Iconic South African industry being decimated

SA Canegrowers has warned that an enormous surge in imported sugar has led to a 13% year-on-year drop in sales of local sugar.

This threatens to decimate an industry that supports an estimated 65,000 direct jobs and 270,000 indirect jobs in South Africa.

The South African sugar industry also generates an annual direct income of R25 billion, with the economies of KwaZulu-Natal and Mpumalanga heavily reliant on the industry.

On Tuesday, 4 November 2025, SA Canegrowers explained that South Africa has seen an unprecedented surge in heavily subsidised imported sugar in 2025.

The organisation said sugar imports in 2025 to date are already more than 400% higher than in 2024, which has directly led to a 13% year-on-year drop in local sugar sales.

“This 13% year-on-year drop in sales threatens to decimate the industry, and more needs to be done to halt sugar imports,” it said.

SA Canegrowers noted that, between January and August 2025, 149,099 tonnes of sugar were imported, compared to 35,730 tons during the same period in 2024.

“This more than 400% surge is due to weak protection measures, which were partly addressed in August when South Africa’s import tariff was adjusted to reflect the realities of a distorted global sugar market,” it said. 

Imported sugar has presented a major challenge to the local industry for years. Countries like Brazil and India heavily subsidise their sugar industry, particularly exported sugar.

According to SA Canegrowers, this results in sugar prices that do not reflect true production value, making it difficult for local producers to compete.

SA Canegrowers chairman Higgins Mdluli previously estimated that for every ton of imported sugar entering the South African market, the local sugar industry loses R6,000.

Now, the organisation said this has surged to a loss of R7,500 for every ton of sugar imported to South Africa.

Therefore, considering the drop in local sugar sales of over 100,000 tons, this equates to a loss of more than R760 million for the local sugar industry.

“Opportunistic importers bring this sugar into South Africa and sell the sugar at prices similar to locally produced sugar, thereby pocketing huge profits at no benefit to consumers,” it said.

“This leads to South African sugar being displaced, with foreign sugar taking up retail shelf space or being used by food and beverage producers.”

Sugar industry under fire

SA Canegrowers called on the government to enact stronger trade measures to protect the local industry. 

The country made significant strides earlier this year, when South Africa’s import tariff was adjusted to reflect the realities of a distorted global sugar market. 

However, SA Canegrowers said that even with the adjusted import tariff, heavily subsidised sugar is still flooding into South Africa.

This comes at a time when the industry can scarcely afford to lose, with the 30% United States tariff on South African products also coming into effect in 2025.

In July 2025, SA Canegrowers said it is deeply concerned about the impact this tariff will have on the country’s sugarcane industry.

Mdluli warned that the tariffs could further distort the market and worsen the competitiveness of South African sugar producers.

“It is important to stress that the South African sugar industry poses no threat to the US market, which relies on sugar from outside the US to meet local demand,” he explained.

“The US has, up until recently, had a quota system in place to ensure that the US retains full control over both the volume and price of imported sugar.”

Mdluli said local growers cannot afford to become even more uncompetitive in a very important export market due to punitive tariffs, whilst at the same time losing local market share due to unfair trade practices.

According to Trading Economics, South Africa’s exports of sugar and sugar confectionery to the United States totalled $20.58 million (around R360.3 million) in 2024.