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

Sugar

South Africa

Market & Price Trends

Innovation & Technology

Published Jan 4, 2024

Tridge summary

In 2023, South Africa's sugar industry faced challenges due to major milling companies in business rescue, causing uncertainty for farmers and industry members. Dr. Siyabonga Madlala of Safda highlighted the critical need for the outcome of the business rescue processes to ensure milling capacity and local sugar supply for the year ahead. Sugarcane and livestock farmer Rodney Mbuyazi expressed frustrations but remains hopeful for 2024, especially if there is government support for black disadvantaged farmers who have faced challenges such as bad weather conditions and lack of help.

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Original content

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 ...

Source: Foodformzansi