South Africans can breathe a sigh of relief as the removal of mandatory external grain inspections prevents steep price hikes on bread and other essential grain products.
The Department of Agriculture's decision to revoke Leaf Services' inspection mandate has been met with widespread approval from retailers and industry bodies, who argued the fees would have added millions in unnecessary costs.
BusinessTech reported that Pick n Pay, one of the country's largest retailers, estimates the move saved it up to R10 million annually, while Boxer stores would have faced R15 million in added expenses - costs that would have inevitably been passed on to consumers.
Leaf Services, appointed in 2006 to oversee grain quality inspections, faced years of backlash from major industry players, including Grain SA, the Consumer Goods Council of SA and the Chamber of Baking. Critics argued that the company's inspection methods were excessive, costly and lacked proper justification.
Grain SA, in particular, fought against the proposed R4-per-tonne fee, warning that it would have forced producers to pay over R600 million collectively. Legal challenges and appeals to the Agriculture Ministry finally culminated in Minister John Steenhuisen revoking Leaf's designation last week.