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Amended Sugar Industry Regulations on Track

November 22, 2019

Department of Trade and Industry

22 November 2019

Amended Sugar Industry Regulations will be published in the Government Gazette before the end of December 2019.

The trade and industry department announced this during a recent briefing in parliament on progress on the review of the sugar industry regulations.

According to the department, the review was undertaken to improve the competitive environment in which the industry operates in order to contribute to the optimal development of the industry and inclusive growth, ensure the long term cost competitiveness of the industry and ensure the transformation, growth and sustainability of the local sugar industry.

Approved key amendments to the regulations by the South African Sugar Association include:

• Transitional Period – means from 1 April 2020 until 31 March 2024 or any later date determined in terms of clause 15(5). •
• The affairs of the Association shall be administered by a Council consisting of an independent Chairperson who meets the requirements set out in clause 15(9)(b) and 3 Vice-Chairpersons.
• Membership: The members of the Association shall be the South African Sugar Millers’ Association, South African Cane Growers’ Association and South African Farmers’ Development Association.
• SACGA and SAFDA shall each comprise half of the Growers’ Section and shall collectively comprise the Growers’ Section.
• Representation: Each Section shall be represented by 18 delegates, provided that SACGA and SAFDA shall each be entitled to appoint 9 delegates to the Growers’ Section.
• Grower representation in SASA will be shared equally by SAFDA and SACGA.
• Growers’ Statutory Costs means for the first year of the Transitional Period, the amount calculated by the sum of the costs of SACGA and SAFDA respectively approved by the Association’s Council for the 2019/2020 season, escalated on 1 April 2020 by a rate equal to the year on year change in the headline consumer price index.
• Voting – All questions arising at general and special meetings of the Association shall be determined by a majority representing at least two-thirds of the delegates present at the meeting, provided that such majority must include at least 1 vote from the Millers’ Section and the Growers’ Section and that the votes from the Growers’ Section must include at least 1 vote by a delegate representing SACGA and at least 1 vote by a delegate representing SAFDA.

The department also indicated that a Draft Sugar Industry Master Plan was taking shape.

Consensus was coalescing around a long-term vision centred on a “globally competitive, sustainable and transformed sugarcane value-chain and bio-economy that actively contributes to South Africa’s economic and social development, creating prosperity for stakeholders in the sugarcane value chain, the wider bio-economy, society and the environment.”

A Phase 1 Compact will focus on securing the market for the short-term, re-balancing industry capacity and diversification.