Agriculture Minister John Steenhuisen has raised serious concern over the escalating crisis facing the sugar industry following the liquidation of Tongaat Hulett.
Steenhuisen said urgent intervention is needed to secure the operation of key sugar mills ahead of the April crushing season.
According to the Department of Agriculture, industry stakeholders have indicated that unless the current funding impasse is resolved swiftly, growers will be unable to deliver sugar cane and processing could come to a halt.
The Minister warned that the consequences of such an outcome would be severe, affecting approximately 15 500 delivering growers and between 35 000 and 40 000 people whose livelihoods depend directly on the supply chain linked to the mills.
“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 the uncertainty persists, the greater the damage,” Steenhuisen said.
The Minister stressed that agriculture operates within strict biological timelines and warned that delays in resolving financial and legal matters could result in irreversible losses.
“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 Minister said.
He said the Department of Agriculture is engaging with relevant government departments and financial stakeholders to support a practical solution that will preserve production capacity and prevent long-term damage to the sector.
Steenhuisen emphasised that the sugar industry remained a strategic contributor to rural economies and national food value chains.
Allowing milling operations to collapse, he said, would have far-reaching economic and social consequences beyond the farm gate.
“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.”
The Minister said the Ministry will continue to monitor developments closely and stands ready to facilitate engagement aimed at securing continuity in production and safeguarding livelihoods. – SAnews.gov.za
