Thousands of livelihoods at risk as sugar mills face shutdown threat

Agriculture Minister John Steenhuisen has warned that thousands of jobs and rural livelihoods are at risk unless urgent steps are taken to secure the operation of key sugar mills following the liquidation of Tongaat Hulett. In a statement, Steenhuisen said the crisis has created serious uncertainty over the operation of key sugar mills ahead of the April crushing season. He said the department has been engaging industry stakeholders and has been informed that without immediate financial intervention, milling operations could grind to a halt.

According to the department, about 15 500 delivering growers and between 35 000 and 40 000 people whose livelihoods depend directly on the mills and related supply chains could be affected. This is not a theoretical risk, it is an immediate economic threat to rural communities. If the mills do not open, farmers cannot harvest, workers cannot earn an income, and entire local economies will stall.

Steenhuisen has stressed that the crop cannot wait and that agricultural production works on biological timelines, not legal or financial ones. “Government’s concern is simple: the crop cannot wait. An intervention that unlocks funding and restores operational certainty is urgently required to protect both production and jobs,” he said.

[paywall]

He said the department is engaging relevant government departments and financing stakeholders in an effort to support a practical solution that preserves production capacity and avoids irreversible losses in the sector. Steenhuisen described the sugar industry as a strategic contributor to rural economies and food value chains, cautioning that a collapse in production would have far-reaching economic and social consequences beyond the farm gate. Our objective is not to intervene in commercial negotiations, but to ensure that a viable path forward exists so that growers can deliver cane, mills can operate, and workers can earn an income. The immediate priority must be keeping the season alive.

[/paywall]