Agricultural organisations AgriSA and the Agricultural Business Chamber of South Africa (Agbiz) have welcomed the extension of the temporary fuel levy relief measures through May and June, saying it provides important short-term cost relief to farmers and consumers amid sustained global oil price volatility.

However, they warn that, while necessary, it does not fully offset the deeper structural pressures facing the agricultural sector, particularly fuel availability constraints, rising input costs and the renewed spike in global oil prices linked to the ongoing Middle East conflict.

The levy reduction provides temporary relief, but surveys of farmers and fuel distributors indicate that the sector’s primary concern remains price, reliability of fuel supply and the cumulative cost burden of inputs.

Reports from the supply chain indicate ongoing disruptions, including delayed deliveries, allocation limits and, in some cases, only a fraction of normal volumes being supplied. Farmers are receiving partial deliveries or facing delays during critical operational periods.

Higher fertiliser costs, weaker commodity prices and uncertain weather conditions are placing additional strain on farm-level profitability, the organisations say.

South Africa’s winter crop season is under way, with planting progressing across key production regions. Current data indicate a likely contraction in wheat plantings for the 2026/27 season, which is expected to decline by around 6% to the lowest level in 12 years.

This reflects the combined effect of lower global prices, rising input costs and increased production uncertainty. Delays in planting owing to fuel constraints or reduced input application could further weigh on yields and overall output, they point out.

Further, the organisations warn that continued fuel supply disruptions and cost volatility, amplified by higher global oil prices, pose a material risk to the 2026/27 summer crop season.

This warning is despite the strong current outlook, with South Africa expected to harvest a record 20.8-million tonnes of grains and oilseeds in the 2025/26 season. While the outlook provides short-term stability for food supply and prices, it should not obscure the growing risks to future production cycles, they note.

Diesel remains a non-discretionary input across all farming systems, powering planting, irrigation, harvesting, and logistics. Therefore, supply disruptions and renewed price increases have immediate and compounding effects on agricultural output.

Surveys show that farmers are already adjusting operations by scaling down production, cutting input use, drawing down financial reserves and exploring alternative energy solutions, clear indicators of a sector under increasing strain.

“Stabilising agriculture will require a coordinated response that addresses both fuel price and supply reliability. This includes ensuring consistent availability of fuel to agricultural regions, improving transparency on supply conditions and addressing logistical bottlenecks in the distribution system,” AgriSA and Agbiz say.

They also welcome the ongoing review of the fuel price formula and emphasise the importance of incorporating agricultural production realities into future regulatory frameworks.

AgriSA and Agbiz also remain committed to working with government and industry stakeholders to ensure that South Africa’s agricultural sector remains resilient, productive and capable of supporting both food security and economic growth, they say.