Industry organisations the South African Farmers Development Association (Safda) and the South African Canegrowers Association (SA Canegrowers) have resolved their disagreement about transformation funding in the industry.

Industry body the South African Sugar Association (SASA) had convened an urgent meeting to find a solution to the impasse, after which the organisations found common ground regarding the transformation funding matter, SASA independent chairperson advocate Fay Mukaddam says.

All parties, including the South African Sugar Millers’ Association (Sasma), have now agreed on the allocation of the R238.9-million budget for the current financial season, which ends on March 31, 2025.

Over the past five years, as part of a five-year transformation plan, SASA has spent R1.12-billion on transformation interventions/initiatives, especially for the benefit of black small-scale growers.

The SASA five-year transformation plan, which ended in the 2023/24 season, has been extended to 2024/25 with an allocation of R238.9-million, Mukaddam points out.

“In retrospect and upon honest reflection, we realise the confrontational approach could have precipitated an industry crisis. We have, therefore, agreed that going forward, any disagreements emanating from divergence of views or positions, which is normal and bound to happen from time to time, need to be better handled.

“There is now complete alignment in terms of transformation funding,” says Mukaddam.

Further, industry leaders are now committed to working together to advance the interests of the sector and to ensure the main focus is on the Reimagined Cane Industry Strategy.

Additionally, industry leaders are unambiguous in their assertion in seeking to leverage the proposed second phase of the industry master plan to ensure more concerted efforts by all stakeholders to increase the optimisation of the local market, accelerate product diversification endeavours, permanently resolve the sugar tax issue, strengthen trade protection and cement the foundational role of small-scale growers in the sector.

She thanked Safda executive chairperson Dr Siyabonga Madlala, SA Canegrowers chairperson Higgins Mdluli and Sasma chairperson Rolf Lutge for the critical roles they played in breaking the deadlock, and for acting in the best interests of the industry and all its stakeholders.

“All the industry leaders regret the language and tone of the discourse that found its way to the public domain regarding the transformation funding stalemate,” Mukaddam says.