The South African Cereals and Oilseeds Trade Association (SACOTA) held their AGM at the Centurion Golf Club on 18 September. A record number of 150 participants, representing all member companies, government and several industry guests, attended the AGM.
One reason for their interest is that due to the drought last season South Africans have seen sharp increases in the price of maize and soybeans. This is despite lower international prices and a stronger rand. Prices increased by approximately 20% between January and May 2024 and although prices pulled back somewhat from their highs, it is not impossible that we see another spike. This will depend on local demand and demand from neighbouring countries who were also affected by the drought. Another factor is the final size of the crop for which the harvest was completed in August 2024. Some maize and soybeans are still being stored on-farm, which makes it difficult to finalise the number.
In his address, chairperson of SACOTA, Dr Konrad Keyser, highlighted the importance of easy access to imports. SACOTA’s multi-international trading members have already imported nine vessels of maize totalling 205 000 tons, as well as soybean cake, with more imports on the way. The National Agricultural Marketing Council (NAMC) estimates maize imports to be 383 000 tons, while some private estimates are even higher. If not for these imports, food security would have been under threat and prices much higher.
The guest speaker, Prof. André Jooste, a council member of the NAMC, discussed the role of the NAMC, the Department of Agriculture, and the industry in ministerial and government policy. With the current dependence on imports, the topic could not have come at a better time. He emphasised the importance of pro-active engagements between industry and government (regulators).
Opening the South African market to cost-effective imports from the most competitive exporting countries is crucial to curtail food inflation in the grain and oilseed industry as well as secondary industries such as the broiler industry. The latter is the cheapest form of animal protein. Maize and soybean cake comprise approximately 80% of their input cost. Currently, the preferred suppliers are Argentina, Brazil and the USA.
Dr André van der Vyver, executive director of SACOTA, welcomed the guests and members, and in particular the representatives from the Department of Agriculture. He emphasised the importance of working together as one team for the benefit of all South Africans.
