More than two months after airstrikes involving the United States and Israel on Iran, South Africa's agricultural sector is adjusting to changes in input costs and trade conditions.
Farmers report rising fertiliser and fuel costs, along with increased uncertainty in planning and margins. Wandile Sihlobo said the Middle East remains important for South African agriculture due to its role in export markets and its influence on oil, fertiliser, and gas prices.
"The conflict may also disrupt exports of various products to the region. For South Africa's agriculture, the region is a key export market, accounting for an average of 8% of agricultural exports by value over the past 5 years. SA's agricultural exports to the world market were at a record US$15.1 billion in 2025, up 10%y/y."
He noted that citrus, apples and pears, beef, strawberries, grapes, apricots, cherries, peaches, and nuts are among the products exported to the region.
Sihlobo added that trade conditions remain a focus, with attention on economic diplomacy and export market access. "The rising concerns about the impact of the Middle East conflict on energy and fertiliser prices also added to the downbeat mood in the sector. The current ACI level of 49 is just under the 50-neutral mark, suggesting that South African agribusinesses are becoming somewhat pessimistic about business conditions in the country."
He said maintaining plant and animal health standards remains necessary for accessing new markets.
"SA agriculture had an uneven recovery in 2025, with most subsectors showing improvements, while the livestock industry remained under pressure. Agriculture could play an important role in sustaining our rural communities. But we must address some challenges that agriculture faces, starting with biosecurity, municipalities, and trade. Collaboration should be at the heart of the interventions to resolve this challenge with academia, industry, and government."
Parks Tau said global economic conditions are shifting, requiring adjustments in supply chains and sector investment. "Countries are moving to secure supply chains and are investing in strategic sectors, building technological capability to advance and defend industrial competitiveness. South Africa cannot stand still in this environment."
Source: FoodForMzansi
