WORLD TRADE G/AG/N/ZAF/5
19November 1996
ORGANIZATION(96-4915)
Original: English Committee onAgriculture
NOTIFICATION
Theattached notification concerning domestic support commitments for1995(Table DS:1 and
therelevant Supporting Tables) wasreceived from thedelegation oftheSouth Africa on
14November 1996.G/AG/N/ZAF/5
Page2Table DS:1
DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1995
Current Total Aggregate Measurement ofSupport
Total AMS commitment levelforperiod
inquestionCurrency Current Total AMS
(from Section IofPartIVofthe
Schedule)(from Section IofPartIVofthe
Schedule)(from attached Supporting Tables)
1 2 3
2435,30 Million Rand 1640,33G/AG/N/ZAF/5
Page3Supporting Table DS:1
DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1995
Measures exempt fromthereduction commitment --"Green Box"
Measure type Name anddescription ofmeasure withreference tocriteria inAnnex 2 Monetary value
ofmeasure
million RandData sources
1 2 3 4
1.GENERAL SERVICES (i)Erection ofwaterworks (Infrastructure):
Toconstruct approved waterworks toenable producers toutilise landmore effectively.10,000 Department of
Agriculture
(ii)Resource conservation andenvironmental management: Topromote sustainable utilisation
ofthenatural agricultural resources, viz,thesoil,water resources andvegetation andprotect
theenvironment.89,921
(iii)Veterinary Services:
Topromote animal production, animal health andthequality oftheproducts ofanimals
through thedetermination ofnorms andstandards aswellasco-ordination andrendering of
services.49,367
(iv)Phytosanitary Services andQuality Control:
Topromote cropproduction andquality ofplant products through thedetermination ofnorms
andstandards aswellastheco-ordination andrendering ofservices.29,260
(v)Agro-economic services:
Topromote theoptimum utilisation ofproduction factors, regulate andco-ordinate the
marketing ofandmarketing policy i.r.oagricultural products, provide information andadvice
onagricultural economic trends andregulate theco-operative movement.17,431
(vi)Auxiliary andassociated services:
Torender auxiliary services associated withdistribution ofinformation, liaison between
agricultural industries, library services andcontract research byinstitutions, in-service
training, international liaison, government transport andcontribution tosoilconservation
activities.41,784
(vii)Contribution toAgricultural Research Council:
Contribution towards theexpenditure, training, depreciation, salaries andmaintenance ofthe
Agricultural Research Council withtheoverall purpose ofagricultural research.245,083G/AG/N/ZAF/5
Page4Measure type Name anddescription ofmeasure withreference tocriteria inAnnex 2 Monetary value
ofmeasure
million RandData sources
1 2 3 4
(viii) Administration:
Toconduct theoverall management oftheDepartment ofAgriculture andrender specialised
administrative services (Includes policy formulation functions, management andadvisory
services, personnel andfinancial services andlegal services).53,515
2.PAYMENT FOR RELIEF FROM
NATURAL DISASTERS(i)Subsidies forFlood disaster:
Toenable producers toreturn totheposition theyheldprior toflood damage.0,106 Department of
Agriculture
(ii)Disaster Drought Aid:
Disaster aidtofarmer co-operatives andfarmers indisaster drought toprevent thecollapse of
therural infrastructure asaresult oflowincome andbankruptcies andtoenable producers to
continue withproduction.199,500
(iii)Stock feedpurchases incentives:
Toenable producers tomaintain anuclear herdduring anextended drought.58,861
(iv)Transport oflivestock andfodder:
Toenable producers indrought stricken areas tocontinue tofeedtheir livestock.1,317
(v)Transport ofwater:
Aidtocattle andhuman indrought stricken areas.0,057
(vi)Water quota subsidies:
Toenable producers onirrigation schemes tosurvive during drought conditions toenable
