Monday, September 7, 2026
SUBSCRIBE
22 GLOBAL MEDIA AWARDS
Food For Mzansi
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
Food For Mzansi
No Result
View All Result
in News

Gledhow Sugar ‘confident’ about financial future

South Africa's sugar industry has gone through a torrid time with a few milling companies going into business rescue, Gledhow Sugar Company being one of them. But it's not all doom and gloom with several diversified solutions out there, says the executive director of the South Africa Sugar Association, Tix Trikam

by Sinenhlanhla Mncwango
17th April 2023
Gledhow Sugar 'confident' about financial future

SA Canegrowers call on government to deal with sugar imports. Photo: Supplied/Food For Mzansi

Share on FacebookShare on TwitterShare on WhatsApp

Management at the Gledhow Sugar Company said it is making good progress in securing the financial future of the company after it went into voluntary business rescue earlier this year. In the meantime, the over 245 growers supplying the company still face an uncertain future.

According to Gledhow CEO Andrew Francis, Gledhow has settled into the business rescue process and is making progress towards putting a business plan together that aims to create a sustainable future for the business.

“We are making good progress in securing new investment and loan funding for the business,” Francis told Food For Mzansi.

The company’s board of directors announced that it has passed a resolution to voluntarily commence business rescue proceedings. The decision was made at a meeting held on Friday, 10 March 2023.

Several challenges over the years

Gledhow, which comprises Ushukela Milling, Illovo Sugar and Sappi Southern Africa Limited, has been facing significant challenges in recent years.

While thousands of livelihoods hang in the balance, Francis said no permanent staff members of Gledhow have lost their jobs.

“We are very hopeful that, once the business plan is approved and implemented, there will be no need for any permanent job losses at Gledhow.”

Francis said so far production at the mill has not been affected. Gledhow commenced its crushing season on Wednesday, 8 March. “So we were already in production prior to going into business rescue. Production has continued and has not been materially affected by the business rescue process to date.”

Tied to the hip

In the meantime, the South African Farmers Development Association (Safda) remains concerned about the impact on farmers who supply sugarcane to Gledhow Mill, which services more than 245 sugarcane growers.

According to Safda CEO Siyabonga Madlala, the possible failure of this business would be a double blow for small-scale farmers as farmers in the district will have nowhere to take their sugarcane.

Gledhow Sugar 'confident' about financial future
The CEO of the South African Farmers Development Association (Safda), Dr Siyabonga Madlala. Photo: Supplied/Safda

This is as another sugar mill nearby – the Darnall Mill owned by Tongaat Hulett – closed down two seasons ago, creating a sugar milling capacity shortage on the KwaZulu-Natal north coast.

“The painful part, though, is that the sugar industry is tied at the hip. What happens to your neighbour affects you too because we share proceeds. If someone does not contribute to our pot, then we all suffer. If Gledhow and Tongaat are under challenges, we also suffer a lot,” said Madlala.

He remains concerned about the small-scale farmers who commonly farm on communal land and must drive long distances to transport their produce.

“This is a challenge for small-scale farmers because fuel is expensive, especially when it comes to transporting raw sugar cane. They depend on contractors and contractors are not cheap because diesel is expensive,” he said.

“The problem is that two big milling companies have gone under business rescue and that makes us unsure of the milling capacity in the future. One of them is Tongaat Hullet and they run three mills. This is a challenge to the sugar industry. It is a bit messy right now. There is a lot of movement, and we don’t know where it will end.”

Sugar cane farmers share concerns

KwaZulu-Natal sugarcane farmer Lee Hlubi said her challenge lies in not knowing whether her miller will pay when payments are due.

“As a farmer, you’re notified last that payments won’t happen when expected. This has led to negative credit status with banks and other supporting service providers,” she said.

“The worst is labour. They don’t always trust us black farmers because we don’t have reserves to go to. We’re starting to harvest but we’re not sure whether payments will be honoured in time,” she said.

Bright future ahead

SA Canegrowers CEO Dr Thomas Funke said there is a bright future for the industry in a new generation of products like sustainable aviation fuels, but the industry has significant challenges to overcome to reposition itself for future growth.

