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  • 13 hours ago
South African consumers are bracing for food price increases after petrol prices went up because of the war in Iran. But it's not only the fuel prices that are driving prices up, it's also the cost of fertilizer.
Transcript
00:00Junia Lemokwana is finding herself doing difficult calculations for her weekly shop.
00:06Whichever way she looks at it, it doesn't add up.
00:09What can she afford to buy for her family?
00:11And what does she have to leave behind?
00:14I think we're coping just by the grace of God.
00:16It's hard.
00:18The pinch is felt by everyone, everywhere.
00:20We're also feeling it.
00:21She's one of millions of South Africans nervously looking at both their wallets
00:26and events unfolding in Iran.
00:28The conflict pushed up petrol and diesel prices,
00:32making the transport of goods more expensive.
00:35This fellow shopper says the latest price increase has her on edge.
00:40I feel the price increase is hectically a very heavy knock
00:46because me speaking as a pensioner, it's very hard.
00:51I go into a shop and I take necessary stuff.
00:56I do away with luxuries.
01:00I do away with a lot of stuff.
01:02The owners and workers of this family-owned store are worried.
01:08Firstly, with the price of fuel already increasing,
01:12they're anticipating that it will become more expensive
01:15to get products like these onto their shelves.
01:18Secondly, they're concerned that in some cases farmers might choose not to plant certain crops
01:24because of the cost of fuel.
01:26And this in turn will lead to increases in prices that they'll have to pass on to customers.
01:32Terry Fock has been working with produce for over 40 years,
01:37first as a farmer and later in distribution.
01:40He says the increased costs can break a farmer's profit margin.
01:45Diesel affects everything.
01:48You know, the farmers need fertilizer.
01:49It's going to affect the price of fertilizer.
01:51They need seed.
01:53They need packaging.
01:54You know, the increase in diesel is going to affect all that stuff,
01:59that input cost.
02:00It's all going to go up.
02:01So it's not just putting diesel in your tank and driving.
02:05It's everything else.
02:06And many South African farmers are either preparing to harvest summer crops,
02:11which requires a lot of fuel,
02:13or plant winter crops, which require a lot of fertilizer.
02:18South Africa imports 80% of its fertilizer
02:22and 33% of global nitrogen supplies originate in the Middle East.
02:27We'll start to worry more about the fertilizer prices
02:30from June onwards because the next season,
02:33which is critical, starts from October 2026.
02:37And that's the reality of South Africa,
02:39but also that's the reality of the greater part of the continent
02:42because much of the countries in the sub-Saharan Africa region,
02:45they receive some of the fertilizer from South Africa.
02:48So availability of it here has implications from the region.
02:53While larger farms and businesses
02:56may be able to absorb the immediate shocks,
02:59smaller businesses and households could struggle.
03:04It's unfortunate, but in every price increase,
03:08that's where it ends up the consumer has to pay more.
03:11And that's the bottom line.
03:15And in a country with over 30% unemployment
03:18and poverty levels as high as in South Africa,
03:21small changes in the cost of living can have a big impact.
03:29hotel staff and goodwill relationships,
03:29and no matter what you'll have to do,
03:30We'll have an income that's going to be a big impact.
03:30We're going to see the details of the워ptown level.
03:30we're going to see that it's probably the next day.
03:30It doesn't matter if they're going to be
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