SAFDA Warns of Severe Impact from US Tariff Hike on Sugar Cane Industry

image: The Sugar Associated

by Kelebogile Matlou

The South African Farmers Development Agency (SAFDA) has warned that the US-imposed 30% tariff hike on South Africa’s imports will have a devastating effect on the agricultural sector, particularly the sugar cane industry in KwaZulu-Natal (KZN).

Speaking during the province’s Post Budget Speech Consultative Engagement, SAFDA Chairperson Dr. Siyabonga Madlala urged government to help secure alternative international markets.

“The agricultural sector in KZN has a master plan aimed at rescuing the industry, but now that the US has introduced these tariffs, it undermines the African Growth and Opportunity Act (AGOA) and the lucrative market we have enjoyed for years. About 24,000 tons are now at risk and will no longer be exported to America. I must say, we are surviving under adverse conditions as you know,” said Madlala.

image: Facts Net

KwaZulu-Natal MEC for Agriculture and Rural Development, Thembeni kaMadlopha-Mthethwa, acknowledged the challenges, noting that while the tariff matter is being addressed at a national level, the provincial government is engaging with all relevant stakeholders.

“There are two major issues affecting our communities: foot-and-mouth disease (FMD) and tariffs. We must explain to farmers that although we are affected in KZN, this is a national issue. The president and the finance minister are dealing with it, so our farmers don’t feel isolated,” she said.