The recent implementation of the Sugar Master Plan appears to be bearing fruit, with the industry showing signs of growth – but Minister of Trade, Industry and Competition, Ebrahim Patel, has warned that it’s critical that it improves its competitiveness and ability to successfully export to new markets.
Patel met virtually with farmers, millers, retailers, food producers and trade unions last Friday to provide an update on progress in the implementation of the plan.
The report indicated a 15% growth in local sugar sales in an industry that was previously described as facing crisis conditions. It saw increases in purchases of sugar from both the retail and industrial sectors, which include soft-drink manufacturers.
“The partnership with workers can be strengthened further. Work on new markets and industrial applications can provide a long-term growth drive for the sector. In this context, the development of a biofuels industry is now being considered,” Patel said.
He pointed to the recently concluded agreement with Coca-Cola Beverages South Africa which had committed to buy more sugar from small-scale farmers, as an example of what could be done to broaden the base of the sector.
The Master Plan is one of the levers of the reimagined industrial strategy and is the result of a process of extensive engagement amongst industry stakeholders and social partners, particularly small and large cane growers, millers and refiners, retailers, industrial users of sugar in production of sugar-derived products, as well as workers and government.
As part of the Master Plan, industrial users and retailers have agreed to minimum off-take of sugar for a period of three years; with at least 80% of sugar consumption to come from the local sugar industry - increasing to 95% by 2023. During this period, the sugar industry has agreed to price restraint, and to begin a process of managed restructuring for the industry to help diversify revenue source
Data made available at the meeting showed a 25% reduction in deep-sea imports for the twelve months since April 2020.
