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South Africa's 2008/09 Sugarcane, Sugar Production Falls

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Source: Reuters
12/06/2009
Durban, South Africa, June 11 - South African sugarcane production in 2008/09 fell by 400,000 tonnes to 19.3 million compared with the previous season owing to a sharp rise in input costs, the nation's sugar association said on Thursday.
Sugar production in the year also fell by 13,000 tonnes to 2.26 million tonnes, the South African Sugar Association (SASA) said.
The fall in output was mainly attributed to high input costs during the growing season, with farmers struggling to buy expensive fertiliser and herbicides.
"The almost unprecedented (price) increases in a number of major production inputs over the past two years was deeply felt in the 2008/09 production season," SASA chairman Martin Mohale said.
He added that the high cost of these inputs significantly affected farming practices, resulting in reduced cane yields.
Exports of raw sugar fell to 821,657 tonnes compared with 873,842 tonnes in the previous season.
SASA said the industry had also been hit by the loss of more than 10,000 small-scale sugarcane growers who had stopped farming due to high input costs and tighter credit markets.
"It's something that is of great concern to us at the moment ... 10,000 growers is not a small number and we are trying to look at how those people can be brought back into the sector," Mohale said.
South Africa's sugar sector has been striving to develop small-scale farmers into commercial sugarcane farmers for several years. It has set a target of handing 30 percent of commercial sugarcane land to black farmers by 2014.
"Currently, 17 percent of commercial sugarcane land has been transferred to black farmers. However the slow pace at which land claims are being dealt with ... and lack of post-settlement support structures are areas of concern," Mohale said.

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