Minister of Agriculture v Bluelilliesbush Dairy Farming (Pty) Ltd and Another

In May 2004 an outbreak of bovine tuberculosis occurred on dairy farms operated by the respondent companies in the Eastern Cape. More than 7 000 cattle were slaughtered under control measures imposed in terms of the Animal Diseases Act 35 of 1984. The respondents claimed compensation under s 19 of the Act read with regulation 30 of the Animal Disease Regulations. The Director of Animal Health, supported by the Minister of Agriculture, calculated compensation based on the slaughter value of the infected animals. The respondents contended that compensation should instead be calculated on the basis of the fair market value of the animals as healthy, productive dairy cattle. The Minister upheld the Director’s decision on objection. The respondents successfully reviewed that decision in the High Court, and the Minister and Director appealed to the Supreme Court of Appeal.

The appeal was partially successful only to the extent that the compensation awarded was reduced from R14 395 537 to R10 853 777. In all other respects, the appeal was dismissed with costs.

The case authoritatively clarifies the meaning of 'fair market value' in statutory compensation schemes under the Animal Diseases Act, establishing that compensation must reflect the productive value of animals as disease-free, not their diminished slaughter value. It reinforces purposive statutory interpretation in administrative law and underscores the role of compensation in securing voluntary cooperation with public health and disease-control measures.