South Africa maize market is projected to register a CAGR of 4.5% during the forecast period (2021-2026).
Maize is the major field crop produced in South Africa and is considered as the staple food. As South Africa went into lockdown, panic buying of maize has occurred, leading to uncertainity in demand. Due to COVID-19 restrictions, exports have become complicated and exporters have suffered from decreased prices in the global maize market. Hence th global pandemic, Covid-19 has caused negative impact on South Africa maize market.
Maize production in South Africa has increased in the recent past. According to the Crop Estimates Committee (CEC), the maize production in Africa increased by 6.0% during the 2018-2019 cropping season, compared to the previous cropping season.
Though maize is cultivated across South Africa, few regions, such as Free State, Gauteng, Mpumalanga, and the North-West provinces, account for 87.0% of the overall production of maize in the country.
Key Market Trends
Increasing Maize Crop Production
According to the FAO, the area under cultivation for maize in South Africa was 1.9 million hectares in 2016, which increased to 2.3 million hectares in 2019, an increase of 21.0%. The Crop Estimation Committee (ECE) estimated maize production to be 12.5 million, which is an 11.0% increase in the production of maize in the cropping season of 2019-2020.
The major producing areas of maize are North West, Free State and Mpumalanga, while in Kwazulu-Natal, it is mostly produced for household consumption. Smallholder farmers prefer to produce white maize for their household consumption and sell it as green maize. On the other hand, yellow maize is mostly produced for animal feed and for brewing traditional drinks. The high price of the maize in the 2018-2019 cropping season and use of maize for variety of purposes are contributing for the increase in the production of maize in the country.
South Africa is a Major Exporter of Maize
South Africa is a significant exporter of maize, with an export volume of 2,585,157 metric tons, valued at USD 559,174.0 in 2020. According to UN Comtrade, the export of maize from South Africa was 1,000 thousand metric ton in 2016, which increased to 1,155 thousand metric ton in 2019. The decreased area under production during the 2018-2019 cropping season was the major reason for a 31.0% decline in the export of maize in 2019. Botswana, Namibia, Republic of Korea, Zimbabwe, Mozambique, Eswatini, and Tanzania are the primary importers of maize from South Africa. Zimbabwe alone accounts for 26.3% of South Africa's export market share.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support