CEO, Grain SA
ONE OF MY STRONGEST REFLECTIONS FROM THE RECENT AFMA FORUM WAS THAT WE NEED TO RETHINK AGRICULTURAL COMPETITIVENESS. WE TOO OFTEN VIEW GRAIN, MEAT, DAIRY, AND PROCESSING AS SEPARATE INDUSTRIES, YET CONSUMERS BUY FOOD, NOT COMMODITIES IN ISOLATION.
International markets likewise compete on the efficiency and competitiveness of entire value chains, not individual links.
This matters for South Africa. With a population of approximately 63,5 million increasing by about 1,2% a year – while economic growth remains below population growth – we cannot rely on domestic market expansion to drive economic growth. We must improve competitiveness and increase exports to regional and international markets, where agriculture can make a significant contribution to economic growth.
For grain producers, this raises a strategic question. Grain is a globally traded commodity where scale, productivity, cost, logistics, and market access are fundamental to competitiveness. South African producers have demonstrated their ability to compete internationally, but face structural disadvantages in bulk commodity markets, particularly against competitors with greater scale and lower logistics costs. We must therefore ask how to create more value from every tonne produced.
From grain to value
This is where the relationship between grain and animal production becomes important. Grain can be exported or used as animal feed to produce high-value animal protein products that appeal to international consumers. This is what we call ‘grain on legs’.
The feed industry is not simply another market for grain but a route into high-value markets. Based on annual averages over the past ten years, white maize producer deliveries averaged 7 156 759 tonnes per year, of which 4 763 949 tonnes (67%) went to human consumption and 1 138 808 tonnes (16%) to animal feed. Yellow maize deliveries averaged 6 427 817 tonnes per year over the same period, with 572 352 tonnes (9%) going to human consumption and 4 551 115 tonnes (71%) to animal feed. Soybean deliveries averaged 1 720 079 tonnes per year, of which 22 968 tonnes (1,3%) were for human consumption, 1 421 877 tonnes (83%) were pressed for oil and oilcake, and 155 539 tonnes (9%) went to animal feed. Animal feed is therefore a major destination for South African grain and oilseeds.
This highlights an important principle for agricultural policy. When each link prioritises its own interests at the expense of others, the entire value chain becomes less competitive. We need to shift from silo versus silo to value chain versus value chain, ensuring sustainable returns for producers, competitive raw materials for feed manufacturers, affordable feed for livestock producers, competitive production costs for processors and affordable food for consumers – all while supporting economic growth.
Competitiveness increasingly extends beyond the farm gate as infrastructure failures add costs and delays. Inefficiencies in storage, transport, processing and distribution undermine competitiveness, making logistics an agricultural policy priority. We need competitive roads and rail, functioning ports, reliable and affordable energy, and municipalities capable of delivering basic services to agricultural and rural economies.
Regulation must follow the same principle, as food safety and biosecurity are non-negotiable, but must also enable economic activity. Grain SA’s work towards a more risk-based and technology-enabled approach to industry assurance – including improved traceability and electronic auditing – illustrates how accountability and consumer confidence can be strengthened while unnecessary duplication is reduced. Science should help manage genuine risks, not deny producers access to safe technologies and innovation.
Competitiveness through cooperation
Perhaps the biggest lesson is that we need to change the organising principle of our agricultural debate. Often, we focus on dividing an existing economic pie – our challenge is to grow it. South Africa has remarkable assets, including sunlight, soils, agricultural expertise, entrepreneurs, financial capability, established value chains, and access to African and global markets. We need to convert these advantages into competitive products that create jobs, investment, exports, and prosperity.
No commodity organisation can solve logistics, energy, trade policy, infrastructure, or biosecurity in isolation. We need greater cooperation where we share a national interest while continuing to compete where appropriate. Grain producers, feed manufacturers, livestock producers, and processors are not separate economic systems but part of one food system, where decisions in one part of the chain affect all others. Recognising this reality allows us to move beyond defending individual links and build a value chain capable of competing globally.
For South Africa, that is the real opportunity. We should not only ask how much grain we can produce, but rather how much economic value, employment, and opportunity we can create from every tonne. That is how grain becomes more than a commodity – it becomes a foundation for growth.
