Steenhuisen Warns Sugar Industry Faces Immediate Crisis After Tongaat Hulett Liquidation

Agriculture Minister John Steenhuisen has raised alarm over the deepening crisis in South Africa's sugar industry following the liquidation of Tongaat Hulett, warning that urgent intervention is needed to prevent the shutdown of key sugar mills ahead of the April crushing season.

The Minister said the current uncertainty poses a direct threat to growers, workers and rural economies dependent on the sugar value chain.

Funding Impasse Threatens April Crushing Season

According to the Department of Agriculture, industry stakeholders have indicated that unless the funding deadlock is resolved swiftly, sugar cane growers may be unable to deliver their crop — potentially forcing milling operations to halt entirely.

Steenhuisen stressed that the risk is immediate and not hypothetical.

"This is not a theoretical risk; it is an immediate economic threat to rural communities," he said.

"If the mills do not open, farmers cannot harvest, workers cannot earn an income, and entire local economies will stall."

Thousands of Growers and Jobs at Stake

The Minister warned that failure to keep mills operational would have devastating consequences across the supply chain.

The crisis could affect:

• Approximately 15,500 delivering growers

• Between 35,000 and 40,000 livelihoods directly linked to mill operations and associated supply chains

"The longer the uncertainty persists, the greater the damage," Steenhuisen cautioned.

Agriculture Cannot Wait for Legal Timelines

Steenhuisen emphasised that agriculture functions under strict biological and seasonal deadlines, meaning delays in resolving financial or legal matters could result in irreversible production losses.

"The crop cannot wait. Agricultural production works on biological timelines, not legal or financial ones," he said.

"An intervention that unlocks funding and restores operational certainty is urgently required to protect both production and jobs."

Government Engaging Stakeholders to Prevent Collapse

The Minister confirmed that the Department of Agriculture is engaging with relevant government departments and financial stakeholders to support a practical solution that preserves production capacity and prevents long-term damage to the sector.

He reiterated that while government does not intend to interfere in commercial negotiations, it has a responsibility to ensure continuity in production.

"Our objective is not to intervene in commercial negotiations, but to ensure that a viable path forward exists so that growers can deliver cane, mills can operate, and workers can earn an income."

Sugar Industry Remains Strategic for Rural Economies

Steenhuisen highlighted that the sugar industry remains a strategic contributor to rural livelihoods and national food value chains, warning that a collapse in milling operations would have far-reaching social and economic consequences beyond the farm gate.

"The immediate priority must be keeping the season alive," he said.

The Ministry will continue monitoring developments closely and stands ready to facilitate further engagement aimed at safeguarding jobs, sustaining production and protecting rural communities.