The wheat crop in South Africa has largely failed. The country is experiencing its worst drought in more than a century. That reports SABC News.
It is estimated that more than half of the crop has been lost. That equates to a financial loss approaching €40 million (Rand 650 million). And that also means that South Africa will have to import wheat. The import requirement is now 60%. That is 10% more than the normal volume.
Drought is taking a toll
The drought in the Western Cape, which is the heart of wheat production, is cutting it hard. For some growers it is the third season without a decent harvest. Their cash flow and decline in assets and assets are therefore under considerable pressure.
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