PRESS STATEMENT BY SA CANEGROWERS
August 23, 2024
FOR IMMEDIATE RELEASE
Data gathered by SA Canegrowers is showing that sugarcane crop yields so far this year are on par with previous years and sufficient to supply local demand. However, unusually dry weather over the last months in growing areas will potentially shorten the season by up to a month, adding yet another concern to an industry that is having to contend with a range of concurrent challenges, including the rising cost of electricity.
Up to August 17 this year, South Africa’s canegrowers delivered just over 10.6 million tons of sugarcane to sugar mills, compared to 10.59 million tons a year ago. The quality of the cane delivered was 2% higher compared to last year at 11,99%. This means that South Africa’s sugar industry will be more efficient as less cane is required for sugar production. It also means that despite the crop dropping, the industry will continue to supply locally produced sugar to commercial, industrial, and household consumers.
This year’s extremely dry weather in KwaZulu-Natal and Mpumalanga however will potentially bring an early end to the season. Some mills are already expecting to end production as soon as early November, one month ahead of normal closure. This could potentially leave some growers vulnerable with lower yields across the full season as they could have delivered less cane in total by the end of the season.
Drier conditions are especially concerning for growers in Mpumalanga and northern KwaZulu-Natal where crops need extensive irrigation. About 30% of the total sugar production comes from irrigated areas. A large portion of the SA Canegrowers’ 24,000 small-scale growers and 1,200 commercial growers operate in these areas. Drier weather means they could face restrictions in future when in fact they need to extend their irrigation schedules and given that irrigation systems rely on Eskom-provided electricity, years of steep price increases have had an impact on the already tight margins these growers can achieve for their product.
The recent news of Eskom’s proposed 40% price increases in the works for 2025 and beyond is therefore especially concerning and could lead to the increased financial burden that many these farmers face.
“Small-scale growers who rely on irrigation are especially vulnerable to outrageously high electricity tariff increases. They already operate on thin margins as it is and as such price shocks could push many of them out of business,” said Higgins Mdluli, chairman of SA Canegrowers.
Small-scale growers are at the heart of rural economies in South Africa and often provide jobs and income in areas where there are often very few other alternatives.
With threats like electricity hikes and shorter seasons owing to changing weather patterns, SA Canegrowers is calling on the government to do everything it possibly can to help safeguard local jobs through a well-developed and coherent strategy for the sugarcane value chain, including scrapping the sugar tax, and for consumers to support locally produced sugar.
“It is critical that South Africans support local produce. Signing up to our pledge (saveoursugar.org.za) and buying sugar with the Proudly South African logo, or sugar that clearly states that it originates in South Africa, helps support our growers. Doing so helps support the almost one million livelihoods that rely on the local sugar industry,” Mdluli said.
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For media enquiries:
Gerhard Mulder
gerhard@resolvecommunications.co.za
083 305 9361
High Eskom tariffs costs and bulk irrigation maintenance costs are the biggest treats to SSG’s. Cable theft is a cherry on top resulting to loss of irrigation time. Government should stop the sugar tax to save the jobs created by our industry.