Minister of Agriculture John Steenhuisen has hailed South Africa’s grain producers for delivering a record-breaking harvest this season, despite the economic pressures facing farmers due to rising input costs and falling commodity prices.
Speaking at the Grain SA Grain Producer of the Year Awards held at the Birchwood Hotel in Gauteng on Friday night, Steenhuisen described the 2025 season as “an incredible achievement,” with the country’s total grain and oilseed harvest exceeding 23 million tonnes, a 30% increase compared to last year.
“With our maize harvest alone, at a staggering 16,33 million tons, we are well over our national need of 12 million tons. This success secures our food supply and positions us strongly as a key regional supplier. Well done! You are truly an asset to our nation,” the Minister said.
He commended the resilience and contribution of grain producers, noting that they not only feed the nation, but also bring in crucial foreign currency, stabilise our trade balance, and create tens of thousands of jobs.
“You are the vanguard of South African agriculture, and your resilience in the face of immense challenges is deeply appreciated.”
While celebrating the bumper crop, Steenhuisen cautioned that the current abundance has also brought serious financial strain to producers.
He said farmers are facing immense “financial squeeze” that is hitting their bottom line from two opposing directions, including lower output prices caused by the oversupply of grain, and rising operational costs driven by higher prices for fertiliser, fuel, equipment, and labour.
“When the money you get from selling your crop is low, but the cost of growing it is high, the financial consequence is immediate: your profit margins are severely squeezed or worse, wiped out,” Steenhuisen said.
He highlighted that producers, especially wheat producers are being under pressure, citing ridged policy environment that is not focused on long term sustainability.
According to the Minister, losing domestic wheat producers due to current circumstances, could cost South African consumers an additional R643 million just to maintain the current quality bread on the table.
Drawing parallels with the situation in the United States, he said the plight of South African farmers reflects a global challenge of rising production costs and falling grain prices.
“The example from Minnesota shows clearly that high production volume is worthless if prices are too low to cover the cost of production. We feel your pain because it’s a global problem,” Steenhuisen said.
Measures to boost competitiveness
Steenhuisen outlined government priorities aimed at supporting farmers and protecting the sector’s competitiveness.
Among the key interventions include access to the best and safest new breeding technologies and creating an environment that encourages investment in innovation, both from local and international partners, such as the Agricultural Research Council (ARC) and Syngenta.
“It also means improving logistics at every level: local, provincial and national, and continuing to open up new international markets. Over the past year, the Department of Agriculture has been engaging with many countries to prioritise our exporting farmers.
“Above all, we must focus on regulatory efficiency, so that progress in agriculture is not held back by unnecessary red tape. These priorities align strongly with the goals of the Agriculture and Agro–Processing Master Plan, which remains our shared roadmap for growth and competitiveness in the sector,” the Minister said.
Protecting a strategic national asset
Steenhuisen described agriculture as one of South Africa’s most strategic national assets, reaffirming government’s commitment to stand with producers in addressing rising costs, collapsing margins, and unnecessary red tape.
“We will work with you, not above you, to ensure that South African grain remains among the most respected in the world. Let us keep the spirit of partnership alive, because together we can weather any storm and secure a future that is both profitable and proudly South African,” the Minister said.