 “What is clear is that the crisis has been coming for a long time, which is why SA Canegrowers has argued against policies like the health promotion levy, which only exacerbated the millers’ crisis,“ he said pointing to the sugar tax.

Growers have lost out on revenue every year with a growing amount of sugarcane being carried over every season, Funke told Food For Mzansi.

Gledhow Sugar 'confident' about financial future
Thomas Funke, SA Canegrowers CEO. Photo: Supplied/Food For Mzansi

“This crisis has reached its climax with the entry of two millers into business rescue over the past six months.”

Grower’s challenges in the province have been exacerbated by arson attacks during the July 2021 unrest, and devastating floods in 2022 and 2023.

In addition, the Russia-Ukraine War has resulted in significant increases in essential supply costs such as coal and other operational inputs.

El Niño adds to the pressure

“Swinging to the opposite extreme, we now expect the El Niño system to bring record heat and drought at a time when load shedding has made irrigation that much more difficult for growers. South Africa’s canegrowers are therefore facing challenges on many fronts,” Funke said.

It’s not all doom and gloom, said the executive director of the South Africa Sugar Association, Trix Trikam. According to him, diversified solutions defined in the Sugarcane Value Chain Master Plan are what the industry should be focusing on.

Trikam explained the master plan process had identified ten product diversification opportunities. The industry can be one of the top contributors to advancing the goals outlined in the region’s National Bio-economy Strategy.

“Government must ensure there is a conducive policy and legislative framework to enable the realisation of the objective of implementation (with regards to diversification).

“Also importantly, is for the government to see to it that there are sufficient subsidies in place to get the project(s) off the ground and incentives to reward capital investment,” said Trikam.

ALSO READ: Photo story: ‘Farming makes me get out of bed’

Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.

Sinenhlanhla Mncwango

Sinenhlanhla Mncwango is from a small town in KZN. She is a Journalism Honours graduate from the University of Johannesburg and has experience in online news, sports journalism and radio. She enjoys a good game of cricket and hockey and is interested in learning different languages.

Tags: SA Canegrowers AssociationSouth Africa Sugar AssociationSugar industry
Farmers rethink water use as shortages threaten food production
News

Farmers rethink water use as shortages threaten food production

by Vateka Halile
5th September 2026

What happens when the taps run dry? Farmers know the answer all too well. Experts and farmers at the Water...

Read moreDetails
Honoured roots: A father’s legacy, a daughter’s farming dream

Honoured roots: A father’s legacy, a daughter’s farming dream

4th September 2026
Gauteng farmers urged to harness massive urban market

Gauteng farmers urged to harness massive urban market

4th September 2026
ONCE-OFF USE; DO NOT REPUBLISH

Foot-and-mouth crisis hits SA dairy industry with R1-billion loss

4th September 2026
Tough times, hardy cattle: Why Mzansi farmers are choosing Nguni

Tough times, hardy cattle: Why Mzansi farmers are choosing Nguni

3rd September 2026

Aucamp outlines strategy for biosecurity, trade, and infrastructure

Potato turning point ahead as onions double in price year-on-year

Tough times, hardy cattle: Why Mzansi farmers are choosing Nguni

Community-led farms boost food security and incomes in Limpopo

Government hikes sugar import price, but industry warns of gap

Join Food For Mzansi's WhatsApp channel for the latest updates!

JOIN NOW!
Next Post
SA’s litchi queen earns PhD after 20 years

SA’s litchi queen earns PhD after 20 years

THE NEW FACE OF SOUTH AFRICAN AGRICULTURE

With 21 global awards in the first six years of its existence, Food For Mzansi is much more than an agriculture publication. It is a movement, unashamedly saluting the unsung heroes of South African agriculture. We believe in the power of agriculture to promote nation building and social cohesion by telling stories that are often overlooked by broader society.

Young farmers need structured opportunities, not just open doors

BenicaTheFarmer: The nurse who built an agricultural empire

Rural safety under fire as stock theft and farm violence persist

This week’s agri events: 07–11 September

Tiger Brands CEO calls for stronger food value chain

Plant, pick, protect: The rising potential of urban foraging in SA

  • Awards & Global Impact
  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

  • Awards & Global Impact
  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Chat Options

I'm Lerato, your AI assistant!
No Result
View All Result
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought

Copyright © 2024 Food for Mzansi

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.