Categories: South Africa

Drought conditions could result in 30% rise in food prices

Continued dry weather could lead to substantial increases in food prices over the next 12 months, the executive committee of…

This followed a meeting of the executive committee in Pretoria on Thursday.

Grain SA said rain was needed in the next 10 days to avert a below average crop.

Damage to the maize crop, especially in the Northwest and Free State, was already visible, the statement read. In Mpumalanga and the Eastern Cape the grain crops were looking generally good, but follow up rain was crucial.

New season white maize prices have increased by R357/ton (17,5%) during the past ten days, Jannie de Villiers, CEO of Grain SA said in the statement.

“If we have a crop failure this year, we can see prices increase further by almost 30%,” according to Grain SA.

Grain SA pointed out that maize meal was the biggest staple food in South Africa. It also formed the basis for processed products like poultry, dairy and meat.

“Good rains in the next ten days could change the direction the crop is going at the moment, but currently it does not look good,” De Villiers said.

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