As South Africa approaches the new wheat production season, rising international wheat prices have triggered a 75% reduction in the wheat import tariff.
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The lower tariff was triggered by a US$10/t increase in the international wheat price, according to a statement by the South African Cereals and Oilseeds Trade Association (SACOTA).
The previous import tariff of R619/t was triggered on 27 November 2025 but only implemented 52 working days later, on 13 February 2026. The new tariff will be R153,55/t.
“The reduction of R465,45/t may further impact wheat production profitability, although the counter-argument is that international wheat prices, and therefore the cost of imports, have increased,” SACOTA said.
Earlier this year, pressure from cheap, subsidised imports on the local wheat industry was once again raised at Grain SA’s regional meetings.
In a statement issued on 3 February, the organisation pointed out that wheat imports typically peak in September and October, just ahead of the Western Cape’s harvest period. Yet the implementation of the variable import tariff has been “delayed and unresponsive… undermining its intended function”.
Grain SA also said that “while farm-gate wheat prices adjust downwards rapidly, the same responsiveness is not observed elsewhere in the value chain”.
Dr Tobias Doyer, CEO of Grain SA, added: “This is not a functioning free market correction; it is a structurally distorted system where producers carry losses while cost pressures elsewhere in the chain are not adjusting at the same pace.”
Meanwhile, the industry has been waiting for 16 months for feedback from the International Trade Administration Commission of South Africa on a proposal to automate the tariff implementation process.
“The suggested system, similar to the fuel levy mechanism, would reduce delays and ultimately give the industry much-needed transparency and predictability.
“As an example, if the proposed methodology had been used, the triggered tariff of R153,55/t would have been implemented on 1 April 2026, only 10 days after the trigger,” SACOTA said.
The shortest implementation period was 33 working days, when an increase from R549,50/t to R851,50/t was triggered on 27 May 2025 but implemented on 11 July 2025.
The longest was 129 working days, when a drop from R422,00/t to R183,50/t was triggered on 1 October 2024 but only implemented on 4 April 2025.
More pressure for farmers
Speaking to Farmer’s Weekly, independent agricultural economist Prof Johan Willemse said the lower tariff will lead to a reduction in the SAFEX price and imports, despite the rise in the international dollar price.
“This is very unfortunate. At wheat prices of R6 000 to R6 100/t, farmers in the Western Cape are not breaking even,” he said. “It’s a problem.”
He added that the escalating war in the Middle East, following the joint attacks on Iran by the US and Israel, will not have an immediate effect on wheat prices.
“There will, however, be a slow effect. The attacks have led to a 40% increase in fertiliser prices, and as that works its way through, wheat prices in Chicago could rise by 30% to 40% over the next four months, depending, of course, on how long the war continues. The way things are currently developing, this will place upward pressure on international wheat prices.
“We also don’t know what the exchange rate will do; if it weakens, that could push prices up slightly,” he explained.
