GM-Maize-Report

Concentration in the South African maize value chainNode Major players Market share ofmajor playersInputs – seeds Monsanto Pioneer Hi-Bred (DuPont) 65%(registrations) 64Inputs – fertiliser SASOL Omnia Yara 86%aStorage (all maize) Senwes Afgri NWK 74%Trading (all maize) Cargill, Louis Dreyfus 70%Milling (white maize) Tiger Brands, Premier Food, Pioneer Food 60%Retail (all food)a) Based on figures from 2008.Shoprite/Checkers, Pick n Pay, Spar, Woolworths,Massmart (Wallmart)60% 65(a decision eventually overturned by theCompetition Appeals Court in 2012). 63The producer / Farm Gate priceThe farm gate (or producer) price is the pricethe farmer receives for a set quantity of grain(expressed as a price per ton in the commercialmaize market). It is derived from the SouthAfrican Futures Exchange (SAFEX) spot (daily)price lagged by four months, minus the costof transport to and storage at a grain silo. Asa rule of thumb, it takes four months for themaize purchased by a trader or miller on anygiven day to end up on the retail shelf, hencethe producer price is based on a four-montholdprice.The National Agricultural Marketing Council(NAMC) calculates the real farm valueshare of super and special maize meal in itsquarterly food price monitor. As of July 2013,approximately 60% of the cost of super maizemeal accrued to the farmer, a decline of 8.71%from July 2012 (when white maize prices were10.88% higher). In early 2010, after a huge maizesurplus was produced in South Africa, the farmvalue share of super maize meal fell to around30%, not breaching 50% until early 2012. Theshare maize farmers receive of maize meal isgenerally much higher than the share receivedby wheat farmers, as there is another segmentin the wheat value chain (baking) for profits tobe shared around. However, the real farm valueshare for super maize meal is also much morevolatile (as is the farm to retail price spread,which will be expanded upon later). 66The real farm share does not take intoaccount production costs, which have beenMaize seed variety ownership in South AfricaYellowconventionalTotalregisteredvarietiesMonsantoPioneerHi-Bred(DuPont)Klein Karoo(ZederInvestments)Link Seed(Vilmorin)Other% ownedbyMonsanto/ Pioneer134 8 68 36 5 49.2Yellow GM 119 17 78 14 0 10 79.8Whiteconventional146 9 69 20 5 43 53.4White GM 92 16 63 7 5 0 85.9Total 491 50 177 77 15 81 64.7Source: DAFF South African plant variety list, seed crops – March 2013GM Maize: Lessons for Africa 17