Can increased agri-production contain food inflation amid rising petrol prices and the cost of electricity?
JOBURG -– Panel of experts talks Agribusiness and what the future holds for food inflation amid rising costs of petrol and electricity and load-shedding.
Ordinary people will bear the brunt of spiralling petrol prices and high costs of electricity and load-shedding which will have a knock-on effect on food prices.
But agricultural industry experts believe not all is doom and gloom as production in this sector of the economy is likely to improve, though marginally, this season.
This was confirmed by experts at an FNB roundtable discussion at the Inanda Club in Johannesburg at which crop production estimates for March showed a marginal increase from those put out in February.
The revision followed good rains in early January that stimulated farmers to increase the pace of planting that has accounted for the slight reserve on the estimated maize production of 10.56 million tonnes for the 2018/19 season.
Paul Makube, a senior agricultural economist at FNB Agribusiness, said the marginal surpluses that will be experienced for maize, sunflower and soybeans production this season will translate into a little respite for the consumer but notwithstanding other inflationary features such as the petrol and electricity prices.
Related article:
https://northeasterntribune.co.za/228099/brace-petrol-price-increase-74-cents-month-march/
