Agricultural Business Chamber of South Africa

New Agbiz Grain executive committee elected

Agbiz Grain elected a new executive committee on 12 February this year. Jerry Maritz of AFGRI Grain Management was re-elected as chairperson. Francois Froneman of VKB was named vice-chairperson, while Johan Lusse of Overberg Agri will also serve on the committee. Agbiz Grain congratulates the new leadership and expresses confidence in their continued contributions to the South African grain industry. The committee will play a key role in representing member interests and industry advancement. – Agbiz Grain

Published: 02/05/2025

Brazil to modernise grain storage infrastructure

Brazil’s National Supply Company (Conab) has partnered with the United Nations Office for Project Services (UNOPS) and Itaipu Binacional to modernise grain storage infrastructure in a bid to boost operational efficiency and food supply management. Itaipu Binacional, a partnership between Paraguay and Brazil that runs the hydroelectric plant at the Itaipu Dam, would provide US$10M in funding for UNOPS to conduct infrastructure assessments of Conab’s warehouses in Rolândia, Cambé and Ponta Grossa in Paraná state, and Maracajú in Mato Grosso do Sul. The project is expected to improve the transport of wheat and soya beans to the Port of Paranaguá, located 200km away. The Ponta Grossa facility alone is set to increase its capacity from 300 000 to 420 000 tonnes. UNOPS will oversee the project’s execution, beginning with infrastructure assessments later this year, followed by bidding processes. Renovations are expected to begin in April 2026 and take two years. By significantly expanding the country’s grain storage capacity, the initiative will enhance supply management, help control inflation and reduce food prices for Brazilian consumers. – Oils and Fats International

Published: 02/05/2025

Higher 2025 SA summer crop forecast

South Africa’s commercial maize crop for 2025 has been revised upwards to 14,56 million tonnes, representing a 4,65% (or 647 450 tonnes) increase from the previous estimate of 13,91 million tonnes. The updated figures mark a substantial 13,3% rise compared to the 2024 harvest. According to the latest forecast, the country’s total maize planting area is estimated at 2,597 million ha, with an average yield of 5,61t/ha. The Free State, Mpumalanga, and North West provinces are expected to contribute approximately 81% of the total maize output. White maize production is now forecast at 7,70 million tonnes, up 4,05% from the previous estimate. This crop is planted across 1,6 million ha, with an expected yield of 4,81t/ha. Yellow maize is projected at 6,86 million tonnes – an increase of 5,34% from the earlier forecast – planted on 997 000ha with a yield of 6,88t/ha. Among other summer crops, sunflower seed production is forecast at 770 500 tonnes (+7,01%), and soya beans are set to reach 2,39 million tonnes (+2,78%). Groundnuts have also been revised upwards to 66 929 tonnes (+2,40%), and sorghum is expected to hit 137 435 tonnes (+6,03%). Dry bean production remains steady at 79 007 tonnes. – Crop Estimates Committee

Published: 02/05/2025

GOSA symposium 2025 around the corner

GOSA’s 40th annual symposium will take place at the Diaz Strand Hotel in Mossel Bay on 18 and 19 March 2025. The symposium’s theme will be “Innovating South Africa for a more competitive global market” and will include presentations regarding the current economic and political landscape, a climate outlook, innovation in the handling and storage space, as well as the psyche and principles behind competitiveness to effectively compete in a competitive global market. The symposium provides an excellent platform to expand your network and to meet new role-players across all aspects of the grain value chain. Registration closes on 6 March 2025 or when we are fully booked – whichever comes first. Visit the website at grainorgsa.co.za for more information or follow GOSA on social media. – GOSA

Published: 03/02/2025

Development of SHEQ compliance audit protocol

During the November 2024 Agbiz Grain SHEQ (safety, health, environmental, and quality) seminar held in Pretoria, the need for a standardised SHEQ Compliance Audit for the grain handling and storage sector was one of the panel topics.

The grain handling and storage sector consists of many facilities across South Africa that differ in type, size and age of construction. Such differences result in the sector being challenged by distinct SHEQ risks and mitigation methods, not just in terms of compliance obligations, but also regarding the insurability of the sector.

