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Business|Industrial
Business|Industrial
business|industrial

Sugar organisation calls on government to honour local commitments

An image showing a man harvesting sugarcane

Harvesting sugarcane

9th February 2022

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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It is vital that, in this year’s State of the Nation Address, President Cyril Ramaphosa announces action on government’s commitments under the South African Sugarcane Value Chain Masterplan, including that government departments and State entities only procure locally produced sugar, industry organisation SA Canegrowers chairperson Andrew Russell says.

He says last year’s address saw the President encourage the South African government, business and organised labour to buy local. While this was actioned upon by the private sector, which has been supporting the local sugar industry, government seemed to be lagging behind.

“Last year’s call to buy local came as part of the President’s announcement of the priority actions government would take to restore growth in the South African economy and create jobs.

“The President’s second priority was to support a massive increase in local production as part of a localisation drive.

“SA Canegrowers shares the President’s concern for economic recovery, growth and job creation, and we believe in the potential of the Sugarcane Value Chain Masterplan to produce these results. But if it is to succeed, we need action from all signatories of the Masterplan,” emphasises Russell.

He highlights that action commitment one of the Masterplan aims to address the threat of imports to the economy and jobs by committing industry stakeholders to act to restore an initial 150 000 t of sugar demand to the local sugar industry in the first year, with the goal of increasing this to 300 000 t in the third year.

To achieve this, the Masterplan calls on retailers, wholesalers, and industrial users to procure 80% of their sugar locally, with this amount rising to 95% in the third year, and it requires that government promote the use of local sugar by all its departments and State-owned entities, explains Russell.

He mentions that, for its part, SA Canegrowers launched its ‘Home Sweet Home’ campaign in December 2020 to encourage consumers to buy locally produced sugar.

He acclaims that both Proudly SA and the Shoprite Group have joined as partners of the campaign over the past year.

This has included the Shoprite Group prioritising the procurement of locally produced sugar to sell to its customers and introducing ‘Home Sweet Home’ promotional material in sugar aisles in its Shoprite and Checkers stores across the country, notes Russell.

“The support from South African consumers has also been heartening. We are pleased to report that the industry has exceeded the one-year target of restoring 150 000 t of sugar demand. The first year of the Masterplan’s implementation saw more than 200 000 t of sugar demand restored.

“Now it is time to set our sights on the attainment of the three-year target. But to do this, the President must ensure that government honours its commitments too,” says Russell.

He highlights that the recovery of the sugar industry is crucial for the economy in general, but also particularly for rural communities in KwaZulu-Natal and Mpumalanga, where it is a crucial source of employment.

The industry has more than 22 000 growers, of which the majority are small-scale growers, who directly employ more than 65 000 workers and create 270 000 indirect jobs, Russell expands.

He says that, in total, more than one-million livelihoods depend on the sugar industry.

“In the aftermath of the economic devastation caused by the Covid-19 pandemic and the unrest in July 2021, it is more important than ever that we preserve these vital livelihoods,” Russell emphasises. 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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