South Africa : Optimism as sugar season gets under way
Grower-led initiative GrowerCo seeks to rescue Tongaat Hulett from liquidation by making farmers equity partners. The plan could preserve thousands of jobs, improve creditor recoveries and sustain South Africa’s sugar industry. Meanwhile, mills reopened and early-season cane deliveries significantly exceeded last year.
The proposed rescue initiative, known as GrowerCo, was established in mid-May and is entirely led by growers who believe Tongaat Hulett can still be saved, rather than being dismantled through liquidation proceedings set to return to court on 17 June.
Speaking to Farmer’s Weekly, Pratish Sharma, a fourth-generation sugar cane farmer supplying Maidstone Mill and a board member of SA Canegrowers, said the plan comes at a critical moment for the industry. He is also part of GrowerCo.
“Tongaat Hulett was established 134 years ago and remains one of the largest economic drivers in rural KwaZulu-Natal, supporting between 35 000 and 40 000 direct jobs across farms, mills, and refinery operations. More than 17 500 growers supply the company’s mills, most of them small-scale growers,” he said.
He said the economic consequences of liquidation would be devastating.
“The future of KwaZulu-Natal is intricately tied to the future of Tongaat Hulett. The long-term economic and societal consequences of its liquidation would far exceed the liabilities on the company’s balance sheet.”
Sharma noted that GrowerCo’s proposal includes both small- and large-scale growers as equity partners, creating a long-term ownership model aimed at stabilising the business and preserving the sugar value chain.
Nicholas Ngobe, a farmer who supplies Amatikulu Mill, said GrowerCo’s model also presents an opportunity for meaningful transformation in agriculture.
“GrowerCo not only makes sense because it puts Tongaat Hulett under the ownership of people with a long-term commitment to the sugar industry in South Africa, but it is also a beacon of what true economic transformation can be.”
He added that small-scale growers are equity partners in GrowerCo and will earn returns not only on their sugar cane but will also share in equity growth over the long term.
“This creates the possibility that a sugar cane grower who today owns and farms their own land, but whose forebears may have worked as indentured labourers in the province’s sugar fields, could become a [shareholder] in one of South Africa’s oldest sugar companies.”
GrowerCo estimates that creditors could recover between R3 billion and R4,5 billion if Tongaat Hulett continues operating, compared with an estimated R1 billion to R1,5 billion should the company be liquidated.
“Under this model, every creditor recovers more. GrowerCo is a stakeholder-inclusive plan to avoid a liquidation scenario and ensure that Tongaat Hulett’s South African sugar operations can continue as a going concern,” Sharma said.
Maidstone mill reopens
Meanwhile, Tongaat Hulett’s three mills, including the historic Maidstone Mill where a special opening prayer was held, reopened on 14 May after weeks of uncertainty over the delayed start of the crushing season. They are supplied by 18 000 sugar cane growers.
The reopening came later than initially expected as the company battled operational and financial challenges linked to its ongoing business rescue and liquidation process.
Sharma said growers had initially been told the mill would only open later in May.
“We were told that it would only open on 27 May, but we received the good news last week that they had completed their maintenance early. It was a good surprise. We have already started harvesting our sugar cane,” he said.
Harold Maistry, president of the Tongaat Civic Association, said a traditional prayer ceremony was held at the mill ahead of the opening, continuing a practice that dates back more than 120 years.
“It honoured the labour of local farmers and mill workers while also praying for their safety and success. This year, it was also a celebration of the facility’s recent reopening and its continued role in the KwaZulu-Natal economy,” he said.
Strong start to crushing season
The wider South African sugar industry has also had a strong start to the season.
SA Canegrowers said in a statement that early-season deliveries are already outperforming last year’s figures, with 48% more raw sugar cane delivered to mills so far compared with the same period in 2025.
Chairperson Higgins Mdluli said growers have again demonstrated resilience under difficult conditions.
“We hope growers supplying the Tongaat Hulett mills, who are beginning the season later than other growing regions, will have a productive and successful season despite the uncertainty surrounding the company,” he said.
However, he said that despite the positive numbers, the industry is still battling rising sugar imports from countries including Brazil, India, and Thailand.
“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. In March this year, 16 000t of sugar were imported into South Africa, double that of March 2025,” he said.
Mdluli added that 2025 was one of the worst years on record regarding sugar imports, with 213 000t imported from duty-bearing countries.
“If nothing changes, this year is set to repeat this pattern, placing significant strain on sugar cane growers and milling companies, including Tongaat Hulett. We urge both the Industrial Development Corporation and the International Trade Administration Commission of South Africa to prioritise the sustainability of the local sugar industry,” Mdluli said.
“Entire rural communities in KwaZulu-Natal and Mpumalanga depend on sugar cane farming for jobs and economic activity, and the industry supports more than a million livelihoods across the value chain.”
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Source : Farmers Weekly
