Latest news with #sugarindustry
Zawya
9 hours ago
- Business
- Zawya
South Africa: Agriculture GDP outperforms after surging 15.8% in Q1 2025
South Africa's GDP remained lethargic with an expansion of 0.1% q/q seasonally adjusted (not annualised) but still mildly above market expectations of a contraction. However, agriculture continues to be on the mend following the drought-induced contraction of 8.7% year-on-year in 2024. Agriculture GDP outperformed other sectors after surging by 15.8% quarter-on-quarter, seasonally adjusted, in Q1 of 2025, with the largest contribution to quarterly growth of 0.4 of a percentage point to the positive South Africa GDP growth. This reflects a significant improvement in seasonal conditions that spurred field crops, horticulture, and animal subsectors, which underpinned the Q1 spud in agriculture growth. Field crops rebound with bumper harvest Activity in field crops was robust with the summer crop (maize, soybeans, sunflower, sorghum, groundnuts, and drybeans) harvest rebounding by 15.7% year-on-year to almost 18 million tonnes. This is accompanied by relatively strong commodity values with average prices for South Africa's biggest staple crop, maize, up by 39% and 18% year-on-year, respectively year-on-year for white and yellow varieties in Q1 of 2025. Sugar and horticulture post solid gains An additional component of the field crops, sugar, is forecast to jump 7% year-on-year to 2.1 million tonnes. The horticulture industry also posted good gains with limited production disruptions due to the relatively higher dam levels for irrigation and sustained electricity. This saw good harvests for citrus, table grapes, and vegetables. The wine industry reported an 11% year-on-year growth in wine grape harvest at 1.24m tonnes, according to Vinpro. The livestock industry saw, on average, a 5% advance in meat prices and increased availability, with red meat slaughter (cattle and pigs) up 1.5% year-on-year in Q1 of 2025. Agri exports climb despite global challenges On the export front, quarterly agriculture exports as per Trade Map data rose by 10% year-on-year to a total value of $3.36bn underpinned by higher volumes and prices despite the challenging global environment. The benign inflation and interest rate outlook following a 0.25% cut in May 2025, with a further reduction in the offing later in the year, bodes well for the rebound in consumer demand and expansion in the agriculture sector. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
21-05-2025
- Business
- Zawya
South Africa: Government eyes sugar sector exemption to boost local supply
The Department of Trade, Industry and Competition (DTIC) has published draft regulations proposing a block exemption for South Africa's sugar industry, which would allow producers, retailers, and manufacturers to coordinate on procurement and pricing of locally produced sugar. Proposed policy shift to aid local industry If enacted, the exemption would permit forms of cooperation normally prohibited under the Competition Act, including joint planning and pricing negotiations. The goal, according to the DTIC, is to reduce import reliance, protect rural jobs, and support the long-term sustainability of the industry. The proposal is part of the broader Sugarcane Value Chain Master Plan 2030 — a government-led framework that includes commitments from both public and private sector stakeholders to stabilise and transform the sugar sector. Industry body welcomes move Industry group SA Canegrowers has backed the proposal, saying it would create space for 'inclusive decision-making and sector stability' while enabling discussions that lead to fairer pricing for consumers. The organisation represents over 24,000 small-scale and 1,200 commercial growers, mainly in KwaZulu-Natal and Mpumalanga. In a statement, SA Canegrowers said commercial users such as food and beverage producers are critical to the local sugar value chain. Ensuring a commitment from these buyers to prioritise local sugar would help secure thousands of jobs in farming communities. Ongoing threats to sector viability The sugar industry has faced sustained pressure from cheap sugar imports and the Health Promotion Levy (commonly referred to as the sugar tax). These factors have added to concerns over long-term viability, particularly for smaller producers. As part of the Master Plan process, stakeholders have also explored diversification opportunities into areas such as biofuels and sustainable aviation fuels. According to SA Canegrowers, the draft exemption would allow for necessary coordination among producers and investors to advance these projects without violating competition laws. Next steps The draft regulations were issued earlier this month by Trade and Industry Minister Parks Tau. No implementation date has been confirmed, and the proposal is currently open for public comment. If approved, the exemption would mark a significant shift in how collaboration is handled in the agricultural value chain, potentially setting a precedent for other sectors under pressure. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Times of Oman
16-05-2025
- Business
- Times of Oman
India to close 2024-25 sugar season with comfortable stock of 52-53 lakh tonnes: ISMA
New Delhi: India will close the current sugar marketing season with a closing stock of around 52-53 lakh tonnes, believed to be a comfortable buffer, and it will ensure that the country has a sufficient supply to meet its demand, Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said on Friday. Sugar marketing season in India runs from October to September. The 2024-25 season commenced with an opening stock of 80 lakh tonnes. Considering the projected domestic consumption of 280 lakh tonnes and export estimates of upto 9 lakh tonnes, the closing stock is likely to be around 52-53 lakh tonnes, according to the industry body ISMA. The 2024-25 sugar season is projected to conclude with a net sugar production of approximately 261 to 262 lakh tonnes. This includes 257.44 lakh tonnes produced up to mid-May, along with an estimated 4 to 5 lakh tonnes anticipated from the special crushing season in Tamil Nadu and Karnataka. As per the supplies upto April 30, 2025, approximately 27 lakh tonnes of sugar have been diverted for ethanol production during the current season. An additional 6 to 7 lakh tonnes are expected to be diverted over the remaining season, the industry body said. The industry body has painted an optimistic outlook for the 2025-26 sugar season. "The 2025-26 sugar season is shaping up to be promising, buoyed by several positive developments across key sugar-producing regions," the industry body said on Friday. In the southern states, particularly Maharashtra and Karnataka, sugarcane planting has shown significant improvement, thanks to a favourable southwest monsoon in 2024. "Supported by a strong cane availability, the stage is set for a timely start to the crushing season in October 2025," it said. Adding to this positive momentum are climate forecasts from both the India Meteorological Department (IMD), which predict a normal southwest monsoon in 2025. "This bodes well for crop health and production, strengthening confidence in a robust and productive sugar season ahead," said the industry body. In its pre-monsoon forecast in 2024, India Meteorological Department (IMD) predicted rainfall across the country to be above normal, at 106 per cent of the long-period average. The monsoons are a key indicator that helps analysts gauge the economic outlook of the country's manufacturing and agricultural sectors.
