1. M. MAKU UFH RESEARCH IN AGRICULTURAL INNOVATIONS AND DEVELOPMENT FOR IMPROVED FOOD SECURITY 2016 PRE CONFERENCE WORKSHOP UNIVERSITY OF FORT HARE, 26 FEBRUARY 2016 The Position of South African Maize Industry In The International Maize Market

2. Background Maize is the third largest planted crop in the world after wheat and rice (Abbassian, 2006) and a staple food for South African population and also a major feed grain for livestock. South Africa produced 48% of white and 52% yellow maize (daff, 2014). South Africa is majorly exporting to SADC, Asia and Mexico

3. Background continued Internationally, major maize producing and exporting countries include:- the USA, China, EU-27, Brazil, Argentina, Ukraine, India, and South Africa Consequently, the major importing countries include Japan, Mexico, South Korea, Egypt, Taiwan, Iran, and Colombia. Production of Genetically Modified maize and biofuels

4. Problem statement South Africa is a major maize producer in the whole of Africa. Thus, making it a net exporter, exporting mostly to the SADC region and to some parts of Asia. In times of shortages, SA imports maize. Most of times, South African maize prices are determined at CBOT. All of South African maize is Genetically Modified, with potential to change export destination. This have implications to import and export parity prices

5. Overall and specific objectives Overall objective of the study: to describe and assess the position of the South African maize industry in the international maize market between 1997-2014 period. Specific objectives of the study:  Different international and domestic uses of maize and how they influence maize prices.  To show how changes in the international maize market and changes in the South African institutional environment have affected the South African maize industry

6. METHODOLOGY DATA The study is a descriptive, qualitative and quantitative study and makes use of secondary data. International data: International Trade Centre and IndexMundi. Domestic data: Grain SA and SAGIS. The data include parameters such as production, exports, imports, price formation and consumption in both local and international context.

7. Results

8. Major maize producers (1997-2014)

9. Maize consumption

10. World maize trade (exporters and importers)

11. Maize price formation International supply and demand (production variation and biofuel production) International prices are determined at the Chicago Board of trade (CBOT) Import and export parity prices

12. Domestically, prices are determined through the following fundamentals factors at the South African Futures Exchange (SAFEX)  Rand/US dollar exchange  Local production (influenced by weather patterns)  Local consumption  Regional production level

13. Conclusion Position of SA internationally Intermediary! Not influential to international maize prices, but very important in the region with potential to expand to wider markets. Impact of agricultural innovations to food security GM maize seeds improve farm yields, yet still banned to some parts of the world. Biofuel production reduce world supply, pushing up prices.