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The 27th annual general meeting of the South African Grain Information Service (SAGIS) was recently held at the Woodhill Country Club in Pretoria.
Outgoing chairperson, Dr Erhard Briedenhann, presented the annual report for the 2023/24 financial year, shedding light on the impact of current global instability and conflicts in regions such as Ukraine-Russia and the Middle East on grain availability. He emphasised that food security in Africa has been particularly threatened. The drought in Southern Africa during the 2023/24 season has reduced crops in the region, turning many countries from net exporters to net importers. This has also reduced South African exports significantly, a major grain-producing country in the region.
Encouraging and a tribute to robust structures created historically, is that South Africa still has formal and unbiased agricultural information available to the market provided by institutions such as SAGIS, a resource many countries envy. SAGIS’s data plays an important role in planning and decision-making within the grain and oilseeds supply chain, including improved risk management. The institution needs to be nurtured and cherished for future generations.
Read more about the new wheat tariff here.
SAGIS under the microscope
SAGIS was established on 11 November 1997, following the deregulation of marketing and control boards in South Africa, to supply the grain and oilseeds industry with essential market information.
Various industry representatives requested that the National Agricultural Marketing Council urge the government to implement statutory measures to compel all market participants to register and report to SAGIS on the movement of grain and oilseeds.
The main task of SAGIS is to publish monthly data and information on nine grains and oilseeds produced in the country. Over the years, the industry has requested more detailed data related to grains and oilseeds to be collected and published. Users of SAGIS information can be categorised mainly into three sectors: primary producers, traders/processors, and policymakers. A list of all released data is available in this report.
According to the report, all statutory measures of SAGIS were extended for another four years on 2 February 2024.
The Ashton CA (SA) Group conducted an audit at SAGIS for the 2023/24 financial year, resulting in an unqualified audit report. Highlights of the financial year included a 2,75% increase in membership fees, a 56,3% increase in interest received, and a 5,8% increase in administrative expenses.
An American perspective
Oliver Flake, minister counsellor for Agricultural Affairs at the United States Embassy, also shared an interesting outlook on maize, wheat and soya beans. According to him, global maize prices are expected to decline even more with an expected increase in exporter stocks. Record global production of maize, soya bean and wheat production are expected for the coming year, while current record global wheat consumption exceeds the record production levels.
Flake also highlighted production changes in Ukraine, which have positively impacted oilseed prices. – Elmarie Smit, Plaas Media
