123% increase in dry bulk volumes expected at CT port
National agricultural
production is estimated to
have declined by more than
42% due to the ongoing
drought, according to the
Western Cape minister
for economic affairs Alan
Winde.
“It has been estimated
that we will need to import
750 000 tons of maize
because of the decline in
production. At the current
maize price, this would
result in a trade loss of
R2.4 billion,” he said last
week ahead of a MINMEC
(ministers and members of
executive council) meeting
where he will table a report
on the impact of the drought.
The Western Cape
economic planning unit was
tasked by Winde to complete
an early analysis of the
impact of the drought.
“This drought may cost the
country more than R2 billion
in trade losses,” said Winde.
According to Sipho Nzuza,
port manager at the Port
of Cape Town, agricultural
imports due to the drought
have resulted in budgets for
dry bulk having to be revised
significantly.
“We are expecting a 123%
increase due to the drought,”
he told FTW.
But as national
agricultural production has
declined it has resulted in a
1.1% decrease in the country’s
gross domestic product.
With national production
down and imports on the
increase, Winde predicted
that consumers would start
feeling the effects of the
drought locally as food prices
increased.
He said the report that
had been drawn up was
comprehensive and would
give a clear indication of the
impact expected.
In the Western Cape
dealing with this impact has
been a priority.
In December emergency
support packages for
emerging farmers in the
hardest hit areas were
approved.
The province has also
appealed to the national
government for drought
relief.
According to Colin Deiner,
head of the Western Cape
Disaster Management Centre
(WCDMC), the drought
situation is continuously
being monitored.
The main areas of concern
are Witzenberg, Prins Albert
and Oudtshoorn.
“The West Coast and
Central Karoo Districts also
remain of some concern at
present,” he said.
INSERT & CAPTION
750 000t of maize will have to be imported
