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A rapid rise in South Africa’s soya bean harvest has significantly boosted the South African Cultivar and Technology Agency’s (SACTA) statutory levy income for the financial year ending 29 February 2024.
During SACTA’s annual general meeting, CEO Andrew Bennett announced that as levy administrator, SACTA collected gross levies amounting to R245,92 million for the year (FY2023: R159,92 million).
The 2024 statutory levy income was divided as follows: soya beans (R169,25 million), wheat (R 63,64 million), barley (R12,18 million) and oats (R680 000) and most of this income (75%) will be distributed amongst seed companies for the technological advancement of various crops.
The amount allocated depends on the specific company’s market share. Additionally, 20% is allocated to support transformation and socio-economic projects, while the remaining 5% covers administrative costs and commissions.
Learn more about how soya beans are processed for animal feed here.
Investment in new technology
The collected funds are distributed among seed companies based on their market share. SACTA has already allocated:
- R147,15 million for the 2025 financial year to soya bean development companies (FY2024: R76, 19 million).
- R53,73 million for the 2024 financial year to wheat development companies (FY2023: R48,10 million).
- R7,93 million for the 2024 financial year to barley development companies (FY2023: R7,67 million).
- R759 000 for the 2024 financial year to oat development companies (FY2023: R1,46 million)
- R45 million for the 2024 financial year to lupins (FY2023: R106 million).
Bennett explained that due to the overlap between the winter planting season and the financial year-end, the distribution periods for the amounts paid out to summer crops (soya beans) and winter crops (wheat, barley, oat and lupins) differed.
“Through these funds, we are encouraging companies to invest in new technology and cover the associated research costs, specifically to benefit the South African market,” said Bennett. He added that this initiative has directly led to, among other advancements, the approval of new soya bean technology.
New technologies that have already been developed and introduced to South Africa include Conkesta E3 and Intacta Roundup Ready 2 PRO. Another exciting technology on the horizon is HB4 Soy, which is a stress-tolerant technology, Bennett noted.
Transformation and upliftment continue
Sandile Mahlangu, SACTA’s transformation officer, provided feedback on the 20% of levies allocated to drive the transformation and development of new entrants into the sector. “SACTA provides soft loans rather than grants. It is therefore our belief that the more than R181 million that we have already distributed are still in circulation in the areas where the recipients farm and therefore it is benefitting the entire society,” he said.
In accordance with the National Agricultural Marketing Council’s transformation guidelines, 60% of the SACTA transformation funds are allocated to enterprise development, 18% to skills development, 17% to management control, and 5% to socio-economic development projects.
“With regards to enterprise development, SACTA helps producers through the provision of production input and mechanisation finance, business coaching and mentorship. “Our activities are conducted through service providers.” Mahlangu said the transformation space is extremely nuanced. “That is why we have adopted a holistic approach. We allow crop rotation and seek partnerships with other industries because it does not help if you only focus on one aspect of farming.” – Susan Marais, Plaas Media
