1. Statutory measures

According to the NAMC 2024 survey that is available on (NAMC website) a “statutory measure” is defined in the MAP Act as (i) a levy contemplated in Section 15; (ii) records and returns in terms of Section 18; and (iii) registration in terms of Section 19. Statutory measures namely a statutory levy, records and returns, and registration have been approved by the Minister responsible for Agriculture (hereafter referred to as the Minister) since 1997. Statutory measures are promulgated in the Government Gazette for specific agricultural products and for specific periods of time.

A statutory levy is a charge per unit on an agricultural commodity at any point in the marketing chain between the producer and the consumer. The levies are collected for specific functions such as (i) research activities i.e. cultivar development; (ii) market access and development; (iii) collation of information; and/or (iv) transformation activities. Levies are an important funding mechanism used to support agricultural activities and promote overall industry growth and development. Levies are established in accordance with Section 15 of the Marketing of Agricultural Products Act No. 47 of 1996 (MAP Act). Section 9 mandates the National Agricultural Marketing Council (NAMC) to monitor the implementation of statutory measures and report to the Minister, as well as evaluate and review such measures at least every two years.

The statutory levies serve as a mechanism to collect funds to finance generic functions such as research, information, promotion, and numerous other programmes meant to increase the competitiveness and viability of the relevant agricultural industries. Levies serve a vital function in supporting the agricultural industry, which is a substantial source of livelihoods and revenue for rural people, while also contributing to food security and growth in the economy. When analysing agricultural levies, one of the critical questions that must be answered is the economic impact of statutory levies that are collected from directly affected groups in the South African agricultural sector. To answer this question, this article examines levies in the citrus fruit industry, notably those on citrus fruit exported from South Africa, including their structure, implementation, and impact on the agricultural sector.

2. Citrus Statutory Levy structure and NAMC’s role

The NAMC plays an important role in South Africa’s agriculture sector by investigating applications for statutory levies in terms of the MAP Act and to make recommendations in this regard for consideration by the Miniter of Agriculture. This levies system, as mentioned above, is intended to finance key industry functions and support agricultural growth and development. In essence, the NAMC ensures that the statutory levies proposed by commodity associations are carried out transparently and efficiently, in accordance with the provisions outlined in the MAP Act. Under the statutory framework, commodity groups must obtain the Minister’s approval for administrating the relevant statutory measures. Once approved, these levies—usually calculated as a small percentage of the value of the product at the first point of sale. In the citrus industry, the statutory levy is collected from the exported product. In the South African citrus industry, the statutory levy represents approximately 1% of the price of citrus products at the first point of sale. The MAP Act stipulates that the statutory levy must not be more than 5% of the price of the product at the first point of sale.

The NAMC’s mandate includes monitoring this procedure, assessing compliance, and reporting on the performance of the statutory measures to ensure their appropriate application. This stringent control is vital for ensuring accountability and protecting the funds for their intended purposes. The money generated through statutory levies serve not only as a source of revenue but are also reinvested into the agricultural sector to support numerous vital functions, such as Research and Development (R&D), Market Promotion and Consumer Education, Export Facilitation, and Transformation Initiatives. The NAMC operates as a strategic overseer, ensuring that levy funds are channelled to critical areas as identified by commodity organisations.

2.1 Income and expenditure of statutory levies in the SA citrus industry

Figure 1: Distribution of Citrus Statutory Levy income and expenditure

Source: NAMC (2025)

Figure 1 shows the citrus industry statutory levy income and expenses from 2018 to 2024. The levy income shows a positive increasing trend from 2018 to 2024, with an increase of 247.85% during this period. It is worth noting that statutory levies are approved by the Minister for a period of four years. If levy income is not used in a year 3, it can be utilized later in the four-year period If there is a surplus of statutory levies after the approved four-year period, the Minister’s approval must be obtained before the citrus industry can use the surplus funds. As of 2022, the Minister approved a more than 100% increase in the citrus statutory levy after a request from the industry to launch an aggressive export campaign.  The citrus industry’s levy income growth is essential to guaranteeing sufficient finances for maintenance, management, and reserves for potential future initiatives within the industry. Additionally, the surplus levy, which has remained positive in most years, demonstrates good management of funds collected from industry players.

2.2 Levy allocations to Functions

Figure 2: Allocation of Citrus levies to functions

Source: NAMC (2025)

Figure 2 shows the allocations of citrus statutory levy funds to different functions within the industry from 2018 to 2024. According to Figure 2, the majority (66%) of levies collected in 2024 went toward the research and development of export markets; this represents an 6% drop in funding for research and development compared to 2023. Furthermore, it can be observed that the citrus industry is committed to industry transformation. The year-to-year comparisons shows that the funds allocated to transformation activities increased from 22% in 2023 to 23% in 2024. This demonstrates the critical relevance of levy collection in the citrus industry. Furthermore, Figure 2 demonstrates that levy earned is frequently reinvested in the industry, allowing for the development of cutting-edge technologies, novel agricultural practices, and effective disease management strategies. Administration, information distribution, export promotion, and market access are some of the other services covered by the statutory levy in the citrus industry.

3. Conclusion

It can be concluded that citrus statutory levies have been collected and administered effectively and efficiently. The levies played a major role for the South African citrus industry to become the second biggest exporter of citrus products in the world, despite several domestic and international challenges such as deteriorating road and rail infrastructure, harbours that are not operational, and disease outbreaks. However, the sector’s contribution and potential are threatened by ongoing climate variability and change, as well as economic uncertainties. This highlights the necessity for rigorous research into the effect of the citrus levy and its ability to address urgent challenges such as food security, poverty, and unemployment. To that purpose, the research questions listed below are worth investigating.

3.1 Areas of future research

• To what extent have citrus levies contributed to the adoption and promotion of resilient cultivars and sustainable farming practices in South Africa?
• How have citrus levies been utilized to support smallholder farmers, particularly in the face of challenges such as water scarcity and climate change?
• How can the design and implementation of citrus levies be improved to better align with the needs and challenges faced by the diverse range of smallholder farmers in South Africa?

Authors: Matume Maila; and Mathilda Van Der Waldt

fficials at the National Agricultural Marketing Council (NAMC)

References:

National Agricultural Marketing Council (NAMC), 2024. Status Report on Statutory Measures Implemented in Terms of The Marketing of Agricultural Products Act, Act No. 47 Of 1996: Survey. Pretoria, South Africa