Farmers Review Africa May/June 2017 Farmers Review Africa | Page 12
Nampo Review
Postcards from
NAMPO 2017
NAMPO is the biggest agricultural event in the
Paul Makube, Senior
Agricultural Economist
for FNB Business
Positive knock on effect on animal feed – In
Southern Hemisphere. It attracts major players the case of oilseeds, both the sun ower and
and decision makers into one proverbial room, soybean crops are expected to be up on last year
to engage on the health of the agricultural sector at 853,470 tons and 1.23 million tons
in South Africa – this year; NAMPO came at a respectively. ese two crops are used as plant
time when the industry is posed for record protein sources in animal feed in the form of
harvests. s oy me a l and su n owe r me a l. Fu r t he r
“e sector is on course for recovery aer the processing for consumer products such as
devastating 2015/16 production season, sun ower oil, soybean oil, etc. will improve
however, the Western Cape (WC) and parts of availability and subsequently lower prices.
the Eastern Cape (EC) are exceptions as
conditions there have deteriorated with water
Pressures on wheat market – Poor production
levels in dams falling way below 20% full. Despite conditions affected planting in the Western
this, NAMPO provided some key insights into Cape; however, the short term rainfall outlook
t h e s e c tor” s ay s Pau l Ma ku b e, S e n i or has improved with heavy rains expected this
Agricultural Economist for FNB Business. week. e Free State and North West will
Makube provides an outlook of the sector post however offset the potential loss in production
NAMPO
because, apart from the Western Cape, the water
table and dam levels have improved signi cantly
Positive growth in harvest – According to the
this season.
recent Crop Estimate Committee (CEC) report,
South Africa's potential harvest of grain and Growth in livestock – e livestock market
oilseed crops for 2016/17 jumped 7% from the remains on an upward trajectory with gains
previous month to 18.03 million tons in May across the board due to tight supply as a result of
2017. e maize crop has been revised higher by herd rebuilding in the case of beef and sheep.
7.54% from last month to a record 15.63 million e meat-to-maize ratios have improved
tons. e rebound in maize production will help signi cantly in the past few months because of
reduce pressure in the livestock industries such the combination of higher meat and lower maize
as poultry, pork and feedlots where it constitutes prices, an indication of improved pro tability
almost 70% of the feed. for feedlots, poultry and pork production
Maize prices stabilize – Maize prices have “e strong rebound in agricultural output
systems.
responded to this improved supply dynamics bodes well for in ation going forward and
and weakened, they are currently trending below consumers will breathe a sigh of relief as most
the R2, 000/t level for both white and yellow grain and horticulture products and by-
maize. Both the yellow and white maize prices products should decline in price. is should
have edged below export parity, around R1, 800/t assist the SARB to keep interest rates on hold for
and R1, 900/t respectively. a bit longer” concludes Makube.
May - June 2017
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