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Cereals and grains are South Africa's most valuable crops, occupying more than 60 % of hectarage under cultivation in the 1990s. Corn, the nation's most valuable crop, is a dietary staple, a source of farm animal feed, and an export crop. Government programs, including generous loans and extension services, have been crucial to the nation's self-sufficiency in this enterprise. Corn is grown commercially on large farms, and on more than 12,000 small farms, primarily in North-West, Mpumalanga, Free State and KwaZulu-Natal provinces. Corn production generates at least 150,000 jobs in years with good rainfall and uses almost one-half of the inputs of the modern agricultural sector.
Corn production exceeds 10 million tons in good years; owing to regional drought in the early 1990s, production fell to just over 3 million tons in 1992, and roughly 5 million tons of corn were imported, at a cost of at least US$700 million. Both domestic and imported corn was shipped to neighboring countries to help ease the regional impacts of the drought. The drought eased in 1993, and officials around the 1994 harvest at around 12 million tons. Below-average rainfall in late 1994 again threatened to reduce corn output in 1995, and officials expected to import some 600,000 tons of corn in that year. Plentiful rain in late 1995 provided for a bumper crop in 1996.
Wheat production, which is concentrated in large, highly mechanized farms, also increased after World War II. Wheat cultivation spread from the western Cape where rainfall is fairly reliable, to the Orange Free State and the eastern Transvaal, primarily in response to rising consumer demand. But wheat harvest volumes vary widely; for example, roughly 2.1 million tons were produced in 1991 and only 1.3 million tons in 1992. Production in the early 1990s failed to meet local demand for about 2.2 million tons per year. Wheat imports in 1992, for example, cost more than US$5 million.
Dairy farming is found throughout the nation, particularly in the eastern half, and is sufficient to meet domestic needs, barring times of extreme drought. The predominant dairy breeds are Holstein, Friesian, and Jersey cows. The milk price was deregulated in 1983, resulting in lower prices, but industry regulations continued to enforce strict health precautions. In a system dating to 1930, all wholesale milk buyers pay a compulsory levy to the National Milk Board. This money is pooled in a stabilization fund and used to subsidize dairies manufacturing butter, skim milk powder, and cheese when a surplus exists. Fresh-milk dairies objected in the early 1990s, and several of them were involved in litigation to have the levy lifted.
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