There are growing concerns about the outlook of South Africa’s agriculture due to a number of macro-level risk factors, not least of which is the current 2015/16 drought.
However, the International Grains Council (IGC) reminded us that droughts are usually interspersed with several good production seasons, when it released its monthly Grain Market Report (GMR) on July 1 2016. The July GMR gives a forecast of the 2016/17 production season and it is quite encouraging that South Africa’s 2016/17 maize production is forecast to increase significantly by 84% year-on-year (y/y) to 12.9 million tons. The IGC’s estimate is based on the assumption that climatic conditions could improve following two seasons of consecutive drought. Read more