Rand tumble blamed for spike in maize price
The currency slipped against the dollar following Donald Trump's victory in the US presidential election.
CAPE TOWN - The Agricultural Business Chamber says there's been a spike in the maize price because the rand took a tumble last week.
The currency, like other comparable emerging market currencies, slipped against the dollar following Donald Trump's victory in the US presidential election.
Prices of agricultural products have also been increasing in the wake of a severe drought in South Africa.
The Agricultural Business Chamber's Wandile Sihlobo explains.
“It is caused as we are the net importers. With the rand as it is now, the US election and other uncertainties, it saw the maize price going up.”
He adds that although South Africa will be exporting around 900 tonnes of maize, the country will be a net importer this year due to the drought.
Sihlobo says some relief is in store for consumers next year as prices will decline in light of better weather conditions, which will result in better yields for farmers.
(Edited by Shimoney Regter)