South Africa’s grain production is off to a decent start in marketing year 2022/23. Above-average rains over most parts of the summer rainfall production area during November and December enhanced crop plantings and provided conducive growing conditions.
The Bank of Ghana restricted access to foreign exchange for a select list of imported products, including rice, poultry, vegetable oils, and pasta, among other items, to implement a directive from the President of Ghana.
Post forecasts that South Africa’s corn area will stay flat in marketing year 2022/23. The current high input cost environment and an upsurge in soybean plantings are deterring any bullish outlook in expanding corn area, despite record high commodity prices and three consecutive bumper crops. Higher farming input costs are escalating the risk of production in a weather-dependent industry.
The Government of Ghana (GOG) is pursuing the creation of a Grains Development Authority (GDA) to, among other objectives, further the development and regulation of the market for domestically produced grains and legumes.
The sharp upsurge in the cost of farming inputs for corn farmers in South Africa intensified the risk of production in a weather dependent industry, despite record-high commodity prices. As a result, Post forecasts that South Africa’s corn area will stay flat in marketing year 2022/23. However, South Africa should maintain its status as a net exporter of corn under normal weather conditions.
On June 10, 2022, the Government of Kenya issued additional tariff exemptions for new feed ingredients to address rising feed costs. Duty exemptions were granted for genetically engineered Bt. cottonseed cake, distillers’ dried grains with solubles...
Forecasts of below average rainfall and extended dry spells in most parts of the country by the Ghana Meteorological Agency, looming shortage and soaring global prices of fertilizer, and a further cutback on fertilizer subsidy rate are set to erode the grain production gains of GOG’s Planting for Food and Jobs program.
After exceptional consecutive production seasons of solid growth supported by relatively high commodity prices and favorable weather conditions, wheat and corn producers in South Africa are optimistically looking forward to the 2022 production season.
Kenya MY2022/23 corn production is forecast at 3.2 million metric tons (MMT), largely unchanged from MY2021/22 due to high fertilizer prices and farmers switching to alternative crops such as sugarcane.
South Africa had an excellent start to the 2021/22 MY, with carry-over soil moisture and widespread rains that led corn producers to start plantings two to four weeks earlier than usual. Excessive rainfall during December to early January caused damage to planted crops in some areas that could impact crop size, although the extent will only become clear over the next few months.
After last season’s second consecutive bumper corn crop, the positive outlook for the South African grain industry will continue in the 2021/22 MY as evidenced by a 30 percent upsurge in tractor sales and the intention of commercial producers to maintain a corn area of 2.7 million hectares.