Sugarcane growers get bigger share of revenue

Business Reporter

The share of revenue for sugarcane farmers in the Lowveld has been increased from 77 percent to 80,5 percent following a review to resolve a prolonged dispute with Tongaat Huletts over the sharing of raw sugar proceeds.

Sugarcane farmers in the Lowveld and Tongaat, which operates Triangle Limited and Hippo Valley milling plants, have been at odds over revenue sharing, known as the Division of Proceeds (DoP).

DoP is a system for dividing the revenue from raw sugar between millers and farmers. The farmers have been demanding an increase in their share.

Farmers argued that the 77 percent share of revenue they were receiving was insufficient given the high costs of sugarcane production. They demanded an increase to 85 percent.

“The interim DoP is now at 80,5 percent for farmers and 19,5 percent for the millers,” said an official in the Ministry of Industry and Commerce.

“However, we hope for another review as farmers have been advocating for an increase to 85 percent.

“It may be necessary to consult an expert to examine this issue further. Although the farmers’ share of revenue has increased to 80,5 percent, it remains unsustainable due to the high costs of sugarcane production.”

Repeated attempts to reach Tongaat spokesperson Dr Dahlia Garwe for comment were unsuccessful.

However, in a previous statement, Dr Garwe confirmed that the DoP was currently under review.