SA grain planting season indicates sufficient stock for low-end price levels next year | Fin24

The grain and oilseed sector plays a big role in the growth of the total economy of South Africa, according to Jerry Maritz, chairperson of Agbiz Grain.

• A symposium hosted by Agbiz Grain this week focused on the storage aspect of the industry.
• Issues raised included how technology can be used to create greater efficiencies and, therefore, cost savings.
• Indications for the current planting season are that stock levels will be of such a nature that consumers can expect low-end price levels for the next year.

Currently the prospects for the planting season of grain and oilseeds in SA indicate that there will be sufficient stock to ensure prices of white maize commodities will stay at the low-end of price levels for the next year, according to Wessel Lemmer, general manager of Agbiz Grain.

That is good news for consumers who depend on white maize flour as a staple food. The same can be expected for yellow maize which is used in feed for the meat industry.

These were some of the points made at a virtual symposium hosted by Agbiz Grain this week. Delegates included producers, storage operators, animal feed manufacturers, traders and oilseed processors.

“We have, for example, developed a grain storage cost index to provide greater transparency. Also, the use of technology is shifting from previously mainly being on the production side, to now also in storage. This is to improve efficiencies by having advanced monitoring of grains in storage and to stay competitive in terms of costs,” says Lemmer.

Milling companies pointed out that they prefer a hard kernel of maize which offers better extraction and fewer losses. So, it is important to increase these types of efficiencies in the milling part of the value chain as that will lower the cost of bread and white maize meal especially.

“We believe there are opportunities in this regard for individual companies to do contract farming to meet specific needs,” said Lemmer.

The grain and oilseed sector plays a big role in the growth of the total economy of South Africa, according to Jerry Maritz, chairperson of Agbiz Grain.

Derek Mathews, chairperson of Grain SA, stated that they supported the introduction of new initiatives such as a super grade white maize, provided that the incentive reached the farm. 

“If the incentives reach the farm, farmers will produce what their consumers, such as millers, demand. Most of our farmers are astute businessmen and they know that principle very well,” said Mathews.