The upward movement was largely driven by stronger global sugar prices and a weaker Rand/Dollar exchange rate. The weighted average No.11 world market price rose to US16,51c/lb from US15,34c/lb, while the weighted average exchange rate weakened to R16,46 against the US Dollar.

Industry estimates further indicate that the most likely RV price for the 2026/2027 season remains around R6 751 per ton, with projections ranging between R6 526 and R7 047 depending on market conditions.

For full RV price reports : https://sa-fda.org.za/rv-price/

The liquidation application, filed by the Business Rescue Practitioners in February 2026, was heard earlier today in Durban. During proceedings, the court considered arguments from all parties on whether provisional liquidation should be granted. In her ruling, Judge Rithy Singh acknowledged the wider socio-economic impact such a decision could have on KwaZulu-Natal, emphasizing that Tongaat Hulett remains a critical contributor to the province’s economy.

The matter has now been adjourned to 17 and 18 June 2026, allowing stakeholders time to explore a more sustainable resolution. SAFDA also welcomed the Industrial Development Corporation’s additional R200 million in Post Commencement Funding, which will assist THL in completing mill maintenance and preparing operations for the current crushing season.

For many small-scale and emerging sugarcane farmers, the adjournment brings temporary relief after months of uncertainty surrounding the future of THL mills. However, concerns remain over cash flow pressures, delayed payments, and operational planning as growers continue to navigate difficult conditions, including ongoing sugar imports impacting the local industry.

SAFDA says it will continue engaging all relevant stakeholders to ensure that farmers remain central to any long-term solution for the industry.

Read the full media statement below for more details.

The decline was mainly attributed to a downward revision of the Local Market Demand Estimate (LMDE) by 176,743 tons, which reduced local market proceeds by approximately R2.5 billion. The stronger LMDE recorded during the 2025/2026 season was largely influenced by the reintroduction of carry-over tonnages.

For full RV price reports : https://sa-fda.org.za/rv-price/

The agreement was signed during a meeting of the Executive Oversight Committee held at the sugar industry headquarters in Mount Edgecombe, Durban. The first phase of the Master Plan, launched in 2020, focused on stabilizing the industry during a period marked by challenges such as the sugar tax, Covid-19, social unrest, and economic pressures.

Led by the Department of Trade, Industry and Competition (the dtic), the Master Plan brings together key industry stakeholders to strengthen and protect the sugar value chain through a shared framework of commitments and responsibilities.

A key focus of the second phase will be supporting small-scale farmers, who remain central to the Master Plan process. SAFDA noted that small-scale growers continue to benefit from initiatives such as the Premium Price Payment, which provides around R70 million annually in additional support to farmers.

Speaking during the signing ceremony, SAFDA Executing Chairman Dr Siyabonga Madlala emphasized the need for diversification opportunities within the industry, including the potential production of bioethanol. He also reaffirmed SAFDA’s commitment to transformation and ensuring that small-scale farmers remain protected and included in future developments.

Phase Two of the Master Plan is expected to focus on areas such as trade protection, diversification, and the advancement of small-scale growers, while addressing ongoing industry challenges including sugar imports, global market pressures, and the financial instability facing some sugar millers.

Below are SAFDA’s five key expectations ahead of the address:

1. Action on Rising Sugar Imports

SAFDA remains deeply concerned that a sustained increase in sugar imports, if not carefully managed, will accelerate the exit of many local sugarcane growers from production.

When farm incomes decline, growers are forced to scale back operations, default on obligations, or abandon production altogether. This not only threatens livelihoods in rural communities but also weakens the long-term sustainability of the local sugar industry.

Government intervention is needed to ensure fair trade conditions while protecting domestic production capacity and jobs.

2. Clear Disaster Support Strategy for Farmers

SAFDA expects government to outline a clear disaster support strategy that prioritises infrastructure-led recovery, including the repair of irrigation systems, rural roads, and critical water and energy services.

Recent climate-related events have shown how vulnerable farming communities are to damaged infrastructure and disrupted services. Disaster relief must be targeted and accessible to small-scale farmers to prevent the erosion of hard-won transformation gains.

A responsive and practical disaster support framework is essential for safeguarding agricultural productivity.

3. Relief from Rising Input Costs

SAFDA expects the President to acknowledge the growing pressure that rising input costs are placing on farmers across the agricultural sector, particularly small-scale and emerging producers.

Escalating prices for fertiliser, fuel, electricity, animal feed, agrochemicals, and transport continue to erode farm profitability, leaving many producers struggling to remain viable.

