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14 March 2023 | Story Prof Frikkie Maré | Photo Supplied
Prof Frikkie Mare
Prof Frikkie Maré is the Academic Departmental Head: Agricultural Economics, University of the Free State

Opinion article by Prof Frikkie Maré, Department of Agricultural Economics, University of the Free State.
President Cyril Ramaphosa recently announced a state of disaster due to the electricity crisis and the appointment of the new Minister of Electricity in the Presidency, Dr Kgosientsho Ramokgopa. Although there are many arguments for and against the state of disaster and the position of a Minister of Electricity, I think all South Africans agree that drastic measures must be taken to improve the current situation. However, I do not think the state of disaster, or the Minister of Electricity will bring any quick fixes to the table, and therefore we have to assume the crisis will remain in the short to medium term.

The Cause of the Crisis

As South Africans, our biggest crisis at this stage is load shedding. We are confronted with darkness daily, or even twice or thrice a day. Although the impact of load shedding varies according to the time of day it is implemented, it generally hinders us from doing our work, preparing food, and relaxing in front of the television after work. It directly impacts the quality of life of those who need electricity for oxygen machines for them to breathe. It causes damage to our electrical appliances, especially due to power surges when the electricity is turned back on. In short, load shedding is disrupting our lives. It is a nuisance we do not need, and the sooner it ends, the better.

Load shedding may be be a crisis for us as citizens, but it is Eskom’s solution to keep the national grid from collapsing. Thus, the real cause of the crisis is not load shedding but the inability of Eskom to supply enough electricity to meet the demand. The second big concern is the rising cost of electricity in South Africa. From 2007 to 2022, electricity prices increased by 653% in an attempt by Eskom to increase revenue to try and catch up with its heavy debt burden while simultaneously trying to maintain the current power stations and add some new generation capacity.

The problem

South Africa, up until load shedding started in 2007, was always praised as one of the countries in the world with the most stable electricity supply, and electricity was priced among the lowest in the world. Our economy thus developed around the national grid and is heavily reliant on it. Given the above, our food system faces three problems. First and most visible is load shedding that is causing interrupted national power supply and increasing production and processing costs as fuel generators and solar power must be relied on. Secondly, the cost of food production, processing, and distribution increases sharply as national electricity prices increase. Third, new investments in the food chain are discouraged as it is heavily reliant on electricity, which there is not enough of.

The impact

Over the last number of months, the media was full of the impact of load shedding on the food system in South Africa. Visually it ranged from photos and videos of withered irrigated crops which failed as there were not enough hours of electricity to supply water. There were pictures of chicken farms full of dead broilers that died when the heating and ventilation systems could not function during load shedding. Many articles also warned that load shedding would hurt food security in South Africa as it would not be possible to produce or process enough food.

These reported impacts of load shedding on food security caused quite a frenzy among consumers as people tend to run with what is announced in headlines without reading or understanding the context. Consumers immediately fear a situation where there will be insufficient food in South Africa as the headlines read that food security is under pressure.  

Yes, although all the photos, videos and articles in the news might be true and certainly do impact food security, we must also remember that food security is a combination of the availability and affordability of food.  

The impact of load shedding on food production depends on the type of production system. While load shedding has a minimal impact on extensive red meat production, it can be detrimental to intensive systems like poultry production, especially if electrical heating is used to regulate the temperature. It also negatively affects producers relying on irrigation to water their crops as the quality and quantity of the crop will be influenced.

The effect of load shedding can be severe on certain primary producers and even cause farming operations to close. Still, it will not necessarily result in a food shortage in the country as our primary agricultural sector is diverse. However, the price of certain commodities will increase due to a lower supply and higher production costs, negatively influencing food affordability.

The larger problem with load shedding can be found in terms of processing the food, especially fresh produce reliant on a sustained cold chain. For food safety and quality reasons, fresh produce must be kept at constant temperatures, and processors and distributors thus have no choice but to use expensive private electricity generation, further pushing up the cost of food.

Another problem is that, for example, the cold rooms of processors are connected to generators, as power failures might happen even when load shedding is not a problem. Still, the processing line cannot operate without grid-supplied electricity. Although there is thus enough food in the country on a commodity level, these commodities cannot be processed into final food products as fast as in the past. This bottle-neck effect further reduces the supply of food products and increases their price.

We often forget about the impact of load shedding on the consumers’ food choices. If you need electricity to prepare food, the availability of electricity at the time you need to prepare it will affect what you eat. The problem is that more affordable foods usually take longer to prepare, while the quick-to-prepare, ready-to-eat fast foods are expensive. The higher demand for these more expensive products due to load shedding puts further upward pressure on the price of food.

So where are the monsters?

The electricity crisis impacts all roleplayers in the food value chain, from primary producers to final consumers. Although load shedding is the most visible monster here, the fast-increasing price of electricity and the general electricity shortage that discourages future investment are also lurking in the dark and contributing to problems in the overall food system. In my opinion, the electricity crisis currently does not yet threaten food security in terms of availability. Still, it is creating a monster in terms of food prices (inflation) and thus making food less affordable.  