Although there was unanimous agreement that the sector needs a specific SHEQ compliance protocol, the development of such a document will require all grain handling and storage stakeholders to participate. A sector committee was established and includes nominated participants from industry stakeholders.

The committee will commence early in 2025 with the first step to confirm the scope of the audit protocol and to identify all SHEQ compliance obligations relevant to all types of grain handling and storage facilities. The identified obligations will be used to develop a SHEQ compliance audit protocol. Existing audit protocols of external service providers will also be considered.

The committee then needs to identify an independent auditing body, and determine the audit frequency and requirements. A standardised SHEQ compliance audit protocol will not only allow for the compliance evaluation of each stakeholder but will result in the collective growth of the sector.

The nominated sector compliance committee members are Luven Naidoo of AFGRI Grain Management Service (Pty) Ltd, Lester du Plooy of Agrimark Operations, Elize de Beer of NWK, Jaco Joubert of Overberg Agri, Fabian Boysen of OVK, Lionel Smit of Schoeman Boerdery, Adeline Earle of Senwes, Mariska Malan of SSK, André Badenhorst of TWK Agri, and Gerhard Lourens of VKB/GWK. – Jaco Joubert, Overberg Agri

Published: 03/02/2025

New grain and soya bean terminal in Saudi Arabia

National Grain Company, a joint venture between the Saudi Agricultural and Livestock Investment Co (SALIC) and Saudi shipper Bahri, have opened a new grain and soya bean terminal in Saudi Arabia. Constructed over a two-year period, the facility can handle up to three million t/year of grain including barley, maize and soya beans. It is the first regional centre for grains in the Yanbu port, according to the company. The new terminal has a storage capacity of 156 000 tonnes, including 12 silos with a total capacity of 96 000 tonnes and a flat warehouse with 60 000 tonnes of capacity, a 650m conveyor belt, and a ship grain unloading capacity of 800 t/hour. Abdulrahman Al-Fadley, Saudi Arabia’s minister of environment, water and agriculture and chairperson of the board of SALIC, says the terminal would help boost the origination and discharge of grains to Saudi Arabia and enhance supply chain capabilities. – World Grain

Published: 03/02/2025

Expectations for 2025: Question bank

Agbiz Grain, in conjunction with Lizelle Jacobs of MindAlive, plans to complete a number of important projects in 2025. One of these is the Fumigation of Stored Agricultural Products skills programme curriculum, which is in its final stage. Valuable inputs were received from the fumigation work group, and the final curriculum will be presented to all members in February, after which it will be submitted to AgriSETA for registration with the Quality Council for Trades and Occupations (QCTO). The Grain Depot Manager occupational qualification has been registered on the Occupational Qualifications Framework (OQF) for a year, and skills development providers are currently training students to become world-class depot managers. However, this qualification can only be certified once the student has written the External Integrated Assessment (EISA), a nationally standardised assessment administered in accredited assessment centres. Industry subject matter experts are responsible for compiling a question bank from which each EISA can be compiled. Agbiz Grain has received nominations for experts who have helped with this important task during 2024. Unfortunately, this process is a year behind schedule. Urgent attention is needed to ensure students can apply for certification via the EISA when they complete their training at the end of 2025. Agbiz Grain plans to develop accredited skills programmes for sampling and grading of various agricultural commodities for training students on specific commodities. A funding application has been submitted to AgriSETA for the development of the curriculum and learning material for maize (white and yellow), wheat, soya beans, and sunflower seed in 2025. The same will be done for barley, canola, sorghum, and groundnuts in 2026. The process to be followed is similar to the one used for the Fumigation Skills Programme currently in development. A working group will be nominated from the grain industry and, along with a facilitator, will develop the outline and scope of each skills programme. All curricula are submitted to the QCTO for registration. – Lizelle Jacobs, MindAlive

