WORLD TRADE G/AG/N/ZAF/13
6November 1997
ORGANIZATION(97-4854)
Original: English Committee onAgriculture
NOTIFICATION
Theattached notification concerning domestic support commitments for1996(Table DS:1 and
therelevant Supporting Tables) wasreceived from thedelegation oftheSouth Africa on
28October 1997.G/AG/N/ZAF/13
Page2Table DS:1
DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1996
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
2,351,326 000Rand 1,938,260G/AG/N/ZAF/13
Page3Supporting Table DS:1
DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1996
Measures exempt fromthereduction commitment -"Green Box"
Measure type Name anddescription ofmeasure withreference tocriteria inAnnex 2 Monetary value of
measure
million RandData sources
1 2 3 4
1.GENERAL SERVICES (i)Erection ofwaterworks (Infrastructure):
Toconstruct approved waterworks toenable producers toutilise landmore effectively.18.480 Department of
Agriculture
(ii)Resource conservation andenvironmental management:
Topromote sustainable utilisation ofthenatural agricultural resources, viz,thesoil,water
resources andvegetation andprotect theenvironment.197.400
(iii)Veterinary Services:
Topromote animal production, animal health andthequality oftheproducts ofanimals
through thedetermination ofnorms andstandards aswellasco-ordination andrendering of
services.281.805
(iv)Phytosanitary Services andQuality Control:
Topromote cropproduction andquality ofplant products through thedetermination ofnorms
andstandards aswellastheco-ordination andrendering ofservices.29.636
(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.53.678
(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.153.927
(vii)Contribution toAgricultural Research:
Contribution towards theexpenditure, training, depreciation, salaries andmaintenance ofthe
Agricultural Research Council withtheoverall purpose ofagricultural research.344.444G/AG/N/ZAF/13
Page4Measure type Name anddescription ofmeasure withreference tocriteria inAnnex 2 Monetary value of
measure
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).315.546
2.PAYMENT FOR RELIEF FROM
NATURAL DISASTERS(i)Subsidies forFlood disaster:
Toenable producers toreturn totheposition theyheldprior toflood damage.9.119 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.14.346
(iii)Stock feedpurchases incentives:
Toenable producers tomaintain anuclear herdduring anextended drought.17.292
(iv)Transport oflivestock andfodder:
Toenable producers indrought stricken areas tocontinue tofeedtheir livestock.0.365
(v)Transport ofwater:
Aidtocattle andhuman indrought stricken areas.0.016
(vi)Water quota subsidies:
Toenable producers onirrigation schemes tosurvive during drought conditions toenable
them tokeep their farm labourers andtoprevent collapse oftheinfrastructure oftheregion.4.322
(vii)Firedamage subsidy:
Compensation forlosses withdisaster firedamages.2.079
(viii) Subsidy fortheprevention ofsequestration:
Toprevent thesequestration, asfaraspossible, offarmers withthepossible ability to
recover, thereby retaining them foragriculture.0
(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.0
(x)Boreholes:
Sinking ofboreholes intimes ofdrought forstock.4.292G/AG/N/ZAF/13
Page5Measure type Name anddescription ofmeasure withreference tocriteria inAnnex 2 Monetary value of
measure
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.0.009
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).7.826 Department of
Agriculture
4.ENVIROMENTAL PROGRAMMES (i)Soilconservation works:
Thefinancing ofessential soilconservation works toimprove andprotect thesoil.97.161 Department of
Agriculture
5.REGIONAL ASSISTANCE
PROGRAMMES(i)Development aid:
Toassist producers inundeveloped anddisadvantaged areas withdevelopment aidto
encourage agricultural andrural development asanintegral partofthedevelopment
programme.704.805 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)0.140 Department of
Agriculture
(ii)Farm labourer housing:
Interest subsidy onloans forbuilding farm labourer housing forimproving theconditions of
farm labourers.0.520
(iii)AidtoFarmer Co-operatives:
AidtoFarmer Co-operatives infinancial difficulty caused bydrought andeconomic down
turns. Thepurpose fortheaidistoretain theinfrastructure intherural economy in
designated areas.0
(iv)Subsidies foraspecial assistance scheme forbeekeepers:
Tocompensate beekeepers whosuffered losses asaresult oftheinfiltration ofCape intruder
bees, forexpenses incurred inthere-establishment ofbeecolonies.0
GRAND TOTAL 2,257.208G/AG/N/ZAF/13
Page6Supporting Table DS:4 DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1996
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 818.86 818.86
Sugar 862.43 862.43
Tobacco 118.32 118.32
Maize 242.42 deminimis
Cotton 46.66 46.66
Tea 92.01 92.01
Total Non-product-specific AMS (from Supporting tableDS:9 below) deminimis
TOTAL: Current Total AMS: 1,938.26G/AG/N/ZAF/13
Page7Supporting Table DS:5 DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1996
Product-Specific Aggregate Measurement ofSupport: Market Price Support
Description of
basic productsCalendar /
marketing year
beginning ...Measure
type(s)Applied administered
price
Rand/tonneExternal
reference price
(1)(from
G/AG/W/30)
Rand/tonneEligible
production
000tonnesAssociated
fees/levies
million RandTotal market
price support
million RandData
sources
1 2 3 4 5 6 7 8
((4-5*6)-79
Wheat 1November 1995 Price support 953.89 495.50 1,977.0 87.38 818.84
Sugar (2) 1April 1996 Price support 2,040.50 867.40 1,225.3 0 862.43 (3)
Tobacco 1May 1996 Price support 18,640.00 13,136.54 21.5 0 118.32
Maize 1May 1996 Price support 592.00 443.78 1,948.3 46.38 192.42 (4)
Cotton 1April 1996 Price support 7,400.00 6,353.65 44.6 0 46.66
Tea 1July1996 Price support 15,491.00 8,624.42 13.4 0 92.01
1,938.26
Notes: (1) Exchange rates ofRand totheUSDollar which were used tocalculate theexternal reference price: 1986-88: 2.1973; 1996: 4.2964.
