The mid-summer drought and animal diseases resulted in reduced crop yields and hurt the poultry, piggery and cattle sectors
The 2023-24 production estimate has been lowered by 2% to 13.06 million tonnes, 21% down from the 2022-23 season
While we could see food price inflation remaining relatively softer in the coming months, there are some possible upside price risks on bread and cereals and meat.
But, for employment to be improved, the sector faces a number of problems that must be resolved including port inefficiencies, poor rail and road infrastructure, municipal service delivery, crime, and geopolitical tensions
Warmer, drier weather in the coming weeks would boost production in the Western Cape where two-thirds of South Africa’s wheat is grown.
White maize prices are likely to be 30% higher, with yellow maize up by 20%
Supplies of various crops globally are abundant, but the exchange rate could affect prices because South Africa imports large quantities of wheat, rice and palm oil
Maize prices are expected remain high for some time because of possible tight supplies later this year
La Niña’s return, heralded by the International Research Institute for Climate and Society, brings hope for Southern Africa but concern for South America
South Africa must remain vigilant to prevent outbreaks which are costly to farmers and harm the export market