South Africa Maize Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: South Africa Maize Market (2024-30):

South Africa Maize Market size was valued at around USD 2.85 billion in 2023 and is estimated to reach around USD 3.84 billion in 2030, with a CAGR of about 4.42% during the forecast period, i.e., 2024-30. The South Africa Maize Market has been experiencing steady production growth and is marked with a 6.0% annual growth in the production of the cereal for human consumption during the 2020-2021 cropping season, according to the Crop Estimates Committee (CEC). This growth has ensured that maize has become the leading field crop and the main staple carbohydrate crop in South Africa today. Holding the largest maize production in the continent, South Africa has huge yields from its prime farming areas, such as the North West, Free State, Mpumalanga Highveld, and KwaZulu-Natal Midlands areas.

Moreover, white maize, which is human-edible, amounts to over half of the total production of the crop in the country. The dominance is in the Free State, Mpumalanga, and North West provinces of the country, where the three provinces contributed 84 percent of the total production. National production in the 2020-2021 period was 84%, with further emphasis on geographic bases enhancing the reliability of this sector.

The volumes of maize that are produced have led to various application opportunities for the by-products of maize in various sectors. In South Africa, these by-products find their application in animal feeds, the food manufacturing industry, textiles and pulp and paper industries, pharmaceuticals, and the distilleries industries. Apart from improving value-added to the end users, integration of the by-products into these industries increases the market demand for maize. Allied markets such as bread, livestock, feeding, and others are also growing, and this has given maize a bright future in terms of demand. For instance,

• In 2022, as per the South African Grain Information Service (SAGIS), the field crop production volume for maize in 2022–23 increased by 881,000 tons (5.5%).

This market demand is projected to be the growth avenue for maize production and product development to feed the growing market for maize in South Africa. Thus, it can be predicted that with the enhanced production and demand of the said product across the globe, there would be substantial growth in the South Africa Maize Market during the forecast period.

South Africa Maize Market Driver:

Maize as a Cost-Effective Feed Alternative Driving Market Demand in South Africa – In South Africa, the reliance on imported protein-rich raw materials for animal feed production has resulted in huge costs of feed-making manufacturing, particularly in the dairy sector. Some of the essential imports like sunflower oilcake and soybean meal for manufacturing processes have in the recent past recorded considerable hikes in their prices. This pressure is felt mostly by the producers in the dairy sector, owing to increased feed costs. Therefore, dairy producers have shifted towards qualities such as maize, which, based on past experiences, gives better returns. For instance,

• In 2021, according to SAFEX, White Maize prices decreased by 5% when compared to the previous year, while sunflower seed prices and wheat prices increased by 28% and 27%, respectively.

Therefore, maize, abundantly available in South Africa, replaced other grains that were costly when it came to the production of feed. The readily available and relatively cheaper animal feed ingredient made maize a better alternative in the formulation of feeds compared to imported feeds. The change to maize-based diets also helped increase the use of local agricultural commodities.

In addition, this strategic change that has seen the grain take on a new dimension has also been anchored by increased efficiency in milk production despite a decline in the number of dairy farms in the country. Thus, as annual rates have shown in the previous years, the feed’s cost-efficient characteristic has made it possible for many dairy producers to employ the resource proactively, and it is projected that the use of maize will increase in the upcoming years. This evolving dynamic emerged as a key market driver for maize, offering a sustainable, locally sourced solution to South Africa's animal feed challenges.

South Africa Maize Market Opportunity:

The Rising Opportunity for Market Growth with Improving Adoption of Biofortified Maize in South Africa – An opportunity, in particular, that has potential within the maize industry of South Africa and that could be expanded to include the cultivation of biofortified maize crops. This position entails the development of a maize variety that is genetically modified to possess a higher content of nutrients like vitamin A, iron, and zinc. Biofortification, as exemplified by the release of vitamin A-enriched maize, helps meet pressing public health needs associated with a lack of micronutrients in human diets, particularly in rural and, further, impoverished communities. By incorporating biofortified maize into the toolbox, South Africa can effectively uphold and strike a balance for malnutrition and greatly enhance the government’s value proposition for its maize portfolio.

For this opportunity to be fully utilized, there needs to be support from both the government and the business fraternity to fund research about agriculture. This involves financing research to put biofortified varieties in suitable growing conditions in South Africa, supporting extension services to promote best practices among farmers cultivating the crops, and promoting information sharing, awareness, and promotion among consumers to encourage the uptake of the crops. In this respect, partnerships with other international health and agriculture-oriented organizations would only contribute to the technology and funding required to make it sustainable and profitable. Overall, such an approach would help position South Africa as an ambitious leader in nutrition-sensitive agriculture, which, in turn, would directly address public health and further open up agricultural export opportunities.

