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Sugar Act, 1978 (Act No. 9 of 1978)

Notices

Notice of Designation of the Sugar Industry in terms of Section 10(3)(b)(iv) of the Competition Act, 1998 (Act No. 89 of 1998)

Explanatory Memo: Matters relating to the Sugar Industry: Development of a Sugar Masterplan, Designation of the Industry in terms of the Competition Act and amendments to the South African Sugar Association's Constitution and the Sugar Industry Agreement

Part 3 : Amendemnts to the Sugar Industry Agreement and the South African Sugar Association's Constitution

 

The dtic is the custodian of the Sugar Act (Act No 9 of 1978).

 

The dtic in consultation with the sugar industry, commenced with the process of reviewing and amending both the Sugar Industry Agreement and the South African Sugar Association’s Constitution.

 

Delegates of the South African Sugar Association (SASA), comprising representatives from the South African Sugar Millers Association (SASMA), South African Cane Growers Association (SACGA) and the South African Farmers Development Association (SAFDA), have approved these amendments and transitional provisions. The parties reached an agreement on issues of (a) membership; (b) representation; and (c) disbursement of grower levies, resulting in SASA Council ratification of the changes to the SASA Constitution and the Sugar Industry Agreement provisions.

 

These changes represent a significant transformation moment in the institutional arrangements in the sector, with the black, small-scale farmer organisation, SAFDA, now fully incorporated in the South African Sugar Association.

 

The key amendments to the constitution and agreement are as follows:

 

(a) Transitional Period - means the period of the new Agreement which shall be from 1 July 2020 until 31 March 2024 or any later date determined in terms of clause 15(5).
(b) The affairs of the Association shall be administered by a Council consisting of an independent Chairperson who meets the requirements set out in clause 15(9) (b) and 3 Vice-Chairpersons.
(c) Membership: The members of the Association shall be the South African Sugar Millers Association (SASMA), South African Cane Growers Association (SACGA) and South African Farmers Development Association (SAFDA).
(d) SACGA and SAFDA shall each comprise half of the Growers’ Section and shall collectively comprise the Growers Section.
(e) Representation: 18 delegates shall represent each Section, provided that SACGA and SAFDA shall each be entitled to appoint 9 delegates to the Growers’ Section.
(f) Grower representation in SASA will be shared equally by SAFDA and SACGA.
(g) Growers Statutory Costs means for the first year of the Transitional Period, the amount calculated by the sum of the costs of SACGA and SAFDA respectively approved by the Association’s Council for the 2019/2020 season, escalated on 1 April 2020 by a rate equal to the year-on-year change in the headline consumer price index.
(h) Voting - All questions arising at general and special meetings of SASA shall be determined by a majority representing at least two-thirds of the delegates present at the meeting, provided that such majority includes at least 1 vote from the Millers Section and the Growers Section. Furthermore, the votes from the Growers Section must include at least 1 vote by a delegate representing SACGA and at least 1 vote by a delegate representing SAFDA Full details of the changes are contained in the Annexures.