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Farm Management Challenges Posed by Recent Deregulation of Maize Grain Marketing in South Africa

Author

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  • Darroch, M.A.G.

Abstract

Recent changes to the highly regulated maize grain marketing system in South Africa are analysed to asses the management implications for local maize farmers. Between 1944/45 and 1994/95, the Maize Board and its agents (co-operatives) were the single channel for maize grain marketing. Statutory single channel marketing and storage control were abolishedfrom May 1995 and "free’' trade within the domestic market was permitted (the Maize Board remained the sole exporter). Single channel import control on maize exercised by the Board was also replaced by import tariffs. These changes have increased price risk for local maize producers who have responded in the short-run by using forward contracting, electronic marketing andfutures contracts. In the longer run, attempts to reduce maize grain storage costs through more use of on-farm bunker storage, plastic tunnels, steel and concrete silos and the leasing of co-operative silo space are likely. Increased import competition could lead to changes in enterprise mixes, particularly in coastal areas which will probably import more maize.

Suggested Citation

  • Darroch, M.A.G., 1997. "Farm Management Challenges Posed by Recent Deregulation of Maize Grain Marketing in South Africa," 11th Congress, University of Calgary, Canada, July 14-19, 1997 346369, International Farm Management Association.
    • Handle: RePEc:ags:ifma97:346369
    DOI: 10.22004/ag.econ.346369
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