South African Grain Market - Growth, Trends and Forecasts (2020 - 2025)

South Africa is one of the major exporters of corn in Africa. Barley, sorghum, and rice are some of the other major grain crops grown in the country. White and yellow corn are the two major grown corn varities in the country. According to International Trade Centre Statisitcs, in 2018, the total exports of maize from the country were 2.23 million ton, compared to 1.02 million ton in 2016. Bostwana, Nambia, Mozambique, and Eswatini are some of the major importers of South African corn. The open free trade agreements made by South African government with other African countries are promoting the growth of the for grains in the region. The government is also making agreements, such as The Economic Partnership Agreement (EPA) with the European countries, to expand its presence across other regions. 

The demand for various agricultural products, which incldues grains in the country is increasing. To address this increasing demand, South Africa is moving towards advanced agriculture model. The country is increasing its investments in the agricultural inputs market. Significant investments are being made by the farmers in the agricultural machinery and agrochemical sector of the economy. Such type of productive investments by the farmers in the agricultural inputs market is estimated to drive the agriculture sector.​ As farmers are increasing investments in the inputs market, private agricultural input companies are investing heavily in R&D, to develop advanced technologies. In terms of mechanization, the studies undertaken by FAO also revealed that the level of mechanization in the South Africa is slowly moving from hand driven technology to power sources. Therefore, the mechanization can directly and indirectly bridge the yield gap, by reducing the harvest and the post-harvest losses, thereby driving the market growth for grains in the region.