Diversification of South Africa’s sugarcane industry is crucial as the sector navigates a critical phase with Tongaat Hulett’s closure threatening jobs, livelihoods and grower stability.
The government has raised concerns with the closure, which has the potential of crippling the economy of KwaZulu-Natal, especially towns that are solely dependent on the sugarcane commodity.
Minister of agriculture, John Steenhuisen, said, “This is not a theoretical risk; it is an immediate economic threat to rural communities. If the mills do not open, farmers cannot harvest, workers cannot earn an income, and entire local economies will stall. The longer uncertainty persists, the greater the damage becomes.”
However, by investing in bioenergy, bio-products and value-added crops, the industry can build resilience against market volatility and economic shocks.
The new frontier for SA sugarcane
From powering the national grid to crafting award-winning spirits and packing export-quality fruit, South African sugarcane farmers are moving beyond the sugar bowl to unlock the full economic potential of the cane stalk.
For generations, the humble sugarcane stalk was synonymous with one thing: white gold. However, as the industry evolves, farmers are pivoting. On a recent tour hosted by the South African Sugar Association (SASA) in KwaZulu-Natal (KZN), it became clear that the era of the single-product farmer is over.
“We are in an era whereby we are unleashing the full potential of the cane stalk,” said Cedric Mboyisa, communications manager at SASA.
KZN growers, from industrial operations to small-scale distilleries, are finding that the “chewing industry” can produce far more than just a sweetener.
At UCL Company in Dalton, near Tongaat, the focus is on energy self-sufficiency. Clinton Vermeulen, general manager of operations at UCL, explained that the site functions as a model of harmony, where the sugar factory provides the power and steam required to run their sawmill, wattle factory, and animal feed production.
The electricity is generated through a process of burning bagasse, the fibrous residue left over after the juice is squeezed from the sugarcane. This biomass is fed into the mill’s high-pressure boilers to create steam, which then drives turbines to produce electricity. By generating its own power directly from this sugarcane byproduct, the site remains highly competitive.
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“We are more competitive than other packhouses because we do not have to buy power. The traditional way of trying to diversify the sugar industry was to derive more different products from sugar and to use those sugar products to make other products,” he said.
Vermuelen explained that this internal power supply also fuels their advanced avocado packaging plant, which now handles an output roughly similar to the rest of KZN combined. Beyond meeting its own industrial needs, UCL also contributes to the national grid by selling excess electricity back to Eskom.
From farm to bottle
The drive for diversification is also transforming the craft spirits sector. Brad O’Neill, head distiller at Sugar Baron Craft Distillery and steward of Seafield Farm, has dedicated a portion of his 294 hectares of sugarcane to a premium farm-to-bottle rum operation.
The process involves cane being cut and pressed, with the juice going directly into fermentation tanks. After a couple of days, the liquid is distilled before being rested in glass demijohns for six to 12 weeks.
From there, some of the rum is bottled for their flagship White Rum, while some is barrelled for ageing. O’Neill has also expanded into the confectionery market, launching a range of rum-infused fudges and sauces, often highlighting the natural benefits of his raw materials.
“It is [juice from the sugarcane] low GI, low glycemic index, so it doesn’t spike your blood sugar, especially if you’re diabetic,” he said.
For him, the use of the cane stalk does not end there; to maintain a circular economy, the leftover cane fibre is either composted to return nutrients to the soil or burnt to create steam for the distillery boilers.
This spirit of exploration is shared by PLAS farmer Gugulethu Musuku, who is set to enter the retail market this year. What began nine years ago as a “hobby mistake” with fermented guavas led Musuku to research and develop her own spirits.
After identifying a gap in the local market, she expanded her production from rum into gin, following a similar value-added path to O’Neill.
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