SAFDA REACHES AN AGREEMENT WITH SA CANEGROWERS ON INDUSTRY TRANSFORMATION INTERVENTIONS FUNDING

The South African Farmers Development Association (SAFDA) farmers embarked on a week-long picketing at all regional offices of SA Cane Growers’ Association (SACGA). Both SAFDA and SACGA are members of the South African Sugar Association (SASA), a statutory body representing the sugar industry in South Africa. Sugarcane is growing in the two provinces of KwaZulu-Natal and Mpumalanga.

While the agreed five years (one-billion-rand transformation plan) lapsed at the end of the 2023-2024 season, which ended on the 31  of March 2024, SASA Council approved an extension of the fund for one more season (2024-2025).  SAFDA put up a proposal suggesting that the funds be treated and disbursed in the same way as they have been disbursed in the past five years, especially the component that is influenced by the tons of sugarcane delivered by farmers. SAFDA made this proposal in order to spend less time debating the disbursement of a one season funding and focus on long-terms transformation plans of the industry, beyond the initial five-year plan. This proposal was not supported by some members of the industry, leading to delays in disbursements that forced farmers to stand up and demand answers. However, this impasse regarding the delivery-based transformation interventions funding was immediately resolved.

The agreement that was reached meant that SASA will go ahead and finalise the delayed disbursements for R238 987,00 set aside for the current season while allowing industry leaders time to engage in strategic discussions about future transformation initiatives in this industry. This was a significant and progressive step forward as it demonstrates commitment of the industry towards the sustainability of the farms and SAFDA thanks the collaborative efforts that made it possible. These payouts come at a time where they are most needed by these farmers. Farmers in our sector are paid according to cane deliveries depending on the length of the growing season as per the bioclimatic characteristics of their regions. At a minimum they get paid once per year, others once in two years where the growing cycle is 18 to 24 months. Most small-scale farmers use this money to support their farming operations with farming inputs.

SAFDA’s Executive Chairman, Dr Siyabonga Madlala, expressed his gratitude, stating, "I must appreciate your support and the fight that you put up for what is yours. I also appreciate the leadership of the SA Canegrowers Chairperson, Mr Higgins Mdluli, for facilitating with his side on this progressive outcome”. The Sugar Industry Transformation Interventions were introduced by the sugar industry in November 2018, championed by the South African farmers Development Association (SAFDA). The total agreed amount of the fund was R1 billion over five seasons, which translated to just over R200 million per season. Contributions making up the transformation fund are extracted from levies contributed by all sugar industry members.