https://www.engineeringnews.co.za
Africa|Financial|Systems
Africa|Financial|Systems
africa|financial|systems

Winter and summer conditions impacted on grain producers – Grain SA

26th February 2024

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

Font size: - +

The current conditions in the summer grain regions are having a significant economic impact on grain producers, with the summer grain production regions experiencing major challenges with drought conditions.

The extreme heat and dry conditions caused the harvest to deteriorate much faster than initially expected, says industry organisation Grain South Africa (Grain SA).

"We have seen large areas where the damage is already irreversible," comments Grain SA CEO Tobias Doyer.

"Irrigated maize is also experiencing challenges owing to loadshedding and the heat conditions."

Additionally, the winter grain production season faced several challenges with excessive rain in certain areas resulting in losses in yields and placing financial pressure on producers in affected areas, he says.

These challenges are experienced at a time when margins on crops such as maize are already low owing to international supplies and international price pressure.

"This makes the recovery period of individual producers very difficult in challenging production conditions. Grain SA is very concerned about the impact of the drought and market conditions on grain producers.

"International competitors benefit from subsidised, affordable comprehensive insurance that provides them with a competitive advantage. Similar local systems could have substantially supported South African producers given the challenging production conditions," Doyer says.

Grain SA continuously monitors the production conditions and publishes a qualitative production overview.

"The National Crop Estimate Committee's first estimate, which will be published at the end of February, will be important to evaluate the national situation. However, the reality is that there are currently several individual producers who are facing significant losses owing to the drought and markets," said Grain SA chairperson Derek Mathews, who is also a producer in one of the areas experiencing significant challenges.

Grain SA will engage with the necessary role players to raise these challenges, and further suggests that producers who have already experienced significant challenges contact their input financiers at an early stage to ensure that necessary changes can be made in time, the organisation states.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
GreaseMax
GreaseMax

GreaseMax is a chemically operated automatic lubricator.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.185 0.24s - 159pq - 2rq
Subscribe Now