By Robyn Joubert
Government is committed to ensuring the growth and success of the sugar industry’s black small-scale growers (SSGs), Agriculture Minister John Steenhuisen said in discussions with SSGs and sugar industry leaders in Durban on 21 February.
SSGs are an integral part of KwaZulu-Natal and Mpumalanga’s multi-billion-rand sugar industry. However, there has been a substantial decrease in grower numbers due to serious challenges that have bedevilled the industry in the past 23 years.
Between 2001 and 2024, the industry experienced a dramatic decline of over 26 500 SSGs – almost half – from 50 561 to 24 015. Large-scale growers (LSGs) were not spared, declining by 623 from 1779 to 1157 – almost one-third.
Steenhuisen stressed the importance of a bottom-up approach in empowering SSGs.
“The sustainability of small-scale sugarcane farmers must remain one of the priorities for both government and the industry. You are part of the agriculture family, and we regard you as very important stakeholders in agriculture,” the minister said to growers.
South African Sugar Association (SASA) Chairperson Advocate Fay Mukaddam said empowering the industry’s remaining 24 015 SSGs was critical.
In 2018, the sugar industry introduced a billion-rand Transformation Intervention Fund. Providing more than R200m/year over five years, funding is extracted by way of levies from all sugar industry members.
An estimated 13 349 SSGs have benefited from this empowerment fund annually since the 2019/2020 season, with R238.9m allocated for the current season.
“SASA has spent R1.09bn on empowerment initiatives. Black SSGs received R700m (64.27%), black LSGs received R254m (25.22%) and other interventions for black beneficiaries amounted to R137m (12.64%),” Mukaddam said.
Funding is delivered through two categories: cane delivery-based grant funding to active black growers who deliver sugarcane, and non-delivery-based interventions.
Non-delivery funding success stories include:
- The R46.5m infrastructure rehabilitation project in Nkomazi, Mpumalanga, which led to the establishment of 300ha of SSG cane.
- The R3.3m rail siding initiative in Mkhuze, KwaZulu-Natal, which enables Makhathini SSGs to transport 70 000t cane to Felixton Mill at a significantly lower transport cost.
- The installation of a R7.6m dummy spiller at Gledhow Sugar Mill, reducing SSG hauler turnaround times and transport costs.
The Sugarcane Value Chain Master Plan to 2030, introduced in 2020 to ensure transformation in the value chain, addresses factors impeding SSG growth, such as access to land and capital, lack of economies of scale, long transport distances and high contractor costs.
As part of the Master Plan, SSGs receive a Premium Price Payment (PPP) to compensate for dis-economies of scale.
SSGs benefited from at least R60m per season through this price support mechanism from 2021/2022 to 2023/2024, escalating to R68m last year and R71m in the current 2024/2025 season.
This transformation funding has been crucial in stabilising the numbers of SSGs and contributing to a rise in yields.
The industry is about to enter phase two of the Master Plan, with special emphasis on SSGs.
“The long-term strategy is to ensure SSGs remain in cane farming and are sustainable with improved productivity in the short-term while medium- to long-term interventions are developed,” said Mukaddam.
| 31 March 2001 | 31 March 2024 | Difference | |
| Number of SSGs | 50 561 | 24 015 | 26 546 |
| Number of LSGs | 1 779 | 1 157 | 623 |
While the sugar industry has experienced a dramatic decline in grower numbers in the past 23 years, numbers have stabilised since transformation initiatives were introduced.
