JOHANNESBURG, South Africa (Reuters) — South Africa will likely harvest 7.44 million tonnes of corn this year, 25 percent less than the 9.94 million tonnes reaped last year because of a scorching drought.
The government’s Crop Estimates Committee said it would be the smallest crop since 2007.
The corn crop will consist of an estimated 3.27 million tonnes of white corn and slightly more than 4.17 million tonnes of yellow, the CEC said in its maiden forecast for this year’s crop, which it provided a month earlier than usual to assist policy makers plan for potential shortages.
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The government has estimated that up to six million tonnes of corn may need to be imported this year, more than half of the country’s needs.
Domestic corn prices have been scaling all-time peaks as drought concerns mount. Last year, South Africa recorded its lowest rainfall levels since records began in 1904.
The central bank has repeatedly expressed concern about the drought and its impact on inflation, which accelerated to 5.2 percent in December from 4.8 percent in November.
The situation is especially worrying for the white variety of corn, which is the staple source of calories for many households and is not widely grown outside of the region. Yellow corn, used for livestock, can be easily sourced elsewhere.
An El Nino is expected to keep much of the corn belt hot and dry until the end of the growing season in April. Record-high temperatures were posted in many parts of South Africa earlier in January.
South African corn farmers are estimated to have planted 4.9 million acres for the 2016 season, down 25 percent from the 6.55 million acres they seeded last year because of the drought, the CEC said.
