Sugarcane – along with maize, wheat, rice, sorghum and many forage crops – is a member of the grass family Poaceae, an economically important seed plant family.
Sugarcane is cultivated in tropical and subtropical climates in areas with a plentiful supply of water. In the South African sugarcane regions, low rainfall since November 2014 has been a problem. Approximately 800mm per annum is needed for a successful crop.
There is a vast global market for sugarcane derivatives.
- These are prevalent in the modern diet both as raw and refined sugar, syrups, specialised sugars by-products and co-products.
- Molasses is used in animal feed, baking and the making of ethanol and rum.
- Bagasse, used as a fuel for boilers and kilns; the production of paper, paperboard products, bioplastics, agricultural mulch and as a raw material for the production of chemicals. Uses of the dried filtercake include utilisation as an animal feed supplement, fertiliser and as a source of sugarcane wax.
International business environment
Sugarcane producers across the world are moving away from a sugar-only output to include energy (electricity and biofuels), and other biobased products (e.g. bioplastics, biochemicals). Global evidence is that it is the launching of government programmes that has led to success in these efforts (SASA, 2019).
- Top growers: Brazil, India, EU, Thailand (SA is in position 15) (USDA, 2020)
- Top exporters: Brazil, Thailand, India, Australia and Guatemala (USDA, 2020).
- Top importers: Indonesia, China, US, Bangladesh and Algeria (USDA, 2020)
- World Association of Beet and Cane Growers (WABCG) www.wabcg.org
- Find the USDA Foreign Agricultural Service’s Sugar: World Markets and Trade reports at https://apps.fas.usda.gov/psdonline/circulars/sugar.pdf
- Find the sugar chapter in the 2020-2029 Organisation for Economic Co-operation and Development (OECD)–Food and Agriculture Organisation (FAO) Agricultural Outlook.
- Sugarcane is one of the crops from which bioplastic is made. The global bioplastics market size was valued at USD 8.3 billion in 2019 and is expected to register a compound annual growth rate (CAGR) of 16.1% from 2020 to 2027 (Grand View Research, 2020).
- The SADC Secretariat and German Development Corporation’s Profiling of the Regional Agro-Processing Value Chains in the SADC Region (March 2019) can be found at https://agbiz.co.za/uploads/AgbizNews19/190322_SADC%20Agro-Processing%20Draft%20Final%20Report.pdf. It includes a look at sugar.
- Read the latest SADC Sugar Digest at https://shukela.co.za.
- Find out about the publication Good Management Practices for the Sugar Cane Industry at www.ifc.org.
- Find the Fairtrade page on sugar at www.fairtrade.net/product/sugar.
- Read about how WWF is involved with sugarcane at www.worldwildlife.org/industries/sugarcane
Local business environment
Historically, sugarcane has been the second largest South African field crop by gross value, surpassed only by maize. Sugarcane is grown in KwaZulu-Natal and Mpumalanga, where it is a strategic crop.
The sugar industry creates around 85 000 direct jobs. Indirect employment is estimated at 350 000 jobs. 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. Approximately one million people, more than 2% of South Africa’s population, depend on the sugar industry for a living.
The industry has lost 20.6 percent of its cane area since 2000 though, stabilising at around 360 000 hectares since 2016 but with further contraction expected (BFAP, 2020). Pressure on sugarcane farmers derives from:
- long-term uncertainties (weather, land ownership),
- a distorted world price arising from surpluses from subsidised production in large cane producing countries,
- an increase of SACU tariff-free exports into the SA market, and
- the implementation of the sugar tax.
Deteriorating conditions motivated the development of the South African Sugar Masterplan (see “National strategy and government contact” heading).
Farmers are opting for macadamias, bananas, citrus and avocados. These are high-value, capital-intensive crops and so it is more than likely that these hectares are lost to sugarcane for a long time to come (BFAP, 2019).
The industry has identified four areas of diversification – cogeneration, biofuels, beneficiation of agricultural residues such as biogas and biobased products.