Published: 03/02/2025

Narratives shaping SA’s 2025 production

We find ourselves in a tricky crop season. At its start, we expected a recovery from the 2023/24 season characterised by El Niño induced drought damage. It started to rain in most regions of the country from mid-December 2024 to January 2025, and continued to rain at the time of this note’s publication. Grazing veld showed the promise of recovery, but concerns remain now that producers who have not yet completed planting are struggling to get into the fields because of the wet weather conditions. The main risk with planting late is the possibility of frost damage later in the season. If the country is fortunate to be spared from frost, as we have seen in recent seasons, the prospects for a better harvest remain, even for late plantings. Higher white maize prices in South Africa may be a reality in the first quarter of 2025 and relief may become evident in the second quarter of the year. – Wandile Sihlobo, Agbiz

Published: 03/02/2025

First white maize imported since 2017

South Africa recently offloaded its first white maize vessel since March 2017 in Durban. The country has not imported white maize since the big drought of 2016/17. This trend changed with last year’s poor crops, record exports to Zimbabwe, and record high prices.

During the 2023/24 production year, grains and oilseeds experienced a poor year with production declining from the previous year by approximately 22,5% in the case of maize and 33,5% for soya beans. In November 2024 the final estimate of the Crop Estimates Committee for white maize production was at 6,007 million tonnes, down by 29,3%, and yellow maize was at 6,716 million tonnes, down by 15,4%. In the South African seasonal crop cycle, these products should last until approximately March/April 2025 before the new crop (planted in November and December 2024) becomes available again.

Looking at South African demand only, this means the country had just enough grains to feed itself. However, from a Southern African perspective, during most years, South Africa also supplies countries such as Botswana and Namibia with the bulk of their demands. What the South African grain industry did not fully anticipate was that the drought would also affect crop production in the countries around us, and we saw strong demand from particularly Zimbabwe, not only for white but also yellow maize. As early as the end of February 2024, it became evident that South Africa would have to import yellow maize and possibly white maize and soya beans. – Press release, SACOTA

Published: 03/02/2025

Drought impacts NWK income

Last year’s drought is cited as the biggest contributor to the almost 50% drop in the North West-based agricultural company NWK’s half-year profit, from R133 million in October 2023 to R69 million in October 2024.

According to an NWK press release, most of the company’s service area did not receive enough rain, accompanied by extremely high temperatures during critical phases of 2023/24’s crop development. The region was able to realise only around 40% of the previous year’s maize harvest, which amounted to only a sixth of the average harvest. However, NWK’s half-year income increased by 1,6% from R2,897 billion in October 2023 to R2,943 billion in October 2024. Despite the drought, NWK still issued an interim dividend of 14c/share. This represents a total of R15 million allocated for distribution to shareholders. – Susan Marais, Plaas Media

Published: 03/02/2025

Agbiz Grain members to meet at SHEQ seminar

The Agbiz Grain SHEQ Working Group will meet on 7 November to discuss three critical aspect:

The Agbiz Grain SHEQ Compliance Audit: This audit document will be drafted by a drafting committee from the sector with the help of external parties who will be part of the audit process.
Alcohol and substance abuse in the workplace (particularly the use of cannabis): Employers have been forced to review their policies and procedures as employees may exercise their right to use cannabis before and after work.
Injuries in the workplace (doctors not wanting to treat injury on duty [IOD], employees faking IODs for various reasons, Compensation for Occupational Injuries and Diseases Act [COIDA] claims): Members are experiencing reluctance on the part of some medical practitioners and institutions to treat IODs, as many of them claim that they are not paid by the Commissioner for their services.

Agbiz Grain Quarterly will report on this meeting in an upcoming issue in 2025. – Agbiz Grain

Published: 04/11/2024

QCTO skills programmes: Sampling, grading and fumigation

The development of the Sampling and Grading Skills Programme for 2024/25 will include maize, wheat, soya beans, and sunflower seeds and for 2025/26, canola, malting barley, sorghum, and groundnuts. A total of eight skills programmes will be developed. Students will earn credits for the Quality Council for Trade and Occupations (QCTO) accredited Grain Depot Manager and Grain Grader Qualification developed by Agbiz Grain.

Lizelle Jacobs of Mind Alive has been appointed as the facilitator for the development of the skills programme, Fumigation. For more information regarding the development of the respective skills programmes, contact Lizelle at info@mindalive.co.za. – Agbiz Grain

Published: 04/11/2024

US expands grain handling safety programme

The United States (US) Department of Labour recently announced that its Occupational Safety and Health Administration (OSHA) launched a regional emphasis programme to address worker safety in the highly hazardous grain handling industry, as preventable injuries and unchecked hazards continue to be a serious concern for workers in the region. The programme in Missouri is identical to those already in place in Kansas and Nebraska.

