FARMERS will continue to face higher input costs in the coming months, knocking their already tight profit margins, says the Agricultural Business Chamber (Agbiz).
According to its chief economist, Wandile Sihlobo, higher input costs, which have been the dominant feature of South Africa’s agricultural sector over the past year, will likely continue for some months.
“For the crop farming sub-sector, prices of fertiliser, herbicides and insecticides were up by more than 50 percent during the planting period of the 2021/22 season. Hence, the crop losses in various regions of the country caused by floods proved so costly for farmers who had to replant or forego extremely wet areas this season.
“Second, the poultry, and, to an extent, the livestock sector, also had to contend with higher grains and soybean prices…