SAFDA URGES CALM AS TONGAAT HULETT FACES PROVISIONAL LIQUIDATION

Johannesburg – 12 February 2026

The South African Farmers Development Association (SAFDA) has appealed for calm and unity across the sugar industry following Tongaat Hulett Limited’s application for provisional liquidation, a development that threatens livelihoods across the sector.

In a media statement issued on Wednesday, SAFDA said it was deeply concerned by the developments at Tongaat Hulett, which come after the collapse of the Sale Agreement with Vision Sugar and the failure to conclude funding arrangements with the Industrial Development Corporation (IDC).

The association noted that hopes of long-term stability were raised in 2022 when Tongaat Hulett entered business rescue instead of liquidation. However, the current move towards provisional liquidation has once again placed the company, the sugar industry and farmers under significant uncertainty.

SAFDA highlighted that out of South Africa’s 25,653 small-scale sugarcane farmers, approximately 60% fall within Tongaat Hulett’s catchment areas. These farmers supply cane to the Maidstone, Amatikulu and Felixton sugar mills. During the season ending 31 March 2026, small-scale growers delivered more than one million tonnes of sugarcane, generating revenues estimated at R845.7 million and supporting thousands of rural households, farm workers and local enterprises.

The association further noted that the impact extends beyond small-scale growers. Commercial farmers account for about 80% of the total sugarcane produced nationally, while Tongaat Hulett itself contributes approximately 27% of South Africa’s total sugar production, making it a critical player in the national sugar value chain.

SAFDA also drew attention to additional pressures confronting the industry, including rising sugar imports. Imports stood at 163,000 tonnes by December 2025 for the 2025/2026 season, representing a 155% increase compared to the same period in the previous season. These challenges are compounded by rising input costs, the Health Promotion Levy, and high United States tariffs that threaten access to premium export markets.

At this critical stage, SAFDA confirmed it is engaging with government, industry and sector leaders to explore interventions aimed at stabilising the situation. SAFDA Executive Chairman, Dr Siyabonga Madlala, has appealed for restraint and unity, assuring growers that urgent discussions are underway with relevant ministers and key stakeholders to prevent adverse outcomes should the provisional liquidation process proceed further.

Dr Madlala warned that the potential closure of Tongaat Hulett would have devastating consequences not only for growers and farm workers, but also for rural communities and the broader economy, with ripple effects felt across the entire sugar value chain.

SAFDA reiterated its commitment to protecting the interests of small-scale sugarcane growers and said it will continue to engage constructively with government, industry partners and financial institutions to seek sustainable solutions.

The association has urged growers to remain calm, united and focused as engagements continue, noting that further updates will be provided as clarity emerges.

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