Between 1 October 2020 and 30 September 2023, OSHA responded to three fatalities, 13 reported amputations, and 36 hospitalisations among industry workers in the three states alone. During this period, the agency completed 104 inspections, including 68 in Kansas, 28 in Nebraska, and eight in Missouri. It received 131 complaints or referrals regarding unsafe conditions in the grain handling industry.

Hazards at grain handling facilities are well documented and include dangers related to fires and explosions if combustible dust ignites, engulfment, confined spaces, falls, auger entanglements, electrical shock and electrocution, struck-by incidents, and those related to rail car operations.

The expanded five-year programme targets industry employers with grain elevators, grain storage and milling operations, and those engaged in animal feed production, farm machinery, and equipment repair or maintenance. – Insurance Journal

Published: 04/11/2024

Complaints regarding SB1 standard to be resolved by storage operators

The Johannesburg Stock Exchange (JSE) has been receiving complaints that soya beans being delivered as a SB1 standard, do not meet quality expectations. This is affecting the ability of JSE clients to access their stocks in a timely manner as they have to wait for the stock to be sifted to remove foreign matter. The JSE believes that when a storage operator issues a silo certificate, the client should receive the quality and quantity of the product stated on the JSE certificate without the need to sift the product. Sieving delays the process of getting the product to the crushers and waiting time adds costs to the processor.

The JSE advocates that storage operators should assist their JSE clients to receive the correct quality and quantity of their that a storage operator cannot find a client’s stock at a particular location and has to outload at another location, it should be borne in mind that the cost of transportation is the responsibility of the storage operator. If such issues are raised with the JSE, it will refer the client to the storage operator for a resolution. – Agbiz Grain

Published: 04/11/2024

JSE: Physical deliveries amid tight stock levels

The JSE, as a licensed exchange, is obligated to ensure a fair, efficient, and transparent market in futures contracts listed and traded on its commodity derivatives market. An integral aspect of maintaining this market’s integrity in physically settled commodity futures contracts is market participants’ compliance with their delivery and other obligations as recorded in the JSE Rules and Contract Specifications.

The specifications contain extensive provisions regarding approved storage operators’ obligations and responsibilities in respect of the commodities stored in terms of JSE receipts, one of which is their obligation to store and deliver the quality and quantity of commodities at the location recorded on the JSE receipt.

The JSE has been informed that the 2023/24 summer grains and oilseeds crop has had a difficult season due to dry weather, resulting in a lower harvest than the previous season. In these circumstances, and as a result of the transition from one season to the next with lower stock levels compared to the previous year, there may be concerns regarding the availability of commodities in certain regions.

Market participants are urged to manage their outloading booking slots promptly and are reminded of the 25% booking slots designated for JSE receipts on the main hedging months. Furthermore, clients are urged to utilise the JSE Stock of Grain Report to identify where the majority of JSE stock levels per silo are stored and to consult the Silo Unavailability Report. – JSE Market Notice

Published: 04/11/2024

GrainCorp fined for fumigation mishap

GrainCorp Operations Ltd has been fined AU$15,000 by the New South Wales (NSW) Environment Protection Authority (EPA) after an alleged system error led to a phosphine gas emission at the company’s Port Kembla grain terminal in New South Wales, Australia earlier this year. Phosphine gas is used by grain companies to control pests during fumigation processes.

The NSW EPA said the error occurred after an operator at the grain terminal connected the wrong gas sample line to the grain fumigation monitoring equipment. As a result, both of the terminal’s monitoring and control systems failed, which allowed the emission of the phosphine gas at levels above the licensed limit.

