by the National Bank for Agriculture and Rural Development (NABARD) in 2022 discovered a loss of 3,89 to 5,92% in cereals. However, the Dalwai Committee of 2017 observed that actual post-harvest losses are likely to be much higher, estimating overall losses in cereals as high as 44,6%. The losses are a result of deficiencies in the national post-harvest infrastructure as the country’s storage capacity is considerably low.

The proposed scheme’s focus on co-operatives is notable. Since a staggering 90% of Indian producers are small and marginal, many Indian producers find the existing post-harvest infrastructure inaccessible. Therefore, driven by the producers themselves, cooperatives appear to be an effective means to serve producers. The current announcement also reinforces the outlook of producer-centric agriculture.

Therefore, it is hoped that other segments of the post-harvest value chain will receive similar policy attention in a manner that converges different policies at both the planning and implementation levels. At least 700 lakh (hundred thousand) tonnes of storage capacity will be created over the next five years in the co-operative sector by constructing thousands of godowns (a type of warehouse in India) and other warehouses, Modi said. He also laid the foundation stone for an additional 500 primary agricultural credit societies across the country for the creation of godowns. – Times of India and Hindustan Times

Published: 02/05/2024

Navigating El Niño’s effects

Southern Africa’s maize crops have been hit hard by El Niño-induced dryness and heatwaves. Zimbabwe, Zambia, and South Africa face losses, urging calls for international co-operation to ensure food security. The El Niño-induced dryness and heatwaves hit the Southern Africa region, resulting in roughly half of Zimbabwe and Zambia’s maize crop failure.

South Africa’s maize crop is also down by 20% year-on-year, with the harvest estimated at 13,2 million tonnes. If it materialises, it will still meet the domestic needs of about 12 million tonnes, leaving the country with a small export volume.

But this is a tough season requiring white maize imports for Zimbabwe and Zambia. Neighbouring small-scale producers such as Botswana, Lesotho and Namibia are also struggling and will require white maize imports. These countries will need white maize, not yellow maize, which is widely traded in the world market. – Wandile Sihlobo, Agbiz

Published: 02/05/2024

Man trapped after part of grain silo collapsed

A man trapped underneath a grain silo was freed after a major rescue operation in Queensland’s Central Highlands in Australia earlier this year. Bystanders and emergency services worked frantically with shovels and farming machinery to rescue the man.

A Queensland Ambulance Service spokesperson said the man, 34, had been working underneath the silo when the bottom collapsed and he was trapped by the metal sheet and ‘drowning’ in grain. It follows an incident about a year ago when a Baralaba producer survived falling into a silo, where he was trapped up to his neck in grain. – ABC News

Published: 02/05/2024

Russia targets Ukrainian port, destroys grain stores

On 19 April, Russian troops hit the port of Pivdennyi in Ukraine’s southern Odesa Oblast, destroying grain storage facilities and foodstuffs they contained, according to Ukrainian president,Volodymyr Zelenskyy, and other officials.

Later, the ministry of restoration stated that as a result of the attack on the port of Odesa, the Russian military destroyed agricultural products intended for Asia and Africa. Two terminals specialising in the transit of agricultural products were attacked. One of the terminals belongs to the globally known Singaporean company, Delta Wilmar, which has been operating in Ukraine since 2004 and also owns several agricultural processing plants. This amounts to over US$300 million in investments and nearly 1 000 jobs,” the department said.

Since Russia withdrew from a UN-brokered deal that had guaranteed safe shipments of Ukrainian grain last summer, Ukraine’s port infrastructure and its employees have suffered numerous attacks from Russian missiles and drones. – Euromaidan Press

Published: 02/05/2024

Empowering Future Leaders in Grain Management

Agbiz Grain, together with Senwes and Peritum Agri, celebrated the launch of the Grain Depot Manager Programme on Friday, March 8. This collaborative effort, developed over four years, is a testament to their commitment to fostering skills and expertise in the agricultural sector.

The event featured speakers Emmie Pietersen, Director of Peritum Agri Institute; Heinrich Henning, Operations Manager at Senwes; and Wessel Lemmer, General Manager of Agbiz Grain, who shared their insights and excitement about this innovative programme.

What's the programme about?

The Grain Depot Manager Programme caters to the needs of enterprises handling grains and oilseeds, especially those serving farmers. It aims to equip learners with the skills to operate effectively as Grain Depot Managers. The programme emphasises achieving operational efficiencies, responsible resource utilisation, and maintaining the mechanical integrity of bulk grain handling and storage units.

What Learners Can Expect

Upon completion, learners will be equipped to:
Manage and achieve operational targets effectively.
Lead and manage staff for smooth business operations.
Utilize operational resources responsibly.
Ensure grain handling and storage efficiency while meeting quality standards.
Conduct precise grain and oil seed grading processes.

Known officially as the Occupational Certificate: Grain Depot Manager, this qualification signifies a significant step towards enhancing skills in the grain and oilseed sector. Agbiz Grain is excited about the positive impact it will have on advancing professional capabilities in the industry. This programme not only shapes future leaders but also strengthens the foundation of our agricultural community. By Temba Msiza, Agbiz Communication Officer

Published: 12/03/2024

Silo unavailability platform more accessible

The Johannesburg Stock Exchange (JSE) recently announced an improved silo unavailability platform, which allows members to see which silos are unable to outload JSE stock for specified reasons. This means that the JSE will no longer be responsible for updating its website, but storage operators will. Mechanisms have been put in place to ensure that the JSE monitors the updates in real-time. The platform can be accessed via the JSE’s Client Portal webpage, under the reports section, or by clicking here. – JSE Market Communications

Published: 01/02/2024

Proposed grading regulations disputed

Grain SA, the South African Grain Farmers Association (SAGRA) and the National Chamber of Milling were unable to reach consensus in 2023 on proposed changes to the maize grading regulations. The Agbiz Grain Quality Working Group’s final submission to the DALRRD was compiled in the interest of the sector.

