8 February 2006
Since 1997, South Africa initiated a progressive process aimed at
deregulating its agricultural marketing arrangements. The thrust of the
deregulation in terms of the Marketing of Agricultural Products Act, No 47 of
1996, was to reorient agricultural marketing from a heavily regulated
environment to a free marketing system. Additionally, it sought to meet the
objectives of market access for all market participants, efficiency, and
optimisation of export earnings and the enhancement of overall viability of the
agricultural sector.
Since then, there has been a positive response to deregulation by some
farmers, traders, processors and other service providers along the marketing
chains for most commodities in which we have a comparative advantage in
producing. Deregulation has created many opportunities and resulted in an
increase in the number of new entrepreneurs participating in different nodes of
agricultural marketing value chains, ranging from production, processing,
trading and supplementary services.
It is acknowledged that deregulation was tough on those who were used to
protection and direct/indirect support measures from Government. Nonetheless,
the sector has to adjust to high levels of competitiveness across most value
chains globally. The Strategic Plan for South African Agriculture was developed
in 2001 with the vision of a united and prosperous agricultural sector and core
interlinked objectives of global competitiveness, greater and more equitable
sustainable resource use in the sector. In order to comprehensively assess the
achievement of these aims, the objectives of the Marketing of Agricultural
Products Act and the impact of deregulation, the Minister has decided to
conduct a review of the past seven years of the deregulation process and the
new marketing environment that it has brought about.
During the review, consideration will also be given to the underlying
agricultural marketing legislation(s) to make sure that it is consistent with
and supportive of the dynamic marketing and policy environment. To this end,
the Minister appointed a Committee comprised of suitably qualified and
experienced candidates to undertake the review of the agricultural marketing
environment. The following persons have been appointed to undertake the
agricultural marketing review:
* Dr Mohammed Karaan (Chairperson)
* Ms Jean Davidson
* Dr Tobias Doyer
* Prof Eckart Kassier
* Prof Charles Machete
* Mr Bigman Maloa
* Dr Patrick Sokhela
* Prof Herman van Schalkwyk
* Prof Nick Vink
Currently the Committee is hosting public hearings with different
agro-industries with a view to getting information on the impact of
deregulation within the different industriesâ marketing value chains.
Interested stakeholders or directly affected groups are hereby requested to
respond to the following set of questions in the form of submissions to the
committee:
1. Provide a brief narrative summary of the process of deregulation of your
industry in the period after the report of the Kassier Committee in 1992. In
this narrative, also show why things happened in the way and sequence in which
they did.
2. Describe the organisational arrangements that have since been put in
place to manage the affairs of your industry.
3. Describe the experience of your industry in the post-deregulation era
with respect to:
* Trends in total output;
* Trends in exports and imports;
* Trends in the use of resources (land, capital and labour);
* Changes in the structure of the sector in terms of farm size, shifts in
location of production, etc.;
* Social aspects such as schools, education, health, housing, etc;
* Environmental impacts;
* Research and technology development;
* Competitiveness (global and domestic);
* Regulatory environment and how they impact on business;
* Competitive behaviour; and
* Prices and margins.
4. What in your view would the role players in your industry have done
differently in terms of deregulation, if it had been able to?
5. Provide an overview of progress with land reform and Black Economic
Empowerment in your industry. State whether deregulation had any impact
here.
6. Provide an overview of your industry performance in relation to the
following objectives of the Marketing of Agricultural Products Act, No 47 of
1996:
* Increase market access for all market participants,
* Promote efficiency of the marketing of agricultural products,
* Optimise export earnings,
* Enhance viability of the agricultural sector.
7. Describe the most important factors in the global trade arena that
impacted on your industry. How did your industry contend with them?
8. What can government do to improve marketing in your industry?
9. Identify the positive and negative impacts of deregulation on your
industry, and provide your opinion on whether deregulation was beneficial.
10. Provide any other information that you would like the committee to take
into consideration as well.
The deadline for written submissions from interested stakeholders is 15
March 2006. Submissions and comments can be directed to the committee through
the following contact details:
Dr Mohammed Karaan (Chairperson)
Private Bag X 1
MATIELAND
7602
E-mail: asmk@sun.ac.za and sv@sun.ac.za
Fax: (021) 808 4670
Any other enquiries in relation to the review process can be directed
to:
Dr Mohammed Karaan
Tel: (021) 808 4759
Mr Billy Morokolo
Tel: (012) 319 8455
Email: smdm@nda.agric.za
Issued by: Ministry of Agriculture and Land Affairs
8 February 2006
Source: Department of Agriculture (http://www.nda.agric.za)
