Agri Western Cape CEO Jannie Strydom says the increase in diesel and fuel prices is hitting the agricultural sector hard.
The Western Cape is an important agricultural province in South Africa. With the planting season nearing its end, producers will have to make up for the current fuel and diesel increases.
Strydom says there are concerns about the impact this large fuel increase will have on the value chain.
“We also need to look at the increase in diesel and fuel prices together and the near doubling of increase in fertilizer and chemical price. A further risk is that manufacturers will have to budget and apply for OPEX in advance and if we do these increases and input costs find or see, producers then need to get extra OPEX through and within the season and that can be a problem for some of our producers to get some of these supplementary funds or capital to offset the increase in input costs, ”says Strydom.
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Agricultural sector worried about the impact of fuel prices on the value chain – SABC News
Source link Agricultural sector worried about the impact of fuel prices on the value chain – SABC News