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Exchange rates and agriculture

  
 In Blog
 
 
 

The South African currency, the rand (ZAR) is significantly worth less than it was a year ago. What are the implications for agriculture?

  • It is good news for exporters because they are paid in the currencies which are stronger than the local one.
  • It is good news for grain producers as grain prices are derived from international prices.
  • It is bad news for the meat and dairy industries if their product prices do not increase in line with feed price increases. [Find the several individual chapters in the Livestock section of The Agri Handbook].
  • It is bad news when it comes to buying inputs – machineryfuelfertiliser and agro-chemicals.


Written with acknowledgement to Robyn Joubert’s article “Weaker rand’s ups and downs” in the Farmer’s Weekly