The purpose of this article is to illustrate the possible effect of a deregulated yellow maize marketing system on the livestock industry (via the stockfeed industry). The stockfeed industry, with its different market segments, and the most important raw materials are described .. A sectoral linear programming model was used to simulate the one channel maize policy in thirteen regions. The social cost of the single channel maize marketing system (which distorted market signals) was calculated. The livestock industry (via yellow maize in stockfeed) was the major looser under the single channel maize marketing system. Moving to a freer market situation for yellow maize should result in a more balanced agricultural sector and an increase in the total economic welfare of the country, and particularly that of the livestock industry.