SA Farmers Fight to Save Tongaat Hulett From Shutdown

• The South African Farmers’ Development Association (SAFDA) has vowed to prevent Tongaat Hulett, one of the country’s oldest sugar producers, from shutting down after its business rescue plan failed
• The company’s potential closure threatens 25,000 jobs and the livelihoods of thousands of small-scale sugarcane farmers in KwaZulu-Natal
• SAFDA is calling for urgent government and industry intervention to save the mills and protect rural communities

Durban – South Africa’s Farmers’ Development Association (SAFDA) says it will do everything it can to prevent Tongaat Hulett, one of the country’s oldest sugar producers, from closing. The company is facing provisional liquidation after its business rescue plan failed.

Reports from Central News SA state that the sugar sector is under pressure from cheap imports and other challenges, putting thousands of jobs and small-scale farmers’ livelihoods at risk. Tongaat Hulett, which has been around for 134 years, filed for provisional liquidation last week, raising fears of serious economic effects in KwaZulu-Natal and beyond

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SAFDA leaders are calling for calm while urging urgent action to save the company. They warn that a full closure would hit rural communities hard, affecting families, jobs, and local economies.

Why is Tongaat Hulett in trouble?

Tongaat Hulett has been in business rescue since late 2022 due to high debts and operational problems. A key sale deal fell through, leaving no clear way forward and prompting the court application for provisional liquidation.

The company runs three sugar mills in KwaZulu-Natal and buys cane from thousands of small farmers. Rising costs, cheap imports, and a sugar tax have cut profits over the years. Past scandals and leadership changes have also weakened the company.

SAFDA steps in

SAFDA represents small and emerging farmers. Its COO, Thandokwakhe Sibiya, says liquidation could force 1,500 small-scale farmers to lose their main market for sugarcane. The group is pushing for solutions, including government help or new partnerships, to keep the mills running.

The association highlights that many of these farmers come from communities that already face economic challenges. Closing Tongaat Hulett would hit them hardest, forcing them to sell land or move to cities for work.

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Jobs and local economies at risk

If Tongaat Hulett shuts down, around 25,000 workers could lose their jobs. Towns that depend on the sugar industry, like Maidstone, would feel the impact, with less money circulating in local shops, schools, and services.

Small-scale farmers could see their harvests rot in the fields, and suppliers, transporters, and exporters could also be affected. The sugar industry supports over 85,000 direct jobs and nearly a million livelihoods when counting families and related businesses.

Hope for a turnaround

SAFDA remains hopeful that Tongaat Hulett can be saved through rescue deals, partnerships, or even worker-owned models. They stress that keeping the company running isn’t just about business—it’s about protecting communities and ensuring food security.

Briefly articles on Tongaat

• A powerful tornado ripped through Tongaat, killing at least five people and leaving many families without homes as the community reels from the destruction. Local authorities and relief teams have opened shelters and are working to clear roads and deliver aid to the hardest‑hit areas. Residents are mourning their losses while support efforts continue to help those affected begin to recover.
• Tragically, a bus plunged off a bridge in Maidstone, Tongaat, early on May 27, killing three people and injuring several others. Emergency teams from Reaction Unit South Africa responded and treated the injured at the scene. Motorists are being urged to drive carefully as recovery efforts continue.

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Previously, Briefly News reported that SA businessman Robert Gumede’s Vision Consortium has successfully acquired control of sugar producer Tongaat Hulett, marking a major step in rescuing the long‑struggling company. Creditors approved the deal, with Vision taking on Tongaat’s debt and aiming to stabilise the business and protect jobs in the sugar industry. The acquisition was seen as a key moment for the future of one of South Africa’s oldest and most important agricultural firms.

Source: Briefly News