The Sugar Industry
An Overview Of The South African Sugar Industry
The South African sugar industry is one of the world’s leading cost competitive producers of high-quality sugar and makes an important contribution to employment, particularly in rural areas, to sustainable development and to the national economy. It is a diverse industry combining the agricultural activities of sugarcane cultivation with the manufacture of raw and refined sugar, syrups, specialised sugars and a range of by-products.
The cane growing sector comprises 25 000 registered sugarcane growers farming in KwaZulu-Natal and Mpumalanga. Sugar is manufactured by six milling companies with 12 sugar mills operating in these cane growing regions. The industry produces an estimated average of 2.2 million tons of sugar per season. At least 70% of this sugar is marketed in the Southern African Customs Union (SACU). The remainder is exported to markets in Africa, Asia and the Middle East.
Sugar Industry Regulations
The Amendments and the Transitional Provisions to the Constitution of the South African Sugar Association and the Sugar Industry Agreement, 2000 were published on 23 June 2020 in a Notice in the Government Gazette No. 43466 by the Minister of Trade, Industry and Competition (dtic). The provisions are in effect from 1 July 2020 until 31 March 2024 unless further extended by the Minister of the dtic.
Sugar And The Economy
The South African sugar industry makes an important contribution to the national economy, given its agricultural and industrial investments, foreign exchange earnings, its high employment, and its linkages with major suppliers, support industries and customers. Direct employment within the sugar industry is approximately 65 000 jobs.
Revenue
Based on the revenue generated through sugar sales in the SACU region as well as world market exports, the South African sugar industry generates an annual estimated average direct income of more than R20 billion, thereby making a large contribution to the economies of KwaZulu-Natal and Mpumalanga. The industry also makes a significant contribution to the country’s economy.
Employment
The sugar industry provides direct employment in cane production and processing, and indirect employment in numerous support industries in the two provinces where sugarcane is grown and processed, namely KwaZulu-Natal and Mpumalanga. The industry creates 65 000 direct and 270 000 indirect jobs. At least one million livelihoods are dependent on the sugarcane growing and milling activities of the industry.
Where to Find Us?
The Map of Operational Areas provides a detailed view of the location of the mills within the South African sugar industry. The map below will give you a view of the expanse of the sugar growing region.
