Sugar industry warns of R723m in loadshedding-induced losses for this year
Industry body SA Canegrowers has appealed to government to implement measures to mitigate the impact of loadshedding on sugarcane growers, warning that its data shows that the South African sugar industry is set to lose R723-million this year as a result of loadshedding.
"With milling giant Tongaat Hulett in business rescue and the destructive Health Promotion Levy [also known as the sugar tax] already hampering the industry, these losses are potentially catastrophic for growers and the industry’s workers," it states.
It points out that loadshedding is affecting 1 135 irrigated growers who employ more than 10 000 workers. An estimated 34% of South Africa’s sugarcane is produced in irrigated areas including Komatipoort and Malelane, in Mpumalanga; and Pongola, in KwaZulu-Natal.
Growers are expected to incur more than R189-million in additional energy costs this year on account of the disruption to irrigation schedules. Most irrigated growers in KwaZulu-Natal and Mpumalanga operate on a Ruraflex system, which allows them to pay a lower tariff for operating during low demand times.
But the converse also applies – growers pay a significantly higher rate for pumping during peak demand times. As a result of loadshedding, growers have been forced to irrigate whenever electricity is available, regardless of demand.
In addition to the increased cost of energy, growers also face yield losses as they have fewer hours of continuous energy supply. Growers need a minimum of six hours of continuous energy for proper irrigation.
As a result of the intermittency of the power supply, disrupting irrigation, irrigated growers will lose up to 40% water capacity. The resulting loss of yield could amount to more than R723-million.
SA Canegrowers’ scenario modelling shows that continuous loadshedding at Stages 4 to 6 will cost growers more than R723-million this year. An escalation to Stages 6 to 8 could cost the industry more than R1.8-billion.
"Anything beyond Stage 8 could cost the industry more than R2.4-billion," the industry body notes.
The continuation of loadshedding without any arrangement to enable irrigation will also have long-term implications, it adds.
"Sugarcane stalks left in the ground can produce cane for up to ten years. Insufficient irrigation not only reduces cane quality and causes yield losses, but it will also lead to increased stool mortality, significantly shortening the lifespan of the cane," it points out.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation