Johannesburg - The devastating drought that is wreaking havoc in the country has hit home with the price of staple foods soaring to new heights.
Observers say the general price of food increased by 4.4 percent, while maize, bread and cereals increased by 6.4 percent year on year in September against the consumer price index of 4.6 percent.
AgriSA economist Thabi Nkosi said during the same period, meat prices soared by 5 percent.
“The impact is definitely hitting home and consumers have already started to see higher food prices on the shelves to varying degrees. The Reserve Bank has also highlighted rising food prices as an upside risk to overall inflation,” Nkosi said.
“The cost of food in general in South Africa increased by 4.4 percent year on year in September.”
The prices for yellow maize, which is used mostly for stock feed, scaled their highest peaks this year as drought concerns mounted.
Nkosi said last month alone, South Africa imported more than 35 000 tons of maize mostly from Mexico and Brazil.
She said the continuing fluctuations of the currency had made the imports even more expensive.
“The weakness of the rand has greatly increased the cost of imported food products,” said Nkosi.
“Even though food prices on a global level have decreased, South Africans have not felt the benefit as a result of the weak rand.”
This week, the government said it had put aside R352.6 million for the initial drought intervention projects and a further R96.62m for additional interventions.
The vice-chairman of the Mpumalanga National Wool Growers Association, Japie Celliers, said the drought had affected the breeding season that was under way.
Celliers said farmers were three weeks behind their farming schedules.
“We do not have drinking water for our sheep and cattle. It is breeding season and we are expecting less animals this time next year because of the drought,” he added.
Mpumalanga produces 4.5 million kilograms of wool, or 10 percent of local production a year.
He said the effects of the drought had been felt with wool prices 6.5 percent higher than at the previous auction.
Koos van der Ryst, the chairman of the Red Meat Producers, said the drought had led some farmers to quit agriculture.
“I think capacity was initially reduced by 40 percent but the drought is even worse now because some farmers are going out of the farming business,” he said.
Van Der Ryst said only rain could help to turn the fortunes of the farming community around, but it would take time to trickle to the balance sheet of farmers.
The South African wine industry said it expected a smaller wine grape harvest in 2016.
VinPro Consultation Service manager Francois Viljoen said while producers in the Klein Karoo, Robertson and the Overberg received some rainfall, dry conditions at the end of October could affect production.
BUSINESS REPORT