Maize prices soar

Zimbabwe’s maize prices have rocketed due to fears of shortages, Reuters reported on Wednesday. The country may look for imports to South Africa where the harvest has begun. But there may not be enough maize to meet demand, officials said. Maize prices on the privately run Zimbabwe Agricultural Commodity Exchange (ZIMACE) were firmer, reflecting fears of a shortage later in the marketing season, the exchange said.

“Maize prices have firmed by Z$700 (US $12.73) per tonne since the same time last month and have risen by Z$300 per tonne this week alone,” ZIMACE said. “Reports that a large number of people in the country are already in need of food aid will add to the pressure on maize and further price increases are therefore anticipated,” it said. Production has been disrupted by veterans of Zimbabwe’s 1970s liberation war invading hundreds of commercial white-owned farms since early last year.

A foreign currency shortage has also led to fuel and fertiliser shortages. Despite repeated government denials of a maize shortfall, industry groups estimate Zimbabwe may have to import up to 800,000 mt of maize, mainly from neighbouring South Africa, to fulfil domestic requirements of around 1.8 million mt. South Africa may not have enough. Grain SA, the umbrella body for producers, said it had factored in exports of only 300,000 mt of maize to Zimbabwe in its supply and demand estimate.