PRODUCTION COSTS
Farmers fail to reap maize crop reward
Most farmers will still be unable to compete with international producers mainly due to lower yields, says economist
While consumers are set to benefit from the bumper maize harvest, it does not mean all maize producers will make profits. The Crop Estimates Committee said on Friday it forecast the 2017 commercial maize crop to be the biggest in the country’s history at 15,631-million tonnes. That is 101% bigger than the 2016 crop, which was the smallest crop since 2007. Maize prices have plummeted since then. The spot price for white maize was R1,713 a tonne on Friday. In May 2015, it was R2,717 a tonne and R5,035 in February 2016. Independent economist Fanie Brink said farmers were grateful for the high yield, but most would still be unable to compete with international producers mainly due to lower yields, higher production costs and financial support. Maize is produced throughout the country, with the Free State being the largest producer followed by the North West and Mpumalanga.
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