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Petrol price hike of R4/litre possible in June – what happens to food inflation?

24 May 2022 1:10 PM
Tags:
Russia
Ukraine
Food prices
Food price inflation
Agriculture
Food
John Purchase
AgBiz
Lester Kiewit
The Morning Review
sunflower oil
War in Ukraine

Lester Kiewit interviews independent analyst and former Agbiz CEO Dr John Purchase.

Retailers in South Africa have started imposing per-customer limits on cooking oil as Russia’s war in Ukraine wreaks havoc with supplies.

South Africa is the 10th largest source of sunflowers in the world, producing more than 700 000 tonnes per year.

Nevertheless, we’re running out of supplies.

© nito500/123rf.com

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Russia and Ukraine are the world’s leading producers.

Agricultural economists expect a bumper sunflower crop in South Africa, but not enough to meet our needs.

Food price inflation will remain elevated for as long as the war disrupts production.

Lester Kiewit interviewed independent analyst and former Agbiz CEO Dr John Purchase (scroll up to listen).

This year, we’re expecting a larger crop of around 900 000 tonnes… although we are still a net importer… Vegetable oils have increased massively over the past few months… Our prices are linked to international ones…

Dr John Purchase

We import a lot of palm oil… We don’t foresee a shortage… But the price will remain elevated… To replenish stocks… will take a season or two… We see increased plantings of canola in the Western Cape… Prices incentivise entrepreneurs…

Dr John Purchase

… suggested that petrol will increase by R4 per litre in the next month… Huge quantities of fertiliser come from Russia and Ukraine… Those prices are climbing by at least 30% to 50%... This is the price we pay for the madness of war…

Dr John Purchase

Shipping costs have quadrupled… Inflation across the world… Our food inflation has come down a little bit… We see it at 6% for 2022… The crisis is not over yet…

Dr John Purchase

This article first appeared on CapeTalk : Petrol price hike of R4/litre possible in June – what happens to food inflation?




24 May 2022 1:10 PM
Tags:
Russia
Ukraine
Food prices
Food price inflation
Agriculture
Food
John Purchase
AgBiz
Lester Kiewit
The Morning Review
sunflower oil
War in Ukraine

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