South Africa: The future of sugar industry hangs in the balance

In 2023, South Africa’s sugar industry faced challenges with major milling companies in business rescue. However, sugarcane farmers and industry members await a brighter 2024 amid uncertainty and adversity. Dr Siyabonga Madlala, the executive chairman of the South African Farmers’ Development Association (Safda), said the most critical thing for the South African sugar industry before the end of the 2023 season was the two milling companies entangled in business rescue proceedings and court interdicts. This he said, introduced a notable element of uncertainty for the year ahead and that better days depended on the outcome of the business rescue processes for Gledhow Sugar and Tongaat Hullet. “We are hanging in limbo about what the outcomes for both cases will be. We will have to wait and see if farmers will have enough milling capacity for next year and whether the industry will be able to supply local sugar. It’s a big challenge for the industry now. “They are the suppliers of ...