Speaking notes for the launch of a R14 Million Sugar Cane Project, Ugu District Municipality, Othandweni Sports Ground
The Mayor of Ugu District, Cllr N H Gumede,
The Mayor of Umzumbe Municipality,
Cllr S T Gumede,
Inkosi B N Luthuli,
South African Sugar Association Vice Chairman, Mr Suresh Naidoo,
Project Beneficiaries,
Ladies and Gentlemen.
Historically sugar has been the backbone of the KwaZulu-Natal economy. It is the biggest industry in the province.
I am not sure how the drought has affected these figures but up until last year the industry was said to provide about 350 000 jobs and indirectly supported over one million people. The Provincial Government is well aware of the important role that the sugar industry plays as a driver of our local economy.
This year, the Premier requested a team to look into what support was needed by the sugar sector and how to transform the industry. As we meet here today, this work is ongoing. The Department of Agriculture and Rural Development for its part, has been committed to helping small-scale sugar cane growers to develop.
The aim is to provide a helping hand as well as opportunities for growers to move from smallscale to larger operations. The Department has been well aware that in order to do this, it could not work alone and had to forge partnerships.
In fact, the mission statement of the Department’s Strategy for Agrarian Transformation states very clearly that our aim is to promote through partnerships, sound agricultural practices that promotes economic growth, food security and the advancement of rural communities in KwaZulu-Natal.
To this end, the Department has worked hard over the past year forging partnerships with commodity organisations in the areas of extension support, mentorship, general skills training and project implementation. Such a partnership exists with the sugar industry where we have an arrangement relating to the provision of extension services, fertilizer distribution and seed cane development for small-scale growers on communal land.
In 1996, this arrangement was acknowledged as the best internationally by the World Bank who evaluated the partnership after the first five years of existence. I am happy to report that the Department’s productive relationship with the South African Sugar Association or SASA, continues.
The launch today of fourteen million rand’s worth of sugar cane projects on the KZN South Coast bears testimony that the partnership is working for the benefit of the small-scale growers. For the beneficiaries here today, please note that government does listen to you. I remember visiting the Sezela area in September 2014, shortly after becoming MEC for KZN Agriculture and Rural Development.
The growers pleaded with me for support in terms of ratoon management and cane replanting, due to the impact of drought in the area. My background is in law so I had to ask what ratoon management was and learnt that it is the practice of growing a crop from the stubbles of previous crop.
I visited other sugar cane projects on communal land and learnt about the need for fencing to keep out cattle from the cane fields, fertilizer and herbicides. SASA developed business plans for the project and submitted these to the Department for funding. Implementation on these projects is already underway.
I am pleased to see that local contractors are being used and that the beneficiary cooperatives are implementing their own projects. This is in line with government’s objectives, that the money invested in communities must result in job creation and entrepreneurial development within the area. It is not about handouts or doing the farming for farmers but about empowering members of the cooperatives to take control and become farmers in their own right. Ultimately, it is about the advancement of rural communities and dealing with food security and poverty alleviation.
A positive aspect of these sugar cane projects is that there are food security gardens that are built into the overall plan to complement the cane development. Beside this project that is being launched here today, The KZN Government is involved in a number of other initiatives to grow the capacity of small-scale farmers and increase the footprint of the sugar sector in the province.
The KZN Department of Agriculture and Rural Development has been involved in an eighteen million rand fertilizer distribution and seed cane project. A total of 2 367 growers and 21 cooperative qualified for the fertiliser assistance scheme. The seed cane project will see 488 hectares of seed cane being planted for the benefit of small-scale growers.
The impact of the drought has negatively affected the pace of implementation of this project, however the project is expected to gain momentum by Spring this year. The Agribusiness Development Agency (ADA) an entity of KZN DARD, entered into a partnership with SASA for the training of emerging sugar cane farmers and their farm workers. The training included both management and production aspects of sugar cane farming. More than 3000 people have undergone training on this program and I have heard from SASA that the results of such training are having a substantial impact on the industry.
A big project on the cards is a R55 million boost to the sugar sector. KZN DARD has made available R55 million to SASA for eleven small-scale grower/ communal estate projects and two commercial land reform projects. Nine of the communal estate projects will focus on expanding their area under cane by 1155 hectares which will result in the creation of 229 seasonal and 41 jobs being created.
The other two projects will focus on the purchases of vehicles for haulage that will enable the small grower cooperatives to participate in the sugar industry production value chain. The two commercial land reform projects will use their funds to expand production by 185 hectares and also purchase much-needed equipment to enable them to be sustainable businesses.
Pessimists may well point out the many challenges facing the industry at present and question this investment in the sugar sector. Eighty percent of South Africa’s sugar industry is concentrated in KwaZulu-Natal.
We have the infrastructure and expertise in this province and we need to maintain this to keep our place as a top sugar producing centre. In the current era of climate change, all sugar producing countries face challenges regarding the weather. In KZN we have another dynamic and that is strained relationships within the sugar industry. There is the breakaway group from the SA Cane Growers known as the South African Farmers Development Association.
The provincial government is committed to understanding the dynamics of what is going on and investigating possible solutions on a way forward. Many prophets of doom may point to the sugar tax mentioned in this year’s budget speech as having an impact on the industry. It is best to say that we do not know what the impact will be. Please be aware, however, that South Africa is not the first country to introduce a sugar tax. Mexico has such a tax and most states in America have signed a sugar tax into law.
What we do know is that there is enormous potential to grow and transform the sugar industry in the province and this opportunity cannot be squandered. We also know that the crop has not been fully utilised and there are opportunities for biomass electricity and biofuels. The future lies with each one of the beneficiaries of the projects here today. My advice to you is to make the best of what is on offer, work hard and make your projects succeed. You live in a democracy and a free South Africa, you have the opportunity and the support to become a major commercial farmer.
I thank you.
