(Ecofin Agency) - In South Africa, the Western Cape province could record a cut by 20% in agricultural output this year due to a severe drought that has been affecting the country for 3 years now, Reuters reports.
According to Alan Winde (photo), Western Cape’s economic opportunities minister, the financial losses should stand at R5.9 billion ($498 million) during the period under review.
Wheat is going to be the most affected crop with a decline from 1.1 million tons in 2017 to 586, 000 tons in 2018. This drop of more than 46% will result in R2.4 billion ($202 million) worth of economic damage in the cereals sector.
At the national level, the collapse in Western Cape’s wheat production, which provides half of the overall stock, will force authorities to import 2 million tons of the cereal this season, more than double of the volume (935, 000 tons) exported last year.
Let’s recall that the drought has already resulted in the loss of more than 30,000 jobs in the province and led the agriculture sector to cut water use by 60%.
Espoir Olodo