South African grain producers today took their call for fair and transparent soybean price discovery directly to the Johannesburg Stock Exchange (JSE), as Grain SA formally handed over its petition and memorandum opposing the decision to return to a single soybean reference point.
Grain SA leadership, Board members and producers participated in a peaceful march through Sandton before the documents were handed over to JSE representatives at its offices in Gwen Lane.
The petition, supported by 965 signatures and 511 supporting comments, calls on the JSE to reconsider its decision, conduct a transparent and evidence-based review, and adopt a price-discovery system that better reflects actual grain movements and physical market realities.
“Today producers made their position clear in a peaceful but firm manner,” says Richard Krige, Chairperson of Grain SA.
“This is not simply about one reference point. It is about whether the system reflects the realities of the physical market and whether producers can have confidence that decisions affecting their businesses are based on transparent evidence.”
Grain SA remains concerned that the decision to reject the Multiple Reference Point model was not supported by sufficient quantitative evidence and that the agreed evaluation criteria were not adequately addressed.
A return to a single reference point could lead to transport-related deductions based primarily on distance from that point instead of taking adequate account of regional supply, demand and the actual movement of soybeans.
“Efficient markets require credible price discovery,” says Dr Tobias Doyer, CEO of Grain SA. “Our position remains that the methodology should reflect where grain is produced, where demand exists and how grain actually moves through the market. Unnecessary inefficiency ultimately creates costs somewhere in the value chain.”
The handover does not conclude Grain SA’s action on the matter.
The organisation is continuing with its technical submissions, engagement and proceeding with legal action, including an urgent application aimed at preventing implementation of the decision while the matter is challenged through appropriate processes aimed at protecting producer interests and securing a more efficient and transparent outcome.
Participants also carried bags of maize meal as a symbolic reminder that sustainable primary production ultimately underpins food security. The maize meal was donated to charitable organisations following the event.
