Producers call for industry rescue through tariff renewal
UMFOLOZI SUGAR MILL Government must review and update the dollar-based reference price tariff formula to aid industry recovery
The sugar industry crisis needs to be urgently addressed, as the negative impacts of increased sugar imports will cause collateral damage to the entire industry, says brown sugar producer Umfolozi Sugar Mill (USM).
The company notes that, with sugar imports arriving at “an alarming” and unsustainable rate, local producers are unable to sell their products, which has led to them incurring storage costs.
“We are forced to export more sugar, at a very low world market price, which is way below the cost of production because it is a ‘dumped market’. If that trend continues, then nobody can survive. If we don’t get an appropriate tariff, the South African sugar industry will shut down,” says USM CEO Dr Adrian Wynne.
The way forward is for government to urgently review and update the dollar-based reference price tariff formula for sugar, says Wynne, as this will increase the sugar import tariff and prevent job losses in the deep rural areas in which the sugar industry operates.
He says USM continues to work with professional sugar industry body the South African Sugar Association which is the sugar industry’s principal voice when engaging government.
Wynne notes that a bright future for the sugar industry is obtainable, despite this ongoing crisis, provided an appropriate tariff is forthcoming in the not-too-distant future.
“South African businesses are generally resilient – we make a plan, and that’s what we’re doing. You do what you can in the areas [under your] control,” he concludes.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Showroom
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
