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Roelie van Reenen, Supply Chain Executive at the Beefmaster Group, explains that input costs, such as rising fuel prices, are factored into the food price, which means that food will naturally become more expensive as the fuel price increases. He says if fuel prices can be kept at bay, this will have a positive spin-off for the price and production of food for consumers and farmers.

In a media release from Magna Carta, they say a recent online poll by Beefmaster Group shows 78% of participants said they are worried about the Russia-Ukraine crisis and its impact on fuel prices, which trumped worries about possible grain price increases (14%).  

He urges the government to do more to create an enabling environment for consumers, farmers, and businesses in the beef and agricultural sectors.

His comments came after President Cyril Ramaphosa reiterated the importance of the agricultural sector to South Africa’s recovery at a recent event hosted by the Bonsmara Breeders’ Society. An enabling environment is very difficult with the current restrictions in place, therefore he encouraged lifting the national state of disaster.

Van Reenen adds that in pre-pandemic times, agricultural shows and events were an excellent revenue generator and vital promotion platform for the sector, which has fallen away during Covid-19 due to the restrictions in place.  

“Our sector needs to be visible on public platforms. Agricultural players all across Africa would attend events like Nampo, the biggest agricultural show in the southern hemisphere, and money would be spent there and circulated back into the economy. The current restrictions are making it very difficult to have large-scale events, which is necessary to stimulate and ensure a thriving economy and agricultural sector,” concludes Van Reenen.    

OFM News/Lee Simmons