Although private solar power and fuel generators do assist in alleviating some of the influences of the electricity crises, it is not the solution. The problem with solar power, for users requiring large amounts of electricity, is that it is too expensive to install storage capacity (batteries) to use during the night. You also have a problem when it is overcast and rainy, so solar is a mere addition to supplement the national grid during the day. On the other hand, fuel generators can supply electricity 24 hours a day. Still, only the fuel cost to generate 1kW is double what Eskom charges, making it too expensive in the long run.

In my view, the only option to ensure the sustainability of the food value chain in future is to get the national electricity grid functional again. There are many short-term solutions, but none is currently sustainable enough to provide affordable energy needs. Although it will certainly take time to get Eskom fully functional again, I do not think we will run out of food in South Africa. However, we must tighten our belts to be able to afford food while the monsters lurk in the dark.


For more information contact Frikkie Maré at MareFA@ufs.ac.za

News Archive

UFS responds to concerns around high costs of higher education
2015-10-15

 

Dear Students

UFS responds to concerns around high costs of higher education

There is an understandable and shared concern among students in the country around the high costs of higher education. As you know, this also is a matter of deep concern on our campuses, which the University of the Free State (UFS) has made a priority in discussions with student leaders - and through new strategies to relieve the burden of costs on poor students and their families. In fact, in the past two weeks, the UFS leadership has again engaged students on the matter of fees in the future.

This is what we have done so far. We have maintained our position as one of the universities with the lowest tuition fees in the country. As you would have seen from recent newspaper reports on the cost of a degree at various institutions over the past five years, the UFS has had consistently low fees. This is not an accident; both the University Council and the executive leadership of the UFS is of one mind that we must offer a high quality education at minimum cost to all our students, despite the rising costs of operating a large multi-campus university with 30 000 students. Our commitment to you is to continue to keep those costs to students as low as possible, without compromising on the quality of education.

In addition, we took a decision earlier this year to become the first university to drop application fees for first-year students. We are proud of that achievement, since so many students fall at this first hurdle as they contemplate post-school education and training. We also waived registration fees for postgraduate students and now Research Master’s and PhD students can study tuition free under certain conditions. We raised more than R60 million from the private sector to enable talented students, who do not receive NSFAS funding, to complete their degree studies at the UFS. We set aside some of the university’s own funds to enable even more students to access finance for their studies. And we now have a special office set aside to counsel and assist students to apply for more than one scholarship to support their studies. The university does not follow a policy of maximizing exclusions. It has endeavoured and succeeded to turn around the majority of its potential deregistration cases. During 2015 we had 2 700 students at the risk of being de-registered, but our serious efforts resulted in only over 200 instances of exclusion we could not mitigate. As is the practice for the past few years, these students’ debt for 2015 has been reversed.

But, we do not only look for funds from outside to support our students. Last year we set up a Staff Fund to which ordinary members of the academic and support staff can contribute from their own, and sometimes very modest, salaries to enable Kovsie students to finish their degrees. We have volunteers who work on the No Student Hungry (NSH) Bursary Programme to raise funds for students who cannot afford a regular meal. We have an open line to rural and township schools to nominate poor students with good results for support by the Rector’s Fund, and some of those students are now in their final year of studies. And many of our staff support individual students in their homes and with their families, without being asked to do so. This is what we call the Human Project and it remains central to the way in which we deal with students.

We will of course continue to make representation to government, the private sector, and individuals to increase funding, especially for first-generation students, and for families where more than one student is at university. We will continue to take to the road to raise funds from companies and foundations to finance our students. We will expand on-campus opportunities for limited working hours for students who wish to earn some money to support their studies. As we have said often before, no student who passes all their courses or modules will be turned away simply because they do not have the funds to study.

The UFS discusses and agrees to fee increases with our students well in advance of the next academic year. None of these decisions are taken without the agreement of the student leadership and thus far these engagements, while tough, have always been done in good faith and with the students’ interests at heart.

It is important for you to know that, with the declining government subsidy, in real terms, and the expanding needs of our students, we will not be able to keep the university running without fees - even though this source of revenue comes mainly through scholarships and bursaries. We need to compensate staff, purchase new library books and renew journal subscriptions (which is very difficult given the low value of the Rand), upgrade computers and software, pay rates and taxes, purchase laboratory equipment, pay the water and electricity bills, expand internet services, upgrade campus security, and hire more academics to keep class sizes reasonably small. It is important for you to know that the university has managed to avoid increasing student fees as a result of much higher municipal rates. Our lecturers are not the highest paid in the country and financially we run a tight ship. We consistently achieve unqualified audits and we are known to be one of the universities that manage its NSFAS contributions with great efficiency. We do this because of our commitment to ensure that our students are able to enjoy a high quality of education on a stable campus where there is a deep respect for all campus citizens.

Despite all these efforts, the most important message we wish to communicate, is that the door remains open for continued discussion with student leaders as we continue to find ways of keeping university education open and accessible to all qualifying students. At the same time, the UFS leadership is involved in discussions with government about how to best manage the escalating cost of higher education for our dents.

Thank you for your support and understanding at this time and be assured, once again, of our commitment to students as a matter of priority to the university leadership.

Best regards

Prof Jonathan Jansen
Vice-Chancellor and Rector

University of the Free State
19 October 2015

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