Maize price may go up, but no need to panic yet - agricultural economist

John Perlman speaks with Wandile Sihlobo, Agbiz senior agricultural economist.

Listen below.

South African households are faced with a new threat of high maize prices.

The household staple is projected to rise to record highs which could affect food inflation.

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The domestic future price of white maize in the week of 18 November rose above R6,300 a tonne, an increase of 60% for the year according to Daily Maverick.

The price has been affected by a poor crop due to the drought earlier this year, high demand from the region, and weakness of the rand following the election of Donald Trump.

Sihlobo says he does not believe there is a crisis ahead and a price change will only be felt by customers if this high price lasts for several months.

He adds that the cooling food inflation overall means we should be able to cope with this.

“Thinking about next year I am more optimistic.”

- Wandile Sihlobo, Agbiz senior agricultural economist 

Scroll up to the audio player to listen to the interview.