Long term sustainability forecast for local sugar industry

Sugarcane farmers along with Gledhow sugar company (GSC) entered into a sweet deal when growers agreed to supply about 1 500 000 tons of cane a year under normal climatic conditions for 10 years.

GSC has been in operation since 2003 as an independent sugar manufacturer.

The company employs 400 staff and supports the livelihoods of approximately 4000 farmers from the KwaDukuza and Ilembe region.

The outcome of long term supply engagement was officially tabled at the Gledhow local grower council meeting held on August 15, confirming that the growers have concluded a new long term cane supply agreement with the Gledhow Mill.

In anticipation of the cane supply agreements coming to an end in 2019, the mill management and cane growers engaged in advance, for the purpose of GSC securing raw material supplies for a further 10 year period ending in 2029, and growers securing milling capacity and a market for their cane for the same period.

GSC’s executive board vice chairman Paul M de Robillard, said the company has invested funds and efforts into the best practices to growing sugarcane.

“GSC continues in its quest of producing high quality refined sugar for its customers. The mill currently has the capacity to crush 1 600 000 tons of cane in an extended season and to produce approximately 180 000 tons of refined sugar per annum,” said De Robillard.

With the milestone of the cane supply guaranteed to 2029, GSC foresees that shareholders will now be confident to spend capital on special projects when and if necessary, which would enhance its revenue and profitability, securing the sustainability of the business going forward.

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