Sugarcane milling season off to sweet start despite uncertainty

South Africa’s 2026/27 sugarcane milling season is off to a strong start, with early deliveries tracking ahead of previous years.

The South African Canegrowers Association says this reflects the resilience of the country’s 28 000 sugarcane growers, some of whom continue to face uncertainty about the industry’s survival.

Early-season statistics show that 48% more raw sugarcane has been delivered to mills by growers when compared to the same period last year.

All sugar mills, except for the three Tongaat Hulett mills, have opened for the season.

Tongaat’s mills, which serve 18 000 sugarcane growers, are expected to open in the coming weeks and begin accepting cane deliveries.

Tongaat Hulett recently received R200 million in additional temporary operational funding from the Industrial Development Corporation (IDC), while negotiations aimed at avoiding liquidation continue.

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Read:

R200m government lifeline averts Tongaat Hulett liquidation for now
Vision Group claims solution to save Tongaat Hulett is in sight

The liquidation application will return to court on 17 June, with discussions between its business rescue practitioners, potential buyers the Vision Consortium, and the IDC still ongoing.

“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, chair of SA Canegrowers.

“The industry continues to show remarkable resilience even under extremely difficult conditions.”

Imports crowd out domestic canegrowers

While the rare recovery of Gledhow sugar mill has provided the industry with a much-needed lifeline, Mdluli says South Africa continues to experience high levels of imported sugar entering the local market from countries such as Brazil, Thailand and India.

Read: Sweet escape: The R1.8bn revival of Gledhow sugar mill

This sugar is displacing locally produced sugar in the domestic market.

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Mdluli says for every tonne that is imported, the sugar industry loses more than R7 500 per tonne. In March this year, 16 000 tonnes of imported sugar entered South Africa, double the amount recorded in March last year.

“Last year was one of the worst years on record regarding sugar imports, with 213 000 tonnes 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,” he warns.

The association wants an expedited solution to the current and outdated current sugar tariff mechanism, which it believes does not adequately protect the local industry against heavily subsidised global competitors.

The International Trade Administration Commission of South Africa (Itac) is currently reviewing the tariff mechanism for imported sugar.

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