SOUTH AFRICAN SUGAR INDUSTRY DIRECTORY
2011 / 2012 WHERE ARE WE LOCATED?
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Pongola Umfolozi Umfolozi KWAZULU-NATAL KWAZULU-NATAL Felixton Dalton FelixtonAmatikulu Dalton Amatikulu LESOTHO Noodsberg Darnall LESOTHO Noodsberg Darnall PIETERMARITZBURG PIETERMARITZBURG GledhowGledhow EstonEston DURBANDURBAN MaidstoneMaidstone
SezelaSezela IRRIGATED AREAS Umzimkulu Umzimkulu RAIN FED AREAS
SUGAR MILLS EASTERN CAPE EASTERN CAPE N N
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province map new.indd 1 2010/04/19 10:07 AM Information distributed by the South African Publications Sugarcane Research Institute
The SA Sugar Association has publications available to the public Please contact the Librarian at 031 508 7514 or write to: The Librarian, which describe in full detail the diverse aspects of the sugar industry. South African Sugarcane Research Institute, Private Bag X02, Mount Please contact the External Affairs Division on 031 508 7026 Edgecombe 4300. Email: [email protected] • SA Sugarcane Research Institute Progress Reports Publications • The Link (Technical Newsletter) • SA Sugar Journal – Available on subscription • Technical Manuals
Educational Brochures • Information Sheets • Map of the SA Sugar Industry • Research Reports • Nutrition Education Print Material • Herbicide Guide • Industry Educational Material – OBE Teacher’s Pack • Ingede (Zulu Newsletter) • SASRI Poster Series • Sugarcane Certificate Course Notes • Mechanisation Reports • Info Pack CD
InformatIon for nursIng tutors We manage your global risks • SA Sugarcane Atlas from end to end. Your business can grow beyond borders. May 2 0 1 1 NUTRITIONining Kit • Careers in Sugarcane Agriculture trA SADC FEATURE SADC SUgAR • SASRI Visitors’ Guide SECTOR
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Time For further information visit the SASA Website: N S P UB LICATIO Global Trade. Nedbank’s global trade solutions focus on managing the risks associated with cross-border trade – end to end. Our highly skilled team will structure workable solutions that are specific to your needs and that can be integrated into your current business processes. So, while we ensure that your global trade needs are met, you’ll have time to focus on growing your business. Email us at [email protected]. EU Market http://www.sasa.org.za tion M Department 2011/03/18 12:07 P r ASSociA Developments Nutritionn SugA Preferential Access South AfricA
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Nutrition folder 2011 fin CONTENTS
SOUTH AFRICAN SUGAR INDUSTRY DIRECTORY • 2011/2012
THE SOUTH AFRICAN SUGAR INDUSTRY Grocane Agricultural Fire Insurance Primary Co-Op Ltd 33 Economic Contribution 3 SA Sugar Millers’ Association Limited 34 Contribution to Sustainable Development Illovo Sugar Limited 34 and Broad-based Black Economic Empowerment 4 Tongaat Hulett Sugar Limited 36 Sugar and Health 8 Tsb Sugar Holdings (Pty) Limited 38 Market Competitiveness 9 Gledhow Sugar Company (Pty) Limited 39 Industry Structure 11 UCL Company Limited 39 Cane Growing in South Africa and the Umfolozi Sugar Mill Company (Pty) Limited 39 SA Cane Growers’ Association (CANEGROWERS) 12 Mill Group Boards 40 Sugar Milling and Refining and the Research Organisations 41 SA Sugar Millers’ Association Limited (SASMAL) 14 Labour Organisations 41 South African Sugar Association (SASA) 16 INDUSTRY INFORMATION FACTS & FIGURES Historical Highlights 42 Industry Production Figures and Graphs 21 Publications 45
DIRECTORY SA Sugar Association 28 SA Cane Growers’ Association 32 Local Grower Council Secretaries 32
1 2 INDUSTRY INFORMATION SOUTH AFRICAN SUGAR INDUSTRY
The South African sugar industry is one of the world’s leading Revenue cost competitive producers of high quality sugar and makes an important contribution to employment and sustainable socio- Based on revenue economic development, particularly in rural areas, and also to the generated through sugar national economy. sales in the SACU region as well as world market It is a diverse industry combining the agricultural activities of exports, the South African sugarcane cultivation with the manufacture of raw and refined sugar, sugar industry generates an syrups, specialised sugars and a range of by-products and co-products. annual estimated average The cane-growing sector comprises approximately 29 130 registered direct income of over R8 sugarcane growers farming predominantly in KwaZulu-Natal with billion. This constitutes substantial operations in Mpumalanga, and some sugar-cane R5,1 billion in the value production in the Eastern Cape. Sugar is manufactured by six milling of sugarcane production companies with 14 sugar mills operating in the cane-growing regions. with the balance being the contribution of the milling The industry produces an average of 2,2 million tons of sugar per companies. season. About 70% of this sugar is marketed in the Southern African Customs Union (SACU). The remainder is exported to markets in Employment Africa, Asia and the Middle East. The sugar industry provides direct employment in cane production and processing, and indirect employment in numerous support industries in the provinces where sugarcane is grown and processed, ECONOMIC CONTRIBUTION namely KwaZulu-Natal, Mpumalanga and the Eastern Cape. Direct employment within the sugar industry is approximately
Sugar and the Economy 79 000 jobs, which represents a significant percentage of the N Y I NF OR M ATIO total agricultural workforce in South Africa. Indirect employment is The South African sugar industry makes an important contribution to estimated at 350 000. In addition there are approximately 29 130 the national economy, given its agricultural and industrial investments, registered cane growers supplying cane for processing to sugar mills. foreign exchange earnings, its high employment, and its linkages with Approximately one million people, more than 2% of South Africa’s major suppliers, support industries and customers. Sugarcane is the population, depend on the sugar industry for a living. I N D U STR second largest South African field crop by gross value, surpassed only by maize. 3 Economic Transformation
The industry’s initiatives in the area of economic transformation could best be summarised under its commitment to Broad-based Black Economic Empowerment, with focus on land reform, agricultural support services, employment equity and enterprise ownership.
Land Reform The South African sugar industry has long recognised the need to promote diverse ownership of agricultural land under sugarcane and have a range of support instruments in place to promote the sustainability of such initiatives. As a result, 19,8% of freehold land SUSTAINABLE DEVELOPMENT AND under sugarcane has already been transferred to black growers. BROAD-BASED BLACK ECONOMIC In order to progress the industry’s target of 30% black ownership of freehold sugarcane land by 2014, the industry initially established an EMPOWERMENT independent land reform entity, called Inkezo Land Company in 2004. Inkezo’s primary objective was to streamline transfer of ownership of The sugar industry’s focus on producing a high quality, profitable land to black farmers, and promoting the sustainability of the new and cost effective product is complemented by its focus on ventures through targeted support services. sustainable development. The industry is a major contributor to rural development, an area often neglected in an urbanizing However, the lack of a comprehensive and programmatic approach to society. Industry focus includes the promotion of economic the restitution of land to dispossessed communities has since emerged as a fundamental determinant of the future sustainability of the sugar N Y I NF OR M ATIO transformation, social investment and sustainable environmental practises. industry. The industry has consequently expanded its focus on land reform to also deal with land restitution processes and outcomes. In addition to initiatives undertaken as an industry, the South African In order to optimally integrate the required support services and Cane Growers’ Association and the sugar milling companies undertake structures with those already available in SASA, this expanded activity
I N D U STR development projects and are involved in Broad-based Black Economic has been incorporated into SASA’s External Affairs Division. Empowerment (BBBEE) through a range of important initiatives. 4 The key objective of this expanded Land Reform function is to facilitate grower support service officer and access to a special VAT and diesel and co-ordinate activities that support the sustainable transfer of land, dispensation for small-scale growers. The South African Cane Growers’ by providing a comprehensive developmental support programme. Association has bolstered its regional economic service to provide local This programme will promote re-establishment of optimal levels level support to new medium-scale black growers who have entered of sugarcane production, deliver skilled and capacitated farmers, the industry since 1994, including beneficiaries of government’s land promote good governance amongst the new land holding institutions, reform programme. and sustainable business enterprises. Key focus areas are: The milling companies provide extensive service in support of the • An integrated land acquisition and post transfer support cane-growing operations of small- medium- and large-scale black business process for the sugar industry, one that will clearly farmers. identify the support roles of industry stakeholders; The South African Sugar Association provides in-field training to small- • A comprehensive farmer support programme for land reform scale growers, offers certified courses in sugarcane agriculture and beneficiaries (training, skills development, mentorship); provides technology transfer and extension. • A programmatic approach towards the settlement of outstanding restitution claims in the industry, and Employment Equity • Leveraging financial and technical resources, and developing a All participants in the industry promote compliance with the financing model to enable land reform beneficiaries to access Employment Equity Act, and have integrated Employment Equity and loan finance. Skills Development Plans in place that are monitored and updated annually. These have targets for recruiting, developing and promoting people from designated groups. Agricultural Support Services
The South African sugar industry has a long history of promoting and Enterprise Ownership supporting small-scale farmers on tribal land. Building on the extensive infrastructure and network of the growers and millers, the industry has Participants in the sugar industry have been actively promoting and N Y I NF OR M ATIO been able to engage effectively in ongoing delivery related projects. implementing the objectives of the Broad-based Black Economic Empowerment Act. Progress has been made towards transforming the Mentorship programmes focussing on business skills and grower ownership profile of the industry. Initiatives embarked upon by South support extension services are deployed to support cane growing African milling companies have resulted in increased black ownership activities. The South African Cane Growers’ Association also provides of sugar manufacturing capacity. I N D U STR technical skills training for new and emerging cane growers, accounts and financial management workshops, regional economic advisors, a 5 SOCIAL INVESTMENT Educational Support The Sugar Industry Trust Fund for Education (SITFE) was launched in The sugar industry’s involvement in social investment includes projects 1965 as a private sector initiative, and is one of South Africa’s oldest in the areas of Enterprise Development, Health and Welfare, and education and training programmes. To date SITFE has provided Human Resource Development. bursaries to approximately 10 000 students, financed school building projects, given assistance to tertiary institutions, and worked with community-based educational authorities to improve overall education Enterprise Development standards. The industry is involved in numerous projects such as the provision of seed funding to assist rural black women, youth and communities Agricultural and Engineering Training to establish co-operatives and to access real economic opportunities. The enterprise development programmes seek to accelerate people's The Shukela Training Centre (STC) provides training in Agriculture and access to employment opportunities and increase their participation in Engineering. Agricultural training is specific to the Sugar Industry and the mainstream economy. provides a support to new entrants into sugarcane farming, as well as ongoing support to existing farmers. The skills-based training is mainly Health and Welfare conducted on the farm. Engineering training is mainly for apprentices and STC covers a wide spectrum of trades. The institutional training The staggering challenge of poverty, HIV and AIDS, unemployment takes place at the nationally acclaimed Training Centre in Mount and household food insecurity not only affects the quality of life of Edgecombe. The Centre is an accredited decentralised trade test the indigent, it also threatens the social stability of these vulnerable centre and services the sugar and other industries. communities. Meeting these challenges is a priority of the sugar industry. The industry works in partnership with non-governmental Technology Transfer organisations supporting vulnerable communities in order to respond to these issues. Research conducted by the South African Sugarcane Research Institute N Y I NF OR M ATIO (SASRI) contributes to the profitability and sustainability of the industry Human Resource Development whilst encouraging environmentally responsible farming practices. Outputs from the various research programmes at the Institute are Human resource development is a major area of social investment transformed into practical knowledge and technology products. for the sugar industry. The following initiatives are maintained by the
