RESTRICTED
WORLD TRADE G/AG/W/30
19February 1997
ORGANIZATION(97-0645)
Original: English Committee onAgriculture
COMMUNICATION FROM SOUTH AFRICA
Thefollowing communication wasreceived bytheSecretariat on5February 1997along with
arequest foritscirculation toMembers oftheCommittee onAgriculture.
___________________
Inaccordance withtheprocedures atthetime, PartIVofSouth Africa 'sSchedule refers to
thedocument G/AG/AGST/ZAF and,specifically, toTables 6and6(bis). Onreview, itappears that
these tables were inadvertently notincluded inthatdocument dated 22March 1995.
ThesetablesandrelevantadditionaltablesrelatingtoSouthAfrica'sdomesticsupportcalculations
aresetoutbelow intheinterest oftransparency andcompleteness. South Africa isatMembers 'disposal
should there beanyneedtoclarify theinformation.G/AG/W/30
Page2
OVERVIEW OFTOTAL DOMESTIC SUPPORT
Market price support (supporting table6) 1,480.25
Minus deminimis (7.09)
Non-exempt direct payments (supporting table7) 248.20
Equivalent measures ofsupport (supporting table9andannex) 287.66
Non-product specific support 510.27
Total baseAMS 2,519.27G/AG/W/30
Page3Supporting Table 6
AGRICULTURAL NEGOTIATIONS: SUPPORTING DATA
DOMESTIC SUPPORT: SOUTH AFRICA
Aggregate Measurement ofSupport: Market Price Support
Description ofbasic
productsMeasure type(s) Applied
administered priceExternal
reference priceEligible
productionAssociated
fees/leviesTotal market
price supportDatasources Comments
(Rand/ton) (Rand/ton) ('000tonnes) (Million rand) (Million rand)
1 2 3 4 5 6 7
((3-4)*5)-68 9
WHEAT
1986
1987
1988
averagePrice support
Price support
Price support325.00
376.80
405.00
368.93251.19
205.61
306.80
254.531,666.3
2,311.2
2,916.2
2,297.95.00
3.47
4.37
4.60118.00
392.19
281.99
264.06 Department ofAgricultureApplied administered price
istheproducer price for
BS1wheat. External price
isderived from thec.i.f.
Argentine Trigo Panwheat
price toSouth Africa.
BARLEY
1986
1987
1988
averagePrice support
Price support
Price support269.00
301.50
330.00
300.17245.38
225.03
314.73
261.71188.9
199.0
268.0
218.65.48
1.29
1.74
3.060.00
13.92
2.35
5.42 Department ofAgricultureApplied administered price
istheproducer price for
grade M1barley. External
price isthec.i.f.
Australian price for
malting barley toSouth
Africa.
OATS
1986
1987
1988
averagePrice support
Price support
Price support185.00
201.00
200.00
195.33222.72
256.25
478.61
319.1912.0
43.0
67.0
40.70.25
0.06
0.10
0.330.00
0.00
0.00
0.00 Department ofAgricultureApplied administered price
istheproducer price for
grade 1oats. External
price isac.i.f. value,
based ontheaverage oats
price intheUnited States,
toSouth Africa.
(deminimus)G/AG/W/30
Page4 1 2 3 4 5 6 7 8 9
RYE
1986
1987
1988
averagePrice support
Price support
Price support200.00
215.00
305.00
240.00156.72
152.84
260.65
190.072.0
2.0
2.0
2.00.04
0.00
0.00
0.020.08
0.12
0.09
0.10 Department ofAgricultureApplied administered price
istheproducer price for
grade 1rye. External
price isac.i.f. value,
derived from theaverage
ryeprice intheUnited
States, toSouth Africa.
COTTON
1986
1987
1988
averagePrice support
Price support
Price support2,508.57
2,685.71
3,057.14
2,750.472,346.10
3,678.51
3,640.91
3,221.8446.8
60.7
77.7
61.70.00
0.00
0.00
0.007.61
0.00
0.00
2.54 Department ofAgricultureApplied administered price
istheaverage producer
price forcotton lint.
External price isthec.i.f.
Liverpool A-index price, to
South Africa.
