SOUTH AFRICAN SUGAR INDUSTRY
SUBMISSION
PUBLIC HEARINGS ON ROLE OF PRIVATE SECTOR IN AGRICULTURAL DEVELOPMENT: 9-10 JUNE 2003
INTRODUCTION
Milling Companies |
Grower Structures |
Support Organisations |
Tongaat-Hulett Sugar Limited |
SACGA Board of Directors |
South African Sugar Association |
Illovo Sugar Limited |
SACGA Executive Committee |
Mill Group Boards |
Transvaal Suiker Beperk |
Mill Area Local Councils |
Sugar Milling Research Institute |
Union Co-operative Limited |
Local Planters Associations, Mill Cane Committees and Mill Group Associations |
South African Sugar Technologists’ Association |
South African Sugar Industry Agronomists’ Association |
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Sugar Manufacturing and Refining Employers’ Association |
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National Bargaining Council for the Sugar Manufacturing and Refining Industry |
The South African sugar industry has a diverse array of stakeholders, and has been involved in a range of holistic development and empowerment initiatives. Grower structures have equal representation both in decision-making and elected leadership from the grass-roots member organisation level to the Board of Directors. The grower structure is represented through 271 local structures across the sugar industry.
The South African sugar industry recognizes that social responsibility is not only limited to the actions of the organisation, but extends to the relevant stakeholders as well as the community at large. The South African sugar industry is at the forefront of promoting sustainable development in the commodity sector. As a sugar industry it is in constant dialogue with developing and contributing to a sustainable future through a responsible corporate citizenship approach.
The Sugar Industry Development Vision is:
"The South African sugar industry intends remaining a valuable contributor to the economy in which it operates, and a relevant and valued component of society, as well as contributing to a vibrant, healthy and skilled civil society where all have an equitable opportunity to participate."
Within this context the sugar industry seeks to be an industry that:
acts ethically with integrity, purpose and responsibility to all stakeholders;
plays a facilitating role in forging co-operation for development within sugar producing countries in SADC;
promotes the advancement and development of skills to ensure the international competitiveness of the South African sugar industry, and shares this research and development with SADC sugar industries on a user-pays basis;
promotes the development of small-scale growers, and emergent growers on freehold land;
creates opportunities for revenue earning in subsistence farming areas;
uses its position as a rurally based industry to promote socio-economic development in these under-resourced areas.
The sugar industry’s main development focus areas are:
Land Reform
Emerging Growers
Education and Training
HIV/Aids
This document is divided into the following sections as per the request:
How much has been used or budgeted for agricultural development from 1994 to date?
What activities have been organized or embarked upon on agricultural development?
What future inputs/programmes will your institution be involved in future?
Your relationship with the Department of Agriculture and Land Affairs?
FINANCIAL CONTRIBUTION
How much has been used or budgeted for agricultural development from 1994 to date?
Presenting an exact figure for all agricultural development undertaken in the sugar industry sector for the period 1994-2002 is currently not available, however gathering this information is underway as a function of the newly formed sugar industry Development Desk. This data will be made available on completion of this internal assessment.
For information Annex 1 provides a broader definition of development inputs by the sugar industry collectively where in the year 2000 a total development contribution of R72 million was estimated by all industry stakeholders as per table 1. (Prepared and verified by independent consultants.)
OUTLINE OF ACTIVITES
What activities have been organized or embarked upon on agricultural development?
A review and impact perspective of sugar industry small-scale growers initiatives is presented. In considering a holistic view of the sugar industry’s relationship with small-scale growers the main impact of its interventions were identified as follows:
Wealth creation in agricultural and rural areas;
Increased sustainable employment;
Improved farming efficiency;
Support programmes for black farmers;
Improved stability of rural communities.
The scope of initiatives is summarized in Annex 2: (For further detail please contact the Development Desk – Mrs Aline John, Tel: 031-5087000, Fax: 031-5087191 e-mail
RDP Sub-Programme |
2000 |
Meeting Basic Needs |
19,911,000 |
Land Reform |
4,180,000 |
Housing & Services |
1,500,000 |
Water & Sanitation |
350,000 |
Energy & Electrification |
601,000 |
Transport |
5,135,000 |
Environment |
125,000 |
Nutrition |
2,500,000 |
Health Care |
7,300,000 |
Social Security & Welfare |
2,400,000 |
|
|
Developing our Human Resources |
11,788,000 |
Formal Education |
2,150,000 |
Non-Formal Education |
1,429,000 |
Vocational & Technical Skills Training |
7,439,000 |
Early Childhood Development |
180,000 |
Sports & Recreation |
250,000 |
Arts & Culture |
100,000 |
Vocational & Career Guidance |
240,000 |
|
|
Building the Economy |
38,750,000 |
Technology & Productivity |
15,000,000 |
Management Structures |
1,200,000 |
Inequalities |
2,360,000 |
SMME’s |
13,010,000 |
Rural Development * |
6,310,000 |
Labour & Workers Rights |
87,000 |
|
|
Democratising the State and Society |
1,509,000 |
Empowerment & Representation |
69,000 |
Participation of Women |
219,000 |
Access to Information |
60,000 |
|
|
Total |
R71,958,000 |
Note to Table 1:
The 2000 figures were externally gathered and assessed by consultants.
Services Targeting SSG |
Programme of Work |
Budget |
|
SASEX |
Extension |
Partnerships and Relationship-building |
R15,500,000 |
Training |
Sugarcane Husbandry |
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ITC |
SSG Activities |
A new focus area in the 2003/4 training programme and not in the period under review. |
|
External Affairs |
Environment |
Environmental issues addressed via the SSG extension service |
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Grower Development Account |
Contractor’s Support Programme (CSP) |
Project budgets to UAF, SGDT and special projects |
|
Sugar Industry Trust Fund for Education |
Direct budget and gearing through partnerships. |
R5,310,000 |
|
KwaZulu Water Development Fund |
750 Water Schemes |
R78 000 |
|
Community Based Programmes |
Siyakha & IDT Programme – 112 projects and 64 000 labour days of employment. R21 million (1992-1997) |
R0 |
|
Communications |
New SSG Sugar Journal reaches those SSGs for 2993/04. |
R0 |
|
Project Preparation Fund |
Accessible if a viable project with potential third party funding is identified. R1,3 m revolving fund available. |
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Social Investment Budget |
Broadly allocated to projects in sugar areas but limited in its current ‘link’ to SSG community. |
R1,200,000 |
|
South African CANEGROWERS- SGDT |
Value of Small-Scale Sugar Farming |
R574, 000 |
|
South African Sugar Millers |
120 new Freehold farmers on 12 000 hectares. |
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UAF |
Umthombo Agricultural Finance Loans- approximately R250 million loans granted to small-scale growers R9million per annum. |
R4,300,00 |
|
Estimated Total |
R49,900,000 |