- Biofuels – implementation of greenfield and brownfield fuel ethanol projects in the SA sugar industry
- Cogeneration – operationalise sugarcane cogeneration independent power producers as part of the energy mix in South Africa
- Beneficiation of agricultural residues such as biogas – commercialisation of biogas plants on a range of biogas plants
- Biobased products – biobased niche products from sugarcane such as bioplastics and biochemical.
All four diversification areas aim to harness the full value of the sugarcane stalk producing sugarcane-based products which have already been manufactured in other parts of the African continent and the world.
Source: South African Sugar Industry Directory 2019/2020
- The annual South African Sugar Industry Directory is an invaluable source of information, statistics and for contacts within this sector; find it at www.sasugarindustrydirectory.co.za.
- The Bureau for Food and Agricultural Policy (BFAP) Baseline Agricultural Outlook includes a section which looks at sugarcane. Find the latest Baseline at www.bfap.co.za.
- The US Department of Agriculture Foreign Agricultural Service (FAS) periodically covers the South African and eSwatini sugar industries in GAINS (Global Agricultural Information Network) reports. Find these reports at https://gain.fas.usda.gov.
- Find the latest Sugar Market Value Chain Profile on the Directorate Marketing pages on the Department of Agriculture, Land Reform and Rural Development website www.dalrrd.gov.za.
For the newcomer
The South African Sugarcane Research Institute (SASRI)’s extension service provides the essential link between SASRI researchers and farmers through consultation and feedback.
SASRI Mount Edgecombe
- Extension & Biosecurity Manager 031 508 7492 / 083 561 2781
rowan.stranack [at] sugar.org.za
- Extension Manager: small scale and land reform growers 031 508 7491 082 654 3148 Thulani.masondo [at] sugar.org.za
Small scale Growers (SSG) and Land Reform Growers (LRG)
- Extension Specialist: Small-scale Growers Zululand South (SSG/LRG) 082 613 8819 Sifiso.hlela [at] sugar.org.za
- Extension Specialist: Midlands and North Coast (SSG) 031 328 9301 / 082 655 0356 william.gillespie [at] sugar.org.za
- Extension Specialist: South Coast (SSG) 039 975 1149 / 083 272 3400
bongiwe.chonco [at] sugar.org.za
- Extension Specialist: Pongola (SSG) 034 413 1215 / 083 655 5012
Norman.mkhabela [at] sugar.org.za
Regional Extension – South Coast
- Extension Specialist: Sezela 039 975 1377 / 082 655 0387
Joe.nkala [at] sugar.org.za
- Extension Specialist: Umzimkulu 039 682 1822 / 082 653 3151
buhle.khomo [at] sugar.org.za
Regional Extension – Midlands
- Extension Specialist: Midlands South 031 781 2001 / 082 654 3546
Paul.botha [at] sugar.org.za
- Extension Specialist: Midlands North 033 503 1818 / 082 654 3549
David.wilkinson [at] sugar.org.za
Regional Extension – North Coast
- Extension Specialist: Maidstone/Darnall 032 947 1410 / 082 655 0358
patrick.ngcobo [at] sugar.org.za
- Extension Specialist: North Coast 032 947 1410 / 082 653 3144
Adrean.naude [at] sugar.org.za
Regional Extension – Zululand South
- Extension Specialist Amatikulu and Entumeni 035 337 1593 / 082 653 3147 gary.lagerwall [at] sugar.org.za
Regional Extension – Zululand North
- Extension Specialist: Umfolozi 035 550 0106
- Extension Specialist: Felixton 035 772 5871 / 082 653 3150
Tshifhiwa.radzilani [at] sugar.org.za
Regional Extension – Irrigated North
- Extension Specialist: Pongola 034 413 2120
- Extension Specialist: Komatipoort 013 723 4177 / 083 655 5011
marius.adendorff [at] sugar.org.za
- Biosecurity Officer 013 790 0356 / 083 335 3846
trumpelmannk [at] sugar.org.za
The South African Cane Growers’ Association provides technical skills training for new and emerging cane growers, accounts and financial management workshops, regional economic advisors, a grower support service officer and access to a special VAT and diesel dispensation for small-scale growers.
The South African Farmers Development Association (SAFDA) provides training, but also has fertiliser, logistics, diesel and farm management initiatives as well as grower support staff to benefit growers. Find contact details for agricultural managers, district co-ordinators and grower support officers at https://sa-fda.org.za.
