The seventh statutory levy period approved

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On 23 July 2026, Congress voted in favour of Potatoes SA chairperson Murray Thompson’s appeal, officially endorsing the organisation’s proposed seventh statutory levy period following extensive industry consultations. With this approval secured, the submission proceeded to the National Agricultural Marketing Council (NAMC) and the minister of agriculture for final endorsement, laying a strong foundation for the organisation’s next four-year mandate.

By approving the application for the seventh statutory period, producers reaffirmed their support for a farmer-led organisation dedicated to delivering tangible value. Moving forward, the board of directors as well as management will build on this strong mandate across the four core strategic pillars as represented by Thompson:

  • Marketing: Providing actionable tools and market intelligence to empower better business decisions.
  • Information: Leveraging modern technology, such as the continuous development of the Potatoes SA app, to deliver critical data and precision farming tools directly to growers.
  • Research: Investing in long-term innovation, yield efficiency, and sustainability.
  • Transformation: Building an inclusive, resilient industry equipped for the future.

The vote also ensures the continuation of crucial industry representation beyond the core pillars. This includes leading joint commodity advocacy on chemical remedies under the Fertilisers, Farm Feeds, Agricultural Remedies and Stock Remedies Act, 1947 (Act 36 of 1947) to address regulatory challenges before they disrupt farming operations.

While recent successful production seasons have strengthened the organisation’s balance sheet, the board maintains that robust financial health demands even greater discipline. Every levy rand collected, project initiated, and research trial supported will continue to be measured against a single standard: whether it helps South African potato producers build stronger, more sustainable businesses.

Following this successful vote, the board calls on all producers to stay actively engaged. Strong national governance depends on broad participation at the regional level, ensuring every region’s voice helps guide the execution of this seventh statutory period.

Application for the seventh statutory levy period (1 July 2027 to 30 June 2031)

Summary for industry stakeholders

Potatoes SA, through the Potato Industry Development Trust (PIDT), has applied to the NAMC and the minister of agriculture for approval to continue the statutory potato levy for a further four-year term, namely the seventh statutory period. The application sets out how levies will be collected, how CPI-linked adjustments will apply, and how funds will be allocated across research, marketing, transformation, information, and administration in line with NAMC and Congress guidelines.

Application process and timeline

What the levies fund

Research and innovation:

Product, production, and technical development for the industry.

Marketing and development:

Growing local demand and expanding market access.

Transformation:

Enterprise, skills, and socio-economic development (NAMC minimum of 20%).

Industry information:

Production, price, and market intelligence for producers.

Administration:

Capped at less than 10% of total budget.

Two key changes for the seventh period

  1. CPI-linked levy rate adjustments

Levy rates will now be adjusted annually by the board based on the 12-month average of the consumer price index (CPI) for the May to April period. This CPI figure serves as a ceiling rather than a baseline, representing the maximum allowable adjustment for that year, as approved by the board of directors. This replaces the previous system of negotiating levy increases for the entire statutory period at the outset, providing a more predictable and inflation-aligned funding model. Applies annually, from 2027/28 to 2030/31.

  1. Alignment of levy rates across commodities

Levy rates for processors and seed potatoes will be increased so that all levy-payer categories – including importers, retailers, and bag manufacturers – converge onto a single, aligned rate. This follows a renegotiation of the levy contribution by non-table producers, correcting the historical gap between table-potato and non-table levy rates. Seed potatoes remain a separate category by design. All commodities pay the same rate from 2027/28.

Financial governance guidelines

Levy rate trajectory (cent/kg).

Levy payer category2026/272027/282028/292029/302030/31
Seed potatoes1.03701.19351.22741.26221.2981
Processors1.22402.69772.78942.88432.9823
Importers1.84202.69772.78942.88432.9823
Retailers2.60902.69772.78942.88432.9823
Bag manufacturers2.60902.69772.78942.88432.9823
Seed potatoes remain a distinct category by design; processors, importers, retailers, and bag manufacturers align from 2027/28 onwards. Increases reflect an estimated average CPI rate of ~3.4% over the four years.

Why it matters

Together, these two changes provide Potatoes SA with a more predictable, inflation-linked revenue base and a fairer, more consistent levy structure across all commodities. This supports the R306 million four-year funding target dedicated to research, marketing, transformation, and industry information under the seventh statutory period. – Johan van Deventer and Hanrie Greebe, Potatoes SA

Send an email to Johan van Deventer, Potatoes SA CFO, at johan@potatoes.co.za or Hanrie Greebe, Potatoes SA company secretary/communication manager at hanrie@potatoes.co.za