Contrary to the previous period under review, the local currency displayed a strong recovery against the US Dollar. This strong recovery occurred in the latter part of the year when most of the agronomy seed businesses usually sell their products. This parity effect caused a decline in grain prices on the one hand. On the other hand, however, significant pressure was put on the production of seed. Seed contracts were concluded during the time when the grain prices were still extremely high, which inevitably would lead to a high ‘cost of goods’ for seed. This would definitely influence the price of seed in the 2003 selling season.

The genetic modification of agronomy crops was again placed under the magnifying glass during 2002. A special meeting was held and various stakeholders were invited to raise issues and concerns concerning the biotechnology industry in South Africa. Grain South Africa also convened a meeting concerning progress in biotechnology in South Africa to which SANSOR was invited. The main concern raised by stakeholders at both these meetings was the fact that the European Union had a moratorium on genetically modified crops and that this would negatively influence the export markets for the South African grain producers. The main issues discussed were the implementation of an identity preservation (IP) system, the need for a quick and reliable testing method for the presence of genetic modification by means of modern biotechnology in grain, as well as the labelling of foods derived from genetically modified organisms. From these meetings the potential of a Forum for an open exchange of views and concerns between all intended stakeholders was suggested. It was also suggested that the lead should be taken by SANSOR in this regard.

The debate concerning the release of a list of undesirable white maize cultivars continued in 2002. Two meetings were held between the National Association of Maize Millers (NAMM) and a SANSOR delegation, which lead to a much more positive relationship between these two role players. Several questions were raised by SANSOR concerning the methods used by the Agricultural Research Council (ARC) for the evaluation of milling quality. The ARC undertook to consider these concerns. The relevant issue was also discussed with the Grain South Africa input-working group.

The availability of information concerning top selling cultivated varieties and/or hybrids was once again a contentious issue. Several requests for this information had been made by Grain South Africa, as well as the National Department of Agriculture. A decision was taken that the Secretariat should once again engage in an effort to obtain the required information from all the role-players on a classified, confidential basis.

Table 1 reflects the updated market statistics for the year 2002 of the most important agronomy crops under the auspices of the SANSOR Agronomy Division.