(deminimus)
CHICORY
1986
1987
1988
averagePrice support
Price support
Price support777.00
887.00
1,026.00
896.67598.29
732.60
866.91
732.6013.1
19.1
19.5
17.20.00
0.00
0.00
0.002.34
2.95
3.10
2.80 Department ofAgricultureApplied administered price
istheselling price for
chicory (dried root)
grade 1.External price is
anaverage c.i.f. value of
imported chicory (dried
root) toSouth Africa.
EGGS
1986
1987
1988
averagePrice support
Price support
Price support1,056.34
1,647.89
1,633.80
1,446.012,537.90
1,960.47
2,206.37
2,234.91195.0
201.0
225.0
207.00.00
0.00
0.00
0.000.00
0.00
0.00
0.00 Department ofAgricultureApplied administered price
istheprice paidtopackers
under theEggPurchasing
Basic price. External price
isac.i.f. value, based on
thewholesale price inNew
York CityforGrade A
large eggs, toSouth
Africa.
(deminimus)G/AG/W/30
Page51 2 3 4 5 6 7 8 9
TOBACCO
1986
1987
1988
averagePrice support
Price support
Price support6,772.00
8,067.00
8,627.00
7,822.006,984.00
4,436.00
8,943.00
6,787.6732.2
27.2
29.3
29.60.00
0.00
0.00
0.000.00
98.76
0.00
32.92 Department ofAgricultureApplied administered
prices istheselling prices
offluecured tobacco.
External price isac.i.f.
Zimbabwe price for
fluecured tobacco toSouth
Africa.
GRAIN SORGHUM
1986
1987
1988
averagePrice support
Price support
Price support196.00
182.00
187.00
188.33186.91
192.92
310.17
230.00390.0
477.0
474.0
447.00.00
0.00
0.00
0.003.55
0.00
0.00
1.18 Department ofAgricultureApplied administered price
isthenetfloor price of
GL1sorghum. External
price isac.i.f. USGulf
ports price, forsorghum
USNo.2yellow, toSouth
Africa. (deminimus )
DRY BEANS
1986
1987
1988
averagePrice support
Price support
Price support944.86
1,090.29
1,312.00
1,115.711,060.00
994.00
1,316.00
1,123.3397.8
99.3
97.1
98.00.00
0.00
0.00
0.000.00
9.56
0.00
3.19 Department ofAgricultureApplied administered price
istheproducer price of
sugar beans. External
price isac.i.f. China
price, Chinese speckled
kidney beans, imported to
South Africa.
(deminimus )
SOYA BEANS
1986
1987
1988
averagePrice support
Price support
Price support408.00
524.55
528.34
486.96518.35
574.07
704.51
598.9835.1
32.0
64.0
43.70.00
0.00
0.00
0.000.00
0.00
0.00
0.00 Department ofAgricultureApplied administered price
istheproducer price of
soyabeans. External price
isac.i.f. Gulfports price
forsoyabeans USyellow
toSouth Africa.
(deminimus )
SUNFLOWERSEED
1986
1987
1988
averagePrice support
Price support
Price support460.84
564.50
580.81
535.38502.37
395.94
563.60
487.31272.4
374.8
419.7
355.60.00
0.00
0.00
0.000.00
63.17
7.22
23.46 Department ofAgricultureApplied administered price
istheproducer price of
sunflowerseed grade FH.
External price isac.i.f.
value, based ontheUS
farmprice of
sunflowerseed, toSouth
Africa.G/AG/W/30
Page6 1 2 3 4 5 6 7 8 9
GROUNDNUTS
1986
1987
1988
averagePrice support
Price support
Price support1,024.54
1,051.57
913.09
996.401,176.00
1,119.64
1,568.09
1,287.9178.3
83.3
165.2
108.90.00
0.00
0.00
0.000.00
0.00
0.00
0.00 Department ofAgricultureApplied administered price
istheproducer price -
combined netprice for
crushing andedible
groundnuts. External price
isac.i.f. Argentine price
forGrade 60-70
groundnuts shelled (derived
from thec.i.f. Rotterdam),
toSouth Africa.