I N D U STR Training and development takes place through annual Certificate industry to promote human resource development, and are primarily Courses in Sugarcane Agriculture and through a series of interventions focused on promoting Broad-based Black Economic Empowerment: by a network of extension specialists. 6
Photograph supplied by Fancy Stitch The Sugar Milling Research Institute (SMRI) is the central scientific Renewable Energy organisation involved in research work and technical services for the southern African sugar manufacturing/milling industries. It was founded in 1949 and is located on the Durban campus of the The South African University of KwaZulu-Natal. sugar industry has the potential to make a significant contribution to Health Education government’s objectives The key focal area of the South African Sugar Association's Nutrition in the area of green and Department is to communicate science-based information on renewable energy such nutrition, especially the role of sugar as part of a balanced diet and as the generation of healthy lifestyle to health; education and media professionals and the renewable electricity and wider public. The programme contributes to capacity building and bio-ethanol. continued professional development of these professionals through At present, the 14 sugar support of nutrition research, congresses and nutrition education. mills in South Africa are designed for energy balance, which means SUSTAINABLE ENVIRONMENT that they use the biomass produced during the processing of sugarcane, called bagasse, to generate steam and electricity for their The South African Sugar Association promotes sound and sustainable own internal needs. However, these factories can be modified to environmental practices within the industry in line with national maximise the biomass energy available for electricity generation, and legislation and international requirements. This is achieved through in doing so produce significant quantities of renewable energy that knowledge transfer of sugarcane environmental research, including could be supplied onto the national energy grid. the development of better management practices, support of Leading internationally competitive sugarcane industries such as Brazil N Y I NF OR M ATIO environmental committees located in the sugarcane producing areas, and India have already developed markets for renewable energy for and collaboration with organisations such as the World Wide Fund their sugarcane-based value-chains. Revenue from sugar production, for Nature, and the Wildlife and Environment Society of South Africa. electricity generation and fuel ethanol production are key to the full These interventions promote and facilitate sustainable environmental value extraction of sugarcane, and is core to secure a sustainable future management in the sugar industry. for sugar cane and the rural economic regions in which the sugar I N D U STR industry operates in South Africa. 7 Sugar and Health
Sugar is a natural sweetener of plant origin and it is a pure carbohydrate and 100% natural. Sugars made by plants are classifiable as sucrose, glucose and fructose. All three are found in varying amounts in most fruits and many vegetables. All carbohydrate rich foods, once digested, provide glucose, the primary fuel for the body. The source of the carbohydrate is not significant in a dietary context. The sucrose from sugar cane is identical to the sucrose present in fruits and vegetables. The growing incidence in chronic diseases of lifestyle such as diabetes, cardio-vascular disease and obesity, especially in children, has focused the attention of policymakers and media on the consumption of fats and sugar, and the potential contribution of these essential ingredients to the diseases of lifestyle epidemic. Unbalanced and scientifically inaccurate reporting on sugar consumption has led to excessive and negative speculation regarding the value of sugar as part of a balanced diet. Eminent bodies such as the World Health Organisation
N Y I NF OR M ATIO and the Food and Agricultural Organisation agree that sugar, like other carbohydrate-containing foods, has an indispensable role to play in balanced diets. These bodies concluded that there is no evidence of sugar being the direct cause of lifestyle diseases such as I N D U STR diabetes, heart disease, obesity or cancer.
8 world market, as the global sugar price is severely affected by subsidy- induced overproduction in some major sugar-producing countries. Access to the major markets for raw and refined sugar is furthermore restricted by high tariffs and preferential trade arrangements in the form of tariff rate quotas. These same global market distortions also threaten the maintenance of a profitable and sustainable sugar price on the domestic market. Government’s strategic support for the South African sugar industry recognises the distorted nature of the world market for sugar, and the severe impact of producer support measures on price determination on the global market. Based on these considerations government support includes intervention in the following three areas: tariff protection against disruptively low world sugar prices; provision for the establishment of equitable export obligations for millers and growers; and the Sugar Cooperation Agreement between the members of the Southern African Development Community. MARKET COMPETITIVENESS The South African Government’s support in these areas is endorsed in the Department of Trade and Industry’s Strategy for the Optimal Development of the Sugar Industry within the context of the South South Africa continues to be one of the world’s leading cost competitive African Customs Union and the Southern African Development producers of high quality sugar. According to independent surveys of Community. the costs of production of more than100 global sugar industries, the N Y I NF OR M ATIO South African sugar industry consistently ranks amongst the top 15. Tariff protection Its excellent export infrastructure, world-renowned agricultural and industrial research platforms and efficient industry organisation are key The industry is supported through a dollar-based reference price tariff drivers of excellence. system that is based on the long-term average world price for sugar, I N D U STR adjusted for distortions, which only delivers protection when the world Despite its comparative production efficiencies, the South African price drops below a reference price. sugar industry finds it difficult at times to export profitably to the 9 Equitable export obligations • To improve the competitiveness of the sugar-producing member states in the world market;
The profitability of the industry’s exports to the world market is • To facilitate the sharing of information, research and training with severely affected by a subsidy-induced oversupply of global demand. a view to improve the efficiency of growers, millers and refiners of The South African sugar industry exports approximately 40% of its sugar in member states; sugar production to the world market at prices which are normally • To facilitate the development of small and medium sugar substantially below the domestic sugar price. In order to distribute enterprises; and exposure to the world market equitably amongst growers and millers, a redistribution of proceeds is effected via the South African Sugar • To create stable market conditions in the member states so as Association. The Sugar Act and the Sugar Industry Agreement provide to encourage the development of all sugar industries with a regulatory support for this redistribution of proceeds. view of facilitating direct foreign investment and the creation of employment opportunities. The Southern African Development Community Sugar Cooperation Agreement
A Southern African Development Community (SADC) Sugar Co-operation Agreement has been established and is incorporated into the SADC Trade Protocol. A Regional Sugar Strategy and associated Action Plan have been developed to advance the objectives of the Agreement. The main objectives of the SADC Sugar Co-operation Agreement are - N Y I NF OR M ATIO • To promote, within the region, production and consumption of sugar and sugar-containing products according to fair trading conditions and an orderly regional market in sugar for the survival of the sugar industries in all sugar producing member states, in
I N D U STR anticipation of freer global trade; • To create a stable climate for investment, leading to growth and 10 development of sugar industries in the member states; INDUSTRY STRUCTURE ORGANISATION OF THE SOUTH AFRICAN SUGAR INDUSTRY
Council of the SA Sugar Association The South African Sugar Association GROWERS administers the partnership on behalf of the MILLERS South African Cane Growers’ Association and the South African Sugar Millers’ Association Ltd. As equal partners, each member elects eleven councillors to sit on the SA Sugar Association Council. The Chairmanship and Vice-Chairmanship of Council usually 13 LOCAL GROWER 6 Milling alternates every two years between a grower COUNCILS Companies and a miller. The South African Sugar Association is an autonomous organisation and operates free of government control. In terms of the Sugar Act and Sugar Industry Agreement, statutory SA CANE GROWERS’ SA SUGAR MILLERS’ powers of self governance are granted to the ASSOCIATION ASSOCIATION LTD sugar industry. The South African Sugar Association’s administrative and industrial activities and N Y I NF OR M ATIO organisations are financed from the proceeds of the sale of local and export sugars. Its affairs SOUTH AFRICAN are administered by the Council of the SA SUGAR Sugar Association. ASSOCIATION I N D U STR COUNCIL 11 12
CANEGROWERS CANE GROWING IN SOUTHAFRICA
The approximately 29 130 registered sugarcane growers annually produce on average 19.9 million tons of sugarcane from 14 SA CANE GROWERS’ ASSOCIATION mill supply areas, extending from Northern Pondoland in the Eastern Cape to the Mpumalanga Lowveld. More than 27 580 are The South African Cane Growers’ Association (CANEGROWERS) small-scale growers, of whom 13 871 delivered cane last season, was established in 1927 to administer the interests of independent producing 8,59% of the total crop. With the growth of economic sugarcane growers. CANEGROWERS is a Section 21 Company development and empowerment of previously disadvantaged (incorporated not for gain) and individual growers are members people, the participation of black farmers in sugarcane production through the 26 grower groups which make up the member is constantly increasing. organisations of CANEGROWERS. In each mill area all member organisations are represented by a Local Grower Council. There are approximately 1 550 large-scale growers (inclusive of 378 black emerging farmers) who produce 84,69% of total sugarcane The democratic nature of the representation structure allows for the production. Milling companies with their own sugar estates produce election of any individual cane farmer to the Executive Committee or 6,72% of the crop. Chairmanship of the organisation. This, typically, would be through a region's Local Farmers' Association, its Local Grower Council, the centrally based Board of Directors (54 members) from which a Chairman and Vice-Chairman are elected annually, and finally to the Executive Committee (11 members). An Executive Director, management team and staff administer the day to day business of CANEGROWERS, to: • Ensure that cane growers receive fair value for their sugar cane.
