Sugar industry sets its sights on production of bio-jet fuel
Finweek English|23 July 2021
The generation of green energy could become a game-changer for the local sugar industry.
Jacques Claassen

In line with its value chain master plan, the sugar industry plans to come up with specialised services and products, including sustainable aviation fuels (SAFs) for visiting jets that have to refuel once they have touched down in Johannesburg, Cape Town or Durban.

This is according to Richard Nicholson, who was an SA Cane Growers panellist in an Agri SA-Farmer’s Weekly webinar recently. Since a sharp drop in sugar sales within the Southern African Customs Union in the 2017/2018 season, the industry has made slow but steady progress to regain lost ground. The industry’s attempts to bolster demand came amidst the introduction of a “sugar tax” in 2018, which made sugar roughly 200% more expensive for the sweetened beverage manufacturers, who then switched to artificial sweeteners.

Moreover, the local industry had to deal with excess production around the world as a result of subsidies, a problem with dumping and a drop in recent years in the so-called recoverable value (RV) producer’s price for sugar cane. The latter has subsequently recovered to R5 000 per tonne for 2020/2021, which is just higher than the R4 931 of the 2016/2017 season. Meanwhile the international sugar price has also shown an increase.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM FINWEEK ENGLISHView All

The winter of our discontent

What is being done to develop opportunities in townships?

4 mins read
Finweek English
24 September 2021

THE INSIDE VIEW ON JSE OUTFLOWS

SA’s stock market has been bleeding foreign capital lately. What lies behind the outflow and what can be expected from the bourse going forward?

9 mins read
Finweek English
24 September 2021

The future of fast food

SA’s competitive fast-food industry was mostly spared from the Covid-19 lockdowns, but times are changing and there may be more upheavals on the way.

4 mins read
Finweek English
24 September 2021

The dynamics driving US inflation

US-driven global price increases may not be transitory thanks to the dynamics of oil supply.

4 mins read
Finweek English
24 September 2021

Short-sellers are again at the short end

Short-sellers have hoped that a tighter US monetary policy would pull back equity shares, but to no avail. Why is a long view the better option for now?

3 mins read
Finweek English
24 September 2021

Outlook on SA inflation

A look at the forces determining price increases in South Africa for the rest of the year.

4 mins read
Finweek English
24 September 2021

Keep it simple

Choose simplicity over complexity when considering stocks.

3 mins read
Finweek English
24 September 2021

Implats to tap into battery metals?

The platinum group miner is considering investment options to benefit from future metals.

3 mins read
Finweek English
24 September 2021

Accepting Ferraris as collateral

Funding entrepreneurs by taking their accumulated assets into account is challenging vested ways of financing.

3 mins read
Finweek English
24 September 2021

Is The US Market Close To A Crash?

Schalk Louw looks at three indicators which address the probability of a US market correction.

3 mins read
Finweek English
24 September 2021