Eskom’s failure to fulfil its primary function is costing the agricultural sector from all directions. The electricity utility’s power cuts have forced food producers to either significantly scale down their operations or completely shut down.
Experts are worried that Eskom’s “poor governance” will ultimately lead to food shortages and place further pressure on consumers.
Every time that the plug is pulled, livestock breeder Mogorosi Modise’s profit margins are squeezed. The cattle breeder from Taung in North West fears daily for his business.
“The load shedding is really making things difficult for us because I need to use electricity so that I can make feed for the cattle,” he said.
Modise has felt the heavy burden that power cuts have placed on his shoulders. He says he has had to make several changes on his farm so that he is able to maintain it.
Making do with back-ups
“I have had to buy generators and a power converter so that I am able to keep the lights on,” he told Food For Mzansi.
And as if load shedding is not enough, Modise along with the rest of Mzansi’s food producers will have to now factor in the National Energy Regulator of South Africa’s (Nersa’s) approved 18.65% electricity tariff increase. This increase is for the 2023-2024 financial year.
According to experts, severe load shedding, like stage 6 as the country is currently experiencing, makes operations and planning difficult for red meat, poultry, piggery, wool, and dairy production. These industries all require continuous power for their usual activities.
What about crop farmers?
The agricultural industries most affected by power cuts include poultry, dairy and crop farms, as well as fruit and vegetable farms.
According to CEO of Citrus Growers Association Justin Chadwich, the rolling stage 6 blackouts have been a great concern for the citrus industry due to its threat to the 2023 citrus crop and expert season.
“Load shedding impacts the entire citrus value chain when it comes to citrus farmers. The vast majority of irrigation systems run on electricity as well as the ability to operate pump stations virtually 24/7 in order to ensure the right volume of water is irrigated within a weekly cycle,” he explained.
Farmers who produce field crops face similar challenges. In crucial field crops, roughly 20% of maize, 15% of soybean, 34% of sugarcane and nearly half of the wheat production are produced under irrigation.
Impact on consumers
Agricultural researcher and farmer Dr Qinisani Qwabe agreed that South Africa’s energy crisis means decreased production of staple food such as bread and maize meal which most households rely on.
“Just [the other day] as I was doing my groceries, it occurred to me that what used to cost me R200 about a year ago, now costs triple that amount.
“When I engaged the store manager, I was told that they are running short of suppliers as most producers are now shutting down their operations due to the power cuts,” Qwabe said.
Apart from food inflation, he is of the view that Eskom’s power cuts will also translate to job losses, ultimately giving birth to poverty.
“I [can’t] help but wonder where we are headed as a country in terms of food security as most of our production systems in the agricultural sector are highly dependent on energy, particularly enterprises, that are mainly involved in processing,” said Qwabe.
Citrus industry feeling the pinch
A task team appointed by national agricultural minister Thoko Didiza, is said to be working on finding solutions to soften the blow to the sector.
Chadwick has since warned that should load shedding continue, the upcoming citrus export season at the end of March and early April will be negatively impacted.
Operations at the ports and cold storage operations are also not safe and will impact the quality of the fruit being shipped to overseas markets.
“Continuous power cuts and a hike in electricity prices will have a devastating impact on farmers who are already facing a number of other challenges.
“[This includes a] surge in farming input prices and transport costs, astronomical shipping price hikes; the unjustified and discriminatory new False Coddling Moth (FCM) regulations passed by the European Union (EU) mid-season 2022, as well as the ongoing decay of public infrastructure such as road, rails and port operations,” Chadwick explained.
Already tight margins for citrus producers could be squeezed even further, which means many farmers could not make a positive return this year, Chadwick added.
This, unfortunately, poses a threat to the sustainability of the entire industry and the 130 000 jobs it sustains, he continued.
Chadwick hopes the current challenges faced by Eskom are addressed urgently by the government and that alternative sources of electricity are added to the grid as soon as possible.
Could farmers be exempt from power cuts?
Meanwhile, Mogorosi hopes the government exempts farmers from load shedding. If not, he urges the government to rather install alternative energy sources for farmers.
“At the moment we are handling food and we cannot supply bad quality food to our markets. If our cattle are not fed properly, we lose markets and they are then not able to supply to the general public. This is a real problem,” he pointed out.
Wandile Sihlobo, chief economist at Agbiz, agreed that alternative power sources will need to be prioritised where financial resources permit.
However, total exemption of the sector from load shedding will be near impossible, he said.
“Many food processing companies and farms are technically linked to other localities and cannot be easily insulated from load shedding.”
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