• Provide cane growers with relevant research, data and support services to facilitate successful farming regions.
• Ensure that CANEGROWERS is recognised by all stakeholders as the duly mandated and effective representative of all cane growers in South Africa. CA N E G ROWERS
13 14
MILLING & REFINING & REFINING MILLING SUGAR
Four KwaZulu-Natal Province. the remainderofmillsarelocatedin are locatedintheMpumalangaProvincewhile owned byTsb Ltd SugarHoldings(Proprietary) (Pty) Ltdownonemilleach.Two ofthemills Ltd, UCLCompanyLtdandUmfoloziSugarMill owns threemills.GledhowSugarCompany(Pty) each whileTsb Ltd SugarHoldings(Proprietary) Ltd andTongaat HulettSugarLtdownfourmills KwaZulu-Natal andMpumalanga.IllovoSugar and atthecompanies’administrationofficesin upwards of7000peoplein14sugarmills employs The millingsectoroftheindustry Ltd raw and producetheirownrefinedsugar. Partofthe Tongaat Maputo, the balanceisexportedviasugarterminalin industry partnership. industry derivatives, althoughtheseactivities areoutsidethe andits products suchasethylalcoholand furfural others oneofthemillsproduces arangeofother integrated sugarmillingoperations. Amongst export. African SugarAssociationTerminal prior to Here direct consumptionrawsugar, isroutedtoDurban. companies forexportsofbaggedrefinedsugaror the remaining mills that is not used by the milling is sugar of it refined is the Diversity Hulett Mozambique. either produced mills at the Sugar refined is are Malalane the by known Ltd The key Tsb at or factor raw the “white Sugar as stored sugar central “white in Holdings end” today’s at produced refinery end” the mill, highly South (Pty) mills and of at THE SOUTH AFRICAN SUGAR Tsb Sugar Holdings (Pty) Ltd Tsb Sugar Holdings (Pty) Limited operates three sugar mills two of MILLERS’ ASSOCIATION LIMITED which have refineries, a packaging plant, sugar estates, cane and sugar transport and an animal feed division. This Association represents the interests of all sugar millers and refiners in South Africa. The Association's objectives GLEDHOW SUGAR COMPANY (PTY) LIMITED cover partnership administrative matters, legislative measures affecting the industry, and support for training and scientific and On the 10 September 2009 Gledhow Sugar Company (Pty) Ltd technological research. came into being. The company ownership is comprised of supplying growers with 25.1% equity; a long established miller (Illovo Sugar Ltd) The Association is administered by an executive director and staff who with 30.0% equity; a paper manufacturer (Sappi Ltd) with 10% equity, undertake these activities and who interact with the other organisations and a BEE partner (The Sokhela Family Trust) with 34.9% equity. The on matters concerning the industry, particularly CANEGROWERS and mill has a 35 ton per hour refinery and produces EEC2 quality sugar. the South African Sugar Association. UCL COMPANY LIMITED The members of the South African Sugar Millers' Association Limited are: UCL Company Ltd operates a sugar mill, a wattle extract factory, two saw mills, a number of mixed farms and a trading division. ILLOVO SUGAR LIMITED UMFOLOZI SUGAR MILL (PTY) LIMITED Illovo Sugar presently operates four sugar mills in South Africa, one of which has a refinery and two which have packaging plants. It has three The Umfolozi Mill is owned by two shareholders. The first is a group cane growing estates and, in addition to producing speciality sugars of cane growers with cane growing interests comprising a large cane and syrup, also produces a variety of high-value downstream products. growing company to the south, the largest cane grower in northern KwaZulu-Natal and an unlisted public company whose shareholders grow sugar cane on the Umfolozi flats. The second is a large alcohol TONGAAT HULETT SUGAR LIMITED producing company in Durban. Tongaat Hulett Sugar Limited operates four sugar mills in South Africa two of which have packaging plants, a central refinery in Durban M ILLI NG & RE F I N which has its own packaging plant, various sugar estates and an animal feeds operation. 15 16
SA SUGAR ASSOCIATION SOUTH AFRICAN SUGAR ASSOCIATION
The South African Sugar Association (SASA) provides a range purposes. This analytical chemistry service assesses the recoverable of specialist services that enhance the profitability, global value content in cane delivered to the mill by growers, providing a competitiveness and sustainability of the South African sugar neutral and objective basis on which to calculate recoverable value industry. payment by miller to grower. The CTS also provides a technical audit of the distribution between millers and growers ensuring fair and The Industry Affairs, Cane Testing Service, National Market, International equitable division of proceeds. Marketing and External Affairs divisions of SASA serve in support of the Sugar Act and the Sugar Industry Agreement, and SASA also operates the Sugarcane Research Institute and the Shukela Training Centre. NATIONAL MARKET These divisions, as well as the internal support functions within SASA, The division is responsible for managing industry matters that are described in more detail below. affect the national market for sugar including statistically analysing sugar sales, supplies and demand, researching drivers of sugar INDUSTRY AFFAIRS demand, administering aspects of SACU/SADC sugar agreements, the administration of industrial rebates. Administrating and facilitating adherence to the Sugar Act, the Sugar Industry Agreement and the SASA Constitution, is the responsibility of SASA’s Industry Affairs Division. INTERNATIONAL MARKETING Joint decision-making on all matters affecting the partnership that The marketing, sales and logistics related to South Africa’s bulk fall within the scope of the legislation and agreements governing the raw sugar is performed by the International Marketing Division. industry is undertaken by grower and miller representatives through The division focuses on achieving maximum net proceeds within their participation in the meetings of the SASA Council and its numerous an acceptable level of risk. The raw sugar is sold to refineries in the committees. The Industry Affairs Division is responsible for the East, Middle East and the United States, either directly or through administration of this important and complex decision-making process. international trade houses. Price risk is managed by hedging the value of raw sugar exports on the InterContinental Exchange ICE US Futures The division’s key performance areas include Partnership Support and No 11. Bulk raw sugar is exported through SASA’s Sugar Terminal Secretariat services, responsibility for the Division of Proceeds and in Durban and the STAM Terminal in Maputo, in which SASA is a Grower Administration. shareholder.
CANE TESTING SERVICE EXTERNAL AFFAIRS N SA S UG AR ASSOCIATIO The Cane Testing Service (CTS) provides a specialist service under This division operates in a range of areas that require specialist external contract to individual Mill Group Boards to determine the quality communication skills, with a focus on international and regional trade of individual grower cane deliveries to the mill for cane payment issues, renewable energy, environment, development, land reform, 17 nutrition, stakeholder communication, and specialised publications. The division also administers the Sugar Industry Trust Fund for Education. External Affairs is responsible for the development and maintenance of stakeholder relationships and the monitoring of local, regional and global trade policies affecting the South African sugar industry. This includes representation on the International Sugar Organisation, the Global Alliance for the Liberalisation of Sugar Markets, the SADC Technical Committee on Sugar, and the World Sugar Research Organisation. External Affairs also liaises with other relevant international organisations such as the World Trade Organisation, Food and Agriculture Organisation and the International Fund for Agricultural Development. The work programme addresses a wide range of key audiences through direct contact with private enterprise, government and non-governmental organisations.
