Fact Sheet
Who is SSA?
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waziland Sugar Association (SSA) is the regulatory body of the sugar industry in Swaziland, established through the Sugar Act of 1967. In addition to the regulation function, its main task is to market and sell sugar and its by-products for the benefit of the industry. All millers and growers are members of SSA, through their respective associations. The highest policy-making body of SSA is the Council, formed of equal membership between millers and growers and chaired by an independent person.
SSA’s Main Function • To provide technical services for promoting high efficiency and productivity in sugarcane growing. • To monitor the determination of sucrose content in cane crushed for each grower. • To sell all sugar and its by-products produced in the Swazi sugar industry to the best advantage of the sugar industry. These functions are interrelated, meaning that SSA plays a critical role in each step of the sugar industry value chain. SSA encourages smallholder growers to uphold good business practices in the growing of sugarcane as adherence to these impacts the quality of cane and subsequently the sugar. This allows them to improve their returns from the sugarcane growing.
How does SSA ensure the industry is regulated?
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everal structures and mechanisms are in place for the regulation of the industry such as the Quota Board, which issues quotas for growing cane and also deals with licensing of mills. This is an independent body of 10 members made up of 3 growers (one from each Planters group) and 3 millers (one from each mill) representatives who are appointed by the Sugar Association together with 2 independent members with no financial interests in the sugar industry. The third independent member is appointed by the Minister in consultation with the SSA and that person must have no financial interest in the industry. The Chairman is a person with no financial interest in the sugar industry, not in the employ of the Swaziland Government and is nominated by the SSA and approved by the Minister.
The main task of the Board is to allocate sugar cane growing Quotas to potential growers. In terms of the Sugar Act, no person shall be involved in sugar cane growing unless he has been issued a quota by the Board. There is also: • The Marketing Executive Committee tasked with the setting of the pricing of sugar. • Cane Testing committee is responsible for the monitoring of the payment of Growers for Sucrose at SSA which is monitored by the Cane Testing Committee. • The Extension Committee approves the varieties of cane that can be planted in Swaziland • Pests and diseases regulations
How can Swaziland ensure that the country generates enough sugar to sustain itself?
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waziland is one of the excess producers of sugar in Africa. This means that the country is producing more sugar than can be consumed by its population and thus the excess is exported to other countries.
How does SSA ensure the industry is regulated?
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he sugar industry is a very important sector within the economy of Swaziland, and has multiplier effects in the economy through support services that are linked to the industry. SSA is therefore making inroads towards sustainability to ensure continued existence of the industry. SSA is also one of the biggest foreign exchange earners for Swaziland and thus seeks to maintain preferential markets through continuous engagements with the Government. The Swaziland Sugar Industry has been a champion of Swazi Economic Empowerment in several areas this has created opportunities for the revenues generated to empower and improve the local economy. • Since the early 1990’s the industry has promoted the participation of smallholder farmers on Swazi Nation Land through the allocation of sugarcane growing quotas. Since then more than 170 000 tons of sucrose quotas has been issued to smallholders. The introduction of smallholder growers has also meant increase in the provision of extension services to ensure adequate support. • Substantial capital has been invested in training and developing local human resources and gearing them to be highly productive and competitive. The success of this policy has been witnessed in two areas; firstly, the replacement of expatriate staff with locals with expatriate staff in all areas including management reducing significantly to about 2%. Secondly the provision of quality social services (education, health and recreation) which benefit both the employees and their families as well as the surrounding communities. • The industry disposes of all its sugar destined for the SACU market through locally based companies. These companies further contribute to other empowerment programmes through local value addition and employment.
How does SSA ensure the industry is regulated?
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mallholder sugarcane growers (SSGs) are an integral part of the industry and as such the industry gives special attention to them. SSGs need specific attention for three main reasons. First, smallholder growing play, in complement to the general important role played by the sugar industry, an essential function in the national development goals of self-employment (or reduction of unemployment), poverty reduction, rural development and general social uplift of participating members and societies. These issues are at the centre of national challenges announced in many national policy statements.
