Amid escalating fuel prices and shortages of fertiliser impacting South African farmers, Agriculture Minister John Steenhuisen expressed optimism that the recent reopening of the Strait of Hormuz will alleviate some of the supply chain pressures.

This development follows Iran’s decision to allow South African ships safe transit through the strategic waterway, coinciding with a delicate two-week ceasefire brokered between the United States and Iran, agreed upon last Wednesday.

Government Measures and Ceasefire: A Dual Approach to Fuel Challenges

During an interview at the DA federal congress in Midrand, Steenhuisen noted that the government has already taken steps to mitigate the impact of rising fuel costs by subsidising the fuel levy. He emphasized that the ceasefire could further contribute to stabilising fuel availability and prices.

“The government has intervened by subsidising the fuel levy to cushion the recent price hikes. With the ceasefire now in place, we anticipate a gradual return to normalcy. However, it remains crucial to enhance our domestic resilience to external shocks,” Steenhuisen explained.

Impact on Agriculture: Diesel and Fertiliser Supply Concerns

Steenhuisen highlighted that the ceasefire is particularly significant for the agricultural sector, which has been grappling with disruptions in diesel and fertiliser supplies.

“The issue extends beyond diesel shortages; fertiliser shipments are also delayed, with two vessels currently stranded in the Strait of Hormuz carrying essential fertiliser for our winter crops. Additionally, South Africa’s capacity to produce fertiliser domestically has diminished due to the decline of Foskor operations, reduced rail infrastructure, and limited mixing capabilities at Richards Bay,” he said.

“Rebuilding these capacities is vital to shield our agricultural sector from future international supply interruptions.”

Advocating for Biofuels: A Sustainable Alternative

Steenhuisen also stressed the importance of expanding biofuel production in South Africa as a strategic move to reduce dependency on imported fuels and support agricultural growth.

“Investing in biodiesel and biofuel industries can transform sectors like sugarcane and sorghum farming, providing farmers with diversified revenue streams through both food and fuel production,” he stated.

Progress in Foot-and-Mouth Disease Vaccination Efforts

In addition to fuel and fertiliser concerns, Steenhuisen provided an update on the national campaign against foot-and-mouth disease, expressing hope that vaccine production will significantly increase in the near future.

“The Agricultural Research Council (ARC) has resumed vaccine manufacturing for the first time since 2019. We recently received 20,000 doses from the latest batch, following an initial 12,900 doses produced two months ago. Our goal is to scale up production to millions of doses by mid-next year to meet national demand,” he said.

Source: Sowetan