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Diesel price rise set to be disastrous

18 Jan 2012
A diesel price increase of nearly 48c/ℓ was announced on 7 December, and will cost grain and oil seed producers an additional R91 million this planting season. According to Corn? Louw, senior economist for input costs at Grain SA, it is estimated that producers will use 50ℓ/ha of diesel for the rest of the season for, among other things, planting, harvesting and transport. “At the current diesel price of R10,49/ℓ that means an extra cost of R24/ha,” he explained. “We expect that nearly 3,8 million hectares will be planted to grain and oilseeds this season, so we’re looking at an alarming increase in input costs which will impact on profitability.”

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