THE United
Nations World Food Programme (WFP) is buying maize from Argentina
because the grain is too expensive in SA, the organisation’s regional
director for southern Africa, Mike Sackett, said yesterday.
The landed cost of Argentinian maize
is $100 a ton lower than that of South African maize, he said at a
Johannesburg presentation.
The WFP had a contract to buy a further 5000 tons of
Argentinian grain, Sackett said. “We have to take a decision where we
buy the most amount of food for the least amount of funds.”
SA, Africa’s biggest maize producer, had stocks of
1,86-million tons of grain by the end of December, 21% higher than a
year ago. The price of maize has gained 24% on the South African
Futures Exchange (Safex) since November.
Last year, the WFP bought 507000 tons of food, mostly maize, from SA, Sackett said.
This year, in an effort to feed up to 10-million people, it may buy 350000 tons of food in the southern African region.
Maize for March delivery closed at R956 a ton on Safex yesterday.
“Our preference is always to buy locally,” said James
Morris, WFP’s executive director. “But we have a responsibility to see
that cash resources ultimately provide food for the most amount of
people.” Bloomberg | 
