SA Canegrowers warns that drier-than-normal conditions may force an early end to the season, though the association says domestic canegrowers are delivering enough sugarcane for the country.
It said sugarcane crop yields so far this year were on par with previous years and sufficient to supply local demand.
However, the unusually dry weather over the past months in growing areas would potentially shorten the season by up to a month, adding yet another concern to an industry that has had to contend with a range of concurrent challenges, including the rising cost of electricity.
Higgins Mdluli, chairman of SA Canegrowers, on Friday said small-scale growers who relied on irrigation were 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,” Mdluli said.
Up to August 17 this year, South Africa’s canegrowers delivered just over 10.6 million tons of sugarcane to sugar mills, compared to 10.59 million tons a year ago.
The quality of the cane delivered was 2% higher compared to that of last year at 11.99%. This meant that South Africa’s sugar industry would be more efficient as less cane was required for sugar production.
It also meant that despite the crop dropping, the industry would continue to supply locally-produced sugar to commercial, industrial and household consumers.
This year’s extremely dry weather in KwaZulu-Natal and Mpumalanga, however, would potentially bring an early end to the season. Some mills were already expecting to end production as soon as early November, one month ahead of normal closure.
This could potentially 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, however, were especially concerning for growers in Mpumalanga and northern KwaZulu-Natal, where crops needed extensive irrigation.
About 30% of the total sugar production came from irrigated areas. A large portion of the SA Canegrowers’ 24 000 small-scale growers and 1 200 commercial growers operated in these areas.
The drier weather meant they could face restrictions in future, when in fact they needed to extend their irrigation schedules; and given that irrigation systems rely on Eskom-supplied electricity, years of steep price increases have had an impact on the already tight margins growers could get for their product.
The recent news of Eskom’s proposed 40% price increases in the works for next year and beyond was therefore especially concerning and could lead to an increased financial burden for many farmers.
Small-scale growers were at the heart of rural economies in South Africa and often provided jobs and income in areas where there were often very few alternatives.
With threats such as electricity hikes and shorter seasons owing to changing weather patterns, SA Canegrowers was calling on the government to do everything possible to help safeguard local jobs through a well-developed and coherent strategy for the sugarcane value chain, including scrapping the sugar tax, and for consumers to support locally-produced sugar.
Mdluli said it was critical South Africans supported local produce.
“Signing up to 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.
Direct employment within the sugar industry totals about 65 000 jobs, which represents a significant percentage of the total agricultural workforce in South Africa. Indirect employment is estimated at 270 000. In addition, there are more than 25 000 registered cane growers. Approximately one million people, more than 2% of South Africa’s population, depend on the sugar industry for a living.
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