Selati-owner RCL Foods, which is majority-owned by Johann Rupert's Remgro, has flagged how Tongaat Hulett's collapse contributed to a nearly quarter of a billion rand hit to the group's sugar business.
The sugar industry says new regulations aimed at combating health problems will hurt profits and jobs, but a civil society coalition strongly disagrees
In his budget vote on Thursday, 18 May 2023, Minister Ebrahim Patel needs to urgently announce his departments plans to help South Africa’s sugarcane growers survive the current milling crisis, or risk presiding over the collapse of parts of the sector. Nearly seven months after Tongaat Hulett entered its South African operations into business rescue, growers continue to face financial and operational uncertainty. SA Canegrowers is deeply concerned that, unless urgent action is forthcoming, a number of small-scale growers will not survive this season. The crisis facing growers was exacerbated by the R1,5 billion defaults announced by Tongaat Hulett and Gledhow. This led to a more than R400 drop in the revenue per ton of RV (recoverable value) last season, at the same time as growers have seen exorbitant input costs increases, especially due to escalating loadshedding.