South Africa’s Peanut Crop Failure Seen Boosting Imports
(Bloomberg)—South Africa will probably return to being a net importer of peanuts as the worst drought in living memory cuts the country’s crop to the smallest on record. The nation may need to bring in 20,000 metric tons of groundnuts, as they’re also known, in the 2016-17 season starting March to supplement local supply, according to Wandile Sihlobo, an economist at farm lobby Grain SA. T
he country, which was last a net importer in 2013-14, risks losing its position as the third-biggest supplier to Japan. South Africa had the lowest rainfall last year since records began more than a century ago as the El Nino weather pattern decimated crops of everything from corn to wheat.
The nation has declared five regions as drought disaster areas, including the Free State and North West. The Free State and Northern Cape provinces are the main growing areas for groundnuts, accounting for about 70 percent of production last year. “The current drought did not only affect the bigger crops like your maize, sunflowers and soybeans, but also the small crops” like peanuts, Sihlobo said in a phone interview from Pretoria on Tuesday. “More imports will likely come from other countries outside of Africa because they are in the same state as us.”
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