By Nico van Burick
The Department of Agriculture has recently officially revoked the controversial appointment of Leaf Services as an inspection service for grain and oilseeds.
John Steenhuisen, Minister of Agriculture, announced in the Government Gazette that the appointment of the beneficiary, under product standards legislation, is being revoked from 27 May 2025. This applies to grains and oilseeds, as well as products derived from them.
In September last year, Steenhuisen singled out Leaf Services’ role, alongside biosecurity and Onderstepoort Biological Products (OBP) service delivery, as three priority issues that were causing him sleepless nights as minister.
He then emphasised he would review Leaf as the department’s intended inspection service if it were going to increase food costs for consumers.
Industry stakeholders indicated that they could not understand why they had to pay additionally for this service as they had been paying for years to have their grain independently graded and quality assured.
Grading regulations strictly applied
The industry stated it could utilise the nearly R50 million the inspection services would cost the value chain far more effectively for much-needed research to maintain the sector’s international competitiveness. It praised the department for its decision to revoke the services.
Leaf Services (Pty) Ltd was appointed in 2016 as an authorised agent under the Agricultural Product Standards Act (Act 119 of 1990) to inspect grain and grain products destined for the local market.
A decision was made after the deregulation of control boards in 1995 to focus on organisations such as the SA Grain Information Service (SAGIS) and the SA Grain Laboratory, as they were seen to be essential for a free market, rather than creating an inspection service.
Although the law gives the minister the mandate to appoint authorised agents to carry out inspections, the minister can decide on the necessity of doing so.
Until now, no such need had been brought to the minister’s attention. Since the deregulation of the control boards, there have also been no disputes that justified state intervention.
The department also provided no reason why the establishment of inspections was now necessary, except that the minister has the power to establish such a service. The controversy over the issue has led to several legal actions.
Even after the authorised agent announced its methodology and tariffs for inspections for comment in November 2023, nothing further happened except that millions of rands were wasted.
