New Regulations A Headache For Fertiliser Industry

A proposed new Fertilizer Bill will, if implemented, affect the fertiliser and related industries in several ways, including adding to the administrative burden of the registration of product. Increased regulation may also result in fertiliser cost increases. Theo Boshoff and Ingrid Boshoff outline their concerns.

On 12 December 2018, the Department of Agriculture, Forestry and Fisheries (DAFF) received public inputs to the Draft Fertilizer Bill.

The bill will allow DAFF to outsource the functions performed by the registrar of the Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act No. 36 of 1947 to an assignee of its choice. Some important changes affecting the industry will include the registration of all raw materials, the licensing of all manufacturing facilities, and the storage of raw materials or fertiliser products.

Apart from the increased regulation, the industry will be expected to bankroll all of the costs attached to the introduction of a levy to finance the implementation through assignees. The registration of fertilisers has always been undertaken under Act No. 36 of 1947; considering the magnitude of the amendments DAFF seeks to make, it may have seemed more convenient to simply write a new bill and separate fertilisers as part of its process to rationalise its legislation.

REGULATORY BURDEN

Modern agriculture requires the scientific and precise application of fertilisers to ensure efficiencies in production. However, the environmental risks posed warrant some degree of oversight and regulation. This regulation must be proportionate to the risks involved and the capacity of the regulator to implement oversight effectively. Therein lies the challenge of the proposed legislation.

The new bill introduces an additional regulatory burden. Treating renewals as new registrations increases the cost of doing business and the time taken to receive the necessary documentation.