DALRRD finalised the proposed changes by Grain SA and the SAGRA, and submit them to the World Trade Organization (WTO) for comment. Agbiz Grain’s position was that a consensus should be reached between producers and processors before any changes could be implemented.

Agbiz Grain’s query related to which act mandates DALRRD to prioritise one industry over another. We expect that the proposed changes to the maize grading regulations will remain in dispute in 2024. The DALRRD submitted the regulations to the WTO for comments on 23 October 2023. The deadline for comments was 22 December 2023. – Agbiz Grain

Published: 01/02/2024

Peritum accredited to present depot manager course

The Quality Council for Trades and Occupations (QCTO) has set policies in accordance with which it accredits skills development providers (SDPs). This process ensures that education and training in occupations and trades offered in the country are credible and valid, and presented in accordance with the Skills Development Act, 1998 (Act 97 of 1998) and the Continuing Education and Training Act, 2006 (Act 16 of 2006).

The QCTO recently accredited Peritum Agri Institute to offer the Occupational Certificate: Grain Depot Manager, for a period of five years (15 January 2024 until 14 January 2029). The accreditation process included a site inspection of Peritum Agri Institute’s premises. The course is presented at NQF level 5 and the minimum credit requirement is set at 235. – Peritum Agri Institute

Published: 01/02/2024

Learning modules available soon

Lizelle Jacobs, director of Mind Alive, has been contracted by Agbiz Grain to collaborate with experts to finalise the curriculum question bank for each learning module of the Grain Depot Manager and Grain Grader curricula in 2024.

Completion of the online question bank workshop is expected early this year. Students will be able to enrol through QCTO accredited provider, Agri Peritum Agri Institute, to offer the Occupational Certificate: Grain Depot Manager (NQF level 5) for a period of five years starting 15 January 2024. In the meantime, Agbiz Grain has qualified for financial support on behalf of interested students through the Agricultural Sector Education and Training Authority (AgriSETA). Agbiz Grain members who wish to register their training facilities for student assessment must arrange an inspection with AgriSETA or the Quality Council for Trades and Occupations. Contact annelien@agbizgrain.co.za for more information. – Agbiz Grain

Published: 01/02/2024

Future SHEQ workshops

The Agbiz Grain Safety, Health, Environment and Quality (SHEQ) Committee has identified relevant topics to be addressed each quarter in an online workshop format. As in previous years, this initiative will be led by experts. Santam Agriculture accredits these workshops for continuous professional development (CPD) points – remind your SHEQ manager and staff to register and attend.

In addition, members have identified the need for an in-person mini symposium for Agbiz Grain members in order to network on SHEQ issues. SHEQ matters and legislation in the grain handling and storage sector will be discussed. During a meeting held on 22 January, the requirements were set for the mini symposium which is being planned for September 2024. – Agbiz Grain

Published: 01/02/2024

Possible self-audits in the pipeline

The Agbiz Grain Steering Committee accepted the recommendation of the Agbiz Grain SHEQ Working Group to investigate the possibility of a self-audit of members by a third-party service provider. The goal is to assess compliance with SHEQ-related matters that are important to the insurance and financial sector.

Implementing the self-audit process will be an attempt to curb the escalating cost of insurance and demonstrate the insurability of the handling and storage sector. NWK first raised the issue of the escalating cost of insurance and remedies needed to address it.

The Agbiz Grain SHEQ Working Group, the Aggregate and Sand Producers Association of Southern Africa (Aspasa), and representatives from the insurance and financial sectors will meet at the Grain Building in Pretoria on 14 and 15 March 2024. Agbiz Grain members who have already confirmed their attendance are Kaap Agri, AFGRI, TWK Agri, GWK, VKB, OVK, BKB GrainCo and Overberg Agri.

It is important that the grain handling and storage sector, in collaboration with the financial sector, decides which issues need to be prioritised and addressed. Aspasa will share and facilitate the two-day working session based on its experience and success in open-cast mining. – Agbiz Grain

Published: 01/02/2024

Crime and fraud prevention discussed

The Agbiz Grain Crime Prevention Working Group met online on 18 January 2024. The aim of this working group is to discuss best practices in the prevention of crime and fraud in the grain handling and storage business environment. The outcome of the first meeting already provided strong guidance on the latest and most effective measures to prevent financial losses due to crime and possible future interventions.

Wimpie Nel, an investigator specialising in crimes targeting the grain storage sector, explained the importance of sufficient evidence to secure successful convictions. Wesco Forensic Services, which employs forensic science and legal consultants, also contributed to the discussion. – Agbiz Grain

Published: 01/02/2024

JSE daily storage rate probed

In 2011, the Competition Commission (CC) found the Grain Silo Industry (GSI (Pty) Ltd) guilty of breaching the Competition Act, 1998 (Act 89 of 1998) by fixing the JSE’s maximum daily storage rate of the South African Futures Exchange (Safex). Since 2008, when the CC investigation started, the JSE has not received input from the GSI to assist in determining the JSE maximum daily storage rate.

