Local news

Bumper sugarcane harvest soured by tariff threat

Industry stakeholders warn thousands of jobs hang in the balance in the wake of trade barriers.

There is some relief at last for North Coast sugarcane growers, who recorded their highest yield in eight years this growing season.

Industry stakeholder SA Canegrowers reports the 2025 season is expected to yield 17.7-million tonnes of sugarcane, a significant recovery from last year’s 16.47-million tonnes.

Last year’s local milling season was also cut short due to lower-than-expected sugarcane yields.

That compounded a torrid few years for the North Coast industry, which experienced unrest in 2021, floods the following year and the announcement that both Tongaat Hulett and the Gledhow Sugar Company were entering business rescue.

Sugarcane is one of the North Coast’s most prominent crops.

South African Growers Association director, Pratish Sharma, said millers and growers were therefore delighted with the yield.

“The weather conditions play a major role regarding how successful we are, and the past summer was a particularly good one,” said Sharma, who is also chairman of the Maidstone Local Grower Council.

READ MORE: Trump’s tariffs pose no direct threat to local sugar sales, but job losses are a possibility | North Coast Courier

Despite the good news, Sharma is concerned over a surge in cheap sugar imports and looming international trade barriers that threaten employment.

South Africa’s R25-billion a year sugar industry is facing a critical juncture due to heavily subsidised sugar imports entering the country at prices below local production costs. Adding to the strain is the US’s 30% tariff which will be introduced on August 7.

More than 65 000 direct and 270 000 indirect jobs rely on the sugar industry.

“We have a limited local market,” he said.

“We sell sugar at a price that covers the cost of production and provides a small margin – the surplus sugar needs to be exported.”

READ MORE: Imported sugar crushing local industry, warns Canegrowers chair | North Coast Courier

“The industry needs tariff protection urgently as world market prices are low and forecasts suggests that it will remain low for a significant period.”

According to the South African Sugar Association, more than 65 000 direct and 270 000 indirect jobs rely on the sugar industry.

South Africa’s R25-billion a year sugar industry is facing a critical juncture due to heavily subsidised sugar imports.

Higgins Mdluli, chairman of SA Canegrowers, echoed Sharma’s concerns, noting the industry’s optimism over improved yields is tempered by economic pressures.

“Delaying adjusting our sugar import tariff to reflect current global realities, is undermining the competitiveness of local producers,” said Mdluli.

“We urge government to move swiftly and revise the import duty in line with current global prices and to prioritise a new trade agreement with the US that safeguards our export potential.”


Stay in the loop with The North Coast Courier on FacebookXInstagram & YouTube for the latest news.

Mobile users can join our WhatsApp Broadcast Service here, or if you’re on desktop, scan the QR code below.


Stay in the loop with The North Coast Courier on FacebookXInstagram & YouTube for the latest news.

Mobile users can join our WhatsApp Broadcast Service here, or if you’re on desktop, scan the QR code below.

At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!

Support local journalism

Add The Citizen as a preferred source to see more from North Coast Courier in Google News and Top Stories.

Nothando Mhlongo

Fresh out of university, Nothando has a knack for telling human interest stories. When she's not furiously typing up her next article... you can find her relishing in her favourite dish - pasta.
Back to top button