Rising cost of fresh produce is taking its toll

SOUTH Africans can expect to fork out more for grain products such as maize and wheat as the country has moved from being a major exporter of the products to an importer as a result of the ongoing drought.

Grain SA’s agricultural economist, Corné Louw, told The Star the country consumed about 10 million tons of maize annually, leaving an excess of about 2 tons for export.

But since May, the country has had to import almost 740 000 tons of maize and is expected to have to import another 5 million tons.

“It’s a result of drought together with the exchange rate weakening. Our farmers could only plant half of what they intended to; we’re already feeling it (but) prices haven’t necessarily filtered through to the consumers yet,” said Louw.

He said the price of white maize had increased by 146 percent over the past year, yellow maize by 99 percent, wheat by 26 percent, sunflower seeds by 38 percent and soy beans by 29 percent.

Meanwhile, consumers should not be fooled by the stable red meat prices, as these are set to skyrocket later in the year.

Gerhard Schutte, chief executive of the Red Meat Producers’ Organisation, said by September the cost of beef would rise by 12 percent and sheep and lamb by 10 percent.

“We foresee that during 2017, even if we have good rains, we can on top of this percentage expect inflation plus increases,” he added.

Farmers not able to feed their livestock were selling animals, resulting in an excess of meat products on the market.

If there was good rainfall, however, farmers would go into a herd-building phase and less meat would be available on the market, he said.