The milling companies also provide extensive service in support of the cane-growing operations of small- medium- and large-scale black farmers.
National strategy and government contact
- Worsening conditions in the sugar industry led to the development of the South African Sugar Masterplan, with all partners (the sugar industry, labour, government, retailers and wholesalers, and industrial sugar users) committing to a phased approach, with Phase 1 running over the next three years i.e. 2020-2022. For a closer look at this, see the BFAP Baseline 2020-2029 at www.bfap.co.za.
- Read “Government Gazettes Amendments to the Regulations Governing the South African Sugar Industry” (June 23, 2020), a media statement announcing the Masterplan, on the Department of Trade, Industry and Competition website.
- Sugarcane is an important crop for South Africa as it has both high-growth-potential AND is labour intensive (Sihlobo, 2018).
- In the Industrial Policy Action Plan (IPAP) 2018/19 – 2020/21, sugar featured in the Key Action Programmes.
- Read about the tax at www.sars.gov.za/ClientSegments/Customs-Excise/Excise/Pages/Sugary-Beverages-Levy.aspx.
Sugar and renewable energy
Globally, sugarcane industries have responded to the need for renewable energy, by diversifying from being producers of sugar to sugar and energy.
The biomass called bagasse, produced during the processing of sugarcane, can be used to generate steam and electricity. Sugar mills in South Africa already do this for their own energy needs. They have the capacity to inject significant amounts of surplus power into the national grid, which would make a significant contribution to green and renewable energy when this does become a priority for government.
- South African Sugar Association (SASA) Tel: 031 508 7000 www.sasa.org.za
- South African Cane Growers’ Association (CANEGROWERS) Tel: 031 508 7200 www.sacanegrowers.co.za
- South African Farmers Development Association represents small-scale and land reform farmers within the sugar industry. Visit http://sa-fda.org.za.
- South African Sugar Technologists Association (SASTA) Tel: 031 508 7543 www.sasta.co.za
- South African Sugar Industry Agronomists Association Tel: 031 508 7403 https://sasri.org.za/sasiaa
- National Bargaining Council for the Sugar Manufacturing and Refining Industry Tel: 031 508 7331/2
- Sugar Manufacturing and Refining Employers Association Tel: 031 508 7300
Also of relevance is Association of SA Sugar Importers (Asasi) and the Beverage Association of South Africa (BEVSA) (see www.bevsa.co.za) and the Ethanol Producers Association of Southern Africa (EPASA) (see www.epasa.org.za).
Training and research
- AgriSETA Tel: 012 301 5600 www.agriseta.co.za Find details of the National Certificate: Sugar Industry Technical Maintenance, National Certificate: Sugar Manufacturing and Refining Technical Maintenance, National Certificate: Sugar Processing and National Certificate: Sugar Technology under “Skills Delivery”.
- South African Sugarcane Research Institute (SASRI) Tel: 031 508 7400 https://sasri.org.za
- Shukela Training Centre (STC) Tel: 031 508 7700 www.sasa.org.za
- Sugar Milling Research Institute (SMRI) Tel: 031 273 1300 www.smri.org
Additional details to what is listed below are provided in the South African Sugar Industry Directory at www.sasugarindustrydirectory.co.za.
- Gledhow Tel: 032 437 4400
- Illovo Sugar Limited Tel: 031 508 4300 www.illovosugar.com
Eston Mill – 031 781 8300
Noodsberg Mill – 033 502 9500
Sezela Mill – 039 975 8000
Umzimkulu Mill – 039 682 4202
- Tongaat Hulett Sugar Limited Tel: 032 439 4316 / 000 www.huletts.co.za
Voermol Feeds –032 439 5856
Agricultural operations – 032 438 3500
Amatikulu Mill – 035 331 9000
Felixton Mill – 035 791 5000
Darnall Mill – 032 439 9111
Maidstone Mill – 032 439 5511
- RCL Foods Sugar & Milling
Tel: 031 242 8600
Komati Mill – 013 723 4860
Malalane Mill – 013 791 1000
Pongola Mill – 034 413 8100
- UCL Company Limited Tel: 033 501 1600 http://uclweb.co.za
- Umfolozi Sugar Mill (Pty) Ltd Tel: 035 550 7700 www.umfolozisugarmill.co.za
Cane Testing Services (CTS) Tel: 031 508 7145
- Regional Managers: (i) North: 031 508 7148 (ii) South: 031 508 7142
The Cane Testing Service (CTS) provides a specialist service under contract to individual Mill Group Boards to determine the quality of individual grower cane deliveries to the mill for cane payment purposes. See www.sasa.org.za for details of the branches.
