GM IMPORTS A FIRST FOR SA
THE GENETICALLY modified (GM) maize imports would create stiff competition among local maize farmers and cause the price of maize to drop further in the coming months, according to agricultural economists after the announcement that South Africa had approved imports of genetically modified maize from the US.
Paul Makube, a senior agricultural economist at FNB, said yesterday that with more maize imports coming in, the price of maize would change signalling a drop. “At the back of improved production levels in the country and importing genetically modified maize will further lead to more price reduction,” said Makube.
However, Wandile Sihlobo, the head of economic and agribusiness intelligence for the Agricultural Business Chamber, said yesterday that it was worth noting that the new season crop in the western parts of the South African maize belt remained fairly dry and there had not been much progress regarding planting. In areas that had planted, the new crop was under strain owing to heat and windy conditions.
“We expected above normal rainfall but it looks like we are going to have normal rainfall in the summer,” said Sihlobo.
South Africa was continuing to import maize in the midst of the genetically modified debate. He said that last week total maize imports for the week ending 25 November came in at 70 143 tons with 68 percent representing white maize from Mexico and 32 percent was yellow maize from Argentina. “This placed South Africa’s 2016-17 white maize imports at 555241 tons; 65percent of the seasonal import forecast. Moreover, the country’s 2016-17 yellow maize imports stand at 987272 tons; 53percent of the seasonal import forecast,” said Sihlobo.
Makube said even if the drought should come to an end local farmers should not be worried about who is going to buy their maize. “There was a time when the country was exporting more than importing. So if the drought has to come to an end and we have the genetically modified maize, a market will be created to our farmers and they should easily export their maize like they were doing in the past,” said Makube.
Makube said with the genetically modified maize expected to hit our shores in January, this would be good for prices of food in the country.
“We might see prices… coming down as the supply will be more. The increased production… the price in staple foods might come down sooner than expected,” he said.
Makube added that he expected food prices to come down in the second quarter of next year.