A GrainCorp investigation found no environmental or public health risks, but the company said it is implementing corrective actions and additional engineering controls to prevent future incidents. NSW EPA is the primary environmental regulator for New South Wales. The agency partners with business, government, and the community to reduce pollution and waste, protect human health, and prevent degradation of the environment. – World-Grain.com

Published: 04/11/2024

Latest developments concerning SHEQ audit

As the grain storage industry is unique and has unique risk and mitigation applications for those risks, the need for audit criteria focussed solely on the grain storage sector has been raised. The idea is to have an audit document that covers all the aspects that grain storage facilities should comply with. This document will be drafted by a drafting committee from the sector with the help of external parties who will be part of the audit process.

Issues that will be discussed at the Agbiz Grain SHEQ seminar on 7 November this year include: What are the advantages and disadvantages of such an audit document? Will all members of Agbiz Grain participate? Will this add value to the work SHEQ teams perform in the industry? What are some of the basics we would like to see in such an audit document? The following panel members will assist in reaching conclusions: Gerard Ramage of VKB Group, Ebbe Rabe of Price Forbes, Jaco Joubert of Overberg Agri, and Japie Greyling of AFGRI. – Agbiz Grain

Published: 04/11/2024

Viridis appointed in SAWCIA open tender process

The South African Winter Cereal Industry Agency (SAWCIA) has appointed Viridis as the administrator and to communicate with collection agents concerning the collection of statutory levies for wheat, barley, and oats. This follows an open tender process during September this year. Be sure to read the full article elsewhere in this publication. For more information, Agbiz Grain members and all other collection agents are welcome to contact Gert Kok of Viridis at admin@viridisafc.co.za. – Agbiz Grain

Published: 04/11/2024

Olam looking to expand in Africa

After recently announcing plans to construct a new pasta production facility and expand its wheat flour production capacity in Ghana, Olam Agri said it is looking at further expansion in Mozambique and other Southern Africa Development Community (SADC) countries.

Consumption of wheat-based products in Mozambique has increased significantly over the past two decades, almost tripling since the early 2000s, with annual wheat consumption reaching 700 000 tonnes. The country is a gateway to SADC countries as it shares a border with Tanzania, Malawi, Zambia, Zimbabwe, South Africa, and Eswatini.

Olam Agri, which has operated in Mozambique for the past 25 years, has a strong presence across all 11 provinces with operations in Maputo, Beira and Nacala, where the main ports are situated. The company is a leading distributor of edible oils and rice, and is aligned with national efforts to improve food security. An expansion into wheat milling and pasta production will add value to local processing capabilities, the Singapore-based company said. – World-Grain.com

Published: 04/11/2024

Effect of storage problems on commercial equine feed: Austria

In a recent study, researchers at the Austrian University of Veterinary Medicine evaluated the effects of storage on maize, oats, and barley, which are some of the main cereal grains in equine feeds. The researchers examined commercial cereals manufactured by different local companies and bagged for sale including native oat, barley, and maize as well as flaked oats, flaked barley, and flaked maize.

Some interesting results from the 36 samples include:

Impurities were found in 28 samples, including rye, wheat, wild oats, chaff, husk, sand, earth, and manure.
Oats had higher impurities than barley or maize.
Unopened samples had higher impurities than the opened samples stored for 42 days.
All barley samples had pest components, such as moth larvae, meal mites, and booklice. Control samples contained flawed grains and pests, with maize having the fewest impurities. All samples had concentrates of secondary metabolites of fungi.
Fumonisin was only found in maize.
Barley had the most concentrations of pesticides, including piperonylbutoxide, but at low levels.
All samples retained dry matter content above 88%, with levels below 85% considered unacceptable. – Equine Management

Published: 04/11/2024

Agco focusses on precision agriculture

Ferguson, and Valtra, is selling its grain storage and processing division, Grain and Protein, for US$700 million (equivalent to €648 million) to investment firm American Industrial Partners. The deal involves five brands: GSI, Automated Production, Cumberland, Cimbria, and Tecno. Under these brand names, Agco manufactures grain silos, dryers, and conveyors. However, Agco will retain the Chinese operations of Grain and Protein.

According to Agco, divesting this division allows the manufacturer to focus on the production and development of agricultural machinery and precision agriculture technologies. Agco plans to use the proceeds from the sale for predetermined priorities, including paying off debts, investing in technology, business growth, and paying shareholders. – Future Farming

Published: 04/11/2024

Improved grain storage mitigates food crisis

Building resilience requires action across the food production chain, and Egypt’s government has taken a multi-pronged approach. One of the foundational elements of this strategy is to improve and expand the capacity of grain storage.

