16 October 2023
By: Nico van Burick
Despite power and logistical problems, South Africa exported 3.65 million tons of maize in the 2022-23 season due to unexpectedly high demand for white maize.
An unexpected surge in demand for South African white maize led to deep-sea exports of more than 900 000 tons to seven countries and an additional 595 000 tons to African countries, said Konrad Keyser, chair of the SA Cereals and Oilseeds Trade Association (Sacota), at its annual meeting in Centurion.
Although yellow maize exports decreased by 800 000 tons from the previous season, the unexpected increase of 760 000 tons in white maize exports kept the export industry busy throughout the season, he said.
There was particularly high demand from Mexico, with almost 337 000 tons exported there. “The last trade between the two countries was in 2016-17 when South Africa experienced a drought and had to import white maize from Mexico. The last significant white maize export there was in 2013-14.”
Countries South Africa exported white maize to for the first time included Guatemala and Honduras, and for the first time in a decade white maize was exported to South Korea and Portugal.
Keyser said the South African maize industry continues to grow at an annual average of 7%, while domestic demand increases by only 2%.
“This makes it essential to have an active export market for maize so that farmers can remain profitable amid increased production.”
Regarding yellow maize, South Africa exported about 2.15 million tons in the 2022-23 season, of which about 1.93 million tons were deep-sea exports.
A significant milestone was the first shipment of yellow maize to China in April 2023 after a protocol was signed between the two countries in December 2019.
Keyser also referred to the soybean industry, which is bursting at its seams with another expected record harvest of about 2.75 million tons this year, which will be 23.6% more than the previous season’s record harvest of 2.23 million tons.
“If production continues to grow – as expected – South Africa will need to identify increasingly profitable export markets to accommodate the increase in production.”
Rail transport
In his report, Keyser highlighted rail transport as one of the major problems hindering exports, and said Sacota holds monthly meetings with Transnet to try to improve the situation.
“Although incidents like cable theft have an impact, the emphasis is more on efficient scheduling and loading of cargoes than capacity issues.”
Where Transnet could transport 55 000 to 70 000 tons of grain monthly two years ago, it now averages only 13 000 tons. This is while exports average 268,000 tons.
In March, Sacota proposed the reinstatement of a block train to transport grain in bulk by rail and expedite the unloading process. Currently, it can take up to 30 days for a train to reach the port.
The trial run started on July 15 with empty wagons departing from Durban, loading maize at Daniëlsrus and Reitz then returning to Durban for unloading. The entire process took eight days, which is unprecedented for rail transport these days.
Sacota members also offered to assist with cameras to deter cable thieves on routes used by block trains. Keyser said if the grain transport process can be expedited, Sacota members benefiting from it will contribute money to the camera project.
Two such cameras have been in operation for 12 months, during which there have been no cable thefts in the area. The cameras are monitored from the farmers’ security centre in Bethlehem.
“Efficient rail transport for the export market is essential if South Africa wants to be internationally competitive. Rail transport is not only cost-effective, but the infrastructure for loading and unloading is also designed for it,” said Keyser.
He mentioned that road transport leads to the deterioration of roads and accidents. Dr André van der Vyver, executive director of Sacota, said road transport increases costs from R220/t to R250/t.
