Agricultural economist warns of possible food price hikes

Agricultural economist warns of possible food price hikes

We have been warned to brace for food price hikes.


The warning comes after prices at the pumps jumped up at midnight for the fourth consecutive month.

Agricultural economist at FNB, Paul Makube says the most important thing is to see how this is passed on to the consumers already strapped at the moment. 

"We should expect a slight rise across the board. We have a benefit of a good crop we likely to harvest and that should have brought prices down and benefit consumers who would be affected by the huge fuel costs." 

Petrol is up by between 95 cents and R1 a litre and diesel now costs 63 and 65 cents more. 

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"If you look at the crude oil which is your fertilizer and pesticides are like to increase. This will affect the cost of production for farmers. especially in the winter and planting season. We are likely to see a situation where the cost of transporting the food to increase." 

Makube says the R1 petrol hike could yield an estimated R1 billion loss to the agriculture sector's value chain.

He says producers will be harvesting soon and as we head into the winter season and fuel usage will go up.

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