The World Bank’s Emergency Food Security and Resilience Support Project is part of these efforts to expand and renovate Egypt’s food silos. The Assiut food silo in the Upper Egypt governorate is one of the first to be expanded under the project, which involves rehabilitating and expanding seven silos and building two new ones. At the Assiut silo, storage will be expanded from the current level of 60 000 to 100 000 tonnes of grain annually. – World Bank

Published: 04/11/2024

Manildra wheat starch silos collapse

The Manildra Group is developing a recovery plan and safety assessment after the collapse of two silos spilt thousands of tonnes of wheat at its starches factory at Bomaderry on the New South Wales coast, releasing grain into the Shoalhaven River on 17 October, ABC News reported.

The flour mill has been shut down, but two-thirds of the plant are still operating. Each of the collapsed silos held around 1 000 tonnes of grain. The site has four silos, and a third silo containing 500 tonnes of grain was also badly damaged.

The silos are situated on the edge of the river, and the collapse impacted a hydrant, with the resulting water flow carrying wheat into the river, according to authorities. It is unknown what caused the silos to collapse or how much wheat entered the river. – World Grain

Published: 04/11/2024

Ukraine’s grain exports up from last year

Ukraine’s grain exports for the 2024/25 July to June season totalled 13 million metric tonnes as of 21 October, up from approximately 8,3 million tonnes on 23 October 2023, according to data from the agriculture ministry. The volume included 7,2 million tonnes of wheat, 3,8 million tonnes of maize, and 1,7 million tonnes of barley.

Ukraine’s government and farm associations have agreed to limit wheat exports in the 2024/25 season to 16,2 million tonnes to ensure sufficient supplies for the local population. Traders have utilised almost 44,5% of the agreed wheat export quota so far, with no restrictions on exports of other commodities.

The ministry reported that traders had exported around 2,6 million tonnes of grain in October compared to 1,6 million tonnes over the same period last year. The combined grain and oilseed crop for this year is expected to fall to 77 million tonnes, including approximately 54 million tonnes of grain, the ministry said. Ukraine’s grain exports in the 2023/24 marketing season increased to roughly 51 million tonnes from 49,2 million tonnes the previous year. – XM

Published: 04/11/2024

Review: Canola and malting barley grading regulations

Stakeholders in the value chain of canola and malting barley should note that the regulations are currently awaiting ministerial approval to be published in the government’s notice for public comment. – Agbiz Grain

Published: 07/08/2024

OVK students to embark on Grain Depot Manager qualification

OVK is excited to partner with Agbiz Grain on a journey where we help shape future leaders in the grain sector and advance professional capabilities within the grain industry.

OVK is proud to have two members who have enrolled for the grain depot manager (GDM) qualification. This qualification will equip them with the skills and knowledge to manage and achieve targets effectively, learn how to manage and lead personnel, and utilise resources efficiently while meeting responsibilities.

In addition, it will enable students to achieve operational efficiencies and maintain the mechanical integrity of bulk grain handling and storage units. OVK is honoured to have Joe Stander, silo manager at Clocolan silo, and Sipho Makatsi, silo manager at Ficksburg silo, as part of the GDM qualification group. – OVK

Published: 02/08/2024

Agbiz Grain welcomes Intreso Africa

Intreso Africa, a division of Intreso Group which incorporates the existing Agricultural Solutions business and holds exclusive rights to Draslovka proprietary products, presented its company profile and products to the steering committee on 20 May this year. The committee approved its associate membership at the meeting on 12 June. Intreso Group provides global trial support, application and product development consulting, and regulatory and business development support to suppliers, distributors, and customers of fumigation products. – Agbiz Grain

Published: 02/08/2024

NWK welcomes new trade manager

Bertus Jacobs joined NWK as the senior manager of NWK Trade on 1 June 2024. He took over from Pieter Coetzer, who retired on 31 July this year.

