A sugar mill
The Gledhow sugar mill in Stanger, KwaZulu-Natal, which services more than 245 sugarcane growers, has been placed in business rescue.
Industry body the South African Cane Growers Association (SA Canegrowers) says, noting its grave concern, that the Gledhow sugar mill situation is testament to the sugar industry’s growing distress, and signals the need for urgent intervention to prevent the crisis from deepening.
The growers that serve the Gledhow mill produce more than 1.1-million tons of sugarcane a year, about 6% of the industry’s total output. The growers also employ more than 3 400 workers from surrounding communities.
When JSE-listed sugar manufacturer Tongaat Hulett placed its South African operations into business rescue in October 2022, it caused an acute crisis in the sugar industry, including delays in grower payments and uncertainty about the future of sugar milling operations on the north coast of KwaZulu-Natal.
SA Canegrowers says Gledhow’s supplying growers now face uncertainty as to whether the mill will operate normally as the new season starts on April 1, and whether the mill will be able to pay for sugarcane that is delivered.
The industry body is engaging extensively with the mill’s management, the South Africa Sugar Association and with growers on the way forward, keeping the livelihoods supported by the industry top of mind.