Cape Town - It's estimated that a potential drop of 10% in agricultural produce due to the drought could lead to 17 000 job losses in the Western Cape.
An agricultural economist has also warned that the current drought will have the biggest impact on seasonal employment in December.
Standing committee chairperson on economic opportunities, tourism, and agriculture Beverley Schäfer said the drop in the production in produce could lead to 17 000 job losses in the agricultural sector.
“Between 2003 and 2016, climate-related extreme events cost the Western Cape approximately R7.12billion.”
Businesses have also warned that the persistent drought will be felt by consumers. The Cape Chamber of Commerce and Industry said consumers can brace themselves for an increase in meat and dairy prices, as farmers had to reduce their livestock because of drought.
The fruit industry is also expecting a drop in exports of fruit to international markets in December because of fewer yields after cutbacks on land under irrigation.
President of the Cape Chamber of Commerce Janine Myburgh said that in the short term, consumers can expect increases in the price of meat and dairy products, as farmers had to reduce livestock to survive the drought and it will take some time for herds to recover.
“In the long term the situation should ease as good maize harvests in the rest of the country will reduce feeding costs for livestock, including poultry. Most of the effects of the drought in the Western Cape are yet to be seen, but they will become clearer as the season progresses. Fruit exports are important for the local economy and the crop yields will be difficult,” Myburg said.
Thinus van Schoor from the agricultural company Value Chain Solutions, who delivered a presentation to the Cape Town Chamber of Commerce on the impact of the drought on agricultural produce in the Western Cape, said the 25% reduction in hectares planting of fruit will also lead to a drop in exports internationally.
“Especially the export of citrus fruit will be affected by it. The recovery from the drought will take a few years. Things that will need to be looked at is water availability and the efficient use of it.”
FNB economist Dawie Maree explained the harvest of soft fruits were significantly smaller due to water restrictions.
The reduction in irrigation also had a huge impact on the quality of fruit. South Africa will see a decrease in the export of fruit in December.
“The Western Cape is South Africa’s important export province in terms of agricultural products. The fruit industry, wine, and increasingly the citrus industry are all key export produce that contribute significantly to the overall agri-economy in South Africa. Should any of these industries suffer, it becomes detrimental to the agricultural industry as a whole and by extension the local economy,” he explained.
Maree further said the Western Cape contributes 24% to the total GDP of South Africa and that the Western Cape is a central agricultural province.
“If the drought continues it will definitely impact negatively on the long-term economic growth for both the province and the country’s economy.”
On Tuesday, the National Disaster Management Centre announced it would be allocating R40million to the Western Cape Department of Agriculture for drought relief. The funds will be used for livestock feed for 1 300 farmers in the Western Cape.
Agri Western Cape chief executive Carl Opperman said the need for live stock feed in the province is huge and they are thankful for it. He said there are no more pastures in the province (due to the drought and fires) and roughage hasn’t been available for months.