In 2011, an independent consultancy was appointed to evaluate the base storage rate for 2012 to determine whether it reflected the actual cost of storage. Since 2012, the basic storage rate has been adjusted annually in line with the producer price index (PPI) of final manufactured goods. The consultancy’s evaluation of the base rate was the result of a survey of the entire industry, not just GSI members. Agbiz Grain has stressed the importance of the JSE assessing the base rate by capturing the relevant actual cost items that contribute to the cost of storage.

The Bureau for Food and Agricultural Policy’s report, Grain Storage Cost Definitions, is an attempt to highlight the importance of getting the JSE daily storage rate right. Agbiz Grain strongly recommends that the JSE also acquire the Nel and Schoeman (1991) research report carried out for the Maize Board. – Agbiz Grain

Published: 01/02/2024

Didion Milling pleads guilty

Didion Milling Inc of Cambria in Wisconsin in the United States (US), pleaded guilty to two federal criminal charges and agreed to pay millions in restitution for a 2017 explosion at its Cambria mill that killed five workers and injured others, according to the US Department of Justice (DOJ).

Didion Milling and six of its managers and superintendents were charged in May 2022 in a nine-count criminal indictment for its alleged role in failing to ensure work was done to safely handle combustible maize dust and keeping deliberate false records before the explosion on 31 May 2017.

According to court documents, Didion Milling was required to operate ‘baghouses’, equipment designed to prevent particulate matter, such as maize dust, from being released into the environment from the maize mill. From at least 2015 to May 2017, Didion Milling employees, including shift workers and shift superintendents, made false entries in the mill’s ‘baghouse logs’, disguising data meant to monitor and document whether the mill’s baghouse equipment was working properly to filter particulates from the air. – WORLD-GRAIN.com

Published: 01/02/2024

White wheat success for the US

US based Star of the West Milling Co’s investment in an agronomy business has not only provided diversification, but also played a crucial role in sustaining white wheat production in Michigan, according to Michael Fassezke, the president of the milling company. Historically, Michigan, along with Ontario and New York, was a significant producer of soft white winter wheat. Today, New York and Ontario contribute very little, but Michigan maintains a 50/50 ratio of white and red wheat.

Star of the West’s influence, combined with their relationships with producers, has kept white wheat prominent, especially in the Thumb Region and Saginaw Valley. Fassezke emphasised that their unique market niche relies on soft white wheat’s essential qualities for bran and speciality products.

Growers in the region shifted to soft red due to perceived risks such as Fusarium head blight and sprout damage. Fassezke clarified that soft white is not more susceptible to Fusarium but acknowledged its vulnerability to sprouting. Star of the West addresses this by encouraging early harvesting and offering free drying services. Despite challenges, Michigan millers, supported by Star of the West, have successfully maintained white wheat plantings. – WORLD-GRAIN.com

Published: 01/02/2024

Quality vs yield: US strikes a balance

Wheat experts gathered at the Wheat Quality Council’s annual meeting in Kansas City in the US to emphasise the critical balance between high yields and quality in wheat production. Traditionally, producers prioritised yield, but concerns arise as higher yields may compromise wheat quality.

Steve Wirsching, vice president of US Wheat Associates, stressed the need for the US to enhance wheat quality to maintain its global market standing, especially amid rising geopolitical tensions affecting major exporters such as Russia and Ukraine. Quality, particularly protein content, is vital, yet higher-yielding wheat often exhibits lower protein levels, impacting its suitability for baking.

Adverse environmental conditions, including extreme drought, have challenged wheat cultivation, with 85 to 90% of hard red winter wheat facing drought in Kansas. Despite these challenges, the surviving high-quality winter wheat suggests that plant breeders’ investments have been worthwhile.

Various programmes, including the National Wheat Yield Contest and the Kansas Wheat Rx programme, aim to help producers achieve both high quality and yields. By focussing on modern plant breeding and identifying optimal varieties, these initiatives aim to ensure wheat’s crucial role in feeding future generations. – WORLD-GRAIN.com

Published: 01/02/2024

Agbiz Grain fumigation workshop: 5 March 2024

The Agbiz Grain Fumigation Working Group is planning a workshop to address pressing concerns regarding regulations and the quality of training for fumigators. These concerns affect fumigation in the grain handling and storage environments. The workshop will be held on 5 March 2024 at Nampo Park in Bothaville, and will include presentations by Dr Gerhard Verdoorn of the Griffon Poison Information Centre and CropLife SA, and Leonard Henning, member of the South African Pest Control Association Board.

