First Step is 'to Sell South African Sugar in South Africa': Local CEO on Industry Facing Crisis
First Step is 'to Sell South African Sugar in South Africa': Local CEO on Industry Facing Crisis
"If there's no intervention," South African sugar farmers "will be forced to close their farms" as cheap imports from such countries as Brazil, India, Thailand, and Guatemala flood the market, Thomas Funke, CEO of SA Canegrowers, told Sputnik Africa.
"And that sugar is displacing South African sugar onto a world market, where currently the price is below our cost of production," he added.
ℹ South Africa's sugar imports nearly doubled in the first five months of 2026, displacing local sugar and threatening the industry, according to SA Canegrowers.
Key steps to protect the industry, suggested by Funke:
🟠Raising import tariffs: adjusting the dollar‑based reference price to create a fair playing field;
🟠Diversifying into ethanol production: following Brazil and India, where government support has made the sugar industry more sustainable;
🟠Developing a clear policy framework and a pricing regime, especially amid record oil prices.
Intra-Africa trade presents an opportunity, as the cane growers of South Africa and Eswatini are already collaborating to protect their sugar industries from cheap imports, the expert noted.
Subscribe to @sputnik_africa
