World Grain - November 2009 - 58

ORGANIZATION PROFILE: SUPPORTING SOUTH AFRICAN MILLERS

as these new entrants find it more and
more difficult to meet the requirements
of the market.
"The maize millers, however, have
increased since the deregulation in 1997
and are still increasing. The market
share of the informal maize milling sector has increased from 15% in the 1980s
to 40% currently."
The estimated wheat milling capacity of South Africa is 3.3 million tonnes,
while the maize milling capacity is
4.7 million tonnes.
"We estimate that the current utilization, on average, is 85%," de Villiers
said. "The capacity utilization has decreased since deregulation occurred in
1997."
As for the greatest challenges facing
the South African milling industry, de
Villiers said the maintenance and investment in infrastructures such as rail,
roads and ports are at the top of the list
along with ensuring that adequate government services and an ample supply
of electricity are made available.
"Other great challenges are South
Africa's reaction to climate change,
dealing with volatility in raw material
prices, and skills shortages following
the huge transformation process in
South Africa after democratization," de
Villiers said.
In addition to supporting its core
businesses (wheat milling and maize
milling), the Chamber of Milling also
supports the general agricultural pro-

cessing sector through the South African Agricultural Processors Association, the animal feed industry and the
baking industry.
After a long period of consolidation,
which saw the number of baking plants
decline from 250 to 70 from 1994-2000,
consolidation in the baking sector has

both domestically and internationally.
The Chamber of Milling also "creates
research capacity," de Villiers said,
through its leadership and influence on
matters such as climatic changes, alternative energy sources and savings
as well as the impact of environmental
policy on the industry.

The estimated wheat milling capacity of South Africa is 3.3 million tonnes, while the maize milling capacity is 4.7 million tonnes.

largely come to a halt. The big plant
bakers are building on their role, and
their share of the market has gradually
risen, reaching 42.4% of wheat flour
usage in 2007-08. According to de Villiers, the plant bakers need to expand,
but the low level of profitability makes
it hard to find the necessary funds for
investment.
PRIORITIES
The Chamber of Milling lists eight
"high priority" areas that it focuses on
for its membership. These areas include:
 Value chain leadership and management. This includes coordinating
and enhancing competition and service
delivery levels of suppliers in the value chain, such as commercial storage,
Transnet Freight Rail and Agricultural
Research Council as well as enlarging the supply of raw material origins

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 Government policies, regulations
and monitoring. The promotion of free
market principles, facilitating the process to develop a reliable crop estimate
for South Africa and advising the government on policies (specifically on
biofuels, energy and food security) that
have an impact on the industry are just a
few of the actions taken by the Chamber
of Milling in this area. The organization
assists the government with advice and
information with regard to the monitoring of published government regulations relating to issues such as flour
fortification, the importation of products
and weights and measures, etc.
 Information. The Chamber of
Milling provides accurate, timely and
credible data on issues relating to its
members, such as cost data and sales
information, and communicates relevant trends based on economic re-

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