Legislation Regulating Marketing

Marketing of Agricultural Products Act, no. 47 of 1996

The introduction of this act has changed agricultural marketing policy and practice dramatically to ensure that it occurs in a free environment.

The deregulation process was aimed at ensuring that farmers and agribusinesses position themselves as players in the globally competitive environment. The deregulation process entailed closing agricultural marketing boards, phasing out import-and export-control measures, eliminating subsidies and introducing tariffs to protect the domestic agricultural industry value chains against unfair international competition.

The Directorate: Marketing in the Department of Agriculture works closely with the National Agricultural Marketing Council (NAMC) on agricultural marketing matters. The Directorate develops, promotes and facilitates the implementation of programmes and measures aimed at supporting equitable access to competitive and profitable agricultural markets on a sustainable basis. This broad mandate is achieved through:

• administering market-access measures in the form of trade (imports and exports)
• facilitating fair, open, efficient and competitive domestic markets
• developing policies and strategies, and facilitating the implementation of programmes and measures to facilitate equitable access to mainstream the domestic market
• liaising with other government departments and relevant parties to enhance the efficiency of the agricultural marketing value chains. The directorate comprises three sub-directorates, namely marketing administration, commodity marketing, and marketing development and support.

National Agricultural Marketing Council

The National Agricultural Marketing Council (NAMC) was established by the Marketing of Agricultural Products Act, 1996 (Act 47 of 1996). The Council provides the Minister of Agriculture and Land Affairs with strategic advice on all agricultural marketing issues to improve market efficiency and access for all participants, optimise export earnings and improve the viability of the agricultural sector. Between 2004/05 and 2007/08, the NAMC transformed itself from an organisation whose functions were limited to investigating and advising on statutory measures to be the main agency for agricultural marketing.

The council has developed an economic and market research programme that tracks economic trends and provides market information that is aimed at improving South Africa’s position in future global agricultural markets.

The NAMC’s food price monitoring initiative is a continuation of the food price monitoring project, which assists the government in understanding the impact of high food price inflation on the poor. The NAMC, in collaboration with the Maize Trust, the Oilseed Trust and the Winter Cereals Trust, developed the summer grains marketing scheme to support 5 000 growers from black farming communities over five years.

The farmer wishing to align his production planning with the ever-changing and increasingly demanding requirements of the major European markets therefore may expect EurepGAP standards to suffice, only to find that this standard does not include all of the items or aspects that a particular market of his choice may require, or to the desired level.

Linked to these gap requirements would be applicable policy statements, procedures, recordkeeping systems and risk assessments. The following are examples of the kind of issues that policy statements should cover:

• conservation and the enhancement of the environment
• judicious use of natural resources
• pollution prevention
• disposal and recycling of waste
• judicious use of agrochemicals
• judicious use of non-organic fertilisers
• protection of health and safety of workers visitors and clients
• management of workers according to ethical trading principles

Click here to view an explanation of the human capital employment philosophy.