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Data gathered by SA Canegrowers reveals that sugarcane crop yields so far this year are on par with previous years and sufficient to supply local demand. However, unusually dry weather over the last months in growing areas will potentially shorten the season by up to a month, adding yet another concern to an industry that has to contend with a range of concurrent challenges, including the rising cost of electricity.
Up to 17 August this year, South Africa’s cane growers delivered just over 10,6 million tonnes of sugarcane to sugar mills, compared to 10,59 million tonnes a year ago. The quality of the cane delivered was 2% higher if compared to last year at 11,99%. This means that South Africa’s sugar industry will be more efficient as less cane is required for sugar production. It also means that despite the crop dropping, the industry will continue to supply locally produced sugar to commercial, industrial, and household consumers.
Read more about transformation in the sugar industry here.
Dry weather concerns
This year’s extremely dry weather in KwaZulu-Natal and Mpumalanga will potentially bring an early end to the season. Some mills expect to end production as early as November, one month ahead of normal closure. This could leave some growers vulnerable with lower yields across the full season as they could have delivered less cane in total by the end of the season.
Drier conditions are especially concerning for growers in Mpumalanga and northern KwaZulu-Natal where crops need extensive irrigation. Roughly 30% of the total sugar production comes from irrigated areas. A large portion of the SA Canegrowers’ 24 000 small-scale growers and 1 200 commercial growers operate in these areas. Drier weather means they could face restrictions in future when in fact they need to extend their irrigation schedules. Given that irrigation systems rely on Eskom-provided electricity, years of steep price increases have had an impact on the already tight margins these growers can achieve for their product.
The recent news of Eskom’s proposed 40% price increases in the works for 2025 and beyond is therefore especially concerning and could lead to the increased financial burden that many of these producers face.
“Small-scale growers who rely on irrigation are especially vulnerable to outrageously high electricity tariff increases. They already operate on thin margins as it is and as such price shocks could push many of them out of business,” said Higgins Mdluli, chairman of SA Canegrowers.
Read more about sugar tax here.
An important industry
Small-scale growers are at the heart of rural economies in South Africa and often provide jobs and income in areas where there are very few alternatives.
With threats like electricity hikes and shorter seasons owing to changing weather patterns, SA Canegrowers is calling on the government to do everything it possibly can to help safeguard local jobs through a well-developed and coherent strategy for the sugarcane value chain. This includes scrapping sugar tax, and for consumers to support locally produced sugar.
“It is critical that South Africans support local produce. Signing up for our pledge (saveoursugar.org.za) and buying sugar with the Proudly South African logo, or sugar that clearly states that it originates in South Africa, helps support our growers. Doing so helps support the almost one million livelihoods that rely on the local sugar industry,” Mdluli said. – SA Canegrowers
