Cane industry’s fears need urgent address

OUR region often looks at the highly industrial City of uMhlathuze as the hub of the local economy.

It is indeed that, and a massive contributor to both the provincial and national budgets.

But there are other important economies at play apart from those linked to mining and its related sectors.

Forestry, agriculture and tourism are examples, not only generating billions of rands, but also creating jobs at many levels.

Thus the announcement that Tongaat Hulett has gone into business rescue sent a ripple of anxiety through the canegrowing community.

While the financial circumstances of the massive entity have been open knowledge for some time, the latest announcement has severe ramifications, both within and beyond the immediate cane growers’ circle.

Over the past weeks, we have watched the ‘black snow’ descend on the city as cane is burnt – an apt symbol of the dark cloud that has fallen over the industry.

As with all issues in life, the unknown is always worse than the known - which can be given calculated response and attention.

In some instances, the absence of information leads to conjecture and, perhaps, unwarranted anxiety; but in this case, the fears are real: the potential losers do not know where they stand.

Any business needs cash flow to continue its operations, and there is a logical concern that monies will be frozen as the business rescue process unfolds.

What about the contractors who perform numerous functions at the crushing mills; are their futures secure?

We are already hearing that cash owed to growers for cane delivered for processing at the mills a month ago has not been paid, as is the customary practice.

Right now, cane already harvested needs to be transported to the mills before it rots, and cane still in fields needs to be cut and conveyed.

Without being paid, farmers and their workers cannot afford to continue, while every person and family directly or indirectly associated will have their own problems to deal with.

Salaries must be paid so food can be put on tables, purchases can be made, and debts can be settled.

The outlook is not promising; in fact, a bleak Christmas season is on the horizon.

Traditionally, this is the time when growers have extra cash that will filter down into the local economy, be it through the purchase of new vehicles or farm equipment, luxuries or necessities.

Those prospects look bleak right now.