Illovo disappointed by lower sugar protection price
The South African Sugar Association wanted the protection level set at $905 per ton
South Africa's leading sugar company, Illovo Sugar, has expressed dissatisfaction with the recent increase in the Dollar-Based Reference Price for sugar, which only rose by about half the amount the industry had requested in 2024. The Dollar-Based Reference Price is a protective mechanism that can be triggered when global sugar prices drop to the set reference level.
The South African Sugar Association had hoped for a higher protection level of $905 per ton, but the government only approved $785 per ton. This lower figure leaves the local sugar industry vulnerable to losses caused by cheaper imports, which could jeopardize jobs in the sector. Moreover, the South African Farmers Development Agency warns that a recent 30% tariff increase imposed by the US on sugar imports will further harm the sugar cane growing industry, particularly in KwaZulu-Natal.
Written by urgent.news from SABC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
