South Africa's Wheat Farmers Face Climate-Related Crisis

Grain SA has sounded an alarm over the deteriorating conditions in the Swartland region of South Africa, where grain producers are facing another extremely difficult production season. The region has received significantly less rain than usual, with only approximately 43 mm recorded between June and August compared to a ten-year average of around 202 mm.

The situation is not just about one dry spell or one difficult season, but rather the cumulative effect of several years of eroding margins and increasing production risks. According to Grain SA CEO Dr Tobias Doyer, 'The Swartland's farmers are in trouble... Margins have been eroded over several years, production risks are increasing and producers have very little financial buffer left when the rain does not come.'

The direct input costs for wheat farming have increased by approximately 65% between 2016 and 2026, while the estimated farm-gate wheat price has only increased by around 36%. This means that farmers have less room to absorb losses. Grain SA is calling for affordable and meaningful crop insurance to become a national agricultural priority.

South Africa's wheat value chain contributes approximately R70 billion to R75 billion to the economy and supports around 90,000 jobs. Wheat-based products are consumed by approximately 96% of South African households. Grain SA believes that government and industry must urgently develop a coordinated response to address this crisis.