NAMPO 2022
2022 NAMPO Harvest Day Interview
Grain Production in an Environment of a Myriad Challenges Dr Pieter Taljaard, the CEO of Grain South Africa (Grain SA) fields questions from FARMERS REVIEW AFRICA on the 2022 NAMPO Harvest Day and topical issues in world affairs that are having a bearing on local grain production
FRA: How significant is the 2022 NAMPO Harvest Day in the context of the impact of the Ukraine War on global grain production? Dr Taljaard: For clarity of context on the significance of 2022 NAMPO Harvest Day against the backdrop of the Ukraine War, allow me to take you back to the beginning of the pandemic at the outset? What we have learned from our experience with the pandemic, as well as the Ukraine War, is the importance of agriculture - local production in particular. Relating to the Ukraine War, this year there is most likely to be a global scarcity of wheat, which underscores the importance of increasing local wheat production capacity. Lastly, permit me to state something about ourselves which we tend to underestimate sometimes. In South Africa, we produce relatively affordable prices, very high quality and safe foods
32 | May - June 2022
that pass international standards. We have to build on this strength, proudly and passionately. FRA: Are there changes that have been brought aboard to share with stakeholders regarding how they could cope with the impact of the Ukraine war on their operations? Dr Taljaard: It is inevitable that the War in Ukraine will affect local food production. This is given that both Ukraine and Russia are some of the world’s biggest exporters of fertiliser, but also in terms of specific agricultural commodities, especially grains and oilseeds. Fertiliser, specifically when one looks at grains, is the single biggest variable cost. Obviously, it varies from one farm to another, from one region to the other and one crop to the next. Nevertheless, overall, on average, it is the single biggest variable expense.
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Increase in fertiliser prices and restricted supply of crop protection products Even before the Ukraine Crisis, we had seen an increase in fertilizer prices due to various effects, not only global supply chain disruptions, but also production facilities that have not been able to operate as a result of the COVID-19 pandemic. Furthermore, increase in energy prices has exacerbated the situation, as the production process is very energy-intensive. Ideally, local fertilizer production should, to some degree, alleviate the impact of the war on the international supply chain. However, the reality is that it is also beset by transportation challenges (local transport costs) and other structural competitive challenges. Phosphate, for example, gets mined locally outside Pharaborwa, near Kruger National Park and is transported down to Richards Bay by rail, where it is