Without targeted interventions, many farmers may be unable to sustain production, threatening both jobs and food supply chains.

4. Effective Rollout of the Foot and Mouth Disease Vaccine

The introduction of a locally available Foot and Mouth Disease (FMD) vaccine marks a critical turning point in South Africa’s efforts to control a disease that has disrupted livestock production, trade, and rural livelihoods.

While the development of the vaccine itself is a significant achievement, its impact will ultimately depend on how quickly, efficiently, and equitably it is rolled out to farmers across the country.

SAFDA expects government to provide clear timelines and implementation plans to ensure livestock farmers fully benefit from this breakthrough.

5. Progress on the Land and Agrarian Agency

SAFDA expects the President to update the nation on progress made towards the establishment of the Land and Agrarian Agency, which was announced during the 2021 State of the Nation Address and reaffirmed in 2022.

The establishment of the Land and Agrarian Agency remains central to the success of land reform, particularly in ensuring post-settlement support, coordinated development programmes, and access to finance for beneficiaries.

SAFDA believes meaningful progress on this commitment is long overdue.

As South Africa prepares for the State of the Nation Address, SAFDA hopes to hear clear commitments that place agriculture, rural development, and transformation at the centre of national priorities.

The success of farmers is directly linked to food security, economic growth, and the sustainability of rural communities. Strong leadership and decisive action are needed now more than ever.

“This is not because we do not know how to farm, but because we have not had a real opportunity to fairly participate and represent ourselves at industry level,” explains Siyabonga Madlala, Chairman of SAFDA.

With the official recognition of SAFDA and the gazetting of transitional arrangements, which will be in place until March 2020, the sugar industry has a unique opportunity to set the benchmark for other commodity organisations by harnessing the knowledge of black South Africans.

“Although it has been a long road to get this far, with some very difficult times being faced in the last three years since our formation, I believe that our struggle was not in vain. There have been many detractors along the way and even attempts to ruin our personal reputations. But we have remained steadfast in our cause, which is just and fair,” Madlala added.

What this means

The sugar industry is regulated by apartheid-era legislation of 1978, The Sugar Act, which gives rise to the Sugar Industry Agreement and the Constitution under which the sugar industry regulates itself.

The gazetting of the transitional arrangements today means the traditional set up, which has been in place for over 90 years, has changed. Historically, the industry has only recognized the South African Cane Growers Association as the only representative of sugarcane farmers in South Africa, which has not focused on the sustainability of black small-scale and land reform farmers.

Now, with the official recognition of SAFDA black farmers who have been at the periphery will now have a central role to play in ensuring their own sustainability.

“Recognition means that black growers have 50:50 representation on all decision-making structures in industry as well as in each of the mill areas,” he explained.

Black small-scale farmers represent about 90% of the sugar industry, but are only able to contribute about 10% of sugarcane production. Over the last two decades, there has been a rapid decline in small-scale sugarcane farmers, who numbered around 50 000 in the early 2000s but are today sitting at about 20 000.

This is clearly a concern – particularly when it is seen from the perspective of rural households and the rural economy (both formal and informal). This is at the heart of SAFDA’s focus areas of: Transformation, Land Reform and Small-scale Farmers, Grower Capacity Development, Grower Financing and Bulk Buying, Diversification and Value-Chain Participation.

“SAFDA’s primary focus is to grow the industry subject to meaningful participation by black growers in the value chain and diversification into ethanol, co-generation and bio-based products, among others. Meaningful participation means ownership, management and control of a diversified sugar industry,” Madlala explained

“I would also like to take this opportunity to thank our government and its officials for remaining true to its commitment to transformation. Without the focus of the Parliamentary Portfolio Committee of Trade and Industry, the dti and a few other key stakeholders who believed in the SAFDA vision, we would not have made the progress that we have made,” he concluded.

About us

The South African Farmers Development Association (SAFDA), which was established on 25 November 2015, is a registered not-for-profit development association of farmers.

The Association sees itself as a case for South Africa’s economic transformation in the agribusiness sector and a home for all progressive farmers – black and white, small, medium and large.

While serving the business interest of all its members, the Association pays special attention to improving profitability and sustainability of small scale and land reform farmers.

As part of its main functions the Association offers economic research and business advisory services, grower training and development, lobbying and advocacy for policies thereby ensuring the sustainability of all its members.

For more information, contact

Ronda Naidu

Communications Manager

rnaidu@sa-fda.org.za

031 508 7285