SOUTH AFRICAN SUGAR ASSOCIATION (SASA)

SASA Delegation

Chairman : Mr Suresh NaidooVice- Chairman : Mr Hans HackmannExecutive Director : Mr Trix TrikamExternal Affairs Director : Ms Portia Mpofu

SASA structure and representation

SA CANE GROWERS’ ASSOCIATION NPC

21 500 cane growers (20 000 are small-scale

growers)

SA SUGAR MILLERS’ ASSOCIATION NPC

14 Local Grower Councils

6 Sugar Milling Companies

Appoints 18 delegates to SASA General Meeting

SASA GENERAL MEETING

36 delegates appoint:

• SASA Chairman• Vice Chairman• 22 Councilors members

(11 from each Section)

SASACOUNCIL

(decision making by majority vote)

Appoints 18 delegates to SASA General Meeting

Statutory Functions

Administer and facilitate compliance to industry legislation

Manage the Pest and Disease function and undertake research and develop technology for improved industry biosecurity.

Cane Testing Service

Use statutory formula to determine the minimum cane price to be paid to all growers

Sugar ActSugar Industry

AgreementSASA Constitution

Chapter 3 Sugar Industry

Agreement

Chapter 5 Sugar Industry Agreement

Chapter 6 and 7 Sugar Industry

Agreement

Statutory Functions

Management of industry financing arrangements

Undertaking marketing and logistics related to the export sale of South Africa’s bulk raw sugar

Management of support services that facilitate the provision of development finance to small scale growers

Establish the Sugar Industry Administration Board and the Sugar Industry Appeals Tribunal

Chapter 7 Sugar

Industry

Agreement

Chapter 7 Sugar

Industry

Agreement

Chapter 7 Sugar

Industry

Agreement

Chapter 2 Sugar

Industry

Agreement

SASA’s Engagements

SASA had been approached by SAFDA for recognition within its structures.

SASA had been approached by SAFDA to refund levies paid by their members to Canegrowers Association(SACGA)

The delegates at the SASA Annual General

Meeting appoint councillors.

SASA collects levies on behalf of SACGA in terms of the Sugar

Industry Agreement

• SASA has tried to mediate a solution between SAFDA and SACGA – unable to reach a conclusion.

• Written to our members to provide SASA with principles on how to incorporate in the legislation the dti’s proposals .

Contribution to the SA economy

Total Average Industry Revenue R16 billion per annum

Gross Domestic Product 0.7% of SA GDP

Export Earnings R3.5 billion per annum

Average Annual Cane Production 20 million tons

Average Value of Sugarcane Production +/- R10.5 billion per annum

Area under Cane 365 000 hectares

Contribution to SA’s Total Agricultural Output 6%

Dependent Rural Livelihoods Approximately 1 million people

Direct Job Opportunities 85 000 (11% of agri employment)

Indirect Employment 350 000

SASA’s Strategic Objectives

SASA ensures its Strategic Objectives

are aligned to Government Objectives

National Development Plan

2030

Provincial Growth and Development

Strategy

Support to

Small Scale and Land Reform Growers

GROWER DEVELOPMENT

FUND

SUPPLEMENTARY PAYMENT FUND

LAND REFORM SUPPORT

UMTHOMBO AGRICULTURAL FINANCE

SASA spends approximately R 70 million pa on support to small-scale and land reform growers

Challenges impactingthe sustainability of the Sugar Industry

Two most significant challenges

Sugar Tariff –ineffective

protection of the domestic sugar

market

Introduction of Sugar Tax on Sugar

Sweetened Beverages

Sugar Imports

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2014 2015 2016 2017

We export South African jobs by importing sugar

Sugar imports last 12 months: + 500 000 tons

Impact on industry revenue: R2.4 billion

Based on current local and export market prices:

Differential between local market and export market earnings = R4 550 per ton

Av. cane price (protected): R634 /ton cane

Impact of imports: R95 /ton cane

Current av. cane price: R539 /ton cane

Import Tariff Mechanism: Dollar Based Reference Price = $566/ton

192 025 tons 114 535 tons108 255 tons YTD 483 015 tons

Tax on Sugar-Sweetened Beverages

Thank you