However, this is expected to contract in coming months, according to a report released by South Africa’s agricultural business chamber Agbiz.

The sector comprises five sub-sectors, namely dairy products, grain mill products, beverages, meat, fish, fruit and so forth, and other food products. Agbiz states the largest output was recorded in beverages, up 11,4% year-on-year, with grain mill products up nearly 4% and fresh products like meat, fish, fruit and so forth up nearly 2%. Production of dairy products declined 1.3% year on year.

Agbiz economists say the grain mill product figures support their view that South Africa’s maize demand could remain strong regardless of the higher prices.

They expect output to contract in coming months due to an expected decrease in cattle slaughtering and milk/dairy output.

Agbiz quotes the Red Meat Abattoir Association as saying more than 231 000 cattle were slaughtered in May, down 2% from April. Slaughter stats are expected to decrease, especially around spring when the grazing fields recover and farmers start to rebuild their herds.

The report can be downloaded here:

20160713 Food and beverages manufacturing output remains positive.pdf

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