KZN likely to be hardest hit by food price hikes: Economist

KZN likely to be hardest hit by food price hikes: Economist

KwaZulu-Natal residents will probably be paying more for food as costs are expected to go up soon because of the recent violence.

grocery basket

FNB Agricultural Economist Dawie Maree says the unrest has disrupted the food supply chain.

He says KwaZulu-Natal is likely to be one of the provinces which will be hit hardest by food price hikes.

He says a large chunk of agricultural activity takes place here, while the province is also key for imports and exports.

READ: eThekwini damage estimated at R15bn - Mboweni

"We expect the price increases in your basic food stuff, bread, milk, maize meal for example. I think where we will definitely see a longer term impact on prices might be on your imported products and that would be on rice and that type of products."

Maree says last week's cyber-attack on Transnet's IT system, which halted port operations, will also derail the food supply chain with effects to be felt for months.

"The imports of goods into the agricultural sector through the Durban port was also affected.

READ: Transnet says ‘significant’ progress to restore IT systems

"So that defiantly will have an impact, I think in the coming few months as well, as the ports still struggles with delays and now even with the hacking of the systems in Transnet that will also have a negative effect on our exports and imports."

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