Agriculture, Economic Development and Tourism

. (1) (a)  Department is part of the Joint Operations Committee, coordinated by the Provincial Disaster Management Centre. It is also part of the committee that monitors potential risks/disasters coordinated by the Department of the Premier and chaired by the Premier.  Therefore, through these committees, feedback is provided on the energy situation nationally. Also, updates are given by various stakeholders on sector specific challenges to be addressed. Agri Western Cape is one of the stakeholders that attends the JOCs to give updates on the agricultural sector. The Department also has a close relationship with organised agriculture, and commodity organisations through a Stakeholder Engagement structures which was established a while ago as a platform to discuss any pertinent issues in the sector.

(b)   No formal complaints have been received on unethical rationing or hoarding of fuel and fertilisers by wholesalers.

(2) (a) The Department of Agriculture notes that enforcement measures relating to the withholding of essential agricultural inputs fall primarily within the mandate of the Competition Commission of South Africa, which is responsible for investigating anti-competitive conduct such as price fixing, market manipulation, and abuse of market dominance.

Any person, including producers, industry stakeholders and members of the public are encouraged to report any suspected unethical or anti-competitive practices to the Commission for further investigation. This position was also highlighted by Premier Alan Winde in a provincial briefing on 29 March 2026 that demanded decisive action over fuel supply situation.

From a departmental perspective, while there is no direct enforcement mandate over input suppliers, the Department plays an important role in monitoring market conditions, supporting transparency, and facilitating coordination across the agricultural value chain. In this regard, the Department:

• Maintains an input cost tracking system to monitor trends in key agricultural inputs, including fertiliser and fuel (diesel), allowing for early identification of price pressures and potential supply constraints.
• Engages continuously with industry stakeholders, including suppliers, producer organisations and relevant national departments, to assess risks and explore appropriate contingency measures.
• Supports diversification of input sourcing, including encouraging industry participants to explore alternative international markets where feasible, particularly in response to global supply disruptions linked to geopolitical developments in the Middle East.

Overall, the Department’s role is to provide market intelligence, support informed decision-making by producers, and escalate concerns to the appropriate regulatory authorities where necessary.

(b) The Department engages with a range of stakeholders to monitor fuel supply conditions and ensure that the agricultural sector remains adequately supported, particularly during periods of heightened risk. In this regard, the Provincial Disaster Management Centre (PDMC), in collaboration with the Fuel Industry Association of South Africa and other key stakeholders, continues to monitor fuel availability across the province. These engagements include coordination with industry role players to ensure that critical sectors, including agriculture, are prioritised in the event of supply constraints, with due consideration given to both (i) primary producers and (ii) small-scale farmers.

At a national level, government has introduced temporary fiscal relief measures to mitigate rising fuel costs. In this regard, the Minister of Finance has proposed a temporary reduction in the general fuel levy of R3 per litre for the period 1 April 2026 to 5 May 2026. This intervention is intended to improve affordability and access to fuel for all users, including agricultural producers, particularly given that fuel costs account for approximately 12% to 18% of total on-farm production costs.

In addition, the Department provides regular market intelligence, including monthly updates on food inflation and input cost trends, to support forward planning by farmers as the winter cropping season approaches. Producers are also encouraged to procure inputs responsibly and to avoid unnecessary stockpiling that may exacerbate supply pressures.

(3) (a) The Department utilises its market intelligence tools to monitor global fertiliser markets and support the identification of alternative international sourcing options for local farming associations.

In this regard, the Western Cape Department of Agriculture (WCDoA) engages on an ongoing basis with industry organisations to assess fertiliser supply conditions and track developments in global input markets. This is supported by the Department’s input cost and price monitoring tracker, which provides regular analysis of fertiliser price movements, trade flows, and supply risks.

Part of the intelligence focuses on briefing on the potential impact of geopolitical developments in the Middle East on logistics, and other products. Generally, the Consumer Price Index (CPI) and Producer Price Index are monitored on regular basis.

Through these tools, the Department monitors fertiliser trade patterns and identifies diversified sourcing opportunities. In 2025, South Africa’s fertiliser imports were sourced primarily from countries such as Russia (23%), China (11%), Germany (8%), Chile (8%), and Nigeria (1%). Maintaining access to these established markets remain important in ensuring supply continuity.

In addition, through the research conducted by the Department, sourcing options outside the Middle East are identified, particularly for nitrogen-based fertilisers. These include countries such as China, Nigeria, the Netherlands, and Finland.

Overall, the Department’s market intelligence function enables the timely dissemination of information to producers and industry bodies, supporting informed procurement decisions and enhancing resilience in fertiliser supply chains.

(b)   The Department notes that current projections for the input-cost-to-yield ratio for the 2026 winter grain crop indicate upward pressure, primarily driven by increases in fertiliser and fuel costs.

Fertiliser remains a significant cost component in grain production, accounting for approximately 35% to 50% of total input costs at farm level. Recent increases in global oil prices, linked to geopolitical developments in the Middle East and disruptions to key trade routes such as the Strait of Hormuz, have contributed to rising fertiliser and fuel prices both internationally and domestically.

In the absence of a commensurate increase in yields or output prices, these cost increases are expected to result in a higher cost per unit of production, thereby increasing the input-cost-to-yield ratio. This implies a compression of profit margins for producers during the 2026 winter cropping season.

The extent of this impact will, however, depend on several factors, including climatic conditions, yield performance, exchange rate movements, and the trajectory of international fertiliser and energy prices. The Department continues to monitor these developments through its input cost tracking and market intelligence systems to provide updated guidance to the sector.

4. a)    Through the Joint Operations Committee led by the Disaster Management and others, updates with implications for the agricultural sector are shared for the Department and organised agriculture to disseminate in the entire agricultural sector.

(b)   The type of support provided include the use of farm financial planning tools (Budgeting, Financial and Production Record Keeping) and guidance on best practices to optimise production. Financial support through the CASP grant is also provided. Given the current disruptions, including drought that has been in existence before the war, the Western Cape Government had implemented targeted support measures, including the allocation of R22 million in fodder relief funding. The aim is to assist livestock farmers affected by adverse climatic conditions, thereby alleviating broader production pressures. Other efforts include investigation on the current situation in search of other possible targeted interventions.