Maize is the most important staple cereal product consumed in the Southern African
region. The purpose of this paper is to examine the origins of the global 2007/8 food price crisis
and the impact this had on the trade in maize within the Southern African Customs Union
(SACU) customs union as well as to consider the impact on consumer prices of maize. The
reason why maize is central to this issue is not simply because of its roles as the principle staple
food product of the SACU region but because much of the global crisis that occurred in 2008 had
its origins in changes in US ethanol policy which were related specifically to the maize sector.
The paper also considers whether in fact changes in Value Added Tax (VAT) policy with
appropriate and targeted poverty alleviation programs will achieve the objective of decreasing
poverty in the SACU region. Lastly the paper considers duty on maize meal and processed maize
products which serve to raise the import parity price for meal in an already oligopolistic market.