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The latest edition of Farmer’s Weekly features a news story about the current pricing methodology of the National Energy Regulator (Nersa), which according to Agri SA, will have a devastating effect on farmers.

Ryan adds that if Eskom’s new prices are going to be based on distribution costs, it will imply that people living on the outskirts of powerlines, such as farmers, will pay the most for electricity in the future.

She says that if Nersa’s current plans are implemented, this could lead to an energy price increase to up to 25% and 30% for farmers. However, the proposed plans are still open for public comment.

Furthermore, another story takes a look at the cost of casual labour in the potato industry which has more than tripled over the past decade – rising from R22 400 per hectare in 2011 to R72 000 per hectare in 2020.

This is according to the latest figures that were released by the National Agricultural Marketing Council. Ryan adds to this by saying that following the increase in the national minimum wage, farm cost of labour has increased to R21,69 and farmers could be forced to rather hire casual labourers.

Another story also takes a look at the possible significant increase in the red meat levy which will come into effect on 4 November 2022. However, Ryan says that according to the chairperson of the Red Meat Producers Organisation, without a serious increase in the red meat levy, the red meat value chain will not be able to compete internationally.

Lastly, readers can look forward to reading about the latest news in the pork industry, which has been in a crisis during the past two years as a result of swine fever and Covid-19.

Ryan explains that pig producers have responded well to these problems and have put systems in place to bring more stability to their pig businesses.

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