Jacobs grew up on a farm between Christiana and Schweizer-Reneke. After completing his master’s degree in sustainable agriculture at the University of the Free State, he joined GWK as operational head of precision farming

in 2011. He was the area manager of precision farming for the central region from 2014 to 2016. He also obtained a Master of Business Administration (MBA) qualification from Stellenbosch University in 2016.

In August of 2016, he started working at the Humansdorp Landbou Koöperasie as a technical/specialist services manager. He was tasked with the operational management of various divisions, including fertiliser, agricultural

chemicals, seed, veterinary services, livestock, irrigation, as well as geographic information systems and technological development. He was also responsible for establishing a shade net erecting business unit that installed shade net for export crops such as citrus and grapes.

Jacobs is grateful towards NWK for the opportunity: “I am looking forward to investing in the area where I am from and to be part of an established agricultural business that is 115 years old. It remains a privilege to expose your children to the culture and values of this farming area.” – NWK

Published: 02/08/2024

Empowering grain depot leaders

On 29 July the Grain Depot Manager and Grain Grader Qualification Orientation marked a significant milestone in grain depot management. Lucas Mahlangu, training manager at AFGRI Grain Management, opened the event, setting the tone for a day of learning and professional growth.

The orientation featured contributions from Wessel Lemmer, general manager of Agbiz Grain, Jerry Maritz, managing director of AFGRI Grain Management, Jan de Sousa, general manager of operations at AFGRI Grain Management, and Emmie Pietersen, director of the Peritum Agri Institute.

The 24-month course, funded by AgriSETA, offers standard and uniform qualifications under the National Qualification Framework. Participants will receive certificates upon completion, recognising their achievements. The programme includes seven modules, four of which are core, designed to equip grain depot leaders with essential skills.

Pietersen provided an overview of the programme, noting the dedication required to complete the qualification and challenged participants to engage deeply with the content.

The Grain Depot Manager and Grain Grader Qualification Orientation is a significant step in empowering grain depot leaders, ensuring the industry’s sustainability and growth.

Congratulations to all who contributed to this remarkable achievement and to the participants embarking on this journey of learning and leadership. – AFGRI Grain Managment

Published: 02/08/2024

Regulation slows innovation

At the International Grains Council Grains Conference 2024, held in London, England on 11 and 12 June, delegates were told that the grains sector needs innovation and access to new technology to feed a growing population. Some are hoping that political changes in Europe will speed up the approval of new products and varieties.

Eric Dereudre, vice-president of international government and industry affairs for Corteva, an agricultural chemical and seed company, noted that producers have increased productivity over the last 50 years to feed a doubling population, while global maize production almost doubled in the last 30 years.

Dereudre also pointed out that there is already a “very large gap” between the productivity growth needed and what is being achieved, which is “not due to lack of effort from the agriculture sector”. He added: “All the innovation in the world can only be half the solution. Fast technology adoption is needed.” – World-Grain.com

Published: 02/08/2024

Application for statutory levy on wheat, barley and oats

The purpose of the application for a statutory levy is to provide financial support for winter cereal information, research, and transformation functions identified by the winter cereal industry as essential. This application has received unanimous support from the members of the Wheat Forum, following the recommendation of the Wheat Forum steering committee, representing the directly affected groups in the winter cereals industry.

Statutory levies have previously been imposed on wheat, barley and oats (which expired in September 2020) to provide financial support for research projects, quality testing, the provision of generic market information to all stakeholders, and to support the development of emerging winter cereal producers in South Africa. Agbiz Grain members support the application to reintroduce statutory levies on wheat, barley, and oats from 1 October 2024 to 30 September 2028. – Agbiz Grain

Published: 02/08/2024

NWK Training Centre accredited

The Quality Council for Trades and Occupations (QCTO) has set policies in place to accredit trade test centres or assessment centres. The aim is to ensure that education and training in occupations and trades offered in the country are credible and valid. This is done in accordance with the Skills Development Act, 1998 (Act 97 of 1998), Chapter 6C as well as the Continuing Education and Training Act, 2006 (Act 16 of 2006).