SOUTH AFRICAN SUGARCANE RESEARCH INSTITUTE The South African Sugarcane Research Institute (SASRI) is the leading sugarcane agricultural research institute in Africa. The Institute is world- renowned for its research into the development of new sugarcane varieties and improvement of crop management and farming systems to enhance profitability. Effective delivery of new knowledge and technology make a significant contribution to the sustainability of the industry. Research at SASRI is clustered within four multi-disciplinary programmes: • Variety Improvement seeks to breed and select high yielding, pest and disease resistant varieties that meet industry requirements, using both conventional breeding and modern molecular N SA S UG AR ASSOCIATIO technologies. Improved efficiency in variety production is a key focus area. 18 • Crop Protection research is aimed at minimising the impact of weeds, pests and diseases on crop yields in environmentally and economically sustainable ways. Emphasis is placed on the integrated use of management practices on biosecurity issues through the development of proactive countermeasures and threat-specific incursion plans. • The Crop Performance and Management programme focuses on enabling production of high quality sugarcane through optimal choice of varieties, appropriate use of ripeners, herbicides and fertilisers for enhanced soil sustainability, as well as efficient use of water and improved harvesting practices. • The Systems Design and Optimisation programme is directed towards investigating and developing innovative systems that optimise crop production through modeling, technology design and a farming systems approach. Development of appropriate technology transfer tools and practices is recognised as fundamental to improved adoption of research advice and sustainable sugarcane production. SASRI’s extension service provides the essential link between SASRI researchers and farmers through consultation and feedback. Extension’s role is to facilitate the adoption of technology and better management practices that encourage responsible and sustainable land use and deliver optimal productivity and profitability. The extension service also communicates stakeholder needs back to SASRI. A range of specialist and advisory services is provided to the industry. These services include biosecurity, biosafety, quarantine facilities and expertise, alien invasive weed biocontrol, crop forecasting, climate and related data, real time irrigation advice, specialist advice on policy development and implementation, GIS and mapping support. Other services are provided on a user-pays basis including specialist advice on grower problems as well as soil and leaf analyses through the Fertiliser N SA S UG AR ASSOCIATIO Advisory Service (FAS), an RSD diagnostic service, variety fingerprinting and testing of new agrochemicals. Short courses in Sugarcane Agriculture at the junior and senior levels are also held annually. 19 SHUKELA TRAINING CENTRE of the Sugar Industry Laboratory Information Management Systems (LIMS) utilised by all sugar mills within South Africa. LIMS is designed With the slogan 'Training today’s people for South Africa’s tomorrow', to manage growers’ estimates and allocations, and provides the the Shukela Training Centre (STC) is the preferred provider of source data for determining payments for sugar deliveries by growers. agricultural and engineering training to the sugar industry. Autolab also develops and maintains the systems that track sugarcane The Agricultural Training Department focuses on the sugar industry and through the milling process for the purpose of sampling and testing provides skills based training to all sugarcane farmers. The courses take by the mills and Cane Testing Service (CTS) laboratories. place on the farms and the training has a high practical component and The Information Systems Department provides technical support to can be of benefit to new entrants into sugarcane growing, established computer users in the SASA divisions. The department is responsible commercial and small-scale growers and farm workers. for the design, implementation and maintenance of all computer network services. The weekly processing of the Industrial Systems that Engineering training is carried out at the Shukela Training Centre determine cane payment amounts for growers who have delivered based in Mount Edgecombe, where accommodation is available for sugarcane to the mills is also performed by the department. the learners. The Centre proudly boasts training equipment that spans the progress of technology. Learners are trained in electrical, Umthombo Agricultural Finance provides savings facilities and electronics, fitting, millwright, refrigeration and welding trades. Being administers loans for small-scale growers in the KwaZulu-Natal, Eastern a de-centralised trade test centre, apprentices can sit their trade tests Cape and Mpumalanga provinces in South Africa. once they have completed their apprenticeship training. The Centre is also accredited to train and test for the Electrical Installation Certificate HUMAN RESOURCES of Competency. STC holds overall accreditation with the AgriSETA and has programme approval with many other SETAs including the As a provider of specialist services, SASA's performance and service MERSETA, CHIETA and ESETA. levels are highly reliant upon the performance and service of SASA's employees. The diversity of the skills SASA employs, ranging from high- level specialists to unionised industrial and agricultural labour, and FINANCE the wide geographical spread of our operations, makes the effective SASA’s Finance Division provides Management Accounting, Financial management of people, their knowledge and their performance Accounting, Taxation, Corporate Governance, Treasury, Payroll, particularly important. Procurement, Facilities Management and associated administration In support of this need, the Human Resources Division provides a services to SASA. It is also responsible for monthly and annual financial comprehensive range of services to managers and employees in SASA, N SA S UG AR ASSOCIATIO reporting to the industry. The Treasury function includes the obtaining all of which aim to resource the organisation with highly competent of all funds for industry requirements, for example carry-over stock and and effective people who are committed to serving the best interests foreign exchange risk management. of the South African sugar industry. 20 Through Autolab, the division provides expert support and development F ACTS & FIGURES
21 FACTS & FIGURES 22
FACTS & FIGURES
TONS TOTALPRODUCTION CANE/SUGAR 3 000 1 000 1 500000 2 000 2 500000 500 000 0 97/98 2 403 630 98/99 99/0000/0101/0202/0303/0404/0505/0606/07 07/0808/0909/10 2 638 156 TOTALPRODUCED:SUGAR SALEABLE 2 524 660
2 721 562 1997/1998 2 403 243 2 754 619 SEASON
2 412 031 2010/2011 to 2 226 869 2 500 504 2 226 853 2 273 499 2 260 244 2 178 450 10/11 1 909 236 2010/2011 2009/2010 2008/2009 2007/2008 2006/2007 2005/2006 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 Season TOTALPRODUCTION:CANE/SUGAR 16 015649 18 655089 19 255404 19 723916 20 278603 21 052266 19 094760 20 418933 23 012554 21 156537 23 876162 21 223098 22 930324 22 154775 crushed 1997/1998 Cane 1 583457 1 412273 1 438587 1 399657 1 340524 1 261808 1 210416 1 356400 1 278720 1 239651 1 231442 1 194763 1 285001 1 310352 National 2010/2011 to Market Saleable sugarproduced International 1 238696 1 016453 1 055631 1 475899 1 163592 1 490120 1 329897 1 353155 1 093278 325 779 766 177 821 657 873 842 886 329 Market 1 909236 2 178450 2 260244 2 273499 2 226853 2 500504 2 226869 2 412031 2 754619 2 403243 2 721562 2 524660 2 638156 2 403630 Total CROP DATA Hectares (‘000) 250 280 295 325 355 430 265 310 340 370 385 400 415 445 96/97 * estimate 299 655 411 297 97/98 98/9999/0000/0101/0202/0303/0404/0505/06 06/07 296 576 421 038
316 357 416 820
313 294 421 637 1996/1997 Hectares Hectares 322 858 428 822 TOTALCROP AREA:
325 704 431 771 harvested 321 234 430 106 under 2010/2011 to
