Farmers reap rewards after rain

THE back of the drought appears to be broken – at least temporarily – and South African farmers look forward to reaping the rewards.

SA is set to export nearly 3.8million tons of maize thanks to the recent good rains which could result in a near-record crop. Dirk Strydom, manager of Grain SA’s grain economy and marketing department, said Asia and Mexico could be among customers for the maize, depending on the type.

SA, which consumes about 10.5-million tons of maize a year, normally exports to nearby countries like Botswana, Lesotho, Swaziland, Zimbabwe and Malawi. “To break even on supply and demand, SA needs close to 3.8-million tons of exports,” Strydom said.

“However, historically we don’t export the full [surplus] and sometimes sit with a large carry-over stock level. The amount of exports will largely depend on logistical capacity.”

SA last enjoyed bumper exports (of 2.5-million tons) during the 2011-12 marketing year. Most was shipped through Durban.

Local maize is often of a higher quality than that from the US, for example, partly because it’s sundried and harder.

“It depends on the type of maize but Asian countries and Mexico will specifically be target markets,” Strydom said.

Grain SA, which represents commercial grain farmers, has been pleased with the recent rains in the summer-rainfall areas. “We’re looking at a possible second-largest crop of all time,” said Strydom.

“However, with this large crop, according to the crop estimates committee report, prices are under pressure and in some places below break-even levels.”

He said this created financial challenges for producers, especially because of droughts in previous years that left farmers in debt.

“This is why it’s so important that exports take place so that prices can stabilise above breakeven levels, otherwise producers will not obtain credit for the next season and that can then lead to lower production and higher food prices.”

In recent months, SA maize farmers have been concerned about possible outbreaks of the fall armyworm, a pest that has hit crops in the northern parts of the country.

The government says it’s monitoring the impact and spread of the fall armyworm.

It has caused widespread damage to crops in Zimbabwe, Malawi, Zambia, Namibia and Mozambique.

Agri SA’s deputy executive director, Johan Pienaar, said the armyworm situation seemed to be under control and the expected maize crop was testimony to this.