“The current crisis in the grain industry can have far-reaching consequences for grain producers, financial institutions, input suppliers and consumers, if workable solutions over the short as well as the long term are not introduced as soon as possible”, said Mr Bully Botma, Chairman of Grain South Africa.

Mr Botma said that Grain SA has already spoken to commercial banks, agricultural businesses, co-operatives and other financiers about possible measures to manage the current crisis in the short-term.  From these discussions it has become apparent that an umbrella approach will not be possible, but that the involved institutions will, on the basis of merit, deal with their clients on an individual basis.

He advised producers to directly contact their respective financiers in this regard.  Certain financiers have already developed plans that will offer various options to producers for the marketing of the current crop, as well as for planning the planting of the new crop at the end of the year.  These plans include the aspects of financing of fallow land tillage, wages for regular labour, liabilities with hire purchase contracts, cost of living and the buying back of maize.  The harvested maize of producers can serve as security, on condition that producers don’t plant the area, as agreed to with their financiers, to maize in the coming season.

“Currently it is in any case far cheaper to buy maize than to produce it, as the maize price is much lower than the production costs necessary to produce it”, said Mr Botma.

Over the longer term the manufacturing of bio-ethanol and bio-diesel can offer a solution to the problem of surplus production, as well as create an expanded market for the increased production of grains such as maize, sorghum and oil seeds.

“The proposal that producers made during the mass meetings to allocate 30% of their current crop for the manufacturing of bio-ethanol, will have to be seriously considered by producers as a long term solution to surplus production.  Each and every producer will however have to make his own business decision in this regard.  Grain SA will, in co-operation with Ethanol Africa, do everything possible to keep producers informed with regard to relevant information and further developments in this initiative”.

Grain SA will continue to interact with Government to create the necessary policy framework that will promote the establishment of a renewable fuels industry in South Africa.  Funds for an independent study into the longer term economic viability of ethanol production from grains will also be made available.

“The manufacturing of renewable fuels will not only stabilise the grain industry, but will also benefit new entrants to the commercial grain industry and stimulate rural development”, said Mr Botma.

Oplossings vir die krisis in die graanbedryf

“Die huidige krisis in die graanbedryf kan verreikende gevolge vir graanprodusente, finansierders, insetverskaffers en verbruikers inhou indien werkbare oplossings oor die kort- sowel as die langer termyn nie so gou as moontlik in werking gestel word nie”, sê mnr Bully Botma, voorsitter van Graan Suid-Afrika.

Mnr Botma sê dat Graan SA reeds met handelsbanke, landboubesighede, koöperasies en kontrakfinansierders oor moontlike maatreëls ter oplossing van die krisis oor die korttermyn gesprek gevoer het. Uit die gesprekke het dit duidelik na vore gekom dat ‘n sambreelbenadering nie moontlik is nie, maar dat die betrokke instansies hulle kliënte op ‘n individuele meriete grondslag met sal handel.

Hy het produsente aangeraai om direk met hulle onderskeie finansierders in hierdie verband in verbinding te tree. Daar is reeds planne by sommige van die finansierders op die tafel wat verskillende opsies aan produsente bied om die bemarking van die komende oes en die aanplanting van die nuwe oes teen die einde van die jaar te beplan. Sommige aspekte hiervan sluit byvoorbeeld die finansiering vir die bewerking van oorlêlande, betaling van lone aan gereelde arbeid, verpligtinge met huurkontrakte, lewenskoste en die terugkoop van mielies in. Produsente se mielies kan as sekuriteit dien, onder die voorwaarde dat hulle die oppervlakte wat met hulle finansiers ooreengekom word, nie gedurende die komende plantseisoen met mielies aanplant nie.

“Op die oomblik is dit in elk geval baie goedkoper om mielies te koop omdat die mielieprys tans baie laer is as die produksiekoste om dit self te produseer,” sê mnr Botma.

Oor die langer termyn kan die vervaardiging van bio-etanol en biodiesel ‘n oplossing vir surplusproduksie van mielies bied en ‘n groter mark skep om die produksie van grane soos mielies en sorghum, asook oliesade, selfs uit te brei.

“Die voorstel wat produsente tydens die massavergaderings gemaak het om 30% van die komende mielie-oes aan te wend vir die vervaardiging van bio-etanol, sal ernstig deur produsente oorweeg moet word as ‘n langer termyn oplossings vir surplusproduksie. Elke produsent sal hieroor sy eie besigheidsbesluit moet neem. Graan SA sal in samewerking met Ethanol Africa alles in sy vermoë doen om produsente oor alle ter saaklike inligting en verdere ontwikkeling in hierdie verband op die hoogte te hou.”

Graan SA sal ook voortgaan om die nodige beleidsraamwerk met die regering te beding en te skep wat bevordelik sal wees vir die vestiging van ‘n hernubare brandstofbedryf in Suid-Afrika. Fondse vir ‘n onafhanklike ondersoek na die langer termyn ekonomiese lewensvatbaarheid van etanolproduksie sal ook beskikbaar gestel word.

Die vervaardiging van hernubare brandstof sal nie net die graanbedryf weer stabiliseer en volhoubaar maak nie, maar sal ook tot voordeel van nuwe toetreders tot die graanbedryf en landelike ontwikkeling wees”, het mnr Botma gesê.