The government is committed to ensuring that the more than 24 000 black small-scale sugarcane farmers remain an integral part of the multi-billion-rand sugar industry. File picture : Karen Sandison/Independent Newspapers
The SA Canegrowers on Monday welcomed Agriculture Minister John Steenhuisen’s recent commitment to supporting over 24 000 black small-scale sugarcane farmers in South Africa’s multi-billion-rand sugar industry.
“These growers in KwaZulu-Natal and Mpumalanga play a vital role in keeping South Africa’s sugar industry alive. In many of these rural areas, small-scale growers are among the few sources of jobs and income, making their success critical to the stability of the economies,” Higgins Mdluli, the chairman of SA Canegrowers, said on Monday.
His comments followed Steenhuisen’s Friday night meeting in Mount Edgecombe, north of Durban, with small-scale growers and sugar industry leaders, including the South African Sugar Association (Sasa).
There, Steenhuisen affirmed the government’s dedication to these farmers’ sustainability. “I am passionate about the cause of small-scale farmers to ensure their growth and success. You are part of the agriculture family, and we regard you as very important stakeholders in agriculture,” he said.
The Department of Agriculture said they have been at the forefront of the efforts aimed at securing the sustainability of the small-scale sugarcane farmers.
“The dire situation of SSGs necessitated a decisive intervention by Sasa and industry leaders, hence the installation of the billion-rand empowerment plan. An average of 13 349 SSGs per season have benefited from the Transformation Intervention Fund since the 2019/2020 season,” it said.
The Department added that Sasa has spent R1.09 billion on empowerment interventions/initiatives, especially for the benefit of black small-scale growers (SSGs). Of the R1.09bn SSGs received R700.55 million (64.27%), black large-scale growers (LSGs) received R254.47m (25.22%), and the value of other interventions for black beneficiaries amounted to R137.88m (12.64%).
Sasa said that the extension of empowerment funding (R238.9m for the current season) will continue to have a positive impact on SSGs and black growers in general. Two major categories of interventions exist – cane delivery-based and non-delivery-based interventions.
Sasa added that the condition for receiving this cane delivery-based grant funding is for growers to be active farmers who deliver sugarcane.
“Besides the cane delivery-based grant funding to black growers, further funding examples include the R46.5 million infrastructure rehabilitation project in the Nkomazi region, Mpumalanga (which has greatly benefited SSGs and led to 300 hectares of cane being established), the R3.3m SSG-driven rail siding initiative in Mkhuze, KwaZulu-Natal (making it possible for 70 000 tons of SSG cane to be transported to the Felixton Mill for the Makhathini-based growers at a significantly lower transport cost), and the installation of a dummy spiller (R7.6m) at the Gledhow Sugar Mill for cane delivery by SSGs, which reduced SSG hauler turnaround times and transport costs.”
The Department said that Phase One of the all-important Sugarcane Value Chain Master Plan to 2030 has cemented the foundational role of SSGs.
“A minimum of R60 million of Premium Price Payment (PPP) to SSGs as part of the Master Plan, for a period of three seasons (2021/2022 to 2023/2024), was allocated, escalating annually to R68,051,340 in the 2023/2024 season. The 2023/2024 season was the last year of PPP. However, on March 20, 2024, Sasa Council approved the extension of PPP to 2024/2025 with an inflationary adjustment, meaning the allocation for this season is R71.08m.”
Mdluli added that SA Canegrowers, representing 1 200 commercial and 24000 small-scale growers, has always been committed to building an inclusive sugar industry.
“This week, we’re also excited to welcome the Parliamentary Portfolio Committee on Trade, Industry, and Competition to KwaZulu-Natal, where the industry will showcase ongoing efforts to identify new revenue streams for growers. Strong policies that drive economic growth—like those outlined in the Master Plan—are key to ensuring the long-term sustainability of the industry,” he said.
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