Grocane Fire Insurance Co-op 1998 Limited Tel: 031 508 7161
WOMOBA Innovative Sustainability Tel: 031 262 0656 www.womoba.co.za Womoba is a subsidiary of the SA Canegrowers Association and is involved with developing sugarcane by-products like biogas, ethanol and juice.
Websites and publications
Visit the websites listed earlier on this page.
- The South African Sugar Industry Directory is an invaluable source of information, statistics and for contacts within this sector; find it at www.sasugarindustrydirectory.co.za. SASA has other publications available which describe in full the diverse aspects of the sugar industry.
- Books, technical guides, newsletters and manuals are available from the South African Sugarcane Research Institute (SASRI). Find these on their website, https://sasri.org.za.
- Grower notes on sugarcane are available on the Department of Agriculture, Land Reform and Rural Development website www.dalrrd.gov.za (look under “Resource centre”).
- Available from the ARC-Agricultural Engineering (ARC-AE) is the booklet “Agro-processing of Industrial Crops (chicory, coffee, sugar cane, tea)”. Visit www.arc.agric.za or call 012 842 4017.
- The International Finance Corporation (IFC)/Agbiz report (December 2019) on water efficiency in the agri-processing sector includes a look at sugarcane processing. Find it at https://agbiz.co.za/uploads/images/sponsors/191213_Agri-processing%20Sector%20in%20South%20Africa%2011.12.19%20Single%20pages.pdf
- Find the Nation in Conversation overview of the sugar industry (March 2017) on YouTube.
- Find the SA Farmers Development Association (SAFDA) presentation to parliament in 2017 at www.thedti.gov.za/parliament/2017/SAFDA.pdf.
- Find research done by the National Agricultural Marketing Council (NAMC) on sugar, including alternative uses of sugar. Go to www.namc.co.za.
- The NAMC TradeProbe 83 (November 2020) includes “Overview of trade in the sugar industry”.
- ANA Reporter. 2020, November 17. “SA canegrowers welcome signing of landmark sugar masterplan”. Business Report. Available at www.iol.co.za/business-report/economy/sa-canegrowers-welcome-signing-of-landmark-sugar-masterplan-c04c1c8e-5558-5c54-a364-307fb058f9a8
- Masiwa D. 2019, October 4. “Mzansi’s first biodegradable cup with agricultural roots”. Food for Mzansi. Available at www.foodformzansi.co.za/mzansis-first-biodegradable-cup-with-agricultural-roots/
- Parliamentary Communcation Services. 2019, September 5. “Committee hears that protectionist strategy for the sugar industry needs to be phased out”. Polity. Available at www.polity.org.za/article/committee-hears-that-protectionist-strategy-for-the-sugar-industry-needs-to-be-phased-out-2019-09-05
- Reporter. 2019, February 15. “Parly steps up efforts to buoy sugar industry”. SA News. Available at www.sanews.gov.za/south-africa/parly-steps-efforts-buoy-sugar-industry
- Mkentane, L. 2019, February 12. “Sugar cane farmers call for intervention”. The Mercury. Available at www.kwanalu.co.za/sugar-cane-farmers-call-for-intervention
- 702. 2018, December 3. “SA company makes biodegradable sugar cane bottles to replace plastic”. 702. Avalable at www.702.co.za/articles/329366/sa-company-makes-biodegradable-sugar-cane-bottles-to-replace-plastic
- Phillips, L. 2018, February 7. “‘Sin tax’ for sugar will cause job losses – SASA”. Farmer’s Weekly. Available at www.farmersweekly.co.za/agri-news/south-africa/sin-tax-sugar-will-cause-job-losses-sasa
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