This was emphasised by Agriculture Minister John Steenhuisen during a meeting with small-scale growers and sugar industry leaders at KwaShukela in Mount Edgecombe, Durban.
The meeting was attended by representatives from the South African Sugar Association (SASA), the South African Farmers Development Association, SA Canegrowers, and the South African Sugar Millers’ Association.
“The sustainability of the small-scale sugarcane farmers must remain one of the main priorities for both government and the industry. I am passionate about the cause of small-scale farmers to ensure their growth and success. You are part of the agriculture family, and we regard you as very important stakeholders in agriculture,” said Minister Steenhuisen.
SASA has been leading efforts to ensure the sustainability of small-scale sugarcane farmers. Since the 2019/2020 season, an average of 13,349 small-scale growers have benefited annually from the Transformation Intervention Fund.
A total of R1.09bn has been invested in empowerment initiatives, with R700.55m allocated to small-scale growers, R254.47m to black large-scale growers, and R137.88m to other initiatives benefiting black beneficiaries.
An extension of empowerment funding, amounting to R238.9m for the current season, is expected to further support small-scale growers.
Significant infrastructure projects have been implemented to assist these farmers. These include:
• A R46.5m infrastructure rehabilitation project in Nkomazi, Mpumalanga, leading to the establishment of 300 hectares of cane.
• A R3.3m rail siding initiative in Mkhuze, KwaZulu-Natal, facilitating the transportation of 70,000 tonnes of small-scale growers' cane to the Felixton Mill at reduced costs.
• The installation of a dummy spiller at Gledhow Sugar Mill for R7.6m, has reduced hauler turnaround times and transport costs for small-scale growers.
Phase One of the Sugarcane Value Chain Master Plan to 2030 has reinforced the foundational role of small-scale growers. Under this plan, a minimum of R60m was allocated as part of the Premium Price Payment (PPP) initiative over three seasons, increasing to R68.05mn in the 2023/2024 season.
SASA Council has approved the extension of PPP to the 2024/2025 season, with an inflationary adjustment, bringing the allocation to R71.08m.
This additional price support has proven effective, increasing both the number of small-scale growers and their production output. The Master Plan also identified key challenges faced by small-scale growers, such as access to land and capital.
As Phase Two of the Master Plan approaches, attention will be given to addressing these challenges to enhance the livelihoods and productivity of small-scale sugarcane farmers. SASA aims to mitigate the lack of economies of scale, long transport distances, and high contractor costs through continued grants and support initiatives.
The goal is to ensure the long-term sustainability of small-scale growers while improving productivity in the short term. The industry is currently developing an intervention plan to enhance the livelihoods of small-scale sugarcane farmers across the sector.