Dr Verdoorn will present his views on the range of products available for fumigation, the classification of hazards and risks associated with classes of different fumigants. Henning will present his views on a renewed competence framework for pest control operators, industry self-regulation and CPD. Contact annelien@agbizgrain.co.za for more information. – Agbiz Grain

Published: 01/02/2024

A range of initiatives supporting food and climate action were announced during the first thematic session of the World Climate Action Summit, featuring by Giorgia Meloni, Prime Minister of Italy, Fiame Naomi Mata?afa, Prime Minister of Samoa, Samia Suluhu Hassan, andJoko Widodo, President of Indonesia and Anthony J. Blinken, Secretary of State for the United States of America.
More than $2.5 billion has been mobilized by the global community to support the food-climate agenda, H.E. Mariam bint Mohammed Almheiri, UAE Minister of Climate Change and Environment and COP28 Food Systems Lead, announced during the session.
Over 130 countries – representing over 5.7 billion people, 70 per cent of the food we eat, nearly 500 million farmers and 76 percent of total emissions from the global food system – have signed up to the leaders-level ‘COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action.’
The UAE and the Bill & Melinda Gates Foundation launched a $200 million partnership for Food Systems, Agriculture Innovation and Climate Action, focused on agricultural research, scaling agricultural innovations and funding technical assistance for implementing the Declaration.
Addressing both global emissions and protecting the lives and livelihoods of farmers living on the frontline of climate change are core elements of the COP28 Food Systems Agenda.

Dubai, United Arab Emirates, 1 December: The COP28 Presidency today announced that 134 world leaders have signed up to its landmark agriculture, food and climate action declaration. Also announced was the mobilization of more than USD$2.5 billion in funding to support food security while combatting climate change and a new partnership between the UAE and the Bill and Melinda Gates Foundation for food systems innovation in the fact of climate change.

The ‘COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action’ (the Declaration) was announced at a special session of the World Climate Action Summit (WCAS), led by Joko Widodo, President of Indonesia Giorgia Meloni, Prime Minister of Italy, Fiame Naomi Mata?afa, Prime Minister of Samoa and Anthony J. Blinken, Secretary of State for the United States of America. The Declaration addresses both global emissions while protecting the lives and livelihoods of farmers who live on the frontlines of climate change.

“There is no path to achieving the goals of the Paris Climate Agreement and keeping 1.5C within reach, that does not urgently address the interactions between food systems, agriculture, and climate,” H.E. Mariam bint Mohammed Almheiri, UAE Minister of Climate Change and Environment and COP28 Food Systems Lead, said.

“Countries must put food systems and agriculture at the heart of their climate ambitions, addressing both global emissions and protecting the lives and livelihoods of farmers living on the front line of climate change. Today’s commitment from countries around the world will help to build a global food system fit for the future,” she added.

The 134 signatory countries to the Declaration are home to over 5.7 billion people and almost 500 million farmers, produce 70 percent of the food we eat, and are responsible for 76 percent all emissions from global food systems or 25 percent of total emissions globally.

Endorsement of the Declaration will help in strengthening food systems, building resilience to climate change, reducing global emissions, and contributing to the global fight against hunger, aligned with the UN Sustainable Development Goals (SDGs). The Declaration – the first of its kind for the COP process - stresses the need for common action on climate change, which adversely affects a large portion of the world’s population, particularly those living in vulnerable countries and communities.

“Today signals a turning point, embedding sustainable agriculture and food systems as critical components in both dealing with climate change and building food systems fit for the future. Together we will deliver lasting change for families, farmers and the future,” said H.E Almheiri.

While food systems are vital for meeting societal needs and enabling adaptation to climate impacts, they are also responsible for as much as a third of global greenhouse gas emissions. Many smallholder farmers in low- and middle-income countries are also facing heightened vulnerability to climate change.

Key announcements made at the session today include:

The UAE and the Bill & Melinda Gates Foundation launched a USD$200 million partnership for Food Systems, Agriculture Innovation and Climate Action, focused on agricultural research, scaling agricultural innovations and funding technical assistance for implementing the Declaration.
The UAE is joining the CGIAR, a global partnership that unites international organizations engaged in research about food security, resilience, and climate adaptation.
COP28 and a group of partners announced a collaborative effort to offer countries quality technical cooperation and to help deliver on the objectives of the Declaration. The partners behind the Technical Cooperation Collaborative pledged more than USD$200 million in new and newly aligned support, while also committing to increase coordination across their wider portfolios.
COP28 UAE, together with the World Business Council on Sustainable Development (WBCSD) and the Boston Consulting Group (BCG), supported by the UN Climate Change High-Level Champions, launched the Action Agenda on Regenerative Landscapes. This will see leading food and agriculture organizations join forces to scale regenerative agriculture, transitioning 160 million hectares to regenerative agriculture by 2030, accompanied by USD$2.2 billion in future investment, and engaging 3.6 million farmers world-wide.
The High-Level Champions, in collaboration with non-government actors including farmers, Indigenous Peoples, consumers, cities, youth, businesses, financial institutions, philanthropies and others, launched a Call to Action for Transforming Food Systems for People, Nature, and Climate, in support of the Declaration and to highlight the urgent need to take action on food systems by all actors.

The COP28 Food Systems and Agriculture Agenda has four pillars, covering national leadership, non-state actors, scaling up innovation, and finance.

COP28 is also working with representatives from every stage of the food system and agriculture value chain, including farmers, civil society, businesses, and local governments to accelerate the transition to regenerative agriculture.

The full list of countries who have signed the Declaration can be found here.

ENDS

Please click here for a factsheet on the announcement.

Notes to Editors COP28 UAE:

COP28 UAE will take place at Expo City Dubai from November 30-December 12, 2023. The Conference is expected to convene over 70,000 participants, including heads of state, government officials, international industry leaders, private sector representatives, academics, experts, youth, and non-state actors.
As mandated by the Paris Climate Agreement, COP28 UAE will deliver the first ever Global Stocktake – a comprehensive evaluation of progress against climate goals.
The UAE will lead a process for all parties to agree upon a clear roadmap to accelerate progress through a pragmatic global energy transition and a “leave no one behind” approach to inclusive climate action.

