BL Premium reports that according to the SA Farmers Development Association (Safda), the business rescue practitioners tasked with resuscitating debt-laden Tongaat Hulett have vowed to make the outstanding R400m payment to thousands of cane growers for September cane deliveries.

Meantime, the SA Canegrowers Association has requested urgent engagements with the President and the ministries of trade and agriculture to map out possible government financial intervention in the situation threatening the livelihoods of thousands of sugarcane growers and workers delivering cane to a number of Tongaat mills in KwaZulu-Natal. The two associations met on Wednesday with the Tongaat business rescue team. After the meeting, Safda’s Siyabonga Madlala said the interaction with the practitioners was fruitful as “they’ve given an undertaking that they have confirmation the banks will fund the payment to growers”. More than 4,300 growers and 14,642 farm workers have been affected by Tongaat’s business rescue which began on 27 October. According to SA Canegrowers, an estimated R345m will become due at the end of November for October deliveries. In a statement the association said although the engagement with Tongaat’s business rescue practitioners had been positive, it also highlighted the magnitude of the task at hand, and the need for government intervention to ensure that Tongaat’s growers could survive while the business rescue process continued. A shutdown of the 130-year-old company would see nearly 15,000 permanent and seasonal farm workers out of jobs.

• Read the full original of the report in the above regard by Michelle Gumede at BusinessLive (subscriber access only)

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