Miller Magazine Issue: 139 July 2021

99 Country Profile MILLER / july 2021 uting significantly to labor force of the country. NET EXPORTER OF CORN The grain industry in South Africa is comparative- ly advanced than in other African countries. Corn is the largest and most locally produced field crop, a dietary staple, a source of livestock feed, and an ex- port crop. Production of grain in 2021 expected to reach a near-record high, owing to excellent weather conditions and large plantings. South Africa is a net exporter of corn compared to other African countries. The 2021 corn production from both commercial and non-commercial sectors is forecast at 16.8 million tonnes, about 25 percent above the five year average and less than 1 million tonnes below the record output of 2017. The commercial consumption of corn (white and yellow corn) in South Africa increased, on average, by more than two percent per annum over the past ten years, driven by the increased food demand for corn as well as an increased animal feed demand. White corn, in the form of a meal, is the staple food for many South African households, especially for lower-income consumers, as it is a relatively in- expensive source of carbohydrates. On the other hand, yellow corn is used as the primary ingredient for animal feed, especially in the broiler industry. With South Africa’s downward trend in economic growth over the past 10 years and increasing un- employment rate, many consumers, especially low- er-income consumers, are shifting more to white cornmeal, as relatively inexpensive source of car- bohydrates. With the expansion in the local broiler industry to serve the local market, the demand for yellow corn as feed source also increased. Economic growth in South Africa is expected to re- main sluggish in the next couple of years, due to the impact of the COVID-19 pandemic and structural and policy constraints. As a result, USDA foresees that the abovementioned trends in the demand for corn will continue in the 2020/21 and 2021/22 seasons, with South Africa’s commercial corn consumption in- creasing by about two percent per year to 11.7 million tons and 12.0 million tons, respectively. “Under normal climatic conditions, assuming av- erage yields and taking into account the subsis- tence farming sector, South Africa’s corn crop for the 2021/22 marketing year could reach 15.0 million tons, which is a drop of nine percent from the 2020/21 season expected corn crop. However, South Africa should remain a net exporter of corn in 2021/22 mar- keting year, as corn supplies will still exceed local demand,” USDA said in its last report on South Af- rica. “South Africa should be able to increase corn exports by 40 percent in 2020/21 MY, after the pro- duction of a second consecutive bumper crop that will increase the availability of corn for exports. South Africa should be able to export around 3.5 million tons of corn in 2020/21 MY.” The bulk of corn exports are expected to be delivered to countries outside of Southern Africa, as neighboring countries are also anticipated to gather large harvests in 2021, reducing their import needs. WHEAT PRODUCTION Wheat is the second most important grain com- modity consumed in South Africa after corn. The an- nual per capita consumption of corn, in the form of