Post by Brasil Sugar International

GrowerCo emerges as long-planned bid to keep Tongaat Hulett operating ahead of court decision By ChiniMandi - 6/11/2026 As the future of Tongaat Hulett hangs in the balance ahead of a crucial court hearing this month, sugarcane growers have highlighted that GrowerCo, the grower-led proposal aimed at saving the company, is not a last-minute response to the crisis but the result of more than a decade of planning and preparation. The idea of a grower-owned milling company was first developed by sugarcane grower leaders in 2012. Although changing industry and market conditions delayed its implementation, the concept remained under consideration for years. Following Tongaat Hulett’s entry into business rescue in 2022, growers believed the model could provide a practical solution to acquire and operate the company as a going concern if other rescue efforts proved unsuccessful, Business Report reported. The current GrowerCo structure, along with the entities formally registered through the Companies and Intellectual Property Commission (CIPC), was established in 2023. Since then, a grower consortium has worked on building the necessary legal, regulatory and commercial framework, developing an equity model funded through growers’ cane supply, and engaging with funders and industry stakeholders. The proposal now before the KwaZulu-Natal High Court is backed by the organised grower community supplying Tongaat Hulett’s three mills and refinery on the province’s north coast. It has the support of SA Canegrowers and the South African Farmers’ Development Association (SAFDA), which together represent the interests of around 17,500 of South Africa’s 28,000 sugarcane growers who deliver cane to Tongaat Hulett. GrowerCo leaders say the initiative is being driven by individuals with extensive experience in the sugar industry. Its leadership includes growers who chair mill grower councils, serve on industry boards and manage commercial farming enterprises. They argue that the proposal is being advanced by people who have long been involved in sustaining the sugarcane value chain rather than by external investors unfamiliar with the sector. The group also points out that growers continued supplying cane throughout the business rescue process, allowing Tongaat Hulett’s mills to remain operational since 2022. According to GrowerCo, its proposal formalises that existing relationship through an ownership structure that places growers at its centre while also providing a role for mill employees within the business. The proposed model is focused on maintaining milling operations, protecting jobs and supporting economic activity across rural KwaZulu-Natal, which accounts for about 77 per cent of the sugar industry’s revenue. Tongaat Hulett’s operations are estimated to support between 35,000 and 40,000 direct jobs across farms, mills and refinery facilities. Continued... Brasil Sugar International [email protected] / WhatsApp: USA 1 248 939 2646

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