The sustainability of black small-scale sugar cane growers, industry transformation and the implementation of the Sugarcane Value-Chain Master Plan to 2030 were some of the discussions in a meeting of the SA Sugar Association (Sasa) and agriculture minister John Steenhuisen.
The meeting on Friday in Durban brought together key stakeholders, including small-scale growers, industry leaders and government representatives.
The dialogue emphasised the government’s commitment to supporting rural economies in KwaZulu-Natal and Mpumalanga, where sugar cane farming is a vital economic driver.
Steenhuisen said the government was committed to ensuring the sustainability of more than 24,000 black small-scale sugar cane farmers, who are crucial to the multibillion-rand sugar industry and form a significant part of the agricultural sector.
“The sustainability of small-scale sugar cane farmers must remain one of the main priorities for both government and the industry,” Steenhuisen said. “The government is committed to creating an enabling environment for small-scale farmers to thrive and contribute to the country’s economic growth.”
Sasa chair Fay Mukaddam said there was consensus about the critical importance of ensuring the empowerment and sustainability of black small-scale growers, who have always been the majority in the industry in terms of numbers.
Sasa has been pivotal in empowering small-scale farmers through targeted initiatives. Since 2019, R1.09bn has been invested in transformation programmes, with R700.55m allocated directly to this group. These funds have supported various projects aimed at improving infrastructure and reducing operational costs for small-scale growers.
Notable interventions include a R46.5m infrastructure rehabilitation project in Mpumalanga that established 300ha of cane, as well as a R3.3m rail siding initiative in Mkhuze in northern KwaZulu-Natal that significantly reduced transport costs for Makhathini-based growers.
Additionally, the installation of a dummy spiller at Gledhow sugar mill in KwaDukuza, KwaZulu-Natal, for R7.6m has decreased hauler turnaround times, further improving efficiency for
small-scale growers.
Mukaddam highlighted the importance of these initiatives. “The sustainability of black small-scale growers is critical for transforming the sugar industry into an inclusive and competitive sector.”
Another focal point of the gathering was the Sugarcane Value Chain-Master Plan, which is designed to stabilise and diversify the industry. The plan, as a road map, aims to transition the industry from a sugar-centric model to a broader value chain that includes biofuels and other products.
Phase 1 of the master plan (2020—2023) successfully stabilised local markets and provided financial support to small-scale growers through a premium price payment (PPP) system. For the 2024/2025 season, R71.08m has been allocated to offset structural disadvantages faced by these farmers.
Phase 2 focuses on long-term interventions that address critical challenges within the industry. These include improving access to land and capital for small-scale growers, enhancing economies of scale and promoting diversification into new markets.
The industry continues to face big challenges despite progress being made through these initiatives. Over the past two decades, the number of small-scale growers has declined sharply from 50,561 in 2001 to just 24,015 in 2024, due to economic pressures and structural inefficiencies within the sector. External factors such as competition from imports and the health promotion levy (HPL) have further strained the industry’s viability.
However, the proposed cancellation of an increase in the HPL scheduled for April 2025 offers temporary relief to stakeholders.
The HPL has sparked a debate about public health and economic policy. Introduced in April 2018, the HPL aims to reduce the consumption of sugar-sweetened beverages and combat rising rates of obesity and diabetes in SA.
Originally, finance minister Enoch Godongwana had planned to increase the HPL as part of the government’s broader strategy to address noncommunicable diseases linked to high sugar intake. But this increase has been postponed amid concerns from various stakeholders. Stakeholders argue that raising the levy could lead to job losses and economic harm, echoing similar arguments made against taxes on tobacco and alcohol.
Steenhuisen called for continued collaboration among all parties involved. “We must work together to secure the livelihoods of our farmers while building a globally competitive sugar industry,” he said.
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