2024 Agbiz Congress: REGISTER NOW!

Be sure to diarise the 2024 Agbiz Congress that will take place from 5 to 7 June next year. This exciting annual congress to be held at Sun City in North West, will be exploring the challenges facing the agricultural sector. The theme of the congress is “Sustaining growth in a changing global landscape”.

Registrations are open and stakeholders are invited to register now to secure their seat. Click here to register.

Published: 03/11/2023

Fumigation in the spotlight

It is becoming increasingly important that the commercial storage sector, including producers who store grain with the goal of making it available for commercial purposes at a later date and not just for own use, keep a watchful eye on fumigation requirements and acceptable levels of sectoral fumigation standards. Certainty on various aspects is needed in order to maintain and improve sufficient access to the latest fumigation products available.

Keep an eye out for news on Agbiz Grain’s fumigation policy and regulations workshop during the first quarter of 2024. The workshop will be held in collaboration with Dr Gerhard Verdoorn of CropLife SA. Contact Annelien at annelien@agbizgrain.co.za if you wish to attend. – Agbiz Grain

Published: 03/11/2023

Passport system in a cul-de-sac

Agbiz Grain invested heavily and assembled a panel from the United States, United Kingdom, France and South Africa, led by Jannie de Villiers, former CEO of the National Chamber of Milling and Grain SA, to discuss the issue of traceability and challenges of handling and storing bulk grain around the world. During the panel discussion at the 2023 Agbiz Grain and Oilseeds Value Chain Symposium, a generic passport system was referred to. This system is voluntary and not legally enforceable. Similar contractual systems already exist between producers, storage operators, and buyers who share the costs and benefits thereof.

However, stakeholders have different views due to the Competition Act guidelines, such as those relating to buyer power guidelines with respect to producers with a turnover of R35 million and less. This is dangerous ground for stakeholders involved in a sector that may decide to turn customers away on the basis of a mutual horizontal agreement that is not legally enforceable. Also, stakeholders cannot pursue initiatives that potentially interfere with existing agreements and business practices of value chain members and their customers.

Agbiz Grain has responded to the need for a generic passport system by creating the Agbiz Grain Food Safety Conduct, which can be adapted annually at the request of other applicable sectors, within the given legal requirements, and where it has merit. The system has already been implemented. As such, Agbiz Grain recognises the legal obligations that the storage sector must meet without affecting the competitiveness and market access of any stakeholder.

The implementation of a generic passport system is, however, not necessarily supported throughout. To comply with Competition Act requirements (including buyer power guidelines) and issues of traceability, the buyer should provide the passport to the contracted storage operator. This is because the buyer/processor sets the requirements for traceability concerning mycotoxins and MRLs for his product. Grain buyers can contact Agbiz Grain members and communicate their needs individually in order to negotiate a workable system, where it is practically feasible, as there are already some workable examples in South Africa. – Agbiz Grain

Published: 03/11/2023

Crop estimates remain unchanged

The latest Crop Estimates Committee (CEC) report released on 26 October indicates that the size of the commercial maize crop in South Africa will remain unchanged at 16,395 million tonnes. The area estimate for maize is 2,586 million ha, and the expected yield is 6,34t/ha. The estimated maize crop is 5,98% or 925 225 tonnes greater than the 2022 crop. The production forecast of white maize remained unchanged at 8,5 million tonnes and the yellow maize production forecast remained unchanged at 7,895 million tonnes.

Also unchanged is the sunflower seed production forecast at 729 110 tonnes, soya beans at 2,755 million tonnes, and groundnut production at 51 910 tonnes.

Wheat production is forecast at 2,167 million tonnes, which is 1,66% or 35 450 tonnes more than the previous forecast with an expected yield of 4,03 t/ha. Barley production is forecast at 380 120 tonnes and canola at 237 450 tonnes. The expected oats crop is 41 600 tonnes and sweet lupine production is 19 200 tonnes.

The fourth production forecast will be released on 28 November 2023. – CEC media release

Published: 03/11/2023

Transnet cancels private sector contract

Transnet’s efforts to get private sector players to run its crucial railway lines have bombed further, with the state-owned transport group cancelling a contract awarded to one of only two companies that showed interest in partnering with it.

Transnet Freight Rail, the largest division at Transnet in terms of revenue generation, recently announced that it had cancelled a conditional contract with Traxtion Sheltam, which emerged as a successful bidder in November 2022 to operate the Kroonstad to East London railway line.

The line, known as the Cape Corridor, is crucial for South Africa’s economy as it is the main line for manganese exports and agricultural commodities. Transnet said the cancellation of the contract was by mutual agreement with Traxtion Sheltam, which operates railway lines in several African countries. – Daily Maverick

Published: 03/11/2023

Large part of Ukraine grain storage lost

Ukraine has lost nearly 15% of its grain storage capacity in the war with Russia, threatening its role as a key food supplier to the world. The US government-backed conflict observatory said Russians have seized 6,24 million tonnes’ worth of food storage capacity, and that another 2,25 million tonnes of capacity in Ukrainian hands had been destroyed.

In total, the war has removed around 8,5 million of Ukraine’s 58-million-tonne storage capacity, threatening the country’s future ability to get crucial supplies of wheat, maize and sunflower oil to the world market, according to the report.

