AgriSA notes the National Minimum Wage Commission’s proposal for the 2026 adjustment of the National Minimum Wage, which recommends an increase of CPI + 1,5% for the year ahead.

While acknowledging the Commission’s review process, AgriSA reiterates the sector-specific realities and the strategic role of the agricultural industry in the development of rural areas, as outlined in its formal submission to the Department of Employment and Labour. Agriculture continues to operate in a context of heightened vulnerability, and decisions related to labour costs must be understood against this backdrop.

South Africa’s agricultural sector has been affected in recent years by severe drought, recurring animal disease outbreaks, rising input costs, and infrastructure deterioration. The latest BFAP Baseline shows that after significant contractions of 4,6% in 2023 and 8,7% in 2024, the sector is only now starting a fragile recovery. Electricity tariff increases, exceeding 25% on certain rural supply lines, combined with escalating irrigation, logistics, compliance, and private security costs, place producers under increasing pressure.

Agriculture remains a major employer, sustaining close to one million jobs. However, farm employment trends remain highly sensitive to climate shocks, profitability constraints, and rising input costs.

Export-oriented industries such as citrus, table grapes, nuts and wine remain particularly exposed to rising labour costs. These industries operate in highly competitive global markets where South African producers already face structural disadvantages, including high freight costs, strained ports, a weakened animal health system impacting market access, and tariff barriers in priority markets. In this environment, maintaining cost competitiveness is essential for sustaining jobs and export revenue.

AgriSA remains committed to constructive engagement with the Department of Employment and Labour and the Commission. The organisation will continue to advocate for an evidence-based policy approach that considers both worker welfare and the long-term sustainability of South Africa’s food security, rural employment, and the profitability of farming enterprises.

Enquiries
Johann Kotzé, AgriSA CEO
+27 (0)87 711 0626
info@agrisa.org.za