SA’s alternative winter grain trust fully operational

South Africa’s new alternative winter grain trust, the South African Winter Cereal Industry Trust (SAWCIT), is now fully operational.

All administration processes as well as VAT registration have been completed. It is now possible for winter grain producers to claim VAT on the voluntary levies payable to the trust, according to Leon de Beer, administrator of SAWCIT.

The trust was established by the industry in October 2020 for the collection of voluntary levies on winter grains, following the National Agricultural Marketing

Council’s decision not to recommend the industry’s earlier application for continuation of the statutory levy. This also followed the phasing out of the Wheat Board (a statutory institution under the Marketing Act of 1968). “The industry decided to form a new entity that could continue to serve local producers as well as the value chain,” De Beer said.

A voluntary levy was consequently payable to SAWCIT on all wheat, barley and oats sold by farmers, winter grains that were imported or exported, processed by or on behalf of producers, and for which a silo certificate was issued.

According to De Beer, members included farmers, seed companies, animal feed manufacturers, millers, bakers, consumers and other role players in the value chain.

Richard Krige, Grain SA’s vice-chairperson, and Boikanyo Mokgatle, CEO of the Chamber of Milling, were elected as chairperson and vice-chairperson respectively of SAWCIT.

Voluntary levies of R14,50/t would apply for wheat and barley and R6/t for oats. Buyers, processors, importers, exporters or the issuers of silo certificates were responsible for paying the levy to SAWCIT. Six trustees were appointed by the industry to manage and control the funds.

SAWCIT would then fund the South African Grain Laboratory and South African Grain Information Service.

“SAWCIT is committed to research [such as] the mitigation of the effects of climate change and conservation agriculture, and will support new farmers on the way to becoming fully fledged commercial producers,” Grain SA CEO Jannie de Villiers said. – Annelie Coleman