'n Strategie vir die oliesadebedryf

Abstract

A STRATEGY FOR THE OILSEEDS INDUSTRY PURPOSE The emphasis in this study is on the primary sector of the oilseeds industry, hence from the production to the marketing of the seeds. The Agricultural industry in South Africa has been highly protected since the great depression of the Thirties mainly in the form of State intervention in the pricing process. Since the Goverment's adoption of the Whitepaper on Agricultural policy in 1986, mainly favouring Privatisation and Deregulation in the Agricultural sector, the external environment has became more hostile to controlled marketing and other regulatory measures. This, together with politic al changes and current economic turmoil has ' created great uncertainty amongst oilseed producers with regard to the direction in which their representative organisation should lead them. This strategic plan endeavours to identify the threats and opportunities which arise out of this rapidly changing and dynamic environment. In addition with this an internal analysis of the National Oilseeds Producers Organisation has been undertaken to identify those specific strongpoints and weaknesses that should either be avoided or exploited, respectively. Four areas of strategic importance are addressed in this analysis, namely; * improvement of competitiveness, * equitable protection from foreign competition of the local producers, * stabilizing supply and demand, * increase the producers part of the consumers rand,

It -is critical that the implementation of a strategy should successfully address these issues, in order to forefull the mission of the primary oilseeds industry, namely; * the profitable production of high quality protein an oil, * to serve current marketsegments by means of marketing aids and -structures, * to develop new markets (shortened). After considering these and the results of research on producers and buyers perceptions in these regard the author c?me to the conclusion that regulation in the oilseeds industry has serviced its purpose well, namely the stabilizing of prices despite of the fluctuating supply of oilseeds. However, since the implementation of tariff based import control measures, the bargaining power of producers has dropped considerably mainly because of greater exposure to foreign competition, which is indirectly and directly subsidised by their country's of origin. These and other factors confirmed the need for the South African producer to become more competitive, especially because of the more hostile environment that producers are anticipated to face in the near future. It is concluded that this competitiveness can be achieved by lifting the strict control measures of the one channel marketing scheme and by phased exposure to market forces. Because of the unique characteristics of agricultural production and -marketing however, where many relatively small producers have to bargain with few big buyers there will always be a need for collective organised action from the producer's side. The introduction of a more deregulated marketing system thus has to have certain measures to protect and stabilize the industry from the volatility of production factors. According to the author the introduction of a floor price system within the framework of the Marketing Act will be the policy

option most consistent with the strategy concluded by the study, to be in the best interest of the oilseed industry. It is recommended that this scheme should be administered by an private organisation formed by the merger of the Oilseeds board and NOPO.