Drop in maize production threatens food prices

Economist Thabi Nkosi says a drought has affected maize production which will have a knock-on effect.

It comes as consumers are confronted with a host of municipal and transport cost increases, many of which came into effect today. Picture: AFP.

JOHANNESBURG - A drop in maize production is threatening to push up food prices over the next three months.

It comes as consumers are confronted with a host of municipal and transport cost increases, many of which came into effect today.

Economist Thabi Nkosi says a drought has affected maize production which will have a knock-on effect.

"It's going to push food prices up a bit and it's going to come through in the CPI. The reason is maize is trading at import prices are currently trading at prices largely because of the drought."

Meanwhile, it's being reported that South Africa will import about 50,000 tonnes of white maize from Mexico.

Reports suggest it's in a bid to bulk up waning stocks as a scorching drought curbs domestic output.

The first shipment of the maize is due to arrive in the country in August with five more shipments expected between September and December.