Diesel price increases and load shedding put immense pressure on farmers and in turn it is transferred to the consumer.
THE INCREASE in the price of diesel has dealt another blow to the farming industry.
According to the Department of Mineral Resources and Energy, the prices of both grades of petrol will now cost R1.27 more per litre, while diesel prices have gone up by 30 cents (0.05%) and 31c (0.005%).
SA Canegrowers CEO, Dr Thomas Funke, said that the increases in the diesel price have added a significant burden for the cane farming sector.
“Diesel accounts for about 11% of growers’ input costs as canegrowers are dependent on diesel for on-farm purposes as well as road transport and tractors for the haulage of their crop to the sugar mills.”
Funke added that sugar cane farmers are paying more for diesel compared to the same period last year.
“Our data shows that the expenditure on diesel has nearly doubled for many growers compared to February last year for on-farm uses including tractors, bakkies, and farm to mill transportation. Due to the immense cost in terms of capital expenditure as well as operating costs, it is generally not feasible for growers to rely on generators for irrigating sugar cane.”
He added that while there has been some relief to farmers due to the diesel refund system, it was an admin headache.
Fanie Ferreira, CEO of the MPO (Milk Producers’ Organisation), said that diesel price increase had a major impact on the farming industry as every cent counts.
“I want to make it clear that it is not just diesel prices that are leading to higher prices of milk. It’s a whole range of things which also includes the load shedding. It’s very difficult for farmers as they need power for irrigation and it is very difficult for farmers to operate with only a few hours of electricity.”
Ferreira added that some milk producers could not buy generators.
“Some producers simply don’t make enough money to buy generators, we are severely impacted by the load shedding. We are also faced with the fluctuating diesel prices that continue to go up and down. This makes it very difficult for us to have consistent milk prices.
“Diesel prices increases and load shedding as a whole puts immense pressure on us and in turn it is transferred to the consumer.”
