This follows the 17 June publication in the Government Gazette of the final outcome of the wheat tariff amendment investigation, which confirms that the dollar-based reference price (DBRP) for wheat will remain at US$279/t (around R4 590/t) and that no automatic tariff trigger mechanism will be introduced.
This follows the 17 June publication in the Government Gazette of the final outcome of the wheat tariff amendment investigation, which confirms that the dollar-based reference price (DBRP) for wheat will remain at US$279/t (around R4 590/t) and that no automatic tariff trigger mechanism will be introduced.
The application, submitted by Grain SA and the South African Cereals and Oilseeds Trade Association, sought an increase in the reference price to US$289/t (R4 760/t) and the implementation of a mechanism to reduce delays between tariff triggers and implementation. However, neither request was approved.
Grain SA slams tariff decision
Grain SA CEO Dr Tobias Doyer described the outcome as disconnected from the realities facing wheat farmers.
“We are not satisfied with this outcome, and we do not accept the reasoning on which it is based,” he said in a press release on 19 June.
“The decision fails to reflect the reality on wheat farms across South Africa. Producers are under pressure from rising input costs, volatile markets, high financing costs, logistics challenges, and unfair international competition. To suggest that the current framework provides adequate protection is simply not aligned with what producers are experiencing.”
South African wheat producers compete against imports originating from countries where farmers often benefit from government support, subsidies, and more favourable policy environments. Meanwhile, local producers must absorb increasing production costs while competing in what Grain SA describes as a “distorted global market”.
“This decision effectively tells producers that they must continue producing under increasingly difficult conditions while receiving insufficient policy support.
“That is not sustainable. If South Africa wants local wheat production, then policy must recognise the realities of producing wheat in this country,” Doyer said.
Farm-level realities overlooked
Grain SA also expressed concern that the current tariff framework could undermine efforts to maintain South Africa’s wheat quality standards.
It argued that while local wheat is highly valued by millers and processors, producers are not adequately rewarded for the additional costs and risks associated with producing premium-quality grain.
Grain SA Chairperson Richard Krige said the organisation was particularly frustrated that the National Chamber of Milling had opposed the application.
“It is deeply disappointing that the very value chain that benefits from local wheat quality would oppose a measure aimed at keeping that production viable,” he said.
Krige warned that farmers could increasingly shift their focus from quality to yield.
“If quality is not valued and paid for, producers will be forced to reconsider their production strategies,” he said.
The gazette states that the existing DBRP continues to provide effective support to the domestic wheat industry and that wheat production remains profitable.
However, Grain SA disputes this assessment, arguing that rising input costs have significantly increased pressure on farming businesses.
The organisation pointed to increases in fertiliser, fuel, chemicals, labour, financing, mechanisation, and logistics costs, as well as a decline in area planted to wheat, as evidence that producers are struggling under current conditions.
“The real test of policy is not what it looks like on paper. The real test is whether producers are confident enough to keep planting. At the moment, that confidence is being eroded,” Krige said.
Government acknowledges delays but offers no solution
Another major concern raised by Grain SA is government’s failure to implement a practical solution to delays between tariff triggers and implementation. While the gazette acknowledges that such delays can undermine the effectiveness of tariff protection, the issue has been referred for further engagement between government departments rather than being addressed immediately.
“This is one of the most frustrating aspects of the decision,” Doyer noted.
“Government acknowledges that the system is inefficient, but producers are once again left without certainty, without timelines, and without a working solution. Wheat producers cannot make planting and investment decisions based on endless future consultations.”
Grain SA warned that a weakening domestic wheat industry would have broader consequences throughout the agricultural value chain, affecting suppliers, transporters, storage operators, millers, rural communities, and consumers.
Reduced local production could also increase South Africa’s exposure to international price volatility, exchange-rate fluctuations, and global supply disruptions.
“The question is not whether South Africa can afford to support its wheat producers. The question is whether South Africa can afford to lose them,” Krige added.
The organisation said it will continue to engage with government and industry stakeholders and is considering options to appeal or challenge the decision.
“Wheat producers are not asking for special treatment. They are asking for a fair chance to survive, compete, and continue producing food for South Africa. Wheat farmers collectively, as Grain SA, will continue this fight for survival,” Doyer concluded.
