Maize production falls by 4.4m tonnes
JOBURG - Although the first summer rains have poured down in some parts of the country, some provinces are still dry. This warning was made by Syngenta agricultural economist Manfred Venter.
According to a recent report by Syngenta, a global agricultural research company, South Africa has already lost nearly R12 billion as maize production decreased from 14.3 million tons last year to a mere 9.9 million tons, which forced South Africa to import 770 000 tons at a cost of R2.2 billion.
“Maize growers without yield and profitability protection are most vulnerable during these times, and with predictions for the first half of 2016 not showing much relief, the struggle seems likely to continue,” warned Venter.
To make things worse, the anxiety experienced among growers – with their usual planting season passing by without being able to do anything in their dry soil – have even led some to consider shifting from corn to soybeans or sunflowers, as those crops are less capital intensive and can be planted later in the year.
There is hope, though. Three years ago, Syngenta South Africa made history by launching the first integrated yield and risk protection model for maize growers – AgriSafe™. This year, and in the midst of the rain strike, Syngenta tailored this protection model to meet customers’ needs.
For the first time AgriSafe™ offers Syngenta’s growers the opportunity to hedge the value of their Syngenta account, translated to a ton equivalent, on the Safex (South Africa Futures Exchanges) market – at no cost or risk to them. In this way, the grower is protected from a possible downside in price, but also with the unlimited advantage of a possible upside in price and no responsibility to actually deliver corn. With this risk management strategy, Syngenta not only offers growers optimal yield potential but also the opportunity to soften the risk of a highly volatile commodity price.
- Launched by Syngenta with great success in countries as diverse as Germany, Canada, Russia and Poland, AgriSafe™ presents growers with several important benefits, and especially during times such as now.
- It is offered at no risk or cost to the grower
- Use of smart products puts growers in a position of maximum yield potential
- It’s a win-win situation: growers enjoy protection against a declining price with an unlimited advantage of a higher crop price
- There is no physical delivery of maize: growers can continue with normal hedging practices
- The higher the value of purchases growers make with Syngenta, the more tons will be hedged on the grower’s behalf
- Enhanced risk management for growers: weather or crop failure does not come into play, as no physical delivery of maize is expected.
Details: To learn more about AgriSafe, visit www.syngenta.co.za
