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RIMAIAgribusiness SchoolMy land

Module 12 · M2 Grains and Oilseeds

Small Grains and Sorghum

Is there a profitable business in wheat, barley, sorghum, millet or the health-food grains on my land, and who will buy it?

Grain silos beside a maize field with a truck loading bags

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Small grains divide into two very different businesses. Wheat and barley are winter crops grown under irrigation or in winter-rainfall areas, sold into concentrated milling and brewing industries. Sorghum and millet are drought-tolerant summer crops that survive where maize fails. Oats and canola ride health-food and edible-oil demand. The student chooses which of these the land and the market support.

Small Grains and Sorghum: the product, the five stages of the business, the unit it is sold by and where it is producedSmall Grains and Sorghum: how the business runsSold bytonnes (t) per hectare1Plant2Grow3Harvest4Store5Sell to miller, brewer or boardZAZWZMBWNAProduces commerciallyImports most needsZA South Africa, ZW Zimbabwe, ZM Zambia, BW Botswana, NA Namibia

U1. The industry and where it grows

Article 5 opens with the region’s hardest fact about wheat: South Africa, with commercial farms and deep capital markets, still imports a large share of the wheat its bakeries use. Article 7 records South African commercial sorghum consumption at roughly 225,000 tonnes a year on the 2012/13 baseline, of which about 181,000 tonnes go to human use as malt and meal. Article 11 describes barley as a contract crop tied to malting and brewing, and Article 12 places canola and oats in the Western Cape.

In the local markets, Zimbabwe harvested 562,591 tonnes of wheat in 2025 and targets 662,500 tonnes from 125,000 hectares in its 2026 winter programme, all irrigated. It also harvested 323,002 tonnes of sorghum from 528,076 hectares in 2025/26. Zambia produced 81,822 tonnes of wheat and 37,652 tonnes of sorghum and millet in 2025/26. Namibia produced 21,631 tonnes of wheat and 3,090 tonnes of pearl millet, known locally as mahangu, through formal channels in 2025. Botswana’s sorghum is grown mainly by smaller farmers and bought by BAMB.

U2. Market structure and prices

Wheat prices across the region track import parity, because every market except Zimbabwe in its best seasons imports most of its wheat. Zimbabwe’s GMB buys wheat under a pre-planting price set by government. Namibia’s NAB sets a wheat floor price and fixes the mahangu floor at N$7,203 a tonne. Zimbabwe’s GMB pays the same price for traditional grains as for maize, US$364.75 a tonne for 2025/26, deliberately to encourage drought-tolerant crops. Botswana’s BAMB paid P4,100 a tonne for sorghum after the 2023 harvest, a 26% increase on the year before, because local supply was short.

Barley prices are set in the contract with the maltster or brewer before planting. Sorghum for brewing is often bought under contract by breweries; sorghum for meal goes to millers and marketing boards.

U3. Imports and exports

The region is a large wheat importer. Zambia expects to import 358,318 tonnes of wheat in 2026/27, roughly four times its own output. Namibia imported 184,845 tonnes in 2025, with local wheat covering 10% of supply. Article 6 explains why governments care so much: the price of bread is political, and bread-price shocks have toppled governments. That makes wheat import substitution a recurring policy priority, which brings subsidies, guaranteed prices and irrigation schemes, and also brings the risk that the policy changes. Sorghum trades less across borders, though Botswana has imported sorghum when local supply ran short.

U4. The value chain and who buys

Small Grains and Sorghum value chain: stages from inputs to the consumer, who operates each, where the margin is taken, where a small farm enters and who buysSmall Grains and Sorghum: the value chain and who buysFollow the product left to right. Ochre shows where most of the margin is taken. Green shows where a small farm can enter.1InputsSeed; themaltstersupplies thebarley variety2FarmGrowers undercontractMOST OF THE MARGIN3ProcessMillers andmaltsters4ManufactureBakers,brewers,health-foodmakers5RetailShops andsupermarkets6ConsumerBread, beer,meal, specialtygrainYour entry pointBarley under contract to a maltster, sorghum into beer or meal, or specialty grains for thewellness market.Buyers you can reachMaltsters under contract, millers, opaque-beer brewers, health-food and gluten-freemakers.

