Sugar mill crisis puts 40,000 livelihoods at risk, Steenhuisen warns

Minister of Agriculture John Steenhuisen has warned that South Africa’s sugar industry is on the brink of a crisis Minister of Agriculture John Steenhuisenhas warned that South Africa’s sugar industry is on the brink of a crisis, afterTongaat Hulettentered provisional liquidation. This comes after the sugar giant filed for provisional liquidation after its Business Rescue Plan could not be implemented. Funding agreements with Vision and the Industrial Development Corporation were also not finalised, and the sale agreements expired, leaving the company unable to continue operations in South Africa.

The minister said that should the issue remain unresolved, around 15,500 cane growers would be unable to deliver their crop ahead of the April crushing season, while between 35,000 and 40,000 people whose livelihoods depend on the mills and related supply chains could be affected. In a statement released to the media on Wednesday, Steenhuisen said the situation poses an immediate threat to growers, mill workers, and rural economies. “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. The longer uncertainty persists, the greater the damage becomes.” Steenhuisen said. “Government’s concern is simple: the crop cannot wait.

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Agricultural production works on biological timelines, not legal or financial ones. An intervention that unlocks funding and restores operational certainty is urgently required to protect both production and jobs.” The minister also said the department is engaging with relevant government departments and financing stakeholders to support a practical solution that preserves production capacity and avoids irreversible losses in the sector. “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,” he added.

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