South Africa: Corn Revitalized, But Threatened

Avatar for Matt Hopkins By Scott C. Lucas|14 February 2007

According to a report from the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS), the country’s corn area dipped to 2 million Ha in 2004, lowering production from 11.7 million tons to 6.9 million tons in 2005, before resurging this season (corn planted in 2006 will be harvested in May 2007). The expanded area presents the potential for a 10-million ton production level, though USDA-FAS reports that the weather over the next few weeks will be critical to the crop’s success.

While rains were satisfactory earlier in the season, conditions are currently critical, especially in the western areas, with high temperatures and erratic rainfall. General rains are needed in the next two weeks to save the crop. With the possibility of a crop failure increasing, domestic prices are high and increasing, and may go through the roof if rain does not come soon. International prices are also supporting the current high price levels.

Planting of genetically modified (GM) corn increased market share from 29% of total South African corn planted in 2005 to 46% in 2006. The major trait remains insect resistance with 77% of the total GM corn, while herbicide tolerant corn now stands at 23%. In a related development, Monsanto’s application for the approval of the use of the stacked genes gained official approval and will be available for planting in 2007.