Rolling blackouts disrupting farming and agribusinesses

AGRIBUSINESS PERSPECTIVE

- Wandile Sihlobo

As we start the new year, there is probably no issue more urgent for South Africa's agriculture sector and agribusinesses than the worsening energy crisis.

Farmers who rely on irrigation have all expressed concern that persistent rolling blackouts are having a negative effect on production.

In key field crops, about 20% of maize, 15% of soya bean, 34% of sugar cane, and nearly half of wheat are produced under irrigation.

Fruit and vegetables, too, rely heavily on irrigation and are therefore in much the same position. Producers of red meat, poultry, pork, wool and dairy are also concerned that rolling blackouts beyond Stage 2 make operations and planning difficult, as these industries all require continuous power for day-to-day functioning.

Agribusinesses involved in downstream processing, such as millers, bakeries, abattoirs, wine processors and animal vaccine producers, face similar challenges.

EXPORT CONCERNS

Export agribusinesses, especially those with products highly sensitive to delays, such as fruit, red meat and wine, are also worried about operations at the country's ports, which fortunately have not been severely affected.

The financial impact of rolling blackouts is difficult to quantify at this stage. However, concerns have been expressed about food security, with the effect of rolling blackouts likely to be evident in the volume of products produced or harvested in the coming months.