Agriculture
#Agbiz: SA has sufficient food supplies, price pressures on consumers likely to ease─── 05:00 Tue, 05 Jul 2022
As usual on the Agri Hour, Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa, Agbiz, provides a weekly insert about the latest on the global as well as South African agricultural markets.
He also provides more information about the latest developments in the agricultural sector.
See PODCAST below
This week, Sihlobo takes a look at South Africa’s 2021/22 summer crop harvest which is at decent levels. He adds that the soybean harvest is reaching a fresh new high.
“South Africa's 2021/22 summer crop harvest is in full swing across the country. The feedback from farmers about the yields they are receiving has been encouraging. Hence, we believe that the data that the Crop Estimates Committee (CEC) released this afternoon is unlikely to change much over the coming months.
“The CEC released its fifth production estimate and introduced minor adjustments from the previous month.
ALSO READ: CEC releases fifth production forecast for 2022
“For example, South Africa's 2021/22 maize production is estimated at 14,68 million tonnes, down by 0,3% from last month. This is on the back of a slight downward revision of white maize estimates, which is now estimated at 7,47 million tonnes, while yellow maize was adjusted upwards and is currently at 7,21 million tonnes.
“Essentially, this is down by 10% from the 2020/21 season crop but well above the 10-year average maize harvest of 12,80 million tonnes and annual domestic consumption of 11,80 million tonnes. Importantly, this means that South Africa will remain a net exporter of maize, which we anticipate to be about 3,2 million tonnes in the 2022/23 marketing season (note: this marketing year corresponds with the 2021/22 production season),” shares Sihlobo.
He adds that another important and most welcome adjustment in the data released was the 8% increase in South Africa's soybeans harvest for the 2021/22 season to a record 2,09 million tonnes.
“This will help lessen South Africa's reliance on soybean oilcake imports. As we pointed out in our note yesterday, in the week of 17 June 2022, about 1,9 million tonnes had already been delivered to commercial silos.
“Sunflower seed, unsurprisingly, was lowered marginally by 0,2% from last month to 961 350 tonnes. We suspected this would happen, given the relatively slow pace of producer deliveries. Still, the deliveries issue could be explained by the fact that the crop was planted late, and the harvest is in full swing.
“On 17 June 2022, about 594 236 tonnes had already been delivered to commercial silos. Aside from these major summer crops, the sorghum harvest is estimated at 140 820 (+3% m/m), dry beans harvest at 53 565 tonnes (-4% m/m), and groundnuts are at 54 900 tonnes (-22% m/m).”
