Developing a post-harvest market model for maize in South Africa

Abstract

This paper aims to develop a post-harvest marketing model, tailored to the bespoke requirements of Vlakvlei Boerdery (Pty) Ltd, with the earmark of utilising its private grain handling and storage facilities to the fullest. In order to render such a post-harvest marketing model, this paper examined SAFEX data for the period of 2007 to 2020, and more specifically Spot Market- and Futures data for the period as aforementioned, and also analysed the correlation between the R/$ exchange rate and its impact upon local prices, more specifically WM1 prices. The study also further examined base-prices applicable to the local grain industry and how it subsequently fluctuates between the twelve months of the year. Finally, this study drew various conclusions from the data and made several recommendations, of which a proposed marketing model for Vlakvlei Boerdery (Pty) Ltd, to enable it to maximise profits by the sale of its grain during strategic periods according to the findings of this study.