Steenhuisen urges action to save sugar sector

South Africa’s sugar industry is facing a critical moment, and the Minister of Agriculture, John Steenhuisen, has called for urgent action to prevent serious disruption ahead of the April crushing season.

The crisis follows the liquidation of Tongaat Hulett, which has created uncertainty around the continued operation of several major sugar mills.

The Department of Agriculture has been in discussions with industry stakeholders and has been informed that unless the current funding deadlock is resolved without delay, growers will not be able to deliver their cane for processing. Should the mills fail to open, production would grind to a halt, placing thousands of livelihoods at risk.

Around 15 500 growers depend directly on these mills to process their harvest. Beyond the farms, between 35 000 and 40 000 jobs are tied to the wider supply chain connected to the sugar industry. For many rural communities, the mills are not just processing facilities but economic lifelines that support families, small businesses and local services.

Steenhuisen said, “This is not a theoretical risk, it is an immediate economic threat to rural communities. If the mills do not open, farmers cannot harvest, workers cannot earn an income, and entire local economies will stall. The longer uncertainty persists, the greater the damage becomes.”

The Minister stressed that agriculture operates according to natural cycles that cannot be postponed. Sugar cane must be harvested and processed within strict timeframes. Any delay caused by financial or legal disputes could result in heavy losses that ripple across the sector.

“Government’s concern is simple: the crop cannot wait. Agricultural production works on biological timelines, not legal or financial ones. An intervention that unlocks funding and restores operational certainty is urgently required to protect both production and jobs.”

The Department of Agriculture is working closely with other government departments and financial stakeholders to find a practical solution. The aim is to preserve production capacity, protect growers and workers, and avoid lasting damage to the industry.

Steenhuisen also highlighted the broader importance of the sugar sector. It plays a significant role in rural economies and contributes to national food value chains. Allowing production to collapse would not only harm farmers and mill workers but also have wider economic and social consequences.

“Our objective is not to intervene in commercial negotiations, but to ensure that a viable path forward exists so that growers can deliver cane, mills can operate, and workers can earn an income. The immediate priority must be keeping the season alive" added Steenhuisen.

The Ministry has committed to closely monitoring the situation and remains ready to support continued engagement to secure stability and protect the future of the sugar industry.