Sugar Growers, Millers & Refiners

Need for industry growth must be recognised.

- Robyn Wilkinson

More favourable economic conditions for sugar cane production and processing need to be fostered in South Africa to protect and grow a sector that contributes an average R12-billion to the economy and provides about 350 000 jobs in the country, say industry associations the South African Cane Growers’ Association (Canegrowers) and the South African Sugar Millers’ Association (Sasma).

Sasma CEO Deane Rossler highlights that the local industry currently faces several challenges, partly owing to the drought, but also driven by policy issues that are hampering its sustainability and global competitiveness.

While the South African sugar industry is the largest such industry in Africa, producing two-million tons of sugar a year in a normal season of rainfall, it is comparatively small when considering countries like Brazil, which produces about 35-million tons a year.

“However, according to independent international cost-competitiveness surveys, South Africa is a globally competitive producer of high-quality sugar, ranking in the top 15 of 120 most cost-competitive sugar-producing countries. This is an indicator that sugar cane farmers and millers in the country are efficient producers, although this competitiveness is at risk, owing to reduced cane supply.”