Small scale sugar farmers in the country receive R225 million boost

The SA Canegrowers Association has welcomed the recent disbursement of millions of rands in funding by the South African Sugar Association (SASA). Picture: Carla Gottgens/Bloomberg

The SA Canegrowers Association has welcomed the recent disbursement of millions of rands in funding by the South African Sugar Association (SASA). Picture: Carla Gottgens/Bloomberg

Published Feb 7, 2022

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The SA Canegrowers Association has welcomed the recent disbursement of millions of rands in funding by the South African Sugar Association (SASA).

According to a statement from The SA Canegrowers Association, more than R225 million will be paid to small-scale growers at the end of January 2022.

The SASA transformation funding to which cane growers contribute 64 percent, was allocated across two grower support programmes:

R115,4 million was allocated to intervention one which provides grant funding for black growers delivering under 1,800 tons of cane and R50,47 million was allotted to intervention two, which provides grant funding to black growers delivering above 1,800 tons of cane.

Another R60 million under the Masterplan was portioned between all qualifying small-scale growers; that is, growers on communal land, and on freehold land delivering less than 1,800 tons of cane.

Chairman of The SA Canegrowers Association Andrew Russell said the payments came at a good time for small-scale growers, several of whom were affected by the unrest in July 2021.

“Over the past two years, growers have survived not only the widespread cane arson that characterised the July unrest. But also costs incurred to combat the Covid-19 pandemic, the continued implementation of the Health Promotion Levy, declining milling capacity, which means significant quantities of cane being carried over, and an exponential increase in input costs like fertiliser,” said Russell.

Russell said this was an essential intervention to ensure the survival and success of small-scale growers as work continues under the Masterplan to revive the local industry and restructure it for future prosperity.

More than 21,000 small-scale growers derive their livelihoods from the industry, allowing them to contribute to the sustainability of rural economies.

BUSINESS REPORT ONLINE