Agri SA concerned by the negative impact of load shedding on agriculture
11 February 2019
Agri SA acknowledges Eskom’s efforts to keep the lights on, but we are concerned by the potential negative impact that load shedding can have on the agricultural sector and the broader value chain.
Electricity is an important input cost for many farmers, especially farmers that depend on irrigation. The agricultural sector spent approximately R146 billion on intermediate goods and services in 2017/2018, of which electricity amounted to R7 billion (5%).
“Load shedding will have an impact on irrigation-reliant and energy-intensive industries like the horticulture, dairy, poultry, grains and agro-processing industry,” said Nicol Jansen, chairman of Agri SA’s Centre of Excellence: Economics and Trade.
“The negative impact affects producers as well as the end consumer as these sub-sectors play a vital role towards ensuring South Africa’s food security. Over 25% of the country’s food is produced by irrigation-reliant and energy-intensive industries.”