USDA/FAS GAIN Report Number: SF5031

Republic of South Africa
Planting Seeds
Annual
2005

Approved by: Rachel Bickford, U.S. Embassy
Prepared by: Patricia Mabiletsa

Report Highlights:

In 2004/5, South Africa's hybrid seed production for major field crops (maize, sorghum, groundnuts, sunflower and soybeans) is expected to total 68,150 MT. At an expected local demand of 34,250 MT, a surplus of about 33,900 MT for hybrid field crop seed is possible in 2004/5. A surplus expected is mainly for hybrid maize (25,000 MT), sorghum (750 MT), Soybeans (6,650 MT) and sunflower (1,500 MT) seeds. Experts are predicting shortages of groundnuts because of drought in some areas.  SANSOR is encouraging the government to rephrase the quality regulations for imported grains, and to increase the kernel size, thereby eliminating undesirable small kernels.

Table of Contents

Executive Summary
AGRONOMY
Production
Seed Certification
Consumption
Trade
IMPORT PROCEDURE FOR PLANTING SEEDS TO SOUTH AFRICA

Executive Summary

In 2004/5, South Africa's hybrid seed production for major field crops crops (maize, sorghum, groundnuts, sunflower and soybeans) is expected to total 68,150 MT. Seed production is expected to reach about 41,700 MT for hybrid maize, 6,000 MT for groundnuts, 1,450 MT for sorghum, 11,000 MT for soybeans, and 8,000 MT for sunflower.  At an expected local demand of 34,250 MT, a surplus of hybrid field crop seeds of about 33,900 MT is possible. The expected surplus is mainly for hybrid maize (25,000 MT), sorghum (750 MT), Soybeans (6,650 MT) and sunflower (1,500 MT) seeds. Experts are predicting shortages of groundnuts because of drought in some areas.

In 2004/5, total local consumption is expected at about 74, 500 MT for all agronomic seed crop and 16,080 MT for all forage crops. 

South Africa’s total exports are expected to reach about 19,800 MT for all agronomic seeds and about 775 MT for all forage crops.

Average Monthly Exchange Rate used = 1 U.S. $ = R6.70 (July)

AGRONOMY

South Africa’s 2004/5 seed crop is expected to total 41,700 MT for maize, sorghum, soybeans, groundnuts and sunflower because of improved weather conditions. 

The seed industry required the seed companies to release detailed seed sale statistics to clients and stakeholders. This move is expected to bring more accuracy to the industry seed data bank.

In 2004, the South African seed growers suffered from drought in all summer and winter rainfall regions, low commodity prices due to the strengthening of the Rand compared to the Dollar, and high levels of carry-over stocks.  In reaction to the poor growing season, SANSOR encouraged the government to rephrase the quality regulations for imported grains, by to increasing the kernel size thereby eliminating the use of undesirable small-sized kernels.  In the same year, the industry published a list of undesired white maize seeds varieties because the millers were dissatisfied about working with small seed varieties.  However, Grain South Africa suggested that the matter should be handled with caution and to remove only seriously low quality varieties from the milling industry.

HORTICULTURE

Note: Estimated horticultural statistics is still not available for 2004/5. The report will be updated as soon as it becomes available.

FORAGES

Local demand for lucerne seed is expected to reach about 490 MT in 2004/5. The Lucerne Seed Organization adopted a new name, the National Lucerne Organization (NLO), following the introduction of statutory measures that also enables the NLO to collect information on seed sales and register all producers of hay and seed. The national trials for Lucerne seed will be conducted at Elsenburg, Upington, and Hartswater.

Production

Planting Season: Start 1^st March – End 28^th February next year.

Source: SANSOR (In 2004, US $1= R6.42)

Plant Health Regulations

No updates on this issue. The report will be updated as soon as information becomes available.

Seed Certification

No updates on this issue. The report will be updated as soon as information becomes available.

Intellectual Property Rights (Plant Variety Protection/Plant Patents)

No updates on this issue. The report will be updated as soon as information becomes available.

Variety Approval

No updates on the issue. The report will be updated as soon as information becomes available.

Genetically Modified Organisms (GMO)/biotechnology

SANSOR reports that no consensus had been reached after four years of deliberation on the labeling of agricultural products and processed foods derived from genetically modified organisms under the Codex Allimentarius. As a result, local initiative is carried out under the auspices of Agricultural Product Standards and Foodstuffs, Cosmetics, & Disinfectants legislation led by the Food Labelling Advisory Group (FLAG). 

