Ahead of the amended wage determination, TLU SA warned in an article on its website that further mandatory wage increases in the current economic climate increase job losses, drive mechanisation, and worsen poverty, particularly in agriculture and among small businesses.
The warning comes as the National Minimum Wage Commission proposes an increase this year, while South Africa’s GDP growth remains subdued at an estimated 1,9%, well below the level needed for meaningful job creation. Growth continues to be held back by the energy crisis, rising input costs, policy uncertainty, and a deteriorating business environment.
“Government’s primary task is to create an environment in which businesses can operate profitably. Without profit, there is no investment, no expansion, and no new job opportunities,” Bennie van Zyl, general manager of TLU SA, told Farmer’s Weekly.
“When the state increasingly interferes in factors of production, especially through wage determination, it undermines the very growth needed to address poverty and unemployment.”
According to TLU SA, producers have faced extraordinary cost pressure over the past year. Diesel, electricity, seed, fertiliser, financing, and wages have all risen sharply, while market conditions weakened and key export markets were lost. In agriculture, virtually every component of production has become more expensive, with little scope to pass these costs on to consumers.
With unemployment at 33,9%, TLU SA warned that wage decisions carry far-reaching consequences. When labour costs rise above productivity and economic realities, businesses are forced to reduce employment through mechanisation, restructuring, or retrenchments.
Following the publication of the amended wage determination in a Government Gazette dated 3 February 2026, AgriSA confirmed that the national minimum wage will increase to R30,23 per hour from 1 March 2026.
In a media release dated 3 February 2026, the organisation reiterated its support for fair and decent wages but warned that the timing of the increase will place additional strain on a sector already under pressure.
AgriSA pointed to the ongoing foot-and-mouth disease (FMD) outbreak and broader biosecurity challenges, noting that the livestock industry contributes between 40% and 45% of the agriculture sector’s GDP.
While some recovery was evident in parts of the sector in 2025, it remains fragile and uneven, particularly for labour-intensive subsectors, emerging farmers, and export-oriented value chains.
These concerns were echoed by the National Livestock Farmers Association of South Africa (NaLFA SA), which said the combined impact of FMD and rising costs is devastating livestock farmers’ ability to remain economically active.
Speaking to Farmer’s Weekly, Nakana Masoka, general secretary of NaLFA SA, said: “Livestock farmers are experiencing massive challenges as a result of the scourge of FMD. This crisis is destroying their ability to participate meaningfully in the agricultural economy.”
Masoka added that the lack of vaccine availability meant farmers could only watch as animals suffered and died, while businesses providing jobs and livelihoods were being destroyed at an alarming rate.
“Some farmers are already working on reduced hours and reduced salaries. We are already receiving enquiries on retrenchment processes that must be followed,” he said.
The association called on government to urgently consider a wage relief fund to subsidise farmers affected by FMD and prevent large-scale job losses.
“The government needs to act urgently to avoid a jobs bloodbath,” Masoka said.
Producer sentiment reflects the growing pressure. A mixed farmer in the Free State, who asked to remain anonymous, told Farmer’s Weekly that labour costs have become increasingly difficult to absorb amid escalating input prices and disease-related losses.
Both organised agriculture and farmer representatives stressed that wage policy needs to be aligned with economic realities on the ground to safeguard jobs, food security, and rural livelihoods.
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