High fertiliser prices: a threat to food security
The Russia-Ukraine conflict will have a direct impact on food exports and supply chains, due to these two countries’ significance as agricultural producers. In South Africa, we can expect to see a rise in the prices of vegetable oils and staples such as bread, as we import the commodities needed to produce these products. We’ll also see a further rise in the prices of petrol and diesel, with some analysts predicting that they could increase by as much as R2/ℓ and R3/ℓ respectively in April. Of course, this all depends on the strength of the rand and the price of oil, which are both volatile at the moment. While we have covered the Russia-Ukraine conflict in quite some detail over the past few weeks, I want to focus specifically on its effects…