The purpose and aim of this statutory measure is to compensate breeders of lupin varieties for their contribution towards obtaining and utilising improved international agriculture related intellectual property to the benefit of the lupin industry in the Republic of South Africa.

The agricultural sector is expected to ensure food security, strengthen the economy and create job opportunities. This can be reconciled with the provisions of Section 2(3) of the Act. In order to achieve these aims and to further the competitive position of the lupin industry in the Republic of South Africa, it is essential to cultivate high yielding crops from seed varieties that are most suited for particular regions in the country.

For the optimisation of possible export earnings, it is also imperative for South African commodities to conform to international quality standards so that South African producers of lupins can remain competitive in the international markets.

The statutory measure shall be administered by the SA Cultivar and Technology Agency NPC (SACTA). The levies collected will be administered in a separate account for lupins. SACTA shall be audited annually in accordance with generally accepted accounting practices.

A portion of the funds collected by means of the levy will be focussed on small-scale farmers and transformation in the lupin industry in the Republic of South Africa. SACTA, who shall administer the levy, shall allocate 20% of the levy proceeds to transformation initiatives in the lupin industry, by means of service providers of its choice, and report back to the National Agricultural Marketing Council (NAMC) annually.