As El Niño develops in the Pacific, below-average rainfall in parts of Southern Africa could strain maize and other summer crops, with effects reaching food manufacturers, retailers and consumers. South Africa has some buffers, including replenished grain stocks, relatively high soil moisture and reasonably well-supplied dams, though these would offer less protection if drought persisted. Higher maize prices could raise the cost of maize meal, animal feed and poultry. The analysis notes that Tiger Brands has exited maize milling, Premier has increased stock levels, and Astral Foods has hedged its key maize feed costs through the coming summer, although hedging provides time rather than permanent protection.
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