them tokeep their farm labourers andtoprevent collapse oftheinfrastructure oftheregion.4,676
(vii)Firedamage subsidy:
Compensation forlosses withdisaster firedamages.1,768
(viii) Subsidy fortheprevention ofsequestration:
Toprevent thesequestration, asfaraspossible, offarmers withthepossible ability to
recover, thereby retaining them foragriculture.0,066
(ix)Co-ordinated refunding ofunmanageable debt(subsidy):
Ifpossible, toplace ontheroadtofinancial recovery allfarmers whofollowed sound and
correct farming andfinancial practices, butwho, asaresult ofacombination offactors
beyond their control, such asdrought andeconomic down turns, have incurred toomuch debt
orwhoexperienced acontinuing deteriorating debtsituation. Thisistobedone withtheaid
oftheco-ordinated action ofallfinanciers.1,175
(x)Boreholes:
Sinking ofboreholes intimes ofdrought forstock.0,220G/AG/N/ZAF/5
Page5Measure type Name anddescription ofmeasure withreference tocriteria inAnnex 2 Monetary value
ofmeasure
million RandData sources
1 2 3 4
(xi)Interim Natural Grazing Recovery Scheme:
Thisisainterim measure untilanatural grazing recovery scheme comes intoeffect toassist
livestock farmers who, inspecific areas arecompelled toallow their natural grazing thathas
been damaged byprolonged drought, thenecessary timetorecover.8.921
3.STRUCTURAL ADJUSTMENT:
RESOURCE PROGRAMMES(i)Conversion ofmarginal lands:
Toenable producers toreduce marginal ploughed lands where cropproduction isrisky andto
convert itintomore suitable pastures (although lower income potential) forthespecific
climate (normally drier areas).13,519 Department of
Agriculture
4.ENVIROMENTAL PROGRAMMES (i)Soilconservation works:
Thefinancing ofessential soilconservation works toimprove andprotect thesoil.10,000 Department of
Agriculture
5.REGIONAL ASSISTANCE
PROGRAMMES(i)Development aid:
Toassist producers inundeveloped anddisadvantaged areas withdevelopment aidto
encourage agricultural andrural development asanintegral partofthedevelopment
programme.1899,372 Department of
Agriculture
6.OTHER (i)Farm labourer housing:
Subsidising oftheconstruction feesoffarm labourers ’housing toimprove theliving
conditions offarm labourers (Aidincludes infra-structural services such aswater provision
andelectricity forhouseholds)20,273 Department of
Agriculture
(ii)Farm labourer housing:
Interest subsidy onloans forbuilding farm labourer housing forimproving theconditions of
farm labourers.0,522
(iii)AidtoFarmer Co-operatives:
AidtoFarmer Co-operatives infinancial difficulty caused bydrought andeconomic down
turns. Thepurpose fortheaidistoretain theinfrastructure intherural economy in
designated areas.10,000
(iv)Subsidies foraspecial assistance scheme forbeekeepers:
Tocompensate beekeepers whosuffered losses asaresult oftheinfiltration ofCape intruder
bees, forexpenses incurred inthere-establishment ofbeecolonies.0,488
GRAND TOTAL 2767,202G/AG/N/ZAF/5
Page6Supporting Table DS:4 DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1995
Calculation oftheCurrent Total Aggregate Measurement ofSupport
Description ofbasic
products (including
non-product specific
AMS)Product-specific AMS
(from Supporting Tables
DS:5 toDS:7 below)
million RandProduct-specific equivalent measurements
ofsupport (from Supporting Table DS:8
below)
million RandCurrent Total AMS (aggregate)
million Rand
1 2 3 4
WHEAT 611,98 611,98
SUGAR 847,11 847,11
TOBACCO 115,86 115,86
MAIZE 100,48 deminimis
COTTON 4,20 4,20
TEA 61,18 61,18
Total Non-product-specific AMS (from Supporting tableDS:9 below) deminimis
TOTAL: Current Total AMS: 1640,33G/AG/N/ZAF/5
Page7Supporting Table DS:8 DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1995
Product-Specific Equivalent Measurements ofSupport
Description
ofbasic
productsCalendar /
marketing year
beginning ...Measure
