Sugar value chain master plan implementation continues

Although South Africa’s national lockdown measures to contain the spread of the coronavirus disease (COVID-19) pandemic delayed the formal signing and promulgation of the much-anticipated Sugar Cane Value Chain Master Plan, the industry has already begun implementing aspects of the plan.

The plan was intended to pull the country’s approximately R14 billion-a-year sugar value chain out of its yearslong financial crisis.

This was according to Trix Trikam, executive director of the South African Sugar Association (SASA), who said that the physical signing of the plan would take place when circumstances eventually allowed, but that this did “not delay the work or action required by the plan”. He said that the Minister of

Trade, Industry and Competition, Ebrahim Patel, and the Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza, had called an online meeting of all parties concerned in early April. An understanding was reached to allow government and the sugar value chain to prioritise efforts aimed at tackling the COVID-19 threat.

It was also agreed that, where feasible during the national lockdown, the sugar value chain would proceed with the implementation of the plan’s objectives.

“[The plan is] aimed at ensuring a growing and thriving industry, [and] includes, among other [aspects], the optimisation of the local [sugar] market in the Southern African Customs Union; [sugar] diversification into fuel ethanol; [sugar cane] crop diversification; and innovation. The Department of Trade, Industry and Competition is facilitating the process, [and] Patel and Didiza are championing the process,” Trikam said.

Other role players in the plan included the South African Cane Growers’ Association (SA Canegrowers), the South African Farmers’ Development Association (SAFDA), and the South African Sugar Millers’ Association Limited (SASMAL).

Dr Kathy Hurly, SA Canegrowers’ corporate executive, told Farmer’s Weekly that the organisation had scheduled a meeting with Patel’s sectoral adviser, Harald Harvey, for late in June, to discuss the way forward for the implementation of the plan. – Lloyd Phillips

stock on the market, with three more conventional vessels still to discharge [supplies]. This excludes the vessels currently loading and others still in the planning,” the group stated in a memorandum.

quality concerns

The large increase in the exporting of processing-grade grapefruit to China, up 30% from last season, was also troubling.

Chadwick said that since China was counter-seasonal to South Africa, and had a strong demand for processing fruit to keep factories in that country running during the off-season, it created a good market for South African fruit.

“However, with factories running at lower capacity, much of the processing fruit is being sent to markets where it competes with Class 1 fruit. Questions are being raised whether it is worthwhile to send processing grade grapefruit at all, and if it is hurting the Class 1 market.”

FW Archive ABOVE: Despite facing several challenges with regard to exports due to the COVID-19 pandemic, the citrus industry has shipped more fruit to date than the same time last year.