(deminimus )
LUCERNE SEED
1986
1987
1988
averagePrice support
Price support
Price support3,880.56
4,539.72
5,762.44
4,727.579,499.64
8,618.21
13,625.30
10,581.051.2
0.7
0.1
0.70.00
0.00
0.00
0.000.00
0.00
0.00
0.00 Department ofAgricultureApplied administered price
istheproducer price for
Lucerne seed. External
price isac.i.f. value based
onanaverage USretail
price paidbyUSfarmers
forAlfalfa, uncertified
seed, toSouth Africa.
(deminimus )
MAIZE
1986
1987
1988
averagePrice support
Price support
Price support271.77
306.00
283.00
286.92191.12
191.32
300.40
227.615,062.0
5,533.0
6,280.0
5,625.0235.38
331.98
175.84
252.19293.71
431.42
0.00
241.71 Department ofAgricultureApplied administered price
isthegross producer price
foryellow maize. External
price isaweighted average
price between anFAE
(Durban) export realization
price andac.i.f. import
realization price (derived
from thef.o.b. USGulf
No.3)ofmaize.
COFFEE
1986
1987
1988
averagePrice support
Price support
Price support6,200.00
5,300.00
5,459.00
5,653.008,260.77
5,098.19
5,289.40
6,216.121.0
1.4
1.6
1.30.00
0.00
0.00
0.000.00
0.28
0.27
0.18 Department ofAgricultureApplied administered price
istheproducer price of
coffee. External price is
thec.i.f. Robustas coffee
indicator prices onthe
NewYork market toSouth
Africa.
(deminimus )G/AG/W/30
Page71 2 3 4 5 6 7 8 9
TEA
1986
1987
1988
averagePrice support
Price support
Price support5,448.00
6,255.00
6,873.00
6,192.004,866.77
3,900.52
4,487.80
4,418.3610.1
11.0
11.8
11.00.00
0.00
0.00
0.005.90
25.84
28.12
19.95 Department ofAgricultureApplied administered price
istheproducer price of
tea.External price isa
c.i.f. average auction price
fortea(London), toSouth
Africa.
BEEF
1986
1987
1988
averagePrice support
Price support
Price support3,534.00
4,516.00
4,826.00
4,292.003,039.34
3,385.37
4,152.04
3,525.58414.4
370.7
349.6
378.20.00
0.00
0.00
0.00204.96
419.10
235.64
286.57 Department ofAgricultureApplied administered price
isanaverage auction price
ofbeefonthehook -City
Deep abattoir. External
price istheaverage of
c.i.f. value based onthe
average value ofimported
beef, mainly from theEU.
SHEEP
1986
1987
1988
averagePrice support
Price support
Price support4,085.29
4,721.89
5,905.11
4,904.103,249.42
3,340.58
4,674.74
3,754.91107.8
111.9
105.9
108.50.00
0.00
0.00
0.0090.10
154.58
130.30
124.99 Department ofAgricultureApplied administered price
istheaverage auction price
ofmutton (allgrades).
External price isthe
average c.i.f. value based
ontheaverage value of
imported mutton, mainly
from Australia andNew
Zealand, toSouth Africa.
PORK
1986
1987
1988
averagePrice support
Price support
Price support2,640.04
3,148.05
3,589.03
3,125.711,929.00
1,840.00
1,906.00
1,891.6790.9
91.2
95.9
92.70.00
0.00
0.00
0.0064.64
119.34
161.37
115.12 Department ofAgricultureApplied administered price
istheaverage auction
prices ofpork(allgrades).
External price isthe
average c.i.f. value based
ontheaverage value of
imported porkmainly from
theEUandCanada.G/AG/W/30
Page8 1 2 3 4 5 6 7 8 9
DAIRY
1986
1987
1988
averagePrice support
Price support
Price support391.50
456.56
536.15
461.40239.56
243.39
298.96
260.631,689.1
1,769.0
1,831.5
1,763.20.00
0.00
0.00
0.00256.65
377.11
434.42
356.06 Department ofAgricultureApplied administered price
isthenetproducer prices
offresh milk. External
price isthec.i.f. IDA
minimum export prices for
butter andskimmed milk
powder toSouth Africa,
converted tofresh milk
equivalent.
