Industry regulatory body South African Sugar Association (SASA) is advocating for the urgent implementation of the key pillars of the Sugarcane Value Chain Master Plan to 2030 – including strategic trade protection through the upward adjustment of the dollar-based reference price to $905. SASA lodged the tariff application with the International Trade Administration Commission of South Africa in October 2024.

This will help to stem the current escalating surge in imported sugar that has cost the industry more than R1.4-billion in lost revenue. This is having a significant impact on all growers and millers, including Tongaat Hulett Limited (THL), which, at the time of writing, was unlikely to meet this month’s deadline to reopen its mills. THL was involved in an ongoing court case to determine if the company would be placed in provisional liquidation.

“Deep-sea imports from subsidised countries, such as Brazil and India, have displaced local producers to the tune of more than R1.4-billion during the 2025/26 season, which ended on March 31, 2026. This has a debilitating impact on both growers and millers. This avalanche of sugar imports poses a serious threat to the industry’s sustainability,” says SASA executive director Sifiso Mhlaba.

The high court application for the provisional liquidation of THL also threatened the longevity of the industry, as THL plays an important role in sustaining smaller growers and facilitates profitability and cashflow in the industry, alongside other milling companies and consolidated farming operations.

“Of the industry total of 2-million tonnes of cane delivered by small-scale growers (SSGs) this season, SSGs in the THL catchment area contributed 835 287 t, or 40%. In terms of the registered SSGs who delivered cane in the previous 2024/25 season, SSGs in the THL catchment area accounted for 60.21%.”

Mhlaba adds that 15 446 SSGs will be adversely affected by THL’s provisional liquidation, in addition to the 2 919 consolidated farming operation beneficiaries, comprising about 46% of the industry in the THL catchment.

The liquidation and ultimate closure of THL, as well as the decline of the sugar industry, would result in a weakened economy, with job losses, diminished livelihoods, food insecurity, and revenue loss for farmers and millers.

“Currently, the industry creates 65 000 direct and 270 000 indirect jobs in  KwaZulu-Natal and Mpumalanga. Further, about one-million livelihoods depend on sugarcane growing and milling activities . . . adequate protection against deep-sea imports is critical. Most sugar-producing countries protect themselves against the distorted and dumped market.” 

He says it is important for government to create an enabling environment for the sugar industry and associated professionals.

SASA will continue to engage with various government departments, professional sugar industry associations and expert organisations to support the farmers, millers and refiners, as well as to ensure an efficient policy framework to encourage production and diversification efforts.