Agriculture, Economic Development and Tourism

Question by: 
Hon Noko Masipa
Answered by: 
Hon Ivan Meyer
Question Number: 
1
Question Body: 

(a)  (i) What are the projected production volumes for major grain crops in the province for the 2025 harvest season and (ii) how do these projections compare with the previous year’s harvest results, (b)(i) what estimated economic contribution does the grain harvest make to the provincial economy and (ii) how does this compare to national contributions, (c)(i) what factors are expected to influence this year’s grain yields and (ii) what miti-gation measures have been implemented to address these risks, (d) how did his Depart-ment support producers and agri-processors during the (i) planting and (ii) current harvest season with input costs, particularly in relation to (aa) logistics, (bb) infrastructure and (cc) agriculture extension services, and (e) what partnerships or programmes are being leveraged to strengthen the sector’s resilience?

Answer Body: 
  1. (i) South Africa's grain production forecast for 2025, shows growth in volumes. This can be explained by the increase in areas under production. Expected volumes are as indicated below:

Table 1: National grain production forecast 2025

Grain

Tons

Wheat

                  2,034,380

Barley

                     346,430

Canola

                     311,890

Oats

                       57,213

Sweet lupines  

                       21,000

Total Winter

                2,770,913

 

Western Cape will account for 52% of total projected wheat volumes, whilst the forecast for the province is expected to increase by 5% (104 380 tonnes). The positive growth is also expected for Canola, Oats but not Barley. In the 2024/25 marketing season, the province's share in national volumes for Canola, Oats and Barley were 97%; 84% and 77% respectively.

(ii) Compared to the previous year, the area under production increased by 3% (26 000 ha) for major winter grains at national level. Volumes increased as per Table 1, which is positive for the majority of crops listed except barley.    

  1. (i & ii) The agricultural survey data by Statistics South Africa showed that field crops account for 15.2% of total gross farm income in the province. However, based on the national agricultural gross production income of 2023/24, the estimated economic value of the selected grains (wheat, barley, canola and oats) was at R14.7 billion, and since the Western Cape accounts for more than half of the winter grains, the estimated value is at least R8 billion.

 

(c)(i)

  • Grain production in the Western Cape is mostly dryland, meaning yields depend heavily on seasonal rainfall.
  • The eastern Southern Cape has experienced very low rainfall in 2025 — in some places below 100 mm from April to October, significantly limiting yield potential.
  • In the Swartland, rainfall was slightly below the long-term average, but yields should be close to average thanks to better-timed in-season rain.
  • Despite improved soil and water management, rising input costs and commodity prices not keeping pace remain significant economic pressure points for producers.
  • Weather extremes remain financially damaging — a recent Wheat Forum insight noted that a single drought or excessively wet season can take up to six years to repay due to debt accumulation.

 

(c) (ii)

  • Long-term Conservation Agriculture (CA) research and adoption — a 28-year programme has enabled:
    • Better soil water retention of summer and autumn rains prior to planting (especially useful in the Southern Cape).
    • Improved soil structure, soil cover, and residue retention to optimise the retention and use of in-season rainfall (particularly in the Swartland).
  • CA has helped buffer the sector against low-rainfall years by reducing the negative impact of weather variability on yields.
  • Producers are reducing input levels where possible due to improved soil health and CA efficiencies, although costs are still increasing.  (Departmental research is also strongly focussed on minimising input cost and leveraging the benefits of CA practises to maintain yields, as part of refining the CA practices towards a more sustainable grain production system for the sector.)

 

(d) (i)   Production inputs were approved through successful CASP applications.

  1. Successful CASP applications were implemented in the 2025/26 financial year and production inputs ranged from agro chemical, fertilizer, seed, and diesel.

 

  1. Logistical support to CASP beneficiaries is provided in the form of diesel and purchasing of work vehicles to reliable businesses. At a strategic level, it is a known fact that the South African transport and logistics industry is currently under extreme pressure and faces many challenges due to the inefficiencies within Transnet and the railways’ inability to service the industries. It is observed that private sector is starting to lose confidence in the Government’s ability to intervene and is starting to position themselves to take over certain areas of rail operations in South Africa. The pressure is on National and Provincial government to ensure collaboration with industry to address the challenges of the transport and logistics industry in South Africa. The Western Cape Government (WCG) has been at the forefront in understanding that a data driven approach to take on these challenges is critical and has developed the Provincial Freight Strategy to initiate sustainable freight transport delivery in the province. As one of the affected stakeholders, the Department is involved in various fora attempting to address the challenges also through provision of sector intelligence.  
  2. During the current year, no specific infrastructure was approved for grains.
  3. Ongoing extension and advisory services are provided to the producers and to that effect, the Department also collaborate with industry partners. These partnerships contribute to the efficiency of the systems.

(e) The Western Cape Department of Agriculture’s Plant Sciences Directorate is continuously conducting research to refine local CA practices, aiming to produce more crop with fewer inputs.

  • Strong collaborative partnerships are in place, notably with:
    • Stellenbosch University, through joint research projects that advance innovation and provide scientific support to producers.
    • South African Winter Cereal Industry Agency, Grain SA, Protein Research Foundation.
    • Technical advisors and researchers from seed, fertiliser and agro chemical companies and Overberg Agri, Sentraal Suid Cooperative and KAL Group, and farmers who are part of technical committees.
    • Specialists in Western Australia and other countries (i.e. MoU with Murdoch University and part of the Global Long Term Experiment Network at Rothamsted in the UK, amongst others) ensure that the latest information to date is shared to strengthen our knowledge.
    • These partnerships ensure that evidence-based strategies are available to farmers to strengthen long-term sustainability and resilience.
Date: 
Friday, October 31, 2025
© 2025 WCPP All Rights Reserved
Top