Stakeholders in South Africa’s sugarcane industry have signed Phase Two of the Sugarcane Value Chain Master Plan to 2030, marking a renewed commitment to product diversification, industry sustainability and job security.
By Lebogang Mashala, editor at African Farming
According to the Department of Trade, Industry and Competition (dtic), the signing of the Master Plan last week in Durban, KwaZulu-Natal, overseen by the department’s Deputy Minister, Zuko Godlimpi, represents a significant shift towards innovation and enhanced value creation beyond traditional sugar production.
Godlimpi described the milestone as a turning point for the sector, positioning diversification and new product development at the centre of its future.
“Phase Two accelerates our efforts to move beyond a sugar-based model to a broader sugarcane-based industry,” he said. “We are reinvesting in existing capabilities while advancing technologies to minimise value losses, improve efficiency and unlock new opportunities.”
The dtic said the second phase builds on gains made under Phase One, which stabilised an industry that faced an existential crisis before the introduction of the Master Plan in November 2020.
A key objective of Phase Two is to reposition sugarcane from being seen purely as an agricultural commodity to being recognised as a versatile industrial input. This includes exploring opportunities in biofuels and other high-value products.
“We must see sugarcane as not just a crop, but as an engineered product capable of driving industrial development, creating jobs and enabling more sophisticated outputs such as fuel resources,” Godlimpi emphasised.
He challenged the industry to pursue ambitious growth targets, including increasing South Africa’s domestic fuel production from 40% to 55% through investment in technology and operations.
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The Importance of Black Small-scale Growers
Central to the Master Plan is the inclusion and retention of black small-scale growers, who Godlimpi described as foundational to the sector’s long-term sustainability.
“Phase One reinforced the importance of small-scale growers, and Phase Two will cement their role and ensure their continued participation in a viable industry,” he said.
Reflecting on recent visits to sugar mills ahead of the upcoming crushing season, Godlimpi said the engagements provided valuable insights into the sector’s readiness and future potential.
“The purpose was to assess preparedness for the season, which is critical for productivity and business viability. The ideas that emerged have strengthened my optimism about the industry’s future,” he added.
Speaking at the signing ceremony, the acting chairperson of the South African Sugar Association, Rex Talmage, highlighted the importance of collaboration among industry stakeholders.
“The resolution of outstanding issues at our last Executive Oversight Committee reflects serious engagement and goodwill among social partners,” he said. “The involvement of organised labour is not optional – it is essential. What we are building rests on the principle that the whole is greater than the sum of its parts.”
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Livelihoods at Stake
However, Talmage warned that rising imports continue to threaten the industry’s viability. By the end of February 2026, deep-sea sugar imports had exceeded 197 000 tonnes for the 2025/26 season, translating into an estimated R1.5 billion in lost revenue.
“These figures represent real livelihoods – about one million people who depend on this industry,” he said. “With the dollar-based reference price unchanged since 2018, the Master Plan’s effectiveness is fundamentally constrained.”
He stressed that an appropriately calibrated tariff is critical to the success of the Master Plan, describing it as “the enabling condition upon which every other commitment depends”.
Talmage added that the industry appreciates the complexity of tariff-setting processes and acknowledged the role of the International Trade Administration Commission of South Africa in its ongoing investigation into the appropriate level of protection.
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