Sugar Cane to Branch out to Bio-Ethanol, Electricity

by Linda Ensor (Business Day Live) ... The diversification plans included using sugar cane to produce bio-ethanol and to generate renewable electricity.

This would also improve the long term viability of the industry, chairman of the South African Sugar Association Rolf Lütge said in a briefing to Parliament’s trade and industry portfolio committee. He stressed though that before the industry could move ahead it needed government to lay down the regulatory environment for ethanol.

Mr Lütge noted there had been a 51% (about 47,000ha) decline in the area under cane farmed by small growers who currently number about 21,000. Other factors contributing to the decline were the number of farms abandoned, the climate, ineffective elements of land reform and rising input costs such as transport and fuel. Lack of access to affordable finance and infrastructural constraints were other factors.