Poor maize crop could dent SA biofuel hopes

Two seasons ago, when a bumper harvest pushed South African maize prices to four-year lows, it seemed like a good idea to plough all that excess maize into biofuels — energy tapped from crops like sugar and maize.

But for the second year in a row, South Africa faces a season of slim pickings after a drought slashed maize production, raising doubts about how a country with such a poor farming climate can produce crops to meet the government’s ambitious green energy targets.
The projected harvest of 7.05 million tonnes for 2006/07 — although higher than last season’s 6.61 million — is almost one million tonnes short of annual demand and some local market players fear it could be far smaller.

South Africa wants biofuels to contribute up to 75 percent of renewable energy needs by 2013 and create thousands of jobs — not only to join the global clean energy drive but to help its struggling farming sector grow the market for its produce.

South Africa has in the past frequently produced more than enough maize to make it a net exporter but this season it may actually need to import white maize to stave off a shortage.

Engineering News