South Africa’s 2026/27 sugarcane milling season is underway, with early deliveries significantly outperforming previous years, highlighting the resilience of the country’s 28 000 growers. Initial industry statistics reveal that raw sugarcane deliveries to mills are tracking 48% ahead of the same period last year.
Almost all of the nation’s processing facilities have commenced operations, with the notable exception of three mills owned by Tongaat Hulett. These remaining operations, which collectively service 18 000 local growers, are expected to open and begin accepting cane in their respective regions within the coming weeks.
“We hope growers supplying the Tongaat Hulett mills, who are beginning the season later than other growing regions, will be able to have a productive and successful season despite the uncertainty surrounding the company,” said Higgins Mdluli, chairperson of SA Canegrowers. “The industry continues to show remarkable resilience even under extremely difficult conditions.”
Navigating cheap sugar imports and liquidation
The robust start to the harvest arrives during a turbulent period for the domestic industry. Tongaat Hulett recently secured R200 million in temporary operational funding from the Industrial Development Corporation (IDC) as stakeholders – including the company’s business rescue practitioners, the Vision consortium, and the IDC – negotiate to avoid liquidation. The ongoing liquidation application is scheduled to return to court on 17 June.
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Compounding this corporate instability is a substantial influx of cheap imported sugar from major global producers like Brazil, Thailand, and India. This foreign supply directly displaces locally grown sugar, costing the domestic industry more than R7 500 for every imported ton.
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The volume of foreign sugar entering South Africa in March of this year reached 16 000 tons, doubling the amount recorded in March 2025. This surge follows one of the worst years on record for imports, which saw 213 000 tons arrive from duty-bearing nations. Current data suggests this damaging pattern will repeat through 2026, piling financial pressure onto both independent growers and milling companies.
SA Canegrowers has warned that South Africa’s current tariff mechanism is outdated and fails to shield local farmers from heavily subsidised international competitors. This artificial suppression of global prices undermines South African producers at home and abroad.
Livelihoods at risk as sugar industry seeks protection
In response, the International Trade Administration Commission of South Africa (ITAC) is reviewing the tariff mechanism, a process initiated by the sugar industry in October 2024 to protect the one million livelihoods currently facing an existential threat.
“We urge both the IDC and ITAC to prioritise the sustainability of the local sugar industry,” Mdluli emphasised. ”Entire rural communities in KwaZulu-Natal and Mpumalanga depend on sugarcane farming for jobs and economic activity, and the industry supports more than a million livelihoods across the value chain.”
Mdluli concluded on a note of determination, “Despite ongoing challenges, growers continue to demonstrate that South Africa can produce sufficient, cost-competitive sugar to meet local demand. We hope the industry’s significant contribution to food security, rural development and the national economy will continue to receive the protection and policy attention it deserves.”
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