KwaZulu-Natal Business 2018-19 edition
The 2018/19 edition of KwaZulu-Natal Business is the 10th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the investment prospects of Durban (eThekwini) and on the specific attractions for investors of other regions throughout the province. We are pleased to include a survey of the province’s economy from Trade & Investment KwaZulu-Natal, the dedicated trade and inward investment promotion agency that promises to be “your knowledge partner in business”. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.kwazulunatalbusiness.co.za. Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.
The 2018/19 edition of KwaZulu-Natal Business is the 10th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province.
In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the investment prospects of Durban (eThekwini) and on the specific attractions for investors of other regions throughout the province.
We are pleased to include a survey of the province’s economy from Trade & Investment KwaZulu-Natal, the dedicated trade and inward investment promotion agency that promises to be “your knowledge partner in business”.
To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.kwazulunatalbusiness.co.za. Updated information on KwaZulu-Natal is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.
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Sugar<br />
Sugar production is on a downward trend.<br />
OVERVIEW<br />
Most of South Africa's 14 sugar mills are in <strong>KwaZulu</strong>-<strong>Natal</strong>, as<br />
are the headquarters of the biggest companies.<br />
Overall production volumes have been down in recent<br />
years because of the severe drought. Total saleable sugar in<br />
the South African market (for domestic use and export) was over twomillion<br />
tons in the 2013/14 and 2014/15 seasons. The figure for 2016/17<br />
was 1.6-million tons. A proposed national sugar tax is being opposed<br />
by industry representatives.<br />
About 40% of local production is exported. The South African Cane<br />
Growers' Association represents about 24 000 growers who produce<br />
about 20-million tons of cane.<br />
Neither of the Big Two companies relies exclusively on South African<br />
sugar earnings: Tongaat Hulett has a big property portfolio and Illovo<br />
draws most of its profit from operations elsewhere in Africa.<br />
Illovo Sugar Limited has a presence in six African countries and<br />
is the continent's biggest sugar producer. The group's head office is<br />
in Umhlanga Rocks. In 2016 ABF, which used to be Associated British<br />
Foods, purchased Illovo.<br />
Tongaat Hulett’s headquarters are about 50km north of Umhlanga.<br />
The company's sugar divisions turned an operating profit of R1.3-billion<br />
ONLINE RESOURCES<br />
South African Cane Growers’ Association:<br />
www.sacanegrowers.co.za<br />
South African Sugar Association: www.sasa.org.za<br />
South African Sugar Technologists Association:<br />
www.sasta.co.za<br />
Sugar Milling Research Institute: www.smri.org<br />
SECTOR INSIGHT<br />
• A sugar tax has been<br />
proposed.<br />
for 2016/17, a notable improvement<br />
on the previous year. This<br />
was partly because of better import<br />
protection in the countries<br />
where Tongaat Hulett operates<br />
and because of higher export<br />
prices generated into the EU and<br />
other African countries.<br />
Tongaat Hullet Sugar has<br />
agreed to a R52-million sugar<br />
cane growing project which will<br />
see co-operatives and contract<br />
farmers plant cane on 3 000ha at<br />
Felixton, Maidstone and Darnall.<br />
Illovo and Tongaat Hulett are the<br />
major operators of sugar mills.<br />
Other millers are Gledhow, ULC,<br />
Umfolozi and Tsb (which has a<br />
further two mills in Mpumalanga).<br />
Illovo has four mills, three<br />
sugar-cane estates, four sugar<br />
factories, a refinery and three<br />
downstream operations that<br />
make products such as furfural,<br />
furfuryl alcohol, ethyl alcohol and<br />
lactulose.<br />
The four mills run by Tongaat<br />
Hulett are located on the North<br />
Coast while the central refinery<br />
is in Durban and the animal feed<br />
plant, Voermol, is near Tongaat.<br />
The Sugar Terminal at Maydon<br />
Wharf, Durban, serves 11 mills<br />
and can store more than half a<br />
million tons of sugar. It also has a<br />
molasses mixing plant.<br />
47 KWAZULU-NATAL BUSINESS <strong>2018</strong>/<strong>19</strong>
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