Grain SA and the South African Cereals and Oilseeds Trade Association (SACOTA) have formally issued a letter of demand to the International Trade Administration Commission of South Africa (ITAC), Minister of Trade, Industry and Competition Parks Tau, and Minister of Finance Enoch Godongwana, giving them until 4pm on 1 June 2026 to provide a final status report on the implementation of the revised wheat tariff.
The tariff application was submitted to ITAC in June 2024, but almost two years later, the industry is still awaiting clarity.
However, Heleen Viljoen, senior economist at Grain SA, stressed that legal proceedings have not yet been instituted.
“Grain SA and SACOTA have not yet instituted legal action. The correct position is that ITAC and the relevant ministries have been formally placed on terms through a letter of demand,” she told Farmer’s Weekly.
She added that should no response be received by the deadline, “further steps, including possible legal action, will be considered”.
Rising costs squeeze margins
According to Viljoen, prolonged delays in the tariff’s implementation are compounding already severe economic pressures on wheat farmers.
“Producers are facing significant pressure from rising input costs and relatively low commodity prices, which are squeezing margins and affecting profitability,” she said.
Viljoen noted that fertiliser prices had risen sharply since February 2026, driven by higher global energy prices and South Africa’s dependence on imported fertiliser priced in US dollars.
She added that supply chain risks in the Middle East, particularly around fertiliser inputs such as sulphur and urea, are adding further uncertainty and increasing freight costs.
“Freight alone can account for up to half of total fertiliser costs, amplifying the impact of any logistical disruptions.”
In addition, fuel costs are placing further pressure on producers.
“South Africa imports most of its refined fuel and almost all of its crude oil requirements. The country is therefore highly vulnerable to global oil price shocks,” Viljoen said.
She pointed out that higher diesel prices are increasing planting costs for winter grain farmers, particularly in the Western Cape and northern production regions.
Wheat hectares continue to decline
The pressure on wheat farmers extends beyond tariffs.
Speaking at Grain SA’s annual congress in March at Nampo Park in Bothaville, Free State, wheat farmer José de Kock, chairperson of Grain SA’s winter grain working group, warned that wheat production in South Africa is under significant economic pressure, with declining land and auction prices reflecting worsening profitability.
He noted that international wheat prices remain one of the biggest challenges facing local producers. Global oversupply has placed downward pressure on commodity prices at the same time that production costs continue to rise, often making wheat farming unprofitable.
De Kock has also cautioned that declining wheat hectares are becoming an entrenched trend, as many growers shift to alternative crops offering stronger returns, although viable alternatives remain limited in the Western Cape.
This trend is already evident in planting intentions. Viljoen said intended wheat plantings for the 2026/27 season have declined by nearly 6% year-on-year (y/y), continuing a longer-term decline in national wheat hectares.
“Yes, producers have already begun reducing wheat hectares, and there are signs of a shift towards alternative crops,” she added.
Canola, in particular, has become a more attractive option due to stronger profit margins, with intended plantings increasing by 8,4% y/y.
Structural problems beyond tariffs
De Kock has previously argued that delayed tariff announcements remain a critical frustration for producers, as they reduce certainty and make timely planning more difficult.
He explained that industry proposals for tariff adjustments to be announced automatically every month, similar to fuel price adjustments, have remained unresolved for more than 18 months.
He also pointed to broader structural problems beyond tariffs, particularly concerns around the Johannesburg Stock Exchange wheat location differential, which farmers argue distorts transport costs and undermines accurate price discovery.
“Many issues fall under different government departments. The core frustration for producers is the lack of timely feedback and decision-making.
“Wheat production must be economically viable,” De Kock said.
Food security concerns
In a statement made earlier this month, Richard Krige, chairperson of Grain SA, warned that prolonged delays carry wider consequences.
“Producers cannot absorb endless delays while competing against countries that actively protect their agriculture sectors.
“Policy delays in highly volatile markets have real economic consequences for food security and rural employment,” he said.
Farmer’s Weekly sent urgent enquiries about delays in implementing the revised wheat tariff to the Department of Trade, Industry and Competition and ITAC on 26 May, but at the time of publication, no responses had been received.
