In a significant move to ensure food security, the South African government has approved the import of yellow maize from Brazil, a decision driven by shrinking local production and rising prices. The National Agricultural Marketing Council (NAMC) had earlier estimated the need to import around 383,000 tonnes of yellow maize – a crucial component in animal feed – due to lower rainfall affecting the country’s maize-producing regions.
Brazil has recently emerged as the world’s leading corn exporter, surpassing the United States, according to data from the United States Department of Agriculture (USDA). This shift in global trade dynamics comes at a critical time for South Africa, where it has become more economical to source yellow maize from South America rather than domestically in certain coastal areas.
Cost-Effective Solution for Coastal Regions
While the price increases in yellow maize have stabilized since a sharp 19% rise earlier this year, it remains R275-R300 per tonne cheaper for animal feed manufacturers in the Western Cape, Eastern Cape, and possibly parts of KwaZulu-Natal to import yellow maize from Brazil. By early August, South Africa had already imported 168,000 tonnes of maize, according to the South African Cereals and Oilseeds Trade Association (Sacota).
The importation of maize is not straightforward, as South Africa’s stringent GMO regulations require that the list of approved cultivars in the exporting country aligns with the local lists maintained by the Department of Agriculture. Despite the complexity of synchronizing these lists, the Department of Agriculture, Land Reform, and Rural Development has confirmed that Brazilian maize imports are now permitted.
This move is crucial not only for stabilizing prices, but also for maintaining food security. With Argentina experiencing a harbor export strike, having Brazil as an alternative supplier ensures that South Africa can continue to access essential food commodities at competitive prices. As global maize prices may decrease in the coming weeks, the decision to import from Brazil could prove even more beneficial, helping to curb rising local costs and secure the nation’s food supply.