June 6, 2007

South Africa to import 1 million tonnes of corn for animal feed demand

South Africa will import about one million tonnes of yellow corn this year, mainly for animal feed in the coastal areas.

The volume is enough to meet local demand consumption despite being lower than the previous crop seasons, according to industry officials.

Yellow corn makes up about 25 percent of the feed input costs of cattle feed lots and accounts for 50 percent of input costs for the broiler chicken industry.

The National Chamber of Milling (NCM) said this week people are shifting to more wheat products from cheaper corn meal.

According to the Animal Feed Manufacturers Association, about 70 percent of animal feed is for the poultry sector.

John Purchase, chief economist at Grain SA, said "carry-over" corn from the previous season amounted to 2.1-million tonnes. Together with the estimated crop of seven million tonnes and imports of one million tonnes, this meant a total of 10.2 million tonnes would be sufficiently available to meet demand.

Francois Strydom, executive director and director of operations at Senwes, said a crop estimates committee put the corn crop at just over seven million tonnes at the end of April - compared with 6.6 million tonnes in the previous season and more than 11 million tonnes the year before that.

NWK, a grain co-operative in North West Province, said the seven million tonnes was about one million tonnes short of consumption. After a drought earlier in the season, frost affected late plantings in the province. The carry-over, however, should be sufficient to meet demand of 8.5 million tonnes.