South Africa Maize Market Challenge:

Infrastructural Limitations as a Formidable Challenge for South Africa Maize Industry – In South Africa, the maize industry has been significantly hampered by inadequate rural infrastructure, particularly in the sectors of transportation and storage. This was primarily due to the availability and conditions of the rural road network, which posed a major challenge to the transportation of maize from production zones to markets. This infrastructure deficit not only increased the cost of moving maize to other regions but also stretched transit time and, possibly, would negatively impact the quality of the grain in the destination regions. This has been compounded by a couple of storage facilities, one of the necessities for the conservation of the grain after harvest. Many of the existing infrastructure and buildings failed to meet the standard and were affected by pests, leading to drastic increases in losses.

Thus, these are not only logistics issues but fundamental problems of infrastructure, as these derivatives have a direct impact on the farmer’s profit by decreasing maize that would meet the quality standards of the market. Consequently, the overall revenues from maize sales, resulting from a decreased amount of maize in circulation, have been on the decline in the past few years.

Furthermore, such logistics deficiencies threaten the competitiveness of the South Africa Maize Market and its domestic supply. These challenges arising from infrastructural and developmental hindrances intertwine to limit the operational performance and profitability of the maize market and have been affecting the functionality and stability of the market.

South Africa Maize Market Trend:

Embracing Precision Agriculture Revolutionizing Maize Cultivation in South Africa – A significant aspect experienced in the South Africa Maize Industry has been the increased use of precision agriculture technologies by maize producers. This trend builds on the breakthroughs made in GPS navigation technology, unmanned aerial vehicles, soil sensors, and data-driven approaches to increasing the productivity and profitability of maize farming. These advanced technologies have enabled farmers to track the health condition of the crops carefully, apply water and nutrients with the utmost precision, and enhance other management-related activities. The advantages of such a practice proved to be many-faceted: yields would increase, losses would decrease, and negative impacts on the environment and climate change would be minimized, allowing us to solve such issues as climate fluctuations and water deficiency.

Moreover, the usage of precision agriculture in South Africa has also highlighted an important process of transition towards the effective usage of technological resources more optimally and efficiently. Therefore, the use of precision agriculture has increased the output of maize by the production companies, and South Africa continues to supply enough maize to meet the demand in the country. Furthermore, because of the rising usage of advanced technology in production, the South Africa Maize Market size and volume are anticipated to increase in the coming years as well.

South Africa Maize Market (2024-30): Segmentation Analysis

The South Africa Maize Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the national level. Based on the market analysis, the market has been further classified as:

Based on Maize Type

• White Maize
• Yellow Maize

Among these, white maize witnessed high growth in the South Africa Maize Market mainly because of the high consumption of this product by humans. It is milled into maize meal, which is one of the most widely used in South Africa, and prepared as pap or mielie pap. This food staple has been steadily part of daily meals for the majority of people, thereby expanding the importance of white maize, which has been enhancing its place in food security as well as the agricultural sector in South Africa. Consequently, demand for white maize has remained high, particularly due to the cultural and nutritional value of the commodity, which has been commercialized mainly in the domestic market.

Moreover, other factors, such as seasonal changes, cultivation techniques, etc., have also affected white maize production in South Africa. The South African government's assistance through subsidies and development projects aimed at expanding the productivity of farming and sustainable farming has fostered white maize production in the country. The use of modern inputs in farming and improved seeds has also played a role in enhancing yields in the production of food crops. Therefore, it is projected that white maize would continue leading the South Africa Maize market in the coming years.

Based on Application:

• Human Consumption
• Animal Feed
• Industrial Uses

Out of these, human consumption remained the largest market segment in South Africa, this position highlights the necessity of corn in the daily meals of millions of people. Maize, especially white maize, has, on average, been processed into maize meal, which has in one way or another been a staple food across the nation. Also referred to as mieliepap locally, this maize meal is the staple kind of food that forms the base preparations for many foods that are commonly eaten in South Africa and across all demographics. Moreover, the continuous human consumption of maize-based products has also been constant, not only due to their popularity in diets but also due to health needs since they are relatively cheaper than other commodities and essential in the kitchen. More so, as people gain knowledge about the importance of maize in their diet, chances are likely to arise in the future to boost the consumption of maize by humans, which will in turn enhance the growth of this segment.

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