The National Agricultural Marketing Council (NAMC) has invited directly affected groups in the oilseeds industry to forward comments regarding the request from the South African Cultivar and Technology Agency (SACTA) for the continuation of levies on soya beans for breeding and technology purposes.

On 22 June 2018, statutory levies on soya beans were approved to fund seed breeding and technology for two years. The second season of the statutory levy on soya beans commenced on 1 March 2020 and will lapse on 28 February 2021. See the table below for more info on the levies for this period.

CommodityPeriodAmount (VAT excluded)
Locally produced soya beans1 March 2019 to 28 February 2020R65 per metric ton
1 March 2020 to 28 February 2021R80 per metric ton

Continuation of levies on soya beans

The NAMC received a request from SACTA on behalf of specific role-players in the oilseeds industry that the Minister of Agriculture, Land Reform and Rural Development should approve the continuation of the statutory levy on soya beans until February 2023 in terms of Section 15 of the Marketing of Agricultural Products Act, 1996 (Act 47 of 1996), or MAP Act. This levy will stimulate and ensure new breeding technology in the industry. Furthermore, it was requested that the minister approve the following period and levy rate:

CommodityPeriodAmount (VAT excl)
  Locally produced soya beans1/03/2021 to 28/02/2022R57 per metric ton
1/03/2022 to 28/02/2023R55 per metric ton

Levy has been quite effective

According to the applicant, the levy has proven to be very effective, and payments to the appropriate seed breeding companies will soon be made in respect of the previous marketing season. Continuation of the model is important to maintain the required benefits for the development of new seed technology to improve yields and to sustain food security in the country.

A separate account is administered in respect of the levy collected on soya beans in each season. If approved, buyers processors and people issuing a silo receipt will have to pay the levy to SACTA, and it will be recovered from producers. From time to time, people paying the levy may claim 2,5% commission on the amount of the levies recovered, in accordance with the conditions set by SACTA.

Information and comments

For particulars on the statutory measures required under Section 10 of the MAP Act or to read more about SACTA’s estimated budget for the soya bean levy, click here to read the full press release.

Directly affected groups in the oilseeds industry are kindly requested to submit comments or objections regarding the proposed breeding and technology levy on soya beans to the NAMC in writing (email: lizettem@namc.co.za) on or before 31 July 2020 to enable the council to formulate its recommendation to the minister in this regard. – Press release, NAMC