Corn production in South Africa projected to increase

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Corn production in South Africa projected to increase

Corn production in South Africa is projected to remain at a high level in marketing year 2022-23 at 15.6 million tonnes, up 2% from the previous year and marking the third consecutive year of topping 15 million tonnes.

The projection is according to a Global Agricultural Information Report from the Foreign Agricultural Service of the US Department of Agriculture (USDA). Given the extended period of high commodity prices, output would likely be even higher if not for the also record-high farming inputs that have kept the country’s corn planted area flat.

Challenges

“The current high input cost environment is deterring any bullish outlook in expanding corn area, despite record-high commodity prices. In addition, (FAS) foresees that the positive trend in soybean plantings will continue in 2022-23, affecting an expansion in corn area,” the USDA said.

With another large corn crop expected albeit well short of the record output of 17 million tonnes in 2020-21, South Africa is expected to maintain its status as a net exporter of corn, according to the report. The USDA projects 2.5 million tonnes of South African corn exports in 2022-23, up from 2.2 million the previous marketing year. The report lists Taiwan, Japan and Vietnam as the three largest markets for South American corn.

In general, South Africa has a highly diversified agricultural sector which includes the production of all the major grains (except rice), oil seeds, deciduous and subtropical fruits, sugar, citrus, wine, most vegetables, cattle, dairy, pigs, sheep, broilers, ostriches and eggs.