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Agriculture

South Africa: Price hike for yellow maize on backdrop of climate doubts

Wednesday, 04 November 2015 12:35

(Ecofin Agency) - In South Africa, the price levels of yellow maize reached today their highest for this year. This variety of the cereal, which is essentially used for animal feed had its price spike at 3040 Rand per ton, which represents an increase of 41% compared to its level at the beginning of the year.

Main reason given for this increase: the risk of a new drought. This fear was compounded as the weather service of the rainbow nation has just announced the effects of the El phenomenon, which generally comes with a range of climate disturbances in the southern hemisphere, would spread until the next autumn.

South African farmers are considering planting 2.55 million hectares for the 2016 season. This area is the smallest seeded since 2011. During the last season, the country had its crop reduced by a third compared the previous season.

According to Reuters, this situation which exposes the most vulnerable households to food insecurity could have repercussions on the stands of the African National Congress (ANC), main political party of the country, during the next local election which should take place next year.

 
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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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