(2) Incalculating theAMS forsugar, quality differences havenotbeentaken intoaccount incomparing the"administered price" (refined sugar) andtheexternal
reference price inthebaseperiod (mainly rawsugar).
(3) Sugar support wasmultiplied withafactor of0.6toconvert theindustry support toacane growers proportion (60percent) ofsupport.
(4) deminimis
Source: Department ofAgricultureG/AG/N/ZAF/13
Page8Supporting Table DS:6 DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1996
Product-Specific Aggregate Measurement ofSupport: Non-Exempt Direct Payments
Description
ofbasic
productCalendar /
marketing
year
beginning ...Measure
type(s)Applied
administered
priceExternal
reference
price (from
G/AG/W/30)Eligible
productionTotal price-
related
direct
paymentsOther non-
exempt direct
payments
million RandAssociated
fees/leviesTotal direct
payments
million RandData sources
1 2 3 4 5 6 7
((4-5)*6)8 9 10
(7+8-9)11
Maize 1May 1996 Direct payment 50 50 Department
ofAgricultureG/AG/N/ZAF/13
Page9Supporting Table DS:7 DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1996
Product-Specific Aggregate Measurement ofSupport: Other Product-Specific Support andTotal Product-Specifc AMS
Description
ofbasic
productCalendar /
marketing
year
beginning ...Measure
type(s)Other product-
specific
budgetary
outlaysOther product
specific
support
(include
calculation
details)Associated
fees/leviesTotal other
product-
specific
supportMarket price
support
(Supporting
Table DS:5)
million RandNon-exempt
direct
payments
(Supporting
Table DS:6)
million RandTotal AMS
million RandData
sources
1 2 3 4 5 6 7
(4+5-6)8 9 10
(7+8+9)11
Wheat 1November 1995 Price support 814.84 814.84
Sugar 1April 1996 Price support 1,437.40 862.43 (1)
Tobacco 1May 1996 Price support 118.32 118.32
Maize 1May 1996 Price support
anddirect
payment192.42 50 242.42 (2)
Cotton 1April 1996 Price support 46.66 46.66
Tea 1July1996 Price support 92.01 92.01
1,938.26
Notes: (1) Sugar support wasmultiplied withafactor of0.6toconvert theindustry support toacane growers proportion (60%) ofsupport.
(2) deminimis: support 4percentofvalue ofmaize production (Rand 6,039 million)
Source: Department ofAgricultureG/AG/N/ZAF/13
Page10Supporting Table DS:9
DOMESTIC SUPPORT: South Africa
REPORTING PERIOD: 1996
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
Fuel andadministration costs
toco-operatives
State Guaranteed Scheme
(Land andAgricultural Bank)
Interest Subsidy to
Co-operatives
Interest Subsidies toproducers
Fuel subsidy
Resource allocation1996/97
1996/97
1996/97
1996/97
1996/97
1996/971.37
16.88
0
0.15
242.57
369.261.37
16.88
0
0.15
242.57
369.26Department
ofAgriculture
"
"
"
"
"
Total Non-Product-Specific AMS: 630.23 (de
minimis)
Total value ofagricultural production (Department ofAgriculture,
Directorate: Statistics):35,503.90
Non-product-specific domestic support aspercentage oftotal value ofproduction : 1.78%