‘Severe blow’: Industry hit hard by unchanged wheat tariff

Grain SA has strongly rejected the outcome of the wheat tariff amendment investigation, following confirmation in the Government Gazette that the Dollar-Based Reference Price (DBRP) for wheat will remain unchanged at US$279 per ton and that no automatic trigger mechanism will be implemented.

The application, submitted by Grain SA and the South African Cereals and Oilseeds Trade Association (Sacota), requested an increase in the wheat reference price from US$279/ton to US$289/ton, as well as a more efficient mechanism to address delays between tariff triggers and implementation.

Grain SA said it regards this decision as a severe blow to wheat producers and to the long-term sustainability of South Africa’s domestic wheat industry.

‘Deeply disappointing’

Chief executive officer of Grain SA, Tobias Doyer, said they were not satisfied with the outcome, and they do not accept the reasoning on which it is based.

“The decision fails to reflect the reality on wheat farms across South Africa. Producers are under pressure from rising input costs, volatile markets, high financing costs, logistics challenges and unfair international competition. To suggest that the current framework provides adequate protection is simply not aligned with what producers are experiencing,” Doyer said.

Grain SA will now study all available avenues to challenge the decision and will continue to fight for a fair, workable and economically realistic wheat tariff dispensation.

Doyer said local producers receive no comparable support, yet are expected to carry the risk of production, maintain quality standards, absorb cost increases and compete against imports priced in a heavily distorted global market.

“This decision effectively tells producers that they must continue producing under increasingly difficult conditions while receiving insufficient policy support. That is not sustainable. If South Africa wants local wheat production, then policy must recognise the realities of producing wheat in this country,” he said.

Richard Krige, Chairperson of Grain SA, said it was deeply disappointing that the very value chain that benefits from local wheat quality would oppose a measure aimed at keeping that production viable.

“Millers value South African wheat quality, but producers cannot continue carrying the cost and risk of that quality if the market and policy environment refuse to reward them for it.

“South African wheat producers have been encouraged to produce quality wheat, but the market and policy environment are not rewarding them for it. If producers cannot be paid for quality, they will have no choice but to focus on yield and quantity simply to survive. These are basic business principles, not threats. You cannot continue producing quality if there is no market for quality,” he said.

Industry seeks fair wheat tariff

The organisation said it will continue to advocate for a wheat tariff framework that is fair, responsive and grounded in economic reality.

“Wheat producers are not asking for special treatment. They are asking for a fair chance to survive, compete and continue producing food for South Africa. Wheat farmers collectively, as Grain SA, will continue this fight for survival.”

Executive director of Sacota, Dr André van der Vyver, said as industry receives news of the conclusion of this investigation, market participants are once again experiencing the very delays that formed part of the motivation for the review.

“A zero wheat import tariff was triggered on 12 May 2026; implementation has still not occurred. This represents a delay of 27 working days and highlights the ongoing challenges associated with the current tariff administration process.

“This time, it will be to the detriment of the consumer who is paying more for wheat than they should. South Africa imports approximately 1.8 million tons of wheat, or roughly 50% of our requirements,” he said.