An alternative trust – the South African Winter Cereal Industry Trust (SAWCIT) – was established by the industry for the collection of a voluntary winter cereal levy following the National Agricultural Marketing Council’s decision not to recommend the industry’s application for continuation of the statutory levy.
This follows organised agriculture’s intervention in the activities of the Winter Cereal Trust (WCT). Important operational functions are financed through these funds. Therefore, the industry had to put an alternative system in place before the start of the new marketing season on 1 October 2020.
The agricultural industry in South Africa has had to maintain important functions from its own funds since the deregulation of the marketing boards. These features enable the agricultural value chain, from producer to consumer, to compete globally. Consequently, this ensures food security and that the functions that are funded are among the cornerstones on which the free market is based.
Which functions will the new levy fund?
- South African Grain Laboratory (SAGL).
- South African Grain Information Service (SAGIS).
- Research projects.
Who supports the voluntary winter cereal levy?
- Seed companies: South African National Seed Organization (SANSOR).
- Storers: Agbiz Grain.
- Producers: Grain SA.
- Animal feed manufacturers: Animal Feed Manufacturers’ Association (AFMA).
- Dealers: South African Cereals and Oilseeds Trade Association (SACOTA).
- Millers: National Chamber of Milling.
- Bakers: SA Chamber of Baking.
- Consumers: SA National Consumer Union.
- Pioneer Foods (PepsiCo).
- JSE (Safex).
Are the objectives and functions of the new trust different from the previous WCT?
No, it is virtually identical. However, the operating costs will decrease. The interim measure applies until the WCT’s functions are managed at a desired level.
How much are the voluntary levies?
|Wheat||R14,50 per metric ton|
|Barley||R14,50 per metric ton|
|Oats||R6 per metric ton|
*Please note that VAT is excluded.
When is the winter cereal levy payable?
The levy is payable on all wheat, barley, and oats:
- That is sold by the producer.
- That is imported or exported.
- That is treated or processed by or on behalf of the producer.
- For which a silo certificate is issued.
How is the winter cereal levy collected?
Producers and relevant parties who deliver their grain shall give permission for the voluntary winter cereal levy that is included in the price of the wheat, barley or oats to be deducted when sold or delivered.
Who is responsible for paying the winter cereal levy to the trust?
The buyer, processor, importer, exporter or person issuing the silo certificate is responsible for paying the levy to the SAWCIT.
To whom is the voluntary levy paid?
The winter cereal levy is paid to SAWCIT. The bank account will be confirmed soon.
When is the levy paid?
The SAWCIT must receive the winter cereal levy before the end of the month following the month in which the levy was collected.
Who decides on the use of the winter cereal levy funds?
The trustees appointed by the industry role-players to serve on SAWCIT will manage and control the funds on behalf of the industry.
What is the duration of the new winter cereal levy?
The voluntary winter cereal levy only applies to the 2020/21 marketing year, which starts on 1 October 2020. The industry will decide during 2020/21 how essential services will be funded in future.
For more details, send an email to Leon du Plessis at email@example.com. – Press release, Wheat Forum