South Africa sugar industry sees strong start to 2026/27 season

SOUTH AFRICA – South Africa’s sugarcane industry has started the 2026/27 milling season with strong early production figures, raising optimism among growers despite ongoing uncertainty surrounding Tongaat Hulett and rising sugar imports. 

According to reports published by The Independent, early industry data shows sugarcane deliveries have increased by 48 percent compared to the same period last year. The improvement reflects strong participation from nearly 28,000 growers across the country as farmers continue efforts to sustain production under challenging market conditions. 

The positive start comes at a critical time for the sector, which remains under pressure from financial uncertainty affecting Tongaat Hulett, one of the country’s largest sugar companies. 

A court hearing scheduled for June 17 is expected to determine the future of the company after a liquidation case was brought forward. The outcome could significantly affect thousands of small-scale sugarcane farmers in northern KwaZulu-Natal who depend on Tongaat Hulett’s milling operations. 

Around 18,000 growers rely on the company’s mills, while three of its facilities are yet to begin operations for the current season, raising concerns across the industry. 

Chairperson of SA Canegrowers, Higgins Mdluli, said the industry has remained resilient despite ongoing difficulties. 

He expressed optimism that growers supplying Tongaat Hulett mills would still experience a productive milling season. 

The company recently secured temporary funding of R200 million from the Industrial Development Corporation as efforts continue to prevent liquidation and stabilise operations. 

At the same time, South African sugar producers are facing increasing competition from imported sugar. Industry figures show that sugar imports from countries including Brazil, Thailand and India continue to rise, placing pressure on local sugar prices and farmer earnings. 

In March alone, imports reached 16,000 tonnes, double the volume recorded during the same period last year. Total sugar imports in 2025 climbed to 213,000 tonnes. 

Industry representatives warned that growing imports are reducing revenues for domestic producers and threatening the long-term sustainability of the sugar sector. 

The International Trade Administration Commission of South Africa is currently reviewing the country’s sugar tariff structure following concerns that existing protections are no longer sufficient to shield local producers from global competition. 

Mdluli said nearly one million livelihoods depend on South Africa’s sugar industry, particularly in rural communities across KwaZulu-Natal and Mpumalanga, and called for stronger policy support to protect jobs, production and economic activity. 

Despite the ongoing pressures, growers remain committed to sustaining production and meeting domestic sugar demand as the 2026/27 season progresses. 

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