325 956 426 861 sugarcane for 316 010 424 907 milling 318 856 423 960
419 463
305 600 07/08 08/0909/10
307 380 412 979
287 380 388 655
278 133 381 838 10/11
* 279 535 382 721 2010/2011 2009/2010 2008/2009 2007/2008 2006/2007 2005/2006 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 Season Sucrose Sucrose 14,14 13,68 13,69 13,47 12,92 13,74 13,52 13,70 13,71 13,11 13,08 13,77 13,36 12,63 Cane % cane to cane to 1997/1998 sugar 1 ton 1 ton Tons 8,35 8,53 8,49 8,64 9,07 8,40 8,54 8,44 8,33 8,83 8,77 8,38 8,67 9,18 CROP DATA:CROP 16 015649 18 655089 19 255404 19 723916 20 278603 21 052266 19 094760 20 418933 23 012554 21 156537 23 876162 21 223098 22 930324 22 154775 Yields Tons cane crushed 2010/2011 to 1 919116 2 187542 2 269087 2 281765 2 235287 2 507203 2 234898 2 419287 2 762885 2 395566 2 729219 2 531805 2 646172 2 412914 Tons sugar made harvested harvested Yields per hectare hectare 66,74 67,67 68,70 64,17 66,36 66,02 60,42 62,64 71,64 64,96 73,95 67,74 72,48 74,70 cane of of to Rainfall Rainfall (mm) 1026 1001 1306 1101 June 887 973 941 982 921 898 792 850 894 801 May
23 FACTS & FIGURES SUGARCANE CRUSHED BY MILLS (TONS)
SUGARCANE CRUSHED: 2004/2005 to 2010/2011 REGION 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 NORTHERN IRRIGATED Malalane 1 551 272 1 646 458 1 526 932 1 673 411 1 731 056 1 656 847 1 614 815 Komati 1 978 632 2 090 988 2 102 157 2 278 334 2 362 732 2 280 798 2 236 546 Pongola 1 370 009 1 419 079 1 379 011 1 307 361 1 186 787 1 126 893 1 135 497 Total Northern Irrigated 4 899 913 5 156 525 5 008 100 5 259 106 5 280 575 5 064 538 4 986 858 ZULULAND Umfolozi 1 072 527 1 197 851 1 113 986 1 033 108 1 045 080 1 066 417 1 113 655 Felixton 2 010 329 2 287 595 2 139 239 1 843 728 1 737 101 1 642 987 1 468 070 Amatikulu 1 690 400 1 613 631 1 560 434 1 415 976 1 527 579 1 288 510 994 842 Total Zululand 4 773 256 5 099 077 4 813 659 4 292 812 4 309 760 3 997 914 3 576 567 NORTH COAST Darnall 1 261 744 1 353 382 1 224 859 1 075 048 1 098 962 1 144 455 672 676 Gledhow (KwaDukuza) 1 094 491 1 184 415 1 196 391 1 181 104 914 079 1 154 811 846 208 Maidstone 1 393 182 1 309 502 1 346 956 1 170 597 1 222 829 890 355 690 368 Total North Coast 3 749 417 3 847 299 3 768 206 3 426 749 3 235 870 3 189 621 2 209 252 MIDLANDS Eston 1 074 963 1 306 057 1 267 501 1 409 281 1 342 575 1 207 697 1 008 379 Noodsberg 1 064 756 1 512 304 1 449 050 1 450 009 1 321 382 1 430 770 1 263 964 Dalton 629 994 792 473 722 445 670 076 715 525 754 186 685 126 Total Midlands 2 769 713 3 610 834 3 438 996 3 529 366 3 379 482 3 392 653 2 957 469 SOUTH COAST ACTS & F I GU RES Sezela 1 946 179 2 164 689 2 088 586 2 071 265 2 056 164 1 955 481 1 576 815 F Umzimkulu 956 282 1 173 842 1 161 056 1 144 618 993 553 1 054 882 708 688 Total South Coast 2 902 461 3 338 531 3 249 642 3 215 883 3 049 717 3 010 363 2 285 503 24 TOTAL 19 094 760 21 052 266 20 278 603 19 723 916 19 255 404 18 655 089 16 015 649 1000 1200 1400 SA SUGARUPPLIESINTOSACU MARKET 600 800 200 400 0 97/98
sales CONTRACT 1 334 589 861 98/99 99/0000/0101/0202/0303/0404/0505/06 06/0707/0808/0909/10 direct 1 220 380 tons 273
1 230 045 & SA SUGARSALES/TONS: 1 311 096 2010/2011 TO 1997/1998
1 227 215 Sales 2010/2011
56% 1 412 795
1 101 602
43,9% 1 267 979
1 327 793
1 345 570 675 industrial 1 362 555 tons 882 sales 1 427 062
1 498 852 10/11 1 550 077 1998/1999 2000/2001 1999/2000 2001/2002 2003/2004 2002/2003 2004/2005 2006/2007 2005/2006 2008/2009 2007/2008 2009/2010 2010/2011 Season 1 072230 1 069494 1 066168 1 140308 1 218766 1 073867 1 121273 1 112153 1 162113 1 121263 1 191342 1 230945 926 951 White (tons) sugar SA SUGARSALES/TONS: 1998/1999 160 551 148 150 170 788 194 029 161 047 174 651 215 640 194 112 241 292 224 297 264 949 319 132 307 510 Brown (tons) sugar 811 591 808 884 879 529 924 146 819 273 670 214 810 017 785 538 784 293 771 216 822 224 861 273 867 616 Direct (tons) sales 2010/2011 to 66,0 66,3 67,1 65,4 66,8 60,4 61,0 61,9 57,6 57,3 57,6 56,0 57,9 % Industrial 418 454 411 496 431 567 488 649 407 942 431 388 517 776 482 441 578 263 574 354 604 838 675 882 631 236 (tons) sales 34,0 33,7 32,9 34,6 33,2 39,1 39,0 38,0 42,4 42,7 42,4 43,9 42,1 % consumption consumption Per capita Per capita 31,2 32,0 31,1 31,9 31,9 31,9 32,4 32,3 34,9 33,6 35,8 34,3 34,7 (kg) 25 FACTS & FIGURES RECOVERABLE VALUE AND CANE PRICES
RECOVERABLE VALUE AND CANE PRICES RECOVERABLE VALUE (RV) AND CANE 1999/2000 TO 2010/2011 PRICES 2010/2011
Season Recoverable Value* Cane
1999/2000 971,09 121,36 per ton 2000/2001 1 105,00 130,50
2001/2002 1 352,14 160,23 R331,55 R2 572,14 2002/2003 1 368,79 171,78 RV Cane 2003/2004 1 357,01 169,08
2004/2005 1 297,19 159,55
2005/2006 1 389,80 173,59
2006/2007 1 701,86 198,78 * From 2000/2001 payments to growers 2007/2008 1 701,90 208,82 are on a recoverable value basis (previously on a sucrose basis). 2008/2009 2 011,18 251,00 Figures reflected for ACTS & F I GU RES prior seasons are F 2009/2010 2 284,20 284,15 estimates based on the new payment system. 26 2010/2011 2 572,14 331,55 DIRECTORY 2011/2012 Y DIRECTOR
27 SA SUGAR ASSOCIATION Cane Testing Service Regional Managers Region Tel Cell Email Kwa-Shukela, 170 Flanders Drive, Mount Edgecombe 4300 North: P Naidoo 031 508 7148 082 650 8448 [email protected] PO Box 700, Mount Edgecombe 4300 (Felixton, Komati, Malalane, Pongola, Umfolozi) Telephone 031 508 7000 South: K Naidoo 031 508 7142 082 653 6845 [email protected] Fax 086 686 1172 (Eston, KwaDukuza, Web www.sasa.org.za Maidstone, Amatikulu, Darnall, Noodsberg, Sezela, Executive Director: MK Trikam Umzimkulu) 170 Flanders Drive, Mount Edgecombe 4300 Telephone 031 508 7003 Cane Testing Service Managers Email [email protected] Region Tel Cell Email Amatikulu: T Matthews 035 331 1235 082 654 5706 [email protected] Darnall: T Matthews 032 486 1391 082 654 5706 [email protected] Industry Affairs Industry Affairs Executive: Vacant Eston: C Govender 031 781 8327 071 851 2574 [email protected] 170 Flanders Drive, Mt Edgecombe 4300 Felixton: N Pillay 035 791 5020 082 653 6843 [email protected] Telephone 031 508 7081 Komati: JB Mhlongo 013 723 4152 082 654 5436 [email protected] Email [email protected] KwaDukuza: A Maharaj 032 551 3031 082 653 6846 [email protected] Maidstone: A Maharaj 032 944 6637 082 653 6846 [email protected] CANE TESTING SERVICE Malalane: DM Harris 013 791 1224 082 328 0014 [email protected] General Manager: S Naidoo 170 Flanders Drive, Mount Edgecombe 4300 Noodsberg: V Mohabir 033 501 1479 082 651 7359 [email protected] Pongola: J Dheopursad 034 413 8165 083 291 6665 [email protected] Telephone 031 508 7141 Sezela: M Cele 039 975 1106 071 853 4879 [email protected]
N SA S UG AR ASSOCIATIO Cell 082 654 3552 Umfolozi: FAM Mathaba 035 550 0531 071 851 2461 [email protected] Email [email protected] Umzimkulu: M Cele 039 682 1333 071 853 4879 [email protected] 28 Rebates Administration: SASA UnitedKingdom Export RelationshipManager: Trading Desk: International Marketing 170 Marketing Director:MC MARKETING National MarketSupportManager: National Market Email Telephone Email Telephone Email Telephone Email Telephone Email Telephone Flanders Drive,
M Osborn Mount
Cutts D Edgecombe Dukkan R Bell
