South Africa’s sugar industry is approaching a defining moment as a court hearing later this month will determine the next chapter for Tongaat Hulett, the country’s largest producer of refined white sugar.

For thousands of farmers across KwaZulu-Natal and Mpumalanga, the outcome is about far more than the future of a single company.

It could shape the livelihoods of farming communities, the stability of local supply chains and the availability of locally produced sugar.

Tongaat Hulett has been under pressure for years following an accounting scandal that emerged in 2018 and erased more than R12 billion in shareholder value.

The company entered business rescue in 2022, but efforts to secure a lasting turnaround have yet to produce a breakthrough.

The liquidation hearing, scheduled for June 17 and 18, comes after an earlier postponement in April, when a R200 million funding package allowed operations to continue. As the hearing draws closer, calls for certainty are growing across the industry.

SA Canegrowers, which represents thousands of sugar producers, has urged government agencies and industry stakeholders to work together to avoid a collapse that many believe would have consequences far beyond the sugar sector.

Growers fear impact on jobs and rural communities

SA Canegrowers Chairman Higgins Mdluli said approximately 18,000 of South Africa’s 28,000 registered sugarcane growers depend on Tongaat Hulett’s milling operations.

Of those, about 17,500 are small-scale growers whose businesses rely heavily on access to the company’s mills.

Mdluli said a shutdown could force farmers to transport cane over longer distances for processing, increasing costs and placing additional strain on already tight margins.

Industry estimates suggest more than 15,000 jobs could be affected, with over 40,000 people across the value chain exposed to the fallout.

Sugar imports rise as local pressures mount

The uncertainty surrounding Tongaat Hulett has coincided with a sharp rise in sugar imports. South Africa imported 213,322 tonnes of sugar between April 2025 and March 2026, more than double the volume recorded a year earlier.

Much of that sugar comes from major producing countries such as Brazil, India and Thailand, where government support helps producers compete at lower prices.

Growers argue that increasing imports are placing additional pressure on local producers already dealing with rising costs and market uncertainty.

Industry still hopeful of a rescue

Despite the challenges, efforts to keep Tongaat Hulett operating continue. SA Canegrowers, the Department of Trade, Industry and Competition and the Industrial Development Corporation are expected to oppose liquidation during the upcoming hearing.

Industry stakeholders are also looking to GrowerCo, a newly established structure that aims to secure funding and give both small and large-scale farmers an ownership stake in the company.

Supporters say the initiative could provide a pathway to preserving operations and protecting jobs in one of South Africa’s most important agricultural industries.