The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Democratic Alliance (DA) believes that the ban on South African maize being sold for ethanol production needs to be lifted. This is in light of Grain SA, the body representing most of SA's maize, wheat and soya producers, recently warning that a substantial number of small farmers could face bankruptcy due to the 2009/10 harvest season surplus, which has driven maize prices down. The DA will be leading a delegation including Grain SA and the Portfolio Committee on Energy to the Department of Energy on 12 October 2010 to discuss the matter.

South Africa is currently the continent's largest producer of maize and produced a surplus of four million tonnes for the 2009/10 season. This has resulted in maize prices being driven down and as a result, a number of commercial grain farmers will fail to serve their current debt obligations and source new production loans. While the government has indeed taken steps to ensure an alternative market to dispose of the surplus maize, however, these efforts do not seem to have come to fruition.

The DA therefore believes that the excess maize that is produced should be considered for the use in the production of ethanol in South Africa's bio-fuel industry. The ban was imposed when world maize stocks were dwindling and there was fear of food security being compromised. However, the excess produced means that the provisions needed for food security is no longer a real fear.

Furthermore, the use of maize for ethanol production has other benefits. For example:

• Allowing maize to be sold for bio-fuel use would contribute as much as 9% to South Africa's demand for petroleum fuel.
• The production of ethanol would help the country reach its objectives for renewable energy.
• Dried Distillers Grain and Solubles (DDGS) produced would contribute significantly to substitute the import of protein feed for livestock
• 105 000 direct jobs could be created by the bio-fuel process.

In pursuance of these objectives, I have interacted with Grain SA, the portfolio committee and the Department of Energy and will lead a delegation to the Department of Energy on 12 October 2010 to discuss that:

• A regulatory framework regarding the production of ethanol has to be put in place in order to ensure an enabling economic environment.
• Applicable governmental policy documents and legislation will open huge opportunities for the bio-fuel industry in South Africa.
• Stabilizing the maize industry and meeting the renewable energy targets of South Africa should be of huge importance to the Departments of Agriculture and Energy

South Africa should not be shutting down the options for developing alternative fuel options available to us, especially when there are both immediate and long-term benefits for our country.