Illovo disappointed by lower sugar protection price

One of the biggest South African sugar companies Illovo Sugar South Africa has expressed disappointment that the increase in the Dollar-Based Reference Price gazetted on Friday is only about half the increase the industry asked for in 2024.

The Dollar-Based Reference Price is an instrument that can be activated to protect the local industry when global sugar prices fall to the reference price.

VIDEO | Concerns over sugar imports flooding SA industry https://t.co/7UuAqBV6rX — SABC News (@SABCNews) July 28, 2026 The South African Sugar Association wanted the protection mechanism to be set at $905, while only $785 per ton was approved.

Illovo Sugar says in a statement this exposes the local industry to a worsening cycle of losses due to cheap imports, threatening jobs.

The South African Farmers Development Agency says the US-imposed 30% tariff increase on the country’s imports will cripple many farmers especially in the sugar cane growing industry in KwaZulu-Natal. https://t.co/cF3beN6VvD — SABC News (@SABCNews) August 8, 2025 RELATED VIDEO | Imports surge as sugar strike continues