Agriculture sector concerned about fuel price hike impact on the value chain

Agri Western Cape CEO, Jannie Strydom, says the price increase of diesel and fuel will hit the agriculture sector hard.

The Western Cape is a major agricultural province in South Africa. With planting season nearing its end, producers will have to absorb the current fuel and diesel increases.

Strydom says there is concern over the impact this major fuel increase will have down the value chain.

“We need also to have a look at the increase in diesel and fuel price in conjunction and the close to doubling of fertiliser and chemical price increases. A further risk is that producers need to do their budgets before hand and apply for OPEX and if we find or see these increases and input costs, producers then throughout and within the season need to obtain addition OPEX and that might be a problem for some of our producers to obtain some of this addition funds or capital to accommodate the increase in input costs,” says Strydom.

SA Petroleum Industry Association on soaring fuel prices: Avhapfani Tshifularo [31 May 2022]

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