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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
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The South African and Zimbabwean governments plan to increase corn imports as bad weather weakens the harvest in southern African countries.
The country's Grain Marketing Board will float an international tender to import 750,000 tons of the grain, Joseph Gondo, chief director of Zimbabwe's agriculture ministry.That amount would mark Zimbabwe's largest corn imports in a season in three years.
Zimbabwe's corn crop is expected to plummet 54% this year amid drought and after Cyclone Idai damaged crops in some provinces, according to the Agriculture Ministry. In March, a government official said the nation had seven months of grain reserves, including corn, and must begin imports to offset a potential deficit.
Neighboring nations, including South Africa, have also seen harvests curbed by dryness. The bulk of the country's corn use is for human consumption, mainly from white corn. That signals that Mexico and the U.S. may be among the suppliers in the tender, said Wandile Sihlobo, chief economist at South Africa's Agricultural Business Chamber. South Africa may have some grain available, and Ukraine could be a supplier if the nation sources yellow corn, he said.
Drought conditions could reduce the South African corn crop by 20% this year, presenting short-term demand shortfalls inthe region.
A drought in 2016 presented a similar dilemma for South Africa, typically a significant corn exporter. As a result, South Africa purchased more than 350,000 tons (13.7 million bushels) of corn valued at $71 million and more than 170,000 tons (6.7 million bushels) of sorghum valued at $28 million during the 2015-16 and 2016-17 marketing years.
This year, South African farmers are expected to produce 11.9 million tons (468 million bushels) of corn, down from last year’s 15.6 million tons (626 million bushels). The subsequent shortfall will drive demand for imports of both yellow corn for animal feed and white corn for a staple food known locally as pap or mieliepap. South Africa is expected to import more than 500,000 tons (19.6 million bushels) of corn.
