Agri SA defends farmers’ role in food pricing at SAHRC food systems hearing
The role of farmers in South Africa’s food pricing system came under scrutiny on Day 3 of the South African Human Rights Commission’s National Investigative Hearing into Food Systems, where Agri SA argued that producers have limited control over rising food costs.
Agri SA chief executive officer Johann Kotze told the Commission that farmers operate as 'price takers' in a global market, with little influence over how food prices are ultimately set.
“We are price takers, not price makers… we cannot go and push the price up or down. We are very limited in how we deal with international price benchmarking in South Africa.”
Kotze explained that while agricultural production has more than doubled over the past three decades, a significant portion of produce is now exported, exposing farmers to global market fluctuations.
COSTS BEYOND THE FARM GATE BLAMED FOR HIGH PRICES
Agri SA emphasised that the main drivers of high food prices lie beyond the farm gate, particularly in logistics, infrastructure, and retail pricing.
Kotze said farmers rely on lobbying and policy engagement to influence affordability but do not directly control pricing mechanisms further along the value chain.
“We do not have a direct mechanism into the concept of buyers as the big retailers… what we do is lobby to ensure policies enable us to produce food at a reasonable or affordable price—but this is how far we go.”
He also highlighted infrastructure challenges, particularly deteriorating rural roads, as a key factor driving up costs in transporting food to markets.
SUGAR TAX CRITICISED FOR ECONOMIC IMPACT ON FARMING SECTOR
Agri SA also raised concerns about the impact of the sugar tax, arguing that it has had severe unintended consequences for the agricultural sector.
Legal and policy consultant Jane Rabie told the Commission the levy has significantly affected the sugar industry, with knock-on effects for jobs and exports.
“The introduction of this tax has cost the industry upward of a billion rand per year, with enormous losses to employment opportunities and export markets.”
Kotze added that while Agri SA supports healthier diets, it questions whether the tax is achieving its intended outcomes.
“We support a healthy diet… but we do argue the outcome of the levy. We don’t believe it is fulfilling the purpose it was structured for, and we are calling for a review.”
CALL FOR STRONGER FOOD DONATION PROTECTIONS
The organisation also advocated for the introduction of Good Samaritan legislation to protect and encourage food donations.
Kotze said large volumes of edible food were already informally redistributed by farmers, but these contributions were often undocumented and under-recognised.
“There’s a lot of value in what farmers already do… but it’s unseen. Nobody documents it, and nobody knows the extent of the contribution of primary producers to food security.”
He explained that food often rejected by retailers due to cosmetic imperfections is repurposed or redistributed, reducing waste and supporting food access.
FOOD WASTE AND FOOD INSECURITY REMAIN KEY CONCERNS
The hearing also highlighted the paradox of widespread hunger alongside significant food waste, with millions of tonnes of food going to waste annually.
Agri SA indicated that improving coordination across the food system, alongside better policy support, could help redirect surplus food to those in need.
The Commission continues to hear testimony as part of its probe into whether South Africa’s food system is meeting the constitutional right to sufficient food.
Findings from the inquiry are expected to inform policy recommendations aimed at tackling hunger and improving food affordability.
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