The announcement by Zimbabwe authorities last week to suspend all maize and maize meal imports with immediate effect is consequential. Zimbabwe is the most dominant maize export market for South Africa, about 20% of the maize volume went to Zimbabwe in the 2020/21 marketing year.
The impact of this announcement is that South Africa could have 2,8 million tonnes of maize surplus available for export markets. These available maize export volumes are on the back of a large forecast harvest, which Agbiz currently forecast to be 16,7 million tonnes.
However, the policy action on its own will likely have a limited lasting impact on South African maize prices. Prices are already at export parity prices and mainly underpinned by broader global developments than the regional policy changes.
South Africa could experience a marginal decline in prices as the harvest gains momentum. This will eventually affect the end consumers that might be carrying the burden of rising food prices, not because of the lower supplies domestically, but of the uncertain nature of global agricultural conditions at the moment.
Read more in the article compiled by Agbiz and published on FarmingPortal – https://www.farmingportal.co.za/index.php/all-agri-news/news-of-the-day/6327-will-zimbabwe-s-decision-to-ban-maize-imports-affect-south-africa-s-maize-market
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