Review of the report of the Committee of Enquiry into alternative marketing arrangements for maize

Problems in the maize industry induced the Minister of Agriculture to appoint a Committee of Enquiry into maize marketing arrangements. Maize and winter grains are marketed under one‐channel fixed price schemes operated by the Maize and Wheat Boards, which are statutory monopolies. Floor prices are used in sorghum marketing. The Committee recommends retention of one‐channel marketing for all grains, operating under a single selling organization. It also recommends the creation of a grain floor where buyers can negotiate with the sole selling agency, which will also control exports and imports. The proposals amount to further monopolization in grain marketing. It is argued that these proposals will induce greater inefficiency in the grain sector; the important problems will not be solved. The Committee gives attention to neither food problems of the poorer part of the population nor production problems nor cross‐subsidiation. Long— term market effects are not sufficiently addressed; nor are international developments. Scant attention is given to problems facing self‐governing and TBVC states. The proposals run counter to prevailing thought favouring deregulation, demonopolization, privatization and freer trade. The Committee report represents a lost opportunity.

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Professor of Agricultural Economics, University of Pretoria.