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Home Crops Grains

Seed isn’t just a cost – it’s a cornerstone of profitability

2 July 2025
in Grains
Reading Time: 3 mins read
Photo For Illustrative Purposes: Andreas Arnold/Picture Alliance Via Getty Images

Photo for illustrative purposes: Andreas Arnold/picture alliance via Getty Images

By Nico van Burick

Seed should be seen as an investment, and although specialised seeds with improved genetic characteristics may be more expensive, they can ultimately increase the producer’s profitability.

Marguerite Pienaar, agricultural economist at Grain SA, says specialised seeds offer significant benefits, such as higher yields, better disease resistance and greater adaptability to extreme weather events.

In an article in SA Grain, she says the price of fertiliser and especially fuel, which account for about 35% and 13% of a producer’s variable costs, respectively, receive much attention in South Africa.

However, seed costs, which account for between 10% and 17% of maize producers’ ongoing production costs, receive relatively little attention despite their potentially greater impact in certain regions.

Grain SA plays a key role in continuously monitoring input prices on behalf of its members, with particular emphasis on seed prices, to encourage transparency and competition in the seed industry.

This helps producers make more informed and cost-effective decisions.

Pienaar says maize seed prices increased by 2.3% on average for the 2025/26 production season. Sunflower seed prices increased, on average, by 4.26%, grain sorghum seed by 6.2%, and soybean seed by 6.9%.

On average, seed prices increased at a lower rate than production price inflation.

“The characteristics of cultivars differ in one or more ways, and therefore each has a unique adaptability and yield potential. According to the ARC for grain crops, cultivar variety provides alternatives that can be used well.”

She says important guidelines for cultivar planning that need to be considered are never to replace a reliable cultivar with a new or unfamiliar cultivar within one season.

“Cultivar diversity spreads risk. Plant a range of cultivars that differ in growing season length and other characteristics.

“Cultivars must adapt to a specific yield potential, but must also be able to adapt to higher and lower potential conditions. Cultivars must be reviewed annually.”

Guidelines for purchases

Pienaar says some factors producers should take into account when purchasing seed include prices for different packages, for example, 25 kg packages or packs of 60 000 or 80 000 kernels per package.

There are also packs containing 150 000 or 180 000 kernels of sunflower seed and 60 000 and 140 000 kernels of soybean seed.

“New cultivars are mostly more expensive, but make sure that the cultivars have been independently tested and that the performance has been proven. Don’t take unnecessarily big risks with a new cultivar. Also note the agronomic characteristics, adaptability, yield performance and stability, quality characteristics and disease as well as pest resistance of a specific cultivar before purchasing it.”

She also warns that when purchasing, it is necessary to ensure that the seed’s quality meets all the requirements (including those on the package), especially with regard to uniformity of pip size and pip shape.

When purchasing genetically modified (GM) cultivars, make sure that the technology tariff is included in the price and that conventional maize for a refuge area is purchased in addition.

All those handling the seed must be able to identify the GM characteristics on seed packs and distinguish them from conventional cultivars.

She recommends that producers negotiate for a discount where possible and contact seed companies and their representatives for full details on prices and different packaging.

She also stresses that seed companies do not take responsibility for the quality of seed if seed treatment is not done by the company itself or by a registered chemical supplier.

“It is therefore recommended that producers who buy untreated seed and want to treat it later do so with the cooperation of the seed company.”

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