south african sugar association (sasa) · contribution to the sa economy total average industry...
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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