South Africa Maize Market
South Africa is the most active and the largest producer of maize in the Southern African region. South Africa alone accounted for 42% of Africa’s maize trade, with 69% in the form of imports in 2015. South Africa’s maize production slumped by 30% this year, and it needed to import 770,000 metric tons of maize from outside the African continent.
FY 2015-16 is the worst year for the South African maize trading business. Until 2014-15, South Africa was the net exporter of maize, however, this year, because of the worst drought conditions, the country has had to turn into a net importer of maize. This is the first time in South African trade history that it will import around 770,000 metric tons of maize (in 2015-16). Out of total the 770,000 metric tons, 700,000 metric tons of white maize and 70,000 metric tons of yellow maize will be imported. South Africa will have to bear a total maize import cost of USD 140 million this year. The continuous heat waves and drought have affected the whole country severely and have resulted in a decline in maize production and a 4% (2.55 million hectare) decrease in the total maize cultivated area.
According to South African Grain Association, the total maize production in the summer of 2016 will be 7.7 million metric tons, which is 28% lesser than the average output of maize in the country. The other grains are also likely to get affected by the El Nino effect, resulting in a total 25% of grain production in 2016. The decline in average supply is likely to result in an increase in maize prices from 35% to 85% in 2016. Large imports of maize from outside the African continent will also have a negative impact on the South African currency. The value of the South African rand will fall compared to the dollar, and this condition is likely to make maize import more costly for South Africa in 2016.
In 2016, the availability of maize for food, feed and other industrial uses is expected to become complex. The South African population uses white maize as a staple food and yellow maize as animal feed.
Of the total maize traded in the world, 95% is yellow maize and the remaining 5% is white maize. South Africa is highly dependent on the United States and Mexico for white maize imports. Because white maize is used as a staple food in South Africa, the country is expected to import the commodity in large volumes from North American countries in 2016. As a consequence of the newly harvested maize entering the market in the summer, the maize prices are decreasing slightly. However, this trend will not continue in future and the overall maize price is expected to elevate in 2016.
The South African maize crop market report covers the following information –
- Crop production
- South African consumption
- South African trade (export-import) scenario and statistics
- Price trend and seasonality of the crop
- Future outlook of the crop market
Stakeholders who would benefit -
- Crop growers
- Enterprises providing agricultural inputs
- Crop processing companies
- Crop importers and exporters
- Investors/research institutions interested in the crop market
1.1 Definition of the Market
1.2 Research Methodology
2. Executive Summary
3. Market Overview
4. Market Segmentation
4.1 Production Analysis
4.2 Consumption Analysis
4.3 Market Value
4.4 Price Trend
4.5 Import Market Analysis by Value
4.6 Import Market Analysis by Volume
4.7 Export Market Analysis by Value
4.8 Export Market Analysis by Volume