Wheat import tariff nearly halves in March
By Andries Mahlangu - Apr 9th, 14:30
SA’s wheat import tariff has declined a hefty 45% to R394.85 per tonne, the Agricultural Business Chamber (Agbiz) said on Monday.
This new duty was calculated in mid-February, following a surge in international wheat prices, but was only published in the government gazette to make it official on Friday evening, the chamber said in a statement.
The drop in wheat tariffs helps relieve cost pressures for millers such as Pioneer Foods, which counts Sasko among its suite of brands.
SA is projected to import about 1.93-million tonnes of wheat in the 2017-18 season, which is more than double the 934,765 tonnes imported in 2016-17 season.
The adjustments in the wheat import tariff are satisfied when the international wheat price deviates from the base price by more than $10 per tonne for three consecutive weeks.
The international wheat prices consistently traded above $235 per tonne in three weeks February 13, making a deviation of $10 per tonne above the base price of then $218 per tonne.
Drier weather conditions in parts of the US had supported higher international wheat prices over the period.
"It is also worth noting that the wheat import tariff has triggered again on March 20 to R293.74 per tonne, down by 25% from the current rate of R394.85," agricultural economist at Agbiz Wandile Sihlobo said.
"The newly calculated rates will only be applicable after publication in the government gazette. The timeframe for this process is unclear. The previous adjustments took more than three weeks."
© BusinessLIVE MMXVIII
Great wine starts with good geography
13/07/2018 - 11:12
In an attempt to define the elusive concept of terroir, Wine Folly’s Madeline Blasberg narrows it down to connecting five dots.
SA factories do better than expected in May
12/07/2018 - 13:47
SA’s manufacturing output grew 2.3% in May from the same month in 2017, contradicting a drop predicted by the Absa purchasing managers index (PMI).
Unlocking export markets for SA’s vegetable industry
12/07/2018 - 07:59
Global opportunities are opening up for South African vegetable producers and exporters with the emergence of new markets in some Asian and African countries. This is due to an increase in middle-income earners, says Ezra Steenkamp, deputy director of international trade research at the Department of Agriculture, Forestry and Fisheries.
Trade wars turn up the heat on local consumers
11/07/2018 - 09:24
South African consumers face more pain from potential global trade wars and fuel increases, global payments company Mastercard said in a statement.
Technology offers retailers respite in shrinking economy
06/07/2018 - 14:18
As business confidence in South Africa plummeted six points in June on the back of disappointing gross domestic product figures for the first quarter, South African retailers battle to achieve profitability, compounded by a PwC survey that names South Africa as the country with the highest rate of economic crime in the world.