Report by the General Manager
The South African Seed Industry has shown consistent growth since 2000. During the period under review the Industry displayed a turnover in excess of R1,3 milliard ( US$168 million). This was made up primarily by winter and summer grain crops (73%), vegetables (16%), pasture and forage species (9%), with flowers accounting for less than 2%. This growth was also reflected in the 8% growth in SANSOR membership during the period under review. The contribution of major seed companies towards research and development increased to approximately 10% during this period and SANSOR welcomed its first member from emerging agriculture during February 2003.

The strengthening of the local currency had a positive effect on the vegetable seed industry and the SANSOR Horticulture Division subsequently reported a favourable effect on seed prices for vegetable producers. In the case of agronomy crops, however, most seed contracts were concluded during a time when grain prices were extremely high and this factor would inevitably lead to a significant increase in seed price of the major agronomy crops during the forthcoming season.

The World Summit on Sustainable Development, which was held in Johannesburg during August 2002, was probably the most important international event to report on from a political point of view.

An important linkage for the seed industry was that the understanding of sustainable development was broadened and strengthened as a result of the Summit, particularly the important linkages between poverty, the environment and the use of natural resources.

A further important economic consideration was that the New Partnership for Africa’s Development (NEPAD) was identified for special attention and support by the international community to better focus efforts for addressing the development needs of Africa.

The views of civil society were given prominence at the Summit in recognition of the key role of civil society in implementing the outcome and in promoting partnership initiatives. Over 8,000 civil society participants attended the Summit, reinforced by parallel events which included major groups, such as, NGOs, women, indigenous people, youth, farmers, trade unions, business leaders, the scientific and technological community and local authorities as well as Chief Justices from various countries.

The concept of partnerships between governments, business and civil society was given a large boost by the Summit and the Plan of Implementation. Over 220 partnerships (with $235 million in resources) were identified in advance of the Summit and around 60 partnerships were announced during the Summit by a range of countries.

SANSOR has recommended that the South African government should sign and ratify the newly introduced Treaty on Plant Genetic Resources for Food & Agriculture. This, however, had not been finalized during the period under review. A total of 78 countries had signed the relevant Treaty by the close of the initial deadline on 30 November 2002, while a total of 15 countries ratified, accepted, approved or acceded to the Treaty by 28 February 2003. The Treaty would become effective on the 90th day after ratification by 40 countries of which at least 20 must be FAO members.

It was once again important to note that ratification would be a prerequisite to form part of the Governing Body and to subsequently have a say in the future destiny of the Treaty. As an international legal instrument the Treaty is in general a balanced compromise between the needs of industrial agriculture and the aspirations of traditional agricultural practices and there should be no reason why ratification would not be concluded by the South African government in due course.

The latest update from the United Nations Environmental Programme (UNEP) indicated that 103 countries had already signed and/or ratified the Cartagena Protocol on Biosafety. This included 28 countries from Africa and adjoining island states. This Protocol would also enter into force on the 90th day after the date of deposit of the 50th instrument of ratification, acceptance, approval or accession by states. At the time of compilation of this report 44 states had already deposited such instrument and these included 11 from Africa. Only six more ratification were, therefore, needed before the Protocol would come into force. South Africa, once again, had not yet ratified.

Other significant developments on the international front included the approval by the Organisation for Economic Co-operation & Development (OECD) of the notification given by South Africa for future participation in the OECD experiment for seed sampling (including fastening and labelling) and seed analysis as from 1 May 2002. The aim of this experiment was to incorporate a provision for the accreditation of non-governmental seed samplers and -analysts into the Seed Schemes of the OECD.

The success of this experiment would be crucial for the broadening of international accreditation of organisations like SANSOR for quality assurance in international seed trade.

During the past congress of the International Seed Trade Federation (ISF) a regional approach was encouraged in an effort to resolve certain tricky issues. SANSOR subsequently found itself bogged down in an extremely anti-U.S. approach within the Africa group, which was not necessarily in the best interest of our local seed industry. This was, once again, nothing new in international, agricultural trade politics and a popular means for certain world economic powers to manipulate the achievement of reasonable consensus. Apart from this incident, there were also indications that economic powers outside the African region were using the African Seed Trade Association (AFSTA) to promote their own interests at the expense of intra-regional market development.

On the regional front the harmonization of legislation was once again the key issue for the private seed trade and two action plans were proposed to the Southern Africa Development Community’s (SADC) Seed Security Network (SSSN) for further exploration. The first action plan would include the development of a protocol for regional variety testing and registration, a seed certification and quality system to integrate international standards for certification and the harmonization of phytosanitary standards and minimum requirements to move seed across borders.

The second action plan, which of course was of major concern to the South African seed industry, would deal with the need for more regional integration on the discussion of intellectual property rights (IPR) issues through SADC. In this regard, the possible recommendation by SADC to member countries to introduce the African Model Law on Intellectual Property Rights had been opposed by SANSOR in its recommendation to government.

Still on the regional front, the African Seed Trade Association (AFSTA) reported a membership of 57 during the period under review of whom 10 were from outside Africa. Its acceptability as spokes body for the African Seed Industry was also evident by way of invitations to participate in meetings of several other international and regional organizations during this period.

The harmonization of seed legislation in the region was also one of the most contentious issues dealt with by AFSTA during the period under review. Progress reports from several regions were discussed in this regard. East Africa displayed most progress to date, which included the reduction of phytosanitary requirements from 33 to three quarantine diseases. Similar initiatives, supported by the Food & Agriculture Organization (FAO), were underway in West and, as already mentioned, Southern Africa.

The national scenario included several issues during the period under review. These included, amongst others, extensive negotiations with the National Association of Maize Millers (NAMM) on the alleged undesirability for milling purposes of certain white maize cultivated varieties and/or hybrids. Although reasonable consensus had been reached in this regard, constructive negotiations would be continued in the forthcoming period.

The contract with Agri Inspec to investigate unethical conduct in the seed trade proved to be beneficial in more ways than one. During the period under review eight major cases were investigated, of which three were registered as criminal cases.

A handy spin-off was the deletion of unnecessary or obsolete varieties from the national variety  list, as well as the cancellation of outdated plant breeders’ rights due to the funding mechanism implemented. This initiative significantly reduced the workload for statutory Variety Control, as well as facilitated the process to get new varieties listed and/or registered for plant breeders’ rights. SANSOR once again assisted the Directorate of Plant Health & Quality in a national survey on the possible spread of the quarantine fungus, Karnal Bunt, on wheat seed. Although all seed for propagation purposes tested negative for spore contamination during initial assessments, the Directorate reported indications of contamination in a processing facility, where both wheat grain and seed had been processed. Further assessments had been initiated, but results were not available at the time of this report.

Other issues handled included the investigation of revised minimum requirements for certain subtropical grass species in co-operation with the Registrar of Plant Improvement; the initiation of discussions with senior management of the Agricultural Research Council (ARC) on the revision of the current Memorandum of Understanding with the ARC on the collection of royalties on their behalf; the development of a new computerized database network for seed certification; the successful application of Chapter membership of the International Society of Seed Technologists (ISST); and the development of a new initiative for the recruitment of potential seed experts from the emerging agricultural sector.

During the period under review, SANSOR membership peaked at 107 members comprising 66 full members, 32 associate members, seven affiliate members and two honorary members.

The Secretariat maintained the crucial approach that SANSOR membership was the lifeline of the organisation and all functions and activities should remain focused on common needs and interests of members. The Secretariat would further continue to strive for the strengthening of relationships with Government, the improvement of service delivery to its primary client, the farmers and the establishment of functional networks with similar or related organisations, both nationally and internationally.

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