As a result, producers are running out of room to store their output for shipment, which could discourage plantings for the next crop, especially winter wheat, the report said. – France 24

Published: 03/11/2023

Anton Duvenhage welcomed to steering committee

Anton Duvenhage, the executive manager of grains at TWK Agri, replaced Barnie de Klerk as a new Agbiz Grain steering committee member on 1 September this year. Agbiz Grain and its members welcomes Anton at the table.

Published: 03/11/2023

US storage capacity can buffer disruptions

Mississippi River water levels have reached record lows in the first half of October this year. At Memphis, for example, the river stage, or height of the river’s surface relative to the zero-stage level of 189,9 feet, fell to a record low of minus 11,5 feet on 11 October.

These low river levels have reduced and delayed barge traffic and increased transportation costs for producers during peak harvest season. One factor that helps mitigate the impact of transportation disruptions is the quantity of available grain storage in on-farm and off-farm facilities.

The United States Department of Agriculture’s (USDA) latest Grain Transportation Report from the Agricultural Marketing Service highlighted national agricultural statistics service data on grain storage capacity for both on-farm (including bins, cribs and sheds used to store grains and oilseeds on farms) and off-farm facilities (including elevators, warehouses, terminals, mills and crushers). As of 1 December 2022, the US had 25,4 billion bushels worth of total grain storage capacity: 11,8 billion (47%) of off-farm storage and 13,6 billion (53%) of on-farm storage.

A general increase in both on-farm and off-farm storage is a good sign for producers facing uncertain transportation conditions. – FarmWeek Now

Published: 03/11/2023

Grain storage silos market size analysis

According to a new report, the worldwide grain storage silos market size is estimated at US$1,76 billion in 2023, and is expected to reach US$2,17 billion by 2028, growing at a compound annual growth rate of 4,2% during the forecast period of 2023 to 2028.

The growing demand for grain storage from the leading grain-producing countries in the world, namely the US, Russia, India, Brazil, and others, have driven the grain storage silos industry during the study period. Further, rising input costs and heavy investments required in grain storage led to a rise in demand for silos across all regions. According to the International Grains Council, the global wheat stock increased from 276 million metric tonnes in 2020, and the stock accounted for 278 million tonnes in 2021. This increase in the production of grains led to the market’s growth in the forecast period.

North America held the largest share in using silos for grain storage in 2020. As per the USDA, in the last ten years, on-farm storage increased by 1,6 billion bushels and off-farm storage by 2,2 billion bushels, registering a growth of 14 and 24%, respectively.

The recent imposition of tariffs by both the US and China on primary commodities led to the accumulation of grain surplus for US producers, resulting in 20% of the total available storage filled with soya bean, maize, and wheat. It is anticipated to further boost the need for more large storage silos across the country during the forecast period, as the existing ones are reaching full capacity. Click here for the complete report. – Yahoo Finance

Published: 03/11/2023

Malawi’s first large-scale wheat harvest

Malawi has yielded its first successful large-scale wheat harvest after years of attempts to find a variety of grain suitable for its soil. Wheat farming is seen as a solution to mitigate the impact of the Russia-Ukraine war on grain imports to the African continent.

Ronald Ngwira, chief executive officer of Malawi-registered US company Pyxus Agriculture Limited, which operates a farm in central Malawi for the diversification of wheat seeds, said about four varieties of wheat have been found suitable for Malawian soil out of approximately 80 varieties trialed since 2019.

Agricultural experts in Malawi say wheat farming is expected to produce about 90 tonnes, which is 50% of the country’s wheat consumption. – Africa.com

Published: 03/11/2023

Concerns regarding Leaf Services’ inspection costs

Since deregulation, stakeholders have ensured that commodities meet the grading specifications set out in contracts. In this regard, it is important to note that the Agricultural Product Standards Act facilitates trade, and not food safety. Product is checked when producers deliver it to the silo, when a buyer’s consignment is outloaded at a silo, when it arrives at the mill door or when the processor disputes the quality. If it differs

from the contract, a dispute is declared. The additional cost of around R18 million to perform this non-essential function is causing concern as the sector has to pay for services from an appointed agent that the Department of Agriculture, Land Reform and Rural Development (DALRRD) cannot provide from public funds.

In this regard, DALRRD and Leaf Services met with industry on 19 September this year. Since the meeting, the assignee has been contacting individual sectors to discuss the proposed methodology to be established

before the end of the year. The projected cost of inspecting processed products is R30 million. In total, the introduction of these services will cost the grain and oilseeds sector an additional R48 million.

Engagement is ongoing and Agbiz Grain and other stakeholders will use every opportunity to express its concerns and propose more affordable alternatives, where possible. – Agbiz Grain

Published: 03/11/2023

UK wheat stocks forecast to decline

With an anticipated 10% decline in production, and consumption expected to increase, wheat stocks in the UK in the 2023/24 marketing year are forecast to decrease, according to a report from Agriculture and Horticulture (AHDB). Total wheat availability is forecast at 17,3 million tonnes, down 1,3 million tonnes from 2022/23. Production for 2023/24 is seen at 14 million tonnes, almost 1,5 million tonnes lower than the previous year.

The UK-based agency sees wheat consumption rising in both the human and industrial (5%) and animal feed (up 3%) sectors. Consumption is projected to increase by 534 000 tonnes over 2022/23 levels, rising to 15,1 million tonnes.

