Operating profit for local sugar producer, Illovo Sugar, dropped by 37% for the first half of the 2015/216 financial year ended September 30, as the drought in sub-Saharan Africa continues.
This fall follows Tongaat Hulett’s announcement earlier this month of a 14% first-half profit fall.
Stress from the environment has increased crop vulnerability to pests and diseases, according to a statement posted on Illovo’s website.
Mohammed Abdool-Samad, Illovo group finance director, pointed out that recent recovery in world sugar prices was helping to mitigate the supply deficit, but a recovery in next year’s yield was dependent on summer rainfall returning to normal levels.