MOHAIR
1986
1987
1988
averagePrice support
Price support
Price support16,973.00
17,023.00
12,290.00
15,428.6717,140.00
17,190.00
12,410.00
15,580.0010.6
11.2
11.7
11.20.00
0.00
0.00
0.000.00
0.00
0.00
0.00 Department ofAgricultureApplied administered price
istheproducer price of
mohair. External price is
theaverage f.o.b. export
price ofSouth African
mohair.G/AG/W/30
Page9Table 6bis
AGRICULTURAL NEGOTIATIONS: LIST OFCOMMITMENTS
DOMESTIC SUPPORT: SOUTH AFRICA
Deregulatory Actions Already Taken
Product Deregulatory actions taken since thebaseperiod 1986-1988 Source Comments
Meat
Maize
Wheat
Rye
Cotton
Tea(Rooibos)1.Restrictive registration ofabattoir agents, butchers, general dealers, meat processors, hideandskindealers aswellasimporters
abolished.
2.Quantitative import control lifted.
3.Repeal ofprohibition establishing controlled areas i.e.thefreemovement ofmeat throughout theRSA, subject tohealth
requirements.
4.Scrapping ofcontrol overmeat products.
5.Privatization ofAbattoir Corporation.
1.Annual subsidization oftheMaize Board ’shandling andstorage costs phased outandceased.
1.Restrictive registration ofmillers andbakers abolished.
2.Thepayment ofsubsidies onstandard bread ceased on28February 1991.
3.Price control onflour, meal andstandard bread abolished on1March 1991.
4.Price control onbuckwheat abolished inApril 1991.
1.Price control abolished on1October 1987.
1.Restrictive registration ofginners abolished.
1.Restrictive registration oftraders abolished.Department ofAgriculture
Department ofAgriculture
Department ofAgriculture
Department ofAgriculture
Department ofAgriculture
Department ofAgricultureG/AG/W/30
Page10Product Deregulatory actions taken since thebaseperiod 1986-1988 Source Comments
Dairy
Oilseeds and
oilcake
Fishmeal
Tobacco1.Price control onfresh milkabolished on1July1983.
2.Price control onbutter andcheese abolished on30May1985.
3.Price control onindustrial milkabolished on1September 1988.
1.Consensus Committee consisting ofequal numbers ofproducers andbuyers established bytheOilseeds Board tonegotiate prices
foreachseason.
2.Quantitative import control measures lifted onvegetable oilsandoilcake.
1.Quantitative import control lifted.
1.Consensus Committee consisting ofequal numbers ofproducers andbuyers established bytheTobacco Board tonegotiate prices
foreachseason.
2.Quantitative import control lifted.
3.Thesingle channel marketing scheme established under theCo-operative Actdiscontinued.
4.Substantive reduction ofexport subsidies.Department ofAgriculture
Department ofAgriculture
Department ofAgriculture
Department ofAgriculture
Fruit and
vegetables
Eggs
Karakul
Wine
Chicory
Lucerne1.Consensus Committee consisting ofequal numbers ofproducers andbuyers established bytheCanning Fruit Board tonegotiate
prices foreachseason.
2.Quantitative import control measures lifted ondried beans andpulses.
3.Tariffication ofmost fresh andfrozen fruitandvegetables, dried beans, pulses andlegumes andtheconsequent lifting ofimport
control measures havebeenapproved bytheMinister ofAgriculture.
4.Single channel marketing oflocal citrus anddeciduous fruitabolished infavour offreemarketing.
5Banana Scheme andBanana Board abolished.
1.EggScheme andEggBoard abolished.
1.Karakul Scheme andKarakul Board abolished.
1.Production quotas abolished.
1.Chicory Scheme andChicory Board abolished.
