One challenge that has been
worrying many people in South Africa's agriculture sector recently is the
excessive rainfall across the country.
While the rains are always
welcome and help boost crop production and grazing veld, we only need them for
a specific period – during crop growing stages – and in moderation.
The summer grains and oilseeds
have matured across South Africa, and some areas are ready to harvest. However,
the activity couldn't gain momentum because of the excessively wet conditions.
Fortunately, the weather
outlook appears to be improving. The weather forecast
for the next two weeks suggests that we could see some sunshine, which will aid
in drying the fields and enable field work and harvesting over time.
Importantly, there will be clear skies in the second week of May, and I hope
the following weeks will continue to have such an outlook.
However, this does not alter
our view of the potential harvest size; it primarily affects the quality of the
crop in certain areas. On April 30, we are due to receive the Crop Estimate
Committee's (CEC) third production forecast for summer grains and oilseeds,
which typically provides a stronger indication of how the season's harvest will
unfold as the crop has progressed, mainly past the pollination stage.
The outlook for the 2024-25
summer grains and oilseeds remains broadly positive. At the end of March, CEC
projections placed South Africa's 2024-25 grains and oilseed production at 18,0
million tonnes, up 16% from the previous season. This comprises maize,
sunflower seed, soybeans, groundnuts, sorghum and dry beans. While some regions
planted late by roughly a month, the crop benefited from the excellent rains in
March when it was in the pollination stages.
Moreover, although the weather
has been harsh over the past few weeks, I remain optimistic that this will be a
recovery season for South Africa's agriculture (including field crops,
horticulture, and livestock).
We have already seen estimates from the Pretoria office of the United
States Department of Agriculture (USDA) that publish slightly higher estimates
for some grains than those of the Crop Estimates Committee.
The USDA forecasts South
Africa's 2024-25 commercial maize production at 15,3 million tonnes, up 20%
from the previous season. Meanwhile, the CEC forecasts South Africa's 2024-25
maize harvest at a slightly lower figure of 14,6 million tonnes, up 13% year-on-year.
There are also differences in
projections of the non-commercial maize harvest, with the USDA presenting a
somewhat more optimistic figure. Thus, we believe that there remains a
likelihood that the CEC could adjust its figures slightly.
Again, the one significant risk
for the 2024-25 summer grains and oilseed is the quality challenges in crops in
regions that are planted early in the season.
The improving weather prospects
will only ensure we don't see notable crop quality damage.
We will learn more about its
extent when the harvest gains momentum in the coming weeks and months. The
encouraging news so far is the improving weather
conditions.
Email: wandile@agbiz.co.za
0 COMMENTS
LEAVE A COMMENT