Photo by: Duane Daws
Maize production in the current season, which ends in April, is estimated to reach more than 12-million tonnes, up from the 7.5-million tonnes in the previous season, which could bring some relief to consumers.
“The good rainfalls South Africa has experienced since October last year have restored agricultural crop production, particularly grains . . . If the rainfall continues and grain production improves as predicted, we are likely to see a drop in food prices, probably in the third quarter of the year,” Agri-SA senior economist Hamlet Hlomendlini said on Thursday.
An expected drop in maize prices is also likely to benefit the poultry industry this year.
“Maize is a critical factor of production in the poultry industry, as it is used to feed chickens. Essentially, what this means is that the costs of production in the poultry industry are likely to fall this year,” said Hlomendlini.
This, he noted, would certainly improve productivity in the industry, which will, in turn, lead to a drop in chicken prices as supply increases.
However, in terms of red meat, things are highly likely to be different. “The drought, which is still continuing in some parts of the country has unfortunately almost destroyed the country’s livestock farming sector,” said Hlomendlini.
Owing to the drought, scores of cattle and sheep died, while farmers were also forced to slaughter animals to prevent them from starving.
In 2016, more than 15 000 cattle a week were being slaughtered.
Hlomendlini further warned that local meat supply would likely dwindle in the year ahead, with farmers cutting down on the frequency of slaughtering owing to lower livestock numbers and farmers now focusing on rebuilding their herds.
“Meat imports might then be needed to meet local demand. This unfortunately will push up red meat prices substantially in 2017, and even beyond, until the local red meat supply improves,” he noted.