Food prices will continue to rise
CONSUMERS have been warned that food prices will continue to increase as a result of the impact of the drought in the Northern Cape.
Presenting his budget for 2016/17 in the Northern Cape Legislature, the MEC for Agriculture, Norman Shushu, pointed out that the recent drought had resulted in an increase in the prices of almost all commodities including grains, hay, livestock and livestock products, which account for approximately 75 percent of Northern Cape agricultural production.
“The consumer price index (CPI) for bread and cereals was 4.5 percent higher in January 2015 compared to January 2014, but by December 2015 it was 7.5 percent higher than December 2014.”
Shushu warned that the situation was expected to continue and increase for 2016.
“The CPI for meat was 8.7 percent higher in January 2015 compared to January 2014, but the increase in supply, because of the drought, eased the pressure, and in January 2016 it was 4.3 percent higher than in January 2015.
“It should be kept in mind that other production factors such as transport, packaging, salaries and wages and energy play a large role in the price of food on a consumer level (especially processed foods) and price changes in these production factors may play a more important role as the changes in the commodity.”
He added that the decreased supply of live animals during 2016 would lead to an increase in animal prices.
On a positive note, the high temperatures and dry conditions leading up to March 2016 did not ad- versely affect the table grape industry and the Province experienced a record high of 18.5 million cartons of grapes being exported, an increase of 900 000 cartons compared to the previous marketing season.
Dry grape production, which consists mainly of Sultana and Merbein varieties, however, reacted negatively to January’s rains, which caused excessive drop and rot of grape berries. As a result 35 000 tons of raisins were produced, compared to the expected production of 50 000.
The Northern Cape has also seen a rapid expansion of pecan nut orchards.
Shushu, who also used his budget presentation to focus on the department’s drought intervention programme, pointed out that 257 farmers were assisted with R7.7 million worth of fodder in the Loeriesfontein/Calvinia/Brandvlei areas.
“When the drought was becoming severe in the Frances Baard, ZF Mgcawu and parts of Pixley ka Seme districts, the department played a pivotal role in getting the Province declared a disaster area. A further R14.6 million was redirected from the Comprehensive Agricultural Support Programme (CASP) to assist 1 851 farmers who were in dire need. These funds provided over 5 400 tons of fodder where it was needed the most. The Department of Rural Development and Land Reform also provided a further R19 million for drought relief.”
An application has also been submitted to the National Disaster Management Centre for a minimum of R65 million per month for three months.