Africa’s No.1 sugar producer

Africa’s biggest sugar producer, Illovo Sugar, has an extensive reach throughout six African countries including South Africa, Malawi, Zambia, Swaziland, Tanzania, and Mozambique. The company encompasses agriculture and manufacturing operations in these various African countries and manages agricultural estates in each country where it operates. In the past season the estates produced an extensive 6.1 million tonnes of cane. Eight million extra tonnes of cane came from independent growers that supply to Illovo’s sugar factories.  “Comprising 663,000 tonnes produced in South Africa, Malawi 295,000 tonnes, Zambia with 315,000 tonnes, Swaziland with 210,000 tonnes, Tanzania with 121,000 tonnes and Mozambique with 81,000 tonnes,” states Illovo Sugar’s website.

Illovo Sugar’s portfolio also includes downstream products which include furfural, mainly used for the purification of oils in lube oil refineries, furfuryl alcohol, used to produce a resin for the foundry industry, diacetyl and 2.3-pentanedione, used as flavouring agents, Agriguard, an agricultural nematicide, and BioMass sugar, a sugar cane fertilizer. The company is listed on the JSE and is a subsidiary of British Foods PLC.

Illovo Sugar has 30 per cent investment in Gledhow Sugar Company (Pty) and in the six countries that Illovo operates, three are in the “top 10 lowest cost cane sugar producers in the world and all six are within the top 30,” says the company website.

Supplying sugar

Illovo supplies sugar throughout the African continent. In Malawi, Illovo is the country’s only sugar producer and in Zambia Illovo produces 94 per cent of its local production. “The group’s share of industry production in South Africa is 30 per cent, Swaziland with 35 per cent, Tanzania with 46 per cent, and Mozambique with 32 per cent. Illovo has significant and increasing access to preferential markets in the European Union and the United States, while the operations outside South Africa also have access to the South African Customs Union market in terms of the Southern African Development Community Sugar Protocol on Trade,” states the company website. The company also supplies syrups and specialty sugars that are produced in South Africa and Zambia.

Illovo Sugar’s downstream products are mostly sold internationally to niche markets. Illovo Sugar’s website says, “Furfural and its derivatives are produced at the Sezela mill complex on the south coast of KwaZulu-Natal. High quality ethyl alcohol, from which various grades of alcohol are made, is produced at the Merebank plant in Durban and at the Glendale distillery on the north coast. Lactulose is also manufactured at Merebank.”

Social responsibility and sustainability

Sustainable development is an important aspect of Illovo Sugar. The company cares about the community in which it works and the employees who make its expanding business possible. Illovo works within the community throughout the six African countries in which it produces sugar. “Illovo co-ordinates a wide range of social investment-related programs focusing on basic needs such as the provision of water and sanitation, access to health care, education delivery and involvement in community outreach programs,” states the company website.

Illovo also provides training and support to indigenous growers which promotes economic development and sustainable agriculture in Africa. “Particular attention is given to preferential procurement with the aim of promoting and supporting the development of small-and medium-sized businesses which supply goods and services to both cane growers and neighbouring communities,” says Illovo Sugar’s website.

Illovo has a commitment to the environment and is continually researching ways to reduce its environmental impact. Illovo has teamed up with commissioned consultants that took on a group-wide study of sustainability issues. This was to “determine key performance areas and establish procedures to more accurately measure the group’s environmental footprint. In addition, a carbon workshop was held in order to initiate a more informed and better co-ordinated strategic approach to the management of carbon emissions from the operations,” states Illovo Sugar’s website.

From its various environmental initiatives and work within community involvement the company not only cares about its product, but about the communities in which its sugar is produced. With a quality sugar product and core team, it’s no wonder that Illovo Sugar has grown to become Africa’s largest sugar producer.

www.illovo.co.za

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