The first phase of the industry’s master plan delivered just over 51% of its planned targets between 2021 and 2023. One of its main goals was to steady domestic sugar sales, which had declined from 1.5 million tonnes to 1.2 million tonnes over several seasons before the plan was introduced, said Sifiso Mhlaba, CEO of the South African Sugar Association.
Speaking to Farmer’s Weekly, Mhlaba said the recovery was supported by a commitment to limit price increases in line with inflation and by requiring downstream buyers to source 95% of their sugar locally. Together with trade protection measures, these steps helped stabilise the local market.
Efforts to diversify the industry were carried out in partnership with the Industrial Development Corporation. More than 50 alternative sugarcane-based products were initially reviewed, with five shortlisted, including sustainable aviation fuel and polylactic acid. Phase 2 of the plan will focus on bringing these products to market and developing sustainable production methods.
The industry also sought to maintain a moratorium on the Health Promotion Levy, South Africa’s tax on sugary drinks introduced in 2018 to address obesity and other health concerns, while securing continued government backing for the broader plan.
As preparations for Phase 2 continue, the industry is facing growing pressure from imports. Kulani Siweya, national market and trade policy executive at SASA, said South Africa imported 163,000 tonnes of sugar between April and December 2025 from countries including Brazil, India, Guatemala, Thailand, and Eswatini. This marked a 155% increase compared to the same period the previous year.
He said many of these imports benefit from subsidies, allowing foreign producers to sell sugar below their cost of production. According to Siweya, each tonne of imported sugar results in a loss of about R7,500 to the local industry and displaces locally produced sugar. He added that the industry has already lost more than R1 billion due to rising imports.
Despite global market pressures, Siweya noted that South African producers still earn more from domestic sales than from exporting at world prices, which remain below production costs. He stressed that maintaining protective measures is essential to safeguard jobs and economic activity.
To support the sector, SASA has applied to revise the dollar-based reference price that sets the benchmark for sugar imports. The current level of $680 per tonne, set in 2018, no longer reflects present costs. The association has proposed increasing it to $905 per tonne. Siweya said independent analysis shows the change would lead to only a 0.3% rise in sugar prices for consumers.
Mhlaba said the second phase of the master plan will simplify operations by reducing the number of working groups from 10 to four, improving oversight and evaluation. These teams will focus on trade and pricing, support for small-scale growers, diversification projects including sustainable aviation fuel and polylactic acid, and food policy matters linked to the Health Promotion Levy.
He added that transformation remains central to the master plan, with R2 billion allocated over five years to support black and small-scale growers, aimed at creating and preserving jobs across the sector.
