Just News |
Data compiled by SA Canegrowers shows that the South African sugar industry is set to lose R723 million in 2023 due to load-shedding. With milling giant Tongaat Hulett in business rescue, and the destructive Health Promotion Levy already hampering the industry, these losses are potentially catastrophic for growers and the industry’s workers. SA Canegrowers is therefore appealing to the government to put short-term measures in place to mitigate the impact of load-shedding on growers while long-term solutions are considered.
Loadshedding affects 1,135 irrigated growers who employ more than 10,000 workers. An estimated 34% of South Africa’s sugarcane is produced in irrigated areas including Komatipoort and Malelane in Mpumalanga, and Pongola in KwaZulu-Natal.Growers are expected to incur more than R189 million in additional energy costs in 2023 on account of the disruption to irrigation schedules
SA Canegrowers’ scenario modelling shows that continuous load-shedding at stages 4-6 will cost growers more than R723 million in 2023. An escalation to stages 6-8 could cost the industry more than R1,8 billion. Anything beyond stage 8 could cost the industry more than R2,4 billion.
SA Canegrowers is therefore appealing to Eskom and the government to help the industry in particular, as well as the broader agricultural sector, to find urgent solutions to mitigate the impact of load-shedding.