The report noted that barley stocks are expected to increase even though production is forecast to fall by 5%. This is partially due to a 3% decline in animal feed consumption, the AHDB said. Barley stocks in 2023/24 are projected at 8,3 million tonnes, around 101 000 tonnes lower than the previous season, the AHDB said. Production is seen declining 404 000 tonnes year-on-year to 6,9 million tonnes. – World-grain.com

Published: 03/11/2023

The importance of the the Maize and Wheat Forums

Dr John Purchase, former CEO of Agbiz, sheds some light on the aim and current role of the Maize and Wheat Forums.
Click here to listen to the interview.

Published: 19/10/2023

Storage sector has lost millions

The storage sector has lost R267 million over a period of six years. Agbiz Grain has initiated research projects for funding that will focus on genetics on the one hand, and the history of downgrading over the past 15 years on the other. The two projects are complementary.
The storage sector needs to understand the future storage requirements of barley in order to limit risk and improve the sustainability and competitiveness of barley storage. The research will support the ongoing development of the malting barley storage protocol by Agbiz Grain and a review of the current malting barley grading regulations. – Agbiz Grain

Published: 02/08/2023

Research results for sampling device expected

The dispute protocol was finalised in 2022 and is available on the Agbiz Grain website at www.agbizgrain.co.za. The sampling section cannot be finalised until the South African Grain Laboratory’s (SAGL) research into the three sampling devices has been completed.
Based on the results, Agbiz Grain will make a recommendation as to which device is suitable for dispute resolution and which one complies with the ICC standard. The results of SAGL’s research are expected shortly. Agbiz Grain has made a significant investment to facilitate the research in the interest of the entire value chain. – Agbiz Grain

Published: 02/08/2023

Large global grain supplies expected

The United States Department of Agriculture (USDA) recently released its monthly flagship report, World Agricultural Supply and Demand Estimates. The report’s focus has shifted from the 2022/23 season to the 2023/24 season.
The 2023/24 global wheat production is forecast at 797 million tons, up 1% from the previous season. The larger harvest is anticipated in the European Union (EU) region, the US, Canada, China, India and Turkey. As a result of the expected large harvest, the 2023/24 season’s global maize stocks could increase by 1% year-on-year to 270 million tons. Moreover, the USDA forecasts 2023/24 global maize production at 1,2 billion tons, up 6% from the previous season.
The countries underpinning this improvement in production are the US, Brazil, Argentina, China and the EU region. Regarding South America, the El Niño weather event will present much-needed change of a prolonged four years of below-average rain during a La Niña event. The ending stocks could also increase by 6% to 314 million tons in the 2023/24 season because of the expected robust harvest. – Wandile Sihlobo, Agbiz

Published: 02/08/2023

Wheat Indaba in the works

The wheat industry held its last indaba almost ten years ago. The need for a repeat of this event has arisen as the geopolitical and business environment has changed significantly since then. The planned indaba will possibly take place in October and will focus on the current role and structures in the industry, as well as the needs of the sector. Watch the press for more details. – Agbiz Grain

Published: 02/08/2023

Decision on revised maize grading regulations awaited

Industry stakeholders have until 21 August 2023 to submit their respective comments to the Department of Agriculture, Land Reform and Rural Development (DALRRD) regarding the proposed grading regulations. Inputs were also received from the Agbiz Grain Quality Committee and grading experts.

Following final approval by the Agbiz Grain Steering Committee, the organisations’ comments were submitted to the DALRRD. Stakeholders are awaiting the department’s decision on the proposed revised grading

regulations submitted by Grain SA and the South African Grain Farmers’ Association (SAGRA). – Agbiz Grain

Published: 02/08/2023

Continued push for generic passport system

Stakeholders convened on 28 July to discuss the possible introduction of a generic passport system. They presented their respective systems in operation and explained the information collected in the value chain and how it is captured from production to final delivery to the processor.
Certain stakeholders are increasingly demanding compliance assurances. Providing assurances will add benefits and costs to the chain. The feasibility of a generic passport system that is applicable to every stakeholder in the value chain, depends on the inclusive cooperation of all stakeholders and compliance with the principles of the competition act as part of a voluntary system. A generic passport system should be based on the same principles as an existing passport system where the inclusive cooperation of all stakeholders involved is contracted.
Being part of a generic passport system is not mandatory but voluntary, which increases the risk of failure. Traceability and compliance in the bulk grain value chain will be discussed at the Agbiz Grain Symposium in September. – Agbiz Grain

