SA Canegrowers has welcomed the disbursement of R60 million in transformation funding to black and small-scale sugar cane growers through the South African Sugar Association.
- The funding is critical to support growers amid the crisis in the milling sector and as they recover from the financial shocks of the last season.
- A total of R125 million has been budgeted for black and small-scale growers delivering less than 1,800 tons of cane in 2023/24.
- R60 million was paid out in July, with another R50 million to be paid in November and the balance in January 2024.
- R51 million has been budgeted for black growers and joint ventures delivering more than 1,800 tons of cane.
- Small-scale growers were particularly impacted by the default of Tongaat Hulett and Gledhow sugar mills on financial obligations, reducing recoverable prices.
- The funding disbursed will provide critical support to sustain growers amid rising input and financing costs, especially for small-scale growers.
- While Tongaat Hulett’s business rescue process is progressing, it remains to be seen if its sugar cane operations can be saved, which are vital to local economies.