• Domestic Economy

    Domestic Maize Deficit at 7.8m Tons 

    A total of $1.17 billion worth of maize were imported to Iran during March 21-Sept. 22, latest data released by the Islamic Republic of Iran Customs Administration show

    Iran’s maize demand stands at 9 million tons per year while local production amounts to 1.2 million tons, according to the manager of Export Department of Iranian Company for Maize Development. 

    “Although the deficit is huge, we can make up for it by cultivating high-yield seeds that need less water and are resilient to water salinity, fertilizing farm soil, planting maize seedlings instead of seeds, managing and controlling pests, using modern irrigation methods, drainage systems and new technologies offered by startups and knowledge-based companies,” Mohammad Qasemnejad was also quoted as saying by IRNA.

    The official noted that at present, each hectare yields an average of 7.5 tons of the crop, adding that plans are to increase the figure to 9.5 tons in the near future.

    “Currently, maize is cultivated on 160,000 hectares of farmland across the country. We are trying to increase the land under maize cultivation to help reduce imports,” he added.

    Qasemnejad said Iran annually imports 14 million tons of livestock feed raw materials, between 8 million and 9 million of which are maize used for human, livestock and poultry consumption.

    “Khuzestan Province in southern Iran is the country’s main maize production hub. This year, close to 50,000 hectares of farms have gone under maize cultivation. Khuzestan’s agricultural yields amount to more than 17.5 million tons per year, accounting for 14% of the country’s total agricultural production,” he added.

    There are 1.25 million hectares of farmlands in Khuzestan Province. 

    The southern province ranks among the top producers of essential goods in the country, including wheat, maize, oilseeds, rice and sugarbeet, as well as citrus fruits, vegetables, dates and flowers.

    A total of $1.17 billion worth of maize were imported to Iran during the first six months of the current fiscal year (March 21-Sept. 22), latest data released by the Islamic Republic of Iran Customs Administration show.

     

     

    FAO Forecasts Local Outlook

    FAO’s first forecast for global coarse grains production in 2022 points to a year-on-year downturn of 0.6%, with the output pegged at 1.494 million tons. 

    The decrease is being driven by expectations of a reduced world maize output, forecast at 1,188 million tons in 2022, down 1.6% from the previous year’s outturn. 

    A large proportion of the forecast decline is concentrated in North America, where the pace of sowings in the United States has been below average due to detrimental spring weather and survey data from March, indicating a likely cutback in maize acreage

    in 2022. 

    With yields assumed to remain unchanged, production is currently forecast at 367.3 million tons, down 4% from last year. By contrast, production of maize in Canada may increase slightly in 2022, since early prospects point to an increase in sowings that would more than offset an anticipated decline in yields, following historical highs in 2021. 

    In Europe, production of maize in Ukraine is forecast to fall by 50% to 21 million tons in 2022. The war in the country has significantly restricted access to both agricultural inputs and land for planting, contributing to low area and yield prospects. 

    In the Russian Federation, maize production is foreseen to decline but remain above the five-year average. In the European Union, production of maize is pegged at 73.7 million tons in 2022, up 1.6% on a yearly basis, with an expected 2% increase in the area sown, driven by high maize prices and stable yield prospects. 

    In South America, where harvesting of the 2022 maize crop is underway, production in Brazil is forecast to reach a record high of 114.6 million tons. 

    A steep increase in plantings underlies this outlook, with robust prices estimated to have instigated a 20% expansion in maize area compared to the past five-year average. Although yields are also anticipated to increase in 2022, further shoring up production prospects, rainfall shortages in April and May caused a small downgrade in the yield forecast relative to earlier predictions. Production of maize in Argentina is anticipated to fall on a yearly basis, but at 57 million tons would still exceed the five-year average by 6%, owing to an enlarged sown area, which is expected to partly compensate for lower in yields. 

    In Africa, the 2022 maize crop is being harvested in South Africa, while sowing has recently started in East and West Africa. In South Africa, the continent’s principal maize producer, this year’s output is forecast to decline

    to 15.4 million tons, albeit still an above-average level. 

    Despite a cutback in the maize planted area, in part caused by high input costs, remunerative grain prices at planting kept sowings at an above average level, partly countering the effects of a modest decline in yields. Sizable production decreases are forecast in neighboring Southern African countries in 2022, where persistent rainfall deficits have lowered yield expectations and resulted in smaller maize sown areas. 

    In Asia, maize production in China (mainland) is predicted to reach an above-average level of 273 million tons, virtually unchanged on a yearly basis. Similarly, maize outputs in other Asian countries in 2022 are foreseen at comparable levels to the preceding year.