South African Government Notice, No. R.366, released a draft proposal of Regulations under the Foodstuffs, Cosmetics & Disinfectants Act, 1972 (Act No. 54 of 1972) on the labeling of agricultural products and foodstuffs derived from genetically modified organisms since 2001. These regulations provided for compulsory labeling in cases of significant differences encountered on the GMO-derived products with regard to composition, nutritional value, mode of storage, mode of preparation, and mode of cooking.  Other specific regulations stipulated were for allegens causing hypersensitivity and genes of human or animal origin.

Voluntary labeling is allowed for negative claims, for non- GM,which is subject to verification by an independent body, identity preservation and a tolerance level of 1%. Positive claims for GM products are also voluntary and must be substantiated by an independent body. 

SANSOR reports that in mid-1990, South Africa had about 110 biotechnology groups in research and development involving 160 projects, and over 200 permits for crop field trials were granted for Lucerne, cotton, maize, eucalyptus, apple, canola, soybean, potato, sugarbeet, sugarcane, and arabidopsis. In 1997, the first permit for conditional commercial release was granted for Bt insect resistant cotton.  In 1998, BT insect resistant yellow maize was released, followed by Bt insect resistant white maize and herbicide tolerant cotton.

 Consumption

Agronomic seeds

Source: SANSOR

In 2004/5, total local consumption for all agronomic seed crop is expected at about 74, 500 MT.

Forage seeds

Source: SANSOR

South Africa’s total local consumption for all forage seed crop is expected at about 16,080 MT in 2004/5. 

Trade

South Africa’s seed industry is currently dealing with SPS issues from Brazil, especially for seed borne pest risks for beetroot. In February 2004, SANSOR was notified that the Brazilian cabinet rejected their first draft of an amended plant risk analysis protocol.

IMPORTS: PLANTING SEEDS

Source: WTA

South African seeds imports were dominated by Rye grass, followed by other seeds of forage plants, vegetables and Lucerne in 2004.

The United States is one of the main South African seed suppliers for Rye grass, other forage plants, vegetables, Lucerne, other seeds, Fescue grass, Clover, herbaceous plants, Kentucky blue grass, sugar Beet, and non-sugar Beet.  In 2004, South Africa’s seed imports from the U.S. reached about 170 MT, and amounted to US $ 6.9 million. This is an increase of 19% in volume and US$ 2 million in value, from 2003.

Australia followed, taking over market share from the Netherlands in 2004. Australian seed imports in South Africa totaled at 913 MT and valued at US$ 2.856 million in 2004, mainly for seeds of other forage plants, Lucerne, Other seeds, Clover, Vegetables and Fescue grass. This is an increase of 7% in volume and 20% in value from 2003.

The Netherlands ranked 3^rd within South Africa’s seed import markets in 2004, despite import volume increases of 69% from 2003, mainly for seeds for Rye grass, Vegetables, Other seeds, Herbaceous plants, other forages, and Fescue grass. Imports amounted to US$ 5.3 million, an increase of 33% from 2003. 

Exchange Rate Used: For 2003: US$1 = R7.56; For 2004: US$1 = R6.42

EXPORTS

Source: WTA

South Africa exports seeds mainly to the neighboring African states, namely: Malawi, Angola, Zimbabwe, Zambia, Mozambique, with a fair amount reaching Saudi Arabia, U.S., Japan, U. A. Emirates, Canada and Netherlands.  The major seed exports are Timothy grass, Herbaceous Plants, Rye grass, Lucerne, vegetables, other forage plants, beet seed-not sugar, and others.

In 2004, The U.S. received about 190 MT of South Africa’s seeds for other plant species, vegetables, Lucerne, Rye grass and Timothy grass, which is a 19% increase from 2003.

Tariff Table
(No changes from last year)

Source: South African Customs Tariffs Book

Note: The seed HTS is 1209, the rest are grains and oilseeds (for consumption) included herein for your interest.

IMPORT PROCEDURE FOR PLANTING SEEDS TO SOUTH AFRICA

The hybrid must be listed in the National variety list.

The importer must adhere to the pest control regulations according to the Agricultural Pest Act (Act no. 36 of 1983), and import conditions as published in the Government Gazette of South Africa.

The importer should apply for the import permit, at a cost of about US$ 10.

The importer should apply for the phytosanitary certificate, and the application should be accompanied by the import permit or official import requirements of the importing country.

Importing for commercial purposes, the importer or the local source should supply the National Plant Protection Organization of South Africa with extensive information on the sources for the standard genes. The pest risk analysis should be made with possible pre-import inspection and registration of open/outside quarantine facilities.

The consignment should be delivered within 14 days of the final inspection and should be accompanied by a phytosanitary certificate.

For further information about the import control regulations and to access the on-line applications, please visit the National Plant Protection Organization of South African division within the National Department of Agricultural. Their website is: http://www.nda.agric.za or you can access it through http://www.gov.za