With silos bulging, SA looks abroad
By Ray Ndlovu - Sep 12th 2017, 10:56
A quarter of South Africa's surplus maize crop of four million tons has so far been exported to Southern African countries and to the Far East, as South Africa searches for new markets.
Agricultural economists expect the surplus crop produced this year to be carried forward into the next harvest season as there is weak global demand for maize at present.
The surplus crop will suppress the maize price, which has already traded below R2,000 per ton from a peak of over R5,000 per ton last year after the severe El Niño-induced drought devastated crops and livestock.
Michelle Mokone, an agricultural economist at GrainSA, said this week that, due to the surplus this season, South Africa had to find export markets not only within the region but beyond Africa too.
"So far, South Africa has already exported 1.1million tons of maize, of which 67% is yellow maize and 33% white maize. The export destinations for white maize are mainly ... Botswana, Lesotho, Namibia, and Swaziland," she said.
These countries together account for 17% of total maize exports for the season, according to data from the South African Grain Information Service. The other importers of South African maize are Mozambique and Zimbabwe.
Kenya, which has been hit by severe drought, has emerged as the biggest African buyer of South Africa's maize. The latest figures indicate that Kenya has so far imported 204663 tons of maize from South Africa this season.
"There has also been a healthy demand of yellow maize mainly from Japan and Taiwan, and at the beginning of the season we saw yellow maize exports to North and South Korea," Mokone said.
This year's harvest is the largest in nearly three decades.© BusinessLIVE MMXVII
Business counts cost as Eskom battles power shortages
20/03/2019 - 09:14
State utility Eskom will make more power cuts this week as it struggles with capacity shortages that threaten to stymie President Cyril Ramaphosa’s efforts to boost investments and economic growth.
SA meat price inflation to remain subdued due to foot-and-mouth outbreak
19/03/2019 - 11:27
SA’s meat price inflation could remain subdued in 2019 as a ban in exports could increase local supplies, according to the Agriculture Business Chamber (Agbiz), an organisation that represents commercial farmers and agribusiness.
Manufacturing growth far lower than expected
14/03/2019 - 15:46
The manufacturing sector saw tepid growth at the start of 2019.
Rise in electricity tariff could spike inflation, says Reserve Bank
14/03/2019 - 09:08
SA’s electricity tariff increases could push the inflation rate up by 0.75 percentage point, Reserve Bank deputy governor Kuben Naidoo said.
SA business confidence falls to almost two-year low
13/03/2019 - 12:29
South African business confidence fell to the lowest level in almost two years in the first quarter, with more than two-thirds of respondents dissatisfied with current conditions.