Second, due to its (sugar industry) established technical and marketing support framework – requiring limited skills for mostly subsistence farmers – this sector has been used as a springboard to transform subsistence-based communities into commercial farming without the requirement of sophisticated knowledge in sugarcane production. Third, SSGs generally do not have as much access to a wide array of sophisticated knowledge, expertise and institutional support that would help them adjust easier and faster to the challenges. Besides, the cost structure for most SSGs is such that it is not easily manipulated to result in a substantial reduction in costs mainly due to limited economies of scale and limited exposure to bargaining instruments. It is for these reasons that the Industry has invested in programmes that will ensure the sustainability and viability of SSGs. Some of these programmes include: • Provision of extension services through a Service Level Agreement between SSA and the Mills. Such extension services extend beyond providing agronomic expertise and oversight to Business Management, Governance and Financial management, and general interface support on the ground. • Through the National Adaptation Strategy financed by the European Union, assistance was provided to the SSGs including grants to enable viable entry into the Sugar Cane growing business; assistance with rehabilitation of irrigation systems, assistance with upgrading infield roads drainage and capacity building. • The industry has developed a Best Management Practise Manual and self-assessment tool to promote good agricultural practices and empower SSGs to monitor their own operations. • The industry also undertakes advocacy initiatives on behalf of the growers to voice out grower concerns in areas that impact on their sustainability and growth. Advocacy and lobbying has been undertaken with the likes of SERA for electricity costs; SRA on taxation issues. • Training of growers on the business of farming, governance issues, disputes resolutions.
How can the general public contribute towards ensuring that the industry remains economically viable? • By aligning research studies to address issues of the industry, protecting crops from arson and theft, and providing feedback on SSA products and services. • By including sugarcane agriculture as a subject/course in institutions of learning.
What are you doing to ensure customer service is at its best and ultimately secures your ever-growing client base nationwide and internationally?
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SA is affiliated to international organizations such as ISO; periodic audits and ongoing management reviews of practices, processes and procedures. SSA also conducts customer satisfaction surveys, has flexible operating times for mills and SSA offices, invests in training of staff, dedicated personnel dealing with customers and continuous engagements with customers. There is increasing international pressure on the sugar industry to demonstrate environmental stewardship, social responsibility and economic performance. Consumers are also becoming more conscious on where products come from and how they are produced and need to be assured that the sugar they consume has been produced under sustainable conditions including assurance that labor laws and environmental protective measures have been implemented. Adopting best practices for a sustainability within the industry is therefore deemed critical for the industry to maintain its competitive edge as well as securing a sustainable customer base. • The industry is currently working on sustainability programme whose focus is on ensuring that the industry is positioned to demonstrate verifiable sustainable practices throughout its value chain. The process provides a trusted platform for industry stakeholders to convene and develop short, medium, and long-term goals for issues within the industry in a manner that addresses economic, social, and environmental risks. The outcome is to set an industry performance benchmark based on global benchmarks for sustainability, establish a shared value strategy, and create a plan to achieve shared value. • The industry has also recently developed a Corporate Sustainability Policy which aims at demonstrating commitment towards sustainability. • Affiliated to international organizations e.g., ISO; periodic audits and ongoing management reviews of practices, processes and procedures.
Major industry highlights • SSA acquiring 25% ownership of the sugar terminal called STAM situated in Maputo, Mozambique. • ISO 9001:2008 Certification: SSA was the first organization in Swaziland to receive certification under the ISO quality Management system in September 2001. • Entrants of Smallholder Sugarcane Growers in 1994 • Fairtrade Certified growers • Reaching 4billion ton turnover • Opening of the Sugarcane museum at Tambankulu Estate in Lowveld Swaziland.
What are some of the challenges and highlights of providing sugar and sugar products for the kingdom? The consistent production of sugar that meets specifications and is accepted by bottlers and international customers.
What is the company implementing or putting in place in order to align itself with His Majesty the King’s Vision 2022? To be a world class producer of sugarcane and by-products.