14 REPORT OF THE CEO Rising fuel prices and high input costs for fertiliser, chemicals and seed further increase production costs and strain profit margins.Investment in alternative energy, such as solar and diesel, introduces additional cost pressures and security risks. Water infrastructure remains under severe strain and a shortage of skilled labour is emerging due to the adop- -tion of advanced technologies including artificial intelligence (AI), drones and sensors. The entire Grain SA team – especially the research team – is continuously scanning all potential sources of new technology and finding ways to ensure that South African farmers can access innovations from around the world. Leverage improved research, technology and data As sustainability is a priority for both the environment and farm profitability, grain producers strive to produce more with fewer inputs, reduce chemical use and minimise environmental impact while maintaining commercial viability. However, sustainability must be approached pragmatically. Interventions that are not aligned with the realities of farm operations can disrupt progress. Our focus is on achieving measurable outcomes by leveraging improved research, technology and data to optimise farming practices without compromising productivity. It drives economic growth, job creation, foreign exchange earnings and environmental stewardship while protecting our natural resources. Central to this approach is the promotion of sustainability through climate management, sustainable production systems and agronomic research, ensuring the long-term resilience and competitiveness of the grain industry. Managing this environment requires resilience, forward planning, financial acumen and technological understanding. Research and technological development must be region-specific and demand coordination among multiple stakeholders. Its implementation requires infrastructure, training and digital readiness. Agriculture is undergoing a transformation through biotechnology, automation and advanced breeding methods while AI accelerates the development of new agricultural practices and enhances regulatory review. Modern breeding techniques promote drought and pest-resistant crops, contributing to climate adaptability and precision agriculture improves resource efficiency, sustainability and profitability. We are in close partnership with the South African Cultivar and Technology Agency (SACTA), the Maize Trust, the SA Winter Cereal Industry Agency (SAWCIA) and other industry and funding partners to ensure the sustainability of not only grain producers but the whole value chain. However, it sometimes feels as if the technological ‘low-hanging fruit’ has been picked and we will have to implement a whole range of technology to ensure the scale of impact that future technologies can add to grain producers’ sustainability. What remains essential is a commitment to testing and implementing solutions that work in practice - even when the gains appear incremental. Small improvements, when combined, often translate into substantial benefits over time. As farmers become increasingly reliant on research, technology and collaboration, Grain SA’s mandate to foster a community of shared learning is becoming more critical and we will have to be creative to fund solutions to the gaps left by public research institutions. The study group method that South African farmers pioneered enables producers to exchange information, evaluate innovations and make sound cost-benefit decisions and our organisation helps ensure that practical, effective technologies are implemented on farms nationwide. We will have to build and expand on our experience and existing structures to face the new challenges. Despite the effectiveness of these innovations, the approval processes for new agricultural technologies remain slow, hindering innovation and competitiveness. Regulations must be efficient and scientifically grounded rather than driven by activism or political pressure. Grain SA is advocating for excessive regulations to be removed and processes automated wherever possible. International harmonisation and approval process synchronisation can reduce duplication and accelerate trade while self-regulation and transparency can ease pressure on farmers. A more effective regulatory environment creates opportunities for new agribusiness ventures and strengthens the long-term competitiveness of South African farmers. While strategic frameworks and technological advancements guide the growth and sustainability of farmers, ensuring that the quality and safety of agricultural products meet consumer expectations remains a key priority for Grain SA. Product quality and food safety are fundamental to maintaining confidence in the food system, making proactive engagement with consumers and policymakers essential. We will have to build and expand on our experience and existing structures to face the new challenges.
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