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Top Africa Corn Grower Unmoved by $1.1 Billion Drought Need

Author: Bloomberg

Farmers in South Africa, which produces about a fifth of the continent’s meat and corn, are confident about increasing investment despite the worst drought in more than a century and government policies that have created uncertainty over their land holdings.

As many as 70 percent of growers are reinvesting in their businesses, Ernst Janovsky, the head of agribusiness at Johannesburg-based Barclays Africa Group Ltd., said by phone Wednesday.

 

“Confidence levels remain high,” Omri van Zyl, the chief executive officer of farmers’ lobby group AGRI SA, said in an interview at Bloomberg’s offices in Johannesburg. “The guys that may not make it get quietly gobbled up by others, so the production base is getting smaller but the units are getting larger and more diversified.”

 

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