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THE South African Reserve Bank raising its repo rate by 0.25 percentage points, to 3.75 percent, effective from the end of last week, would lead to higher debt servicing costs, says FNB Agribusiness’s senior agricultural economist Paul Makube.

These, amid cost pressures emanating from a massive upswing in fuel, fertiliser, pesticide and herbicide prices, would trim profit margins despite a fantastic outlook for the season ahead.

“The record low-interest environment over the past year provided a breather for farmers,” Makube said.”

The Citrus Growers Association research economist, Portia Magwaza, in the 2021 Lemon Seasonal Review on Friday, said it had been a tough lemon season.

While export volumes were up, their costs had increased, the exchange rate had moved against exporters and lemon prices were well below last year’s values. |