Agriculture costs skyrocket amid electricity crisis

02 February 2023

During an oversight visit to the Western Cape Department of Agriculture’s Oudtshoorn Research Farm, the real increases in operating costs our farmers face due to rolling blackouts were made painfully clear.

The farm, which provides invaluable research to support our world-class ostrich industry, has had to more than double its budgeted expenditure on diesel, with the Department having to approach Provincial Treasury for additional funding.

As the hatchery needs to be heated and climate controlled, constant power is needed for this farm to perform its functions. The farm is the only facility in the world that does research regarding the ostrich industry. The industry is still severely hampered by Avian Influenza and the ban on the export of raw ostrich meat. Interruptions to the research can have devastating real-world consequences for the industry.

The challenges caused by load-shedding are of course not limited to research farms, but apply to the entire agricultural sector, with each sector of farming facing its own challenges.

With diesel becoming ever more important to run generators, it must also be noted that the cost of diesel includes various levies, including for the Road Accident Fund.

The DA is therefore calling for a rebate to be instituted, that refunds levies on fuel used for generators by qualifying farmers, business and residents. This will be one step towards keeping the cost of living, which is spiralling out of control, within reason and making sure we don’t soon have a situation where we have no food security, and where the vast majority cannot afford the food that is available.

Statement issued by Andricus van der Westhuizen, MPP - DA Western Cape Spokesperson on Agriculture, 2 February 2023