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Sugar Industry Agreement

The Department of Commerce, Industry and Competition published the amendments in the government newspaper 43466. The goal of the master plan is to « create a globally diverse and competitive, sustainable and transformed sugar cane value chain that actively contributes to South Africa`s economic and social development and creates wealth for players in the value chain of sugar cane, bioeconomy, society and the wider environment. » The application domain map provides a detailed overview of the location of mills in the South African sugar industry. The map below gives you an overview of the vastness of sugar cultivation. In a statement, Trade, Industry and Competition Minister Ebrahim Patel said that « in the face of the crisis in the South African sugar industry, which threatens tens of thousands of jobs and hundreds of thousands of livelihoods, the government has developed, in collaboration with industry stakeholders, including sugar producers and users. , a master plan to enable the industry to restructure and develop. » « It requires a series of collaborative actions by industry stakeholders, which in turn require an appropriate derogation from certain provisions of the Competition Act, since cooperation between competitors is not normally permitted under the law. In the first phase, industrial users and sugar retailers committed to keeping locally produced sugar and sugar producers to a minimum during this period. South Africa`s sugar industry is one of the world`s leading producers of high-quality sugar and makes an important contribution to employment, particularly in rural areas, to sustainable development and the national economy. It is a diversified industry that combines sugarcane farming activities with the production of raw and refined sugars, syrups, special sugars and a number of by-products. Tube production includes 21,926 registered sugarcane producers operating KwaZulu-Natal and Mpumalanga. Sugar is produced by six mills companies of 14 sugar mills active in these tube production regions. The industry produces an average of 2.2 million tonnes of sugar per season. About 60% of this sugar is marketed in the Southern African Customs Union (SACU).

The rest is exported to markets in Africa, Asia and the Middle East. The designation of an exemption is intended to support the economic development, growth, processing and stability of the sugar industry, in line with the objectives of the proposed « sugar » master plan. In the first year, a detailed plan for restructuring the sugar industry is to be developed and put into service. According to the ministry, annual sugar production in South Africa has declined by almost 25% over the past 20 years, from 2.75 million tonnes to 2.1 million tonnes per year, with a 60% decline in sugar cane producers and a 45% decline in sugar industry jobs.