Published: 02/08/2023

Senwes announces financial results

The Senwes Group recently announced its financial results for 2022/23. With a turnover of R13 632 million (growth of 25,3%), a profit after tax attributable to shareholders of the company of R907 million (growth of 50,9%), and normalised headline earnings of 558,1 cents per share (growth of 40,2%), all stakeholders should be smiling despite the current challenges within the agricultural sector.
“It is important to note that the figures we are presenting relate to the financial year from 1 May 2022 to 30 April 2023. These figures include the harvest delivered in 2022 and the input costs incurred for the next harvest, which will only reflect in our 2023/24 figures,” said Francois Strydom, CEO of the Senwes Group. “When comparing the latest results to the previous year’s, we are grateful for a second consecutive good year.”
Strydom explained that the higher profits can be attributed to several reasons. “The Senwes Group has expanded significantly. Therefore, the higher figures don’t only come from the same customer base, but from more customers and more businesses. Although this is the second year that Suidwes’ figures have been included for a full year, the actual impact of the operational benefits is now at a much higher level. Falcon and KLK also delivered good results. Another important point is that the figures include ten months of our new John Deere dealerships in Germany. It remains crucial for us to allocate capital effectively.”
Strydom mentioned that maize that is not graded as WM1 usually represents around 6% of the harvest but has increased to approximately 35% in the past financial year. “This is due to the exceptionally high rainfall in the previous season, resulting in waterlogged fields. Despite the lower quality, producers were still able to deliver high volumes, and a beneficial maize price worked in their favour. The significant increase in input costs for all crops during the past financial year is also notable. A good wheat harvest also contributed to these financial results.”
The Senwes Group announced a final dividend of 40 cents per share and a special dividend of 56 cents per share. – Press release, Senwes

Published: 02/08/2023

Listen to banks when formulating government policy

The government recently published two controversial regulations in the Government Gazette for public comment. One is the Water Use Licensing Regulations, which seek to introduce a black shareholding requirement to obtain a licence, and the other is the draft Equal Employment Targets proposed for the agricultural sector. (Read articles on both these regulations in this issue of Agbiz Grain Quarterly.)
Agbiz is involved in both processes by interacting with the relevant departments. Since the proposals were formally published in the Government Gazette, they have received a strong response from many civil society organisations and the media.
Agbiz Grain believes that banking, as it is practised in South Africa, enables the creation of a more just, peaceful and equal world. If banks can gain greater recognition for the role they play in determining where capital and liquidity can best be allocated in the agricultural industry to promote economic growth, then the banking industry should not be treated as a passive participant in the creation of national policy. Our banks have the ability to determine the functioning of our modern agricultural practices and way of life. With the necessary confidence in our banking system, our democracy can stand stronger. – Agbiz Grain

Published: 02/08/2023

Rice crisis: Export ban causes panic

India’s move to ban certain rice exports has sparked some panic buying in various countries, with videos on social media showing bags of the staple food flying off the shelves and long lines outside grocery stores.
The ban comes after India’s government earlier expressed concern over inflation ahead of its upcoming elections. According to Wandile Sihlobo of Agbiz, the problem with this view is that India faces far less inflation pressure than other regions. In June 2023, the country’s annual consumer inflation was 4,8%, down significantly from the start of the year when inflation was 6,5% in January 2023. Food inflation has moderated at roughly the same pace, measured at 4,5% in June 2023, down from 5,9% in January.
Importantly, India is a significant global rice producer, accounting for a 26% share in the expected 2023/24 global rice production of 525 million tons, according to data from the International Grains Council (IGC). Of the 50 million tons of rice for global exports projected for the 2023/24 season, India is expected to account for approximately 40%. Other notable rice exporters are Pakistan, Thailand, the US, Vietnam, China, Cambodia and Myanmar. However, India remains the largest exporter. The ban can there lead to major disruptions in the global rice trade and upside pressure on prices.
At the end of June 2023, global rice prices softened from the surge in May as global production prospects improved. This was a positive decline for an already declining global agricultural commodities basket from the peak levels seen after Russia invaded Ukraine in March 2022. – Wandile Sihlobo, Agbiz

Published: 02/08/2023

Dr Pieter Taljaard is stepping down

Grain SA recently announced the resignation of Dr Pieter Taljaard as CEO of the organisation. Taljaard is headed for Canada where he will be managing a vertically integrated grain and oilseed farm on the eastern border of Saskatchewan.
“It’s been a hard and sad decision, but at this stage of my career it is the last opportunity given my age to go on an adventure like this. Especially also given that we can experience this as a family together with our two teenage children,” Taljaard wrote on Grain SA’s website.
A committee was appointed by Grain SA’s board to search for the best candidate to take over the role of CEO. “Grain SA has talented and exceptionally committed personnel and I’m confident that we will manage this transition and continue to serve our members at the same level of professionalism and care we have all become accustomed to.” – Susan Marais, Plaas Media

Published: 02/08/2023

Eight killed, 11 injured in Brazil grain silo explosions

At least eight people were killed and 11 others injured in southern Brazil when a grain silo exploded at the C Vale cooperative in Palotina, a city about 600km west of the Parana state capital Curitiba. Parana is one of Brazil’s top grain-producing states.
C Vale, a major producer of soya beans, wheat and maize that stores grain in 125 units across five Brazilian states and in Paraguay, confirmed in a statement that a “large-scale accident hit our central grain reception unit in Palotina”. The company said the cause was “yet to be determined”.

Published: 02/08/2023

Opportunity: Service provider required

Agbiz Grain requires the services of an entity that will be able to provide the following outputs on a contractual basis.

Published: 04/05/2023

How to become a skills development provider

The Quality Council for Trades and Occupations (QCTO) is responsible for quality assuring all occupational qualifications registered on the Occupational Qualifications Sub-Framework (OQSF). This guide is designed to help you on your journey to becoming a skills development provider (SDP) who can successfully run quality occupational learning programmes.

All information contained in this guide is based on the QCTO policies that can be accessed at www.qcto.org.za under the ‘Resources’ tab. It is recommended that you find the latest versions of the policies on the website and keep them nearby as a reference.

View the complete document here: https://www.qcto.org.za/assets/qcto_the-road-to-success.pdf

Published: 04/05/2023

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