The ongoing conflict in the Middle East is raising concerns about rising energy prices and their potential impact on global industries, including agriculture.
According to Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa (Agbiz), the biggest risk for South Africa’s agricultural sector is the increase in fuel and energy prices, which could raise production costs for farmers.
Fuel is a critical input in agriculture, powering machinery used in land preparation, planting, irrigation and transportation. Higher fuel prices therefore directly affect farm operating costs and food production.
Sihlobo noted that the situation is particularly important as the country prepares for the 2026–2027 winter crop season, when farmers typically begin planting crops such as wheat, barley and canola.
Rising oil prices linked to the conflict could increase the cost of diesel, fertilizers and logistics, potentially squeezing farmers’ margins and raising food prices if the situation persists.
However, Sihlobo also indicated that the full impact will depend on how long the conflict continues and how global energy markets respond in the coming months.
For now, South Africa’s agricultural sector is closely monitoring developments, as energy costs remain one of the key drivers of farming profitability and food supply stability.