Rising costs put South African Grain farmers under pressure
South Africa’s grain farmers are facing growing pressure as the cost of diesel and fertiliser continues to climb, placing strain on production and raising concerns about the country’s food supply.
What was already a challenging environment is becoming even tougher as input costs rise at a pace many farmers struggle to keep up with.
Diesel remains one of the most important inputs in farming, accounting for around 13 to 15 percent of the cost of producing crops. Grain SA has warned that diesel prices could increase by more than R8 per litre in the next fuel price adjustment. Such a sharp rise would not only affect farmers but also transport operators and, ultimately, consumers who depend on stable food prices.
The issue is made worse by South Africa’s reliance on imported fuel. Since most diesel is sourced from global markets, local farmers are directly exposed to international price shifts. Each increase filters through the entire agricultural chain, from planting to harvesting and distribution.
Fertiliser adds an even heavier burden. It represents between 30 and 50 percent of a farmer’s production costs, making it one of the most significant expenses in grain farming. With more than 80 percent of fertiliser being imported, farmers have little control over pricing and are vulnerable to global supply changes.
Grain SA chairperson Richard Krige said farmers are dealing with one of the sharpest cost increases in recent years, especially as they prepare for winter planting while managing the harvest of summer crops. The timing makes the situation even more difficult, as cash flow is already under pressure during these periods.
There are also concerns about pricing practices within the fertiliser market. Grain SA has questioned whether some suppliers are charging higher prices despite having purchased stock at lower rates.
Grain SA CEO Dr Tobias Doyer called on companies and government to act responsibly and work together to keep the sector stable.
"Farmers cannot handle endless cost increases," Doyer said, warning that disruptions to farming could have serious consequences for the country's food supply.
As costs continue to rise, the future of food production in South Africa hangs in the balance.