16 REPORT OF THE CEO On an international level, the ongoing tensions between major economies such as the United States, Russia and China continue to impact global trade and influence South African agriculture. The war in Ukraine has increased international grain and oilseed prices but this windfall has passed and disrupted supply chains while China’s tariff policies affect access for South African grain and oilseeds. Agricultural and environmental requirements set by the European Union determine export market access while international events contribute to fluctuations in grain prices and profit margins. South African farmers must adjust export strategies and logistics to remain competitive globally. Within this challenging domestic and global context, access to both regional and international markets is critical for the profitability and sustainability of South African grain producers. Africa, particularly the Southern African Customs Union (SACU) and the Southern African Development Community (SADC) regions, receives about half of South Africa’s agricultural exports. Grain and oilseeds are core products within these export baskets. Market expansion in East and West Africa faces limitations due to infrastructure constraints, corruption and trade barriers while Asia and the Middle East show growing demand driven by population growth and rising incomes. Access to these markets requires technical negotiation, tariff management and reliable logistics which remain a challenge in South Africa. A positive development is that Grain SA has achieved successes in securing market access, including recent breakthroughs in trade with China and Egypt. Pragmatic about developing farmers One of our greatest challenges in South Africa to ensure sustainable food production is the development of emerging farmers. This forms an integral part of the Grain SA mandate. Modern farming requires not only skill and access to resources but also a mindset that is business-oriented, disciplined and pragmatic. Historically, South Africa supported over 100 000 farmers; today fewer than 30 000 remain, highlighting the significant demands and barriers in modern agriculture. Many aspiring farmers have the desire to succeed but without proper training, resources and guidance they will not make the transition to commercial production. Grain SA’s development programme, Pahama Grain Phakama, is deliberately pragmatic. It focuses on building competent farmers rather than chasing unrealistic targets. Initiatives address financing, access to technology, motivation and skills development, ensuring that new and emerging farmers receive structured support. New commercial farmers often face challenges such as limited access to financing, insufficient infrastructure, limited irrigation water, restricted access to suitable agricultural land, regulatory delays and difficulties in securing market contracts. Collaboration with established producers and cooperatives, combined with targeted training and technology transfer, helps these new entrants develop capacity, manage risks and achieve sustainability. By combining experience with the energy and enthusiasm of our dynamic Grain SA team, we aim to nurture a new generation of farmers capable of competing both locally and internationally. To ensure that both emerging and established farmers can thrive sustainably, these development efforts are reinforced by strategic frameworks such as the Agriculture and Agro-processing Master Plan (AAMP), which aims to guide growth, financial viability and sector alignment. The AAMP provides a framework for supporting sustainable growth and financial viability for both commercial and entrant grain farmers. While the debate continues regarding its commercial practicality, Grain SA remains committed to effective implementation. We actively participate in Working groups, collaborate with government entities and ensure initiatives align with the needs of grain farmers. Over recent decades, collaboration and communication have improved, with government officials engaging more effectively and less constrained by ideological rigidity. Performance, effectiveness and practical governance are becoming key measures, creating opportunities for genuine progress in the sector. By leveraging our shared expertise and insights, we can build a grain industry that is adaptive, forwardlooking and well-positioned to thrive in the coming financial year and beyond.
RkJQdWJsaXNoZXIy NTI0MzQ=