Report Coverage
This report on the manufacture of sugar in South Africa provides information on sugarcane and sugar production, revenue and consumption, notable players and corporate actions. There is information on the Tongaat Hulett crisis, the industry masterplan, product diversification, and sweeteners and substitutes. There is also information on influencing factors such as input costs, labour and environmental issues. The report includes profiles of 12 companies such as major players Illovo, RCL Foods and Crookes Brothers, millers such as Umfolozi Sugar Mill and UCL, and the beleaguered producer Tongaat Hulett.
Introduction
• South Africa is one of the world’s most cost-competitive producers of high-quality sugar, but the industry faces mounting challenges.
• Subsidy-driven overproduction abroad continues to depress international prices, while domestic pressures such as the sugar tax, rising input costs, and low-cost imports erode competitiveness and profitability.
• The collapse of Tongaat Hulett’s business rescue plan in February 2026 threatens to plunge the sector back into crisis.
• Domestic sugar production fell by 7% in the year to end-March 2025, largely due to lower cane volumes.
• The focus of sugar policy is shifting from protecting the industry to making it more competitive by adding value, improving efficiency, and diversifying.
Trends
• Cheap imports continue to pose a threat to local producers.
• Declining demand for sugar due to the shift to healthier eating and natural, zero-calorie sweeteners.
• Focus on product reformulation, driven by consumer demand and the sugar tax.
• Sustainability pressures from climate variability and environmental compliance requirements.
• The masterplan is helping to stabilise the industry by encouraging food and beverage manufacturers and retailers to buy locally-produced sugar, and through small-grower support and diversification initiatives.
• There is a growing focus on diversification, particularly biofuels and bioplastics.
Opportunities
• Agritech services, such as AI-powered yield optimisation, crop monitoring, precision irrigation, drone-based field analysis, and blockchain-enabled supply chain tracking.
• Bioenergy services, such as waste-to-energy and biomass energy solutions for mills and grower cooperatives.
• Diversification into other sugar-based products, notably ethanol and aviation fuels.
• Packaging including bags, cartons, and biodegradable packaging for retail and bulk industrial sugar.
• Producing livestock feed from molasses.
• Producing organic and artisanal sugars.
• Supplying labelling services aligned with domestic and international standards.
• Supplying specialised sugars, syrups, and blended sugar formulations with reduced calories.
• Transforming by-products like bagasse into paper, boards, or bioplastics.
Challenges
• The global sugar price is affected by subsidy induced overproduction in some major sugar-producing countries.
• Local producers face competition from other African countries, notably Eswatini, and subsidised sugar-producing countries such as Brazil and India.
• Margins remain under strain due to rising production costs, low-cost imports, and global price weakness. Volatile international sugar prices and tariffs on exports to the US create uncertainty for producers.
• Reduced demand and shrinking margins put mills and growers at risk, with potential job losses in KwaZulu-Natal and Mpumalanga.
• The growth in demand for low-sugar and sugar-free products is eroding sugar sales.
• The industry is highly exposed to droughts, floods, wildfires and other climatic events, which reduce sugarcane yields and impact production.
• The sugar tax is driving down consumption and contributing to job losses.
Outlook
• Sugar output is expected to increase in the current year, driven by improved cane yields and processing facility upgrades.
• Major players have focused on recapitalisation and efficiency upgrades.
• The industry’s long-term success will depend on how well it manages pressures from imports, changing consumer preferences, and rising production costs.
• The future of the sugar industry will be strongly influenced by how effectively the second phase of the masterplan is implemented.
• Policy support and enabling regulatory frameworks are needed to make diversification commercially viable.
Full Report
R 20 000.00(ZAR) estimated $1229.52 (USD)*
Industry Landscape
R 14 000.00(ZAR) estimated $ 860.67 (USD)*
Historical Reports
The Manufacture of Sugar in South Africa 2023-06-27
R 6 500.00(ZAR) estimated $399.60 (USD)*
View Report Add to CartThe Manufacture of Sugar in South Africa 2020-06-29
R 1 900.00(ZAR) estimated $116.80 (USD)*
View Report Add to CartThe Manufacture of Sugar in South Africa 2018-01-19
R 1 900.00(ZAR) estimated $116.80 (USD)*
View Report Add to CartThe Manufacture of Sugar in South Africa 2015-11-09
R 1 900.00(ZAR) estimated $116.80 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 6 |
| 2.2. | Geographic Position | 7 |
| 2.3. | Size of the Industry | 9 |
| 3. | LOCAL | 11 |
| 3.1. | State of the Industry | 11 |
| 3.2. | Key Trends | 17 |
| 3.3. | Key Issues | 17 |
| 3.4. | Notable Players | 18 |
| 3.5. | Trade | 20 |
| 3.6. | Corporate Actions | 25 |
| 3.7. | Regulations | 26 |
| 3.8. | Enterprise Development and Social Development | 28 |
| 4. | AFRICA | 30 |
| 5. | INTERNATIONAL | 35 |
| 6. | INFLUENCING FACTORS | 39 |
| 6.1. | Unforeseen Events | 39 |
| 6.2. | Economic Environment | 39 |
| 6.3. | Input Costs | 41 |
| 6.4. | Government Support | 42 |
| 6.5. | Labour | 43 |
| 6.6. | Environmental Issues | 44 |
| 6.7. | Technology, R&D, Innovation | 45 |
| 7. | COMPETITIVE ENVIRONMENT | 47 |
| 7.1. | Competition | 47 |
| 7.2. | Ownership Structure of the Industry | 48 |
| 7.3. | Barriers to Entry | 49 |
| 8. | INDUSTRY SUMMARY | 49 |
| 9. | OUTLOOK | 50 |
| 10. | INDUSTRY ASSOCIATIONS | 51 |
| 11. | REFERENCES | 51 |
| 11.1. | Publications | 51 |
| 11.2. | Websites | 52 |
| ANNEXURE 1 | 53 | |
| Relevant Legislation | 53 | |
| APPENDIX 1 | 55 | |
| Summary of Notable Players | 55 | |
| COMPANY PROFILE | 57 | |
| A J PRODUCTS (NATAL) CC | 57 | |
| A J PRODUCTS (WESTERN CAPE) CC | 59 | |
| CROOKES BROTHERS LTD | 61 | |
| GLEDHOW SUGAR COMPANY (PTY) LTD | 65 | |
| ILLOVO SUGAR (SOUTH AFRICA) (PTY) LTD | 67 | |
| PAKHOUSE BRANDS (PTY) LTD | 69 | |
| RCL FOODS SUGAR AND MILLING (PTY) LTD | 71 | |
| SUCROMIX (PTY) LTD | 75 | |
| SUPER SYRUPS (PTY) LTD | 76 | |
| TONGAAT HULETT LTD | 77 | |
| U C L COMPANY (PTY) LTD | 81 | |
| UMFOLOZI SUGAR MILL (PTY) LTD | 84 | |
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