[email protected] N [email protected] [email protected] [email protected] 4300 Makuraj [email protected] +44 1264335128 031 5087104 031 5087124 031 5087102 031 5087101 PO SHUKELA External AffairsDirector: EXTERNAL AFF PO 25 LeucharsRoad,Durban4001 SA Sugar 170 Tour Centre Engineering Training Manager: Agricultural Training Manager: General Manager: Email Fax Telephone Email Telephone Email Telephone Telephone Box Box Flanders 23, 61104, T TRAINIG CENTRE (Pty) Ltd Mount erminal Drive, Bishopsgate AIRS Edgecombe Mount TJ Bamber JM Edgecombe 4008 van 4300 der B E [email protected] [email protected] Ndiweni Maharaj Merwe 4300 [email protected] 031 5023520 031 5087700 031 5087025 031 3658153 031 3658100 031 5087701 031 5087736 031 5087719 29 SA SUGAR ASSOCIATION SOUTH AFRICAN SUGARCANE RESEARCH INSTITUTE SA Sugarcane Research Institute Extension Specialists SASRI Director: CM Baker Tel Cell Email Kwa-Shukela, 170 Flanders Drive, Mount Edgecombe 4300 SASRI Mount Edgecombe Extension Manager: 031 508 7492 082 654 0056 [email protected] Private Bag X02, Mount Edgecombe 4300 GW Maher Telephone 031 508 7400 Extension Technology Resource Specialist: 031 508 7491 082 654 3547 [email protected] Email [email protected] BSZ Bengu Web www.sasa.org.za/sasri South Coast Region Regional Extension 039 975 1377 083 655 5012 [email protected] Manager: D McElligott Direct Contact Details Extension Specialist: If the area of operation you are looking for is not listed, Small-scale Growers: 039 975 1377 082 613 8819 [email protected] phone 031 508 7400. Joe Nkala Regional Extension Direct Contact Email Tel (031) Specialist: South 039 682 1822 082 653 3151 [email protected] Coast: J Bowley Director [email protected] 508 7404 Extension Specialist: Liaison [email protected] 508 7567 Midlands South: 031 781 2001 082 654 3546 [email protected] AO de Haas Extension [email protected] 508 7492 Extension Specialist: Diagnostic Small-scale Growers: 031 302 2847 082 655 0356 [email protected] and Analytical [email protected] 508 7528 WA Gillespie Services North Coast Region Regional Extension Specialist 032 947 1410 – – Advisory [email protected] 508 7401 Manager: Vacant Requests Extension Specialist: Durban North Coast: 032 947 1410 082 654 3536 [email protected] Library [email protected] 508 7514 IN Hlongwa Human Extension Specialist: [email protected] 508 7505 033 503 1818 082 654 3549 [email protected] N SA S UG AR ASSOCIATIO Resources Midlands North: David Wilkinson Education [email protected] 508 7405 Extension Specialist: 30 Biosecurity [email protected] 508 7459 Small-scale Growers: 031 302 2885 082 655 0358 [email protected] B Phewa SA Sugarcane Research Institute Extension Specialists SA Sugarcane Research Institute Extension Specialists (cont.) FINANCE Tel Cell Email Zululand Region Finance Director: AW Coreejes SASRI Mount Edgecombe Regional Extension 170 Flanders Drive, Mount Edgecombe 4300 Extension Manager: 031 508 7492 082 654 0056 [email protected] Manager: 035 772 5871 082 653 3150 [email protected] GW Maher Telephone 031 508 7050 RR Fortmann Extension Technology Email [email protected] Resource Specialist: 031 508 7491 082 654 3547 [email protected] Extension Specialist: BSZ Bengu Zululand Central and 035 337 1593 082 653 3147 [email protected] South Coast Region South: G Lagerwall Regional Extension HUMAN RESOURCES 039 975 1377 083 655 5012 [email protected] Extension Specialist: Manager: D McElligott 035 550 0097 083 320 9099 – Human Resources Executive: PJ Milner-Smyth Extension Specialist: Umfolozi: Vacant 170 Flanders Drive, Mount Edgecombe 4300 Small-scale Growers: 039 975 1377 082 613 8819 [email protected] Extension Specialist: 034 413 2120 083 655 5011 [email protected] Telephone 031 508 7011 Joe Nkala Pongola: M Adendorff Regional Extension Email [email protected] Extension Specialist: Specialist: South 039 682 1822 082 653 3151 [email protected] Small-scale Growers Coast: J Bowley 035 474 5217 082 653 3149 [email protected] Extension Specialist: (North/Pongola) Midlands South: 031 781 2001 082 654 3546 [email protected] JL Neen AO de Haas Extension Specialist: Extension Specialist: New Freehold 035 772 5871 082 653 3148 [email protected] Small-scale Growers: 031 302 2847 082 655 0356 [email protected] Growers (Zululand): WA Gillespie North Coast Region TR Masondo Regional Extension Northern Irrigated Region 032 947 1410 – – Manager: Vacant Extension Specialist: Small-scale Growers Extension Specialist: 031 790 0230 – – Durban North Coast: 032 947 1410 082 654 3536 [email protected] (Komatipoort) IN Hlongwa Vacant Extension Specialist: Extension Specialist: 033 503 1818 082 654 3549 [email protected] Midlands North: Small-scale Growers N SA S UG AR ASSOCIATIO David Wilkinson (Malalane) 031 790 0230 082 613 8819 [email protected] Extension Specialist: Joy Mngadi Small-scale Growers: 031 302 2885 082 655 0358 [email protected] 31 B Phewa SA CANE GROWERS’ ASSOCIATION Local Grower Council Secretaries (cont.) Eston: J Gurney, PO Box 112, Eston 3740 Kwa-Shukela, 170 Flanders Drive, Mount Edgecombe 4300 Telephone 031 781 2000 PO Box 888, Mount Edgecombe 4300 Fax 031 781 2003 Telephone 031 508 7200 Felixton: N Kok, PO Box 1338, Empangeni 3880 Fax 031 508 7201 Telephone 035 772 3110 Email [email protected] Fax 035 772 5477 Website www.sacanegrowers.co.za Gledhow: R Jeevanath, PO Box 55, Stanger 4450
Executive Director: DB Wayne; Telephone 032 437 4515 Director Regional Services: KM Hurly; Director Industrial Affairs: T Funke; Fax 032 551 5568 Director Economic Services: OC Finnemore Maidstone: U Hemraj, PO Box 770, Umhlali 4390
Telephone 032 944 2783 Local Grower Council Secretaries Fax 032 944 2787
Amatikulu: K Archibald, PO Box 413, Gingindlovu 3800 Mpumalanga: A du Preez, PO Box 1379, Malalane 1320
Telephone 035 337 1349 Telephone 013 790 0230
Fax 035 337 1481 Fax 013 790 0231
Darnall: A Jagessur, PO Box 79, Stanger 4450 Noodsberg: G Diack, PO Box 487, Wartburg 3233
CA N E G ROWERS Telephone 032 486 1519 Telephone 033 503 1818
Fax 032 486 1519 Fax 033 503 1822 32 Local Grower Council Secretaries (cont.) REGIONAL MANAGERS Pongola: D Bosman, PO Box 200, Pongola 3170 Northern Irrigated: J Murray 013 790 0305
Telephone 034 413 1215 North Coast: C Gillitt 032 947 0176
Fax 034 413 1299 South Coast: G Ducasse 039 682 5122
Sezela: W Gillham, PO Box 224, Sezela 4215 Zululand: G Sparks 035 772 3111
Telephone 039 975 2078 Midlands: Vacant 033 503 1820
Fax 039 975 2079 Tugela: B Nothard 035 337 1135 Umfolozi: J Viljoen, PO Box 179, Mtubatuba 3935
Telephone 035 550 0237
Fax 035 550 2489 GROCANE AGRICULTURAL FIRE
Umzimkulu: E Berry, PO Box 26639, Port Shepstone 4240 INSURANCE PRIMARY CO-OP LTD
Telephone 039 682 5122 170 Flanders Drive, Mount Edgecombe 4302 Fax 039 682 5420 PO Box 557, Mount Edgecombe 4300
Union: SP Love, PO Box 1, Dalton 3236 Telephone 031 508 7161 Telephone 033 501 1600 Fax 031 508 7169 Email [email protected] Fax 033 501 1187
Chairman: HF Eggers; Vice-Chairman: PB Richards; CA N E G ROWERS Administration Manager: DD Fregona 33 Chairman: DG MacLeod SA SUGAR MILLERS’ ASSOCIATION Managing Director: GJ Clark [email protected] LIMITED Continuous Improvement Executive: GB Dalgleish [email protected] Group Commercial Director: LW Riddle [email protected] Kwa-Shukela, 170 Flanders Drive, Mount Edgecombe 4300 Group Company Secretary & Corporate PO Box 1000, Mount Edgecombe 4300 Affairs Director: GD Knox [email protected] Telephone 031 508 7300 Group Finance Director: M Abdool-Samad (WEF 01/09/11) Group Human Resources Director: NM Hawley [email protected] Fax 031 508 7310 Group Operations Director: BM Stuart [email protected] Email [email protected]
Executive Director: DP Rossler; Company Secretary: KL Lansdell GROUP OPERATIONS SUGAR MILLING COMPANIES Agricultural Development: N Zwane [email protected] Agriculture: GS Trott [email protected] Commercial: GH Williams [email protected] Corporate Finance: WL Jackson [email protected] Export Marketing: ME Edwards [email protected] Financial Management: NT Williams [email protected] Group Performance: DG Coates [email protected] ILLOVO SUGAR LIMITED Information Technology: DA Schaller [email protected] Internal Audit: R Botha [email protected] Head Office: Illovo Sugar Park, 1 Montgomery Drive, Mount Edgecombe, KwaZulu-Natal Medical Consultant: Dr PH Canter [email protected] PO Box 194, Durban 4000 Procurement: R Brown [email protected] Strategy: C Rees [email protected] Telephone 031 508 4300 Sustainability & Corporate Citizenship: X Magojo [email protected] N IES M ILLI NG CO PA Fax 031 508 4499 Technical Services: SD Langton [email protected] Website www.illovosugar.com 34 Illovo Sugar (South Africa) Limited General Manager: E Lucht [email protected] Building 3C, Gleneagles Park, 10 Flanders Drive, Administration Manager: T Spencer [email protected] Mount Edgecombe, KwaZulu-Natal Cane Procurement Manager: J De Lange [email protected] PO Box 194, Durban 4000 Factory Manager: M Pousson [email protected] Human