Minister John Steenhuisen Addresses Grain SA Congress at NAMPO Park in Bothaville

South Africa’s agricultural sector gathered in the Free State as industry leaders, farmers, and stakeholders met for the Grain SA Congress at NAMPO Park in Bothaville. The event provided an important platform for discussions about the future of the grain industry and the role it plays in sustaining the national food system. John Steenhuisen, the country’s Minister of Agriculture, delivered a keynote address that focused on the challenges and opportunities facing grain producers. His speech highlighted the economic importance of agriculture while also acknowledging the pressures that farmers continue to face in a rapidly changing global environment. The congress brought together representatives from across the grain value chain to examine the sector’s sustainability and profitability.

The gathering was hosted by Grain SA and took place at NAMPO Park, one of the most important agricultural venues in the country. The congress welcomed farmers from across South Africa as well as agribusiness leaders, researchers and policymakers who share a common interest in strengthening the agricultural economy. During his remarks, Steenhuisen acknowledged the leadership of Grain SA chairperson Richard Krige and chief executive Tobias Doyer for their work in supporting grain producers. The event served as an opportunity to exchange ideas, examine market realities and discuss policy reforms that can help the sector remain competitive. Participants used the platform to assess both immediate challenges and long term strategies that will shape South African agriculture.

Steenhuisen began his address by emphasizing the central role grain farmers play in the country’s food supply. He noted that grain production rarely dominates national conversations despite its critical importance to everyday life. Staple foods such as bread and maize meal depend directly on the work of farmers who plant and harvest crops each season. Livestock industries, milling operations and food processors also rely on the output generated by grain farms across the country. The minister explained that decisions made on these farms ultimately influence the stability of the entire food system.

Agriculture remains a major contributor to South Africa’s economy and employment. Steenhuisen pointed out that the sector currently supports close to 950000 jobs across the country. When agro processing and related industries are included, agriculture contributes between six and seven percent of national economic output. The sector also generates significant foreign income through exports. South Africa exported agricultural goods worth more than 15 billion United States dollars in the past year, producing a trade surplus of over 7 billion dollars.

Grain production remains one of the most strategic parts of this broader agricultural system. South African farmers produce between 10 million and 16 million tonnes of maize each year depending on rainfall conditions. This output supports domestic consumption while also supplying regional export markets. Wheat production, however, presents a different picture. South Africa consumes more than 3.5 million tonnes of wheat annually while local production typically reaches about 2 million tonnes, leaving the country dependent on imports for around half of its needs.

The minister highlighted that the theme of the congress, Opening the Gap Sustainability key profitability foremost, reflects a major concern within the industry. Farmers face a widening gap between production costs and the income they receive from selling their crops. This challenge stems from multiple pressures that affect producers at the same time. Rising input prices, climate variability, infrastructure inefficiencies and volatile global markets all combine to reduce profitability. Wheat producers in the Western Cape and other regions have warned that current market conditions make wheat farming increasingly difficult to sustain.

Input costs represent one of the most significant pressures on grain farmers. Steenhuisen explained that most agricultural inputs used in South Africa rely on imported raw materials. As a result, farmers are exposed to fluctuations in global commodity prices and exchange rate movements. Fertiliser alone can account for between 35 percent and 50 percent of a farmer’s production costs depending on the region. Recent disruptions in global supply chains have pushed fertiliser prices higher and added new financial pressures to farming operations.

Fuel prices represent another major cost driver. Diesel currently accounts for between 12 percent and 18 percent of production costs for many grain farmers. Forecasts indicate that diesel prices could increase by more than four rand per litre, which will directly affect both planting and harvesting operations. Such increases can significantly reduce already narrow profit margins. For farmers preparing winter crops or harvesting summer grains, these changes create additional uncertainty in financial planning.

Infrastructure challenges also contribute to rising production costs across the grain sector. Steenhuisen pointed out that freight rail once carried around 20 percent of South Africa’s grains and oilseeds in 2011. By 2025 that figure had fallen to just 3 percent, forcing much of the transportation burden onto roads. Poor road conditions increase transport times, fuel consumption and maintenance costs for trucks moving grain from farms to silos and processing facilities. These logistical inefficiencies ultimately reduce the income farmers receive for their produce.

The minister emphasized that government must focus on creating a stable policy environment rather than imposing unnecessary regulations. Farmers do not seek protection from competitive markets, he said, but they need clear and predictable policies that allow them to plan for the future. Agriculture depends on long planning cycles that extend over multiple seasons. Delays in administrative decisions or changes in policy can disrupt these cycles and introduce additional risk. Steenhuisen stressed that the role of government should focus on removing obstacles that prevent markets from functioning effectively.

A key issue discussed during the congress involved the wheat import tariff system. South Africa uses this mechanism to balance the need for affordable wheat imports with the importance of supporting domestic production. The minister acknowledged that delays in publishing tariff adjustments can create financial uncertainty for importers and millers. Such delays also affect local wheat producers who rely on predictable market conditions. Steenhuisen suggested that moving toward a more automated tariff adjustment system could improve stability within the market.

The speech also addressed the importance of innovation and scientific research in securing the future of grain farming. Advances in plant breeding and genetic research offer opportunities to improve crop resilience and yields. Institutions such as the Agricultural Research Council and the University of Stellenbosch continue to explore technologies that help crops perform better under climate stress. Research involving gene editing tools like CRISPR has already demonstrated improvements in drought tolerance and yield stability. These innovations could play a critical role in adapting agriculture to changing weather patterns.

Steenhuisen also discussed the potential for expanding domestic demand for grain products. One area receiving increasing attention involves the development of biofuels. Studies suggest that South Africa could produce more than three billion litres of sustainable aviation fuel each year if the appropriate policies and investment frameworks are implemented. Expanding industrial demand for crops such as maize could create new markets for farmers and reduce reliance on volatile export markets. However, the minister emphasized that any biofuel program must remain economically viable and avoid unintended impacts on food supply.

International trade opportunities also remain important for the sector. Steenhuisen noted growing interest from Japan in importing South African yellow maize because of its consistent quality. Delegations from Japan have already visited local farms and silos to examine production standards. These discussions highlight the ability of South African farmers to compete with major exporters such as the United States, Brazil and Argentina. Access to demanding international markets confirms the high standards maintained by local producers.

The Grain SA Congress ultimately served as a platform for honest discussion about the structural challenges facing the grain industry. Farmers, policymakers and agribusiness leaders examined the gaps that exist within value chains and considered practical solutions that could improve sustainability. Steenhuisen emphasized that food security depends directly on the profitability of farming operations. If farmers cannot run viable businesses, the stability of the entire food system becomes vulnerable.

The minister concluded his address by reaffirming the government’s commitment to supporting a stable and competitive agricultural sector. He emphasized that the state must focus on predictable policies, efficient administration and functional infrastructure. When these foundations are in place, farmers can apply their expertise and innovation to grow the sector. The discussions at the Grain SA Congress demonstrated the determination of South African producers to adapt and remain competitive despite global uncertainty. With collaboration between government and industry, the grain sector can continue to strengthen the country’s food security and economic growth.