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Little joy over massive maize crop

 Bloemfontein - The year’s good maize harvest is no reason for farmers to laugh all the way to the bank.

On Thursday the fourth forecast for summer grains for the current production season was announced.

The expected size of the commercial maize harvest is 13.3m tons – 1.64% higher than the previous forecast.
This is the second-biggest maize harvest in the past 20 years.

Farmers had expected a dry year and consequently planted more maize. When the drought did not materialise the massive crop forced the maize price down to export-price levels.

It does not seem very likely that the price will recover soon.

Domestic consumption is slightly more than 9m tons and SA's export capacity is between 2.4m and 2.5m tons.

This leaves a surplus which is currently depressing the whole crop price, explains Professor Johan Willemse, an agricultural economist at the University of the Free State.

The other factor that can hurt the price is doubts about the quality of the maize.

The farmers have not been harvesting yet, because conditions have been too wet and there has been no frost – so the quality is still unknown. But there are indications that it might be inferior because of the damp conditions, says Willemse.

- Sake24.com

For business news in Afrikaans, go to www.sake24.com.

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