Resources Manager: E Sibiya [email protected] Telephone 031 508 4300 Fax 031 508 4310 Sezela Mill PO Sezela 4215 Regional Director (South Africa): DE Howells [email protected] Finance: JJR Lyall [email protected] Telephone 039 975 8000 Human Resources: SB Hlela [email protected] Fax 039 975 8296 Marketing: HR Hackmann [email protected] Raw Sugar Production: S Rau [email protected] General Manager: L Bachan [email protected]; Refined Sugar Production: GF Mann [email protected] Administration Manager: W Bennett [email protected] Agricultural Manager: E. Bruggemann [email protected] Eston Mill Factory Manager Downstream products: C Kruger [email protected] Private Bag 2, Eston 3740 Factory Manager: J Jansen van Rensburg [email protected] Human Resources Manager: C Gwala [email protected] Telephone 031 781 8300 Fax 031 781 8398 Umzimkulu Mill PO Box 59, Port Shepstone 4240 General Manager: V Pillay [email protected] Administration Manager: P Naidoo [email protected] Telephone 039 682 4202 Agricultural Manager: R Thompson [email protected] Factory Manager: D Pillay [email protected] Fax 039 682 4126 Human Resources Manager: D Madau [email protected] General Manager: B Holmes [email protected]; Noodsberg Mill Administration Manager: V Pillay [email protected] Private Bag X501, Dalton 3236 Agricultural Manager: G Shange [email protected] Factory Manager: Vacant N IES M ILLI NG CO PA Telephone 033 502 9500 Assistant Human Resources Manager: S Zuma [email protected] Fax 033 501 1109 35 TONGAAT HULETT SUGAR LIMITED TONGAAT HULETT SUGAR – REFINERY PO Box 1501, Durban 4000 Corporate Office: Private Bag 3, Glenashley 4022 Email [email protected] Amanzimnyama Hill Road, Tongaat 4399 Telephone 031 460 0102 Email [email protected] Telephone 032 439 4316 Executive Director - Refinery: R Govender; Factory Manager: M Moodley; Website www.huletts.co.za Technical Services Manager: C Lewis; HR Manager: T Campbell; Financial Manager: A Gobind; Technical Manager: N Padayachee Managing Director (SA): MN Mohale; Executive Director - Technology Management: DM Meadows; TONGAAT HULETT SUGAR – MARKETING, SALES AND Executive Director - Human Resources (SA): JD Bhana; DISTRIBUTION Executive Director - Business Services (SA): LJ Munro; PO Box 1501, Durban 4000 Commercial Manager (SA): MR Fell; Industry Affairs Manager (SA): TB Ngeleza Email [email protected] Telephone 031 460 0305 TECHNOLOGY AND ENGINEERING GROUP Private Bag 3, Glenashley 4022 General Manager - Marketing: PM Dickinson; Marketing Manager: No.1 Amanzimnyama Hill Road, Tongaat 4399 A Randeria; Trade Marketing Manager: R Zwane; Manager - Industrial Marketing/Cape Sweeteners: GB Armstrong; Email [email protected] Product Development Manager: Z Sithole; Telephone 032 439 4455 / 032 439 4342 HR Manager: Z Mohamed; Warehousing and Distribution Manager: SL Paul Operations Group Leader: PM Schorn; Projects Group Leader: R Govender; VOERMOL FEEDS (PTY) LTD Development Group Leader: C Jensen; PO Box 13, Maidstone 4380 Operations Specialist: R Rambaram; Email [email protected] Project Support Specialist: AB Hlatshwayo
N IES M ILLI NG CO PA Telephone 032 439 5599
Managing Director: PT Strydom; Technical Manager: 36 S Breytenbach; Business Services Manager: G Lovell AGRICULTURAL OPERATIONS (SA) Felixton Mill Off Watson Highway, Tongaat Estate, 4399 Private Bag X02, Felixton 3875 Private Bag X50, Tongaat, 4400 Email [email protected] Email [email protected] Telephone 035 791 5000 Telephone 032 438 3500 Engineering Manager: JP de Jager; Factory Manager: P Masinga; General Manager: P Russell; Cane Supply and Transport Manager: B Robertson Business Services Manager: MC Govender; Southern Region (Darnall/Maidstone) HR Manager: A Nkabane PO Box 5, Maidstone 4380 Northern Region (Amatikulu/Felixton) Email [email protected] Private Bag X02, Felixton 3875 Telephone 032 439 5511 Email [email protected] Regional Operations Manager: R Scott; Business Services Telephone 035 791 5000 Manager: G Maphumulo;Regional HR Manager: M Tucker; Cane Procurement - Commercial: D Armstrong; Regional Operations Manager: D van den Berg; Small Scale Growers Development Manager: W Ntshangase Business Services Manager: D Maharaj; Regional HR Manager: B Lane; Darnall Mill Regional Cane Supply Manager: D Beath; PO Darnall 4480 Small Scale Growers Development Manager: W Ntshangase Email [email protected] Amatikulu Mill Telephone 032 439 9111 Private Bag Amatikulu 3801 Factory Manager: N Simmonds; Production Manager: S Maharaj; Email [email protected] Supply Chain Manager: J van Niekerk Telephone 035 331 9000 Maidstone Mill Fax 035 331 1377 PO Box 5, Maidstone 4380 Engineering Manager: A Balouza; Email [email protected] N IES M ILLI NG CO PA Production Manager: S Zuma; Telephone 032 439 5511 Cane Supply and Transport Manager: L Viljoen Factory Manager: C Soji; Engineering Manager: C Lewis; Production Manager: N Rajoo; Supply Chain Manager: G Corson 37 Tsb Sugar Holdings (Pty) LIMITED Pongola Mill PO Box 23, Pongola 3170 Head Office: PO Box 47, Malalane 1320 Telephone 034 413 8100 Telephone 013 791 1000 Fax 034 413 8167 Fax 013 790 0769 General Manager: T D Endres
Email [email protected] MOLATEK ANIMAL FEEDS Website www.tsbsugar.co.za PO Box 47, Malalane 1320 Telephone 031 791 1036 Chief Executive Officer: JM du Plessis; Fax 031 790 0095 Director Finance: IG van der Walt; Email [email protected] Chief Operating Officer Agriculture: D van Rooy; Website www.molatek.co.za General Manager Human Resources: E le F Terblanche; General Manager Marketing: PC Harland; General Manager: GS du Plessis General Manager Corporate Affairs: VF Khoza; Durban Office Chief Operating Officer Manufacturing: ID van Niekerk PO Box 800, Mount Edgecombe 4300 Company Secretary: JF de Villiers 170 Flanders Drive, Mount Edgecombe 4300 Telephone 031 508 7320 Komati Mill Fax 031 508 7329 PO Box 69, Komatipoort 1340 Manager Sugar Industry Affairs: BJ Rogers Telephone 013 723 4860 Fax 013 723 4444 Telephone 031 508 7323 Fax 031 508 7329 General Manager: G Rolfe Export Manager: C Smit Malalane Mill Tsb SUGAR – Marketing, Sales and Distribution PO Box 47, Malalane 1320 Quality Sugars (Pty) Limited
N IES M ILLI NG CO PA Telephone 013 791 1000 PO Box 70741, Bryanston 2021 Fax 013 791 1231 Telephone 011 463 7688 Fax 011 463 7624 38 General Manager: JV Coetsee Managing Director Quality Sugars: PC Harland GLEDHOW SUGAR COMPANY (PTY) LIMITED UMFOLOZI SUGAR MILL (PTY) LIMITED
PO Box 55, Stanger 4450 Umfolozi Mill Private Bag X12, Mtubatuba 3935 Telephone 032 437 4400 Fax 032 552 1888 Telephone 035 550 7700 Fax 035 550 1145 Directors: DE Howells; PB McGrady; GO O’Connor; LW Riddle; Dr MP Sokhela; RH Tweedie; PC Wise Chairman: RG Tomlinson (Independent Non-executive Member); General Manager: B Govender; Vice-Chairman: RR Addison (Non-executive Director); Executive Vice Chairman: JPM de Robillard Chief Executive Officer: AT Wynne (Executive Director); Operations Director: AB Williamson (Executive Director) UCL COMPANY LIMITED
Head Office: PO Box 1, Dalton 3236 Telephone 033 501 1600 Fax 033 501 1187
Chairman: CE Klipp; General Manager: RB Lütge; Deputy General Manager: M van der Merwe; Assistant General Manager Agri Services: FM Eggers; Assistant General Manager Manufacturing: P Waldron; Assistant General Manager Subsidiaries: S Casey; Assistant General Manager Finance: H Tredoux; Production Manager: T Kistan; Engineering Manager: M Napier; N IES M ILLI NG CO PA Human Resources Manager: A de Vries 39 MILL GROUP BOARDS
Darnall: R Tayler (Chairman), PO Box 54, Darnall 4480 Malalane: L Stark, PO Box 1379, Malelane 1320 Telephone 032 439 2010 Telephone 013 790 1083 Email [email protected] Email [email protected] Eston: J Gurney, PO Box 112, Eston 3740 Pongola: D Bosman, PO Box 200, Pongola 3170 Telephone 031 781 2000/1 Telephone 034 413 1215 Email [email protected] Email [email protected] Sezela: H Cooper, PO Box 224, Sezela 4215 Felixton: S Schwartz, PO Box 1338, Empangeni 3880 Telephone 039 975 2078 Telephone 035 772 3110 Email [email protected] Email [email protected] Umfolozi: C Coetser, PO Box 179, Mtubatuba 3935 Gledhow: R Jeevanath, PO Box 55, Kwa-Dukuza 4450 Telephone 035 550 0237 Telephone 032 437 4515 Email [email protected] Email [email protected] Umzimkulu: E Berry, PO Box 26639, Port Shepstone 4240 Noodsberg: G Diack, PO Box 487, Wartburg 3233 Telephone 039 682 5121 Telephone 033 503 1818 Email [email protected] Email [email protected] UCL Company: SP Love, UCL Company Ltd MGB, PO Box 1, Komati: C Robertson, PO Box 98, Komatipoort 1340 Dalton 3236 Telephone 013 723 4305 Telephone 033 501 1600 Email [email protected] Email [email protected] Amatikulu: K Archibald, PO Box 413, Gingindlovu 3800
