The Middle East conflict, coupled with the persistent threat of climate change and a national state of disaster regarding Foot-and-Mouth Disease, is driving input costs for South African (SA) farmers to record highs.
Speaking at the National Maize Producers Organisation Harvest Day in Bothaville, Standard Bank’s Head of AgriBusiness, Brendan Jacobs, warned that the geopolitical tension between the United States and Iran has hit the sector through higher fuel and fertilizer costs.
Jacobs says, “So, in SA, a significant component of our diesel and fertilizer comes from the Middle East. So, we’ve seen significant rise in input costs and it’s very important for clients to speak to their bankers around their unique situations again, where we come in as the support in the cash flow management during that period. And again, there’s no one-size-fits-all situation. We look at each client in its own merits, but we are aware of the situation, and we look at it in that light, considering the impact that’s there.”
Meanwhile, SA Agriculture Minister John Steenhuisen says the government’s vaccination programme against Foot-and-Mouth Disease is gaining momentum.
–SABC–
