South Africa's GMOs and Precision Farming Keep Food Prices Low

South Africa's food prices have remained stable despite rising overall inflation thanks to the introduction of genetically modified organisms (GMOs) and precision farming. The country's maize harvest is expected to reach a record 17.4 million tonnes, with grain and oilseed production reaching 21.5 million tonnes.

According to Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa, grains were among the key products underpinning the moderation in consumer food price inflation. The strong harvest is attributed to good rainfall from La Niña and years of investment in GMOs and precision farming.

Farmers have increased production by using improved seed varieties, better soil management, and precision farming tools such as GPS guided equipment and drones that apply farm inputs more accurately. Corné Louw, Head of Applied Economics at Grain SA, notes that grain farming is all about moisture retention in South Africa's semi-arid country.

The approval of GMOs under the Genetically Modified Organisms Act in 1997 has led to a significant increase in maize yields from 0.6 tonnes per hectare in the 1920s to around 6.4 tonnes per hectare today. White maize, the country's main staple food, has become cheaper with maize meal prices almost 6% lower in June than a year earlier.