Durban - Thousands of seasonal jobs are on the line in the drought-ravaged sugar industry with KwaZulu-Natal sugar cane growers losing R2 billion in revenue.
This is expected to increase once the season closes next month.
Richard Nicholson, economic research manager at South African Cane Growers Association, said on Monday the drought was one of the worst in 100 years with a 34% decrease in overall dryland (reliant on rain) cane production.
Using the previous season’s Large Scale Grower Labour Productivity Survey, the association estimated that more than 6 500 seasonal jobs would be lost.
Nicholson said these would be mainly seasonal labourers like cane cutters and other harvesting staff who would not be employed because of the low crop yield.
“General farm labour and drivers have not been as affected by the drought as growers try to keep their permanent staff complement as stable as possible. However in a drought like this, that can be quite difficult and costly,” he said. On Monday, Illovo Sugar reported a 58% decrease in headline earnings.
In its interim report released on Monday, the company said its sugar production had declined by 10%.
The reality of no rain first hit home in September last year when crop yield declined because of late and poor spring and summer rain.
While all the KwaZulu-Natal dryland producing region has been affected, cane production has dropped significantly, too, on the North Coast, in Zululand and the Midlands.
“The worst hit mill supply areas in terms of 2015/16 cane production compared to a normal season of 2013/14 being Darnall, Amatikulu, Gledhow, Maidstone, Noodsberg and Union,” Nicholson said.
This, in turn, would have a significant impact on food prices because other agricultural provinces like the Free State, North West and Limpopo were also severely affected.
“South Africa is normally a net exporter of sugar. However, this year sugar production is currently at the required levels to sustain the local market. This is incredibly important for all sugar cane growers as the export market is oversupplied,” Nicholson said.
However chief executive of the KZN Agricultural Union, Sandy la Marque, said the effects of the drought would be felt long after the rains came.
“Sugar cane is one of the largest crops produced in South Africa and the province. Like other products it will have to be imported, increasing the cost considerably.”
She said the government’s intervention was a welcome relief but would need to be extended into this time next year.
“Land will have to be rehabilitated, meaning it will not be ready for the next season,” La Marque said.
Daily News
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