Source: Government of South Africa
Call for policy predictability to support grain farmers
Agriculture Minister John Steenhuisen has called for predictable policies, improved infrastructure and reduced regulatory barriers to support South Africa’s grain producers.
Addressing the Grain SA Congress at NampoPark in Bothaville, in the Free State, on Wednesday, Steenhuisen said grain farmers remain central to the country’s food security and agricultural economy, despite facing mounting structural challenges.
“Very little in South Africa’s food system happens without the work done by grain producers,” he said, noting that staples such as bread, maize meal and livestock feed all begin with decisions made on farms across the country.
Steenhuisen said the agricultural sector employs close to 950 000 South Africans and contributes roughly 6% to 7% of South Africa’s economy when the broader agro-processing value chain is included.
The sector also remains a major foreign revenue source for the country, with agricultural exports worth more than US$15 billion last year, generating a trade surplus of over US$7 billion.
Within the broader agricultural system, the Minister said maize production remains one of the country’s most strategic pillars. South African farmers produce between 10 million and 16 million tonnes of maize annually, depending on rainfall conditions, supplying both domestic consumption and regional export markets.
However, the country remains structurally dependent on wheat imports. South Africa consumes more than 3.5 million tonnes of wheat each year, but local production typically reaches only around two million tonnes, leaving the country reliant on imports for 40% to 50% of its wheat needs.
Steenhuisen said the widening gap between production costs and farm returns has become a major concern across the grain sector.
“That gap reflects a convergence of pressures that producers are being forced to manage simultaneously, including rising input costs, climate variability, infrastructure inefficiencies and global market volatility,” Steenhuisen said.
Input costs remain one of the biggest drivers of financial pressure on farmers, particularly fertiliser and fuel. Fertiliser alone accounts for 35% to 50% of production costs, while South Africa imports more than 80% of its fertiliser requirements, leaving farmers exposed to global supply disruptions and currency fluctuations.
Steenhuisen said recent geopolitical tensions affecting shipping routes in the Middle East could further raise fertiliser transport costs, while diesel prices are projected to increase by about R4.40 per litre from April, adding further pressure on farm budgets.
Fuel already accounts for between 12% and 18% of a farmer’s production costs, meaning incresing prices will affect both winter grain planting and summer harvest operations.
Beyond input costs, Steenhuisen highlighted infrastructure failures as a major constraint on the sector. Freight rail currently carries only 3% of South Africa’s grain and oilseed transport, down from about 20% in 2011, forcing producers to rely increasingly on road transport.
In many farming regions, deteriorating rural roads have become a significant cost burden, increasing fuel consumption, vehicle maintenance, and transport delays.
Steenhuisen said a recent cooperation agreement between government, business and agricultural organisations aims to identify critical agricultural road corridors for targeted infrastructure investment, beginning with a pilot project in the Free State.
Predictable policy implementation was also essential, he said, particularly regarding the wheat import tariff system, which is designed to balance domestic production with the country’s reliance on imported wheat.
He said administrative delays in publishing tariff adjustments can create volatility in the value chain and expose importers, millers and farmers to significant financial risks.
Steenhuisen said government is exploring options for a more automated tariff adjustment system to improve predictability and reduce administrative delays.
Looking ahead, the Minister said innovation and research will be critical to the long-term sustainability of grain production, particularly as climate change increases weather-related risks.
Advances in plant breeding technologies, including gene-editing techniques, such as CRISPR [a revolutionary gene-editing technology derived from bacterial immune systems that allows scientists to precisely add, remove, or alter DNA sequences], could help improve crop resilience and yield stability under changing climatic conditions.
Steenhuisen also highlighted the potential for expanding domestic demand for maize through industries such as biofuels and agro-processing, which could reduce the sector’s dependence on volatile export markets.
“Food security ultimately rests on farm profitability. If farmers cannot operate viable businesses, the entire food system becomes fragile.” – SAnews.gov.za
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