Exchange rates and agriculture

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 - machinery, fuel, fertiliser and agro-chemicals.

Written with acknowledgement to Robyn Joubert's article "Weaker rand's ups and downs" in the Farmer's Weekly