He says during the 2018/19 production season, most summer crop harvests fell by double-digits because of drier weather conditions at the start of the season. Maize, soybeans and sunflower seed production are respectively down by 12%, 21% and 24% year-on-year (y/y ), to 11.02 million tonnes, 1.17 million tonnes and 680 940 tonnes.

Following the South African Weather Service's predictions released recently the outlook is positive. It is forecasted that the central and eastern parts of South Africa could receive above-normal rainfall between November 2019 and January 2020. The weather outlook for the north-western regions of the country is unclear at this point, but there could be normal showers. Sihlobo says assuming good weather conditions, there could be a notable upswing for the upcoming summer crop levels.

The International Grains Council’s preliminary estimates for South Africa’s 2019/20 maize production are 12.8 million tonnes, which would be 16% higher than the current season and slightly above the five-year average production of 12.3 million tonnes. Sihlobo also says Agbiz welcomes National Treasury's recent economic policy discussion paper which rightly highlights that “several features of agriculture make it important in the pursuit of inclusive, labour-intensive economic growth."

Here is Sihlobo…

See attached PODCAST

OFM News