SOUTH African Sugarcane Association raises concerns over the sharp rise in sugar imports from Brazil into South Africa.
The association warned that the surge threatens local jobs and the sustainability of the domestic industry.
Speaking at a stakeholder engagement in Malelane, Mpumalanga on Tuesday, 4 November, executive director, Sifiso Mhlaba said sugar imports have increased by more than 400% this season compared to the previous one.
The meeting focused on the role of small-scale growers in the economy and strategies to boost job creation in the province.
"Mpumalanga is a critical producer of sugarcane, contributing about 20% of the country's production, while KZN produces the remaining 80%. One of our major challenges is the rise in imports, primarily from Brazil, which have increased by over 400% this season," said Mhlaba.
He explained that for every ton of sugar imported, the local industry is forced to export more sugar at a loss of about R7 000 per ton.
"This situation has a serious impact on the lives and livelihoods that depend on the South African sugar industry," he said.
Mhlaba added that the association has submitted an application to ANTEP to increase protective tariffs against subsidised sugar imports.
"For every ton that comes in, we have to export at a loss. That puts not only workers at risk but also farmers, mills and everyone in the value chain. We saw similar impacts in 2018 when more than 500 000 tons of imports entered the country," he said.
Since 2018, the industry's direct employment has dropped from 85 000 to 65 000 jobs. Mhlaba called on government to intervene to help safeguard livelihoods and protect the remaining jobs.
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"The job losses are partly linked to imports, but also to the Health Promotion Levy introduced in 2018," he added.
Mpumalanga Premier, Mandla Ndlovu, who attended the meeting, emphasised government's commitment to protecting the sugarcane sector.
"It is important for government to pay special attention to sugarcane growers because this industry plays a vital role in our economy. President Cyril Ramaphosa and national leadership are closely monitoring the issue of tariffs. Teams have been established to engage with the USA and other key trading partners," said Ndlovu.
Ndlovu noted that the industry supports about 270 000 indirect jobs. "We must protect these jobs while creating opportunities for new entrants into sugarcane farming. Our priority is to safeguard existing growers and ensure the industry's growth," he said.
