SA Wheat Production Hits 8-Year Low Amid Rising Costs and Western Cape Drought

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Farmersweekly.co.za reports that South Africa’s wheat harvest is expected to fall to its lowest level in eight years in the 2026/27 season, as rising input costs and dry conditions in the Western Cape put pressure on farmers, despite an anticipated increase in overall winter crop production. Thabile Nkunjana, senior economist in the Trade Research Unit of the National Agricultural Marketing Council, said the season had presented significant challenges, particularly for wheat producers. Winter crop production is forecast to increase by 2% year-on-year to 2,67 million tons, but wheat output is expected to decline by 5% to 1,81 million tons. The contrasting outlook highlights the challenges facing wheat producers, while stronger production prospects for canola, barley and oats are expected to support the overall harvest.

Grain SA’s legal challenge against the Johannesburg Stock Exchange (JSE) over soya bean location differentials has been postponed, with its interdict application now set to be heard on 6 November 2026. Corné Louw, head of applied economics and member services at Agbiz, confirmed that the hearing, originally scheduled for 8 October, had been postponed because the judge assigned to the case was unavailable for health reasons. As previously reported, Grain SA is seeking an interdict to prevent the JSE from implementing its latest decision on soya bean location differentials pending the outcome of a separate review application challenging the lawfulness of the decision and the process followed.

And…South Africa’s dairy farmers have become so efficient that there is little room left to cut costs, yet most still struggle to earn worthwhile returns. Farmers are being forced to produce more milk to survive, but the market is not growing fast enough to absorb it. This was the stark picture painted during a panel discussion titled Dairy under pressure: balancing herd health, processing efficiency, and market volatility in the dairy industry, held at the Royal Show on 9 October. Speaking on the panel, dairy farmer Tom Turner said the number of dairy farmers in South Africa had declined from approximately 7 500 to just 830 during his farming career, largely because producers had been forced to expand and improve efficiency to remain viable.

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15 Oct English South Africa News

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