Load-shedding poses long-term risks to sector

The ongoing power outages have a significant impact on the agriculture sector – and the wider economy – which holds serious implications for food security and social stability.

Industry body Agri SA explains that the extended period of level six load-shedding threatens the viability of the sector while an escalation to level seven and higher would be catastrophic and pose a risk to the country's national security.

Load-shedding contributes to inflation and may result in farmers planting less owing to rising costs and disruption in planting schedules. Load-shedding increases the cost of production for farmers at a time when South Africans are facing further food price increases and are under unprecedented economic pressure. This causes further risks and uncertainties.

Electricity is central to modern farming practices and the recent increase in load-shedding has seriously disrupted farming operations. Pumping stations, irrigation, cooling and other systems all depend on power supply. While some farmers have the means to move away from the power grid, most are unable to do so. This is especially true for the most vulnerable small-scale farmers. Farmers forfeit their water quotas for irrigation purposes when the power is off – an irrecoverable loss that paralyses farms.

Farmers are already reporting huge losses as processing machinery, irrigation equipment and other machinery are damaged and come to a standstill owing to power outages. With essential systems unavailable during the day, farm workers are required to work after hours. Overtime wages increase production costs which are already increasing.

The power outages are also causing waste and financial losses owing to the impact on food storage. Retailers are starting to reject fresh produce, mainly vegetables owing to delays in delivery and disruption in the cold chain. In summer this challenge increases exponentially. This will reduce the amount of food available and increase its cost to the consumer.

While the South African economy is facing these and other challenges, Agri SA and its members are committed to working with all role-players to ensure food security in the country. However, it requires urgent action.

“We trust that the Presidency will prioritise stability and safety at all power plants,” says Agri SA.

As these plants are regarded as national key points, Agri SA makes an urgent request that sites of strategic importance be protected against sabotage.