Associations representing the interests of South Africa’s 28 000 sugarcane growers are united in pushing for enhanced tariff protection to hopefully curb the many tens of thousands of tonnes of cheap sugar flooding into the country.
By Lloyd Phillips, senior journalist at African Farming and Landbouweekblad
The South African Canegrowers Association (SA Canegrowers) and the South African Farmers Development Association (SAFDA) both state that they look forward to participating in and contributing to the International Trade Administration Commission of South Africa’s (ITAC’s) recently announced wide-ranging investigation to determine the most accurate and reasonable tariff protection mechanism on sugar imports.
African Farming recently reported that ITAC has invited comments and information from all parties who are interested in and affected by the dollar-based reference price (DBRP) used as a triggering mechanism for tariffs on imports of sugar into South Africa.
ITAC’s invitation comes after the South African Sugar Association’s October 2024 request to the commission for the DBRP to urgently be increased from its current level of US$680 per tonne to US$905 per tonne, and the Beverage Association of South Africa’s (BevSA’s) more recent request for the DBRP to be reduced to between US$552 per tonne and US$650 per tonne.
ITAC has given interested and affected parties until 5 March 2026 to submit their comments and information.
SA Canegrowers and SAFDA are unanimous in their view that the 177 408 tonnes of reportedly highly subsidised or dumped sugar that entered South Africa from January to November last year are causing devastating financial impacts for the country’s sugarcane growers, the majority of whom are small-scale farmers.
Unlike many other sugar-producing countries, South Africa does not provide state subsidies for its sugarcane growers.
Also read: ITAC to investigate dissent on tariff on imported sugar
Short-term Sweetness, Long-term Bitterness
SAFDA says: “These imports directly compete with locally produced sugar, forcing South African producers to divert displaced volumes [of local sugar] to international markets at a significant loss of approximately R7 700/tonne. With three months still remaining in the 2025-’26 [milling and marketing] season, should further imports enter the local market, there is a real risk that sugarcane growers may lose their retentions or even end up owing millers when sugarcane payments are reviewed and adjusted.
“The US$680/tonne DBRP on imported sugar was gazetted in 2018 and has become ineffective over time. It no longer provides adequate protection and has left our industry vulnerable and exposed to an influx of subsidised imports.”
SA Canegrowers cautions BevSA’s members and other stakeholders who are in favour of a lowered DBRP that this would only benefit them in the short term and would devastate the South African sugarcane value chain’s long-term future. The global sugar price fluctuates and the current low price “will not last forever”. When this happens and South Africa’s sugarcane value chain no longer exists because of a lowered DBRP and resultant unrestrained sugar imports, the country’s sugar importers will be forced to pay the higher global prices. There will be little to no South African sugar left to buy instead.
“The DBRP is outdated. It is critical that it is assessed against the realities of the global sugar market and that it continues to function as part of a fair South African trade policy. Not adjusting the DBRP to a fair level puts rural jobs and livelihoods at risk in a country where any further job losses and increased poverty would be devastating.”
It is estimated that one million livelihoods rely directly or indirectly on South Africa’s sugarcane value chain.
Also read:
Lucerne is a promising supplementary crop for Zululand’s struggling sugarcane growers
400% surge in sugar imports ‘unprecedented and dangerous’
