Middle East War Hits SA Farmers: Diesel, Fertiliser Costs SurgeGrain Producers Under Pressure

South Africa’s grain producers are facing mounting cost pressures as escalating conflict in the Middle East drives up global oil prices, with industry bodies warning of knock-on effects for fertiliser and diesel prices.

The Warning

Grain SA and the Fertilizer Association of Southern Africa (Fertasa) warned on Monday that ongoing conflict in the Middle East has raised oil prices and will impact South African farmers with higher fertiliser and diesel prices.

International oil benchmark Brent crude has surged above $100 per barrel amid fears of disruptions to critical shipping routes such as the Strait of Hormuz.

This volatility is already feeding into fertiliser markets, especially nitrogen-based products, with further price increases expected.

South Africa’s Exposure

The groups warned that South African farmers are particularly exposed due to the country’s heavy reliance on imported fuel and fertiliser.

“Rising diesel costs are expected to increase the cost of planting, harvesting and transport, while fertiliser price pressure – driven by disruptions in a key global supply region – will further strain already tight production margins.”

“In addition, exchange rate pressures and heightened market volatility are expected to complicate planning and input procurement decisions.”

Shared Responsibility

At a time when many farmers are already operating under constrained margins, the organisations stressed the need for responsible conduct across the agricultural value chain.

“As partners within the same value chain, there is a shared responsibility to support sustainable production and to avoid placing additional strain on primary producers during periods of short-term market volatility.”

Risk Management Advice

Grain SA and Fertasa urged farmers to take proactive steps:

• Reassess fertiliser application strategies based on soil conditions and realistic yield expectations

• Improve fuel efficiency through better operational planning

• Update financial plans to reflect changing cost structures

• Consider risk management tools such as forward pricing or diversification

• Where financially feasible, early procurement of fertiliser and fuel may help mitigate further price increases

The Fertiliser Factor

Wandile Sihlobo , chief economist at the Agricultural Business Chamber of South Africa (Agbiz), said farmers will bear the brunt of rising costs, as they are largely unable to pass increases on to consumers.

“This also means farmers will be under immense strain if the fertiliser prices remain elevated for some time. Fertiliser accounts for 35% of grain farmers’ input costs. “

Inflation Warning

Sihlobo added that the latest inflation figures, for February, were compiled before the Iran conflict precipitated a sharp rise in fuel prices.

“In essence, we expect South Africa’s consumer food price inflation to slow in 2026, but fuel prices remain a major upside risk, as they account for a substantial share of the distribution costs of food products.”

The Bottom Line

Diesel up. Fertiliser up. Farmers stuck in the middle.

They can’t pass on the costs. They can’t stop planting. And the war shows no signs of ending.

Grain SA and Fertasa are monitoring. Farmers are struggling. And the cost of food will follow.

{Source: AfricaNewsAgency}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com