Rising Costs Threaten Cane Industry

Misryoum reports that higher fuel, electricity, and fertiliser costs are squeezing Eswatini’s sugarcane growers and could pressure production profitability.
Rising costs are starting to weigh heavily on Eswatini’s sugarcane growers, and the pressure is expected to intensify this financial year.
Misryoum understands that the Eswatini Sugarcane Growers Association (ESGA) is warning that higher fuel and electricity prices could quickly translate into higher costs across the farming cycle.. ESGA Chief Executive Officer Dr Sipho Nkambule said key agricultural operations depend on both inputs, with electricity especially important for irrigation.
He explained that irrigation is central to sugarcane production because essentially all cane is irrigated. As a result, any increase in electricity tariffs can raise the cost of pumping and operating irrigation systems, and irrigation cannot easily be scaled back without affecting yields.
In this context, even small changes in energy tariffs can ripple through day-to-day farm decisions, since irrigation and related systems sit at the heart of production planning.
Beyond electricity, Dr Nkambule pointed to diesel as another critical input used at several stages.. He noted its role in land preparation, including ploughing, and in applying pesticides and herbicides.. Diesel is also involved in moving harvested cane to milling facilities, meaning price increases can spread across the entire production chain.
Misryoum also notes that fertiliser is being flagged as the third input likely to face pressure.. Higher fertiliser prices, Dr Nkambule warned, may push farmers to reduce or ration application, particularly when finances are tight or supply becomes unreliable.. That approach can affect productivity and crop quality over time.
Meanwhile, disruptions in fertiliser supply chains could force growers to operate under less-than-ideal conditions, adding another layer of risk to an already cost-sensitive industry.
The warning arrives as the sector adjusts to broader market challenges, including weaker global sugar pricing.. Dr Nkambule highlighted that the industry experienced a revenue decline even though production stayed largely stable, reinforcing how sensitive returns can be to changes in input costs and market conditions.
At the same time, growers have been adjusting within the Southern African Customs Union (SACU) market, including offering discounts to remain competitive.. Dr Nkambule also pointed to the limited scale of domestic consumption, which leaves the industry more exposed to pricing and demand shifts in the wider region and export markets.
This matters because cane production is energy-intensive and relies on multiple imported inputs, so sustained increases in fuel and electricity can strain farm profitability while also shaping long-term productivity and stability.
Looking ahead, Dr Nkambule said production is expected to remain broadly flat with some possibility of improvement, but he cautioned that the outlook will depend on input price stability and reliable supply chains.. He added that expectations around fuel supply hinge on whether recent diesel price increases prove temporary or continue for the year.