Some food prices could fall after good rain

Good rains since October have resuscitated the production of agricultural crops, especially in grain areas around the country. This is expected to bring some relief to consumers, according to Agri SA Senior Economist, Hamlet Hlomendlini.
He added that maize production in the current season (which ends in April) is estimated to reach more than 12 million tonnes compared to the 7.5 million tonnes production output of the previous season. He said if the rainfall continues and grain production improves as predicted, consumers are likely to see a drop in food prices, probably in the third quarter.
However, on the red meat side, prices are likely to rise. The drought, which is still continuing in some parts of the country, has almost destroyed the country’s livestock. Farmers are expected to cut down significantly on slaughtering and are focusing on rebuilding their herds, which might take up to three years. Thus, the local meat supply will be significantly less than normal and meat imports might then be needed to meet the local demand.