Home Watch Strong grain harvest brings price pressure and feed relief

Strong grain harvest brings price pressure and feed relief

South Africa has a strong summer grain and oilseed harvest, with production estimated at about 19.8 million tonnes. Wandile Sihlobo explains how abundant local and global supplies could suppress grain prices, squeeze crop-farming margins and provide relief to livestock, poultry and consumers.

Strong grain harvest brings price pressure and feed relief

South Africa’s 2025/26 summer grain and oilseed season is shaping up to be another strong one. According to the latest estimates from the Crop Estimates Committee, total production could reach around 19.8 million tonnes, only slightly down from the record-breaking 2024/25 season. With favourable rainfall across key production regions, crops such as maize, soybeans, sunflower seed, sorghum and groundnuts are generally in good condition.

While floods in the north and dry spells in parts of the Eastern Cape created some concerns earlier in the season, these events have had limited impact on the core grain-producing areas. As a result, South Africa is still expected to produce a maize crop of about 16.1 million tonnes, comfortably above the long-term average. However, strong production locally and globally is creating a different challenge: oversupply.

ADVERTISEMENT

Large harvests in regions like the Black Sea, the EU, the US and China have kept global grain prices under pressure, slowing South Africa’s export pace. With lower exports and sizeable carry-over stocks, domestic grain prices are likely to remain subdued. While this may tighten margins for grain farmers, it brings relief to livestock, poultry and feed industries, where maize and soybean prices have fallen sharply from last year’s levels.

For consumers, this could also help keep food price inflation contained in the months ahead. In this episode of AgriView, we unpack what these crop estimates mean for farmers, agribusiness and the broader food economy.

Free newsletter

South Africa’s Weekly Farming News — Free Every Tuesdays

Join 17,188+ readers for the latest agriculture news, market updates, and farming insights.

No spam. Unsubscribe any time.

✓ You're subscribed! Check your inbox for a confirmation.

ADVERTISEMENT

More Videos

Wandile Sihlobo
WANDILE SIHLOBO is chief economist of the Agricultural Business Chamber of South Africa (Agbiz) and a member of President Cyril Ramaphosa’s Economic Advisory Council as well as the Advisory Panel on Land Reform and Agriculture
Send this to a friend