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SA agriculture must embrace trade knowledge to stay competitive, experts warn

South African farmers remain among the most resourceful and resilient globally, consistently delivering affordable, high-quality food despite an environment marked by uncertainty, ranging from shifting politics to global trade tensions.
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This was the central theme at a thought-leadership 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, brought together experts to discuss the long-term outlook for the sector.

Politics and perspective

Political analyst JP Landman said the Government of National Unity (GNU) remains a positive development for agriculture, despite the challenges of coalition politics.

“The headlines look messy, but no one has walked away from the GNU. South Africa is not under one-party dominance, and this creates space for pragmatism, which is crucial for business confidence,” he said.

Economist Johan Fourie of Stellenbosch University urged the sector to avoid negativity bias, pointing out that South Africans live in far more prosperous times than a century ago.

Panel host Theo Vorster, CEO of Galileo Capital, added that farmers and agribusinesses should resist short-term thinking by focusing on facts and longer-term trends.

Trade and tariffs

Dr Tobias Doyer, CEO of Grain SA, said agriculture continues to perform strongly but warned that tariff barriers, fluctuating global prices and access to new technologies remain risks.

“If we didn’t have a local wheat sector and had to rely entirely on imports, consumers would pay R700m more for wheat. That’s money households would otherwise spend on essentials like school fees or medical expenses,” he said.

Landman highlighted growing trade tensions, particularly between China and the USA, stressing the need for innovation and manufacturing to maintain competitiveness.

Fourie added that South Africa is underutilising its trade agreements. “We are losing billions of rands because we don’t know the rules. For example, our free trade agreement with Europe is underused, leaving exporters to pay tariffs that could be avoided,” he said.

Technology as a growth driver

The panellists agreed that technology and innovation are critical to the sector’s long-term competitiveness. Grain SA is working with research institutions to improve the cost-effectiveness of wheat production, while Kal Group CEO Sean Walsh said the company is investing in digital platforms and exploring artificial intelligence to create efficiencies and more value for farmers.

“South Africa boasts some of the world’s best agricultural producers. A supportive environment remains crucial to ensure food continues to reach local and international tables,” concluded Vorster.

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