Get set for more bread hikes

2008-01-15 00:00

Dale Vanden Aardweg, a wheat farmer in Winterton — a huge wheat producing area in KZN — said consumers should brace themselves for more bread price increases in the future.

According to Vanden Aardweg, the wheat increase is not just a national problem based on South African prices, but follows the international trend of grain shortages.

He said this shortage is simply because the market is not listening to the producers, the farmers.

“There is a huge shortage of maize because farmers stopped producing. In the last three years, many farmers realised they could not survive producing wheat, because they were not making a profit. It was just not worth it. And because of the shortage, prices escalated and my feeling is that in the long term, prices will experience a bigger increase. Things will definitely get worse before they get better.”

Over the last year alone, the wheat price has tripled from R1 000 a ton to R3 000, he said.

While this sounds like good news for the wheat farmers, Vanden Aardweg said it is not as clear cut as that.

“You have to realise that growing wheat is a process. You need fertiliser to prepare for planting and you need another six months for harvesting. It does not happen overnight. And you need to consider that because of the decrease in wheat production, the seed demand goes down. So that element also plays a part … I think it will take another 18 months before prices are regulated and farmers can produce enough to have a surplus.”

Vanden Aardweg said other factors that have contributed to rocketing prices are land redistribution and increased population.

He said there is a lot of land that contributed to production in the past but is now lying fallow because its new owners have not been trained to produce.

“There is an influx of six million people coming from neighbouring borders. We end up with increased populations, but decreased production.”

However, with the conditions being more favourable, Vanden Aardweg believes many farmers are ready to make a comeback.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.