SA’s agricultural sector is heading into the latter half of 2025 on a broadly positive footing though fortunes remain uneven across subsectors, according to the Agricultural Conditions Assessment Committee (ACAC).
The committee, under the department of agriculture, met for its second quarterly review of the year to assess agricultural conditions, among other things.
“Overall, the ACAC views SA’s agricultural operating conditions as uneven, but leaning more to the positive,” the committee said .
“The concern is mainly on the livestock industry, while the other subsectors see a promising operating environment with higher volumes compared to the past season.”
The ACAC comprises various industry and commodity associations (Agbiz, Agri SA, Grain SA, among others) and research organisations such as the Bureau for Food and Agricultural Policy, and other statistics users such as the SA Reserve Bank and Stats SA.
The committee found favourable rainfall had lifted field crop output sharply, with 2024-25 summer grains and oilseeds estimated at 18.74-million tonnes — up 21% year on year. However, excessive late-summer rains have hurt the quality of some white maize forcing parts of the crop to trade at a discount. While volumes are up, profitability for affected farmers may be squeezed.
Sunflower seed production has been curbed by sclerotia (fungal) disease, though volumes remain sufficient to meet domestic demand. Prices are about 5% higher than a year ago.
The ACAC found winter crops for the 2025-26 season had also started well, supported by increased plantings and good rainfall. Sugar cane production was similarly benefiting from last season’s better weather.
Beef and dairy farmers remain under pressure from ongoing outbreaks of foot-and-mouth disease and slow vaccination progress. According to the ACAC, the disease and the slow process of vaccination will weigh on the profitability of farming businesses.
According to the committee, “the one positive aspect is the better feed prices the ACAC is starting to observe, following the large soybean and maize harvest”.
Challenges are partially offset by easing feed costs, thanks to a record soybean crop of more than 2.7-million tonnes and ample maize supplies.
SA is now "self-sufficient" in soybean meal, with prices well below import parity, the committee said. Lower feed costs and recovering production volumes are expected to benefit poultry and pork producers, who face fewer headwinds than their cattle and dairy counterparts.
The 2024-25 fruit season marks a recovery across citrus, deciduous fruit, table grapes and wine grapes, with both quality and volumes improving.
The ACAC saw better volumes and quality in wine production, though the sector remains wary of trade friction particularly in the US market.
Vegetable production is also performing well, aided by rainfall, though excessive downpours have delayed harvests in some areas.
Looking ahead to the 2025-26 summer crop season, the ACAC flagged a slight rise in some input costs, including fertiliser. Diesel prices are 5% lower than in 2024, driven by softer Brent crude but sustained increases in other inputs could add pressure in the coming months.
July tractor sales surge, combine harvesters ease
SA’s agricultural machinery market posted mixed results in July, reflecting both ongoing optimism in crop prospects and normal seasonal variation.
“The increase in agricultural machinery sales primarily reflects the positive sentiment in the sector regarding the 2024-25 field crop, horticulture and wine grape harvest, supported by the favourable weather conditions,” Agbiz chief economist Wandile Sihlobo said, adding that the robust sales were likely to continue.
Tractor sales rose sharply, with 753 units sold — a 34% increase compared to July 2024. This marks the seventh consecutive month of year-on-year growth in tractor sales underscoring strong replacement demand and confidence in the sector.
By contrast, combine harvester sales softened after a strong start to the year. Only six units were sold in July, down 25% from the same month last year. However, Sihlobo noted that this decline is not cause for concern given the higher-than-usual sales volumes recorded earlier in 2025.
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