NAMC’s South African Food Cost Review 2019

The availability and accessibility of affordable nutritious food play a vital role in any household. With South African consumers under pressure, food price inflation is expected to average about 5% during 2019 and is unlikely to rise significantly.

The main challenges faced by farmers are drought, which means poor harvests and reduced incomes, and consequently, problems in repaying bank loans. Higher interest rates amid a weak economy could worsen the situation for those still grappling with drought, especially in parts of the Northern Cape, the Eastern Cape, the Western Cape and the North West.

Climate change remains a great concern to farmers, and affects everyone because of the relationship between global commodity markets. Severe weather in one country or region can affect the supply-and-demand equation, and with it, prices, across the whole world.
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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.