Lower maize prices bring relief to SA consumers and farmers

SOUTH Africa has entered a period of lower maize prices, offering relief to consumers, livestock farmers, and poultry producers following a bumper harvest that has boosted domestic supplies, according to the Agricultural Business Chamber of South Africa (Agbiz).

- YOGASHEN PILLAY

Agbiz chief economist, Wandile Sihlobo, said the decline in prices marks a favourable phase for households and key food-producing sectors.

"Looking at South Africa's white maize spot prices they are down by over 35% from a year ago, trading at R3 595 per ton. In the case of yellow maize, the spot price is down by over 20% from a year ago, trading around R3 450 per ton," Sihlobo said.

He said the notable drop reflects improved supply conditions in the domestic market. "We have a sizable harvest in the 2024-25 season. The Crop Estimate Committee forecast South Africa's maize harvest at 16.12 million tons, which is 26% higher than the crop for the 2023-24 season."

South Africa's annual maize consumption is estimated at about 12 million tons, meaning the country will remain a net exporter with a healthy surplus.