"This is a progressive step as regional maize [the local term for corn] supplies will be tight from the third quarter of this year into the first quarter of 2025," Wandile Sihlobo, the head economist at the Agricultural Business Chamber of South Africa, was quoted as saying.
The drought caused by El Nino has reportedly reduced South Africa's corn harvest by a minimum of 20% and Zimbabwe's by approximately 60%. Malawi, Zambia, and Zimbabwe have officially proclaimed states of national disaster due to the significant crop failures.
Typically, the three countries are capable of meeting most of their own needs, with occasional deficits being compensated by imports from South Africa, which has the largest production in the region. However, it may be challenging this year due to a decrease in South Africa's production.
Typically, the three countries are capable of meeting most of their own needs, with occasional deficits being compensated by imports from South Africa, which has the largest production in the region. However, it may be challenging this year due to a decrease in South Africa's production.
The price of white corn for July delivery reached an all-time high of 5,467 rand (about $287) per tonne on the South African Futures Exchange in Johannesburg on Monday due to increasing concerns over the availability of supply. It has had a 38% increase in value since the beginning of this year, according to the media.
Furthermore, this year's yellow corn yield is 946,250 tonnes less than last year, making it the lowest since 2021. As for white corn, its harvest fell even more — by 2.228 million tonnes compared to 2023 — less corn was produced only in 2019.
"I will be heading a delegation to Sao Paulo later this month to look for in excess of 300,000 tons of maize," reportedly said Tafadzwa Musarara, chairman of Zimbabwe’s Grain Millers Association, that is authorized to import corn.
The imports are expected to incur higher costs compared to those from South Africa because they will need to be shipped by sea and will take a longer time to arrive.
El Nino not only disrupts the agricultural sector of economy, but it also poses a threat to the stable supply of electricity. Last month, Zambia made a decision to implement electricity load shedding to ensure the ongoing stability of the national power grid, which was hindered by low water levels at Kariba Dam, the primary source of hydroelectric power in Zambia.