Media statement by SA Canegrowers
South Africa’s 2026/27 sugarcane milling season has started strongly, with early deliveries tracking ahead of previous years and reflecting the resilience and determination of the country’s 28,000 sugarcane growers.
All the sugar mills except for the three Tongaat Hulett mills have opened for the season, and early season statistics show that 48% more raw sugarcane has been delivered to the mills by growers when compared to the same period last year.
In the coming weeks, the three remaining Tongaat Hulett sugar mills are expected to also open and begin accepting cane deliveries from growers in their respective regions. Tongaat Hulett’s three mills serve 18,000 sugarcane growers in the country.
“We hope growers supplying the Tongaat Hulett mills, who are beginning the season later than other growing regions, will be able to have a productive and successful season despite the uncertainty surrounding the company,” said Higgins Mdluli, chairperson of SA Canegrowers. “The industry continues to show remarkable resilience even under extremely difficult conditions.”
The positive start to the season comes at a time of significant uncertainty for the sugar industry. Tongaat Hulett recently received R200 million in additional, temporary operational funding support from the Industrial Development Corporation (IDC) while negotiations aimed at avoiding liquidation continue. The liquidation application will return to court on 17 June, with discussions between stakeholders, including the THL BRPs, Vision and the IDC, still ongoing.
At the same time, South Africa continues to experience high levels of imported sugar entering the local market from countries such as Brazil, Thailand and India. This sugar is displacing locally grown sugar from the domestic market. For every ton that is imported the sugar industry loses more than R7,500 per ton.
In March of this year, 16,000 tons of imported sugar entered South Africa, double that of March 2025. Last year was one of the worst years on record regarding sugar imports, with 213,000 tons being imported from duty-bearing countries. If nothing changes, this year is set to repeat this pattern, placing significant strain on sugarcane growers and milling companies, including Tongaat Hulett.
SA Canegrowers has repeatedly raised concerns that the current sugar tariff mechanism is outdated and does not adequately protect the local industry against heavily subsidised global competitors. Many major sugar-producing countries provide extensive state support to their industries, artificially suppressing global sugar prices and undermining the competitiveness of South African producers both locally and in the export market. The International Trade Administration Commission of South Africa (ITAC) is currently reviewing the tariff mechanism for imported sugar. The process of review was started by the sugar industry in October 2024. This has exposed the one million livelihoods to an existential threat.
“We urge both the IDC and ITAC to prioritise the sustainability of the local sugar industry,” said Mdluli. “Entire rural communities in KwaZulu-Natal and Mpumalanga depend on sugarcane farming for jobs and economic activity, and the industry supports more than a million livelihoods across the value chain.”
“Despite ongoing challenges, growers continue to demonstrate that South Africa can produce sufficient, cost competitive sugar to meet local demand. We hope the industry’s significant contribution to food security, rural development and the national economy will continue to receive the protection and policy attention it deserves.”
Photo: Ngoc Nguyen on Pexels
Relevant Agribook pages include “Sugarcane.” The Business Listings below is taken from that page.
