( 5minutes read)
· South Africa’s agricultural sector is enjoying bumper crops 2020/21. Its winter barley and canola harvests are expected to be the largest on record. The wheat production is forecast to reach a 19-year high
· According to the Crop Estimates Committee, the wheat harvested during the winter period will increase to 2.15 million tons
· South Africa’s 2020 wheat plantings are spread over 509 800 hectares, down from 540 000 hectares, points the Agricultural Business Chamber of South Africa (Agbiz)
· That would mean the per acre productivity has risen appreciably
South Africa’s agricultural sector is enjoying bumper crops 2020/21. Its winter barley and canola harvests are expected to be the largest on record. The wheat production is forecast to reach a 19-year high. According to the Crop Estimates Committee, the wheat harvested during the winter period will increase to 2.15 million tons.
Analysts say record production rates are the direct result of favorable weather conditions in the Western Cape. South Africa’s 2020 wheat plantings are spread over 509 800 hectares, down from 540 000 hectares, points the Agricultural Business Chamber of South Africa (Agbiz). That would mean the per acre productivity has risen appreciably. There were other contributory factors like healthy soil moisture and adequate dam levels to feed farms in the Northern Cape, Limpopo and Free State. Despite this bumper crop, South Africa is still a net importer of wheat. Despite reaching a 19-year harvest high, the country will have to rely on approximately 1.5 million tons shipped in from the Black Sea region.
The bigger local harvest also won’t make local bread cheaper. Wheat prices largely depend on developments in the global market, along with domestic currency movements. Local wheat prices are determined by international prices, denominated in dollar terms. South Africa’s wheat import parity price is 16.8% higher than it was last year. This is because of the inclusion of the cost of delivery to the country’s primary harbors.
International wheat prices have been pushed higher by Chinese demand for imported grain, which is expected to reach record levels in 2021. Poor harvests in Eastern Europe and other parts of the world could also jack up the international wheat prices.
Statistics SA noted that the rising cost of bread and grains are in line with the basic inflation rate of 3.3%. However, other household surveys such as one conducted by the Pietermaritzburg Economic Justice and Dignity Group (PEJDG), claimed that bread prices have jumped by more than 14% in the last three months.
