Drought could cost SA almost R10bn in food export revenue

The South African economy could potentially take a R9.2-billion knock in export revenue loss for food crops as the drought continues. Citing industry sources, Business Day reports that this figure excludes the drought’s effect on farmers’ income, job losses and any inflationary aftermath. Grain South Africa published on its website recently that the country would have to import 770 000 tonnes of maize until the end of April next year at R2.2bn. The country will also need R1bn worth of wheat imports to make up for shortfalls triggered by drought conditions. In the 2013/2014 financial year, SA produced a bumper 14.2 million tonnes of maize. This dropped to 9.9 million tonnes in 2014/2015 because of the drought, said Grain SA. Currently, according to Grain SA, South Africa provides nearly 70% of the maize exported to the rest of the Southern African Development Community (SADC) region.  –

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