WANDILE SIHLOBO: Lower export demand will be among agriculture’s Covid challenges

The potential rise in oil prices and weak demand for SA’s agricultural exports from most regions are two additional challenges for the agricultural sector that are spinning off the Covid-19 pandemic.

Global oil prices came under pressure at the beginning of March after a dispute between Saudi Arabia and Russia, which led to both countries increasing their oil production. Brent crude prices fell 60% before staging a 29% recovery to end at $24 per barrel last week. The collapse in oil prices was beneficial to oil and petroleum product importing countries such as SA, as it offset the effect of a drastic weakening of their domestic currencies over the same period.