Grain transport differential increased by 9,8%

An intervention by Grain SA meant that maize farmers saved R100 million on transport differential costs. This was according to Grain SA CEO Jannie de Villiers.

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The average increase in the differential as announced by the JSE is 9,8%. This followed a meeting between Grain SA and the JSE on 17 March 2014.

"The spirit at this meeting was very good and the JSE was very receptive to our inputs. The reduction in the proposed transport differential tariff underpins the value Grain SA adds to the business of grain producers in SA,” said De Villiers.

The initial increase that was published for comments was 12,9%. “This increase appeared suspicious following a diesel price increase of 12,3% over the same period. Transnet Freight Rail in the meantime announced its new tariffs for 2014/2015 of which some have even decreased. This is very encouraging!” said De Villiers.

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"However, it is still a major concern to the grain industry that the percentage of grain transported by rail is continuing to decrease." According to SAGIS, Transnet Freight Rail transported only 16% of all the maize in 2013, compared to 80%+ in the 1980s.