Small growers fear for livelihoods

SMALL scale sugar cane farmers on the North Coast said the dire financial situation at the Gledhow sugar mill will affect their livelihoods.

According to the SA Canegrowers the Gledhow Mill in Stanger services more than 245 growers who produce more than 1.1 million tons of sugar cane a year: 6% of the industry’s total output.

These growers are believed to employ more than 3 400 workers from surrounding communities.

The Gledhow Sugar Company said its board of directors made the decision to undergo business rescue during a meeting on March 10.

The company comprises Ushukela Milling (34.9%), Illovo Sugar (30%), the Gledhow Growers Share Trust (25.1%) and Sappi Southern Africa Limited (10%).

It said the decision followed challenges which included forced closure of its factory due to social unrest in KZN in July 2021, and flood damage to machinery and infrastructure in April 2022.

“In addition, the Russia-Ukraine War has resulted in significant increases in essential supply costs such as coal and other operational inputs, which have further affected the company’s operating margin and cash flow constraints

“Under the banner of business rescue, the operation will continue to crush the cane and produce sugar as efficiently as possible,” the company said.

It assured all affected persons that payment of salaries and sugar production were a top priority.

“Cane payments, production, and maintenance costs are also the highest priority to be covered. Gledhow Sugar Company remains committed to ensuring the sustainability of its operations and interests of all its stakeholders, including the broader local community.”

Butch Subramani, 64, of Tongaat is a third generation sugar cane farmer. He took over a 12ha farm four years ago. He supplies 750 tons of cane to the Gledhow sugar mill, the closest mill to his farm.

“This is a small tonnage which provides very little income. If the mill continues in the state it is in, and the business rescue practitioners deduct money from my delivery to assist in the debt made by shareholders of the mill, how will I survive? The money that comes in barely covers the cost of fertiliser, chemicals and my own living cost.”

Subramani said the percentage that was needed to be paid was calculated monthly.

“At the end of the year, depending on what is owed to the debtors, the company will determine what each grower will contribute. This will be towards a lump sum that will be paid out.”

He said he was unable to afford to contribute in this way.

“From R6 000 a ton of fertiliser, I am paying double. It costs anywhere from R12 000 to R18 000 a ton depending on the variety that you need in your field.”

He said to determine the type of fertiliser needed, a sample needed to be given to the SA Sugarcane Research Institute: “They test it and advise”.

Subramani said the mill opened in early March but was not performing at its best.

“The way the mill is performing and the quality of cane we have will have a huge impact on the efficiency of the mill. The more the mill gets into debt, the more money is going to be taken out of the grower. The mill has no other means to pay off its debt than from the grower who supplies the cane to them.”

He said small farmers should be exempt from paying additional costs.

“As a small farmer this has a huge impact on us. My suggestion is any grower supplying less than 2 000 tons to the mill should not be affected by business rescue or deductions in any way.”

Kiki Mzoneli, 52, a third generation farmer with a 1ha sugar cane farm in Cranbrook, said she was having sleepless nights. She took over the farm from her father 10 years ago.

“It is not an easy time. The industry is not in a good position. We have so many questions. If the mill closes, what will happen to us? To all of the sugar cane? To our livelihoods?”

“I understand the mill has its struggles but so do we. So many jobs will be lost. So many people are losing hope.

“If people start to lose jobs, this will increase crime because people will become desperate to survive.”

She asked that the government intervene and help the small scale growers.

“We may need to diversify the use of sugar cane in order to provide another avenue of income for farmers. We are not asking for handouts. We want jobs. We want the dignity that comes with jobs.”

Andrew Russell, chairperson of SA Canegrowers, said the milling operations at Gledhow were critical for the mill’s survival and for the growers in the region.

“SA Canegrowers is therefore engaging extensively with the mill management, the South African Sugar Association, and with its grower members. We will make every effort to support Gledhow supplying growers, and to protect the livelihoods the industry supports.”