33 [1] Average producer price = SAFEX, July 2024 price, less (average differential cost + handling costs) Dispute resolution As a member benefit, Grain SA assisted various members during the reporting period – particularly with respect to dispute resolution. Disputes on seed quality, agrochemical damage, VAT, the diesel rebate and fertiliser quality were dealt with in collaboration with Grain SA members. THE SEED INDUSTRY Seed remains a crucial production input for crop production, accounting for between 10% and 17% of a producer’s variable production costs, depending on planting density. With ongoing advances in genetics and technology, seed continues to be one of the most significant factors in driving increased yields and overall productivity in the grain industry. Grain SA continues to monitor seed prices closely, striving to maintain transparency and competitiveness in the market. Key concerns, such as the consistent increase in seed prices, remain a major issue for grain producers. In addition, the ongoing legal challenges and regulatory discussions surrounding genetically modified (GM) crops, including the recent SCA ruling on drought-tolerant GM maize, are likely to impact seed availability and pricing dynamics. Grain SA’s ongoing dialogue with seed companies and the Southern African National Seed Organisation (SANSOR) ensures that the concerns of producers are heard and addressed. With resistance to high seed prices building, these discussions will be critical in shaping pricing decisions for seasons to come. Seed prices The percentage change in 2025 seed prices showed that maize seed prices increased with 2,3%. Sorghum seed prices increased with 6,2%, while soybean seed prices increased the most by 6,9%. Sunflower seed prices increased by an average of 4,3%. A good barometer for assessing price increases is the producer price index (PPI). Up until July 2025, when seed prices were published, the PPI was 1,5%. On an average basis seed prices thus increased below the PPI rate. Maize seed prices can be analysed further by comparing them with maize prices. Since the 2001/2002 production season the maize price index (Graph 2) weakened significantly compared to the maize seed price index. With an estimated average producer price[1] of R4 463 per ton for the coming season (2025/2026), in general divergence remains between the maize price index and maize seed prices, with a widening gap between the two. 3 500 3 000 2 500 2 000 1 500 1 000 500 0 1985/1986 1986/1987 1987/1988 1988/1989 1989/1990 1990/1991 1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026* Graph 2: Indices of the price of maize seed and the producer price of maize. Index * Preliminary Source: Grain SA Maize seed index Maize price index INPUT OVERVIEW
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