type(s)Applied
administered
price
(Rand/ton)Production
eligible to
receive the
applied
administered
price
('000tons)Market
price
support
budgetary
outlaysEquivalent
measurement
ofsupport
(include
calculation
details)
million RandNon-exempt
direct
payments
million RandOther
product-
specific
supportAssociated
fees/levies
million RandTotal
monetary
value of
equivalent
commitment
million RandDatasources
1 2 3 4 5 6 7 8 9 10 11
(7+8+9-10)12
WHEAT
**SUGAR
TOBACCO
MAIZE
COTTON
TEA1November 1994
1April 1995
1April 1995
1April 1995
1April 1995
1April 1995Fixed price
Price support
Price support
Price support
Price support
Price support786,93
1943,00
16980,00
598,62
5542,86
12821,001840,0
1166,7
19,7
373,7
24,1
11,1677,62
847,11
115,86
83,59
4,20
61,1837,6265,63
0,00
0,00
20,73
0,00
0,00611,98
847,11
115,86
100,48
4,20
61,18Department of
Agriculture
"
"
"(deminimis )
"
"
Total Equivalent Measurements ofSupport: 1640,33
**Incalculating theAMS forsugar, quality differences havenotbeentaken intoaccount incomparing theadministered price (refined sugar) andtheexternal reference price inthebaseperiod (mainly raw
sugar).G/AG/N/ZAF/5
Page8Annex toSupporting Table DS:8
DOMESTIC SUPPORT: SOUTH AFRICA
REPORTING PERIOD: 1995
Product-specific Aggregate Measurements ofSupport: Equivalent Measurements ofSupport
Description
ofbasic
productsMarketing year
beginning....Measure
type(s)Applied
administered
priceExchange
rate1995Applied
administered
priceExternal
reference price
(From fixed
external
reference prices
inbaseyears)Exchange rate
BaseYearsExternal
reference
priceEligible
production*Factor
(Cane
growers
proportion)Market price
supportMarket price
supportComments
(Rand/ton) (Rand/US $) (US$/ton) (Rand /ton) (Rand /US$) (US$/ton) '000tons Million US$Million Rand
1 2 3 4 5 6 7 8 9 10 11 12 13 14
(4)/(5) (7)/(8) ((6-9)*10) ((6-9)*10)*5
*((11) for
sugar)*((11) for
Sugar)
WHEAT 1November 1994 Fixed price 786,93 3,6300 216,79 366,93 2,1973 115,33 1840,0 186,67 677,62
**SUGAR 1April 1995 Price support 1943,00 3,6300 535,26 445,00 2,1973 201,89 1166,7 0,6 233,36 847,11
TOBACCO 1May1995 Price support 16980,00 3,6300 4677,69 6787,67 2,1973 3057,57 19,7 31,92 115,86
MAIZE 1May1995 Price support 598,62 3,6300 164,91 227,61 2,1973 103,29 373,7 23,03 83,59 deminimis
COTTON 1April 1995 Price support 5542,86 3,6300 1526,96 3221,84 2,1973 1478,83 24,1 1,16 4,20
TEA 1July1995 Price support 12821,00 3,6300 3531,96 4418,36 2,1973 2007,36 11,1 16,85 61,18
Total Equivalent Measurements ofSupport (before levy/fees deduction): 1705,97
*Sugar support wasmultiplied withafactor of0,6toconvert theindustry support toacanegrowers proportion (60%) ofsupport.
**Incalculating theAMS forsugar, quality differences havenotbeentaken intoacocunt incomparing theadministered price (refined sugar) andtheexternal reference price inthebaseperiod (mainly rawsugar)G/AG/N/ZAF/5
Page9Supporting Table DS:9
DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1995
Non-Product-Specific AMS
Measure type(s) Financial year Non-product-specific
budgetary outlays
million RandOther non-product-
specific support (include
calculation details)Associated fees/levies Total non-product-
specific support
million RandDatasources
1 2 3 4 5 6
(3+4-5)7
Fuelandadministration costs to
co-operatives
State Guaranteed Scheme (Land and
Agricultural Bank)
Interest Subsidy toCo-operatives
Interest Subsidies toproducers
Fuelsubsidy
Resource allocation1995/96
1995/96
1995/96
1995/96
1995/96
1995/961,96
200,00
10,00
1,20
204,00
81,071,96
200,00
10,00
1,20
204,00
81,07Department of
Agriculture
"
"
"
"
"
Total Non-Product-Specific AMS: 498,23 (deminimis)
Total value ofagricultural production (Department ofAgriculture, Directorate: Statistics): 31180,34
Non-product-specific domestic support aspercentage oftotalvalue ofproduction : 1,60%