South Africa Canegrowers warns of job losses due to subsidised sugar imports
SA Canegrowers has warned that the local sugar industry faces mounting threats from cheap sugar imports, placing thousands of jobs at risk and undermining rural livelihoods.
The organisation raised the alarm this week following its Annual General Meeting in Umhlanga, KwaZulu-Natal, where Mpumalanga farmer Higgins Mdluli was re-elected as chairperson for a one-year term.
Industry under pressure
Mdluli, who farms sugarcane in Mpumalanga, said he was honoured to continue leading the organisation at a pivotal time for the sector.
'It is an honour to be re-elected to serve as chair of the SA Canegrowers board at such a critical time for our industry. I look forward to continue working closely with our growers, partners, and stakeholders to build a sustainable, inclusive, and resilient sugar sector that supports rural livelihoods and drives agricultural and economic growth in South Africa,' said Mdluli.
However, he cautioned that the industry is increasingly vulnerable due to unfair global trade practices and other pressures such as mill closures, unpredictable weather, and the sugar tax.
Unfair competition from imports
SA Canegrowers has flagged growing concerns about imported sugar entering South Africa at prices below both the global market rate and local production costs. Mdluli attributed this to sugar dumping and state subsidies from other countries.
'Foreign sugar is currently entering South Africa at prices below the cost of production and below the global sugar price, owing to some foreign governments either heavily subsidising their industries or countries dumping their excess sugar at a loss,' he said.
For every tonne of imported sugar, local growers lose an estimated R6,000 in income, with job losses across the value chain inevitable if the trend continues.
Call for sector support
Rural communities in KwaZulu-Natal and Mpumalanga, which rely heavily on sugarcane farming for employment, remain particularly at risk.
'Local canegrowers need greater protection from unfair sugar dumping and subsidised cheap imports,' says Mdluli. 'We call on all social partners, government, industry players, and commercial end-users and consumers, to stand with South African sugarcane growers. Our growers contribute to a thriving, inclusive agricultural economy, but to continue to do so, we need to be able to compete on a level playing field.'
The organisation reaffirmed its support for the upcoming revision of the Sugarcane Value Chain Master Plan 2030, aimed at ensuring long-term stability for the sector.
Mdluli will be supported by vice-chairpersons Andrew Russell and Kurt Stock, with Rex Talmage appointed independent vice-chair of the South African Sugar Association.
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