South Africa is experiencing one of its worst droughts in a hundred years. This is having a massive effect on the price of food. If certain events come to pass some people won't have enough food to survive.
Mzanzi is experiencing one of its worst droughts in a hundred years, which is having a huge effect on farming. When yields are low, crops fail, or livestock has to be prematurely slaughtered, the price of food goes up.
At what levels will inflation on maize be?
Local and global events have an effect on the price of the food you buy. The current drought is an example of something that will make the price go up, another is the cost of petrol. Sometimes when there is an over-supply food prices come down, but usually they go up. Poor people spend a higher percentage of their income of food than the more well off, and so an increase in food price affects them a lot. Inflation is the increase in prices and fall in the purchasing value of money. Basically it means that for the same amount of money, you get less!
Are you able to find the same amount of work as last year?
When the economy is weak work is hard to come by. In drought-affected areas many farm workers will lose their jobs.
Will social grants stay the same, increase in line with CPI, or increase in line with the cost of maize?
For a developing country, South Africa has a well-established social welfare system and a large proportion of social spending goes towards social grants. Over 16 million South Africans receive social grants.
What additional amount you will need to meet the lower bound poverty line.
The population effected by this scenario
Additional government expenditure required to meet these needs.
R 620.00
Upper bound poverty line
23 Million
Amount of people living below the upper bound poverty line
2000
Minimun amount of calories needed per day:
Maize
Cheapest way to get these calories from
R 4660.00 per ton
Cost of white maize (SAFEX price of 31 December 2015)