This report focuses on the manufacture of sugar in South Africa, with information on the state and size of the sector, major players and their brands and performance, and factors influencing the sector. There are profiles of nine companies including notable players such as Tongaat Hulett, Illovo and RCL Foods and mills such as Umfolozi
Manufacture of Sugar
South Africa is a major sugar producer on the continent. The country’s crippled economy, cheap imports, changing consumption patterns, low international sugar prices, and the tax on sugar-sweetened beverages are some of the factors that have caused the industry to decline over the past few years. According to the Department of Trade, Industry and Competition, the local sugar industry needs to consider diversifying its products if it is to remain viable and create jobs. The government has pledged to work with sugarcane growers and millers and announced it would produce a master plan for the sector.
South Africa and the Global Market
The industry continues to face major challenges and is struggling to operate in the global market. The industry’s decline has largely been due to declining sales volumes, the sugar tax, low international sugar prices, and competition from cheap imports, mainly from Brazil and recently Eswatini. Increasing volumes of cheap imports from subsidised global producers has led to a decline in small-scale sugarcane farmers in rural areas and the mothballing and closure of two sugar mills for the current season.
Biofuel and Renewable Electricity
The industry believes in the need to diversify into biofuel, other cane-derived products and other suitable crops. Sugar mills produce their own electricity from sugarcane biomass. The industry estimates that it could supply at least 400MW of electricity to the grid if the mills had access to soft loans for the installation of additional boilers and factory upgrades. Studies have shown that a biofuel programme could create thousands of new jobs in rural areas and reduce fuel imports.
Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.
R 1 900.00(ZAR) estimated $101.46 (USD)*
Industry Overview Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.
R 1 330.00(ZAR) estimated $ 71.02 (USD)*
Table of Contents[ Close ]
|2.||DESCRIPTION OF THE INDUSTRY||1|
|2.1.||Industry Value Chain||4|
|3.||SIZE OF THE INDUSTRY||7|
|4.||STATE OF THE INDUSTRY||7|
|4.1.3.||Enterprise Development and Socio-Economic Development||17|
|5.1.||Economic Environment and Input Costs||23|
|5.6.||Technology, Research and Development (R&D) and Innovation||26|
|6.1.||Barriers to Entry||31|
|Summary of Notable players||34|
|A J PRODUCTS (NATAL) CC||36|
|A J PRODUCTS (WESTERN CAPE) CC||38|
|CROOKES BROTHERS LTD||40|
|GLEDHOW SUGAR COMPANY (PTY) LTD||44|
|ILLOVO SUGAR AFRICA (PTY) LTD||46|
|RCL FOODS SUGAR AND MILLING (PTY) LTD||48|
|TONGAAT HULETT LTD||52|
|U C L COMPANY (PTY) LTD||57|
|UMFOLOZI SUGAR MILL (PTY) LTD||60|