1.Thesingle channel marketing scheme forlucerne hayestablished under theCo-operatives Actdiscontinued.Department ofAgriculture
Department ofAgriculture
Department ofAgriculture
Department ofAgriculture
Department ofAgriculture
Department ofAgricultureG/AG/W/30
Page11Supporting Table 7
AGRICULTURAL NEGOTIATIONS: SUPPORTING DATA
DOMESTIC SUPPORT: SOUTH AFRICA
Aggregate Measurements ofSupport: Non-Exempt Direct Payments
(product specific)
Description of
basic productsMeasure
type(s)Applied
administered
price
(Rand/ton)External
reference
price
(Rand/ton)Eligible
production
(Million tons)Total price-
related direct
payments
(Million tons)Other non-
exempt direct
payments
(Million rand)Associated
fees/levies
(Million
rand)Total direct
payments
(Million
rand)Datasources Comments
1 2 3 4 5 6
((3-4)*5)7 8 9
(6+7-8)10 11
Maize
1986
1987
1988
averageDirect aid
34.66
279.54
2.37
105.52 105.52 Department of
AgricultureDirect aidincludes
payments for:maize
price subsidy,
redemption ofloans,
import losses and
interest subsidies.
Wheat
1986
1987
1988
averageDirect aid
146.20
147.37
132.00
141.86 141.86 Department of
AgricultureDirect aidforbread
subsidy.
Tea
1986
1987
1988
averageDirect aid
0.00
1.80
0.67
0.82 0.82 Department of
AgricultureInterest subsidies to
theRooibos Tea
Board
Total non-exempt direct payments 248.20G/AG/W/30
Page12Supporting Table 8
AGRICULTURAL NEGOTIATIONS: SUPPORTING DATA
DOMESTIC SUPPORT: SOUTH AFRICA
Aggregate Measurements ofSupport: Other Product-Specific Support andTotal Product-Specific AMS
Description of
basic productsMeasure
type(s)Other product-
specific
budgetary
outlays
(Million
rand)Other product-
specific support
(Million
rand)Associated
fees/levies
(Million
rand)Total other
product-
specific
support
(Million
rand)Market price
support
(Supporting
Table DS:6)
(Million
rand)Non-
exempt
direct
payments
(Supporting
Table
DS:7)
(Million
rand)Total AMS
(Million
rand)Datasources Comments
1 2 3 4 5 6
((3-4)-5)7 8 9
(6+7+8)10 11
Wheat
Barley
Oats
Rye
Cotton
Chicory
Eggs
Tobacco
Grain sorgum
Drybeans
Soya beans
Sunflowerseed
Groundnuts
Lucerne seed
Maize
Coffee
Tea
Beef
Sheep
Pork
Dairy
Mohair264.06
5.42
0.00
0.10
2.54
2.80
0.00
32.92
1.18
3.19
0.00
23.46
0.00
0.00
241.71
0.18
19.95
286.57
124.99
115.12
356.06
0.00141.86
105.52
0.82405.92
5.42
deminimis
0.10
deminimis
2.80
deminimis
32.92
deminimis
deminimis
deminimis
23.46
deminimis
deminimis
347.23
deminimis
20.78
286.57
124.99
115.12
356.06
1,721.36G/AG/W/30
Page13Supporting Table 9
AGRICULTURAL NEGOTIATIONS: SUPPORTING DATA
DOMESTIC SUPPORT: SOUTH AFRICA
Equivalent Commitments
Description of
basic productsMeasure type(s) **Applied
administered priceProduction eligible to
receive theapplied
administered priceMarket price
budgetary
outlaysNon-exempt
direct
paymentsOther
product-
specific
supportDatasources Comments
(Rand/ton) ('000tonnes)
1 2 3 4 5 6 7 8 9
Sugar
1986
1987
1988
averagePrice support
Price support
Price support
Price support728.00
835.00
937.50
833.501,114.8
1,294.4
1,267.5
1,225.6-
-
-
--
-
-
--
-
-
- Department ofAgricultureApplied administered price
istheaverage industrial
price ofwhite andbrown
refined sugar. External
price istheaverage f.o.b.
export realization price.
(Average gross export
returns tothesugar
industry.)
**Incalculating theAMS forsugar, quality differences havenotbeentaken intoaccount incomparing theadministered price (refined sugar) andtheexternal reference price inthebaseperiod (mainly rawsugar).G/AG/W/30
Page14ANNEX TABLE TOSUPPORTING TABLE 9:SUGAR
Calculation ofEquivalent Measure ofSupport
1986 1987 1988 Average
**Applied administered price
Reference price
Price support
Eligible production
Total
Support received bysugar cane producersRand/t (a)
Rand/t (b)
Rand/t (c)
'000tonnes (d)
Rand million (e)
Rand million (f)728.00
391.00
337.00
1,114.83
375.70
225.42835.00
372.00
463.00
1,294.39
599.30
359.58937.50
572.00
365.50
1,267.52
463.28
277.97833.50
445.00
388.50
1,225.58
479.43
287.66
Explanatory notes:
(a) Average industrial price ofwhite andbrown refined sugar.
