South Africa Energy Farmers experience electricity challenges

South African farmers experience electricity challenges.
 
Overview  

The South African farming sector is being put under strain yet again. This time by Eskom, South Africa’s state-owned electricity provider. The farmers are currently experiencing one of the worst bouts of load-shedding (electricity blackouts), with extended periods during critical stretches of growing and harvesting. There does not appear to be a light at the end of the tunnel, although there are ‘guestimates’ that this could take two years before a constant electricity supply is achieved. 

With an extremely diverse array of crops grown in South Africa, most farmers are affected. However, the most fragile crops that are affected, which are also high-value produce destined for export markets, are fruit and vegetables including hydroponic crops. Fruit orchards need a steady supply of electricity to power automated irrigation pumps that spray the fruit. The first quarter of the year is generally the peak of irrigation for these crops. Irrigation affects the size and quality of apples and pears which are destined for the export market. 

Following on from a drought, the Covid-19 pandemic, port inefficiencies and increasing fuel and fertilizer costs, this could be the last straw before farmers consider closing their farms.
The implications in the packing warehouses are much the same. Diesel generators help keep the storage units at the required levels as well as power the necessary processing equipment like conveyor belts. According to Reuters, one packhouse went through 5000 liters of diesel in just under three days to keep operations running. 

Another farmer lost 50 000 chickens overnight, not because there was no electricity but because the power load was too low. Unfortunately, the ventilation system shut down and the chickens suffocated. 
So, why then do farmers not just bounce over to renewables? Well, it is costly and if they aren’t making any money and have to service debt (after the drought and the Covid-19 pandemic), then renewables are not that easy to afford, even though it makes sense. While these options are recognized by farmers, they need to additionally come up with effective and efficient ways to irrigate, spray, harvest, and store. 

Opportunities for U.S Companies 

Energy demands are increasing and reliance on the state to provide electricity is causing concern amongst businesses. Cheaper options for renewable electricity solutions will be key in short to midterm. NERSA, the National Energy Regulator of South Africa, approved the first private power projects under the new license cap amendment, allowing capacity under 100 MW to be brought online without a generation license. Join us for the Agribusiness Sales Program to South Africa, May 15 - 19, 2023.

For more information contact: 
Kirsten Bell, Commercial Specialist Kirsten.Bell@trade.gov 
U.S. Consulate Durban, South Africa