Global markets continue to support high maize prices
Maize prices remain high – despite the expectation of a bumper harvest. BFAP’s Tracy Davids and Wandile Sihlobo (Agbiz) unpack some key reasons in this article – first written for Business Day – suggesting that global drivers are the major reason for persistently high prices domestically. The biggest factor is strong import demand from China, to feed its rapidly expanding pig herd, at a time when global stocks are dwindling following below par harvests. Implications of persistently high prices include higher than expected food inflation, as well as strained profitability in livestock production, where maize is a major feed component.
Read the full article here: https://www.businesslive.co.za/bd/opinion/2021-05-24-maize-prices-remain-high-as-exports-and-feedstock-take-toll/
