South Africa's food inflation hits 16‑year low thanks to GMOs and precision farming

In June, South Africa's food price inflation fell to 1.4%, the lowest level in almost 16 years, even as overall consumer inflation rose to 5% driven by higher oil prices linked to the US‑Israel conflict over Iran. Analysts attribute the drop to two agricultural advances: the widespread adoption of genetically modified organisms (GMOs) since the late 1990s and the growth of precision‑farming techniques such as drone‑based spraying.

The record maize harvest forecast for 2025‑26 is 17.4 million hectares, with total grain and oil‑seed output reaching 2.15 million tonnes. Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa, said the bumper crop underpins the moderation in food prices. Corné Louw, head of applied economics at Grain SA, highlighted the importance of moisture retention in the semi‑arid country. While the El Niño pattern threatens drought later this summer, the current agricultural gains are seen as crucial for food security and inflation control.