South African sugar growers urge action against unfair trade practices impacting industry
SA Canegrowers has raised fresh concerns over unfair global trade practices threatening South Africa’s sugar industry. Chairman Higgins Mdluli warned that heavily subsidised or dumped foreign sugar is entering the country below production cost, costing local growers R6,000 per ton and risking thousands of jobs. He urged stronger protections and fair trade to sustain rural livelihoods and industry viability.
SA Canegrowers has cautioned once again that the local industry was facing many challenges, not least of which is the increasing risk local growers face from unfair global trade practices.
Higgins Mdluli, SA Canegrowers chairman, last week said foreign sugar was currently entering South Africa at prices below the cost of production and below the global sugar price, owing to some foreign governments either heavily subsidising their industries or countries dumping their excess sugar at a loss.
Mdluli said for every ton of imported sugar, local sugarcane growers lose R6 000 in income and jobs were imperilled.
According to Mdluli, local sugarcane growers were unable to compete with such unfairly subsidised imports, particularly at a time when the industry was also facing a host of other challenges including unpredictable weather patterns, mill closures, and the sugar tax.
He said rural communities in KwaZulu-Natal and Mpumalanga were especially vulnerable, where large and small-scale sugarcane growers provide much-needed jobs and stability. Rural communities depend on the jobs and income provided by agriculture, like sugarcane growing.
“Local canegrowers need greater protection from unfair sugar dumping and subsidised cheap imports,” he said. Play Video
Mdluli added that cheap imports further undermined the viability of farming operations and placed hundreds of thousands of jobs at risk across the industry value chain – from sugarcane fields to sugar milling companies and distribution networks.
He said South Africa’s sugar industry produces enough sugar to service the full demand of SADC countries, leaving a surplus that is exported according to the global sugar price.
“We call on all social partners, government, industry players, and commercial end-users and consumers, to stand with South African sugarcane growers. Our growers contribute to a thriving, inclusive agricultural economy, but to continue to do so we need to be able to compete on a level playing field,” said Mdluli.
“We look forward to working with all role players as part of the next version of the Sugarcane Value Chain Master Plan 2030 to help secure the sector well into the future.”
Mdluli was re-elected as the chairman of the organisation last week and will serve for a year. He will be supported by two vice-chairs, Andrew Russell and Kurt Stock, and Rex Talmage will represent SA Canegrowers as independent vice-chair of the South African Sugar Association.
He said that it is an honour to be re-elected to serve as chair of the SA Canegrowers board at such a critical time for our industry.
“I look forward to continuing working closely with our growers, partners, and stakeholders to build a sustainable, inclusive, and resilient sugar sector that supports rural livelihoods and drives agricultural and economic growth in South Africa,” he said.
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Source : IOL
