S/Africa’s agriculture sector shows mixed trends amid pressures

S/Africa’s agriculture sector shows mixed trends amid pressures

 

By Abbas Nazil

South Africa’s agricultural sector is navigating a complex economic landscape, marked by resilience in some areas and ongoing pressures in others, according to the latest weekly agrimetrics report by Paul Makube, Senior Agricultural Economist at FNB Commercial.

Covering the week ending 4 July 2025, the analysis provides a comprehensive overview of trends across livestock, fresh produce, fruit, grains, oilseeds, fibre, and sugar markets, reflecting both domestic developments and global influences.

In the livestock market, beef and mutton prices recorded strong year-on-year gains. Class A beef reached R81.02 per kilogram, up 45.2 percent annually, despite a minor 0.6 percent weekly dip.

Class A mutton followed closely with R105.07 per kilogram, up 21.0 percent from the previous year, though weekly prices declined by 0.9 percent . Contract pricing for sheep remained firm at R104.52 per kilogram.

Pork prices showed slower growth, with porkers at R34.07 per kilogram, rising just 6.9 percent year-on-year but pressured by a sharp 13.0 percent weekly drop in import parity pricing.

Poultry remained stable, with fresh whole birds at R39.10 per kilogram, reflecting 15.3 percent annual growth and minimal weekly variation.

Feed input costs are presenting new challenges, as divergent trends in grain and oilseed futures create complex cost dynamics for livestock producers.

White maize for September delivery rose to R4,827 per ton, a 2.8 percent monthly increase, while yellow maize declined 1.6 percent to R4,248 per ton.

Sunflower seed prices surged 5.0 percent to R9,730 per ton, while soybean futures fell 0.7 percent to R7,332 per ton.

The fresh produce market displayed seasonal variability. Tomato prices spiked 30.6 percent weekly to R13.97 per kilogram, and lettuce rose 14.5 percent to R16.86 per kilogram, with both showing robust annual growth.

Potatoes held steady at R5.63 per kilogram with modest weekly gains, while onion prices dropped 8.3 percent to R6.86 per kilogram, reflecting a 15.8 percent annual decline.

Fruit markets reflected export volatility. Apple prices dropped 11.9 percent weekly but held a 37.7 percent year-on-year increase. Avocados declined 16.2 percent weekly to R14.32 per kilogram.

Grape prices plummeted 15.3 percent week-on-week and 53.5 percent annually, alongside a 72.7 percent volume drop. Mangoes followed seasonal trends with a 47.0 percent weekly price decrease.

In the grain and oilseed sector, wheat futures for September rose 1.2 percent to R6,395 per ton, while December futures softened to R6,245 per ton.

Sunflower prices climbed, while soybeans fell slightly. Global parity pricing, particularly from the US, remains a critical factor, with CBOT corn futures translating to R2,824 per ton, down 7.0% monthly.

Fibre markets reflected varying performance. The wool market indicator stood at R12.08 per kilogram, while 19-micron wool reached R14.90 per kilogram.

Cotton prices in South Africa were R30.76 per kilogram, contrasting with US futures trading at $1.49–$1.55 per pound, highlighting price disparities due to exchange rates and logistics.

Sugar markets remain volatile, with ICE Sugar No. 11 futures for October at 16.13 US cents per pound, posting a 1.5 percent weekly and 5.2 percent monthly decline.

Global uncertainty continues to affect South African producers through import-linked pricing mechanisms.