“As part of the process to find solutions to the current crisis in the grain industry, Grain South Africa is continuously in discussion with all the role-players in the industry and has already had discussions with various financial institutions and agri-businesses,” said Mr. Bully Botma, Chairman of Grain South Africa. 

Mr. Botma said that due to favorable climatic conditions, improved production practices and genetically advanced maize cultivars, record yields can be expected this season.  The effect of this is an expected large maize surplus and prices that could decrease to such an extent that producers with exceptionally high yields, will not even cover their variable production cost per ton.

As part of the process to find solutions, discussions similar to those with other commercial banks, were conducted between Grain SA and Absa Agri Business on 20 April 2005.

Absa Agri Business is completely aware of the crisis in the grain industry, but is adamant that there are no instant solutions to the problem. Absa further stated that there couldn’t be an umbrella approach to the current crises, but that every client will be treated on merit.  Production credit will be handled responsibly with the necessary caution given the current crisis situation. Finance will be given for keeping fallow lands clean and in meritorious cases finance and repayment will be structured over the longer-term.

Absa Agri Business agrees that the production of renewable fuels will be to great advantage to the grain industry. It is a long-term solution that will lead to greater stability and sustainability in the grain industry.

“Grain SA is currently, in conjunction with various state departments and other role players such as the fuel industry, developing a policy framework for the establishment of a renewable fuel industry in South Africa. Against this background, Grain SA is pleased with the positive stance of Absa regarding the creation of a renewable fuel industry,” Mr. Botma said.

Graan SA en Absa AgriBesigheid spreek krisis in graanbedryf aan

“As deel van die proses om oplossings vir die huidige krisis in die graanbedryf te vind is Graan Suid-Afrika deurlopend besig om met al die rolspelers in die bedryf gesprek te voer en het samesprekings al met verskeie finansiële instellings en landboubesighede plaasgevind” sê mnr Bully Botma, Voorsitter van Graan Suid-Afrika.

Mnr Botma sê dat as gevolg van goeie klimaatstoestande, verbeterde produksiepraktyke en geneties gevorderde mieliekultivars rekord opbrengste na verwagting hierdie seisoen behaal gaan word.  Die gesamentlike effek hiervan is ‘n verwagte groot mieliesurplus en pryse wat tot sulke lae vlakke sal daal dat produsente teen buitengewoon hoë opbrengste, nie eens hulle veranderlike produksiekoste per ton sal kan dek nie.

As deel van hierdie soeke na oplossings het daar, net soos met ander handelsbanke, dan ook samesprekings tussen Graan SA en Absa AgriBesigheid op 20 April 2005 plaasgevind.

Absa AgriBesigheid is ten volle bewus van die krisis in die graanbedryf, maar stel dit onomwonde dat daar nie ‘n kitsoplossing vir die probleem is nie.  Absa sê verder dat daar nie ‘n sambreelbenadering tot die huidige krisis kan wees nie, maar dat elke kliënt volgens meriete hanteer sal word.  Kredietvoorsiening vir die komende seisoen sal verantwoordelik hanteer word met die nodige omsigtigheid gegewe die krisissituasie. Finansiering vir die skoonhou van oorlêlande sal verskaf word en in verdienstelike gevalle sal finansiering en terugbetalings oor ‘n langer termyn gestruktureer word.

Absa Agribesigheid is dit eens dat die vervaardiging van hernubare brandstof tot groot voordeel van die graanbedryf kan wees.  Dit is ‘n langtermyn oplossing wat tot groter stabiliteit en volhoubaarheid in die graanbedryf sal lei.

“Graan SA is reeds besig om ‘n beleidsraamwerk vir die vestiging van ‘n hernubare brandstofbedryf in Suid-Afrika met verskeie staatsdepartemente en ander rolspelers soos die brandstofbedryf, te ontwikkel.  Teen hierdie agtergrond is Graan SA verheug oor die positiewe ingesteldheid van Absa teenoor die daarstelling van ‘n hernubare brandstofbedryf,” het mnr Botma gesê.