South Africa’s sugarcane harvest falls short amid drought, impacting exports and industry resilience

SOUTH AFRICA – South Africa’s sugarcane harvest for 2024 is projected to be 10 percent below the seasonal average, largely due to unusually dry conditions across KwaZulu-Natal’s primary sugarcane-growing regions, reports industry body SA Canegrowers.  

South African cane growers have typically produced about 18 million tonnes of sugarcane annually since 2020, but this year’s output is expected to fall below 17 million tonnes, with the North Coast, South Coast, and Midlands areas of KwaZulu-Natal among the hardest hit. 

While the Mpumalanga region also faced drier-than-normal conditions, many growers there rely on irrigation to supplement natural rainfall, which helped to mitigate some of the effects of the drought.  

The reduction in loadshedding this season, allowing for uninterrupted and consistent irrigation, has been particularly beneficial for Mpumalanga’s sugarcane output. 

“The reduced yield for the 2024 season highlights the growing vulnerability of our industry to climate-related challenges, especially for our rain-dependent growers,” noted SA Canegrowers chairman Higgins Mdluli.  

Despite a decreased yield, Mdluli emphasized that South Africa’s sugar production this season, estimated at approximately 1.9 million tonnes, would still adequately meet the country’s domestic demand of 1.5 million tonnes within the Southern African Customs Union.  

However, the reduced crop size will significantly limit the volume of South African sugar available for export, potentially impacting growers’ income and the broader economy. 

Due to the reduced harvest, three of the country’s 12 sugar mills have already ceased operations for the crushing season, more than a month ahead of schedule.  

In addition to climate pressures, the South African sugar industry has grappled with declining demand, partly due to the introduction of the Health Promotion Levy (HPL) in 2018.  

Before the tax, a typical season yielded about 20 million tonnes of sugarcane. Now, with suppressed demand, growers are opting to cultivate smaller crop areas.  

SA Canegrowers has expressed concern over the ongoing financial impact on producers, particularly as this year’s lower-than-average yield is expected to strain growers who have already incurred substantial costs. 

The South African government’s recent decision not to raise the HPL in the 2024 Medium Term Budget Policy Statement has been a welcome relief for the industry.  

The Bureau for Food and Agricultural Policy previously cautioned that, without adjustments, the HPL could lead to a further 10 percent decrease in sugarcane cultivation by 2030. Such a reduction would especially impact small-scale growers, potentially pushing many into financial hardship. 

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