SA farmers remain competitive despite the world changing around them and the challenges they face.
Innovation and long-term thinking can keep local producers globally competitive in the face of ongoing challenges, experts say.
South African farmers are remarkably resourceful and entrepreneurial, consistently producing reliable, affordable, high-quality food that is trusted on the global stage, despite an environment clouded by uncertainty, ranging from geopolitics and tariff debates to shifting politics and regulatory hurdles.
The experts say that to remain globally competitive, the sector must resist short-termism, maintain perspective and harness technology and data-driven insights. This was the central message of the experts speaking at a recent seminar hosted by KAL Group in partnership with Grain SA, Plaasmedia and Nedbank at the annual Swartlandskou in Moorreesburg.
The session, titled “Future of Farming: Separating the Wheat from the Chaff”, explored the outlook for agriculture.
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Politics, perspective and the long-term outlook for local producers
Discussing politics, perspective and the long-term outlook, JP Landman, analyst on political-economic trends, reflected on the formation of the government of national unity (GNU) said while parties are still adjusting to coalition politics, it reflects democracy in action and provides space for pragmatism, which is crucial for agriculture and business confidence.
“While the headlines look messy, no one has walked away from the GNU, and it is positive that South Africa is not under one-party dominance.”
Stellenbosch University’s Economics Professor Johan Fourie provided historical context, pointing out that while it is easy to be negative about politics, South Africans are living in a time of incredible progress compared to a century ago.
“Life was defined by hardship then, such as one in three children dying before they turned five in the Western Cape. Today, even the worst country in the world for child mortality is better off. In Chad, it is one in 10, while in South Africa it is one in 30.”
Theo Vorster, CEO of Galileo Capital and panel host, encouraged delegates to maintain perspective and avoid short-termism by seeking out the facts.
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Global challenges, trade deals and tariffs facing local producers
Turning to global challenges, trade deals and tariffs, Dr Tobias Doyer, CEO of Grain SA, acknowledged that while agriculture remains a strong performer in the broader economy, challenges persist, including fluctuating wheat prices, international tariffs, limited access to breeding technology and chemical use.
“If we did not have a local wheat sector and had to rely entirely on imports, South African consumers would pay R700 million more for wheat, money households would otherwise spend on essentials like school fees or medical expenses.”
Landman agreed that global trade is becoming more complex, particularly with tensions between China and the US and the shifting power balance between the two nations. He explained that China produced 5% of global manufacturing in 1950, but today it is 30%, while the US has fallen from 50% to 15%.
He emphasised that innovation and manufacturing are critical for economic power and financial strength alone is not enough.
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Local producers must improve understanding of trade agreements
Fourie urged South African agricultural players to sharpen their understanding of trade agreements. “We are losing billions of rands because we do not know the rules. For example, our free trade agreement with Europe is underused, leaving exporters to pay tariffs that could be avoided.”
He pointed out that recent data shows that South African exports to the UK are facing similar problems, with £114 million (about R2.7 billion) in vehicle exports in 2024 paying full duties of 10% instead of the 0% tariff guaranteed under a trade deal.
Landman emphasised that high tariffs ultimately hurt citizens by making goods more expensive although they make sense when they improve lives, such as renewable energy cost reductions.
Against this backdrop, all the panellists agreed that the sector’s long-term competitiveness hinges on technology and innovation. Doyer said that Grain SA is already working with research institutions to explore more cost-effective wheat production.
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What future of agriculture depends on for local producers
Sean Walsh, CEO of KAL Group, agreed that the future of agriculture lies in the intelligent use of data to derive insights. “We already scaled our offerings to give clients a powerful new way to shop, manage their accounts and access services seamlessly, bringing our retail offering directly into the homes and businesses of our customers through the Agrimark app.
“We are now exploring how artificial intelligence can be harnessed to support smarter decision-making, drive efficiencies and ultimately create more value for farmers.”
Fourie highlighted that South Africa must attract skilled researchers and innovators to advance, while Landman agreed that farmers are using technology to get ahead. He cited research that shows that since 1994, agricultural value and volumes have doubled, with the additional output now being exported.
“South Africa boasts some of the world’s best agricultural producers, and a supportive environment remains crucial to ensure that food continues to reach local and international tables,” Vorster said.
