Monster fuel price hikes will make food more expensive, squeeze farming profits

pixabay.com, 2018

Higher fuel prices… is going to impact on the profitability of farmers. Eventually, the increased costs will feed through to the market…

Paul Makube, FNB Business

On Wednesday petrol prices go up by 99 cents/litre (93 Octane) and R1/litre (95 Octane).

Diesel will be R1.24 more expensive per litre.

These increases come just as farmers enter the planting season for summer crops.

The oil price – now at more than $80 per barrel – has a massive influence on oil by-products such as fertiliser, pesticides and herbicides.

Ray White (in for Bruce Whitfield on The Money Show) interviewed FNB Business Senior Agricultural Economist, Paul Makube.

Listen to the interview in the audio below (and/or scroll down for more quotes from it).

Farmers are still recovering [from the drought]…

Paul Makube, FNB Business

Farmers are price takers, not price setters.

Paul Makube, FNB Business

A weaker exchange rate does raise the prices and the cost of feeding…

Paul Makube, FNB Business

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