Analysis of selected food value chains

Maize is the most important grain crop in South Africa, being both the major feed grain and the staple food for the majority of the South African population. Figure 1 illustrates that for the 2002/03 marketing year, maize was responsible for the largest contribution (13.78%) to the total gross value of the agricultural production with a gross value of R9.5 billion. Poultry slaughtered followed closely with a contribution of R8.6 billion (12.5%). The South African maize industry is also the largest maize industry in Africa by far. In 1997, the industry was deregulated and the Maize Board was abolished. Since 1997, product prices have been determined under a free market condition and are formally traded on SAFEX. The major production areas are situated in the Free State, NorthWest and Mpumalanga Provinces.