Durban — South African Cane Growers Association chairperson Andrew Russell confirmed reports that the small-scale cane growers supplying Tongaat Hulett sugar mills in Felixton, Amatikulu and Maidstone had received their overdue payments for cane delivered in September.
Russell said he welcomed the development, given the particular financial vulnerability of the small-scale grower operations. He was grateful that the business rescue practitioners understood the urgency of prioritising grower payments to prevent the permanent collapse of their business.
Russell was concerned that some growers had not yet been paid, leaving the majority of the 14 642 jobs at risk. Approximately 300 commercial growers supplied more than half of the cane delivered to Tongaat Hulett in September and they employed the vast majority of the area’s cane farmworkers.
“It therefore remains critical that the business rescue practitioners prioritise the payment of these growers, which will enable payments to other value chain participants including contractors, haulier companies and input supplies.”
Russell was concerned about Tongaat Hulett’s ability to make timeous payments of more than R345 million at the end of November for the more than 570 000 tons of cane delivered in October.
“If this is not addressed now, the industry may find itself in this same crisis in a few weeks’ time. It is also critical that clarity is provided on plans for the remainder of the season, and to try to secure the future of Tongaat Hulett for the sake of the thousands of livelihoods dependent on cane growing in the north of KwaZulu-Natal,” Russell said.
North Coast region cane grower Mndeni Shozi said the small-scale growers faced many hardships and financial challenges but were able to survive. Shozi said the recent payment had made a slight difference in their lives and those of the people they employed.
Shozi said he had bought food hampers for those employees working in the fields so that they could at least put something on their tables.
“The money was not enough to pay them their salaries owed. Even though I would not be sure whether I am buying them exactly what they needed, at least the little I bought them would be enough to make a difference in their lives,” he said.
Shozi remained hopeful that talks between Tongaat Hulett and the government to assist the company with funding during the present financial crisis would bear fruit so that a sugar industry catastrophe could be averted.
Shozi was still concerned about future payment delays and called for transparency and feedback from meetings.
Daily News