South Africa: Diesel and Fertiliser Costs Squeeze South African Grain Farmers

  • Grain SA warns diesel prices could rise by more than R8 per litre in the next fuel price adjustment, hitting farmers, consumers and transport operators.
  • Fertiliser makes up between 30% and 50% of a farmer's production costs, with more than 80% of it imported.

South African grain farmers are being squeezed by rising diesel and fertiliser costs, and Grain SA is warning that food production could be at risk.

Diesel makes up between 13% and 15% of what it costs to produce a crop. Grain SA has warned that prices could rise by more than R8 per litre in the next adjustment, which would affect farmers, transport operators and consumers.

Since South Africa imports most of its diesel, local farmers are hit hard every time global prices move.

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Fertiliser is an even bigger burden, making up between 30% and 50% of production costs. More than 80% of the fertiliser used in South Africa is imported, Food for Mzansi reported.

Grain SA chairperson Richard Krige said farmers are facing one of the biggest cost increases in recent years, particularly as they prepare to plant winter crops and bring in summer ones.

Krige said without support and fair pricing, food production and food security could be at risk.

Grain SA also raised concerns that some fertiliser companies may be charging farmers more even though they bought their stock at lower prices.

Grain SA CEO Dr Tobias Doyer called on companies and government to act responsibly and work together to keep the sector stable.

"Farmers cannot handle endless cost increases," Doyer said, warning that disruptions to farming could have serious consequences for the country's food supply.

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