I'm concerned
about the Southern African region's maize supplies in the 2023/24 production
season. With Zambia, the second largest maize producer in the area, after South
Africa declared a drought disaster, there will be increased pressure on South Africa to
supply maize to the neighbouring countries.
The issue will
be white maize for human consumption in most countries.
South Africa's early production forecasts indicate that we, too, have a
challenge. For example, the CropEstimate Committee places South Africa's 2023/24 white and yellow maize harvestat 7,0 million tonnes (down 17% y/y) and 7,3 million tonnes (down 8% y/y),
thus placing the overall maize production estimate at 14,3 million tonnes (down
13% y/y).
The challenge for maize
is the possible poor yield because of dryness in some regions, as the area
plantings are higher than in the 2022/23 season.
The excessive heat and
scant rains across South Africa are a significant concern for farmers,
particularly in the summer grains and oilseed-producing regions. The 2023/24
summer crop season started on favourable footing.
We received widespread
rains, which was unusual in an El NiƱo season, which would typically start with
drier weather conditions.
Those good early-season
rains led us to believe the country would have a decent harvest in the 2023/24
production season. But this view has now changed. We worry about possible poor
harvests if there is no widespread rain during these closing days of February
into the first week of March.
While this expected
maize harvest of 14,3 million tonnes is significantly lower than the previous
season, if it materializes, it would still meet South Africa's annual maize
consumption of roughly 12,00 million tonnes, and the country would remain a net
exporter of maize, although a much lower volume than the previous years.
But if the
region struggles with drought, South Africa's possible small surplus may be too
tight to meet regional needs.
There are also
drought concerns in neighbouring countries such as Botswana, Lesotho and
Zimbabwe.
Still, there is
profound uncertainty about the maize harvest size currently in South Africa.
The March production forecasts of the Crop Estimate Committee will give us a
better picture. For now, we all pay for rain, and the recent Crop Estimates Committee's
data possibly did not factor in the disruption currently caused in recent days
by the excessive heat in various regions of the country.
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