SIMUNYE – Eswatini’s sugar industry has raised alarm over rapidly escalating production costs.
The industry has warned that rising fuel, fertiliser and energy prices, coupled with global geopolitical tensions and climate-related pressures, are threatening the competitiveness and long-term sustainability of one of the country’s most strategic economic sectors.
The concerns dominated discussions during the Standard Bank Regional Sugar Summit held at the Simunye Country Club yesterday, where growers, millers, policymakers, financiers and regional industry stakeholders gathered to discuss the future of the sugar industry amid shifting global trade dynamics and mounting operational pressures.
Presenting on behalf of the Eswatini Sugarcane Growers Association, Chief Executive Officer Dr Sipho Nkambule revealed that sugar production costs had increased by more than 17 per cent, largely driven by fuel and fertiliser price hikes.
Nkambule said the ongoing conflict involving Iran had become one of the major emerging threats to the industry because of its impact on global oil markets and supply chains.
“The geopolitical tensions and ongoing Iran war have become a major challenge for the sugar industry because fuel prices have increased significantly, and this affects almost every aspect of production,” said Nkambule.
He explained that rising diesel prices were affecting irrigation, transportation, harvesting and field operations, while fertiliser prices had also escalated sharply, placing further pressure on already strained growers.
According to figures presented during the summit, small-scale grower production costs are projected to rise from approximately E53 213 per hectare during the 2025/26 season to more than E62 408 per hectare in the 2026/27 season.
At the same time, projected gross margins for small-scale growers are expected to decline sharply from about E23 594 to around E12 213.
Nkambule said the deteriorating cost environment was becoming increasingly unsustainable, particularly for smallholder farmers already grappling with cash-flow constraints and delayed farming operations.
He noted that sugar cane yields had declined from nearly 100 tonnes cane per hectare to about 90 tonnes per hectare, further weakening profitability across the sector.
Beyond rising input costs, the industry is also facing increasing pest and disease severity, unreliable weather patterns and governance challenges within some farming schemes.
Nkambule said climate variability, including droughts, floods, storms and hail, continued to disrupt production cycles and increase operational risks for growers.
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