Call for power subsidy for emerging farmers

2010-02-26 12:44

Government should find a way of subsidising electricity for

emerging farmers in the face of Eskom’s tariff hikes, an organisation

representing black stockowners said today.

“There is no way small and medium businesses will survive under

such financial strain,” National Emergent Red Meat Producers’ Organisation

managing director Aggrey Mahanjana said.

“Government’s decision to support such a move will cost an ordinary

emerging farmer almost double his cost of doing business, it is totally

absurd.”

The National Energy Regulator of SA this week granted the power

utility a 24.8% tariff increase for this year, 25.8% for next year, and 25.9%

for 2012.

Mahanjana said land reform beneficiaries were already struggling to

sustain the farms they had acquired.

For them to run a successful farming enterprise, they needed to

ensure that the irrigation facilities were working properly, the farm’s

operational machinery was also working and all of these required fuel and

power.


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