NWK applied for accreditation to the QCTO and its quality partners. Following a site inspection of the training centre, approval was given and the NWK Training Centre is now accredited for a period of five years starting 11 July 2024. The centre is accredited to test and assess the Occupational Certificate: Grain Depot Manager, an NQF level 5 qualification (ID 118686). – NWK

Published: 02/08/2024

Malting barley research initiated

Storage operators and buyers need information on the storability of malting barley varieties. Agbiz Grain has initiated two separate but mutually beneficial malting barley projects for 2023/24. Agbiz Grain appreciates the South African Winter Cereal Industry Trust’s (SAWCIT) financial support for the two research projects.

The respective researchers will provide SAWCIT with progress reports on the two projects. In addition, two follow-up projects have been identified for 2024/25 and once these are approved by SAWCIT, more information will be provided on the outcome and approval of the respective projects. Agbiz Grain has committed resources to the new project application from the start of the marketing year on 1 October when malting barley is received for storage. – Agbiz Grain

Published: 02/08/2024

Plant protection options welcomed

The European Association of Trade in Cereals, Oilseeds, Rice, Pulses, Olive Oil, Oils and Fats, Animal Feed and Agrosupply (COCERAL), UniStock, and Euromalt acknowledge the ongoing technical and political debate in the European Union (EU) on managing residues of plant protection products in food and feed, in a way that is safe for human and animal health, and respectful of the environment.

In particular, COCERAL, UniStock, and Euromalt welcome harmonised measures that reflect the agricultural needs of the EU member states and third-export countries and can favour international co-operation, underpinned by a rules-based order established in science.

With crop protection considerably moving to greener and more sustainable alternatives, including low-risk substances, biological tools, agroecology, and integrated pest management, it is relevant to maintain the options the farming community needs to grow crops and feed the planet. – COCERAL

Click here for more information on COCERAL, UniStock and Euromalt’s positions on plant protection products.

Published: 02/08/2024

Change to maize grading regulations requested

Agbiz Grain is requesting a permanent change to the maize grading regulations, which were previously agreed upon by consensus by members of the value chain in 2022/23. Unfortunately, these recommended changes were not considered for inclusion in 2023/24.

The proposed changes were submitted to the technical committee of the Maize Forum steering committee (MFSC) this year and need to be reviewed for approval by the technical committee before being recommended to the MFSC. The Department of Agriculture is awaiting the recommendation of the MFSC to initiate the process. The application for a permanent change to the regulations is a lengthy process that can take up to two years, potentially

extending to 2027. – Agbiz Grain

Published: 02/08/2024

Grain Depot Manager qualification question bank

Agbiz Grain members have developed a question bank for the grain depot manager (GDM) qualification that must meet the requirements set out in the External Integrated Summative Assessment (EISA) question bank workshop. Lizelle Jacobs from MindAlive, who facilitates the process, will evaluate the questions to ensure they adhere to the principles and question requirements.

In addition, the questions will be tested by a specialist in the storage industry to ensure they are not ambiguous and to assess the correct answers. According to Jacobs, the process is already more than 10% complete, but there is still a long way to go. The first intake of students will take the EISA exam around March 2026. – Agbiz Grain

Published: 02/08/2024

New genomic techniques require balanced legislation

COCERAL has delivered a letter on the evolutionary legislation on new genomic techniques. The new legislative framework was expected to be unveiled in late June, according to the latest information available, and some political choices must still be made, including on traceability and transparency of ‘conventional-like’ new genomic techniques (NGTs).

In COCERAL’s perspective, it is important not to impose traceability, labelling, and coexistence measures that place specific obligations on producers growing conventional-like NGT varieties. This is specifically important in the global context, considering the trade-related challenges that might arise in case the EU’s approach does not align with the enabling policies increasingly being adopted by Europe’s trade partners.

In addition, imposing extra requirements (traceability, segregation, and labelling) on conventional-like NGT products would be discriminatory, not proportionate and not science-based. Eventually, in a market-oriented, consumer-driven food value chain, freedom of choice means that legitimate production choices have economic consequences, i.e., food business operators have to bear the costs for the benefits. Transparency, traceability, and segregation should reflect this baseline principle.

So far this assumption has governed the relationship between conventional and premium price/niche markets well, including the organic sector, and should remain in place. – COCERAL

Published: 02/08/2024

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

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