(b) Average gross export returns tothesugar industry.
(c) (a)-(b) =(c).
(d) Domestic consumption ofwhite andbrown refined sugar.
(e) Total support tothesugar industry.
(f) Thesupport passed totheproducers iscalculated bymultiplying row(e)above byacoefficient (of0.6)thatreflects thedistribution oftotalgross returns tothesugar industry between
millers (40percent) andcane growers (60percent).
**Incalculating theAMS forsugar, quality differences have notbeen taken intoaccount incomparing theadministered price (refined sugar) andtheexternal reference price inthe
baseperiod (mainly rawsugar).G/AG/W/30
Page15Supporting Table 10
AGRICULTURAL NEGOTIATIONS: SUPPORTING DATA
DOMESTIC SUPPORT: SOUTH AFRICA
Non-Product-Specific AMS
Measure type(s) Non-product-specific
budgetary outlaysOther non-product-
specific supportAssociated
fees/leviesTotal non-product-
specific supportData sources Comments
(Million rand) (Million rand)
1 2 3 4 5
(2+3-4)6
Subsidies toco-operatives
1986
1987
1988
average1.90
6.80
5.92
4.87 4.87Department of
AgricultureFuel and
administrative costs to
co-operatives andaid
tofresh produce
markets.
Subsidies totheLand and
Agricultural Bank
1986
1987
1988
average2.60
12.40
35.41
16.80 16.80Department of
AgricultureState guaranteed
scheme
Interest subsidies toControl
Boards
1986
1987
1988
average5.90
2.08
0.00
2.66 2.66Department of
AgricultureInterest subsidies on
Reserve Bank loans to
Control BoardsG/AG/W/30
Page16 1 2 3 4 5 6
Interest subsidies to
co-operatives
1986
1987
1988
average13.34
14.31
20.27
15.97 15.97Department of
AgricultureInterest subsidies to
co-operatives in
financial difficulty
Interest subsidies toproducers
1986
1987
1988
average122.32
163.38
199.10
161.60 161.60Department of
AgricultureInterest subsidies to
producers on
carry-over
debt/production credit,
consolidated agric.
debtlongterm and
establishment loans in
designated areas.
Fertilizer subsidies
1986
1987
1988
average1.96
1.00
0.00
0.99 0.99Department of
AgricultureFertilizer subsidies to
farmers.
Subsidies toirrigation boards
1986
1987
1988
average1.80
3.30
4.95
3.35 3.35Department of
AgricultureFinancial assistance in
theform ofstatutory
loans andsubsidies to
irrigation boards i.r.o.
theconstruction of
water schemes.
Fuelsubsidies
1986
1987
1988
average0.00
242.79
265.54
169.44 169.44Department of
AgricultureSubsidizing thecostof
fuelpaidbyproducers.G/AG/W/30
Page171 2 3 4 5 6
Administration (general
services)
1986
1987
1988
average11.81
19.36
27.57
19.58 19.58Department of
AgricultureToconduct theoverall
management ofthe
Department of
Agriculture andrender
specialized
administrative services.
Industry assistance (general
services)
1986
1987
1988
average9.65
2.28
0.17
4.03 4.03Department of
AgricultureSubsidized
administration costs of
theco-operatives i.r.o.
claims fordiesel fuel
rebate.
State Water Scheme (general
services)
1986
1987
1988
average10.94
17.18
15.17
14.43 14.43Department of
AgricultureMaintenance and
operational costs ofthe
State Water Scheme.
Agricultural financing (general
services)
1986
1987
1988
average190.53
0.00
99.04
96.52 96.52Department of
AgricultureGovernment
expenditure tothe
Directorate Financial
Assistance after
subtracting specific
financial assistance
schemes (unallocated
amounts)
Total non-product-specific AMS 510.25