MPO objects against change in maize tariff

The MPO objected against an application by Grain SA for an increase in the Dollar reference price used to determine the SACU maize import tariff in terms of the existing variable tariff formula. The International Trade Administration Commission (ITAC) is in the process of conducting a preliminary investigation into the application.

The MPO based its objection on the fact that the requested changes to the structure of the variable tariff formula would result in the cost of imported maize increasing by about R1 000 per ton. Maize is a major feed component of dairy farmers and the requested amendment would result in a significant increase in the feed cost of dairy farmers who are currently experiencing a cost squeeze due to low producer prices, rising input costs and severe drought conditions in certain areas. In addition, the worst drought in 20 years has already resulted in sharp increases in maize prices and significant projected shortages on the local market which will have to be supplemented by imports.