Sugar Cane<\/strong><\/p>\n South African sugar consumption might be under slight pressure due to lower economic growth.<\/p>\n The impact of high food inflation on sugar prices and consumer demand may also affect the demand for sugar as consumers are under pressure. Price increases will be\u00a0due to lower production estimates.<\/p>\n Citrus (Oranges, Lemons and Grapefruit)<\/strong><\/p>\n Although the world production in oranges tends to remain flat, domestic sales indicate an expected decline in domestic production.<\/p>\n The weak rand and increased expenditure on food indicates that the demand for oranges will increase. These factors support domestic prices following export prices to a higher level.<\/p>\n Onions<\/strong><\/p>\n Increased export numbers for onions support higher onion prices as the rand continues to weaken. Contrary to the case of potato prices, the prices for onions do not correlate closely with those of white maize prices, as it is not a vegetable rich\u00a0in starch.<\/p>\n Onion price movements do not correlate strongly with the value of the rand. However, the demand for onion exports to SADC countries and the rest of Africa has grown substantially over the past seven years.<\/p>\n Beef<\/strong><\/p>\n The drought resulted in more cows being slaughtered, which will hike prices during the herd rebuilding phase. However, these higher prices will be met by some consumer resistance due to economic pressures resulting from inflation, higher interest rates and reduced net income.<\/p>\n Milk<\/strong><\/p>\n Producer prices are expected to follow the recent increase in the retail prices for milk.<\/p>\n Unfortunately, producer prices may lag behind for up to six months before catching up. By that time, from May 2017 onwards, feed prices may start to recover and the profitability of milk production will increase.<\/p>\n The local demand for milk will increase further as milk becomes more and more accessible through additional outlets in townships.<\/p>\n Pork<\/strong><\/p>\n Short-term pressures from higher feed costs on the back of the drought, the weakening of the South African rand against major currencies, unstable water and electricity supplies, increased labour costs and lower poultry prices remain.<\/p>\n Consumers\u2019 reduced disposable incomes, which were met with higher interest rates at the time when pork supplies remained constant, added to the pressure. Prices are expected to climb towards the end of the year<\/p>\n Maize<\/strong><\/p>\n In 2015\/16 domestic maize prices were at an all-time high as a result of lower production and the weaker South African rand.<\/p>\n The overall value of maize did not drop that much as the prices for maize compensated for the lower production. A strong rand improved economic conditions.<\/p>\n With the anticipation of El Ni\u00f1o dissipating in the 2017\/18 marketing season, white maize prices are expected to return to price levels near import parity.<\/p>\n Potatoes<\/strong><\/p>\n Given the strong correlation between the white maize price and the potato price, the planting decisions of maize producers are expected to have a significant impact on the production of potatoes.<\/p>\n The prices for white maize in the new season have already declined significantly compared to the maize prices in the previous season. Consequently, the price for potatoes may follow suit from May onwards to trade lower on the domestic fresh produce markets.<\/p>\n Tomatoes<\/strong><\/p>\n It should be noted that the warm, dry winter favoured the production of tomatoes under irrigation, leading to higher inventories of this perishable product. The volumes produced increased significantly from April 2016 onwards to exceed the average production levels over three years. The subsequent increase in the production of tomatoes impacted directly on prices, causing them to head south.<\/p>\n Eggs and Poultry<\/strong><\/p>\n A plentiful supply of meat will keep poultry prices low\u00a0in the medium term. The return of the US to the export market has increased competition while future avian flu outbreaks will continue to disrupt trade.<\/p>\n Poultry producers in South Africa will continue to experience tight margins until feed supplies start to recover in 2017. The imports of lower-cost poultry products will continue while higher-cost poultry products will increasingly benefit from the export trade.<\/p>\n Game<\/strong><\/p>\n The general decline in prices over the past year is \u00a0not only the result of demand being under pressure. Auction statistics clearly present a picture of increased quantities being offered for sale at formal auctions.<\/p>\n In other words, the breeding segment of the wildlife industry is facing uncharted territory in that price pressure is being instigated from both the demand and supply side at the same time.<\/p>\n Live game prices are expected to remain weaker (lower) in 2017.<\/p>\n Wheat\u00a0<\/strong><\/p>\n The long-term outlook for wheat prices points to a sideways movement in international prices as sufficient amounts of wheat are expected to be produced.<\/p>\n Excess wheat supplies are expected to continue into the 2016\/17 season, and production is expected to remain steady until 2021.<\/p>\n The rand to US dollar exchange rate is expected to decline moving into 2017, which will add support to future local wheat prices. Given the declines in global wheat prices, domestic wheat prices can be expected to trade at least sideways owing to the efficient tariff measures that are in place.<\/p>\n Sunflower seeds (oil)<\/strong><\/p>\n South Africa needs about 880,000 tonnes of sunflower seed annually, which should provide enough scope to cultivate 720,000 hectares of sunflower seed.<\/p>\n The lower crude oil price should not have a negative impact on the price of domestically grown sunflower seed or soybean oil.<\/p>\n Vegetable oils in South Africa are refined for purposes of human consumption and receive a premium above vegetable oil for industrial purposes.<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/01\/Sugar-2.jpg\")
<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n
\nDecrease<\/strong><\/h2>\n
<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n
\nNot much change<\/strong><\/h2>\n
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