Market Trends of Africa Maize Industry
Application in the Animal Feed Industry is Boosting the Market
Due to nutritional values, ease of production, and availability, maize is becoming an important alternative to the animal feed industry. Cereals are the most widely used ingredient in feeds across the world, including Africa. Maize is the most common cereal ingredient used to manufacture feed in the region. The increasing cattle population is leading to the demand for animal feed production. According to the Alltech Global Feed Survey, in 2021, 44.2 million metric tons of feed was produced in Africa alone, a 2.4% growth from the previous year. Broiler feed production reached 11.7 million metric tons in 2021, a 1.1 % growth from the previous year, and aquaculture feed production also saw an increase in the same period, reaching 1.49 million metric tons.
As maize is the major ingredient in feed manufacturing, the demand for maize production is increasing. According to the FAO, total cattle stock increased by 6% in 2022 compared to 2019. Maize as a feed ingredient can increase egg production in poultry and meat mass in other animals. With low cost and easy availability, maize has become one of the best alternatives for producing animal feed with adequate nutrients. Yellow corn is one of the most widely used primary ingredients for animal feeds. In South Africa, around 65% of the maize produced is white, and the rest, 35%, is yellow maize used for animal feed. In the case of Uganda, 37% of the maize produced is used for animal feed.
Approximately 60% of the maize produced globally is used for animal feed, and the sudden increase in the consumption of poultry in Africa has increased the demand for maize as livestock feed. This, in turn, has stimulated the demand for maize as a feed ingredient in the region, and this is anticipated to drive the maize market during the forecast period.
South Africa is Expected to Dominate the Market
South Africa is the largest and most active producer of maize in Africa, and it has a relatively dry climate that contributes to a unique hardness and whiteness, which is of great importance to the milling industry. Hard maize ensures a higher-quality product and yield per ton, while whiteness is of importance to the consumer market. In South Africa, approximately 65.0% of the maize produced for human consumption is white, whereas the remaining 35.0% is yellow and used for animal feed.
On a local level, maize is the most widely grown field crop and the most important source of carbohydrates in South Africa. South Africa is currently the continent's leading maize producer, with the majority of output concentrated in the North West region, the Free State, the Mpumalanga Highveld, and the KwaZulu-Natal Midlands. White maize accounts for over half of the total output of human consumption. Regions such as Free State, Mpumalanga, and the North-West provinces accounted for 84.0% of the country's overall production of maize in 2021.
In 2021, 22% of the total maize produced in the country was exported to Japan. Botswana, Vietnam, Japan, Taiwan, China, South Korea, the Republic of Zimbabwe, Mozambique, Eswatini, and Tanzania are the primary importers of maize from South Africa. The changing food patterns and developments in maize processing can be attributed to the increasing demand for maize, which is likely to increase its exports.
Maize by-products have wide potential for various industries in the domestic market. According to Grain South Africa, maize by-products are currently being used in animal feed, the food industry, textile and paper, pharmaceuticals, and the alcohol industry in South Africa. As these allied markets grow, the demand for maize is expected to increase during the forecast period.
