The department of agriculture has officially revoked the designation of Leaf Services as an assignee responsible for inspecting grain and grain products in South Africa.
Minister John Steenhuisen said the decision was based on Leaf Services’ failure to consult transparently on inspection fees, delays in fulfilling its regulatory duties, and non-compliance with the Promotion of Administrative Justice Act.
“We considered the assignee’s role and responsibilities in consulting transparently and inclusively in setting inspection fees. We further considered the inordinate time that Leaf Services took in applying the act, which is characterised by, amongst other things, a lack of substantive methodology upon which inspection fees are predicated,” he said.
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Grain SA applauds government’s decision
Grain SA welcomed the minister’s announcement, describing it as a significant step toward a more transparent and accountable regulatory environment.
Chief executive officer of Grain SA, Dr Tobias Doyer, expressed that these strides reflect a growing commitment to regulatory stewardship that aligns with global best practices.
According to Doyer, the decision follows years of persistent engagement by Grain SA and other stakeholders across the grain industry, who raised serious concerns about the lack of transparency, inadequate stakeholder consultation, and the financial burden associated with Leaf Services’ proposed grading inspections.
“Seen differently, this revocation represents a R600 million saving for grain producers. Grain SA itself incurred R135 000 in legal costs to appeal the proposed implementation, an investment made in the best interest of our members and the broader industry,” he said.
Barriers to entry in grain industry
Doyer said the lack of procedural fairness further weakened Leaf Services’ position, prompting the department of agriculture to act in favour of the industry.
“The grain industry supports regulation that is coherent, cost-effective, enabling and respectful of the rights and responsibilities of both juristic and private actors across the food value chain. We believe that regulation, when properly applied, is not merely a safeguard, but a critical enabler of inclusive economic participation, innovation, and agricultural competitiveness,” Doyer said.
Doyer said excessive, uncoordinated, or ineffective regulations create barriers to entry, deter investment, increase costs and unnecessary red tape in an industry that supplies staple food for South Africans, and undermine South Africa’s potential for economic growth and job creation.
Free State maize farmer Phaladi Matsole said he supports the department in its effort to take its mandate of grain inspection.
“In fact, it’s about time the department starts to do away with a number of outsourced responsibilities, huge amounts paid to outsourced services could be saved and spent somewhere else for other services.
“To start with, there was no need for all these high costs that don’t necessarily talk to improvement or yield results in grain production and producers, I’m fully with the national department of agriculture on this one,” he said.
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