Levies

In South Africa, the Marketing of Agricultural Products Act (Act 47 of1996) provides for

the application of a statutory levy. This gives substance to a levy/royalty within a legal

framework and has the following benefits:

• it is a self regulating system

• all grain of a specific crop is levied at the first point of sale

• all growers pay the same levy

• farmers and breeders share the risk

• the royalty income is directly linked to the variety’s level of performance

• should farmer income be low due to drought etc., levies are also lower

SACTA has the support of farmers and it collects the levy from them. The agency is a

separate body and a legitimate central institution which administers the breeding levies for

all self-pollinated grain and oilseed crops. SACTA is aligned with all role industry players

who are knowledgeable regarding breeding and technology and the competitiveness of

our farmers.

The SACTA breeding & technology system will compensate seed breeding companies

according to their market share. In the past, breeding was funded per project and not

necessarily on performance. The new system aims to rectify the vicious circle caused by

farm-saved seed and is in line with the new Plant Breeders Bill.

SACTA is not just another commodity trust. It is not linked to a specific commodity and

addresses ONLY the need to improve the breeding of self-pollinated grain and oilseed

crops. SACTA believes that all cultivars should offer a healthy balance between yield

and quality, so that all parties in the value chain benefit. The system is driven by the free

market, dictated by demand.

 

 

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