SOUTH AFRICA: Good rainfalls boost maize supply and reduce prices

Photo: IRIN

Good rainfalls have boosted the chances of a better maize crop

JOHANNESBURG, 29 March 2004 (IRIN) - Good rains and predictions of a better harvest have led to a considerable drop in the price of maize on South African markets. Earlier this year, drought and forecasts of poor maize production had led the government to declare seven of the country's nine provinces disaster areas. The South African Chamber of Milling's executive director, Jannie de Villiers, told IRIN: "We have had very good rainfalls since February - the situation has much improved." Both yellow and white maize dropped from between R1,300 (US $204) and R1,400 ($219.7) a tonne earlier in the year, to a current price range of R1,040 ($163.2) to R1,122 ($176.04) a tonne. Andrew Fletcher of Grain SA, an organisation of producers with a membership of more than 8,000 commercial growers, said the 2004/05 supply and demand figures, released for the commodity on Monday, indicated that the country would only have to import some yellow maize. According to these figures, South Africa is set to have a supply of more than nine million tonnes of maize at its disposal, against a total demand of a little more than eight million tonnes. "We have more than enough supply as far as white maize is concerned," Fletcher said. A yield of 4.55 million tonnes of white maize and 2.89 million tonnes of yellow maize is expected, in contrast to forecasts earlier this year of around four million tonnes of white maize and 2.67 million tonnes of yellow maize. The country will have to import 350,000 tonnes of yellow maize. According to figures released this week, South Africa has reserves of yellow maize (about 436,000 tonnes) and white maize (2.2 million tonnes) carried over from last year, boosting its total supply of maize to more than 10 million tonnes. Meanwhile, a previously released estimate that at least four million South Africans were in need of immediate assistance has been described as "grossly exaggerated" by the Disaster Relief Fund Board, which is monitoring the conditions in the drought-affected areas. Joe Molifi, secretary of the board, told IRIN that the Department of Social Development had received applications for financial assistance from only 143,000 households across the country. As and when their applications are processed, they will receive a monthly payment of R300 ($50) for a three-month period. Kgati Sathekge at the Department of Social Development said the government had been providing food parcels to 248,000 poverty stricken households since 2002. Many of these families - a total of 1.5 million people - are in the drought-affected areas. The Department of Agriculture has, in the meantime, started providing farmers with subsidised fodder across the country. An official at the department, Ikalaseng Kgakatsi, told IRIN that the government had incurred a cost of about R147 million ($22.6 million) in subsidising the fodder.