Several months ago, it became evident that South Africa might need to import yellow maize due to a decrease in local production and a rise in maize prices, according to Dr André van der Vyver, executive director of the South African Cereals and Oilseed Trade Association (Sacota).
Van der Vyver said prices increased from approximately R3 800 in January 2024 to R4 700 in May 2024, a rise of 19%.
“This is particularly true for the Western Cape, parts of the Eastern Cape, and possibly the coastal areas of KwaZulu-Natal. The price in the Western Cape could be attributed to the high transportation cost from the inland areas to the broader Cape Town area,” he explained.
“It costs approximately the same to transport one ton of maize from South America to Cape Town than from the local inland production areas to Cape Town.”
Importing maize from South America
He said the first vessel of Argentinian maize arrived at the end of April 2024. “According to the National Agricultural Marketing Council, supply and demand estimates 383 000 tons of maize could be imported this season.
“It will, however, depend a lot on future price trends (global vs. local) and also on demand from Southern African Development Community countries. Until 2 August 2024 already 168 000 tons maize have been imported.”
Van der Vyver noted that the country cannot just import maize from anywhere based on local genetically modified organism (GMO) regulations.
“The list of cultivars approved in the exporting country must be synchronised with the local lists maintained by the department of agriculture. This is despite the fact that the imported maize will be transported directly from the harbour to the feed processing plants and is prohibited from being used as seed.
“After several weeks of back-and-forth communication, Sacota was pleased to receive confirmation from the department of agriculture on Monday that imports of Brazilian maize will now be permitted. This is an important step forward in ensuring food security for South Africa this season.”
He said having more than one international supplier is critical. He added that the Brazilian maize price will be a few dollars cheaper in the coming weeks, which could help to curb rising local prices.
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