Wheat goes from farmer to miller to baker, and milling is concentrated in a few large firms in every market. Barley is the purest example of one buyer building an industry: Article 11 shows that the maltster supplies the variety, sets the specification and contracts the crop. Sorghum has two chains: a traditional one into opaque beer and meal, and a newer one, described in Article 7, into gluten-free and health-food products. Article 12 makes the case for competing on value rather than bulk, through oats, canola and specialty grains sold into wellness and edible-oil markets.

U5. Market access and barriers

Wheat is graded on protein content, falling number, moisture and screenings, and millers pay for baking quality. Malting barley has strict specifications on germination, protein and variety, and a crop that misses them falls to feed-grade price. Sorghum for brewing must meet the brewer’s specification, and sorghum for meal must be free of mould. Wheat in summer-rainfall countries can only be grown under irrigation in winter, so water rights and pumping power costs are the true barrier. Bird damage is a serious problem for sorghum near settlements and wetlands.

U6. The entry route

Real minimum capital. Irrigated wheat needs a centre pivot or other irrigation system, reliable power and water rights for the winter season, which puts it beyond most new small farmers unless they join an existing irrigation scheme. Sorghum and millet need far less: seed, modest fertiliser and labour for bird-scaring and harvest, which makes them the low-capital entry into small grains.

Input choke points. For wheat, electricity for pumping during winter and timely access to combine harvesters. For barley, the contract itself: without it there is no market. For sorghum, certified seed of the variety the buyer wants and protection from birds.

Offtake options. For wheat, the marketing board, the miller or a contract under a government winter programme. For barley, the maltster or brewer only. For sorghum, the marketing board, breweries, millers and a growing health-food segment. For mahangu in Namibia, the floor-price system through registered millers.

Who to call. In Zimbabwe, the GMB and the winter wheat programme. In Zambia, millers and the FRA for sorghum. In Botswana, BAMB for sorghum contracts. In Namibia, the NAB and registered millers. In South Africa, maltsters for barley contracts.

The verdict for a small holding. On dryland with modest rainfall, contract sorghum or millet is the realistic entry and fits the drought-tolerant strategy from Module C9. Irrigated wheat is a scheme or scale business. Barley is only possible inside a maltster’s contract area.

The South African benchmark and your market

Market Main small grain position Latest data-layer reference
South Africa Large wheat importer; contract barley; sorghum for malt and meal Sorghum consumption about 225,000 t a year (2012/13 baseline)
Zimbabwe Irrigated winter wheat drive; sorghum at maize price Wheat 562,591 t (2025); sorghum 323,002 t (2025/26)
Zambia Wheat deficit Wheat 81,822 t; imports 358,318 t expected
Botswana Sorghum is the staple grain for BAMB Sorghum P4,100/t (2023 harvest)
Namibia Wheat and mahangu under NAB Mahangu floor N$7,203/t; wheat 10% local (2025)

Apply it to your land

Decide whether the land can grow a winter crop under irrigation or only a summer dryland crop. For the chosen grain, run T-M2-02 Input Plan per Hectare and T-M2-03 Yield-to-Income Calculator at the student’s market price, enter the result in T-M2-01 Enterprise Budget, test storage in T-M2-04 and compare prices across markets in T-M2-05. Name the buyer and whether a contract is required before planting.

Dictionary terms introduced

Code Term Plain meaning
D-small-grains Small grains Wheat, barley, oats, sorghum and millet
D-malting-barley Malting barley Barley grown to brewers’ specifications for making malt
D-mahangu Mahangu The Namibian name for pearl millet
D-falling-number Falling number A test of wheat’s baking quality
D-winter-crop Winter crop A crop planted after the summer rains, usually under irrigation in summer-rainfall areas

Calculators: T-M2-01 Enterprise Budget, T-M2-02 Input Plan per Hectare, T-M2-03 Yield-to-Income Calculator, T-M2-04 Storage versus Sell-at-Harvest, T-M2-05 Market Price Comparator.

Library sources: LIB-A005, LIB-A006, LIB-A007, LIB-A011, LIB-A012; LIB-P-Wheat, LIB-P-Wheat-IP, LIB-P-Barley, LIB-P-Oats, LIB-P-Sorghum; LIB-C-ZW-SmallGrainsSorghum, LIB-C-ZM-SmallGrainsSorghum, LIB-C-BW-SmallGrainsSorghum, LIB-C-NA-SmallGrainsSorghum.