Africa-Press – South-Africa. CAPE TOWN – IN THE MIDST of the pandemic last year, the sugar industry had grown, Minister of Trade, Industry and Competition Ebrahim Patel said on Friday, at a meeting with farmers, millers, retailers, food producers and trade unions.
The meeting, which was held virtually, was to provide an update on progress of the recently signed Sugar Master Plan.
There had been a 15 percent growth in local sugar sales, in an industry that was previously described as facing crisis conditions, a statement said.
The industry saw increases in purchases of sugar from the retail and industrial sectors, which includes soft-drink manufacturers.
Patel said in spite of these successes, there were challenges that needed to be addressed speedily, to ensure further growth.
“The industry will need to improve its competitiveness and ability to successfully export to new markets while providing opportunities for small-scale farmers. The partnership with workers can be strengthened further,” he said.
Work on new markets and industrial applications could provide a long-term growth driver. In this context, the development of a biofuels industry was being considered, Patel said.
He said a recently concluded agreement with Coca-Cola Beverages South Africa had committed to buy more sugar from small-scale farmers, and this was an example of what could be done to broaden the base of the sector.
The master plan is part of the re-imagined industrial strategy and is the result of a process of engagement among industry stakeholders and social partners, particularly small and large cane growers, millers and refiners, retailers, industrial users of sugar, workers and the government.
As part of the master plan, industrial users and retailers have agreed to minimum off-take of sugar for three years; with at least 80 percent of sugar consumption to come from the local sugar industry, increasing to 95 percent by 2023. During this period, the sugar industry had agreed to price restraint, and to begin to restructure the industry to diversify its revenue sources.
Another key development was the gazetting of the Biofuels Regulatory Framework and Feedstock Protocol in 2020.
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