No need to worry about excessive levels of food price inflation: economist
An agricultural economist says we need not worry about food security or excessively inflated prices in the near future.
The sector recorded a R22 billion surplus in the second quarter of this year.
It's a year-on-year increase of 40%.
Economist with the Agricultural Business Chamber, Wandile Sihlobo, says this followed on from a promising first quarter which saw healthy production for export, as well good rains.
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He says export volumes were up in the second quarter for products such as citrus, apples and pears, maize, wine, grapes, pineapples, avocados, wool and nuts.
"For South Africans, this also means that the improved supplies also contributes positively in two ways, firstly on a consumer price inflation part in a sense that we are not going to see domestic food prices rising at notable levels.
"We are looking, for example, at consumer food price inflation averaging at around about 5.5 to 6 percent this year which basically means prices will be rising at relatively comfortable levels domestically and that is because of the larger harvest."
