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SA Canegrowers has expressed grave concern over the announcement that Gledhow Sugar Company has been placed under business rescue. This announcement is another sign of the sugar industry’s growing distress and the need for urgent intervention to prevent the crisis from deepening.
The Gledhow mill in Stanger, KwaZulu-Natal services more than 245 growers who produce more than 1,1 million tons of sugarcane per year, accounting for 6% of the industry’s total output. These growers employ more than 3 400 workers from surrounding communities. The announcement follows the entry of Tongaat Hulett’s South African operations into business rescue in October 2022, causing an acute crisis in the industry, delays in grower payments, and uncertainty about the future of sugar milling operations on the north coast of KwaZulu-Natal.
Read more about the effect of loadshedding on the sugar industry.
As the new season commences on 1 April 2023, Gledhow’s supplying growers now face similar uncertainty about whether the mill will operate normally, make payment for sugarcane delivered and meet its financial obligations to the industry. The milling operations at Gledhow are critical for the mill’s survival and for the region’s growers.
SA Canegrowers is therefore engaging extensively with the mill’s management, the South African Sugar Association, and with its members. SA Canegrowers will make every effort to support Gledhow’s supplying growers and to protect the livelihoods the industry supports. – Press release, SA Canegrowers