For the benefit of our readers who are not involved in the grain industry, can you explain what a silo certificate is?
It’s a formal document that serves as confirmation and evidence of the amount of grain delivered by a grain producer to, and held in storage by, a storage facility. It is a tradeable document that is used in South Africa for buying and selling grain commodities. Producers can sell grain based on silo certificates issued by storage providers, and buyers such as millers can purchase and pay for the grain-based on silo certificates provided by the seller.
After the transaction is concluded, the seller signs the certificate over to the buyer, and it then becomes the buyer’s property to be traded again or to obtain the physical grain from a silo. The certificate holder is responsible for storage costs. Silo certificates are issued for all commercially stored grains. The parties involved in a silo certificate transaction are the silo operators, buyers and sellers. Grain traders such as maize exporters seldom engage with primary producers; they deal with agribusinesses directly, as they do business on a totally different level to local buyers and sellers. Grain traders keep a keen eye on international trends and opportunities for trade, based on the selling price, the price offered by the potential buyer, and the exchange rate.
Does the market use the certificates to keep track of grain supplies at any given time?
Denne historien er fra May 28, 2021-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra May 28, 2021-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Review: the Toyota Hilux 2.8GD-6 DC 4×4 GR-Sport III
The third iteration of the Hilux GR-Sport has finally achieved a sense of presence and style befitting its raceinspired branding. But is this the ultimate modern Hilux? Car Magazine takes a closer look.
Why maize prices soar in Kenya and Malawi but not Tanzania
Namhla Landani, an economist at the Centre for Competition, Regulation and Economic Development, University of Johannesburg, and Arthur Khomotso Mahuma, economist and researcher at the Centre for Competition, Regulation and Economic Development, University of Johannesburg, analyse the issue.
Wet carcass syndrome: a scourge in SA sheep farming
Wet carcass syndrome continues to take a huge financial toll on South African sheep farmers. Octavia Avesca Spandiel spoke to two experts about the ongoing genetic research aimed at addressing this issue.
Pollination innovation
Bee-Tech Group is transforming South African agriculture with pollination technologies that boost crop yields and enhance sustainability. Founder Michiel Bruggeman spoke to Octavia Avesca Spandiel.
The valuable addition that makes this farm tick
Owning the value chain provides farmers with far more control over their produce. However, it requires a fine balance between production and ensuring there is a strong and steady market. Lindi Botha visited Rosemary Hill to find out how this essential oil producer leverages hospitality to make the farm viable.
The benefits of recirculating aquaculture systems
A powerful set of attributes has established recirculating aquaculture systems as a cornerstone of global temperate fish farming, writes Leslie Ter Morshuizen, owner of Aquaculture Solutions.
Minister has big plans for emerging and commercial farmers
DA leader and Minister of Agriculture John Steenhuisen spoke to Glenneis Kriel about his priorities for his department over the next five years, including an increased focus on biosecurity.
New study aims to make wheat more disease resistant
A recent international study explains how bread wheat has helped to transform the ancient world on its path to becoming the iconic crop that today helps sustain a global population of eight billion.
Conservation farming and biodiversity boost soil health and sustainability
A recent academic event focused on research into the links between soil biodiversity, soil health and sustainable agriculture
What has led to the unparalleled rice shortage in Japan?
Japan is facing a rice shortage amid concerns about a potential 'megaquake', several typhoons and an annual week-long holiday, which has led to an increase in panic buying.
