The agricultural sector contracted at the much slower rate in the third quarter, supporting an outlook for a relatively brighter 2017 summer growing season, following the crippling drought. Food inflation has reached double digits because of the lag effect caused by lower production during the drought, compounded by a weaker rand earlier in the year. White maize for December delivery peaked at R5,226/tonne before easing to current levels of R4,005/tonne. Yellow maize for December delivery peaked at R3,954/tonne before easing to R3,220/tonne. Agriculture contracted 0.3% in the three months to September, marking the seventh consecutive quarter of decline, according to Statistics SA’s data. "These results come as no surprise as the sector continues to suffer the effects of the 2015-16 El Niño induced drought," said Wandile Sihlobo, head of economic and agribusiness intelligence at the Agricultural Business Chamber. "Overall, the significant shock came from summer crops, particularly gr...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.