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Middle East Conflict Drives Energy Price Volatility: Grain SA Calls on Value Chain Partners to Support Producers Amid Rising Costs | SA News

20 Mar 2026

The ongoing conflict in the Middle East has introduced significant volatility into global energy markets, with Brent crude oil prices rising sharply in recent weeks. These increases are already flowing through to international diesel prices and global fertiliser markets, creating mounting cost pressures for South Africa’s grain and oilseed producers.

Diesel makes up between 13% and 15% of a grain and oilseed producer’s variable production costs, and South Africa imports a significant share of its domestic diesel requirements. This leaves the agricultural sector highly vulnerable to global price shocks. Fertiliser, of which more than 80% is imported, accounts for 30% to 50%…

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