The share prices of food producers listed on the JSE have come off significantly in recent months because of the record high prices of grains such as maize, which are expected to push up the companies' cost of production, weighing on profit. This comes as the South African Weather Service reported this week that the country has had the lowest annual rainfall in 112 years, since records began.These South African companies are feeling the pinch of the drought, which is predicted to halve maize output, according to GrainSA, which represents commercial farmers. The country consumes about 10.4million tons a year, excluding exports."It will also be a struggle to pass on price increases to consumers, who are facing significant pressure locally amid weak economic growth conditions, rising interest rates and the possibility of higher inflation," said Chantal Marx, an analyst at FNB Securities.Local brands such as Tiger Brands and Pioneer Foods use maize and wheat as inputs for their food products, such as Albany bread and White Star Super Maize Meal. Millers import about half their wheat; the balance is sourced locally.story_article_left1Poultry producer Astral Foods is heavily exposed to the maize market. Astral doubled its profits in the 2015 financial year, but may not achieve that this year as feed costs bite. The stock price has fallen by more than a quarter since the poultry producer released solid financial results in November. Astral's share price was slightly up on the week, at R103.Pioneer Foods' and Tiger Brands' share prices have lost 34% and 23% respectively from their recent highs, although some of the stock moves are attributed to general market weakness. Pioneer and Tiger were weaker on the week, at R133.14 and R275 respectively.The price of white maize, a staple food for most South Africans, has doubled to R4800 a ton from a year ago. The prices of yellow maize, sunflower seeds, soybeans and wheat have also risen exponentially in recent months.Grain SA economist Petru Fourie said the country may need to import five million tons of maize at a cost of R17-billion in the new marketing season that runs from May until April next year. The weak rand, which lost 25% of its value against the dollar last year and came close to hitting R18 to the greenback - a record low - this week, will inflate the cost of imports."It is difficult to tell what quantity of maize would be produced this year as the occurrence of rain during January to March will be the main determining factor of yield," said Fourie.If predictions are correct, this will be the smallest maize harvest since 1992, when farmers delivered about three million tons. Then, white maize was blended with yellow maize for sale to consumers.White maize is not as readily available on the international market as yellow maize, which helps to explain the R1100 per ton price difference.The government and stakeholders in the agricultural sector have had their hands full trying to limit the damage of the drought, which has extended to livestock farmers.Several provinces, including the Free State and North West - which produce the bulk of the country's white maize - were declared disaster areas late last year.full_story_image_hleft1"All South Africans, from producers to consumers, will be negatively affected [because] producers are faced with significant financial losses," Fourie said. "Consumers are in a difficult situation, with staple grain prices and related food product prices to increase even further in the months to come."Tractor sales have been progressively falling in recent months, South African Agricultural Machinery Association figures show. Tractor and combine harvester sales dropped 28.5% and 37.5% respectively in December from the year-earlier period."The agricultural and agricultural machinery industries, in particular, are going to be facing a very difficult future in 2016 and will be fighting for their very existence in the forthcoming months," the association said.The slump in agricultural equipment sales affects suppliers such as JSE-listed Invicta, which has lost just over a third of its market value in the past three months. Worsening the situation for companies like Invicta is a weaker rand, which inflates the prices of its imported machinery...