Blow for agriculture as diesel set to rise, Transnet strike drags on
Agri SA President Jaco Minnaar says there is concern about the impact of the looming diesel price increase on the farming community amid the ongoing Transnet strike.
Trade unions Satawu and Untu downed tools last week at the state-owned ports and rail operator.
The parties have not been able to reach an agreement despite the efforts of the CCMA.
Meanwhile, mid-month data from the Central Energy Fund has diesel going up by R1.60 a litre, while petrol is expected to rise between 41 and 51 cents per litre.
"In terms of the fuel prices we are expecting quite a steep rise in the end of the month,” says Agri SA President Jaco Minnaar.
“In the agricultural sector that certainly has an effect as we are in the start of our planting season for the summer rainy areas so in terms of input costs, it will certainly increase the input cost but in general agriculture makes use of many diesel fumes specifically so that will certainly have an impact on the cost of production in agriculture."
Minnaar says the organisation is hoping for a swift end to the Transnet strike.
"It certainly poses as a threat, at this moment its not that high of a risk. We do believe that the strike will end rather sooner than later but if this continues for a longer period it can have an impact on food prices in our local production and food prices at which can impact food security, but at this moment it is still pretty slim but the longer it goes the higher the risk."
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