CONSUMER RELIEF: GMOs and precision farming bring food prices down.
Better yields have ensured there’s plenty of food for South African tables,
Food prices in South Africa have been decreasing, alleviating some of the "cost of living" crisis that has been causing consumer inflation to rise. The main factors contributing to this trend are the use of genetically modified organisms (GMOs) and precision farming techniques. These agricultural advancements have resulted in increased crop yields, which have helped keep food inflation at an almost 16-year low of 1.4% in June 2023.
Although the El Niño weather pattern is expected to bring drought to South Africa this summer, the improved yields from GMOs and precision farming have mitigated the impact on food prices. This situation underscores the importance of these agricultural innovations, especially for poor households who are particularly vulnerable to fluctuations in food prices.
South Africa's 2025-26 maize harvest is predicted to be a record 17.4 million hectares, with overall grain and oil-seed production reaching a whopping 2.15 million tonnes. Corné Louw, chief economist at the Agricultural Business Chamber of South Africa, attributes the moderation in consumer food price inflation to grains being among the key products driving this trend.
The favourable conditions for this bumper crop were not simply the result of favorable summer rains, but rather the culmination of decades of agricultural advancements. GMOs were adopted in the late 1990s and have improved water retention in grain farming, particularly in South Africa's semi-arid climate. Precision farming, which employs GPS technologies to precisely apply inputs, has also played a significant role in increasing yields.
Historical data shows that maize yields have increased from 0.6 tonnes per hectare in 1923 to 6.4 tonnes per hectare in 2025, due to the combined effects of GMOs, precision farming, and other improvements in agricultural practices. This has led to a 16-year low in food inflation, which has had a positive impact on the overall Consumer Price Index and reduced the inflation burden on households.
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