Source: Wandile Sihlobo, Agbiz, 13 October 2021, photo credit: Without A Hitch
The planting season for South Africa’s 2021/22 summer grains and oilseeds started positively in the eastern and central regions with favourable rains that improved soil moisture. The weather outlook for the coming months is positive, with prospects of above-normal rainfall, which should support the crop in this new season.
The one concern that farmers currently have to contend with is the rising input costs. We have recently written about the fertilizer and agrochemicals prices which in October 2021 were over 40% compared with 2020 levels.2 The increasing fuel prices are an additional cost that farmers and agribusinesses currently face.
The preliminary estimates from the Central Energy Fund suggest that petrol (95 ULP Inland) and diesel (0.05% Wholesale Inland) prices could increase by 98 cents per litre (c/l) and R1,41c/l, respectively, on 03 November 2021. This adjustment means the retail price of petrol could increase to R19,31 per litre from the current level of R18,33. Simultaneously, the wholesale diesel price could rise to R17,12 per litre from R15,71 in October 2021. The key factors sustaining fuel prices at these higher levels are the somewhat weaker ZAR/USD, combined with the rising Brent crude oil prices.
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The South African Pork Producers’ Organisation (SAPPO) coordinates industry interventions and collaboratively manages risks in the value chain to enable the sustainability and profitability of pork producers in South Africa.
