Food Prices Set to Rise as Agriculture Sector Struggles with Higher Costs
Food prices are expected to rise further as the agriculture sector struggles with higher costs due to a drier El Niño-driven season. The upcoming planting season poses financial pressure on consumers, who are facing a double-edged sword from both ends of the value chain.
Inflation is impacted by the surge in global oil prices caused by the Middle East conflict. This makes food more expensive to produce while also putting pressure on consumers. Jolanda Andrag, AgriSA CEO, said farmers are reviewing their planting decisions due to the high cost and risk of producing the next crop.
Andrag stated that farmers are weighing crop choice, expected prices, rainfall risk, and the amount of working capital they are prepared to put at risk. She emphasized that there is no single percentage of additional costs that farmers can absorb because it varies between farms, regions, and production systems.
Fertiliser remains one of the biggest pressures facing farmers, with StatsSA reporting a 37.6% increase in ammonia nitrate fertiliser prices between March and April 2026. Fertilisers have indicative prices of about R17,500 a tonne for urea, R19,100 for LAN, and R22,700 for MAP.