M ILL G RO U P B OARDS Maidstone: U Hemraj, Maidstone Mill, PO Box 770, Umhlali 4390 Telephone 035 337 1349 Telephone 032 944 2783 Email [email protected] 40 Email [email protected] RESEARCH ORGANISATIONS SOUTH AFRICAN SUGAR INDUSTRY AGRONOMISTS’ ASSOCIATION SUGAR MILLING RESEARCH INSTITUTE SA Sugarcane Research Institute, Private Bag X02, Mount Edgecombe c/o University of KwaZulu-Natal, Howard College Campus, 4300 Durban 4041 Telephone 031 508 7459 Telephone 031 273 1300 Email [email protected] Fax 031 273 1302 Email [email protected] Chairman: RA Stranack Web www.smri.org LABOUR ORGANISATIONS Chief Executive Officer: Dr J Dewar; Corporate Services Manager: BC Ngcobo; SUGAR MANUFACTURING AND REFINING EMPLOYERS’ Head Analytical Services: Dr R Simpson; ASSOCIATION Head Chemical Research: SN Walford; Kwa-Shukela, 170 Flanders Drive, Mount Edgecombe, 4300 Head Process Engineering: SB Davis PO Box 1000, Mount Edgecombe 4300 Industry Support Manager: GT Smith; Telephone 031 508 7300 Innovation & Knowledge Manager: AGJ Sachs Fax 031 508 7310
SOUTH AFRICAN SUGAR TECHNOLOGISTS’ ASSOCIATION Secretaries: South African Sugar Millers’ Association Limited c/o SA Sugarcane Research Institute, Private Bag X02, Mount Edgecombe 4300 NATIONAL BARGAINING COUNCIL FOR THE SUGAR Telephone 031 508 7543 MANUFACTURING AND REFINING INDUSTRY PO Box 472, Mount Edgecombe 4300 Fax 031 508 7420 Telephone 031 508 7331/2 Email [email protected] Fax 031 508 7339 Website www.sasta.co.za RESEARCH & LA B O U R Chairman: S Mdlalose; Vice-Chairman: E Sibiya; President: GT Smith; Vice-President: KA Redshaw; Secretary: Y Motala Administrator: D Macdonald 41 HISTORICAL HIGHLIGHTS 1848 Edmund Morewood plants the first 1949 Sugar Milling Research Institute (SMRI) 1974 Industrial Training Centre opened at sugarcane on the KwaZulu-Natal established Mt Edgecombe North Coast The formation of Grocane Fire Insurance 1975 Domestic consumption reaches 1853 First shipment of KwaZulu-Natal sugar Co-operative Limited by private growers one million tons to the Cape 1950 First bulk shipment of 5 750 tons of 1978 Variety N12, suited to high altitude 1861 Indentured workers from India arrive raw sugar regions on a two-year cycle released by 1865 First black owned steam mill at 1953 South Africa joins post-war International SASEX American Board of Missions station at Sugar Agreement (ISA) 1981 Bulk Sugar Facility established in Gauteng Amanzimtoti 1954 SASEX Extension service begins for domestic market 1896 Locusts destroy 40% of sugarcane crop 1955 Variety NCo376 released by SASEX, the 1983 Severe drought cuts production by 1900 Sugar output reaches 16 000 tons per dominant variety over the next 40 years 750 000 tons annum with 30 mills in operation and 1961 South Africa leaves British 1984 Price Stabilisation Fund borrowings reach 2 600 hectares under sugarcane Commonwealth but negotiates new R327 million 1910 Natal Sugar Association formed bilateral agreement to supply Britain Cane transport scheme transfers cost 1916 Agricultural News and Sugar Planters 150 000 tons annually responsibility to growers Gazette launched (Sugar Journal) 1962 New markets developed in Canada Quarantine glasshouse moved from 1920 Natal Sugar Millers’ Association founded and Japan Botanic Gardens to Mt Edgecombe 1925 Experiment Station (SASEX) established 1964 Bilateral agreement with Britain 1985 A and B pool systems introduced terminated and 165 000 tons 1927 South African Cane Growers' Association Record sugar production of Commonwealth Preference transferred to formed 2,370 million tons Swaziland with agreement on marketing 1936 Sugar Act promulgated and first Sugar 1986 Political sanctions lead to loss of 1965 Bulk Sugar Terminal erected with storage Industry Agreement published Canadian and USA markets capacity of 180 000 tons 1937 South Africa becomes foundation 1987 Small-scale grower production exceeds Sugar Industry Trust Fund for Education member of the first International Sugar 1,5 million tons (worth R51m) launched Agreement with quota of 209 000 tons Floods disrupt mills and cane areas in 1968 First N variety of cane – bred and 1939 Annual production reaches 475 000 KwaZulu-Natal selected in Natal – released by SASEX tons with 23 factories operating and 1988 N21 released – first eldana resistant 145 000 hectares under cane 1970 Molasses mixing plant installed at Bulk variety
Sugar Terminal HISTORICAL HI G HLI HTS 1945 Variety NCo310, with more than 40% 1989 R1 m project announced to expand more sucrose than other varieties, 1973 SASA launches Small Growers' Financial industry production by 300 000 tons Aid Fund with grant of R5 million released by SASEX 43 1990 Industry proceeds exceed R2 billion for 2000 Crop for 1999/2000 sets record at 2007 The production for the 2006/07 season one season 8,38 tons cane per ton sugar dips to the lowest level in 10 years with 1991 USA quota restored at 2,3% equating to 2001 Record crop in 2000/2001 at 2,226 million tons of sugar produced 26 000 tons per annum 2,729 million tons of sugar 2008 The Shukela Training Centre changes 1992 First year of four-year drought reduces Launch of Umthombo Agricultural from a division of SASA to a wholly production to 1,5m tons Finance (formerly Financial Aid Fund) owned subsidiary of SASA now called Shukela Training Centre (Pty) Ltd. Small Grower Development Trust 2002 SA chairs the International Sugar launched Organisation (ISO) for the first time SASA appointed as the implementing agent for a KZN Government fertiliser 1993 Drought in 1993/94 season reduces ISO Council held in Durban in May 2002 project whereby R60 million of fertiliser is production to 1,171 million tons 2003 Record crop of 2 763 000 tons of sugar distributed to embattled KZN small scale Variety N24 with excellent sucrose and 2004 Tongaat Hulett Sugar Ltd's Entumeni Mill growers yield under irrigation released by SASEX closes 2009 The 2009/2010 season production drops Transvaal Sugar Limited’s new mill near Industrial Training Centre (ITC) changes further to a 15 year low of 2,178 million Komatipoort starts crushing name to Shukela Training Centre (STC) tons of sugar 1994 Introduction of phased deregulation Illovo Sugar Ltd sells Gledhow Mill to a The world raw sugar market price reaches programme black empowerment group a 29 year high of 30.33 US c/lb Sugar Industry Central Board disbanded South African Sugar Experiment Station 2010 Sugar production for 2010/11 season 1995 Drought restricts production to (SASEX) changes name to South African dropped to 1,909 million tons 1,67m tons in 1995/96 Sugarcane Research Institute (SASRI) 150th Year Commemoration of the arrival of Indian people in South Africa R12 million Siyakha programme launched Inkezo Land Company established by President Mandela 2005 Illovo Sugar Ltd sells Umfolozi Mill to a 1996 Production increases to 2,2m tons black empowerment group – 1997 Illovo Sugar Ltd consolidates its leading Umvoti Transport Ltd position in southern Africa with the SASA purchases 25% share in Maputo acquisition of Lonrho’s sugar division for Sugar Terminal R1,62 billion. 2006 Highest world sugar price in 1998 Pools system of sucrose payments ends twenty-five years 1999 Record crop in 1998/99 at Opening of STAM Terminal in Maputo in
HISTORICAL HI G HLI HTS 2,646 million tons of sugar which SASA is a shareholder SASA moves into its own building in Sugar Journal turns 90 years old and Mount Edgecombe with Growers and publishes commemorative edition 44 Millers